CHARLES RIVER ASSOCIATES (CRA) SECOND QUARTER FISCAL YEAR 2026 EARNINGS ANNOUNCEMENT PREPARED CFO REMARKS
CRA is providing these prepared remarks by CFO Eric Nierenberg in combination with its press release. These remarks are offered to provide the investment community with additional information on CRA's financial results prior to the start of the conference call.
As previously announced, the conference call will be held on August 6, 2026 at 10:00 a.m. ET. These prepared remarks will not be read on the call.
Revenue: $210.8 million
Net income: $13.5 million, or 6.4% of revenue; non-GAAP net income: $13.9 million, or 6.6% of revenue
Earnings per diluted share: $2.10; non-GAAP earnings per diluted share: $2.16
Operating margin and non-GAAP operating margin: 11.2%
Non-GAAP EBITDA: $26.8 million, or 12.7% of revenue
Effective tax rate: 32.9%; non-GAAP effective tax rate: 32.6%
Utilization: 77%
Consultant headcount at the end of Q2 of fiscal 2026: 968, which consists of 161 officers, 581 other senior staff and 226 junior staff
Cash and cash equivalents: $21.4 million at July 4, 2026
Revolving credit facility borrowing capacity: $77.3 million at July 4, 2026
For Q2 of fiscal 2026, revenue was $210.8 million, compared with revenue of $186.9 million for Q2 of fiscal 2025.
HeadcountThe following table outlines CRA's consultant headcount at the end of the stated quarters:
Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | |
Officers | 161 | 170 | 164 | 164 | 159 |
Other Senior Staff | 581 | 598 | 563 | 567 | 557 |
Junior Staff | 226 | 203 | 232 | 237 | 221 |
Total | 968 | 971 | 959 | 968 | 937 |
For Q2 of fiscal 2026, company-wide utilization was 77%, compared with 76% for Q2 of fiscal 2025.
Client ReimbursablesFor Q2 of fiscal 2026, client reimbursables were $20.1 million, or 9.5% of revenue, compared with $19.6 million, or 10.5% of revenue, for Q2 of fiscal 2025.
Selling, General and Administrative (SG&A) ExpensesFor Q2 of fiscal 2026, SG&A expenses were $35.3 million, or 16.7% of revenue, compared with $35.1 million, or 18.8% of revenue, for Q2 of fiscal 2025. Commissions to non-employee experts are included in SG&A expenses. These commissions represented approximately 1.3% of revenue for Q2 of fiscal 2026 and 2.4% for Q2 of fiscal 2025. Excluding these commissions, SG&A expenses were 15.5% of revenue for Q2 of fiscal 2026, compared with 16.3% in Q2 of fiscal 2025.
Fiscal Quarter Ended$ in 000's | July 4, 2026 | As a % of Revenue | June 28, 2025 | As a % of Revenue |
SG&A expenses | $ 35,259 | 16.7 % | $ 35,079 | 18.8 % |
Less: commissions to non-employee experts | 2,680 | 1.3 % | 4,576 | 2.4 % |
SG&A expenses excluding commissions | $ 32,579 | 15.5 % | $ 30,503 | 16.3 % |
For Q2 of fiscal 2026, depreciation and amortization expenses amounted to $3.3 million, or 1.6% of revenue, compared with $3.5 million, or 1.9% of revenue, for Q2 of fiscal 2025.
Forgivable Loan AmortizationFor Q2 of fiscal 2026, forgivable loan amortization, including performance award amortization was $14.9 million, or 7.0% of revenue, compared with $10.2 million, or 5.5% of revenue, for Q2 of fiscal 2025.
Share-Based Compensation ExpenseFor Q2 of fiscal 2026, share-based compensation expense was approximately $2.4 million, or 1.1% of revenue, compared with $1.0 million, or 0.5% of revenue, for Q2 of fiscal 2025.
