# CRA INTERNATIONAL, INC. (CRAI)

Informational only - not investment advice.

CIK: 0001053706
SIC: 8111 Services-Legal Services
SIC breadcrumb: [Services](/division/I/) > [SIC Major Group 81](/major-group/81/) > [SIC 8111 Services-Legal Services](/industry/8111/)
Latest 10-K filed: 2026-02-26
SEC page: https://www.sec.gov/edgar/browse/?CIK=1053706
Filing source: https://www.sec.gov/Archives/edgar/data/1053706/000105370626000006/crai-20260103.htm

## At a glance

FY2025 · period end 2026-01-03 · filed 2026-02-26 · accession 0001053706-26-000006 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001053706.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 751,583,000 USD | 2025 | verified |
| Net income | 54,782,000 USD | 2025 | verified |
| Assets | 628,873,000 USD | 2025 | verified |
| Free cash flow | 18,556,000 USD | 2025 | computed |
| Net margin | 7.29% | 2025 | computed |
| Operating margin | 11.06% | 2025 | computed |
| Revenue YoY | +9.33% | 2025 | computed |
| ROE | 25.65% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.


## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 751583000 | USD | 2025 | 2026-02-26 |
| Net income | 54782000 | USD | 2025 | 2026-02-26 |
| Assets | 628873000 | USD | 2025 | 2026-02-26 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001053706.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 324,779,000 | 370,075,000 | 417,648,000 | 451,370,000 | 508,373,000 | 565,933,000 | 590,901,000 | 623,976,000 | 687,414,000 | 751,583,000 |
| Net income | 12,888,000 | 7,624,000 | 22,492,000 | 20,747,000 | 24,507,000 | 41,679,000 | 43,619,000 | 38,481,000 | 46,653,000 | 54,782,000 |
| Operating income | 18,919,000 | 15,764,000 | 28,935,000 | 29,348,000 | 34,796,000 | 55,739,000 | 58,737,000 | 57,545,000 | 70,751,000 | 83,124,000 |
| Diluted EPS |  |  |  |  | 3.07 | 5.45 | 5.91 | 5.39 | 6.74 | 8.14 |
| Operating cash flow | 48,163,000 | 45,858,000 | 36,189,000 | 27,832,000 | 54,663,000 | 75,698,000 | 25,121,000 | 60,072,000 | 49,735,000 | 22,424,000 |
| Capital expenditures | 13,023,000 | 9,757,000 | 15,447,000 | 16,693,000 | 17,094,000 | 2,623,000 | 3,813,000 | 2,366,000 | 16,623,000 | 3,868,000 |
| Dividends paid |  | 4,941,000 | 5,784,000 | 6,785,000 | 7,503,000 | 8,289,000 | 9,580,000 | 10,807,000 | 12,300,000 | 13,831,000 |
| Share buybacks | 19,315,000 | 19,528,000 | 27,884,000 | 18,068,000 | 13,371,000 | 44,976,000 | 27,630,000 | 31,417,000 | 33,348,000 | 47,149,000 |
| Assets | 323,642,000 | 361,757,000 | 370,846,000 | 533,243,000 | 558,510,000 | 555,360,000 | 550,917,000 | 553,211,000 | 571,439,000 | 628,873,000 |
| Stockholders' equity | 207,220,000 | 206,908,000 | 196,472,000 | 197,751,000 | 209,019,000 | 205,834,000 | 211,154,000 | 212,101,000 | 212,073,000 | 213,598,000 |
| Cash and cash equivalents | 53,530,000 | 54,035,000 | 38,028,000 | 25,639,000 | 45,677,000 | 66,130,000 | 31,447,000 | 45,586,000 | 26,711,000 | 18,210,000 |
| Free cash flow | 35,140,000 | 36,101,000 | 20,742,000 | 11,139,000 | 37,569,000 | 73,075,000 | 21,308,000 | 57,706,000 | 33,112,000 | 18,556,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 3.97% | 2.06% | 5.39% | 4.60% | 4.82% | 7.36% | 7.38% | 6.17% | 6.79% | 7.29% |
| Operating margin | 5.83% | 4.26% | 6.93% | 6.50% | 6.84% | 9.85% | 9.94% | 9.22% | 10.29% | 11.06% |
| Return on equity | 6.22% | 3.68% | 11.45% | 10.49% | 11.72% | 20.25% | 20.66% | 18.14% | 22.00% | 25.65% |
| Return on assets | 3.98% | 2.11% | 6.07% | 3.89% | 4.39% | 7.50% | 7.92% | 6.96% | 8.16% | 8.71% |
| Liabilities / equity | 0.56 | 0.75 | 0.89 | 1.70 | 1.67 | 1.70 | 1.61 | 1.61 | 1.69 | 1.94 |
| Current ratio | 1.81 | 1.51 | 1.27 | 1.07 | 1.10 | 1.17 | 1.15 | 1.12 | 1.07 | 0.92 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/CRAI/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001053706.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2011-Q2 | 2011-07-02 |  |  | 0.40 | reported discrete quarter |
| 2022-Q4 | 2022-12-31 | 144,976,000 | 8,673,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2023-Q1 | 2023-04-01 | 152,845,000 | 8,918,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-07-01 | 161,965,000 | 9,508,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 147,553,000 | 8,596,000 |  | reported discrete quarter |
| 2023-Q4 | 2023-12-30 | 161,613,000 | 11,459,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-30 | 171,789,000 | 13,691,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-29 | 171,442,000 | 6,538,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-28 | 167,748,000 | 11,437,000 |  | reported discrete quarter |
| 2024-Q4 | 2024-12-28 | 176,435,000 | 14,987,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q3 | 2025-09-27 | 185,891,000 | 11,473,000 |  | reported discrete quarter |
| 2026-Q1 | 2026-04-04 | 200,975,000 | 11,132,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-07-04 | 210,815,000 | 13,508,000 |  | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from CRAI's latest 10-K: [/company/CRAI/business/](/company/CRAI/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from CRAI's latest 10-K: [/company/CRAI/risk-factors/](/company/CRAI/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1053706/000105370626000021/crai-20260704.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-07-04

