CRA International, Inc. (CRAI): BCG Matrix [Dec-2025 Updated]

You're seeking a clear-eyed view of CRA International, Inc. (CRAI)'s portfolio as of late 2025, and honestly, the Boston Consulting Group Matrix shows a firm expertly balancing a mature, cash-generative core with targeted, high-risk growth plays. We've mapped out how established practices like Antitrust are funding the firm's ambitions, while digital transformation efforts are the Stars chasing growth beyond the overall ~10% target, all while emerging bets in ESG hang in the balance as Question Marks. Keep reading to see precisely which business lines are the reliable engines and which ones demand an immediate 'invest or exit' decision for CRA International, Inc. (CRAI).

Background of CRA International, Inc. (CRAI)

You're looking to map out where CRA International, Inc. (CRAI) stands strategically, so let's first ground ourselves in what the company actually does and how it's been performing as we approach the end of 2025. CRA International, Inc., which you'll see referred to as CRAI, is a global firm providing specialized economic, financial, and management consulting services. Honestly, they make their living advising clients on complex matters related to litigation, regulatory proceedings, and general business strategy and performance improvement.

The firm, which started way back in 1965 and is based in Boston, Massachusetts, serves a wide array of industries, from financial services and healthcare to energy and technology. They offer deep expertise in areas like forensic accounting, intellectual property valuation, and environmental, social, and corporate governance (ESG) strategy. It's a knowledge-based business, so their people-the consultants-are the core asset, and you see that reflected in their focus on utilization rates and headcount growth.

The 2025 performance has been quite strong, building on a solid 2024 where revenue hit $687.41 million. For the current fiscal year 2025, management has been confident enough to raise its full-year revenue guidance twice, now projecting revenue between $740 million and $748 million. This reflects a very good run through the first three quarters; for instance, Q3 2025 revenue was $185.9 million, marking a 10.8% jump year-over-year.

When we look at which services are driving this momentum, a few practices stand out with double-digit revenue growth. You'll definitely want to track the Antitrust & Competition Economics practice, alongside Energy, Finance, and Intellectual Property. Plus, the international side of the business is really accelerating; international operations revenue surged by 30.3% year-over-year in the third quarter. To support this growth, the consultant headcount increased sequentially to 968 professionals by the end of Q3 2025.

From a shareholder perspective, CRAI has maintained a consistent capital return policy, showing a 9-year streak of increasing its dividend, recently lifting the quarterly payout to $0.57 per share. The projected profitability for the full year is also solid, with the non-GAAP EBITDA margin guidance set between 12.6% and 13.0%. So, you have a firm that is growing revenue consistently, seeing strong demand in specific, high-value consulting niches, and rewarding shareholders steadily. That's the setup for our matrix analysis.

CRA International, Inc. (CRAI) - BCG Matrix: Stars

You're looking at the business units within CRA International, Inc. (CRAI) that are currently dominating high-growth markets, which is exactly what the Stars quadrant is for. These are the leaders in their respective fields, but they still require significant cash infusion to maintain that lead and capture more of the expanding market.

The management consulting services, particularly those focused on digital and performance improvement, are showing strong momentum. While the overall Management Consulting services revenue increased by 8% year-over-year in Q3 2025, specific practices within this area are clearly outpacing that, signaling Star status. The firm's overall revenue growth in Q3 2025 was 10.82% year-over-year, reaching $185.89 million for the quarter, which supports the idea that key areas are driving growth above the firm's general target of $\sim \mathbf{10%.

The most prominent Stars are found in high-demand regulatory and litigation niches. The Antitrust & Competition Economics practice established a new high for quarterly revenue in Q3 2025, driven by supporting clients on high-profile mergers. This activity aligns with worldwide M&A totaling $3 trillion during the first 9 months of 2025. Similarly, the Intellectual Property practice was involved in a high-stakes patent dispute regarding mRNA COVID-19 vaccines, where CRA International, Inc. (CRAI)'s client is set to receive a payment of $740 million plus royalties. These specialized, complex areas are where the firm commands a high relative market share in a rapidly evolving landscape.

Continued investment is necessary to solidify market share in these fragmented, high-growth segments. The firm is actively adding talent; consultant headcount sequentially increased by 3.3% from Q2 2025 (from 937 to 968 consultants by the end of Q3 2025), and utilization stood at 77% for the quarter. This investment in human capital is critical to service demand, especially in areas like regulatory economics where expertise is paramount.

The international segment is a clear Star performer, with international revenue growth accelerating to 30.3% year-over-year in Q3 2025. This geographic expansion, coupled with strong practice performance, has led CRA International, Inc. (CRAI) to raise its full-year 2025 revenue guidance to a range of $740.0 million to $748.0 million. This sustained success in high-growth areas positions these segments to eventually transition into Cash Cows as market maturity slows the growth rate.

