Hackett Group (NASDAQ: HCKT) Q4 2025 results, tender offer, dividend
Rhea-AI Filing Summary
The Hackett Group, Inc. reported fourth quarter 2025 total revenue of $75.8 million, down from $79.2 million a year earlier, with revenue before reimbursements of $74.8 million. GAAP diluted EPS rose to $0.21 from $0.12, while adjusted diluted EPS declined to $0.40 from $0.47.
During the quarter, the company completed a Dutch auction tender offer, repurchasing 2.0 million shares for $41.2 million, reducing outstanding shares by about 7%. As of December 26, 2025, cash was $18.2 million and debt on the credit facility was $76.0 million, with operating cash flow of $19.1 million.
Subsequently, the board approved an additional $13.6 million under the share repurchase program and declared the first quarterly dividend of $0.12 per share. For first quarter 2026, the company guides revenue before reimbursements to $70.5–$72.0 million and adjusted diluted EPS to $0.34–$0.36.
Positive
- Significant capital return: Completed a Dutch auction repurchasing 2.0 million shares (~7% of outstanding) for $41.2 million, with additional $13.6 million buyback authorization approved after quarter-end.
- New shareholder dividend: Board declared the company’s first quarterly cash dividend of $0.12 per share, signaling an added, recurring capital-return component alongside ongoing repurchases.
Negative
- Sharp full-year earnings decline: GAAP net income dropped to $12.9 million in 2025 from $29.6 million in 2024, reflecting substantial stock price award and acquisition-related compensation and weighing on overall profitability.
- Higher leverage: Long-term debt increased to $75.8 million at December 26, 2025 from $12.7 million a year earlier, raising financial obligations even as the company executed large share repurchases.
Insights
Capital returns are strong, but growth and full-year earnings softened.
The Hackett Group posted Q4 2025 revenue of $75.8M, modestly below the prior year, while GAAP EPS improved to $0.21 and adjusted EPS slipped to $0.40. Segment data show pressure in Oracle Solutions and Global S&BT, partly offset by SAP Solutions growth.
Full-year GAAP net income fell to $12.9M from $29.6M, heavily influenced by stock price award and acquisition-related compensation, which together added sizable non-cash expense. Leverage increased, with long-term debt at $75.8M versus $12.7M a year earlier.
Capital return is notable: a Dutch auction retired about 7% of shares for $41.2M, remaining authorization was $11.4M, and the board later added $13.6M plus a new quarterly dividend of $0.12 per share. Guidance for Q1 2026 calls for revenue before reimbursements of $70.5–$72.0M and adjusted EPS of $0.34–$0.36, framing expectations for upcoming results.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
The
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
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(
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR § 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR § 240.12b-2).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 17, 2026, The Hackett Group, Inc. (the “Company”) issued a press release setting forth its consolidated financial results for the fourth fiscal quarter and fiscal year ended December 26, 2025. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein.
The information contained in Item 2.02 of this current report on Form 8-K, as well as Exhibit 99.1, is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number |
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Description |
99.1 |
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Press Release of The Hackett Group, Inc., dated February 17, 2026. |
104 |
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Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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THE HACKETT GROUP, INC. |
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Date: February 17, 2026 |
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By: |
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/s/ Robert A. Ramirez |
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Robert A. Ramirez |
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Executive Vice President, Finance and Chief Financial Officer |
WWW.THEHACKETTGROUP.COM
Exhibit 99.1
Contact:
Robert A. Ramirez, CFO, 305-375-8005 or rramirez@thehackettgroup.com
The Hackett Group Announces Fourth Quarter 2025 Results
MIAMI, FL (February 17, 2026) – The Hackett Group, Inc. (NASDAQ: HCKT), a leading generative artificial intelligence (Gen AI) consultancy and digital transformation firm that enables Digital World Class® performance, today announced its financial results for the fourth quarter, which ended on December 26, 2025.
