Charles River Associates (NASDAQ:CRAI) Issues Earnings Results, Beats Estimates By $0.01 EPS

Charles River Associates (NASDAQ:CRAI) released its quarterly earnings results on Thursday. The business services provider reported $2.06 EPS for the quarter, topping the consensus estimate of $2.05 by $0.01, FiscalAI reports. The business had revenue of $196.96 million during the quarter, compared to analyst estimates of $190.54 million. Charles River Associates had a net margin of 7.74% and a return on equity of 26.33%.

Here are the key takeaways from Charles River Associates’ conference call:

• Record financials: Fiscal 2025 revenue was $751.6 million (up 9.3%), with non-GAAP EBITDA of $96.8 million (12.9% margin) and the best-ever quarterly revenue in Q4 (up 11.6%), driven by broad-based practice strength.
• Growth guide for FY2026: CRA expects constant-currency revenue of $785M–$805M and non-GAAP EBITDA margin of 12.0%–13.0%, supported by stronger lead flow (weekly project leads +9.3%, new originations +7.7%) and continued momentum in key practices.
• Non-cash and tax headwinds: Forgivable loan amortization is expected to rise by approximately $15 million (+30%) in FY2026 due to talent investments, and the projected effective tax rate increases to ~31%–32%, which will weigh on GAAP/after-tax earnings despite underlying operating strength.
• Strong cash generation and shareholder returns: Adjusted net cash from operations was $108.4 million (112% conversion of EBITDA); CRA returned $61 million to shareholders in FY2025 and expanded its share repurchase authorization by $55 million (now $65.9 million available), with management indicating continued repurchase activity.
• AI adoption as an enabler: CRA hired a VP of AI and is deploying models (e.g., AdequacyX for energy) to boost productivity and support higher-value work, but management expects AI to augment expert judgment rather than replace it, so the financial impact remains an upside opportunity with execution risk.

Charles River Associates Trading Up 4.5%

NASDAQ:CRAI opened at $167.40 on Friday. The company has a 50-day moving average of $192.66 and a 200-day moving average of $191.14. The firm has a market cap of $1.10 billion, a price-to-earnings ratio of 20.12, a price-to-earnings-growth ratio of 1.14 and a beta of 0.91. Charles River Associates has a twelve month low of $149.96 and a twelve month high of $227.29.

Charles River Associates Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Tuesday, March 10th will be given a dividend of $0.57 per share. The ex-dividend date is Tuesday, March 10th. This represents a $2.28 annualized dividend and a dividend yield of 1.4%. Charles River Associates’s dividend payout ratio (DPR) is 27.40%.

Institutional Trading of Charles River Associates

A number of large investors have recently added to or reduced their stakes in the business. Jones Financial Companies Lllp bought a new position in shares of Charles River Associates in the first quarter valued at $27,000. Entropy Technologies LP bought a new stake in shares of Charles River Associates during the 4th quarter worth $401,000. Russell Investments Group Ltd. grew its holdings in shares of Charles River Associates by 8.2% in the 4th quarter. Russell Investments Group Ltd. now owns 4,180 shares of the business services provider’s stock worth $839,000 after acquiring an additional 318 shares during the last quarter. Arkadios Wealth Advisors raised its position in shares of Charles River Associates by 3.1% during the fourth quarter. Arkadios Wealth Advisors now owns 4,388 shares of the business services provider’s stock worth $881,000 after purchasing an additional 134 shares during the period. Finally, Kennedy Capital Management LLC raised its position in shares of Charles River Associates by 1.2% during the fourth quarter. Kennedy Capital Management LLC now owns 6,489 shares of the business services provider’s stock worth $1,302,000 after purchasing an additional 79 shares during the period. 84.13% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have commented on CRAI. Weiss Ratings restated a “buy (b)” rating on shares of Charles River Associates in a research note on Monday, December 29th. Barrington Research raised their target price on Charles River Associates from $239.00 to $245.00 and gave the company an “outperform” rating in a research report on Monday, January 5th. Finally, Wall Street Zen downgraded Charles River Associates from a “buy” rating to a “hold” rating in a research note on Saturday, December 6th. Two equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Charles River Associates has a consensus rating of “Buy” and a consensus target price of $245.00.

About Charles River Associates

Charles River Associates (NASDAQ: CRAI) is a global consulting firm specializing in economic, financial and management advisory services. Founded in 1965 and headquartered in Boston, Massachusetts, the company provides expert analysis to support litigation, regulatory proceedings, and strategic decision-making. Its multidisciplinary teams draw on academic rigor and industry experience to deliver quantitative and qualitative insights tailored to clients’ needs.

The firm’s service offerings include competition economics, antitrust and merger analysis, intellectual property valuation and damages assessment, and risk management.