Company: CRAI
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001053706-25-000007
Chunk: 58

Company: CRA INTERNATIONAL, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1A
Chunk 58
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 and the internal professional resources of existing and potential clients. Many of our competitors have national or international reputations, as well as significantly greater personnel, financial, managerial, technical, and marketing resources than we do, which could enhance their ability to respond more quickly to technological changes, finance acquisitions, and fund internal growth. Some of our competitors also have a significantly broader geographic presence and significantly more resources than we do.

Risks Related to Our International Operations

Our international operations create risks

Our international operations carry financial and business risks, including:

•adverse social, political and economic conditions, such as inflation, rising interest rates and risk of global or regional recession;

•unexpected changes in trading policies, regulatory requirements, tariffs, and other barriers;

•restrictions on the repatriation of earnings;

•potentially adverse tax consequences, such as changes in tax laws and statutory tax rates;

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•the impact of differences in the governmental, legal and regulatory environment in foreign jurisdictions, as well as U.S. laws and regulations related to our foreign operations;

•political developments, geopolitical unrest or other conflicts or natural disasters in foreign nations; and

•civil disturbances or other catastrophic events that reduce business activity.

If our international revenues increase relative to our total revenues, the above listed factors could have a more pronounced effect on our operating results.

Fluctuations in currency exchange rates could adversely affect our operations

We conduct our business in the Americas, Europe, and Australia, and the global scope of our business exposes us to risk of fluctuations in foreign currency markets. Specifically, our results of operations are subject to fluctuations primarily in the British Pound and Euro against the U.S. Dollar as well as the Euro against the British Pound. The fluctuation in foreign currency markets can both increase and decrease our overall revenue and expenses for any fiscal period, and therefore has a resulting negative impact on our reported results of operations and on our ability to predict our future results and earnings accurately. Additionally, global economic events have caused and may continue to cause significant volatility in currency exchange rate fluctuations. Revenue generated from our U.K.-based operations was approximately 13% (which includes currency exchange effects) of our total revenues for the year ended December 28, 2024. We currently do not hedge our exposure to current foreign currency exchange risks by engaging in foreign exchange hedging transactions, though we may do so in the future.

Risks Related to Our Indebtedness

Our debt obligations may adversely impact our financial performance

We rely on our cash and cash equivalents, cash flows from