“We reported operating results with revenues and adjusted earnings per share that were above and at the high end of our guidance, respectively. While we cannot control short-term market sentiment or demand volatility, we can - and do - control the intrinsic value we create,” stated Ted A. Fernandez, Chairman and CEO of The Hackett Group, Inc. “The current environment also creates the opportunity for new leaders to emerge. Over the past two years, we have been systematically expanding our suite of Gen AI enabled platforms to lead in the rapidly emerging Agentic Enterprise era. By embedding our IP into our new platforms and models, we believe we will be able to generate new revenue with higher margins, in entirely new ways that allow us to deliver breakthrough ROI. We are looking forward to 2026!”
Financial Highlights
Business Outlook for the First Quarter of 2026
Based on the Company’s current outlook:
Conference Call and Webcast Details
Use of Non-GAAP Financial Measures
The Company provides adjusted earnings results (which excluded non-cash stock-based compensation expense, acquisition-related non-cash stock-based compensation expense, legal settlement and related costs and includes a GAAP tax rate) as a complement to results provided in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP results are provided to enhance the users' overall understanding of the Company's current financial performance and its prospects for the future. The Company believes the non-GAAP results provide useful information to both management and investors and by excluding certain expenses that it believes are not indicative of its core operating results. The non-GAAP measures are included to provide investors and management with an alternative method for assessing operating results in a manner that is focused on the performance of its ongoing primary operations and to provide a consistent basis for comparison between quarters. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting. The presentation of this additional non-GAAP information should be considered in addition to, and not as a substitute for or superior to, any results prepared in accordance with GAAP. See the reconciliation of actual results titled “Reconciliation of GAAP to Non-GAAP Measures” in the accompanying tables.
The Company believes that the presentation of non-GAAP financial information on a forward-looking basis, including the guidance contained in this release, provides important supplemental information to management and investors regarding its anticipated results of operations. The Company is unable to provide a reconciliation of
GAAP measures to corresponding forward-looking non-GAAP measures without unreasonable effort due to the high variability and low visibility of most of the items that have been excluded from these non-GAAP measures. For example, non-cash stock-based compensation expense is impacted by the Company’s future hiring needs, the type and volume of equity awards necessary for such future hiring, and the price at which the Company’s stock will trade in those future periods. In addition, the provision or benefit for income taxes is impacted by non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions. The effects of these reconciling items may be significant, as the items that are being excluded are difficult to predict.
About The Hackett Group®
The Hackett Group, Inc. (NASDAQ: HCKT) is a Gen AI strategic consulting and digital transformation firm that enables Digital World Class® performance. Using Hackett AI XPLR™, ZBrain™, XT™, AIXelerator™, AskHackett™ and Quantum Leap® platforms, the company’s experienced professionals and engineers help organizations realize the power of Gen AI from ideation through implementation to achieve quantifiable, breakthrough results with unprecedented speed, allowing it to be key architects of their Gen AI journey. The company’s expertise is grounded in unparalleled best practices insights from enterprise performance benchmarks from the world’s leading businesses – including 97% of the Dow Jones Industrials, 90% of the Fortune 100, 68% of the DAX 40 and 53% of the FTSE 100. Visit us at www.thehackettgroup.com.
Trademarks
The Hackett Group®, quadrant logo, Digital World Class® and Quantum Leap® are the registered marks of The Hackett Group®.
Cautionary Statement Regarding “Forward-Looking” Statements
This release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” seeks,” “estimates,” or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that could impact such forward-looking statements include, among others, changes in worldwide and U.S. economic conditions that impact business confidence and the demand for our products and services, our ability to transition our capabilities to support generative artificial intelligence (AI)-related consulting services and solutions, our ability to effectively integrate acquisitions, including the Leeway acquisition, into our operations, our ability to manage joint ventures and successfully cooperate with our joint venture partners, our ability to retain existing business, our ability to attract additional business, our ability to effectively market and sell our product offerings and other services, the timing of projects and the potential for contract cancellation by our customers, changes in expectations regarding the business consulting and information technology industries, our ability to attract and retain skilled employees, possible changes in collections of accounts receivable due to the bankruptcy or financial difficulties of our customers, risks of competition, price and margin trends, foreign currency fluctuations, the impact of the geopolitical conflict involving Russia and Ukraine and in the Middle East on our business and changes in general economic conditions, interest rates and our ability to obtain additional debt financing if needed as well as other risk detailed in The Hackett Group’s reports filed with the United States Securities and Exchange Commission. The Hackett Group does not undertake any duty to update this release or any forward-looking statements contained herein.
