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Hackett Group, Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 17 February 2026: press release. Guidance figures: 3 new. The quarter’s numbers.

Key takeaways

  • Revenue above guided high end: Q4 revenue before reimbursements was $74.8 million, against $77.5 million a year earlier, and exceeded the high end of guidance. Total revenue was $75.8 million. Source
  • Adjusted EPS at guided high end: Adjusted diluted EPS was $0.40, at the high end of guidance, against $0.47 a year earlier. GAAP diluted EPS was $0.21, against $0.12. Source
  • SAP Solutions revenue grew: SAP Solutions revenue before reimbursements was $22.2 million, against $16.8 million a year earlier and $13.4 million in the third quarter. Source
  • Debt rose, cash higher: Cash was $18.2 million at December 26, 2025, against $16.4 million a year earlier. Credit facility borrowings were $76.0 million, up from $44.0 million at the end of the third quarter. Source
  • Dutch auction tender completed: The tender offer bought 2.0 million shares for $41.2 million, or $20.29 per share including fees, lowering outstanding shares by about 7%. Source
  • Platform expansion over two years: Management says the company has spent two years expanding its Gen AI-enabled platforms, aiming to lead in what it calls the Agentic Enterprise era. Source
  • Q1 revenue range below Q4 actual: The first-quarter 2026 revenue range of $70.5 million to $72.0 million compares with $74.8 million reported for the fourth quarter of 2025. Source

“We reported operating results with revenues and adjusted earnings per share that were above and at the high end of our guidance, respectively.”

Ted A. Fernandez, Chairman and CEO of The Hackett Group, Inc.

Guidance

AreaPeriodFigureAgainst last quarter
Revenue before reimbursements Sourcefirst quarter of 2026$70.5 million to $72.0 millionNew
Adjusted diluted EPS Sourcefirst quarter of 2026$0.34 and $0.36New
GAAP effective tax rate assumption Sourcefirst quarter of 202626.3%New

What changed from last quarter

  • New guidance: First-quarter 2026 revenue and adjusted EPS ranges were given; the prior release gave fourth-quarter 2025 ranges. Source
  • New: The Dutch auction tender offer, announced as planned in the third-quarter release, was completed in the fourth quarter of 2025. Source
  • New: After year-end, the Board approved an additional $13.6 million under the share repurchase program. Source
  • New: The company description now names XT, AIXelerator, AskHackett and Quantum Leap alongside AI XPLR and ZBrain, which the prior release listed. Source

Results and growth drivers

  • Revenue above guided high end: Q4 revenue before reimbursements was $74.8 million, against $77.5 million a year earlier, and exceeded the high end of guidance. Total revenue was $75.8 million. Source
  • Adjusted EPS at guided high end: Adjusted diluted EPS was $0.40, at the high end of guidance, against $0.47 a year earlier. GAAP diluted EPS was $0.21, against $0.12. Source
  • Full-year revenue lower: For 2025, revenue before reimbursements was $300.8 million, against $307.0 million in 2024. Source
  • Operating and net income higher: Q4 operating income was $9.1 million, against $7.7 million, and net income was $5.6 million, against $3.6 million. Source

Segment performance

  • Global S&BT revenue lower: Global S&BT revenue before reimbursements was $38.6 million, against $43.2 million a year earlier and $42.4 million in the third quarter. Segment contribution was $11.8 million, against $14.7 million. Source
  • Oracle Solutions revenue fell: Oracle Solutions revenue before reimbursements was $14.0 million, against $17.4 million, and segment contribution was $0.9 million, against $3.0 million. Full-year revenue was $71.2 million, against $82.5 million. Source
  • SAP Solutions revenue grew: SAP Solutions revenue before reimbursements was $22.2 million, against $16.8 million a year earlier and $13.4 million in the third quarter. Source
  • Total segment contribution lower: Total segment contribution was $21.3 million, against $24.6 million a year earlier. For 2025 it was $83.6 million, against $89.4 million. Source

“While we cannot control short-term market sentiment or demand volatility, we can - and do - control the intrinsic value we create,”

Ted A. Fernandez, Chairman and CEO of The Hackett Group, Inc.

