CRA International Posts Strong Q2 Growth, Net Income Jumps 17%
Ticker: CRAI · Form: 10-Q · Filed: Jul 31, 2025 · CIK: 1053706
Sentiment: bullish
Topics: Consulting Services, Financial Performance, Revenue Growth, Net Income Increase, Professional Services, Q2 Earnings, Shareholder Value
Related Tickers: CRAI, FTI, BRG
TL;DR
CRAI is crushing it with double-digit net income growth, making it a solid buy in the consulting space.
AI Summary
CRA International, Inc. reported a robust financial performance for the second quarter ended June 28, 2025, with revenue increasing to $160.5 million, up from $150.2 million in the prior-year quarter, representing a 6.8% growth. Net income for the quarter also saw a significant rise to $15.8 million, compared to $13.5 million in the same period last year, an increase of 17.0%. For the six months ended June 28, 2025, revenue reached $315.7 million, a 7.5% increase from $293.7 million in the corresponding period of 2024. Net income for the six-month period grew to $30.1 million, up 15.8% from $26.0 million. The company's strategic outlook remains positive, driven by strong demand for its consulting services, particularly in fixed-price contracts which contributed $48.2 million in Q2 2025, up from $45.0 million in Q2 2024. However, the company faces risks related to economic downturns impacting client demand and the competitive landscape in the consulting industry. The increase in retained earnings from $400.1 million at December 28, 2024, to $415.9 million at June 28, 2025, reflects strong profitability and shareholder value creation.
Why It Matters
CRA International's strong Q2 performance, with a 6.8% revenue increase and 17.0% net income jump, signals robust demand for its specialized consulting services, which is crucial for investors seeking stable growth in the professional services sector. This positive trend could lead to increased shareholder returns through potential dividend increases or share buybacks, benefiting investors. For employees, sustained growth often translates to job security and opportunities for career advancement within a competitive industry. Customers benefit from CRAI's continued investment in expertise and service quality, reinforcing its position against competitors like FTI Consulting and Berkeley Research Group. The broader market sees this as an indicator of healthy corporate spending on expert advice, reflecting confidence in the economic outlook.
Risk Assessment
Risk Level: low — The risk level is low due to consistent revenue growth of 6.8% in Q2 2025 and a 17.0% increase in net income, demonstrating strong financial health. The company's retained earnings have also steadily increased from $400.1 million at December 28, 2024, to $415.9 million at June 28, 2025, indicating robust profitability and financial stability.
Analyst Insight
Investors should consider increasing their position in CRAI, given the strong Q2 2025 financial results, including a 17.0% net income increase. The consistent growth in both revenue and net income suggests a resilient business model and effective management, making it an attractive long-term investment.
Financial Highlights
- revenue
- $160.5M
- net Income
- $15.8M
- revenue Growth
- +6.8%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Fixed-Price Contracts | $48.2M | +7.1% |
| Time and Materials Contracts | $112.3M | +6.5% |
Key Numbers
- $160.5M — Q2 2025 Revenue (Increased 6.8% from Q2 2024)
- $15.8M — Q2 2025 Net Income (Increased 17.0% from Q2 2024)
- $315.7M — Six-Month 2025 Revenue (Increased 7.5% from six-month 2024)
- $30.1M — Six-Month 2025 Net Income (Increased 15.8% from six-month 2024)
- 6.8% — Q2 Revenue Growth (Year-over-year increase)
- 17.0% — Q2 Net Income Growth (Year-over-year increase)
- $48.2M — Q2 2025 Fixed-Price Contract Revenue (Up from $45.0M in Q2 2024)
- $415.9M — Retained Earnings (As of June 28, 2025, up from $400.1M at December 28, 2024)
Key Players & Entities
- CRA INTERNATIONAL, INC. (company) — filer of the 10-Q
- $160.5 million (dollar_amount) — Q2 2025 revenue
- $150.2 million (dollar_amount) — Q2 2024 revenue
- $15.8 million (dollar_amount) — Q2 2025 net income
- $13.5 million (dollar_amount) — Q2 2024 net income
- $315.7 million (dollar_amount) — Six-month 2025 revenue
- $293.7 million (dollar_amount) — Six-month 2024 revenue
- $30.1 million (dollar_amount) — Six-month 2025 net income
- $26.0 million (dollar_amount) — Six-month 2024 net income
- $415.9 million (dollar_amount) — Retained earnings at June 28, 2025
FAQ
What were CRA International's revenues for the second quarter of 2025?
CRA International reported revenues of $160.5 million for the second quarter ended June 28, 2025, which is an increase from $150.2 million in the same period of 2024.
How did CRA International's net income change in Q2 2025 compared to Q2 2024?
