CRA International (CRAI) Q3 2026: Record Revenue and a Guidance Raise

Charles River Associates posted third-quarter 2026 revenue of $214.9 million, beating the $199 million consensus by roughly 8% and rising 15.6% from the same quarter a year earlier. CEO Paul Maleh called it the highest third-quarter profits in the company's history as measured by net income, earnings per diluted share, and EBITDA.

The breadth of the quarter stood out as much as the headline numbers. Seven of CRA's practices grew year over year, together accounting for roughly 95% of total quarterly revenue. Forensic Services, Life Sciences, and Risk, Investigations and Analytics each posted double-digit growth, and Antitrust and Competition Economics reached a new quarterly revenue record.

Profitability improved sharply. Operating margin expanded to 11.1% from 9.3% a year earlier, helped by SG&A costs falling to 16.5% of revenue from 18.1%. Operating cash flow for the quarter came in at $74.4 million, more than double the $36.5 million generated in the prior-year period.

Encouraged by what it described as a healthy sales pipeline, management raised its full-year fiscal 2026 revenue guidance to a range of $830 million to $840 million, up from a prior range of $805 million to $820 million. The non-GAAP EBITDA margin target was narrowed to 12.2% to 12.8%. Management did flag that uncertain global macroeconomic, business, and political conditions remain a risk to watch.

CRA also announced a 17.5% increase in its quarterly cash dividend, lifting the payment to $0.67 per share, marking the tenth consecutive annual increase. Consultant headcount rose 6.2% year over year to 1,028, a sign the firm continues to invest in capacity even as it manages rising forgivable loan amortization costs.