Cra International (CR2) Q3 2026 Earnings Report

The call was strongly positive overall. CRA reported record quarterly and year-to-date revenue and profitability, broad-based practice growth, more than 20% growth in lead flow and project originations, increased guidance, strong liquidity and continued shareholder returns. The company also cited challenges including a 41% sequential decline in global M&A activity, a higher tax rate, increased amortization expense, higher DSO, foreign-exchange impacts and ongoing macroeconomic and political uncertainty, but these issues did not outweigh the reported operating momentum.

For full year fiscal 2026, on a constant currency basis relative to fiscal 2025, CRA expects revenue in the range of $830 million to $840 million and non-GAAP EBITDA margin in the range of 12.2% to 12.8%, compared with the prior revenue range of $805 million to $820 million and a prior non-GAAP EBITDA margin range of 12.0% to 13.0%; the constant currency adjustment is expected to decrease CRA's reported revenue by approximately $2.9 million and CRA's reported annual EBITDA by approximately $350,000, including approximately $200,000 of reported revenue impact in the fourth quarter while leaving reported EBITDA unchanged, and noncash forgivable loan amortization is expected to increase in fiscal 2026 by approximately $15 million, including an increase of approximately $1 million during the fourth quarter of fiscal 2026 relative to the fourth quarter of fiscal 2025. Headcount growth for fiscal 2026 will approach mid-single digits; management would not expect or guide investors to the high single digits and is comfortable with the mid-single-digit range.