CRA INTERNATIONAL, INC.

Previous wording

Revenues. Revenues increased by $23.9 million, or 12.8%, to $210.8 million for the second quarter of fiscal 2026 from $186.9 million for the second quarter of fiscal 2025. Utilization increased to 77% for the second quarter of fiscal 2026 from 76% for the second quarter of fiscal 2025, while consultant headcount increased to 968 at the end of the second quarter of fiscal 2026 from 937 at the end of the second quarter of fiscal 2025.

Current wording

Revenues. Revenues increased by $29.0 million, or 15.6%, to $214.9 million for the third quarter of fiscal 2026 from $185.9 million for the third quarter of fiscal 2025. Utilization increased to 78% for the third quarter of fiscal 2026 from 77% for the third quarter of fiscal 2025, while consultant headcount increased to 1,028 at the end of the third quarter of fiscal 2026 from 968 at the end of the third quarter of fiscal 2025.

Previous wording

Overall, revenues outside of the U.S. represented approximately 22% and 19% of net revenues for the second quarter of fiscal 2026 and fiscal 2025, respectively. Revenues derived from fixed-price projects increased to 23% of net revenues for the second quarter of fiscal 2026 compared to 16% of net revenues for the second quarter of fiscal 2025. The percentage of revenue derived from 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.

Current wording

Overall, revenues outside of the U.S. represented approximately 20% and 21% of net revenues for the third quarter of fiscal 2026 and fiscal 2025, respectively. Revenues derived from fixed-price projects increased to 21% of net revenues for the third quarter of fiscal 2026 compared to 17% of net revenues for the third quarter of fiscal 2025. The percentage of revenue derived from 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.

Previous wording

Costs of Services (exclusive of depreciation and amorti zation). Costs of services (exclusive of depreciation and amortization) increased by $20.2 million, or 15.7%, to $148.7 million for the second quarter of fiscal 2026 from $128.5 million for the second quarter of fiscal 2025. The increase in costs of services was due to an increase in employee and incentive compensation of $15.1 million, an increase in forgivable loan amortization, including performance award amortization of $4.7 million, and an increase in client reimbursable expenses of $0.5 million, partially offset by a decrease of $0.1 million in indirect project expenses. As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 70.6% for the second quarter of fiscal 2026 from 68.8% for the second quarter of fiscal 2025.

Current wording

Costs of Services (exclusive of depreciation and amorti zation). Costs of services (exclusive of depreciation and amortization) increased by $20.9 million, or 15.9%, to $152.4 million for the third quarter of fiscal 2026 from $131.5 million for the third quarter of fiscal 2025. The increase in costs of services was due to an increase in employee and incentive compensation of $14.2 million, an increase in forgivable loan amortization, including performance award amortization of $3.6 million, and an increase in client reimbursable expenses of $3.4 million, partially offset by a decrease of $0.1 million in stock compensation and a decrease of $0.2 million in indirect project expenses. As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 70.9% for the third quarter of fiscal 2026 from 70.7% for the third quarter of fiscal 2025.

Previous wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $0.2 million, or 0.6%, to $35.3 million for the second quarter of fiscal 2026 from $35.1 million for the second quarter of fiscal 2025. Within this category of expenses, there was a $2.2 million increase in employee and incentive compensation and a $1.1 million increase in software subscriptions and data services, partially offset by a $1.9 million decrease in commissions to non-employee experts, a $0.7 million decrease in miscellaneous and other fees, and a $0.5 million decrease in travel and entertainment for the second quarter of fiscal 2026 as compared to the second quarter of fiscal 2025.

Current wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $1.7 million, or 5.0%, to $35.4 million for the third quarter of fiscal 2026 from $33.7 million for the third quarter of fiscal 2025. Within this category of expenses, there was a $0.8 million increase in employee and incentive compensation, a $0.7 million increase in software subscriptions and data services, a $0.5 million increase in travel and entertainment, a $0.1 million increase in rent expense, and a $0.1 million increase in legal and professional services, partially offset by a $0.1 million decrease in bad debt expense, a $0.2 million decrease in training and marketing expenses and a $0.2 million decrease in miscellaneous and other fees for the third quarter of fiscal 2026 as compared to the third quarter of fiscal 2025.

