CRA International (CRAI) Small-Cap Virtual Conference summary

Business overview and strategy

• Operates as a multinational consultancy with over 20 offices in eight countries, focusing on legal/regulatory and management consulting lines.

• Legal and regulatory consulting accounts for about 80% of revenue, with management consulting making up the remaining 20%.

• Antitrust & Competition Economics is the largest practice, representing roughly 45% of total revenue.

• The firm has worked with 88 of the Fortune 100 companies and 98 of the top 100 law firms in the past two years.

• Less than 5% voluntary turnover among top revenue-generating employees over five years, supporting stable growth.

Financial performance and capital allocation

• Achieved consistent top-line growth of 9%-10% annually over the past decade, with profits growing at a faster rate.

• Growth is entirely funded by internal cash flow, with no debt incurred.

• Over the last five years, repurchased $180 million in stock and maintained a growing dividend.

• Stock repurchases account for about 80% of capital returned to shareholders; share count reduced by over 15% in five years.

• Talent investments represent 46% of capital use, generating over $240 million in incremental revenue.

Market drivers and demand trends

• Eight consecutive years of record top-line growth, outpacing market growth in key legal and regulatory segments.

• M&A activity has resurged, with increased deal volume and complexity driving demand for consulting services.

• Regulatory scrutiny remains high in both the U.S. and Europe, with states increasingly involved in deal reviews.

• International growth is led by Antitrust & Competition Economics and Life Sciences practices, especially in Europe.

• Energy practice has seen a surge in demand due to rapid expansion of data centers and related utility investments.