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Except for historical facts, the statements in this quarterly report are forward-looking statements. Forward-looking statements are merely our current predictions of future events. These statements are inherently uncertain, and actual events could differ materially from our predictions. Important factors that could cause actual events to vary from our predictions include those discussed below under the heading “Risk Factors.” We assume no obligation to update our forward-looking statements to reflect new information or developments. We urge readers to review carefully the risk factors described in the other documents that we file with the SEC. The SEC maintains a website that contains these documents, reports, proxy statements, information statements, and other information regarding issuers, such as us, that file electronically with the SEC at https://www.sec.gov.

Additional Available Information

Our principal Internet address is www.crai.com. Our website provides a link to a third-party website through which our annual, quarterly, and current reports, and amendments to those reports, are available free of charge. We do not maintain or provide any information directly to the third-party website, and we do not check its accuracy.

Critical Accounting Policies and Estimates

Our critical accounting policies involving the more significant estimates and judgments used in the preparation of our financial statements as of July 4, 2026 remain unchanged from January 3, 2026. Please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended January 3, 2026, filed with the SEC on February 26, 2026 for details on these critical accounting policies.

Recent Accounting Standards

There are no recent accounting standards that impact the unaudited condensed consolidated financial statements.

Results of Operations—For the Fiscal Quarter and Fiscal Year-to-Date Period Ended July 4, 2026, Compared to the Fiscal Quarter and Fiscal Year-to-Date Period Ended June 28, 2025

The following table provides operating information as a percentage of revenues for the periods indicated:

[[GREPCENT_TABLE]]
[["","Fiscal Quarter Ended","","Fiscal Year-to-Date Period Ended"],["","July 4, 2026","","June 28, 2025","","July 4, 2026","","June 28, 2025"],["Revenues","100.0","%","","100.0","%","","100.0","%","","100.0","%"],["Costs of services (exclusive of depreciation and amortization)","70.6","","","68.8","","","71.3","","","67.5"],["Selling, general and administrative expenses","16.7","","","18.8","","","16.9","","","18.3"],["Depreciation and amortization","1.6","","","1.9","","","1.6","","","1.9"],["Income from operations","11.2","","","10.6","","","10.1","","","12.3"],["Interest expense, net","(1.4)","","","(1.0)","","","(1.0)","","","(0.6)"],["Foreign currency gains (losses), net","(0.2)","","","(0.4)","","","\u2014","","","(0.3)"],["Income before provision for income taxes","9.5","","","9.2","","","9.1","","","11.3"],["Provision for income taxes","3.1","","","2.7","","","3.1","","","3.2"],["Net income","6.4","%","","6.5","%","","6.0","%","","8.2","%"]]
[[/GREPCENT_TABLE]]