Previous wording

As a percentage of revenues, selling, general and administrative expenses decreased to 16.7% for the second quarter of fiscal 2026 from 18.8% for the second quarter of fiscal 2025. Commissions to our non-employee experts decreased to 1.3% of revenues for the second quarter of fiscal 2026 compared to 2.4% of revenues for the second quarter of fiscal 2025.

Current wording

As a percentage of revenues, selling, general and administrative expenses decreased to 16.5% for the third quarter of fiscal 2026 from 18.1% for the third quarter of fiscal 2025. Commissions to our non-employee experts decreased to 1.6% of revenues for the third quarter of fiscal 2026 compared to 1.8% of revenues for the third quarter of fiscal 2025.

Previous wording

Provision for Income Taxes. The income tax provision was $6.6 million and the ETR was 32.9% for the second quarter of fiscal 2026 compared to $5.0 million and 29.2% for the second quarter of fiscal 2025. The ETR for the fiscal quarter ended July 4, 2026 was higher than the fiscal quarter ended June 28, 2025 primarily due to an increase in nondeductible executive compensation partially offset by a remeasu rement of deferred tax assets related to changes in current-year state apportionment. The ETR for the second quarters of fiscal 2026 and 2025 were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, partially offset by the tax benefit related to share-based compensation and the Foreign-Derived Deduction Eligible Income deduction. Specific to the current quarter, an additional offset relates to the remeasurement of deferred tax assets related to changes in current-year state apportionment.

Current wording

Provision for Income Taxes. The income tax provision was $7.4 million and the ETR was 34.8% for the third quarter of fiscal 2026 compared to $4.8 million and 29.3% for the third quarter of fiscal 2025. The ETR for the fiscal quarter ended October 3, 2026 was higher than the fiscal quarter ended September 27, 2025 primarily due to an increase in nondeductible executive compensation partially offset by a remeasurement of deferred tax assets related to changes in current-year state apportionment. The ETR for the third quarters of fiscal 2026 and 2025 were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, and the remeasurement of deferred tax assets related to changes in current-year state apportionment, partially offset by the tax benefit related to share-based compensation and the Foreign-Derived Deduction Eligible Income deduction.

Previous wording

Net Income. Net income increased to $13.5 million for the second quarter of fiscal 2026 from $12.1 million for the second quarter of fiscal 2025. The net income per diluted share was $2.10 per share for the second quarter of fiscal 2026, compared to $1.79 for the second quarter of fiscal 2025. Weighted average diluted shares outstanding decreased by approximately 346,000 shares to approximately 6,407,000 shares for the second quarter of fiscal 2026 from approximately 6,753,000 shares for the second quarter of fiscal 2025. The decrease in weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since June 28, 2025, offset in part by the vesting of shares of restricted stock and time-vesting restricted stock units since June 28, 2025.

Current wording

Net Income. Net income increased to $13.9 million for the third quarter of fiscal 2026 from $11.5 million for the third quarter of fiscal 2025. The net income per diluted share was $2.20 per share for the third quarter of fiscal 2026, compared to $1.73 for the third quarter of fiscal 2025. Weighted average diluted shares outstanding decreased by approximately 294,000 shares to approximately 6,327,000 shares for the third quarter of fiscal 2026 from approximately 6,621,000 shares for the third quarter of fiscal 2025. The decrease in weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since September 27, 2025, offset in part by the vesting of shares of restricted stock and time-vesting restricted stock units since September 27, 2025.

Previous wording

Revenues. Revenues increased by $43.1 million, or 11.7%, to $411.8 million for the fiscal year-to-date period ended July 4, 2026 from $368.7 million for the fiscal year-to-date period ended June 28, 2025. Utilization increased to 77% for the fiscal year-to-date period ended July 4, 2026 from 76% for the fiscal year-to-date period ended June 28, 2025, while consultant headcount increased from 937 at the end of the second quarter of fiscal 2025 to 968 at the end of the second quarter of fiscal 2026.

Current wording

Revenues. Revenues increased by $72.1 million, or 13.0%, to $626.7 million for the fiscal year-to-date period ended October 3, 2026 from $554.6 million for the fiscal year-to-date period ended September 27, 2025. Utilization increased to 78% for the fiscal year-to-date period ended October 3, 2026 from 76% for the fiscal year-to-date period ended September 27, 2025, while consultant headcount increased from 968 at the end of the third quarter of fiscal 2025 to 1,028 at the end of the third quarter of fiscal 2026.