Page 4 of 8 - The Hackett Group, Inc. Announces Fourth Quarter Results
The Hackett Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
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Quarter Ended |
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Twelve Months Ended |
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December 26, |
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December 27, |
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December 26, |
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December 27, |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenue: |
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Revenue before reimbursements |
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$ |
74,820 |
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$ |
77,456 |
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$ |
300,846 |
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$ |
307,028 |
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Reimbursements |
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931 |
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1,779 |
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4,780 |
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6,827 |
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Total revenue |
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75,751 |
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79,235 |
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305,626 |
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313,855 |
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Costs and expenses: |
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Cost of service: |
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Personnel costs before reimbursable expenses (includes $3,107 and $14,600 and $5,324 and $10,491 of non-cash stock based compensation expense in the three and twelve months ended December 26, 2025 and December 27, 2024, respectively) |
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43,196 |
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46,209 |
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183,681 |
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183,792 |
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Reimbursable expenses |
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931 |
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1,779 |
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4,780 |
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6,827 |
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Total cost of service |
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44,127 |
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47,988 |
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188,461 |
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190,619 |
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Selling, general and administrative costs (includes $2,240 and $16,028 and $4,928 and $9,033 of non-cash stock based compensation expense in the three and twelve months ended December 26, 2025 and December 27, 2024, respectively) |
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22,547 |
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23,500 |
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90,519 |
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78,546 |
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Legal settlement and related costs |
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- |
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- |
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- |
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102 |
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Restructuring costs |
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- |
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- |
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3,112 |
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- |
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Total costs and operating expenses |
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66,674 |
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71,488 |
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282,092 |
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269,267 |
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Operating income |
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9,077 |
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7,747 |
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23,534 |
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44,588 |
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Other expense, net: |
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Interest expense, net |
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(710 |
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(242 |
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(1,716 |
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(1,594 |
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Income before income taxes |
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8,367 |
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7,505 |
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21,818 |
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42,994 |
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Income tax expense |
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2,775 |
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3,941 |
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8,875 |
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13,364 |
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Net income |
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$ |
5,592 |
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$ |
3,564 |
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$ |
12,943 |
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$ |
29,630 |
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Basic net income per common share: |
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Income per common share |
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$ |
0.21 |
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$ |
0.13 |
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$ |
0.47 |
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$ |
1.08 |
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Weighted average common shares outstanding |
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26,742 |
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27,556 |
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27,305 |
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27,560 |
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Diluted net income per common share: |
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Income per common share |
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$ |
0.21 |
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$ |
0.12 |
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$ |
0.46 |
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$ |
1.05 |
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Weighted average common and common equivalent shares outstanding |
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27,145 |
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28,604 |
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27,907 |
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28,091 |
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Page 5 of 8 - The Hackett Group, Inc. Announces Fourth Quarter Results
The Hackett Group, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
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December 26, |
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December 27, |
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2025 |
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2024 |
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ASSETS |
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Current assets: |
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Cash |
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$ |
18,197 |
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$ |
16,366 |
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Accounts receivable and contract assets, net |
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59,505 |
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57,079 |
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Prepaid expenses and other current assets |
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6,175 |
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2,901 |
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Total current assets |
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83,877 |
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76,346 |
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Property, software and equipment, net |
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24,011 |
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20,343 |
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Other assets |
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358 |
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350 |
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Intangible assets |
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3,252 |
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2,312 |
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Goodwill |
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90,659 |
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89,782 |
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Operating lease right-of-use assets |
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2,484 |
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2,744 |
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Total assets |
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$ |
204,641 |
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$ |
191,877 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
6,295 |
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$ |
6,503 |
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Accrued expenses and other liabilities |
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28,824 |
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30,789 |
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Contract liabilities |
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12,317 |
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11,118 |
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Income tax payable |
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74 |
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3,753 |
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Operating lease liabilities |
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1,259 |
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965 |
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Total current liabilities |
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48,769 |
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53,128 |
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Long-term deferred tax liability, net |
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10,731 |
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8,464 |
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Long-term debt |
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75,818 |
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12,734 |
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Operating lease liabilities |
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1,223 |
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1,977 |
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Total liabilities |
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136,541 |
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76,303 |
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Shareholders' equity |
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68,100 |
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115,574 |
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Total liabilities and shareholders' equity |
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$ |
204,641 |
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$ |
191,877 |
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Page 6 of 8 - The Hackett Group, Inc. Announces Fourth Quarter Results
The Hackett Group, Inc.