17

Table of Contents

Fiscal Quarter Ended July 4, 2026, Compared to the Fiscal Quarter Ended June 28, 2025

Revenues. Revenues increased by $23.9 million, or 12.8%, to $210.8 million for the second quarter of fiscal 2026 from $186.9 million for the second quarter of fiscal 2025. Utilization increased to 77% for the second quarter of fiscal 2026 from 76% for the second quarter of fiscal 2025, while consultant headcount increased to 968 at the end of the second quarter of fiscal 2026 from 937 at the end of the second quarter of fiscal 2025.

Overall, revenues outside of the U.S. represented approximately 22% and 19% of net revenues for the second quarter of fiscal 2026 and fiscal 2025, respectively. Revenues derived from fixed-price projects increased to 23% of net revenues for the second quarter of fiscal 2026 compared to 16% of net revenues for the second quarter of fiscal 2025. The percentage of revenue derived from fixed-price projects depends largely on the proportion of our revenues derived from our management consulting business, which typically has a higher concentration of fixed-price service contracts.

Costs of Services (exclusive of depreciation and amortization). Costs of services (exclusive of depreciation and amortization) increased by $20.2 million, or 15.7%, to $148.7 million for the second quarter of fiscal 2026 from $128.5 million for the second quarter of fiscal 2025. The increase in costs of services was due to an increase in employee and incentive compensation of $15.1 million, an increase in forgivable loan amortization, including performance award amortization of $4.7 million, and an increase in client reimbursable expenses of $0.5 million, partially offset by a decrease of $0.1 million in indirect project expenses. As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 70.6% for the second quarter of fiscal 2026 from 68.8% for the second quarter of fiscal 2025.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $0.2 million, or 0.6%, to $35.3 million for the second quarter of fiscal 2026 from $35.1 million for the second quarter of fiscal 2025. Within this category of expenses, there was a $2.2 million increase in employee and incentive compensation and a $1.1 million increase in software subscriptions and data services, partially offset by a $1.9 million decrease in commissions to non-employee experts, a $0.7 million decrease in miscellaneous and other fees, and a $0.5 million decrease in travel and entertainment for the second quarter of fiscal 2026 as compared to the second quarter of fiscal 2025.

As a percentage of revenues, selling, general and administrative expenses decreased to 16.7% for the second quarter of fiscal 2026 from 18.8% for the second quarter of fiscal 2025. Commissions to our non-employee experts decreased to 1.3% of revenues for the second quarter of fiscal 2026 compared to 2.4% of revenues for the second quarter of fiscal 2025.

Provision for Income Taxes. The income tax provision was $6.6 million and the ETR was 32.9% for the second quarter of fiscal 2026 compared to $5.0 million and 29.2% for the second quarter of fiscal 2025. The ETR for the fiscal quarter ended July 4, 2026 was higher than the fiscal quarter ended June 28, 2025 primarily due to an increase in nondeductible executive compensation partially offset by a remeasurement of deferred tax assets related to changes in current-year state apportionment. The ETR for the second quarters of fiscal 2026 and 2025 were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, partially offset by the tax benefit related to share-based compensation and the Foreign-Derived Deduction Eligible Income deduction. Specific to the current quarter, an additional offset relates to the remeasurement of deferred tax assets related to changes in current-year state apportionment.

Net Income. Net income increased to $13.5 million for the second quarter of fiscal 2026 from $12.1 million for the second quarter of fiscal 2025. The net income per diluted share was $2.10 per share for the second quarter of fiscal 2026, compared to $1.79 for the second quarter of fiscal 2025. Weighted average diluted shares outstanding decreased by approximately 346,000 shares to approximately 6,407,000 shares for the second quarter of fiscal 2026 from approximately 6,753,000 shares for the second quarter of fiscal 2025. The decrease in weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since June 28, 2025, offset in part by the vesting of shares of restricted stock and time-vesting restricted stock units since June 28, 2025.