Previous wording

Overall, revenues outside of the U.S. represented approximately 21% and 18% of net revenues for the fiscal year-to-date period ended July 4, 2026 and June 28, 2025, respectively. Revenues derived from fixed-price projects increased to 20% of net revenues for the fiscal year-to-date period ended July 4, 2026 compared to 16% of net revenues for the fiscal year-to-date period ended June 28, 2025. The percentage of revenue derived from 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.

Current wording

Overall, revenues outside of the U.S. represented approximately 21% and 19% of net revenues for the fiscal year-to-date period ended October 3, 2026 and September 27, 2025, respectively. Revenues derived from fixed-price projects increased to 21% of net revenues for the fiscal year-to-date period ended October 3, 2026 compared to 16% of net revenues for the fiscal year-to-date period ended September 27, 2025. The percentage of revenue derived from 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.

Previous wording

Costs of Services (exclusive of depreciation and amortization). Costs of services (exclusive of depreciation and amortization) increased by $44.9 million, or 18.0%, to $293.8 million for the fiscal year-to-date period ended July 4, 2026 from $248.9 million for the fiscal year-to-date period ended June 28, 2025. The increase in costs of services was due to an increase of $27.1 million in employee compensation and fringe benefit costs, an increase in forgivable loan amortization of $14.8 million, and an increase of $3.0 million in client reimbursable expenses. As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 71.3% for the fiscal year-to-date period ended July 4, 2026 from 67.5% for the fiscal year-to-date period ended June 28, 2025.

Current wording

Costs of Services (exclusive of depreciation and amortization). Costs of services (exclusive of depreciation and amortization) increased by $65.7 million, or 17.3%, to $446.1 million for the fiscal year-to-date period ended October 3, 2026 from $380.4 million for the fiscal year-to-date period ended September 27, 2025. The increase in costs of services was due to an increase of $40.9 million in employee compensation and fringe benefit costs, an increase in forgivable loan amortization of $18.4 million, and an increase of $6.5 million in client reimbursable expenses. As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 71.2% for the fiscal year-to-date period ended October 3, 2026 from 68.6% for the fiscal year-to-date period ended September 27, 2025.

Previous wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $2.2 million, or 3.3%, to $69.8 million for the fiscal year-to-date period ended July 4, 2026 from $67.6 million for the fiscal year-to-date period ended June 28, 2025. Within this category of expenses, there was a $3.1 million increase in employee compensation and fringe benefit costs, a $1.8 million increase in software subscriptions and data services, a $0.7 million increase in legal and professional service fees, a $0.3 million increase in rent expense, and a $0.3 million increase in travel and entertainment expense, partially offset by a $2.7 million decrease in commissions to non-employee experts, and a $1.3 million decrease in miscellaneous and other fees for the fiscal year-to-date period ended July 4, 2026 as compared to the fiscal year-to-date period ended June 28, 2025.

Current wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $3.9 million, or 3.8%, to $105.2 million for the fiscal year-to-date period ended October 3, 2026 from $101.3 million for the fiscal year-to-date period ended September 27, 2025. Within this category of expenses, there was a $3.9 million increase in employee compensation and fringe benefit costs, a $2.5 million increase in software subscriptions and data services, a $1.0 million increase in legal and professional service fees, a $0.8 million increase in travel and entertainment expense, and a $0.2 million increase in rent expense, partially offset by a $0.4 million decrease in training and marketing expenses, a $0.7 million decrease in miscellaneous and other fees, a $0.8 million decrease in bad debt expense, and a $2.6 million decrease in commissions to non-employee experts for the fiscal year-to-date period ended October 3, 2026 as compared to the fiscal year-to-date period ended September 27, 2025.

Previous wording

As a percentage of revenues, selling, general and administrative expenses decreased to 16.9% for the fiscal year-to-date period ended July 4, 2026 from 18.3% for the fiscal year-to-date period ended June 28, 2025. Commissions to our non-employee experts decreased to 1.4% of revenues for the fiscal year-to-date period ended July 4, 2026 compared to 2.3% of revenues for the fiscal year-to-date period ended June 28, 2025.

Current wording

As a percentage of revenues, selling, general and administrative expenses decreased to 16.8% for the fiscal year-to-date period ended October 3, 2026 from 18.3% for the fiscal year-to-date period ended September 27, 2025. Commissions to our non-employee experts decreased to 1.4% of revenues for the fiscal year-to-date period ended October 3, 2026 compared to 2.1% of revenues for the fiscal year-to-date period ended September 27, 2025.

