The Hackett Group(US:HCKT)2025-11-05 22:09Revenue 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].