Company: CRAI
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001053706-25-000029
Chunk: 34

Company: CRA INTERNATIONAL, INC.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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, 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 $16.3 million, or 14.1%, to $131.5 million for the third quarter of fiscal 2025 from $115.2 million for the third quarter of fiscal 2024. The increase in costs of services was due to an increase in employee and incentive compensation of $11.8 million, an increase in forgivable loan amortization of $2.3 million, and an increase in client reimbursable indirect project expenses of $2.2 million. As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 70.7% for the third quarter of fiscal 2025 from 68.7% for the third quarter of fiscal 2024.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $2.4 million, or 7.7%, to $33.7 million for the third quarter of fiscal 2025 from $31.3 million for the third quarter of fiscal 2024. Within this category of expenses, there was a $1.2 million increase in legal and professional service fees, a $0.7 million increase in employee and incentive compensation, a $0.6 million increase in travel and entertainment, a $0.3 million increase in rent expense, a $0.2 million increase in miscellaneous and other fees, partially offset by a $0.6 million decrease in commissions to non-employee experts for the third quarter of fiscal 2025 as compared to the third quarter of fiscal 2024.

As a percentage of revenues, selling, general and administrative expenses decreased to 18.1% for the third quarter of fiscal 2025 from 18.6% for the third quarter of fiscal 2024. Commissions to our non-employee experts decreased to 1.8% of revenues for the third quarter of fiscal 2025 compared to 2.4% of revenues for the third quarter of fiscal 2024.

Provision for Income Taxes. The income tax provision was $4.8 million and the ETR was 29.3% for the third quarter of fiscal 2025 compared to $4.6 million and 28.7% for the third quarter of fiscal 2024. The ETR for the third quarter of fiscal