MIAMI--(BUSINESS WIRE)---- $HCKT #AP--The Hackett Group, Inc. (NASDAQ: HCKT), a leading Gen AI consulting and enterprise digital transformation firm, has just released the results of its latest Digital World Class® Matrix, focusing on the accounts payable (AP) software solutions marketplace. Today's AP solutions deliver an expanding mix of capabilities powered by artificial intelligence (AI) that help their customers address complex requirements such as global e-invoicing, tax validation and fraud preventio ...

MIAMI--(BUSINESS WIRE)---- $HCKT #HR--The Hackett Group, Inc. (NASDAQ: HCKT), a leading Gen AI consulting and enterprise digital transformation firm, today announced the release of its 2025 European SG&A Cost Study and Scorecard, revealing that median selling, general and administrative (SG&A) costs among Europe's 1,000 largest public companies rose for the second consecutive year, climbing by 6% to 11.5% of revenue – the highest level since 2020. The study found that 63% of companies saw SG&A co. ...

MIAMI--(BUSINESS WIRE)---- $HCKT #CCC--The Hackett Group, Inc. (NASDAQ: HCKT), a leading Gen AI consulting and enterprise digital transformation firm, today announced the results of its 2025 European Working Capital Survey, revealing that the region's working capital efficiency continued to decline in 2024, with the cash conversion cycle (CCC) worsening by 3%. The analysis – covering the 1,000 largest European- headquartered nonfinancial companies – found that deterioration was driven primarily by rising da ...

MIAMI--(BUSINESS WIRE)--THE HACKETT GROUP, INC. COMMENCES $40 MILLION DUTCH AUCTION TENDER OFFER. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 26, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 333-48123 The Hackett Group, Inc. (Exact name of registrant as specified in its charter) FLORIDA 65-0750100 (State or other jurisdiction of ...

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]

The Hackett Group (NasdaqGS:HCKT) Q3 2025 Earnings Call November 04, 2025 05:00 PM ET Company ParticipantsTed Fernandez - Chairman and CEORob Ramirez - CFOConference Call ParticipantsGeorge Sutton - AnalystVincent Colicchio - AnalystJeff Martin - Senior Research AnalystOperatorWelcome to The Hackett Group Third Quarter Earnings Conference Call. Your lines have been placed on listen-only mode until the question and answer session. Please be advised the conference is being recorded. Hosting tonight's call are ...

Financial Data and Key Metrics Changes - The company reported revenues before reimbursements of $72.2 million, a decrease of 7% compared to the prior year [14] - Adjusted earnings per share were $0.37, at the midpoint of quarterly guidance, compared to $0.43 in the prior year [20] - GAAP net income for the third quarter totaled $2.5 million, or diluted earnings per share of $0.09, down from $8.6 million, or $0.31 per diluted share in the previous year [18] Business Line Data and Key Metrics Changes - Global GS&BT segment revenues were $42.4 million, a decrease of 2% year-over-year, but excluding declines from OneStream and iPaaS, it was up over 4% [14][15] - Oracle Solutions segment revenues were $16.4 million, a decrease of 25% year-over-year due to prolonged decision-making [15] - SAP Solutions segment revenues increased by 4% to $13.4 million, driven by implementation services [15] Market Data and Key Metrics Changes - Approximately 23% of total revenues before reimbursements consist of recurring multi-year and subscription-based revenues [16] - The company’s Days Sales Outstanding (DSO) improved to 71 days from 73 days in the previous quarter [21] Company Strategy and Development Direction - The company is focusing on GenAI-enabled transformation, which is seen as a generational opportunity to change operational models and consulting service delivery [28][29] - The recent launch of version 4 of the AI Explorer platform is expected to enhance capabilities and attract new clients [5][29] - Strategic alliances are being pursued to expand growth opportunities, with ongoing discussions with potential partners [36][38] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand for digital transformation remains strong, economic concerns are causing organizations to assess competing priorities [28] - The company expects continued growth in GenAI revenues, particularly in Q4 and into 2026, despite some revenue declines in other segments [15][23] - Management anticipates that the integration of GenAI capabilities will lead to improved revenue growth margins and operational efficiencies [32] Other Important Information - The company announced a $40 million Dutch tender offer to repurchase approximately 8% of its common stock [10][22] - The board declared a fourth-quarter dividend of $0.12 per share, payable on January 9, 2026 [22] Q&A Session Summary Question: Can you provide an update on potential alliances? - Management expressed confidence in attracting one or two major alliance partners soon, especially following the release of version 4 [36][38] Question: What is the outlook for software licensing? - Licensing for version 4 is expected to begin late in Q4 or early Q1, with many current opportunities likely converting to AI Explorer licenses [48] Question: How is the GS&BT segment performing? - The GS&BT segment is primarily driven by strategy and business transformation initiatives, which are expected to contribute significantly to operating profits in the future [52] Question: Are there concerns about labor resources in GS&BT? - Management indicated no concerns regarding labor resources, citing productivity improvements from new platforms [60][62] Question: What differentiates version 4 from alternatives? - Version 4 offers enhanced capabilities in simulating and informing client-specific automation footprints, significantly improving ideation and solutioning processes [64][66]