Operating IncomeFor Q2 of fiscal 2026, operating income and non-GAAP operating income were $23.5 million, or 11.2% of revenue, compared with
$19.7 million, or 10.6% of revenue, for Q2 of fiscal 2025.
Interest Income (Expense), netFor Q2 of fiscal 2026, net interest expense was $3.0 million, or 1.4% of revenue, compared with net interest expense of $1.8 million, or 1.0% of revenue, for Q2 of fiscal 2025.
Foreign Currency Gains (Losses), netFor Q2 of fiscal 2026, net foreign currency losses were $0.5 million, or 0.2% of revenue, compared with net foreign currency losses of
$0.8 million, or 0.4% of revenue, for Q2 of fiscal 2025.
Foreign currency gains (losses), net, is comprised of net gains and losses on foreign denominated transactions and the revaluation of working capital balances.
Income TaxesThe following table outlines CRA's income tax provision recorded and the resulting effective tax rates:
GAAP Non-GAAP Fiscal Quarter Ended Fiscal Quarter Ended$ in 000's | July 4, 2026 | June 28, 2025 | July 4, 2026 | June 28, 2025 |
Tax Provision | $ 6,612 | $ 4,994 | $ 6,719 | $ 5,208 |
Effective Tax Rate | 32.9 % | 29.2 % | 32.6 % | 29.0 % |
$ in 000's | July 4, 2026 | As a % of Revenue | June 28, 2025 | As a % of Revenue |
Income before provision for income taxes | $ 20,120 | 9.5 % $ | 17,116 | 9.2 % |
Adjustments needed to reconcile GAAP income before provision for income taxes to non-GAAP income before provision for income taxes | ||||
Foreign currency (gains) losses, net | 467 | 0.2 % | 815 | 0.4 % |
Non-GAAP income before provision for income taxes | $ 20,587 | 9.8 % $ 17,931 | 9.6 % | |
GAAP provision for income taxes | $ 6,612 | $ 4,994 | ||
Tax effect on non-GAAP adjustments | 107 | 214 | ||
Non-GAAP provision for income taxes | $ 6,719 | $ 5,208 | ||
For Q2 of fiscal 2026, net income was $13.5 million, or 6.4% of revenue, or $2.10 per diluted share, compared with net income of
$12.1 million, or 6.5% of revenue, or $1.79 per diluted share, for Q2 of fiscal 2025. Non-GAAP net income for Q2 of fiscal 2026 was
$13.9 million, or 6.6% of revenue, or $2.16 per diluted share, compared with $12.7 million, or 6.8% of revenue, or $1.88 per diluted share, for Q2 of fiscal 2025.
Non-GAAP EBITDAFor Q2 of fiscal 2026, non-GAAP EBITDA was $26.8 million, or 12.7% of revenue, compared with $23.3 million, or 12.4% of revenue, for Q2 of fiscal 2025.
Constant Currency BasisFor Q2 of fiscal 2026, revenue was $210.8 million, and net income was $13.5 million, or 6.4% of revenue, or $2.10 per diluted share. On a constant currency basis relative to Q2 of fiscal 2025, Q2 of fiscal 2026 revenue would have been lower by $0.4 million at $210.4 million, while GAAP net income, and earnings per diluted share would have remained unchanged.
For Q2 of fiscal 2026, revenue was $210.8 million, and non-GAAP net income was $13.9 million, or 6.6% of revenue, or $2.16 per diluted share. On a constant currency basis relative to Q2 of fiscal 2025, Q2 of fiscal 2026 revenue would have been lower by $0.4 million at $210.4 million, non-GAAP net income would have been lower by $0.1 million at $13.8 million, or 6.6% of revenue, while non-GAAP earnings per diluted share and non-GAAP EBITDA would have remained unchanged.
A description of the process for calculating the measures presented on a constant currency basis is contained under the heading "Non-GAAP Financial Measures" below.
Key Balance Sheet MetricsBilled and unbilled receivables at July 4, 2026 were $271.7 million, compared with $235.0 million at June 28, 2025. Current liabilities at July 4, 2026 were $415.2 million, compared with $317.3 million at June 28, 2025.