SEGMENT PROFIT
(in thousands)
(unaudited)
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Quarter Ended |
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Twelve Months Ended |
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December 26, |
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December 27, |
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December 26, |
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December 27, |
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2025 |
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2024 |
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2025 |
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2024 |
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Global S&BT (1): |
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Revenue before reimbursements |
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$ |
38,615 |
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$ |
43,207 |
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$ |
167,266 |
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$ |
168,274 |
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Cost of sales |
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19,651 |
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21,478 |
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86,177 |
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89,275 |
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Gross margin |
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18,964 |
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21,729 |
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81,089 |
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78,999 |
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Selling, general and administrative costs |
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7,184 |
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7,041 |
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30,295 |
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27,416 |
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Segment contribution |
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11,780 |
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14,688 |
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50,794 |
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51,583 |
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Oracle Solutions (2): |
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Revenue before reimbursements |
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$ |
14,003 |
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$ |
17,408 |
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$ |
71,247 |
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$ |
82,472 |
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Cost of sales |
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11,507 |
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12,635 |
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50,884 |
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55,856 |
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Gross margin |
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2,496 |
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4,773 |
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20,363 |
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26,616 |
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Selling, general and administrative costs |
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1,599 |
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1,814 |
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7,967 |
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7,507 |
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Segment contribution |
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897 |
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2,959 |
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12,396 |
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19,109 |
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SAP Solutions (3): |
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Revenue before reimbursements |
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$ |
22,202 |
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$ |
16,841 |
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$ |
62,333 |
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$ |
56,282 |
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Cost of sales |
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8,797 |
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6,416 |
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31,832 |
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27,757 |
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Gross margin |
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13,405 |
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10,425 |