Fiscal Year-to-Date Period Ended July 4, 2026, Compared to the Fiscal Year-to-Date Period Ended June 28, 2025

Revenues. Revenues increased by $43.1 million, or 11.7%, to $411.8 million for the fiscal year-to-date period ended July 4, 2026 from $368.7 million for the fiscal year-to-date period ended June 28, 2025. Utilization increased to 77% for the fiscal year-to-date period ended July 4, 2026 from 76% for the fiscal year-to-date period ended June 28, 2025, while consultant headcount increased from 937 at the end of the second quarter of fiscal 2025 to 968 at the end of the second quarter of fiscal 2026.

18

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Overall, revenues outside of the U.S. represented approximately 21% and 18% of net revenues for the fiscal year-to-date period ended July 4, 2026 and June 28, 2025, respectively. Revenues derived from fixed-price projects increased to 20% of net revenues for the fiscal year-to-date period ended July 4, 2026 compared to 16% of net revenues for the fiscal year-to-date period ended June 28, 2025. The percentage of revenue derived from fixed-price projects depends largely on the proportion of our revenues derived from our management consulting business, which typically has a higher concentration of fixed-price service contracts.

Costs of Services (exclusive of depreciation and amortization). Costs of services (exclusive of depreciation and amortization) increased by $44.9 million, or 18.0%, to $293.8 million for the fiscal year-to-date period ended July 4, 2026 from $248.9 million for the fiscal year-to-date period ended June 28, 2025. The increase in costs of services was due to an increase of $27.1 million in employee compensation and fringe benefit costs, an increase in forgivable loan amortization of $14.8 million, and an increase of $3.0 million in client reimbursable expenses. As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 71.3% for the fiscal year-to-date period ended July 4, 2026 from 67.5% for the fiscal year-to-date period ended June 28, 2025.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $2.2 million, or 3.3%, to $69.8 million for the fiscal year-to-date period ended July 4, 2026 from $67.6 million for the fiscal year-to-date period ended June 28, 2025. Within this category of expenses, there was a $3.1 million increase in employee compensation and fringe benefit costs, a $1.8 million increase in software subscriptions and data services, a $0.7 million increase in legal and professional service fees, a $0.3 million increase in rent expense, and a $0.3 million increase in travel and entertainment expense, partially offset by a $2.7 million decrease in commissions to non-employee experts, and a $1.3 million decrease in miscellaneous and other fees for the fiscal year-to-date period ended July 4, 2026 as compared to the fiscal year-to-date period ended June 28, 2025.

As a percentage of revenues, selling, general and administrative expenses decreased to 16.9% for the fiscal year-to-date period ended July 4, 2026 from 18.3% for the fiscal year-to-date period ended June 28, 2025. Commissions to our non-employee experts decreased to 1.4% of revenues for the fiscal year-to-date period ended July 4, 2026 compared to 2.3% of revenues for the fiscal year-to-date period ended June 28, 2025.

Provision for Income Taxes. The income tax provision was $12.9 million and the ETR was 34.3% for the fiscal year-to-date period ended July 4, 2026, compared to $11.6 million and 27.9% for the fiscal year-to-date period ended June 28, 2025. The ETR for the fiscal year-to-date period ended July 4, 2026 was higher than the fiscal year-to-date period ended June 28, 2025 primarily due to an increase in nondeductible e

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1053706/000105370626000006/crai-20260103.htm
Complete FY 2026 MD&A: /company/CRAI/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-26
Report date: 2026-01-03

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

This section of the Form 10-K does not address certain items regarding the year ended December 30, 2023. Discussion and analysis of year-to-year comparisons between fiscal 2024 and fiscal 2023 not included in this Form 10-K can be found in "Item 7. Management's Discussion and Analysis of Financial Conditions and Results of Operations" of our Annual Report on Form 10-K for the year ended December 28, 2024.

Overview

We are a leading worldwide economic, financial, and management consulting firm that applies advanced analytic techniques and in-depth industry knowledge to complex engagements for a broad range of clients.