Total Days Sales Outstanding, or DSO, for Q2 of fiscal 2026 was 113 days, consisting of 68 days of billed and 45 days of unbilled. This compares with 110 days reported for Q2 of fiscal 2025, consisting of 73 days of billed and 37 days of unbilled.
Cash and Cash FlowCash and cash equivalents was $21.4 million at July 4, 2026, compared with $19.4 million at June 28, 2025.
Net cash used in operating activities for Q2 of fiscal 2026 was $4.4 million, compared with net cash provided by operating activities of
$5.9 million for Q2 of fiscal 2025.
As of July 4, 2026, there were $219.0 million in borrowings outstanding under CRA's revolving credit facility. At June 28, 2025, there were $120.0 million in borrowings outstanding under CRA's revolving credit facility.
Capital expenditures totaled $1.6 million for Q2 of fiscal 2026, compared with $1.2 million for Q2 of fiscal 2025.
CRA repurchased approximately 193,000 shares of common stock during Q2 of fiscal 2026 for $27.8 million. During the fiscal quarter ended June 28, 2025, CRA repurchased approximately 231,000 shares of common stock for $43.2 million.
A quarterly cash dividend of $0.57 per common share, for total dividends and dividend equivalents of $3.6 million, was paid in Q2 of fiscal 2026, compared with a quarterly cash dividend of $0.49 per common share, for total dividends and dividend equivalents of $3.4 million paid in Q2 of fiscal 2025.
GAAP Condensed Consolidated Statement of Cash FlowsCRA has derived the condensed consolidated statement of cash flow data for the fourth quarters and the years ended January 3, 2026 and December 28, 2024 from its audited financial statements appearing on Form 10-K for the fiscal year ended January 3, 2026, filed with the Securities and Exchange Commission on February 26, 2026. The condensed consolidated statement of cash flow data for the first, second and third quarters of fiscal year 2025, and the third quarter of fiscal year 2024 have been derived from CRA's unaudited financial statements appearing on Form 10-Q for each of the respective fiscal quarters as well as the consolidated statements of cash flows appearing on Form 10-K for the fiscal years ended January 3, 2026 and December 28, 2024 and have been prepared on the same basis as CRA's audited financial statements.
GAAP Condensed Consolidated Statement of Cash Flows | LTM | Q2 | Q1 | Q4 | Q3 |
($ in 000's) | Q2 2026 | 2026 | 2026 | 2025 | 2025 |
Net cash provided by (used in) operating activities | $ (21,747) | $ (4,424) | $ (113,889) | $ 60,019 | $ 36,547 |
Net cash used in investing activities | (6,000) | (1,646) | (2,649) | (1,055) | (650) |
Net cash provided by (used in) financing activities | 29,099 | (5,158) | 131,282 | (64,733) | (32,292) |
Effect of foreign exchange rates on cash and cash equivalents | 642 | 174 | (458) | 1,483 | (557) |
Net increase (decrease) in cash and cash equivalents | $ 1,994 | $ (11,054) | $ 14,286 | $ (4,286) | $ 3,048 |
Cash and cash equivalents at beginning of period | 19,448 | 32,496 | 18,210 | 22,496 | 19,448 |
Cash and cash equivalents at end of period | $ 21,442 | $ 21,442 | $ 32,496 | $ 18,210 | $ 22,496 |
GAAP Condensed Consolidated Statement of Cash Flows | LTM | Q2 | Q1 | Q4 | Q3 |
($ in 000's) | Q2 2025 | 2025 | 2025 | 2024 | 2024 |
Net cash provided by (used in) operating activities | $ 36,866 | $ 5,852 | $ (79,994) | $ 79,424 | $ 31,584 |
Net cash used in investing activities | (15,740) | (1,189) | (974) | (10,591) | (2,986) |
Net cash provided by (used in) financing activities | (27,373) | (11,875) | 79,058 | (64,629) | (29,927) |
Effect of foreign exchange rates on cash and cash equivalents | 1,046 | 1,062 | 797 | (1,974) | 1,161 |
Net increase (decrease) in cash and cash equivalents | $ (5,201) | $ (6,150) | $ (1,113) | $ 2,230 | $ (168) |
Cash and cash equivalents at beginning of period | 24,649 | 25,598 | 26,711 | 24,481 | 24,649 |
Cash and cash equivalents at end of period | $ 19,448 | $ 19,448 | $ 25,598 | $ 26,711 | $ 24,481 |
Below are the quarterly and last twelve-month reconciliations of GAAP net cash provided by (used in) operating activities for each of the periods presented to non-GAAP adjusted net cash flows from operations. The reconciling items are forgivable loan advances and repayments for each period, which are reported as a component of GAAP net cash provided by (used in) operating activities, along with other non-recurring cash items.
