Net Income Per Share

CRA calculates basic earnings per share using the two-class method. CRA calculates diluted earnings per share using the more dilutive of either the two-class method or treasury stock method. The two-class method was more dilutive for fiscal 2025, fiscal 2024, and fiscal 2023.

Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all the net earnings for the period had been distributed. CRA's participating securities consist of unvested share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders. Net earnings allocable to these participating securities were not material for fiscal 2025, fiscal 2024, and fiscal 2023.

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):


	Year Ended		Year Ended		Year Ended
	January 3, 2026		December 28, 2024		December 30, 2023
Numerator:
Net income — basic	$	54,782	$	46,653	$	38,481
Less: net income attributable to participating shares	101		127		136
Net income — diluted	$	54,681	$	46,526	$	38,345
Denominator:
Weighted average shares outstanding — basic	6,641		6,821		7,008
Effect of dilutive stock options and restricted stock units	73		87		110
Weighted average shares outstanding — diluted	6,714		6,908		7,118
Net income per share:
Basic	$	8.23	$	6.82	$	5.48
Diluted	$	8.14	$	6.74	$	5.39

Certain share-based awards were anti-dilutive because their exercise price exceeded the average market price over the respective period. The following table presents the anti-dilutive share-based awards that were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding (in thousands):

Year Ended

January 3,
2026

December 28,
2024

December 30,
2023

Anti-dilutive share-based awards excluded

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

CRA INTERNATIONAL, INC. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

Other Available Disclosures