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The Hackett Group Announces First Quarter 2025 Results

The Hackett Group, Inc. (NASDAQ: HCKT), a leading generative artificial intelligence (Gen AI) consultancy and executive advisory firm that enables Digital World Class® performance, today announced it...

Autore: Business Wire

The Hackett Group Announces First Quarter 2025 Results

MIAMI: The Hackett Group, Inc. (NASDAQ: HCKT), a leading generative artificial intelligence (Gen AI) consultancy and executive advisory firm that enables Digital World Class® performance, today announced its financial results for the first quarter, which ended on March 28, 2025.

“We reported operating results that were near and at the high end of our revenue and adjusted earnings per share guidance, respectively. This was achieved while aggressively investing and growing our Gen AI platforms and revenues. More importantly, we released AI XPLR version 3 which allows us to identify thousands of industry specific Gen AI solutions and related multi-agent workflows which accelerates client prioritization and custom design of the client use cases,” stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. “We believe continued AI XPLR innovation and our advanced Gen AI implementation capabilities will allow us to develop significant channel partner relationships that should help accelerate our growth in this rapidly growing area.”

Financial Highlights

Business Outlook for the Second Quarter of 2025

Based on the Company’s current outlook:

Conference Call and Webcast Details

Use of Non-GAAP Financial Measures

The Company provides adjusted earnings results (which excluded non-cash stock-based compensation expense, acquisition-related cash and non-cash stock-based compensation expense, acquisition related costs, amortization expense, legal settlement and related costs and includes a GAAP tax rate) as a complement to results provided in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP results are provided to enhance the users' overall understanding of the Company's current financial performance and its prospects for the future. The Company believes the non-GAAP results provide useful information to both management and investors and by excluding certain expenses that it believes are not indicative of its core operating results. The non-GAAP measures are included to provide investors and management with an alternative method for assessing operating results in a manner that is focused on the performance of its ongoing primary operations and to provide a consistent basis for comparison between quarters. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting. The presentation of this additional non-GAAP information should be considered in addition to, and not as a substitute for or superior to, any results prepared in accordance with GAAP. See the reconciliation of actual results titled “Reconciliation of GAAP to Non-GAAP Measures” in the accompanying tables.

About The Hackett Group®

The Hackett Group, Inc. (NASDAQ: HCKT) is an IP and platform-based, Gen AI strategic consulting and executive advisory firm that enables Digital World Class® performance. Using AI XPLR™ and ZBrain™ – our ideation through implementation platforms – our experienced professionals help organizations realize the power of Gen AI and achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.

Our expertise is grounded in unparalleled best practices insights from benchmarking the world’s leading businesses – including 97% of the Dow Jones Industrials, 90% of the Fortune 100, 70% of the DAX 40 and 51% of the FTSE 100. Visit us at www.thehackettgroup.com.

Trademarks

The Hackett Group®, quadrant logo, and Digital World Class® are the registered marks of The Hackett Group®.

Cautionary Statement Regarding “Forward-Looking” Statements

This release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that may impact such forward-looking statements include without limitation, the ability of The Hackett Group to effectively market its digital transformation, our ability to transition our capabilities to support generative artificial intelligence (AI)-related consulting services and solutions and other consulting services, our ability to effectively integrate acquisitions, including the LeewayHertz acquisition into our operations, our ability to manage joint ventures and successfully cooperate with our joint venture partners, competition from other consulting and technology companies that may have or develop in the future, similar offerings, the commercial viability of The Hackett Group and its services as well as other risk detailed in The Hackett Group’s reports filed with the United States Securities and Exchange Commission. The Hackett Group does not undertake any duty to update this release or any forward-looking statements contained herein.

The Hackett Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

Quarter Ended

March 28,

 

March 29,

2025

2024

Revenue:
Revenue before reimbursements

$

76,231

 

$

75,727

 

Reimbursements

 

1,634

 

 

1,460

 

Total revenue

 

77,865

 

 

77,187

 

 
Costs and expenses:
Cost of service:
Personnel costs before reimbursable expenses (includes $4,928 and $1,393 of non-cash stock based compensation expense in the quarters ended March 28, 2025 and March 29, 2024, respectively)

 

48,380

 

 

45,771

 

Reimbursable expenses

 

1,634

 

 

1,460

 

Total cost of service

 

50,014

 

 

47,231

 

 
Selling, general and administrative costs (includes $4,744 and $1,206 of non-cash stock based compensation expense in the quarters ended March 28, 2025 and March 29, 2024, respectively)

 

23,448

 

 

18,329

 

Legal settlement and related costs

 

-

 

 

102

 

Total costs and operating expenses

 

73,462

 

 

65,662

 

 
Operating income

 

4,403

 

 

11,525

 

 
Other expense, net:
Interest expense, net

 

(202

)

 

(472

)

 
Income before income taxes

 

4,201

 

 

11,053

 

Income tax expense

 

1,058

 

 

2,322

 

Net income

$

3,143

 

$

8,731

 

 
Basic net income per common share:
Income per common share

$

0.11

 

$

0.32

 

Weighted average common shares outstanding

 

27,587

 

 

27,422

 

 
Diluted net income per common share:
Income per common share

$

0.11

 

$

0.32

 

Weighted average common and common equivalent shares outstanding

 

28,385

 

 

27,676

 

The Hackett Group, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

March 28,

 

December 27,

2025

 

2024

ASSETS
Current assets:
Cash

$

9,179

$

16,366

Accounts receivable and contract assets, net

 

62,555

 

57,079

Prepaid expenses and other current assets

 

3,267

 

2,901

Total current assets

 

75,001

 

76,346

Property and equipment, net

 

20,868

 

20,343

Other assets

 

367

 

350

Intangible assets

 

2,165

 

2,312

Goodwill

 

90,221

 

89,782

Operating lease right-of-use assets

 

3,138

 

2,744

Total assets

$

191,760

$

191,877

 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable

$

4,916

$

6,503

Accrued expenses and other liabilities

 

23,844

 

30,789

Contract liabilities

 

14,919

 

11,118

Income tax payable

 

2,352

 

3,753

Operating lease liabilities

 

1,161

 

965

Total current liabilities

 

47,192

 

53,128

Long-term deferred tax liability, net

 

10,433

 

8,464

Long-term debt

 

17,755

 

12,734

Operating lease liabilities

 

1,965

 

1,977

Total liabilities

 

77,345

 

76,303


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