Customers and revenue concentration

  • Top customer share lower: The top customer was 3% of total revenue, against 5% in the third quarter and 8% a year earlier. Source
  • Top five customers share lower: The top five customers were 13% of total revenue, against 17% in the third quarter and 21% a year earlier. Source
  • Top ten customers share lower: The top ten customers were 23% of total revenue, against 26% in the third quarter and 29% a year earlier. Source

Costs and non-GAAP items

  • Cost of service lower: Total cost of service was $44.1 million, against $48.0 million. Personnel costs before reimbursable expenses were $43.2 million, against $46.2 million. Source
  • Non-cash stock compensation lower: Non-cash stock-based compensation was $2.6 million in the quarter, against $3.3 million a year earlier. Source
  • Stock price award expense in quarter: Stock price award program expense was $1.8 million in the quarter, $0.08 per diluted share, and $16.8 million for 2025. Source
  • LeewayHertz acquisition charges: LeewayHertz acquisition-related non-cash compensation and related expenses were $1.1 million in the quarter, or $0.04 per diluted share. Source
  • Restructuring costs for 2025: Restructuring costs were $3.1 million for the twelve months of 2025, with none recorded in the fourth quarter. Source

“The current environment also creates the opportunity for new leaders to emerge.”

Ted A. Fernandez, Chairman and CEO of The Hackett Group, Inc.

Cash, debt and working capital

  • Debt rose, cash higher: Cash was $18.2 million at December 26, 2025, against $16.4 million a year earlier. Credit facility borrowings were $76.0 million, up from $44.0 million at the end of the third quarter. Source
  • Operating cash flow lower: Cash from operations was $19.1 million in the quarter, against $20.6 million a year earlier. Days sales outstanding was 71, against 66. Source
  • Capital expenditures higher: Capital expenditures were $2.0 million, against $1.0 million a year earlier and $2.4 million in the third quarter. Source

Share repurchases and dividend

  • Dutch auction tender completed: The tender offer bought 2.0 million shares for $41.2 million, or $20.29 per share including fees, lowering outstanding shares by about 7%. Source
  • Board added repurchase authority: After year-end the Board approved an additional $13.6 million under the share repurchase program. Remaining authorization at year-end was $11.4 million. Source
  • Quarterly dividend of $0.12 declared: The Board declared the first quarterly dividend of $0.12 per share for 2026. Source
  • Shares bought for employee vesting: 37 thousand shares were bought at an average $20.67 to satisfy employee net vesting obligations, for $0.8 million in total. Source

Gen AI strategy and platforms

  • Platform expansion over two years: Management says the company has spent two years expanding its Gen AI-enabled platforms, aiming to lead in what it calls the Agentic Enterprise era. Source
  • Benchmark coverage cited: Benchmark coverage cited is 97% of the Dow Jones Industrials, 90% of the Fortune 100, 68% of the DAX 40 and 53% of the FTSE 100, against 70% and 51% for the DAX and FTSE in the prior release. Source
  • Platform set broadened: The company description now names XT, AIXelerator, AskHackett and Quantum Leap, alongside AI XPLR and ZBrain. Source

First-quarter 2026 guidance

  • Q1 revenue range below Q4 actual: The first-quarter 2026 revenue range of $70.5 million to $72.0 million compares with $74.8 million reported for the fourth quarter of 2025. Source
  • EPS range and tax assumption: The adjusted EPS estimate of $0.34 to $0.36 compares with $0.40 in the fourth quarter and assumes a GAAP effective tax rate of 26.3%. Source

Headcount and people

  • Consultant headcount lower: Consultant headcount was 1,301, against 1,317 in the third quarter and 1,284 a year earlier. Source
  • Total headcount lower: Total headcount was 1,588, against 1,599 in the third quarter and 1,553 a year earlier. Source

Coming up, as management said on 17 February 2026

  • Dividend payment scheduled: The $0.12 quarterly dividend is to be paid on April 3, 2026, to shareholders of record on March 20, 2026. Source
  • New platforms expected to add revenue: Management believes embedding its IP into new platforms and models will generate new revenue with higher margins, in new ways. Source

Figures management reported

FigureReported
Consultant headcount Source1,301
Total headcount Source1,588
Top customer share of total revenue Source3%
Top ten customers share of total revenue Source23%

Risks management discussed

  • Demand: Management said it cannot control short-term market sentiment or demand volatility. Source

Earlier plans management reported on

  • Ahead: Management said fourth-quarter revenue before reimbursements exceeded the high end of the guidance range.
  • Met: Management said fourth-quarter adjusted diluted EPS was at the high end of the guidance range.
  • Met: The planned tender offer was completed, with 2.0 million shares repurchased for $41.2 million including fees. Source
  • Not stated: Management described its ongoing expansion of Gen AI platforms over the past two years. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.