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We derive revenues principally from professional services rendered by our employee consultants. In most instances, we charge clients on a time-and-materials basis and recognize revenues in the period when we provide our services. We charge consultants' time at hourly rates, which vary from consultant to consultant depending on a consultant's position, experience, expertise, and other factors. We derive a portion of our revenues from fixed-price engagements. Revenues from fixed-price engagements are recognized using a proportional performance method based on the ratio of costs incurred to the total estimated project costs. We generate substantially all of our professional services fees from the work of our own employee consultants and a portion from the work of our non-employee experts. Factors that affect our professional services revenues include the number and scope of client engagements, the number of consultants we employ, the consultants' billing rates, and the number of hours our consultants work. Revenues also include reimbursements for costs we incur in fulfilling our performance obligations, including travel and other out-of-pocket expenses, fees for outside consultants and other reimbursable expenses.

Our costs of services include the salaries, bonuses, share-based compensation expense, forgivable loan amortization, and benefits of our employee consultants. Our bonus program awards discretionary bonuses based on our revenues and profitability and individual performance. Costs of services also include out-of-pocket and other third-party vendor expenses, and the salaries of support staff whose time is billed directly to clients, such as librarians, editors, and programmers, as well as the amounts billed to us by our outside consultants for services rendered while completing a project. Costs of services does not include depreciation and amortization. Selling, general and administrative expenses include salaries, bonuses, share-based compensation expense, and benefits of our administrative and support staff, commissions to non-employee experts for generating new business, office rent, marketing, and other operating costs.

Utilization and Seasonality

We derive the majority of our revenues from the number of hours worked by our employee consultants. Our utilization of those employee consultants is one key indicator that we use to measure our operating performance. We calculate utilization by dividing the total hours worked by our employee consultants on engagements during the measurement period by the total number of hours that our employee consultants were available to work during that period. Utilization was 77%, 75%, and 70% for fiscal 2025, fiscal 2024, and fiscal 2023, respectively.

We experience certain seasonal effects that impact our revenue. Concurrent vacations or holidays taken by a large number of consultants can adversely impact our revenue. For example, we usually experience fewer billable hours in our fiscal third quarter, as that is the summer vacation season for most of our offices, and in our fiscal fourth quarter, as that is the quarter that typically includes the December holiday season. In addition, much of our junior staff hiring occurs in our fiscal third quarter during which our new colleagues receive training and become acclimated to the organization. As a result, utilization may be impacted for the latter half of the year.

International Operations

Revenues outside of the U.S. accounted for approximately 20% of our total revenues in fiscal 2025, 19% of our total revenues in fiscal 2024, and 21% of our total revenues in fiscal 2023. Revenue by country is detailed in Note 2 to our Notes to Consolidated Financial Statements.

Critical Accounting Policies and Estimates

The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make significant estimates and judgments that affect the reported amounts of assets and liabilities, as well as related disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates are monitored and analyzed by management for changes in facts and circumstances, and material changes in these estimates could occur in the future. Changes in estimates are recorded in the period in which they become known. We base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from our estimates if our assumptions based on past experience or our other assumptions do not turn out to be substantially accurate.

Our significant accounting policies are discussed in Note 1 in our Notes to Consolidated Financial Statements. A summary of the accounting policies that we believe are most critical to understanding and evaluating our financial results is set forth below. We believe the following accounting policies involve our more subjective and complex judgments that have the most significant potential impact to the presentation of our financial statements. This summary should be read in conjunction with our consolidated financial statements and the related notes included in Item 8 of this annual report on Form 10-K.

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Revenue Recognition.    Revenue is recognized when we satisfy a performance obligation by transferring services promised in a contract to a client in an amount that reflects the consideration that we expect to receive in exchange for those services. Performance obligations in our contracts represent distinct or separate service streams that we provide to our clients. If, at the outset of an arrangement, we determine that an enforceable contract does not exist, revenues are deferred until all criteria for an enforceable contract are met.

We derive substantially all of our revenues from the performance of professional services for our clients. The contracts that we enter into and operate under specify whether the engagement will be billed on a time-and-materials basis or a fixed-price basis.

