CRA International, Inc. Q4 FY2025 earnings call

Paul Malley mentioned fiscal 2025 had record annual revenue of $751.6 million, 8th consecutive year of record. Fourth quarter had 11.6% revenue growth, best quarterly ever. Portfolio strength with weekly average project lead flow up 9.3% and new project originations up 7.7% in Q4. Practices like antitrust and competition economics worked on large M&A transactions, forensic services handled ransomware, etc., labor and employment assisted in litigation, risk investigations and analytics worked on large matters. Also, promoted colleagues, hired new leadership, and integrated AI for productivity.

For fiscal 2025, revenue increased 9.3% to $751.6 million. Legal and regulatory services grew 10.3% and management consulting services expanded 6.4%. Seven practices had top line growth, with three (antitrust and competition economics, energy, intellectual property) achieving double-digit growth. North American operations increased 7.3% and international 19.5%. Fourth quarter revenue was up 11.6%, with six practices growing, including antitrust and competition economics (+20%+), forensic services (+20%+), labor and employment, risk investigations and analytics. Legal and regulatory services up 14.3% in Q4.

For full year fiscal 2026, expect revenue $785 million to $805 million on constant currency basis, non-GAAP EBITDA margin 12.0% to 13.0%. Currency effects to decrease reported revenue by ~$5M and EBITDA by <$1M. Forgivable loan amortization expected to increase ~$15M+ in 2026 due to talent investments in 2025. Fiscal 2026 is 52-week year unlike 2025's 53-week year.

No specific detailed risk discussion in the provided transcript, but mentions forward-looking statements are uncertain due to factors like economic conditions, demand for services.

Q: Mark Riddick asked about revenue guide, consultant count, utilization, and pricing.

A: Paul responded on headcount, practice performances, and pricing expectations.

Q: Kevin Steinke asked about AI, forensic practice, forgivable loan amortization.

A: Paul talked about AI as revenue enabler, forensic practice lead flow, and forgivable loan amortization.

Q: Andrew Nicholas asked about M&A, AI impact on economics.

A: Paul discussed M&A acceleration, AI's role in moving to higher value work.