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Economic consulting firm CRA International (NASDAQ:CRAI) reported Q1 CY2025 results beating Wall Street’s revenue expectations , with sales up 5.9% year on year to $181.9 million. The company’s full-year revenue guidance of $725 million at the midpoint came in 0.9% above analysts’ estimates. Its non-GAAP profit of $2.22 per share was 13.8% above analysts’ consensus estimates.

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CRA (CRAI) Q1 CY2025 Highlights:

• Revenue: $181.9 million vs analyst estimates of $176.6 million (5.9% year-on-year growth, 3% beat)

• Adjusted EPS: $2.22 vs analyst estimates of $1.95 (13.8% beat)

• Adjusted EBITDA: $24.79 million vs analyst estimates of $22.1 million (13.6% margin, 12.2% beat)

• The company reconfirmed its revenue guidance for the full year of $725 million at the midpoint

• Operating Margin: 14%, up from 11.4% in the same quarter last year

• Free Cash Flow was -$80.97 million compared to -$63.81 million in the same quarter last year

• Market Capitalization: $1.27 billion

StockStory’s Take

CRA International’s first quarter results were shaped by broad-based contributions across key practices and geographies. Management attributed revenue growth to double-digit expansion in its Energy, Finance, Intellectual Property, and Life Sciences practices, with the Antitrust & Competition Economics group achieving a new revenue high. CEO Paul Maleh highlighted the acceleration of project lead flow through the quarter, noting that consulting utilization improved and that performance was supported by international operations, which saw nearly 20% year-on-year growth.

Looking ahead, management reaffirmed its full-year revenue guidance, citing continued momentum in new business origination and a replenished sales pipeline. Maleh cautioned that while March’s positive trends continued into April, it remains too early to assume these trends will persist throughout the year, given ongoing macroeconomic and geopolitical uncertainty. He added that CRA remains focused on optimizing its service portfolio and aligning headcount growth with revenue opportunities.

Key Insights from Management’s Remarks

CRA International’s management pointed to multiple factors driving Q1 performance, emphasizing practice diversification, geographic expansion, and a steady demand environment. The company’s results exceeded analysts’ expectations, aided by improved consulting utilization and project origination.

• Antitrust practice momentum: The Antitrust & Competition Economics group reached record quarterly revenue, fueled by ongoing demand for merger-related and antitrust advisory work, including high-profile projects such as supporting Microsoft in regulatory matters.

• International growth contributions: International operations delivered nearly 20% year-on-year revenue growth, with management citing a balanced portfolio across North America and global markets as key to consistent performance.

• Collaborative client delivery: Management highlighted increased collaboration across practices and geographies, enabling the firm to address complex, multi-jurisdictional projects involving litigation, M&A, and regulatory compliance.

• Life Sciences and Energy strength: The Life Sciences practice extended its turnaround, posting another strong quarter across opportunity assessment and launch planning, while Energy consulting saw double-digit revenue gains through projects in strategy, risk, and transaction support.

• Service portfolio optimization: The company completed targeted restructuring affecting 15 roles, intended to align resources with areas of higher growth potential. Management emphasized ongoing investment in talent acquisition and retention to support future expansion.