Adjusted Net Cash Flows from Operations ($ in 000's) | LTM Q2 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | ||
GAAP net cash provided by (used in) operating activities | $ (21,747) | $ (4,424) | $ (113,889) | $ 60,019 | $ 36,547 | ||
Forgivable loan advances | 128,945 | 19,607 | 62,367 | 17,571 | 29,400 | ||
Forgivable loan repayments | (2,766) | (1,383) | (50) | - | (1,333) | ||
Adjusted net cash flows from operations | $ 104,432 | $ 13,800 | $ (51,572) | $ 77,590 | $ 64,614 | ||
Net revenue | $ 794,644 | $ 210,815 | $ 200,975 | $ 196,963 | $ 185,891 | ||
GAAP net cash provided by (used in) operating activities as a percentage of net revenue | (2.7)% | (2.1)% | (56.7)% | 30.5% | 19.7 | % | |
Adjusted net cash flows from operations as a percentage of net revenue | 13.1 % | 6.5 | % | (25.7)% | 39.4% | 34.8 | % |
Adjusted Net Cash Flows from Operations | LTM | Q2 | Q1 | Q4 | Q3 |
($ in 000's) | Q2 2025 | 2025 | 2025 | 2024 | 2024 |
GAAP net cash provided by (used in) operating activities | $ 36,866 | $ 5,852 | $ (79,994) | $ 79,424 | $ 31,584 |
Forgivable loan advances | 62,302 | 13,507 | 27,431 | 7,106 | 14,258 |
Forgivable loan repayments | (3,073) | - | (600) | (2,473) | - |
Adjusted net cash flows from operations | $ 96,095 | $ 19,359 | $ (53,163) | $ 84,057 | $ 45,842 |
Net revenue | $ 712,912 | $ 186,878 | $ 181,851 | $ 176,435 | $ 167,748 |
GAAP net cash provided by (used in) operating activities as a percentage of net revenue | 5.2 % | 3.1 % | (44.0)% | 45.0% | 18.8 % |
Adjusted net cash flows from operations as a percentage of net revenue | 13.5 % | 10.4 % | (29.2)% | 47.6% | 27.3 % |
In these remarks, CRA has supplemented the presentation of its financial results calculated in accordance with U.S. generally accepted accounting principles or "GAAP" with the following financial measures that were not calculated in accordance with GAAP: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP EBITDA, non-GAAP income from operations (and non-GAAP operating margin), non-GAAP provision for income taxes (and non-GAAP effective tax rate), SG&A expenses excluding
commissions and non-GAAP adjusted net cash flows from operations. CRA believes that these non-GAAP financial measures are important to management and investors because these measures supplement the understanding of CRA's ongoing operating results, financial condition and cash flows. Non-GAAP adjusted net cash flows from operations is used by management to assess CRA's ability to fund items such as the acquisition of talent, office expansions, debt repayment and distributions to shareholders. In addition, non-GAAP net income and non-GAAP EBITDA are used by CRA in its budgeting process, and the non-GAAP adjustments described below are made to the performance measures for some of CRA's performance-based compensation.
