v3.26.1
Segment Information and Geographical Data
 3 Months Ended
Mar. 27, 2026
Segment Reporting [Abstract]  
Segment Information and Geographical Data

11. Segment Information and Geographical Data

The Company has organized its operating and internal reporting structure to align with its primary market solutions. In accordance with ASC 280, the Company determined it has three operating segments and three reportable segments: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions. Global S&BT includes the results of the Company’s strategic business consulting practices; Oracle Solutions includes the results of the Company’s Oracle EPM/ERP and AI Enablement practices; SAP Solutions includes the Company’s SAP applications and related SAP service offerings. The SAP Solutions reportable segment is the only segment that contains software-related revenue.

 

The Company’s chief operating decision maker (“CODM”), its Chief Executive Officer ("CEO"), reviews the financial information presented for purposes of allocating resources and evaluating segment financial performance. The CODM primarily uses revenue before reimbursement generated by the segment, cost of sales, gross margin, selling, general and administrative costs and contribution margin as a measure of profitability for each of its segments as these measures provide a comprehensive view of the segments’ financial performance. The measurement criteria for segment contribution is substantially the same for each reportable segment, excluding any unusual or infrequent items, if any. Unallocated costs include corporate costs related to the administrative functions that are performed in a centralized manner and that are not attributable to a particular segment, depreciation and amortization expense, interest expense, non-cash compensation expense and any non-recurring transactions. Segment information related to assets has been omitted as the CODM does not receive discrete financial information regarding assets at the segment level. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

 

11. Segment Information and Geographical Data (continued)

The tables below set forth information about the Company’s operating segments for the three months ended March 27, 2026 and March 28, 2025, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands):

 

 

 

 

Quarter Ended

 

 

 

March 27,

 

 

March 28,

 

 

 

2026

 

 

2025

 

Global S&BT:

 

 

 

 

 

 

Revenue before reimbursements*

 

$

36,370

 

 

$

42,642

 

Cost of sales

 

 

20,097

 

 

 

22,325

 

Gross margin

 

 

16,273

 

 

 

20,317

 

Selling, general and administrative costs

 

 

7,200

 

 

 

7,531

 

Segment contribution

 

 

9,073

 

 

 

12,786

 

Oracle Solutions:

 

 

 

 

 

 

Revenue before reimbursements*

 

$

15,448

 

 

$

20,396

 

Cost of sales

 

 

10,598

 

 

 

13,695

 

Gross margin

 

 

4,850

 

 

 

6,701

 

Selling, general and administrative costs

 

 

1,287

 

 

 

2,334

 

Segment contribution

 

 

3,563

 

 

 

4,367

 

SAP Solutions:

 

 

 

 

 

 

Revenue before reimbursements*

 

$

16,025

 

 

$

13,193

 

Cost of sales

 

 

8,852

 

 

 

7,139

 

Gross margin

 

 

7,173

 

 

 

6,054

 

Selling, general and administrative costs

 

 

2,210

 

 

 

1,804

 

Segment contribution

 

 

4,963

 

 

 

4,250

 

Total Company:

 

 

 

 

 

 

Total segment contribution margin

 

 

17,599

 

 

 

21,403

 

 

 

 

 

 

 

 

Items not allocated to segment level:

 

 

 

 

 

 

Corporate general and administrative expenses**

 

 

3,812

 

 

 

5,656

 

Non-cash stock based compensation expense***

 

 

2,396

 

 

 

2,765

 

Stock price award program compensation expense***

 

 

1,096

 

 

 

5,142

 

Acquisition-related cash compensation (reversal) expense****

 

 

(64

)

 

 

308

 

Acquisition-related non-cash stock based compensation (reversal) expense****

 

 

(2,013

)

 

 

1,765

 

Acquisition-related costs

 

 

-

 

 

 

194

 

Restructuring costs****

 

 

1,956

 

 

 

-

 

Depreciation expense

 

 

1,165

 

 

 

1,025

 

Amortization expense

 

 

315

 

 

 

145

 

Interest expense, net

 

 

1,008

 

 

 

202

 

Income before taxes

 

$

7,928

 

 

$

4,201

 

*Revenue before reimbursements excludes reimbursable expenses, which are project travel-related expenses passed through to a client with no associated operating margin.

**Corporate general and administrative expenses primarily include costs related to business support functions including accounting and finance, human resources, legal, information technology and office administration, as well as any foreign currency gains and losses. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits, which are disaggregated in the above table.

***See Note 7.

****Reversal of performance-based accruals related to the LeewayHertz acquisition.

*****Restructuring costs are not allocated to the segments.

 

11. Segment Information and Geographical Data (continued)

 

The tables below set forth information on the Company's geographical data. Total revenue, which is primarily based on the country of the contracting entity, was attributed to the following geographical areas (in thousands):

 

 

 

Quarter Ended

 

 

 

March 27,

 

 

March 28,

 

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

United States

 

$

55,798

 

 

$

64,011

 

Europe (U.K., Germany, France, Switzerland and Spain)

 

 

7,834

 

 

 

8,355

 

Other (Australia, Canada, India and Uruguay)

 

 

5,165

 

 

 

5,499

 

Total revenue

 

$

68,797

 

 

$

77,865

 

 

 

 

 

 

 

 

 

Long-lived assets are attributable to the following geographic areas (in thousands):

 

 

 

March 27,

 

 

December 26,

 

 

 

2026

 

 

2025

 

Long-lived assets:

 

 

 

 

 

 

United States

 

$

102,625

 

 

$

102,894

 

Europe (U.K., Germany, Spain and Netherlands)

 

 

15,760

 

 

 

15,848

 

Other (Australia, Canada, India and Uruguay)

 

 

2,341

 

 

 

2,022

 

Total long-lived assets

 

$

120,726

 

 

$

120,764

 

 

The domestic long-lived assets above include the Spend Matters intangible assets of $4.0 million. See Note 1 for additional information. As of March 27, 2026 and December 26, 2025, foreign assets included $14.9 million and $15.1 million, respectively, of goodwill related to acquisitions, of which $13.9 million and $14.1 million, respectively, were attributed to the U.K..