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30,501 |
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28,525 |
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Selling, general and administrative costs |
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4,823 |
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3,515 |
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10,116 |
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9,782 |
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Segment contribution |
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8,582 |
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6,910 |
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20,385 |
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18,743 |
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Total Company (4): |
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Total segment contribution |
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21,259 |
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24,557 |
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83,575 |
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89,435 |
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Items not allocated to segment level (4): |
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||||
|
Corporate general and administrative expenses |
|
|
5,347 |
|
|
|
5,042 |
|
|
|
20,542 |
|
|
|
20,787 |
|
|
Non-cash stock based compensation expense |
|
|
2,640 |
|
|
|
3,345 |
|
|
|
10,915 |
|
|
|
11,782 |
|
|
Stock price award program compensation expense |
|
|
1,751 |
|
|
|
5,142 |
|
|
|
16,804 |
|
|
|
5,745 |
|
|
Acquisition-related cash compensation expense |
|
|
102 |
|
|
|
349 |
|
|
|
178 |
|
|
|
390 |
|
|
Acquisition-related non-cash stock based compensation expense |
|
|
956 |
|
|
|
1,765 |
|
|
|
2,911 |
|
|
|
1,997 |
|
|
Acquisition-related costs |
|
|
2 |
|
|
|
72 |
|
|
|
399 |
|
|
|
125 |
|
|
Restructuring costs |
|
|
- |
|
|
|
- |
|
|
|
3,112 |
|
|
|
- |
|
|
Legal settlement and related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
102 |
|
|
Depreciation expense |
|
|
1,073 |
|
|
|
947 |
|
|
|
4,184 |
|
|
|
3,771 |
|
|
Amortization expense |
|
|
311 |
|
|
|
148 |
|
|
|
996 |
|
|
|
148 |
|
|
Interest expense, net |
|
|
710 |
|
|
|
242 |
|
|
|
1,716 |
|
|
|
1,594 |
|
|
Income before taxes |
|
$ |
8,367 |
|
|
$ |
7,505 |
|
|
$ |
21,818 |
|
|
$ |
42,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(1) Global S&BT includes the results of our North America and International Gen AI Consulting, Implementation and Licensing, Benchmarking and Business Transformation offerings, Executive Advisory, Market Intelligence and IP as-a-Service, OneStream and eProcurement. |
|
|||||||||||||||
|
(2) Oracle Solutions includes the results of our EPM/ERP and AI Enablement practices. |
|
|||||||||||||||
|
(3) SAP Solutions includes the results of our SAP applications and related SAP service offerings. |
|
|||||||||||||||
|
(4) Segment contributions consist of the revenue generated by the segment, less the direct costs of revenue and selling, general and administrative expenses that are incurred directly by the segment. Items not allocated to the segment level include corporate costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. Items not allocated to the segment level include corporate general and administrative expenses, non-cash stock based compensation expense, acquisition related cash and non-cash stock based compensation expense, depreciation and amortization expense, legal settlement and related costs, interest expense and foreign currency gains and losses. Corporate general and administrative expenses primarily include costs related to business support functions including accounting and finance, human resources, legal, information technology and office administration. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits. |
|
|||||||||||||||
Page 7 of 8 - The Hackett Group, Inc. Announces Fourth Quarter Results
The Hackett Group, Inc. |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES |
(in thousands, except per share data) |
(unaudited)
|
|
|
Quarter Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
December 26, |
|
|
December 27, |
|
|
December 26, |
|
|
December 27, |
|
||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
GAAP NET INCOME |
|
$ |
5,592 |
|
|
$ |
3,564 |
|
|
$ |
12,943 |
|
|
$ |
29,630 |
|
Adjustments (1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash stock based compensation expense (2) |
|
|
2,640 |
|
|
|
3,345 |
|
|
|
10,915 |
|
|
|
11,782 |
|
Stock price award program compensation expense (2)(3) |
|
|
1,751 |
|
|
|
5,142 |
|
|
|
16,804 |
|
|
|
5,745 |
|
Acquisition-related cash compensation expense (4) |
|
|
102 |
|
|
|
349 |
|
|
|
178 |
|
|
|
390 |
|
Acquisition-related non-cash stock based compensation expense (4) |
|
|
956 |
|
|
|
1,765 |
|
|
|
2,911 |
|
|
|
1,997 |
|
Acquisition-related costs |
|
|
2 |
|
|
|
72 |
|
|
|
399 |
|
|
|
125 |
|
Amortization expense |
|
|
311 |
|
|
|
148 |
|
|
|
996 |
|
|
|
148 |
|
Restructuring |