As used herein, CRA defines non-GAAP EBITDA as net income before interest expense (net), provision for income taxes, and depreciation and amortization further adjusted for the impact of certain items that we do not consider indicative of its core operating performance, such as non-cash amounts relating to valuation changes in contingent consideration, acquisition-related costs, foreign currency (gains) losses, net, restructuring costs and related tax effects. Non-GAAP net income, non-GAAP income from operations and non-GAAP provision for income taxes also exclude non-cash amounts relating to valuation changes in contingent consideration, acquisition-related costs, foreign currency (gains) losses, net, restructuring costs and related tax effects. The adjustments made to non-GAAP adjusted net cash flows from operations add back forgivable loan issuances, net of repayments, along with other non-recurring cash items. These remarks also present certain current fiscal period financial measures on a "constant currency" basis in order to isolate the effect that foreign currency exchange rate fluctuations can have on CRA's financial results. These constant currency measures are determined by recalculating the current fiscal period local currency financial measure using the specified corresponding prior fiscal period's foreign exchange rates.
All of the non-GAAP financial measures referred to above should be considered in conjunction with, and not as a substitute for, the GAAP financial information presented in these remarks. The financial measures identified in these remarks as "non-GAAP" are reconciled to their GAAP comparable measures either in these remarks or in the attached financial tables. In evaluating these non-GAAP financial measures, note that the non-GAAP financial measures used by CRA may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
CRA INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE FISCAL QUARTERS ENDED JULY 4, 2026 COMPARED TO JUNE 28, 2025 (IN THOUSANDS, EXCEPT PER SHARE DATA) Fiscal Quarter Ended Fiscal Year-to-Date Period EndedJuly 4, 2026 | As a % of Revenue | June 28, 2025 | As a % of Revenue | July 4, 2026 | As a % of Revenue | June 28, 2025 | As a % of Revenue | |
Revenues | $ 210,815 | 100.0 % | $ 186,878 | 100.0 % | $ 411,790 | 100.0 % | $ 368,729 | 100.0 % |
Costs of services (exclusive of depreciation and amortization) | 148,734 | 70.6 % | 128,542 | 68.8 % | 293,762 | 71.3 % | 248,896 | 67.5 % |
Selling, general and administrative expenses | 35,259 | 16.7 % | 35,079 | 18.8 % | 69,784 | 16.9 % | 67,617 | 18.3 % |
Depreciation and amortization | 3,281 | 1.6 % | 3,530 | 1.9 % | 6,672 | 1.6 % | 6,941 | 1.9 % |
Income from operations | 23,541 | 11.2 % | 19,727 | 10.6 % | 41,572 | 10.1 % | 45,275 | 12.3 % |
Interest expense, net | (2,954) | -1.4 % | (1,796) | -1.0 % | (3,965) | -1.0 % | (2,225) | -0.6 % |
Foreign currency gains (losses), net | (467) | -0.2 % | (815) | -0.4 % | (88) | - % | (1,290) | -0.3 % |
Income before provision for income taxes | 20,120 | 9.5 % | 17,116 | 9.2 % | 37,519 | 9.1 % | 41,760 | 11.3 % |
Provision for income taxes | 6,612 | 3.1 % | 4,994 | 2.7 % | 12,879 | 3.1 % | 11,636 | 3.2 % |
Net income | $ 13,508 | 6.4 % | $ 12,122 | 6.5 % | $ 24,640 | 6.0 % | $ 30,124 | 8.2 % |
Net income per share: | ||||||||
