Cra International,inc. · NASDAQ:CRAI
Cra International,inc — Q3 2025 Earnings Presentation
35 slides from Cra International,inc's earnings presentation, Oct 30, 2025
Slide 1: An Overview of Charles River Associates
An Overview of Charles River Associates Q1 FY2025 This presentation is subject to and should be read in conjunction with the disclaimers and other statements contained under the heading “Safe Harbor Disclaimer.” 1
Slide 2: Safe Harbor Disclaimer
Safe Harbor Disclaimer Statements included in this presentation which are not historical in nature, including those concerning the company’s future business, operating and financial condition, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-
Slide 3: A Leading Global Consulting Firm
A Leading Global Consulting Firm For 60 years, Charles River Associates (CRA) has been a premier consulting firm. In 1965, our founders envisioned a company that would bring the developing expertise of academia, especially in the then-burgeoning area of quantitative methods in economics, to the busi
Slide 4: Performance Driven by Highly Talented and Dedicated Colleagues
Performance Driven by Highly Talented and Dedicated Colleagues 74% of senior staff have advanced CRA accepts less than 2% Less than 10% voluntary turnover degrees, with 40% of the advanced of campus applicants among top revenue generating degrees being PhDs employees over past 5 years 47% of senior
Slide 5: Solving Complex Problems with High Value-Added Expertise
Solving Complex Problems with High Value-Added Expertise Antitrust & Labor & Each of our practices Competition Employment is highly regarded, Financial and our consultants Economics are recognized for their creative and Auctions & Competitive Bidding Life Sciences multidisciplinary approach to solvi
Slide 6: In the Past Two Years, We Have Worked with 85 of the Fortune 100
In the Past Two Years, We Have Worked with 85 of the Fortune 100 Corporate Note: Figures as of year-end fiscal 2024. 6
Slide 7: In the Past Two Years, We Have Partnered with 98 of the Top 100 Law Firms
In the Past Two Years, We Have Partnered with 98 of the Top 100 Law Firms Law Firm Note: Figures as of year-end fiscal 2024. 7
Slide 8: We Are Delivering Growth While Returning Capital to Shareholders
We Are Delivering Growth While Returning Capital to Shareholders Revenue Headcount EPS Stock Cash Growth Growth Growth* Repurchases Dividends Fiscal 2025 6% -5% 13% $0M $3M Q1** utilization of 76% Fiscal 2024 10% -6% utilization of 75% 39% $33M average price of $12M $162 per share Fiscal Years 52% 2
Slide 9: Investment Thesis
Investment Thesis We are committed to being the firm of choice for our clients as they address their most important litigation, regulatory, and strategic challenges, as well as for our employees as they seek a fulfilling and exciting place to work Leading experts in their Management team with strong
Slide 10: Consistently Strong Performance Reflects the Quality of Portfolio and the Breadth of Contributors
Consistently Strong Performance Reflects the Quality of Portfolio and the Breadth of Contributors Revenue $800 $687 $700 $624 $591 $600 $566 $508 $500 (millions) $400 $300 $200 $182 $100 $0 2020 2021 2022 2023 2024 Q1 2025 Against challenging comparisons, CRA has achieved record-breaking revenue in
Slide 11: Healthy EBITDA Margin Despite Inclusion of Non-Cash Amortization of Forgivable Loans
Healthy EBITDA Margin Despite Inclusion of Non-Cash Amortization of Forgivable Loans ($ in millions) 2020 2021 2022 2023 2024 Q1 2025 Revenue $508 $566 $591 $624 $687 $182 EBITDA* $51 $69 $71 $68 $90 $25 % of Revenue 10.0% 12.2% 12.0% 10.9% 13.2% 13.6% Non-Cash Amortization of Forgivable Loans ** $3
Slide 12: Capital Allocation Philosophy: Uses of Capital
Capital Allocation Philosophy: Uses of Capital Uses of Capital (FY2020-24) Given the strength of our business, all of our investments have been funded from operations Redistribution to We always seek to deliver returns well above Talent, $185, Shareholders, 43% $199, 47% our cost of capital Looking
Slide 13: Capital Allocation Philosophy: Talent Strategy
Capital Allocation Philosophy: Talent Strategy Uses of Capital (FY2020-24) We use capital to drive growth, both in support of organic initiatives and inorganic pursuits; over this period, revenue has increased by greater than 50%, or more than $230 million Historically, our revenue growth has been b
Slide 14: Capital Allocation Philosophy: Capital Expenditures
Capital Allocation Philosophy: Capital Expenditures Uses of Capital (FY2020-24) Outlays associated with lease expirations and office expansions to accommodate growth accounted for $19 million of total capital expenditures Our investments in office buildouts have focused on efficient space planning,
Slide 15: Capital Allocation Philosophy: Redistribution to Shareholders
Capital Allocation Philosophy: Redistribution to Shareholders Uses of Capital (FY2020-24) Redistributions to shareholders have consisted of $151 million of share repurchases and $48 million of dividend payments CRA has repurchased 1.7 million shares at an average cost of $88 per share during 2020-20
Slide 16: Shareholder Distributions Significantly Reduced Shares Outstanding
Shareholder Distributions Significantly Reduced Shares Outstanding, Magnifying Per Share Value Gains 8.0 7.7 Period-end shares outstanding (million) 7.5 7.4 7.1 7.0 6.9 6.8 6.8 6.5 2020 2021 2022 2023 2024 Q1 2025 Over the past decade, shares outstanding have shrunk by more than 25% 16
Slide 17: Expectations for the Future
Expectations for the Future Revenue range of For FY2025, we have provided the $715 – $735 million* following annual financial guidance on a constant currency basis Non-GAAP EBITDA margin range of 12.0% – 13.0%* Average annual revenue growth in the mid-single digits driven Over the next several years
