MIAMI--(BUSINESS WIRE)---- $HCKT #AItransformation--The Hackett Group, Inc. (NASDAQ: HCKT), a leading Gen AI consultancy and enterprise digital transformation firm, today announced the launch of Hackett AI XPLRâ"¢ 5.0, which supports enterprise AI Centers of Excellence (AI COEs), is available for enterprise licensing. Hackett AI XPLRâ"¢ 5.0 is designed to accelerate and enhance how enterprises identify, evaluate, and design AI solutions using their client-specific business processes, enterprise applications ...

MIAMI--(BUSINESS WIRE)---- $HCKT #ai--The Hackett Group, Inc. (NASDAQ: HCKT), a leading Gen AI consulting and digital transformation firm, today announced the launch of XT™ and AIXelerator™ – two new Gen AI-enabled service delivery platforms designed to significantly accelerate and enhance the strategic insight and speed of transformation and technology implementation engagements. These platforms redefine the way transformation consulting and software implementation teams deliver engagements by leveraging t ...

Core Insights - The Hackett Group, Inc. has reported that SG&A costs have reached their highest level in five years, with median SG&A cost as a percentage of revenue increasing from 13.7% to 14.3% [1] SG&A Cost Analysis - The increase in SG&A costs is primarily attributed to slowing revenue growth, indicating a potential challenge for companies in managing operational expenses [1] - The findings are based on an analysis of 1,000 large companies, providing a comprehensive view of the current SG&A landscape [1]

Boston Partners increased its position in shares of The Hackett Group, Inc. (NASDAQ:HCKT – Free Report) by 1.8% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 533,948 shares of the business services provider’s stock after buying an additional 9,477 shares during the period. Boston Partners owned 1.94% of The Hackett Group worth $13,305,000 at the end of the most recent reporting period. Get The Hackett Group alerts: Other h ...

Core Insights - The Hackett Group, Inc. has released its latest Digital World Class® Matrix focusing on the accounts payable (AP) software solutions marketplace [1] - The report highlights the growing capabilities of today's AP solutions, which are increasingly powered by artificial intelligence (AI) [1] - These advanced AP solutions assist customers in addressing complex requirements such as global e-invoicing, tax validation, and fraud prevention [1] Company Insights - The Hackett Group, Inc. is recognized as a leading consulting firm in Gen AI and enterprise digital transformation [1] - The company is actively involved in analyzing and providing insights into the evolving landscape of AP software solutions [1] Industry Insights - The accounts payable software solutions marketplace is experiencing significant advancements due to the integration of AI technologies [1] - The focus on complex requirements such as global e-invoicing and fraud prevention indicates a shift towards more sophisticated financial management tools in the industry [1]

Core Insights - The Hackett Group, Inc. released its 2025 European SG&A Cost Study and Scorecard, indicating a 6% increase in median SG&A costs among Europe's 1,000 largest public companies, reaching 11.5% of revenue, the highest level since 2020 [1] SG&A Cost Trends - Median SG&A costs rose for the second consecutive year, highlighting a growing trend in operational expenses among major European firms [1] - 63% of the companies surveyed reported an increase in SG&A costs, reflecting widespread challenges in managing administrative expenses [1]

Core Insights - The Hackett Group, Inc. announced the results of its 2025 European Working Capital Survey, indicating a decline in working capital efficiency in 2024 [1] - The cash conversion cycle (CCC) worsened by 3%, highlighting a significant deterioration in the region's financial metrics [1] - The analysis focused on the 1,000 largest European-headquartered nonfinancial companies, revealing that the decline was primarily driven by an increase in days [1]

Core Viewpoint - The Hackett Group, Inc. has initiated a $40 million Dutch auction tender offer to repurchase its shares, indicating a strategic move to enhance shareholder value [1] Group 1 - The tender offer is set at a maximum of $40 million, reflecting the company's commitment to returning capital to shareholders [1] - This action is part of the company's broader strategy to optimize its capital structure and improve financial flexibility [1] - The Dutch auction format allows shareholders to specify the price at which they are willing to sell their shares, potentially leading to a more favorable outcome for both the company and its investors [1]

