Q2 2025 CRA International Inc Earnings Call Transcript
Key Points
- CRA International Inc (CRAI) reported a 9% year-over-year increase in revenue for the second quarter of fiscal 2025, reaching $186.9 million.
- Seven out of eleven practices experienced year-over-year growth, with antitrust and competition economics, energy, intellectual property, and labor and employment practices posting double-digit revenue growth.
- The company improved profit margins and profit dollars over the past five years, with non-GAAP net income, EPS, and EBITDA surpassing the record-setting first half of fiscal 2024 by 6%, 8%, and 8% respectively.
- CRA International Inc (CRAI) welcomed over 50 new consultants and improved consultant utilization to 76% year-over-year.
- The company increased its revenue guidance for full-year fiscal 2025, expecting revenue in the range of $730 million to $745 million, up from the previous range of $715 million to $735 million.
- Consultant headcount decreased by 3.2% year-over-year, ending the quarter at 937 compared to 968 in Q2 fiscal 2024.
- The life sciences practice posted a slight decline in the second quarter, despite expanding year-over-year for the first half of fiscal 2025.
- The company faces uncertain global macroeconomic, business, and political conditions that could affect its business and client needs.
- CRA International Inc (CRAI) concluded the quarter with $19.4 million of cash and $120 million of borrowings under its revolving credit facility, resulting in a net debt of $100.6 million.
- The effective tax rate for the second quarter of fiscal 2025 on a non-GAAP basis was 29.0%, slightly lower than the 29.4% in the second quarter of fiscal 2024.
Good day, everyone, and welcome to Charles River Associates second quarter 2025 conference call. Please note that today's call is being recorded. The company's earnings release and prepared CFO remarks are posted on the investor relations section of CRA's website at CRAI.com.
With us today are CRA's president and chief executive officer, Paul Malley, and chief corporate development officer and interim chief financial officer, Chad Holmes. At this time, I'd like to turn the call over to Mr. Holmes for opening remarks. Chad, please go ahead.
Thank you, Rob, and good morning to everyone. Please note that the statements made during this conference call, including guidance on future revenue and non-gap EDA margin, and any other statements concerning the future business, operating results, or financial condition of CRA, including those statements using the terms expect, outlook, or similar terms are forward-looking statements as defined in Section 21
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