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

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

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 1.3%

Charles River Associates stock traded up $2.13 during trading hours on Thursday, hitting $162.39. 59,207 shares of the stock traded hands, compared to its average volume of 132,150. Charles River Associates has a one year low of $149.96 and a one year high of $227.29. The firm’s 50-day moving average price is $193.49 and its two-hundred day moving average price is $191.31. The company has a market cap of $1.07 billion, a PE ratio of 19.55, a PEG ratio of 1.11 and a beta of 0.91.

Analyst Ratings Changes

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

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in CRAI. Russell Investments Group Ltd. increased its stake 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 purchasing an additional 318 shares in the last quarter. Kennedy Capital Management LLC grew its holdings in shares of Charles River Associates by 1.2% in the fourth quarter. Kennedy Capital Management LLC now owns 6,489 shares of the business services provider’s stock valued at $1,302,000 after purchasing an additional 79 shares in the last quarter. Entropy Technologies LP purchased a new position in shares of Charles River Associates in the 4th quarter worth $401,000. Arkadios Wealth Advisors increased its position in shares of Charles River Associates by 3.1% during the 4th quarter. Arkadios Wealth Advisors now owns 4,388 shares of the business services provider’s stock valued at $881,000 after purchasing an additional 134 shares during the last quarter. Finally, New York State Common Retirement Fund raised its position in Charles River Associates by 25.0% in the 4th quarter. New York State Common Retirement Fund now owns 7,495 shares of the business services provider’s stock worth $1,504,000 after purchasing an additional 1,500 shares during the period. 84.13% of the stock is owned by hedge funds and other institutional investors.

Charles River Associates Company Profile

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.