Previous wording

Provision for Income Taxes. The income tax provision was $12.9 million and the ETR was 34.3% for the fiscal year-to-date period ended July 4, 2026, compared to $11.6 million and 27.9% for the fiscal year-to-date period ended June 28, 2025. The ETR for the fiscal year-to-date period ended July 4, 2026 was higher than the fiscal year-to-date period ended June 28, 2025 primarily due to an increase in nondeductible executive compensation, the recording of a valuation allowance in a foreign jurisdiction, and a decrease in the tax benefit related to share-based compensation. The increase was partially offset due to the remeasurement of deferred tax assets related to changes in current-year state apportionment and a decrease to a prior year tax reserve. The ETR for the current and prior fiscal year-to-date periods were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, partially offset by the tax benefit related to share-based compensation and the Foreign-Derived Deduction Eligible Income deduction. Specific to the current fiscal year-to-date period, the ETR was also higher due to the recording of a valuation allowance in a foreign jurisdiction, partially offset by a remeasurement of deferred tax assets related to changes in current-year state apportionment and a decrease to a prior year tax reserve.

Current wording

Provision for Income Taxes. The income tax provision was$20.3 million and the ETR was 34.5% for the fiscal year-to-date period ended October 3, 2026, compared to $16.4 million and 28.3% for the fiscal year-to-date period ended September 27, 2025. The ETR for the fiscal year-to-date period ended October 3, 2026 was higher than the fiscal year-to-date period ended September 27, 2025 primarily due to an increase in nondeductible executive compensation, the recording of a valuation allowance in a foreign jurisdiction, and a decrease in the tax benefit related to share-based compensation. The increase was partially offset by a remeasurement of deferred tax assets related to changes in current-year state apportionment and a decrease to a prior year tax reserve. The ETR for the current and prior fiscal year-to-date periods were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, partially offset by the tax benefit related to share-based compensation and the Foreign-Derived Deduction Eligible Income deduction. Specific to the current fiscal year-to-date period, the ETR was also higher due to the recording of a valuation allowance in a foreign jurisdiction, partially offset by a remeasurement of deferred tax assets related to changes in current-year state apportionment and a decrease to a prior year tax reserve.

Previous wording

Net Income. Net income decreased by $5.5 million to $24.6 million for the fiscal year-to-date period ended July 4, 2026 from $30.1 million for the fiscal year-to-date period ended June 28, 2025. The diluted net income per share was $3.79 for the fiscal year-to-date period ended July 4, 2026, compared to diluted net income per share of $4.42 for the fiscal year-to-date period ended June 28, 2025. Weighted average diluted shares outstanding decreased by approximately 309,000 shares to approximately 6,498,000 shares for the fiscal year-to-date period ended July 4, 2026 from approximately 6,807,000 shares for the fiscal year-to-date period ended June 28, 2025. The decrease in weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since June 28, 2025, offset in part by the vesting of shares of restricted stock and time-vesting restricted stock units since June 28, 2025.

Current wording

Net Income. Net income decreased by $3.1 million to $38.5 million for the fiscal year-to-date period ended October 3, 2026 from $41.6 million for the fiscal year-to-date period ended September 27, 2025. The diluted net income per share was $5.98 for the fiscal year-to-date period ended October 3, 2026, compared to diluted net income per share of $6.16 for the fiscal year-to-date period ended September 27, 2025. Weighted average diluted shares outstanding decreased by approximately 304,000 shares to approximately 6,441,000 shares for the fiscal year-to-date period ended October 3, 2026 from approximately 6,745,000 shares for the fiscal year-to-date period ended September 27, 2025. The decrease in weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since September 27, 2025, offset in part by the vesting of shares of restricted stock and time-vesting restricted stock units since September 27, 2025.

Previous wording

We believe that our current cash, cash equivalents, cash generated from operations, and amounts available under our revolving credit facility will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months. As of July 4, 2026, we had $21.4 million of cash and cash equivalents and $77.3 million of borrowing capacity under our revolving credit facility.

Current wording

We believe that our current cash, cash equivalents, cash generated from operations, and amounts available under our revolving credit facility will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months. As of October 3, 2026, we had $20.4 million of cash and cash equivalents and $171.9 million of borrowing capacity under our revolving credit facility.

