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

• Total revenue in the first quarter of 2025 was $77.9 million and revenue before reimbursements was $76.2 million near the high end of our guidance. This compares to total revenue of $77.2 million and revenue before reimbursements of $75.7 million in the first quarter of the prior year.
• GAAP diluted earnings per share was $0.11 in the first quarter of 2025, as compared to $0.32 in the first quarter of 2024. 2025 first quarter GAAP net income was impacted by non-cash compensation expense recognized in association with the stock price award program announced in September 2024 of $5.1 million, or $0.16 per diluted earnings per share. In addition, 2025 first quarter GAAP net income was also impacted by LeewayHertz acquisition related cash and non-cash compensation and related expenses of $2.4 million, or $0.07 per diluted earnings per share.
• Adjusted diluted earnings per share, a non-GAAP measure, for the first quarter of 2025 was $0.41, which came in at the high end of our guidance, as compared to $0.39 in the first quarter of 2024. Adjusted financial information is provided to enhance the understanding of the Company's financial performance and is reconciled to the Company's GAAP information in the accompanying tables.
• Cash flow from operations was $4.2 million for the first quarter of 2025, as compared to $2.8 million in the first quarter of 2024.
• As of March 28, 2025, the Company's cash balances were $9.2 million, with $18.0 million outstanding on the Company's credit facility. Additionally, during the quarter the Company repurchased 379 thousand shares of its stock at an average price of $30.93 for a total of $11.7 million. As of the end of the first quarter of 2025, the Company’s remaining share repurchase program authorization was $21.3 million.
• At its most recent meeting, the Company’s Board of Directors declared the second quarterly dividend of $0.12 per share for its shareholders of record on June 20, 2025, to be paid on July 7, 2025.

Business Outlook for the Second Quarter of 2025

Based on the Company’s current outlook:

• The Company estimates total revenue before reimbursements for the second quarter of 2025 will be in the range of $76.0 million to $77.5 million.
• The Company estimates adjusted diluted earnings per share for the second quarter of 2025 to be in the range of $0.37 and $0.39, assuming a GAAP effective tax rate of 27%.

Conference Call and Webcast Details

• On Tuesday, May 6, 2025, senior management will discuss first quarter results in a conference call at 5:00 P.M. ET. The number for the conference call is (800) 593-0486, [Passcode: First Quarter]. For International callers, please dial (517) 308-9371. Please dial in at least 5-10 minutes prior to start time. If you are unable to participate on the conference call, a rebroadcast will be available beginning at 8:00 P.M. ET on Tuesday, May 6, 2025 and will run through 5:00 P.M. ET on Tuesday, May 20, 2025. To access the rebroadcast, please dial (800) 839-8275. For International callers, please dial (203) 369-3606.
• In addition, The Hackett Group® will also be webcasting this conference call live. To participate, simply visit https://www.thehackettgroup.com approximately 10 minutes prior to the start of the call and click on the conference call link provided. An online replay of the call will be available after 8:00 P.M. ET on Tuesday, May 6, 2025 and will run through 5:00 P.M. ET on Tuesday, May 20, 2025. To access the replay, visit www.thehackettgroup.com.

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.
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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