CRA INTERNATIONAL, INC. Q1 FY2025 earnings call

• CRA continued strong performance into Q1 2025, delivering record financial results with revenue up 5.9% y-o-y to $181.9M. • Broad-based growth: 5 practices grew, 4 had double-digit revenue growth, and Antitrust & Competition Economics set a quarterly revenue record. • International ops saw nearly 20% y-o-y revenue growth. • Highlighted markets: Legal/regulatory services growth in line with broader legal market; M&A activity rebounded to $885B in Q1 2025, up 15% y-o-y, boosting Antitrust & Competition Economics. • Project examples: CRA economists assisted Microsoft in U.K. Competition and Market Authority investigation; Finance practice collaborated on multi-jurisdictional fraud investigation; Life Sciences practice focused on R&D pipeline, etc. • Team optimization: Restructuring charge of ~15 individuals, offset by reversal of noncash charges from performance awards.

During the first quarter, revenue increased by 5.9% year-over-year to $181.9 million, the highest quarterly revenue in the company's history. Broad-based contributions were seen with 5 practices growing year-over-year. Four practices - Energy, Finance, Intellectual Property, and Life Sciences - posted double-digit revenue growth, and the Antitrust & Competition Economics practice set a new quarterly revenue high. International operations led the way with nearly 20% year-over-year revenue growth. Revenue from legal and regulatory services increased by roughly 5%, in line with the broader legal market. The M&A market rebounded, reaching $885 billion in the first quarter of 2025, up 15% compared to year-ago levels, driving the strong performance of the Antitrust & Competition Economics practice.

• Reaffirmed full-year fiscal 2025 guidance on constant currency basis relative to fiscal 2024. • Expected revenue in range of $715M - $725M and non-GAAP EBITDA margin in range of 12% - 13%. • Noted uncertain global economic, business, and political conditions may impact the business.

• Uncertain global economic, business, and political conditions can be volatile and affect the business.

Q: Andrew Nicholas asked about April-to-date activity and its impact on guidance.

A: Paul Maleh said January was slow, but activity grew from February to March, and trends from March continued into April but it's too early to be certain.

Q: Andrew Nicholas asked about Life Sciences pipeline.

A: Paul Maleh said Life Sciences practice is doing well, with success geographically and across concentration areas, hoping momentum continues.

Q: Andrew Nicholas asked about headcount growth and retention.

A: Paul Maleh said headcount had a 5% year-over-year decrease, utilization improved, and talent outlays included retention efforts but no significant shift in office participation.

Q: Marc Riddick asked about April activity ties to external headlines and industry verticals.

A: Paul Maleh said hard to tie activity to specific headlines, all portfolio parts growing but at different rates, and no significant change in office return from clients.

Q: Kevin Steinke asked about restructuring.

A: Paul Maleh said restructuring impacted 15 individuals, not indicative of practice health, and done to optimize portfolio.

Q: Kevin Steinke asked about antitrust demand.

A: Paul Maleh praised Antitrust & Competition Economics practice for strong performance despite market conditions.

Q: Kevin Steinke asked about cross-practice collaboration.

A: Paul Maleh said collaboration is common but underreported, driven by bringing best talent to clients.