Previous wording

General. During the fiscal year-to-date period ended July 4, 2026, cash and cash equivalents increased by $3.2 million. We completed the period with cash and cash equivalents of $21.4 million. The principal drivers of the increase in cash and cash equivalents were net borrowings of $185.0 million, offset by the payment of a significant portion of our fiscal 2025 performance bonuses in the first quarter of fiscal 2026, forgivable loan advances, repurchase of shares, and the payment of dividends.

Current wording

General. During the fiscal year-to-date period ended October 3, 2026, cash and cash equivalents increased by $2.2 million. We completed the period with cash and cash equivalents of $20.4 million. The principal drivers of the increase in cash and cash equivalents were net borrowings of $116.0 million, offset by the payment of a significant portion of our fiscal 2025 performance bonuses in the first quarter of fiscal 2026, forgivable loan advances, repurchase of shares, and the payment of dividends.

Previous wording

At July 4, 2026, $6.4 million of our cash and cash equivalents was held within the U.S. We have sufficient sources of liquidity in the U.S., including cash flow from operations and availability on our revolving credit facility to fund U.S. operations for the next 12 months without the need to repatriate funds from our foreign subsidiaries.

Current wording

At October 3, 2026, $5.7 million of our cash and cash equivalents was held within the U.S. We have sufficient sources of liquidity in the U.S., including cash flow from operations and availability on our revolving credit facility to fund U.S. operations for the next 12 months without the need to repatriate funds from our foreign subsidiaries.

Previous wording

Sources and Uses of Cash. During the fiscal year-to-date period ended July 4, 2026, net cash used in operating activities was $118.3 million. Net income was $24.6 million for the fiscal year-to-date period ended July 4, 2026. Uses of cash for operating activities included a decrease in accounts payable, accrued expenses, and other liabilities of $77.9 million, primarily due to the payment of a significant portion of our fiscal 2025 performance bonuses, an increase in forgivable loans for the period of $58.3 million which was primarily driven by $80.4 million of forgivable loan issuances, net of repayments, offset by $22.1 million of forgivable loan amortization, a decrease of $14.7 million in accounts receivable, and a $9.2 million decrease in lease liabilities. Partially offsetting these uses of cash was an increase of $38.3 million in unbilled receivables, an increase of $6.4 million in incentive cash awards payable, and a $1.4 million increase in prepaid expenses and other current assets, and other assets.

Current wording

Sources and Uses of Cash. During the fiscal year-to-date period ended October 3, 2026, net cash used in operating activities was $43.9 million. Net income was $38.5 million for the fiscal year-to-date period ended October 3, 2026. Uses of cash for operating activities included an increase in forgivable loans for the period of $46.7 million which was primarily driven by $80.9 million of forgivable loan issuances, net of repayments, offset by $34.2 million of forgivable loan amortization, increase of $49.3 million in unbilled receivables, a decrease in accounts payable, accrued expenses, and other liabilities of $14.8 million, primarily due to the payment of a significant portion of our fiscal 2025 performance bonuses, a $14.0 million decrease in lease liabilities, and a $4.7 million increase in prepaid expenses and other current assets, and other assets. Partially offsetting these uses of cash was an increase of $9.8 million in incentive cash awards payable and a decrease of $6.8 million in accounts receivable.

Previous wording

Non-cash items included right-of-use amortization of $7.4 million, depreciation and amortization expense of $6.7 million, share-based compensation expenses of $3.8 million, and deferred income taxes of $3.2 million.

Current wording

Non-cash items included right-of-use amortization of $11.2 million, depreciation and amortization expense of $9.9 million, share-based compensation expenses of $5.2 million, and deferred income taxes of $4.4 million.

Previous wording

During the fiscal year-to-date period ended July 4, 2026, net cash used in investing activities was $4.3 million, which consisted of capital expenditures, primarily related to computer equipment, software and furniture.

Current wording

During the fiscal year-to-date period ended October 3, 2026, net cash used in investing activities was $5.5 million, which consisted of capital expenditures, primarily related to computer equipment, software and furniture.

Previous wording

During the fiscal year-to-date period ended July 4, 2026, net cash provided by financing activities was $126.2 million, primarily as a result of net borrowings under the revolving credit facility of $185.0 million. Offsetting this increase in cash provided by financing activities were repurchases of common stock of $49.3 million, payment of cash dividends and dividend equivalents of $7.4 million, and tax withholding payments reimbursed by restricted shares on vesting of $2.1 million.