|
|
- |
|
|
|
- |
|
|
|
3,112 |
|
|
|
- |
|
Legal settlement and related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
102 |
|
ADJUSTED NET INCOME BEFORE INCOME TAXES ON ADJUSTMENTS (1) |
|
|
11,354 |
|
|
|
14,385 |
|
|
|
48,258 |
|
|
|
49,919 |
|
Tax effect of adjustments above (5) |
|
|
492 |
|
|
|
819 |
|
|
|
4,938 |
|
|
|
2,641 |
|
ADJUSTED NET INCOME (1) |
|
$ |
10,862 |
|
|
$ |
13,566 |
|
|
$ |
43,320 |
|
|
$ |
47,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP diluted net income per common share |
|
$ |
0.21 |
|
|
$ |
0.12 |
|
|
$ |
0.46 |
|
|
$ |
1.05 |
|
Adjusted diluted net income per common share (1) |
|
$ |
0.40 |
|
|
$ |
0.47 |
|
|
$ |
1.55 |
|
|
$ |
1.68 |
|
Weighted average common and common equivalent shares outstanding |
|
|
27,145 |
|
|
|
28,604 |
|
|
|
27,907 |
|
|
|
28,091 |
|
|
|
|||||||||||||||
(1) The Company provides adjusted earnings results (which excludes non-cash stock based compensation expense, stock price award program compensation expense, acquisition-related cash and non-cash stock based compensation expense, amortization expense, acquisition related costs and legal settlement and related costs and includes a GAAP tax rate) as a complement to results provided in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP results are provided to enhance the users' overall understanding of the Company's current financial performance and its prospects for the future. The Company believes the non-GAAP results provide useful information to both management and investors and by excluding certain expenses that it believes are not indicative of its core operating results. The non-GAAP measures are included to provide investors and management with an alternative method for assessing operating results in a manner that is focused on the performance of its ongoing primary operations and to provide a consistent basis for comparison between quarters. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting. The presentation of this additional non-GAAP information should be considered in addition to, and not as a substitute for or superior to, any results prepared in accordance with GAAP. |
|
|||||||||||||||
(2) Non-cash stock based compensation expense is accounted for under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation-Stock Compensation. The Company excludes non-cash stock based compensation expense and the related tax effects for the purposes of adjusted net income and adjusted diluted earnings per share. The Company believes that non-GAAP measures of profitability, which exclude non-cash stock based compensation expense, are widely used by investors. |
|
|||||||||||||||
(3) The stock price award program compensation expense relates to equity awards that were granted with certain market share price hurdles and service conditions to meet before they are vested. The market price hurdles include twenty consecutive trading days of equal to or greater than $30, $40 and $50 per share price. As of December 26, 2025, the first market condition had been met, and although the shares have not vested they are included in the Company's dilutive shares outstanding for the quarter ended December 26, 2025. As of December 26, 2025, the second and third market conditions had not been met and as such the shares have not vested and are not included in the Company's basic or dilutive shares outstanding. Non-cash compensation of $1.8 million and $16.8 million was recorded in the fourth quarter and twelve months of 2025, respectively. |
|
|||||||||||||||
(4) The Company incurs cash and non-cash stock based compensation expense for acquisition related consideration that is recognized over time under GAAP. The Company believes excluding these amounts more consistently presents its ongoing results of operations because they are related to acquisitions and not due to normal operating activities. The acquisition-related non-cash stock based compensation expense is also accounted for under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation-Stock Compensation. |
|
|||||||||||||||
(5) The adjustment for the income tax expense is based on the accounting treatment and income tax rate for the jurisdiction of each item. The impact of all of the non-cash stock based compensation expense was $0.4 million and $0.7 million the fourth quarters of 2025 and 2024, respectively, and $3.8 million and $2.4 million for the twelve months of 2025 and 2024, respectively. The impact of acquisition related cash compensation expense was $26 thousand and $45 thousand in the fourth quarter and twelve months in 2025, respectively. The impact of the acquisition related costs including amortization was $81 thousand and $0.4 million in the fourth quarter and twelve month period of 2025, respectively. The impact of the legal settlement and related costs was $27 thousand in in the twelve months in 2024. The impact of the restructuring cost was $0.8 million in the twelve months in 2025. |
|
|||||||||||||||
Page 8 of 8 - The Hackett Group, Inc. Announces Fourth Quarter Results
The Hackett Group, Inc.
