The Hackett Group(HCKT) - 2025 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2025 was $75.8 million, exceeding the high end of guidance, compared to $79.2 million in Q4 2024, representing a decrease of 5.4% year-over-year[4] - GAAP diluted earnings per share for Q4 2025 was $0.21, up from $0.12 in Q4 2024, reflecting a 75% increase[4] - Adjusted diluted earnings per share for Q4 2025 was $0.40, at the high end of guidance, compared to $0.47 in Q4 2024, a decrease of 14.9%[4] - GAAP net income for Q4 2025 was $5.592 million, compared to $3.564 million in Q4 2024, reflecting a year-over-year increase of 57.1%[18] - Adjusted net income for Q4 2025 was $10.862 million, compared to $13.566 million in Q4 2024, a decrease of 20.0%[18] - Total segment contribution for Q4 2025 was $21.259 million, down from $24.557 million in Q4 2024, a decrease of 13.3%[15] Revenue Breakdown - Revenue from Global S&BT segment in Q4 2025 was $38.615 million, a decline of 10.8% from $43.207 million in Q4 2024[15] - Oracle Solutions revenue decreased to $14.003 million in Q4 2025, down 19.0% from $17.408 million in Q4 2024[15] - SAP Solutions revenue increased to $22.202 million in Q4 2025, up 31.5% from $16.841 million in Q4 2024[15] - Total revenue for the fourth quarter of 2025 was $75.751 million, a 3% increase from $73.111 million in the previous quarter but a decrease of 4% compared to $79.235 million in the same quarter of 2024[23] - Revenue before reimbursements for the fourth quarter of 2025 was $74.820 million, up from $72.166 million in the previous quarter, but down from $77.456 million year-over-year[23] - The Oracle Solutions segment reported total revenue of $14.269 million, a decrease of 13% from $16.504 million in the previous quarter and a 21% decline from $18.174 million in the same quarter of 2024[23] - The SAP Solutions segment saw total revenue increase to $22.399 million, up 64% from $13.682 million in the previous quarter and up 30% from $17.184 million year-over-year[23] Share Repurchase and Dividends - The company repurchased 2.0 million shares for $41.2 million, reducing outstanding shares by approximately 7%[4] - The Board of Directors approved an additional $13.6 million for the share repurchase program and declared a quarterly dividend of $0.12 per share[5] - The company repurchased 2.032 million shares at an average price of $20.29 per share, totaling $41.223 million in the fourth quarter[23][24] - The remaining authorization for share repurchase is $11.368 million, down from $12.590 million in the previous quarter[23] - The company approved an additional $40.0 million to its share repurchase plan in the fourth quarter of 2025[24] Operational Metrics - Cash flows from operations in Q4 2025 were $19.1 million, down from $20.6 million in Q4 2024, a decline of 7.3%[4] - Cash provided by operating activities for the fourth quarter was $19.066 million, significantly higher than $11.395 million in the previous quarter but lower than $20.640 million in the same quarter of 2024[23] - Consultant headcount decreased slightly to 1,301 from 1,317 in the previous quarter, while total headcount remained relatively stable at 1,588[23] - Days sales outstanding (DSO) remained unchanged at 71 days compared to the previous quarter, but increased from 66 days year-over-year[23] Future Guidance - The company estimates total revenue before reimbursements for Q1 2026 to be in the range of $70.5 million to $72.0 million[8] - Adjusted diluted earnings per share for Q1 2026 is estimated to be between $0.34 and $0.36, assuming a GAAP effective tax rate of 26.3%[8] Asset and Liability Changes - Total assets increased to $204.641 million in Q4 2025, up from $191.877 million in Q4 2024, representing a growth of 6.5%[14] - Long-term debt increased significantly to $75.818 million in Q4 2025, compared to $12.734 million in Q4 2024[14] - Total liabilities rose to $136.541 million in Q4 2025, compared to $76.303 million in Q4 2024, an increase of 79.0%[14] Acquisition Impact - The company completed the LeewayHertz acquisition, which impacted GAAP net income by $1.1 million in non-cash compensation expenses[4]