Focus on margin recovery and cost control; the 500bps operating margin drop and negative operating cash flow are concerning. Reaffirmed guidance suggests management expects stabilization, but high debt and restructuring costs bear watching. Next catalyst: Q2 earnings and any guidance revision.
Price Chart
Executive Summary
CRA reported record Q1 2026 revenue of $201M (+10.5% YoY), but GAAP net income fell 38.2% to $11.1M and GAAP EPS dropped 35.5% to $1.69. Non-GAAP EPS of $1.99 missed consensus by 1.5%. Operating margin compressed 500bps to 9.0% due to higher cost of services and restructuring charges. Guidance reaffirmed.
Key Financial Metrics
Key Facts
- Q1 2026 revenue of $201.0M, up 10.5% YoY, a record quarter.
- GAAP EPS $1.69 vs $2.62 YoY (-35.5%); Non-GAAP EPS $1.99 vs $2.22 YoY (-10.4%).
- Non-GAAP EPS missed analyst consensus of $2.02 by $0.03 (-1.5%).
- Operating margin fell to 9.0% from 14.0% YoY; non-GAAP operating margin 9.8% from 11.8%.
- Net cash used in operations was $113.9M (driven by working capital and forgivable loan advances).
- Borrowings on revolver increased to $192M from $34M at year-end.
- Repurchased 116,000 shares for $21.5M; quarterly dividend unchanged at $0.57/share.
- FY2026 guidance reaffirmed: revenue $785M-$805M, non-GAAP EBITDA margin 12%-13% (constant currency).
Financial Impact
Record revenue offset by significant earnings decline and margin compression; GAAP net income down $6.9M YoY.
Risk Factors
- Continued margin compression if cost pressures persist or revenue growth slows.
- High debt load ($192M revolver) and negative free cash flow strain balance sheet.
- Restructuring costs may not fully address operational inefficiencies.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001053706-26-000013 |
| Document: craiq1-20268xkexx991xpress.htm | 0001053706-26-000013 |
| Document: crai-20260507.htm | 0001053706-26-000013 |
| Document: craiq1-20268xkexx993xdivid.htm | 0001053706-26-000013 |
| Document: 0001053706-26-000013-index-headers.html | 0001053706-26-000013 |
| Document: 0001053706-26-000013-index.html | 0001053706-26-000013 |
| Document: 0001053706-26-000013.txt | 0001053706-26-000013 |
| 8-K Data (Synthetic) | 0001053706-26-000013 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 2, 2026 7w ago | Insider Cluster | $172.60 | awaiting T+60 | — | $193.59 (+12.16%) |
May 7, 2026 24w ago | 8-K | $139.12 $180.23 | ▲ +29.55% | ▲ +25.72% | $193.59 (+39.15%) |
Apr 24, 2026 26w ago | DEFA14A | $151.46 $168.51 | ▲ +11.26% | ▲ +6.48% | $193.59 (+27.82%) |
Apr 6, 2026 29w ago | Court Ruling | $162.91 $146.31 | ▼ −10.19% | ▼ −23.46% | $193.59 (+18.83%) |
Mar 4, 2026 33w ago | Insider Cluster | $182.22 $148.35 | ▼ −18.59% | ▼ −28.67% | $193.59 (+6.24%) |
Feb 26, 2026 34w ago | 8-K | $166.85 $147.39 | ▼ −11.66% | ▼ −19.41% | $193.59 (+16.03%) |
US Market Status
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