Charles River Stock Rises Following Q4 Earnings and Revenue Outperformance

Charles River Associates Delivers Strong Q4 2025 Performance

Charles River Associates (CRAI) posted robust results for the fourth quarter of 2025, surpassing both earnings and revenue expectations set by Zacks Consensus Estimate. Additionally, the board approved an extra $55 million for share repurchases.

These positive financial results, along with the shareholder-friendly move, were well received by the market, leading to a 3.1% increase in the company's stock price since the earnings announcement on February 26.

Quarterly Highlights

• Earnings per share reached $2.06, slightly ahead of estimates and up 1.5% from the same period last year.
• Total revenue came in at $197 million, exceeding expectations by 3.7% and marking an 11.6% year-over-year increase.

Price, Consensus, and EPS Trends

Additional Q4 Details

• Utilization rate stood at 78%.
• Employee count increased by 1.4% compared to the previous year.
• Non-GAAP EBITDA was stable at $24.4 million.
• Non-GAAP EBITDA margin declined by 150 basis points year-over-year to 12.4%, slightly below the projected 12.7%.

Balance Sheet and Cash Flow Overview

At the end of Q4 2025, Charles River Associates reported $18.21 million in cash and cash equivalents, down from $22.5 million at the end of the prior quarter. The company generated $60 million in operating cash flow and distributed $3.73 million in dividends during the quarter.

Outlook for 2026

• Revenue guidance for 2026 (constant currency) is projected between $785 million and $805 million.
• The company anticipates a non-GAAP EBITDA margin in the 12% to 13% range.

Currently, CRAI holds a Zacks Rank #4 (Sell).

Recent Earnings Reports

• Waste Connections, Inc. (WCN) delivered strong Q4 2025 results, with adjusted earnings of $1.29 per share (excluding $0.28 in non-recurring items), narrowly beating estimates and up 11.2% year-over-year. Revenue matched expectations at $2.4 billion, a 5% increase from the prior year.
• Equifax Inc. (EFX) also reported solid Q4 2025 results. Adjusted earnings were $2.09 per share, topping estimates by 2.5% but down 1.4% year-over-year. Revenue reached $1.6 billion, exceeding estimates by 1.3% and up 9.2% from a year ago.

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This article was first published by Zacks Investment Research.

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