Company: CRAI
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001053706-25-000029
Chunk: 79

Company: CRA INTERNATIONAL, INC.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 79
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 fixed-price projects depends largely on the proportion of our revenues derived from our management consulting business, which typically has a higher concentration of fixed-price service contracts.

Costs of Services (exclusive of depreciation and amortization). Costs of services (exclusive of depreciation and amortization) increased by $21.0 million, or 5.8%, to $380.4 million for the fiscal year-to-date period ended September 27, 2025 from $359.4 million for the fiscal year-to-date period ended September 28, 2024. The increase in costs of services was due to an increase of $22.5 million in employee compensation and fringe benefit costs, an increase of $5.4 million in client reimbursable indirect project expenses, partially offset by a decrease in forgivable loan amortization of $6.9 million. As a percentage of revenues, costs of services (exclusive of depreciation and amortization) decreased to 68.6% for the fiscal year-to-date period ended September 27, 2025 from 70.3% for the fiscal year-to-date period ended September 28, 2024.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $7.5 million, or 8.0%, to $101.3 million for the fiscal year-to-date period ended September 27, 2025 from $93.8 million for the fiscal year-to-date period ended September 28, 2024. Within this category of expenses, there was a $2.8 million increase in legal and professional service fees, $1.4 million increase in rent expense, $1.2 million increase in employee compensation and fringe benefit costs, a $1.3 million increase in travel and entertainment expense, and a $0.8 million increase in miscellaneous and other fees for the fiscal year-to-date period ended September 27, 2025 as compared to the fiscal year-to-date period ended September 28, 2024.

As a percentage of revenues, selling, general and administrative expenses decreased to 18.3% for the fiscal year-to-date period ended September 27, 2025 from 18.4% for the fiscal year-to-date period ended September 28, 2024. Commissions to our non-employee experts decreased to 2.1% of revenues for the fiscal year-to-date period ended September 27, 2025 compared to 2.3% of revenues for the fiscal year-to-date period ended