Here's a quick look at the practices driving this Star performance as of the Q3 2025 results:

• Antitrust & Competition Economics: Double-digit revenue growth.
• Intellectual Property: Double-digit revenue growth reported.
• Energy Practice: Supported infrastructure and digital projects.
• International Operations: Revenue grew 30.3% year-over-year.

The financial health supporting these Stars is evident in management's confidence, demonstrated by the 16% increase in the quarterly dividend to $0.57 per share, announced alongside the raised guidance. This signals strong current cash generation, even as cash is consumed by the necessary investments in talent and practice development.

The Legal and Regulatory services revenue, which encompasses many of these high-demand areas, grew by 11.5% year-over-year in Q3 2025. This segment is clearly operating in a high-growth market, demanding continued investment to maintain its leadership position against competitors in the business process outsourcing & consulting segment.

CRA International, Inc. (CRAI) - BCG Matrix: Cash Cows

You're analyzing CRA International, Inc. (CRAI) and see that the core, established practices are the engine room, generating the reliable funds the firm needs to chase riskier opportunities. These are your Cash Cows, and for CRA International, Inc., the Antitrust & Competition Economics practice is the prime example.

Antitrust & Competition: Market-leading, established practice with a strong reputation.

This practice is the bedrock of CRA International, Inc., representing approximately 45% of total revenue, making it the largest single area of focus for the firm. It consistently demonstrates market leadership, evidenced by establishing another new high for quarterly revenue in Q3 2025. The legal and regulatory consulting segment, which houses this practice, saw revenue increase by 11.5% year-over-year in the third quarter of fiscal 2025. This practice is definitely where competitive advantage has been achieved, as it continues to support clients on high-profile mergers, even as worldwide M&A activity totaled $3 trillion during the first nine months of 2025.

Here's a quick look at how this established practice compares to the broader market context, which helps define its Cash Cow status:

Generates substantial, stable cash flow from core, recurring legal and regulatory work.

The profitability from this high-share practice translates directly into firm-wide financial strength. For the full fiscal year 2025, CRA International, Inc. is guiding for a non-GAAP EBITDA margin in the range of 12.6% to 13%. This level of margin on a projected full-year revenue between $740 million and $748 million shows significant cash generation. Honestly, the firm is milking this well, as shown by the 16% increase in the quarterly dividend to $0.57 per share, which was announced following the Q3 2025 results. They ended Q3 2025 with $22.5 million in cash.

High relative market share in a mature, slower-growth economic consulting market.

The overall economic consulting sector is not seeing the hyper-growth of digital transformation consulting, which helps solidify the Cash Cow positioning for established areas like Antitrust. While the US Scientific & Economic Consulting market saw an estimated 1.9% boost in 2025, CRA International, Inc.'s core practice is outperforming that low-growth environment with its double-digit growth. This is the definition of a high-share leader in a mature space; they take the lion's share of the available, steady work.

Requires minimal reinvestment, funding the firm's growth initiatives defintely.

Because the market is mature, the need for massive promotional spending or new infrastructure build-out to capture market share is lower compared to a Question Mark. Instead, the focus is on efficiency. Consultant utilization for the quarter reached 77%, up from 76% in the prior year, showing they are efficiently deploying their existing expert base. The firm ended Q3 2025 with 968 consultants, a 3.3% sequential increase, suggesting measured, controlled investment to support the existing high-margin work rather than speculative hiring. The cash generated here is what funds the expansion in other areas.

• Q3 2025 Revenue: $185.89 million
• Nine Months 2025 Revenue: $554.62 million
• FY 2025 Non-GAAP EBITDA Margin Guidance: 12.6% to 13%
• Quarterly Dividend Per Share: $0.57

CRA International, Inc. (CRAI) - BCG Matrix: Dogs

You're looking at the parts of CRA International, Inc. (CRAI) that aren't driving the headlines, the units that are stuck in low-growth markets and have a small slice of the pie. These are the Dogs, and honestly, they need a hard look to see if they are worth the management attention they consume.

Legacy, highly commoditized expert witness services in non-core areas represent one area that often falls into this quadrant. While the overall Legal and Regulatory Services segment is a powerhouse, generating approximately 80% of consolidated revenues in fiscal 2024, the specific, less specialized expert witness work likely sits here. This contrasts sharply with practices like Antitrust & Competition Economics, which posted double-digit revenue growth in Q3 2025, or the Life Sciences practice, which is actively engaged in high-value matters like the mRNA COVID-19 vaccine patent dispute.