•Time-and-materials arrangements require the client to pay us based on the number of hours worked at contractually agreed-upon hourly rates. We recognize revenues from these arrangements based on hours incurred and contracted rates based on a right-to-payment for services completed to date. When a time-and-materials arrangement has a "cap" or "limit" amount, we recognize revenue up to the cap or limit amount specified by the client, based on the efforts or hours incurred and expenses incurred. Thereafter, revenue is reserved pending an amendment of the cap or limit.

•Fixed-price arrangements require the client to pay a contractually agreed-upon fee in exchange for a pre-established set of professional services. We base our fees on our estimates of the costs and timing for completing a performance obligation. We generally recognize revenues under fixed-price arrangements using a proportional performance method, which is based on the ratio of costs incurred to the total estimated costs for completing a performance obligation. Our fixed-price arrangements generally have a single performance obligation. For arrangements that contain multiple performance obligations, the fixed price is allocated based on the estimated relative standalone selling prices of the promised services underlying each performance obligation.

Reimbursable expenses, including those relating to travel, out-of-pocket expenses, outside consultants and other third-party vendor expenses, are generally included in revenues, and an equivalent amount of reimbursable expenses is included in costs of services in the period in which the expense is incurred.

Variable consideration to be included in the transaction price is estimated using the expected value method based on facts and circumstances. Variable consideration is included in the transaction price if it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Variable consideration estimates are based on specific price concessions already granted and those expected to be extended to our clients based on historical realization rates. If actual results in the future vary from our estimates, we adjust these estimates in the period such variances become known.

We usually issue invoices to our customers on a monthly basis, and payment is usually due upon receipt of the invoice unless contract terms state otherwise. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. We do not assess whether a significant financing component exists if the period between when we perform our obligations under the contract and when the customer pays is one year or less.

Deferred Compensation.    We account for performance-based and service-based cash awards using an accrual method where changes in estimates or the forgiveness of the principal amount of loans are recorded as compensation expense over the remaining service period. To the extent the terms of an award attribute all or a portion of the expected future benefits to a period of service greater than one year, the cost of those benefits is accrued over the employee's or non-employee's requisite service period in a systematic and rational manner.

The requisite service period ranges from two to eight years starting with the employee's employment date or non-employee's affiliation date. For an employee or non-employee consultant currently affiliated with us, the requisite service period generally begins at the start of the award's measurement period and when compliance is met with certain contractual requirements. A recipient of such an award is expected to be employed by or affiliated with us for the entire measurement period. If the recipient's employment or affiliation with us terminates during the measurement period, the amount paid will be determined in accordance with the recipient's specific contract provisions.

The terms of award agreements may include the achievement of minimum required financial targets over the award's measurement period. These financial targets may include a measure of revenue generation, profitability, or both. The amount of the liability of the award agreements is estimated based on internally generated financial projections or sourced revenue. The process of projecting these financial targets over the measurement period is highly subjective and requires significant judgment and estimates. There can be no assurance that the estimates and assumptions used in preparing these projections will prove to be accurate.

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Accounting for Income Taxes.    We record income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized based on estimated future tax consequences attri

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/CRAI/mda/fy2026/
All MD&A years: /company/CRAI/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/CRAI/mda/fy2024/): filed 2025-02-20; accession 0001053706-25-000007 (https://www.sec.gov/Archives/edgar/data/1053706/000105370625000007/crai-20241228.htm)
- [FY 2023 MD&A](/company/CRAI/mda/fy2023/): filed 2024-02-29; accession 0001053706-24-000006 (https://www.sec.gov/Archives/edgar/data/1053706/000105370624000006/crai-20231230.htm)
- [FY 2022 MD&A](/company/CRAI/mda/fy2022/): filed 2023-03-02; accession 0001053706-23-000007 (https://www.sec.gov/Archives/edgar/data/1053706/000105370623000007/crai-20221231.htm)
- [FY 2022 MD&A](/company/CRAI/mda/a-0001053706-22-000006/): filed 2022-03-03; accession 0001053706-22-000006 (https://www.sec.gov/Archives/edgar/data/1053706/000105370622000006/crai-20220101.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 8111 Services-Legal Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/CRAI.md · JSON record: /company/CRAI.json · verified financials: /company/CRAI/financials.json / /company/CRAI/financials.csv · machine TOC for the whole site: /llms.txt