Net income for CRA International increased to $15.8 million in Q2 2025, up from $13.5 million in Q2 2024, representing a 17.0% growth.
What was the total revenue for CRA International for the first six months of 2025?
For the six months ended June 28, 2025, CRA International's total revenue was $315.7 million, an increase from $293.7 million in the corresponding period of 2024.
What is the strategic outlook for CRA International based on this filing?
The strategic outlook for CRA International remains positive, driven by strong demand for its consulting services, particularly in fixed-price contracts, which contributed $48.2 million in Q2 2025.
What are the primary risks identified for CRA International in this 10-Q?
Primary risks for CRA International include potential impacts from economic downturns affecting client demand and the highly competitive landscape within the consulting industry.
How has CRA International's retained earnings changed?
CRA International's retained earnings increased from $400.1 million at December 28, 2024, to $415.9 million at June 28, 2025, reflecting strong profitability.
What type of contracts contributed significantly to CRA International's Q2 2025 revenue?
Fixed-price contracts contributed significantly to CRA International's Q2 2025 revenue, totaling $48.2 million, an increase from $45.0 million in Q2 2024.
What does the 17.0% net income growth mean for CRA International investors?
The 17.0% net income growth for CRA International indicates strong profitability and efficient operations, which could lead to increased shareholder value through potential dividends or share buybacks.
Is CRA International experiencing growth in both its quarterly and year-to-date financial results?
Yes, CRA International is experiencing growth in both its quarterly and year-to-date financial results, with Q2 2025 revenue up 6.8% and six-month revenue up 7.5%.
What is the significance of the increase in CRA International's retained earnings?
The increase in CRA International's retained earnings from $400.1 million to $415.9 million signifies robust financial health and the company's ability to reinvest profits or distribute them to shareholders.
Risk Factors
- Economic Downturn Impact [medium — market]: A general economic downturn could reduce client demand for consulting services, impacting CRA's revenue and profitability. The company's reliance on discretionary spending by clients makes it vulnerable to economic contractions.
- Competitive Landscape [medium — market]: The consulting industry is highly competitive, with numerous firms vying for clients. Intense competition could pressure pricing and market share, requiring continuous innovation and service differentiation.
- Talent Acquisition and Retention [medium — operational]: Attracting and retaining highly skilled consultants is crucial for service delivery. Challenges in this area could affect the quality of services and the company's ability to take on new projects.
Industry Context
CRA International operates in the professional services sector, specifically management and economic consulting. The industry is characterized by a high degree of specialization, with firms competing on expertise, reputation, and client relationships. Demand is often cyclical, influenced by economic conditions, regulatory changes, and litigation trends.
Regulatory Implications
As a publicly traded company, CRA International is subject to SEC regulations and reporting requirements, including the timely filing of 10-Q reports. Compliance with accounting standards and disclosure rules is critical to maintaining investor confidence and avoiding penalties.
What Investors Should Do
- Monitor fixed-price contract growth
- Assess impact of economic conditions
- Evaluate competitive positioning
Key Dates
- 2025-06-28: End of Second Quarter 2025 — Reporting period for the 10-Q, showing revenue of $160.5M and net income of $15.8M.
- 2025-07-31: Filing Date of 10-Q — The date the current financial report was submitted to the SEC.
- 2024-12-28: End of Fiscal Year 2024 — Reference point for retained earnings, which stood at $400.1M.
- 2024-06-29: End of Second Quarter 2024 — Prior year comparison period, with revenue of $150.2M and net income of $13.5M.
Glossary
- Fixed-Price Contract
- A contract where the price is set at the outset, and the seller bears the risk of cost overruns. (Contributed $48.2M to Q2 2025 revenue, showing a positive trend and indicating client confidence in project scope definition.)
- Time and Materials Contract
- A contract where the client pays for the time spent by consultants and the materials used. (Generated $112.3M in Q2 2025, highlighting the ongoing demand for flexible consulting arrangements.)
- Retained Earnings
- The cumulative amount of net income that a company has kept over time, rather than distributing it as dividends. (Increased to $415.9M as of June 28, 2025, reflecting strong profitability and reinvestment or accumulation of profits.)
Year-Over-Year Comparison
Compared to the prior year's second quarter, CRA International demonstrated solid growth, with revenue increasing by 6.8% to $160.5 million and net income rising by a more substantial 17.0% to $15.8 million. This indicates improved profitability and operational efficiency. The company also saw a healthy increase in fixed-price contract revenue, up to $48.2 million from $45.0 million, suggesting a positive shift in contract mix or client engagement. Retained earnings have also grown, reflecting continued profit generation.
Filing Details
This Form 10-Q (Form 10-Q) was filed with the SEC on July 31, 2025 regarding CRA INTERNATIONAL, INC. (CRAI).