Slide 18: Evergreen End Markets and Primary Demand Drivers
Evergreen End Markets and Primary Demand Drivers Mergers & Legal Spend Acquisitions Regulatory Strategy & Operations & Public Policy Consulting 18
Slide 19: Strong Performance in Legal & Regulatory Services Despite Modest Growth in Legal Spending
Strong Performance in Legal & Regulatory Services Despite Modest Growth in Legal Spending $50 $16.7 100% $16.3 $45 $16.0 $15.7 $14.9 Percent of Legal Spending per company Legal Spending per company (millions) $40 $13.3 $13.7 $14.1 $15.0 $14.1 75% $35 $13.5 64.9% 62.9% 62.4% 62.4% 63.9% 61.4% 61.2% 6
Slide 20: Our Business Has Performed Well Through Fluctuations in Global M&A Activity
Our Business Has Performed Well Through Fluctuations in Global M&A Activity $1,600 $1,400 Announced deal value (billions) $1,200 $1,000 $800 $600 $400 $200 $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Americas Europe Asia Pacific Japan Africa/ME Source: LSEG, April 2025 Both lines of bu
Slide 21: Growing Complexity in Regulatory Markets Benefit Our Businesses
Growing Complexity in Regulatory Markets Benefit Our Legal & Regulatory and Management Consulting Businesses “ “This is why we are working to adapt our competition tools to the new challenges that lie ahead. We will preserve the fundamentals, which have stood the test of time, but we need to factor
Slide 22: Consulting Services Remain in Demand During Both Positive and Challenging Economic Environments
Consulting Services Remain in Demand During Both Positive and Challenging Economic Environments Management Consulting Market Size and Growth Forecast $500 3.5% annual real growth 0.8% annual real growth 2021 – 2025 expected for 2026 – 2030 Key Trends in Management Consulting $417 $404 $409 $412 $415
Slide 23: Representative Client Matters
Representative Client Matters 23
Slide 24: Legal & Regulatory Consulting
Legal & Regulatory Consulting CRA was retained by Cisco, a leading global technology company, to provide economic analyses across worldwide jurisdictions in support of its $28 billion acquisition of Splunk, a cybersecurity leader. Cisco received unconditional clearance from the European Commission,
Slide 25: Legal & Regulatory Consulting
Legal & Regulatory Consulting A multi-national insurance broker faced a severe ransomware attack, triggering a partial network shutdown and massive data exfiltration. CRA leveraged sophisticated endpoint management, detection and response tools to provide comprehensive asset visibility and to accele
Slide 26: Legal & Regulatory Consulting
Legal & Regulatory Consulting The European Commission fined Teva €462.6 million for delaying competition for its blockbuster drug, Copaxone. CRA advised various third parties on this case culminating in the Commission’s decision against Teva’s conduct. Specifically, the Commission found that Teva ha
Slide 27: Legal & Regulatory Consulting
Legal & Regulatory Consulting CRA was retained by Colombia in an international arbitration dispute brought by Eco Oro Minerals Corp. that alleged Colombia had expropriated its gold-silver mining project in the Andes. CRA experts testified on the market value of the mining project. Based in part on t
Slide 28: Legal & Regulatory Consulting
Legal & Regulatory Consulting CRA conducted an investigation on behalf of a European tax authority into an alleged $2 billion fraud connected to the distribution of government funds. CRA’s team performed extensive trading and market practice analysis, investigative research, forensic accounting, flo
Slide 29: Legal & Regulatory Consulting
Legal & Regulatory Consulting CRA was engaged as an economic damages and licensing expert on behalf of Cloudflare, a global Internet cloud services provider. CRA’s team contributed to Cloudflare's successful defense by helping demonstrate that the plaintiff’s “licensing program” was not legitimate,
Slide 30: Management Consulting
Management Consulting A leading pharmaceutical company sought support from CRA’s Life Sciences experts in the clinical development of several cancer therapy products. We developed a detailed evaluation of the tumor types that were of interest to our client and helped map the anticipated clinical cha
Slide 31: Management Consulting
Management Consulting A major international renewable and hydrogen developer was seeking support in developing a North American hydrogen market entry strategy. The CRA team worked closely with the client team to develop a foundational fact set, conduct a clean hydrogen global production cost analysi
Slide 32: Appendix
Appendix Supplemental Financial Disclosures 32
Slide 33: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Fiscal Years Fiscal YTD 2019 2020 2021 2022 2023 2024 Q1 2025 Q1 2024 ($ in millions, except per share data) Revenues $ 451.4 $ 508.4 $ 565.9 $ 590.9 $ 624.0 $ 687.4 $ 181.9 $ 171.8 Income from operations 29.3 34.8 55.7 58.7 57.5 70.8 25.5 19.6 Operating
Slide 34: Reconciliation of Non-GAAP Financial Measures (cont.)
Reconciliation of Non-GAAP Financial Measures (cont.) Fiscal Years Fiscal YTD 2019 2020 2021 2022 2023 2024 Q1 2025 Q1 2024 ($ in millions) Reconciliation of net income to non-GAAP EBITDA: Net Income $ 20.7 $ 24.5 $ 41.7 $ 43.6 $ 38.5 $ 46.7 $ 18.0 $ 13.7 Adjustments needed to reconcile GAAP net inc
Slide 35: Investor Relations
Investor Relations Charles River Associates 200 Clarendon Street Boston, MA 02116 investor@crai.com Follow Us www.facebook.com/ www.crai.com CharlesRiverAssociates www.linkedin.com/company/charles- www.youtube.com/ river-associates CharlesRiverAssociates www.instagram.com/ charlesriverassociates 35