The issue isn't that these services lose money outright; Dogs frequently break even, neither earning nor consuming much cash. The problem is the opportunity cost. When you have a practice area that isn't growing at the company's overall pace-which saw revenue growth of 10.8% in Q3 2025-but still requires senior partner time for case management or business development, that time could be better spent on Stars or Question Marks.

Smaller, non-strategic geographic markets with limited growth potential are another prime candidate for the Dog classification. We see a clear concentration in the company's geographical revenue breakdown for the third quarter of fiscal 2025:

• United States revenue: $146.1 million for the quarter.
• United Kingdom revenue: $28.3 million for the quarter.
• Other regions revenue: Only $11.4 million for the quarter.

That $11.4 million from Other regions is a concrete number representing the smallest reported geographical segment. If this small base is also experiencing low growth-especially when compared to the international operations revenue surge of 30.3% year-over-year in Q3 2025-it fits the Dog profile perfectly. These smaller markets tie up resources for travel, compliance, and local business development with minimal expected return.

The concentration of success makes the underperformers stand out more starkly. The top three practices-Antitrust & Competition Economics, Life Sciences, and Forensic Services-account for about 75% of CRA International, Inc.'s total revenue. This means the remaining 25% of the business, which includes the Dogs, is spread thin across less impactful areas, often leading to low relative market share in those specific, slow-growth niches.

Here's a quick look at the geographical scale, which helps you see where the smallest units reside:

The $11.4 million segment is small enough to be a cash trap, consuming management time that could be better deployed elsewhere. For instance, the company ended Q3 2025 with 968 consultants, and every consultant hour is a finite resource.

Dogs are prime candidates for divestiture or significant restructuring to free up capital. Expensive turn-around plans usually don't help because the market itself is not growing. If a practice area or a small geographic office cannot demonstrate a clear path to becoming a Question Mark-by achieving higher growth or market penetration-the action is often to minimize exposure. This frees up capital, which CRA International, Inc. has shown a willingness to return to shareholders, having increased its quarterly dividend by 16% to $0.57 per share and spending $4.0 million on share repurchases in Q3 2025 alone.

CRA International, Inc. (CRAI) - BCG Matrix: Question Marks

You're looking at business units that are burning cash to capture a piece of a rapidly expanding market. For CRA International, Inc. (CRAI), the focus here is on newer, high-potential service lines that haven't yet achieved dominant market share.

Environmental, Social, and Governance (ESG) Consulting: This area is characterized by a high-growth market, but CRA International, Inc. is still building the necessary scale to compete effectively against established players. The overall company revenue growth provides context for the environment these practices operate in. For the nine months ended September 27, 2025, CRA International, Inc. generated sales of USD 554.62 million, up from USD 510.98 million a year ago. This environment supports aggressive investment in new capabilities like ESG.

Cybersecurity and Data Analytics Consulting: This represents an emerging practice area demanding significant capital and talent investment to establish a foothold. These units consume cash to build expertise and client bases, fitting the profile of a Question Mark. While specific revenue for this practice isn't segmented, the company's overall utilization rate in Q3 2025 was 77%, showing efficient use of the existing workforce, which must be expanded or retrained to meet the demands of these new, high-growth areas.

The core challenge for these Question Marks is the low current market share in a rapidly expanding market, demanding a clear 'invest or exit' decision. The company's performance in established high-growth areas shows the potential for success if investment is made. For instance, in the third quarter of fiscal 2025, four practices-Antitrust & Competition Economics, Energy, Finance, and Intellectual Property-posted double-digit revenue growth.

These units represent a high-risk, high-reward bet for future diversification and growth for CRA International, Inc. The need for heavy investment is clear, as these areas are expected to drive future revenue streams if they can quickly convert market opportunity into market share.

Key Financial Context for Investment Decisions (As of Q3 2025 and Guidance):

The strategy for these Question Marks hinges on rapid scaling, as the alternative is stagnation, turning them into Dogs. The investment required is substantial, often involving hiring specialized talent or acquiring smaller firms to gain immediate expertise and market presence. The company's overall headcount decreased by 1.0% year over year as of Q3 2025, suggesting that growth in these new areas must come from targeted hiring or reallocation, which consumes cash without immediate returns.

Strategic considerations for these Question Marks:

• Investment Focus: Heavy capital allocation to build domain expertise.
• Market Share Goal: Rapidly increase penetration in growing sectors.
• Risk Profile: High-risk due to uncertain adoption rates.
• Reward Potential: Conversion into future Stars.
• Exit Threshold: Need for quick market share gains or divestiture.

The cash consumption is evident when comparing the growth in revenue to the growth in net income for the quarter. Q3 2025 revenue grew 10.8% year over year to $185.9 million, but Net Income only increased 0.3% year over year to $11.5 million. This disparity suggests significant operating costs, likely including investment in areas like ESG and Cybersecurity, which are not yet operating at peak profitability.