SUPPLEMENTAL FINANCIAL DATA
(unaudited)
|
|
Quarter Ended |
|
|||||||||
|
|
December 26, |
|
|
September 26, |
|
|
December 27, |
|
|||
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
|||
Segment Total Revenue and Revenue Before Reimbursements (in thousands): |
|
|
|
|
|
|
|
|
|
|||
Global S&BT: |
|
|
|
|
|
|
|
|
|
|||
Total revenue |
|
$ |
39,083 |
|
|
$ |
42,925 |
|
|
$ |
43,877 |
|
Reimbursements |
|
|
468 |
|
|
|
527 |
|
|
|
670 |
|
Revenue before reimbursements |
|
$ |
38,615 |
|
|
$ |
42,398 |
|
|
$ |
43,207 |
|
|
|
|
|
|
|
|
|
|
|
|||
Oracle Solutions: |
|
|
|
|
|
|
|
|
|
|||
Total revenue |
|
$ |
14,269 |
|
|
$ |
16,504 |
|
|
$ |
18,174 |
|
Reimbursements |
|
|
266 |
|
|
|
151 |
|
|
|
766 |
|
Revenue before reimbursements |
|
$ |
14,003 |
|
|
$ |
16,353 |
|
|
$ |
17,408 |
|
|
|
|
|
|
|
|
|
|
|
|||
SAP Solutions: |
|
|
|
|
|
|
|
|
|
|||
Total revenue |
|
$ |
22,399 |
|
|
$ |
13,682 |
|
|
$ |
17,184 |
|
Reimbursements |
|
|
197 |
|
|
|
267 |
|
|
|
343 |
|
Revenue before reimbursements |
|
$ |
22,202 |
|
|
$ |
13,415 |
|
|
$ |
16,841 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total segment revenue: |
|
|
|
|
|
|
|
|
|
|||
Total revenue |
|
$ |
75,751 |
|
|
$ |
73,111 |
|
|
$ |
79,235 |
|
Reimbursements |
|
|
931 |
|
|
|
945 |
|
|
|
1,779 |
|
Revenue before reimbursements |
|
$ |
74,820 |
|
|
$ |
72,166 |
|
|
$ |
77,456 |
|
|
|
|
|
|
|
|
|
|
|
|||
Revenue Concentration: |
|
|
|
|
|
|
|
|
|
|||
(% of total revenue) |
|
|
|
|
|
|
|
|
|
|||
Top customer |
|
|
3 |
% |
|
|
5 |
% |
|
|
8 |
% |
Top 5 customers |
|
|
13 |
% |
|
|
17 |
% |
|
|
21 |
% |
Top 10 customers |
|
|
23 |
% |
|
|
26 |
% |
|
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|||
Key Metrics and Other Financial Data: |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Total Company: |
|
|
|
|
|
|
|
|
|
|||
Consultant headcount |
|
|
1,301 |
|
|
|
1,317 |
|
|
|
1,284 |
|
Total headcount |
|
|
1,588 |
|
|
|
1,599 |
|
|
|
1,553 |
|
Days sales outstanding (DSO) |
|
|
71 |
|
|
|
71 |
|
|
|
66 |
|
Cash provided by operating activities (in thousands) |
|
$ |
19,066 |
|
|
$ |
11,395 |
|
|
$ |
20,640 |
|
Depreciation (in thousands) |
|
$ |
1,073 |
|
|
$ |
1,052 |
|
|
$ |
947 |
|
Amortization (in thousands) |
|
$ |
311 |
|
|
$ |
311 |
|
|
$ |
148 |
|
Capital expenditures (in thousands) |
|
$ |
2,008 |
|
|
$ |
2,405 |
|
|
$ |
1,018 |
|
|
|
|
|
|
|
|
|
|
|
|||
Remaining Plan authorization: |
|
|
|
|
|
|
|
|
|
|||
Shares purchased (in thousands) (1) |
|
|
2,032 |
|
|
|
839 |
|
|
|
117 |
|
Cost of shares repurchased (in thousands) (1) |
|
$ |
41,223 |
|
|
$ |
17,405 |
|
|
$ |
3,630 |
|
Average price per share of shares purchased (1) |
|
$ |
20.29 |
|
|
$ |
20.73 |
|
|
$ |
30.95 |
|
Remaining Plan authorization (in thousands) (2) |
|
$ |
11,368 |
|
|
$ |
12,590 |
|
|
$ |
27,516 |
|
|
|
|
|
|
|
|
|
|
|
|||
Shares Purchased to Satisfy Employee Net Vesting Obligations: |
|
|
|
|
|
|
|
|
|
|||
Shares purchased (in thousands) |
|
|
37 |
|
|
|
268 |
|
|
|
- |
|
Cost of shares purchased (in thousands) |
|
$ |
762 |
|
|
$ |
5,514 |
|
|
$ |
- |
|
Average price per share of shares purchased |
|
$ |
20.67 |
|
|
$ |
20.61 |
|
|
$ |
- |
|
|
|
|||||||||||
(1) Includes the shares repurchased through the Tender Offer transaction in December 2025 from which the Company acquired 2.0 million shares at $20.29 per share, or $41.2 million, inclusive of transaction related fees. |
|
|||||||||||
(2) The Company's Board of Directors approved an additional $40.0 million to its share repurchase plan in the fourth quarter of 2025. |
|
|||||||||||