CRA International (CRAI) Stock Forecast & Price Target

CRA International Inc. reported a robust 10.8% year-over-year revenue growth in Q3/25, achieving $185.9 million, which surpassed both internal estimates and market consensus. This growth was driven by a strong performance in the legal and regulatory consulting segments, particularly with four practices, including Antitrust & Competition Economics, experiencing double-digit growth. Additionally, the company's non-GAAP EBITDA margin reached a record 13.2% for fiscal year 2024, bolstered by favorable global M&A trends and a significant increase in legal activity, further indicating a positive trajectory for future profitability.

CRA International's consultant headcount experienced a slight year-over-year decline of 1.0% to 968, indicative of ongoing portfolio optimization efforts, which may suggest challenges in maintaining workforce size amidst shifting business needs. The heightened regulatory scrutiny in Europe could hinder the firm's ability to expand its services or secure new contracts, impacting overall growth potential. Although the company achieved a record non-GAAP EBITDA margin of 13.2% in FY/24, this may not be sufficient to offset concerns regarding client demand and regulatory challenges that could adversely affect future performance.