The Hackett Group(US:HCKT)2025-11-04 21:57Financial Performance - Total revenue for Q3 2025 was $73.1 million, down from $79.8 million in Q3 2024, representing a decrease of approximately 8.4% year-over-year[5] - GAAP diluted earnings per share for Q3 2025 was $0.09, compared to $0.31 in Q3 2024, reflecting a decline of 70.9%[5] - Adjusted diluted earnings per share for Q3 2025 was $0.37, down from $0.43 in Q3 2024, marking a decrease of 13.9%[5] - GAAP net income for the quarter was $2,547,000, a decline of 70.3% compared to $8,587,000 in the same quarter last year[20] - Adjusted net income for the quarter was $10,158,000, down from $12,138,000 year-over-year, reflecting a decrease of 16.3%[20] - Total revenue for the third quarter was $73,111,000, a decrease of 7.3% from $78,899,000 in the previous quarter and a decrease of 8.4% from $79,777,000 in the same quarter last year[25] Revenue Breakdown - Revenue for the Global S&BT segment was $42,398,000 for the quarter ended September 26, 2025, a decrease of 2.0% from $43,252,000 in the same quarter of 2024[17] - Oracle Solutions revenue decreased to $16,353,000, down 25.4% from $21,838,000 year-over-year[17] - SAP Solutions revenue increased to $13,415,000, up 4.3% from $12,859,000 in the prior year[17] - Revenue before reimbursements for Global S&BT segment was $42,398,000, down 2.8% from $43,611,000 in the previous quarter and down 2.0% from $43,252,000 year-over-year[25] - Oracle Solutions segment revenue before reimbursements was $16,353,000, a decline of 20.5% from $20,494,000 in the previous quarter and a decline of 25.0% from $21,838,000 year-over-year[25] - SAP Solutions segment revenue before reimbursements increased to $13,415,000, up 0.7% from $13,524,000 in the previous quarter and up 4.3% from $12,859,000 year-over-year[25] Cash and Shareholder Activities - The company reported cash balances of $13.9 million and $44.0 million outstanding on its credit facility as of September 26, 2025[5] - The company repurchased 1.1 million shares at an average price of $20.70, totaling $22.9 million, with $12.6 million remaining in the share repurchase program[5] - The company plans to launch a modified Dutch auction tender offer to purchase up to $40.0 million in common stock[5] - The company repurchased 839,000 shares at a cost of $17,405,000, with an average price per share of $20.73[25] Assets and Liabilities - Total assets increased to $200,657,000 as of September 26, 2025, up from $191,877,000 on December 27, 2024, representing a growth of approximately 4.0%[16] - Total current assets rose to $80,377,000, compared to $76,346,000 in the previous period, marking an increase of about 5.3%[16] - Total liabilities increased to $99,033,000, up from $76,303,000, indicating a rise of approximately 29.7%[16] - Shareholders' equity decreased to $101,624,000 from $115,574,000, representing a decline of about 12.1%[16] Future Projections - For Q4 2025, total revenue before reimbursements is estimated to be between $69.5 million and $71.0 million[6] - Adjusted diluted earnings per share for Q4 2025 is projected to be in the range of $0.38 to $0.40[6] Operational Metrics - Consultant headcount decreased to 1,317 from 1,382 in the previous quarter, while total headcount decreased to 1,599 from 1,685[25] - Cash provided by operating activities increased significantly to $11,395,000 from $5,649,000 in the previous quarter and $10,578,000 year-over-year[25] - Capital expenditures for the quarter were $2,405,000, up from $1,910,000 in the previous quarter and $1,229,000 year-over-year[25] - Days sales outstanding (DSO) improved to 71 days from 73 days in the previous quarter[25] - The top customer accounted for 5% of total revenue, down from 7% in the previous quarter and 13% year-over-year[25] Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.12 per share, payable on January 9, 2026[5] Product Development - The release of AI XPLR V4 in September received positive feedback, enhancing client attraction and expected growth in Gen AI revenues[3]