Basic | $ 2.13 | $ 1.81 | $ 3.84 | $ 4.47 | ||||
Diluted | $ 2.10 | $ 1.79 | $ 3.79 | $ 4.42 |
Weighted average number of shares outstanding:
Basic | 6,348 | 6,694 | 6,430 | 6,734 | |||
Diluted | 6,407 | 6,753 | 6,498 | 6,807 |
July 4, 2026 | As a % of Revenue | June 28, 2025 | As a % of Revenue | July 4, 2026 | As a % of Revenue | June 28, 2025 | As a % of Revenue | |
Revenues | $ 210,815 | 100.0 % | $ 186,878 | 100.0 % | $ 411,790 | 100.0 % | $ 368,729 | 100.0 % |
Net income | $ | 13,508 | 6.4 % | $ | 12,122 | 6.5 % | $ | 24,640 | 6.0 % | $ | 30,124 | 8.2 % |
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | ||||||||||||
Restructuring and other (1)(2) | - | - % | - | - % | 1,759 | 0.4 % | (4,170) | -1.1 % | ||||
Foreign currency (gains) losses, net | 467 | 0.2 % | 815 | 0.4 % | 88 | - % | 1,290 | 0.3 % | ||||
Tax effect on adjustments(1) | (107) | -0.1 % | (214) | -0.1 % | 479 | 0.1 % | 733 | 0.2 % | ||||
Non-GAAP net income | $ 13,868 | 6.6 % | $ 12,723 | 6.8 % | $ 26,966 | 6.5 % | $ 27,977 | 7.6 % | ||||
Non-GAAP net income per share: | ||||||||||||
Basic | $ 2.19 | $ 1.90 | $ 4.20 | $ 4.15 | ||||||||
Diluted | $ 2.16 | $ 1.88 | $ 4.14 | $ 4.10 | ||||||||
Weighted average number of shares outstanding: | ||||||||||||
Basic | 6,348 | 6,694 | 6,430 | 6,734 | ||||||||
Diluted | 6,407 | 6,753 | 6,498 | 6,807 | ||||||||
(1) Fiscal year-to-date period ended July 4, 2026 includes cash severance of $1.6 million and non-cash charges of $1.0 million associated with portfolio optimization actions.
(2) Fiscal year-to-date period ended June 28, 2025 includes $1.2 million of restructuring charges, net of the reversal of $5.4 million of non-cash charges associated with a previously recorded performance award.
CRA INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FOR THE FISCAL QUARTERS ENDED JULY 4, 2026 COMPARED TO JUNE 28, 2025 (IN THOUSANDS) Fiscal Quarter Ended Fiscal Year-to-Date Period EndedJuly 4, 2026 | As a % of Revenue | June 28, 2025 | As a % of Revenue | July 4, 2026 | As a % of Revenue | June 28, 2025 | As a % of Revenue | |
Revenues | $ 210,815 | 100.0 % | $ 186,878 | 100.0 % | $ 411,790 | 100.0 % | $ 368,729 | 100.0 % |
Net income | $ 13,508 | 6.4 % | $ 12,122 | 6.5 % | $ 24,640 | 6.0 % | $ 30,124 | 8.2 % |
Adjustments needed to reconcile GAAP net income to non-GAAP net income: | ||||||||
Restructuring and other (1)(2) | - | - % | - | - % | 1,759 | 0.4 % | (4,170) | -1.1 % |
Foreign currency (gains) losses, net | 467 | 0.2 % | 815 | 0.4 % | 88 | - % | 1,290 | 0.3 % |
Tax effect on adjustments(1) | (107) | -0.1 % | (214) | -0.1 % | 479 | 0.1 % | 733 | 0.2 % |
Non-GAAP net income | $ 13,868 | 6.6 % | $ 12,723 | 6.8 % | $ 26,966 | 6.5 % | $ 27,977 | 7.6 % |
Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | ||||||||
Interest expense, net | $ 2,954 | 1.4 % | $ 1,796 | 1.0 % | $ 3,965 | 1.0 % | $ 2,225 | 0.6 % |
Provision for income taxes | 6,719 | 3.2 % | 5,208 | 2.8 % | 12,400 | 3.0 % | 10,903 | 3.0 % |
Depreciation and amortization | 3,281 | 1.6 % | 3,530 | 1.9 % | 6,672 | 1.6 % | 6,941 | 1.9 % |
Non-GAAP EBITDA | $ 26,822 | 12.7 % | $ 23,257 | 12.4 % | $ 50,003 | 12.1 % | $ 48,046 | 13.0 % |
(1) Fiscal year-to-date period ended July 4, 2026 includes cash severance of $1.6 million and non-cash charges of $1.0 million associated with portfolio optimization actions.
