CRA International, Inc. Q1 FY2026 earnings call

• CRA continued strong performance in Q1 2026 with revenue growth. Broad-based contributions from eight practices. Growth across geographies. Consultant headcount and utilization improved. - Highlighted markets for services: legal and regulatory services growth in line with broader market, strong M&A activity boosting antitrust practice, finance practice active in complex disputes, forensic services supporting various matters, energy and life sciences practices with double-digit growth. - Took optimization efforts with restructuring charge of $2.6 million, anticipating cost savings and redeploying savings for growth.

Revenue increased by 10.5% year over year to $201 million, the highest quarterly revenue in the company's history. Eight practices grew year over year, with four practices (energy, finance, forensic services, and life sciences) posting double-digit revenue growth, and the antitrust and competition economics practice setting a new quarterly revenue high. North American operations increased revenue by 8.5% and international operations expanded 20.3% year over year. Consultant headcount increased 2.5% compared to Q1 2025, utilization improved to 77%. Legal and regulatory services revenue increased 11.5%. M&A activity was strong with $1.2 trillion in the first quarter of 2026, and CRA's antitrust and competition economics practice had a record quarter. Energy and life sciences practices had double-digit revenue growth. Forensic services supported various matters. The company had a restructuring charge of $2.6 million with anticipated annual cost savings of approximately $5 million.

• Reaffirming full year financial guidance for fiscal 2026. Encouraged by strong start, supportive market trends, and robust sales pipeline. Reminding of potential impact from evolving geopolitical, macroeconomic, and business conditions.

Q: Asked about demand environment and what's spurring it, Paul responded about complexity driving need for expertise.

Q: Asked about life sciences growth and what's spurring it, Paul said they have multiple quarters of growth with robust lead flow.

Q: Asked about acquisition talent pipeline and forgivable loan amortization in guidance, Paul said guidance doesn't assume inorganic revenue additions but factors in cost burden.

Q: Asked about assignment changes and recruitment, Paul said they're looking for best talent and adding to units.

Q: Asked about utilization improvement and pacing, Paul said utilization was strong from the get-go in 2026.

Q: Asked about complexity on M&A side, Paul said data analysis and market complexity are increasing.

Q: Asked about rate realization and pricing, Paul said they test market for rate increases, with more benefit expected as year progresses.