Charles River Associates (NASDAQ:CRAI) Announces Quarterly Earnings Results

Charles River Associates (NASDAQ:CRAI) issued its quarterly earnings data on Thursday. The business services provider reported $2.06 earnings per share for the quarter, beating the consensus estimate of $2.05 by $0.01, FiscalAI reports. The firm had revenue of $196.96 million for the quarter, compared to analyst estimates of $190.54 million. Charles River Associates had a net margin of 7.29% and a return on equity of 26.30%.

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 Price Performance

CRAI opened at $172.66 on Friday. Charles River Associates has a fifty-two week low of $149.96 and a fifty-two week high of $227.29. The company has a market capitalization of $1.13 billion, a P/E ratio of 21.24, a P/E/G ratio of 1.19 and a beta of 0.91. The firm’s fifty day moving average price is $191.94 and its two-hundred day moving average price is $191.05.

Charles River Associates Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Tuesday, March 10th will be given a $0.57 dividend. This represents a $2.28 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Tuesday, March 10th. Charles River Associates’s dividend payout ratio (DPR) is 28.04%.

Analyst Upgrades and Downgrades

CRAI has been the subject of several recent analyst reports. Weiss Ratings reiterated a “buy (b)” rating on shares of Charles River Associates in a research note on Monday, December 29th. Barrington Research lifted their price target on Charles River Associates from $239.00 to $245.00 and gave the stock an “outperform” rating in a research report on Monday, January 5th. Finally, Wall Street Zen lowered Charles River Associates from a “buy” rating to a “hold” rating in a report on Saturday, December 6th. Two equities research analysts have rated the stock with a Buy rating, According to MarketBeat, the company has a consensus rating of “Buy” and an average target price of $245.00.

Charles River Associates News Summary

Here are the key news stories impacting Charles River Associates this week:

• Positive Sentiment: Q4 results beat consensus on both EPS and revenue (EPS $2.06 vs. $2.05 est.; revenue $196.96M vs. $190.54M est.), showing modest upside to expectations and continued margin strength. Business Wire: Q4 & Full-Year Results
• Positive Sentiment: Management provided FY2026 revenue guidance of $785.0M–$805.0M, above the Street revenue consensus (~$770M), which supports top-line growth expectations for the year. FY2026 Guidance / Press Materials
• Positive Sentiment: The board declared a quarterly dividend of $0.57 per share (ex-dividend March 10), which increases shareholder yield and can attract income-focused investors.
• Positive Sentiment: Company commentary and slide deck highlight record annual revenue and profitability, reinforcing the view of durable growth and strong returns on equity. Earnings Presentation (Seeking Alpha)
• Neutral Sentiment: Investors can review the full earnings call transcript and slides for detail on segment trends, demand drivers, and margin outlook. Earnings Call Transcript
• Neutral Sentiment: Reported short-interest data in the feed is not meaningful/clear (entries show zero/NaN), so it does not provide a reliable bearish pressure signal at this time.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CRAI. Jump Financial LLC increased its holdings in shares of Charles River Associates by 72.3% in the third quarter. Jump Financial LLC now owns 32,642 shares of the business services provider’s stock worth $6,807,000 after acquiring an additional 13,692 shares in the last quarter. BNP Paribas Financial Markets increased its stake in Charles River Associates by 61.2% during the 3rd quarter. BNP Paribas Financial Markets now owns 18,552 shares of the business services provider’s stock worth $3,869,000 after purchasing an additional 7,041 shares in the last quarter. New York State Common Retirement Fund lifted its stake in Charles River Associates by 25.0% in the fourth quarter. New York State Common Retirement Fund now owns 7,495 shares of the business services provider’s stock valued at $1,504,000 after buying an additional 1,500 shares in the last quarter. Lazard Asset Management LLC bought a new position in Charles River Associates in the second quarter valued at approximately $1,424,000. Finally, Kennedy Capital Management LLC boosted its holdings in shares of Charles River Associates by 63.9% in the third quarter. Kennedy Capital Management LLC now owns 6,410 shares of the business services provider’s stock valued at $1,337,000 after buying an additional 2,500 shares during the period. 84.13% of the stock is currently owned by institutional investors.

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.