Revenue Performance - Total revenue for the third quarter of 2025 was $73.1 million, a decrease of 8.4% from $79.8 million in the same period of 2024[111]. - For the first nine months of 2025, total revenue was $230.0 million, down 2.3% from $234.6 million in the same period of 2024[111]. - The Global Strategy & Business Transformation segment generated $42.9 million in revenue for the third quarter of 2025, down from $44.1 million in the same period of 2024[113]. - Oracle Solutions revenue decreased to $16.5 million in the third quarter of 2025 from $22.8 million in the same period of 2024, a decline of 27.4%[114]. - SAP Solutions revenue increased to $13.7 million in the third quarter of 2025 from $13.0 million in the same period of 2024, an increase of 5.4%[115]. Income and Costs - The net income for the third quarter of 2025 was $2.5 million, compared to $8.6 million in the same period of 2024, reflecting a decline of 70.5%[109]. - Personnel costs before reimbursable expenses were $42.4 million for the third quarter of 2025, down from $46.4 million in the same period of 2024, representing a decrease of 8.5%[118]. - Selling, general and administrative costs for the third quarter of 2025 were $21.2 million, up from $18.7 million in the same period of 2024, an increase of 13.4%[109]. - SG&A costs increased to $21.2 million in Q3 2025 from $18.7 million in Q3 2024, representing a rise of 13.3%[121]. - Non-cash stock-based compensation expense rose to $4.3 million in Q3 2025 from $1.7 million in Q3 2024, an increase of 152.9%[122]. - Global S&BT segment contribution decreased to $13.2 million in Q3 2025 from $14.1 million in Q3 2024, a decline of 6.4%[126]. - Oracle Solutions segment contribution fell to $2.7 million in Q3 2025 from $5.5 million in Q3 2024, a decrease of 50.9%[127]. Cash Flow and Debt - Net cash provided by operating activities was $21.2 million in the first nine months of 2025, down from $27.1 million in the same period of 2024, a decline of 21.8%[134]. - Net cash used in investing activities was $6.6 million in the first nine months of 2025, compared to $9.6 million in the same period of 2024, a decrease of 31.3%[135]. - Net cash used in financing activities was $17.0 million in the first nine months of 2025, down from $28.4 million in the same period of 2024, a reduction of 40.2%[136]. - As of September 26, 2025, the company had outstanding debt of $44.0 million, an increase from $20.0 million as of September 27, 2024[130]. Tax and Restructuring - The effective tax rate increased to 49.3% in Q3 2025 from 30.9% in Q3 2024, reflecting a significant rise due to limitations on executive compensation deductions[131]. - Restructuring costs amounted to $3.1 million in Q3 2025 as the company pivoted towards Gen AI, primarily due to employee-related costs[124]. Strategic Initiatives - The company completed over 27,500 benchmarking and performance studies, utilizing its Quantum Leap platform[105]. - The company launched its AI assessment platform, AI XPLR, in early 2024 to help clients identify Gen AI enablement opportunities[103].

Core Insights - Hackett Group reported quarterly earnings of $0.37 per share, matching the Zacks Consensus Estimate, but down from $0.43 per share a year ago [1] - The company posted revenues of $72.17 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.02% and down from $77.95 million year-over-year [2] - Hackett Group shares have declined approximately 41.4% year-to-date, contrasting with the S&P 500's gain of 16.5% [3] Earnings Performance - The company has surpassed consensus EPS estimates two times over the last four quarters [1] - Hackett Group has topped consensus revenue estimates three times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.38, with expected revenues of $75.1 million, and for the current fiscal year, the estimate is $1.52 on revenues of $302.58 million [7] Market Outlook - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] - The estimate revisions trend for Hackett Group was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The Consulting Services industry is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]