Financial Data and Key Metrics Changes - The company reported revenues before reimbursements of $72.2 million, a decrease of 7% compared to the prior year [15] - Adjusted earnings per share were $0.37, which was at the midpoint of the quarterly guidance [5] - GAAP net income totaled $2.5 million or diluted earnings per share of $0.09, down from $8.6 million or $0.31 in the same quarter of the previous year [20] - Adjusted EBITDA was $15.3 million or 21.2% of revenues before reimbursements, compared to $17.7 million or 22.7% in the prior year [20] - Total company adjusted gross margin was 42.6%, down from 43.2% in the prior year [19] Business Line Data and Key Metrics Changes - Global SMT segment revenues were $42.4 million, a decrease of 2% year-over-year, but would have been up 4% excluding the OneStream practice and iPaaS contract [16] - Oracle Solutions segment revenues were $16.4 million, a decrease of 25% compared to the prior year, attributed to prolonged decision-making [17] - SAP Solutions segment revenues increased by 4% to $13.4 million, driven by implementation services [18] Market Data and Key Metrics Changes - Approximately 23% of total revenues before reimbursements consisted of recurring, multiyear, and subscription-based revenues [18] - The company expects continued momentum in GenAI-related revenues, particularly in the Global SMT segment [16] Company Strategy and Development Direction - The company is focusing on GenAI-enabled transformation, which is seen as a generational opportunity to change how consulting services are delivered [29] - The recent launch of version four of the AI Explorer platform has received positive feedback and is expected to enhance client engagement and pipeline activity [6][41] - Strategic alliances are being pursued to expand growth opportunities, with ongoing discussions with potential partners [40] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand for digital transformation remains strong, it is being impacted by economic concerns and the assessment of GenAI technologies [28] - The company anticipates that the integration of GenAI capabilities will significantly enhance service delivery and revenue growth margins [33] - Economic volatility and tariff distractions are affecting client decision-making, but there is an increasing desire to invest in digital transformation initiatives [56] Other Important Information - The company announced a $40 million Dutch tender offer to repurchase approximately 8% of its common stock [12][25] - The board declared a fourth-quarter dividend of $0.12 per share [23] Q&A Session Summary Question: Plans for alliances and potential partners - Management expressed confidence in attracting one or two major alliance partners soon, especially following the release of version four [40] Question: Software sales and recovery in Q4 - Management indicated that improved client engagement and pipeline activity are expected to help recover some of the weakness in software sales in Q4 [41] Question: Reason for Dutch auction - The Dutch auction was initiated to take advantage of stock repurchase opportunities during a volatile quarter, with a focus on being aggressive in buybacks [43][44] Question: Licensing progress for version four - Licensing for version four is expected to begin in late Q4 or early Q1, with many current opportunities anticipated to become licensees [49] Question: Trends within the Strategy and Business Transformation Group - The Strategy and Business Transformation Group is expected to drive a significant portion of total operating profits, particularly through GenAI initiatives [52] Question: Decision-making trends among clients - Management noted that while clients are making commitments, economic volatility is causing them to protect their spending, impacting decision-making [55]

Financial Data and Key Metrics Changes - Total revenues before reimbursements for Q3 2025 were $72.2 million, a decrease of 7% compared to the prior year [15] - Adjusted earnings per share for Q3 2025 were $0.37, at the midpoint of quarterly guidance [4] - GAAP net income for Q3 2025 was $2.5 million, or diluted earnings per share of $0.09, down from $8.6 million or $0.31 in the same quarter last year [19] - Adjusted EBITDA was $15.3 million, or 21.2% of revenues before reimbursements, compared to 22.7% in the prior year [19] Business Line Data and Key Metrics Changes - Global GS&BT segment revenues were $42.4 million, a decrease of 2% year-over-year, but would have increased by 4% excluding the OneStream practice and iPaaS contract [15][16] - Oracle Solutions segment revenues were $16.4 million, down 25% year-over-year due to prolonged decision-making [16] - SAP Solutions segment revenues were $13.4 million, an increase of 4% year-over-year, driven by implementation services [16] Market Data and Key Metrics Changes - Approximately 23% of total revenues before reimbursements consist of recurring multi-year and subscription-based revenues [17] - Days Sales Outstanding (DSO) improved to 71 days from 73 days in the previous quarter [21] Company Strategy and Development Direction - The company is focusing on GenAI-enabled transformation, which is seen as a generational opportunity to change operational and consulting service delivery [27][28] - The recent launch of version 4 of the AI Explorer platform is expected to enhance client engagement and pipeline activity [4][39] - Strategic alliances are being pursued to expand growth opportunities, with ongoing discussions with potential partners [34][35] Management's Comments on Operating Environment and Future Outlook - The demand for digital transformation remains strong but is impacted by economic concerns and decision-making delays [27] - The company expects continued growth in GenAI revenues, particularly in Q4 and into 2026 [16][39] - Management anticipates a decrease in available billing days in Q4 due to holiday schedules, estimating revenues before reimbursements to be in the range of $69.5-$71 million [23] Other Important Information - The company announced a $40 million Dutch tender offer to repurchase approximately 8% of its common stock [11][22] - Cash balances increased to $13.9 million at the end of Q3, up from $10.1 million in the previous quarter [21] Q&A Session Summary Question: Plans for alliances and partnerships - Management expressed confidence in attracting major alliance partners due to the capabilities demonstrated by version 4 of AI Explorer [34][35] Question: Licensing progress for ZBrain and Explorer - Licensing for version 4 is expected to begin late in Q4 or early Q1, with anticipated interest from current clients [41][42] Question: Trends within GS&BT segment - The strategy and business transformation group represents a significant portion of GS&BT revenues, with expectations for GenAI initiatives to drive future profits [43][44] Question: Decision-making trends among clients - Management noted that while clients are cautious about 2025 spending, there is an increasing willingness to invest in digital transformation initiatives [46] Question: Labor resources to meet AI demand - Management indicated that productivity improvements from new platforms will reduce reliance on headcount growth [47]