Current wording

During the fiscal year-to-date period ended October 3, 2026, net cash provided by financing activities was $52.1 million, primarily as a result of net borrowings under the revolving credit facility of $116.0 million. Offsetting this increase in cash provided by financing activities were repurchases of common stock of $49.3 million, payment of cash dividends and dividend equivalents of $11.0 million, tax withholding payments reimbursed by restricted shares on vesting of $2.2 million, and payments for debt issuance costs of $1.4 million.

Previous wording

CRA is party to a Credit Agreement, dated as of August 19, 2022 (as amended, the "Existing Credit Agreement") with Bank of America, N.A., as swingline lender, a letter of credit issuing bank and administrative agent, and with Citizens Bank, N.A., as a letter of credit issuing bank. The Existing Credit Agreement provides CRA with a $300.0 million revolving credit facility, which may be decreased at CRA's option to $240.0 million during the period from July 16 in a year through January 15 in the next year. Additionally, for the period from January 16 to July 15 of each calendar year, CRA may elect to not increase the revolving credit facility to $300.0 million. The revolving credit facility includes a $25.0 million sublimit for the issuance of letters of credit.

Current wording

On July 31, 2026, CRA and its subsidiaries, the UK Borrower and the Canadian Borrower entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with Bank of America, N.A., as swingline lender, a letter of credit issuing bank and administrative agent, and other lenders party thereto. The Credit Agreement provides us with aggregate credit facilities of $400.0 million, consisting of a $325.0 million revolving credit facility and a $75.0 million term loan facility. The revolving credit facility may be decreased at CRA's option to $250.0 million during the period from July 16 in a year through January 15 in the next year. Additionally, we may elect not to increase the revolving credit facility to $325.0 million during the period from January 16 through July 15 of each year. The revolving credit facility includes a $70.0 million sublimit for borrowings by the Designated Borrowers, a $150.0 million sublimit for borrowings in alternative currencies, a $50.0 million sublimit for letters of credit and a $30.0 million sublimit for swingline loans.

Previous wording

We are required to pay a fee on the amount available to be drawn under any letter of credit issued under the revolving credit facility at a rate per annum that varies between 1.25% and 2.00% depending on our consolidated net leverage ratio. In addition, we are required to pay a fee on the unused portion of the revolving credit facility at a rate per annum that varies between 0.175% and 0.250% depending on our consolidated net leverage ratio.

Current wording

We are required to pay a fee on the amount available to be drawn under letters of credit at a rate per annum between 1.25% and 2.00%, and a fee on the unused portion of the revolving credit facility at a rate per annum between 0.175% and 0.250%, depending on our consolidated net leverage ratio. Subject to certain conditions, we may request additional revolving credit or term loan commitments in an aggregate principal amount not exceeding the greater of $150.0 million and 100% of consolidated EBITDA for the applicable trailing four-fiscal-quarter period. The obligations under the Credit Agreement are unsecured, and the obligations of the Designated Borrowers are guaranteed by CRA.

Previous wording

Under the Existing Credit Agreement, we must comply with various financial and non-financial covenants. The primary financial covenants consist of a maximum consolidated net leverage ratio of 3.0 to 1.0 and a minimum consolidated interest coverage ratio of 2.5 to 1.0. The primary non-financial covenants include, but are not limited to, restrictions on our ability to incur future indebtedness, engage in acquisitions or dispositions, pay dividends or repurchase capital stock, and enter into business combinations. Any indebtedness outstanding under the revolving credit facility may become immediately due upon the occurrence of stated events of default, including our failure to pay principal, interest or fees, or upon the breach of any covenant. As of July 4, 2026, we were in compliance with the covenants of the Existing Credit Agreement.

Current wording

Under the Credit Agreement, we must comply with various financial and non-financial covenants. The primary financial covenants consist of a maximum consolidated net leverage ratio of 3.0 to 1.0, which can be increased to 3.5 to 1.0 for a period of four consecutive quarters in the event of a Permitted Acquisition (as defined in the Credit Agreement) exceeding $25.0 million (subject to a maximum of three permitted increases), and a minimum consolidated interest coverage ratio of 2.5 to 1.0. The primary non-financial covenants include, but are not limited to, restrictions on our ability to incur future indebtedness, engage in acquisitions or dispositions, pay dividends or repurchase capital stock, and enter into business combinations. Any indebtedness outstanding under the Credit Agreement may become immediately due upon the occurrence of certain events of default, including our failure to pay principal, interest or fees, or upon the breach of certain covenants. As of October 3, 2026, we were in compliance with the covenants of the Credit Agreement.