(2) Fiscal year-to-date period ended June 28, 2025 includes $1.2 million of restructuring charges, net of the reversal of $5.4 million of non-cash charges associated with a previously recorded performance award.
CRA INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) | ||||
July 4, 2026 | January 3, 2026 | |||
Assets | ||||
Cash and cash equivalents | $ 21,442 | $ 18,210 | ||
Accounts receivable and unbilled services, net | 271,699 | 248,862 | ||
Other current assets | 45,834 | 36,057 | ||
Total current assets | 338,975 | 303,129 | ||
Property and equipment, net | 34,917 | 36,713 | ||
Goodwill and intangible assets, net | 99,506 | 100,404 | ||
Right-of-use assets | 69,370 | 76,132 | ||
Other assets | 135,709 | 112,495 | ||
Total assets | $ 678,477 | $ 628,873 | ||
Liabilities and Shareholders' Equity | ||||
Accounts payable | $ 25,217 | $ 30,177 | ||
Accrued expenses | 138,776 | 223,460 | ||
Current portion of lease liabilities | 17,695 | 17,223 | ||
Revolving line of credit | 219,000 | 34,000 | ||
Other current liabilities | 14,520 | 25,169 | ||
Total current liabilities | 415,208 | 330,029 | ||
Non-current portion of lease liabilities | 66,956 | 76,009 | ||
Other non-current liabilities | 14,465 | 9,237 | ||
Total liabilities | 496,629 | 415,275 | ||
Total shareholders' equity | 181,848 | 213,598 | ||
Total liabilities and shareholders' equity | $ 678,477 | $ 628,873 | ||
July 4, 2026 | June 28, 2025 | |
Operating activities: | ||
Net income | $ 24,640 | $ 30,124 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Non-cash items, net | 20,978 | 17,709 |
Accounts receivable and unbilled services | (23,636) | (11,371) |
Working capital items, net | (140,295) | (110,604) |
Net cash used in operating activities | (118,313) | (74,142) |
Investing activities: | ||
Purchases of property and equipment, net | (4,295) | (2,163) |
Net cash used in investing activities | (4,295) | (2,163) |
Financing activities: | ||
Borrowings under revolving line of credit | 257,500 | 132,000 |
Repayments under revolving line of credit | (72,500) | (12,000) |
Tax withholding payments reimbursed by shares | (2,135) | (2,809) |
Cash dividends and dividend equivalents paid | (7,438) | (6,858) |
Repurchase of common stock | (49,303) | (43,150) |
Net cash provided by financing activities | 126,124 | 67,183 |
Effect of foreign exchange rates on cash and cash equivalents | (284) | 1,859 |
Net increase (decrease) in cash and cash equivalents | 3,232 | (7,263) |
Cash and cash equivalents at beginning of period | 18,210 | 26,711 |
Cash and cash equivalents at end of period | $ 21,442 | $ 19,448 |
Noncash investing and financing activities: | ||
Decrease in accounts payable and accrued expenses for property and equipment | $ (128) | $ (585) |
Excise tax on share repurchases | $ (462) | $ (388) |
Right-of-use assets obtained in exchange for lease obligations | $ 885 | $ 7,808 |
Supplemental cash flow information: | ||
Cash paid for taxes | $ 10,212 | $ 14,854 |
Cash paid for interest | $ 3,057 | $ 1,670 |
Cash paid for amounts included in operating lease liabilities | $ 11,640 | $ 11,515 |
10