Previous wording

There were $219.0 million and $34.0 million in borrowings outstanding under the revolving credit facility as of July 4, 2026 and January 3, 2026, respectively. The amounts available under the revolving credit facility were reduced by certain letters of credit outstanding, which amounted to $3.7 million and $3.8 million, as of July 4, 2026 and January 3, 2026, respectively. We have chosen to classify the revolver as a current liability in its condensed consolidated balance sheet, as we have the intent to repay the amount within 12 months after the balance sheet date.

Current wording

There were $75.0 million and $34.0 million in borrowings outstanding under the revolving credit facility as of October 3, 2026 and January 3, 2026, respectively. In addition, there were $74.7 million in borrowings outstanding under the term loan facility, net of $0.3 million of unamortized debt issuance costs, as of October 3, 2026, and no such borrowings outstanding as of January 3, 2026. Of the $74.7 million, $1.8 million was classified as a current liability within deferred revenue and other liabilities in the condensed consolidated balance sheets as of October 3, 2026. The amounts available under the revolving credit facility were reduced by certain letters of credit outstanding, which amounted to $3.1 million and $3.8 million, as of October 3, 2026 and January 3, 2026, respectively. As of October 3, 2026, our total available borrowing capacity under the revolving facility was $171.9 million. We have chosen to classify the revolver as a current liability in its condensed consolidated balance sheet, as we intend to repay the amount within 12 months after the balance sheet date. For further information refer to Note 8. Credit Agreement in our condensed consolidated financial statements.

Previous wording

During the fiscal quarter and fiscal year-to-date period ended July 4, 2026, we repurchased and retired 192,945 and 308,985 shares under our share repurchase program at an average price per share of $144.29 and $159.56, respectively. During the fiscal quarter and the fiscal year-to-date period ended June 28, 2025, we repurchased and retired 230,673 shares under our share repurchase program at an average price per share of $187.06. We had approximately $16.6 million available for future repurchases under our share repurchase program as of July 4, 2026. We plan to finance future repurchases with available cash, cash from future operations, and borrowings available under our revolving credit facility. We expect to continue to repurchase shares under our share repurchase program.

Current wording

During the fiscal quarter ended October 3, 2026, we did not repurchase any shares under this share repurchase program. During the fiscal year-to-date period ended October 3, 2026, we repurchased and retired 308,985 shares under our share repurchase program at an average price per share of $159.56. During the fiscal quarter and the fiscal year-to-date period ended September 27, 2025, we repurchased and retired 21,532 and 252,205 shares, respectively, under our share repurchase program at an average price per share of $185.74 and $186.95, respectively. We had approximately $16.6 million available for future repurchases under our share repurchase program as of October 3, 2026. We plan to finance future repurchases with available cash, cash from future operations, and borrowings available under our revolving credit facility. We expect to continue to repurchase shares under our share repurchase program.

Previous wording

We anticipate paying regular quarterly dividends each year. These dividends are anticipated to be funded through cash flow from operations, available cash on hand, and/or borrowings available under our revolving credit facility. Although we anticipate paying regular quarterly dividends on our common stock for the foreseeable future, the declaration, timing and amounts of any such dividends remain subject to the discretion of our Board of Directors. During the fiscal quarter and fiscal year-to-date period ended July 4, 2026 we paid dividends and dividend equivalents of $3.6 million and $7.4 million, respectively. During the fiscal quarter and fiscal year-to-date period ended June 28, 2025, we paid dividends and dividend equivalents of $3.4 million and $6.9 million, respectively.

Current wording

We anticipate paying regular quarterly dividends each year. These dividends are anticipated to be funded through cash flow from operations, available cash on hand, and/or borrowings available under our revolving credit facility. Although we anticipate paying regular quarterly dividends on our common stock for the foreseeable future, the declaration, timing and amounts of any such dividends remain subject to the discretion of our Board of Directors. During the fiscal quarter and fiscal year-to-date period ended October 3, 2026 we paid dividends and dividend equivalents of $3.6 million and $11.0 million, respectively. During the fiscal quarter and fiscal year-to-date period ended September 27, 2025, we paid dividends and dividend equivalents of $3.2 million and $10.1 million, respectively.