The Hackett Group Announces Second Quarter 2026 Results
MIAMI, FL (August 4, 2026) - The Hackett Group, Inc. (NASDAQ: HCKT), a leading AI strategic consulting and digital transformation firm that enables Digital World Class® performance, today announced its financial results for the second quarter, which ended on June 26, 2026.
"While our second quarter reflected the ongoing transition of our business model, our third-quarter outlook marks what we believe is an important operational and financial inflection point," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. "Based on recent platform-led wins exceeding $30 million, and growing demand for AI-enabled transformation services, we expect both sequential revenue growth and year-over-year adjusted EPS growth in the third quarter. The positive market response to our platforms reinforces our conviction that enterprises are seeking trusted, outcome-oriented solutions that accelerate value realization while reducing transformation risk and positioning us to drive strong operating results and long-term shareholder value."
Financial Highlights
▪Total revenue in the second quarter of 2026 was $69.3 million and revenue before reimbursements was $68.3 million. This compares to total revenue of $78.9 million and revenue before reimbursements of $77.6 million in the second quarter of the prior year.
▪GAAP diluted earnings per share was $0.18 in the second quarter of 2026, as compared to $0.06 in the second quarter of 2025.
▪Adjusted diluted earnings per share, a non-GAAP measure, for the second quarter of 2026 was $0.34, which was at the mid-point of our guidance range, as compared to $0.38 in the second quarter of 2025. 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.
▪Strong cash flows provided by operations were $15.2 million in the second quarter of 2026, which allowed us to reduce our net debt position by $6.1 million, buy back $4.0 million of the Company’s stock and pay dividends of $3.0 million. As of June 26, 2026, the Company’s cash balances were $14.2 million, with $81.0 million outstanding on the Company’s credit facility. Additionally, the Company had $18.1 million available under its share repurchase plan.
▪On August 3, 2026, the Company amended and restated its credit facility to extend the maturity date and increase the borrowing capacity to $125 million.
▪Subsequent to the end of the second quarter, the Company's Board of Directors declared the third quarterly dividend of $0.12 per share for its shareholders of record on September 18, 2026, to be paid on October 2, 2026.
Business Outlook for the Third Quarter of 2026
Based on the Company's current outlook:
▪The Company estimates total revenue before reimbursements for the third quarter of 2026 will be in the range of $68.0 million to $70.0 million.
▪The Company estimates adjusted diluted earnings per share for the third quarter of 2026 to be in the range of $0.37 and $0.39, assuming a GAAP effective tax rate of 26.5%.
Conference Call and Webcast Details
On Tuesday, August 4, 2026, senior management will discuss second quarter results in a conference call at 5:00 P.M. ET. The number for the conference call is (800) 593-0486, [Passcode: Second 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, August 4, 2026 and will run through 5:00 P.M. ET on Tuesday, August 18, 2026. To access the rebroadcast, please dial (800) 835-4610. For International callers, please dial (203) 369-3352.
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, August 4, 2026 and will run through 5:00 P.M. ET on Tuesday, August 18, 2026. To access the replay, visit www.thehackettgroup.com.
Use of Non-GAAP Financial Measures
The Company provides adjusted earnings results (which excludes non-cash stock based compensation expense, stock price award program compensation expense, acquisition-related cash and non-cash stock based compensation expense, amortization expense, acquisition related costs and any one-time 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.
The Company believes that the presentation of non-GAAP financial information on a forward-looking basis, including the guidance contained in this release, provides important supplemental information to management and investors regarding its anticipated results of operations. The Company is unable to provide a reconciliation of GAAP measures to corresponding forward-looking non-GAAP measures without unreasonable effort due to the high variability and low visibility of most of the items that have been excluded from these non-GAAP measures. For example, non-cash stock-based compensation expense is impacted by the Company's future hiring needs, the type and volume of equity awards necessary for such future hiring, and the price at which the Company's stock will trade in those future periods. In addition, the provision or benefit for income taxes is impacted by non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions. The effects of these reconciling items may be significant, as the items that are being excluded are difficult to predict.
About The Hackett Group®
The Hackett Group, Inc. (NASDAQ: HCKT) is an AI strategic consulting and digital transformation firm
that enables Digital World Class® performance. Using Hackett AI XPLR™, ZBrain™, XT™, AIXelerator™,
AskHackett™, and Quantum Leap® platforms, the company's experienced professionals and engineers
help organizations realize the power of Gen AI from ideation through implementation to achieve
quantifiable, breakthrough results with unprecedented speed, allowing it to be key architects of their Gen
AI journey. The company's expertise is grounded in unparalleled best practices insights from enterprise
performance benchmarks from the world's leading businesses - including 97% of the Dow Jones
Industrials, 90% of the Fortune 100, 68% of the DAX 40 and 53% of the FTSE 100. Visit us at
www.thehackettgroup.com/.
# # #
Trademarks
The Hackett Group®, quadrant logo, Digital World Class® and Quantum Leap® 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 could impact such forward-looking statements include, among others, changes in worldwide and U.S. economic conditions that impact business confidence and the demand for our products and services, our ability to transition our capabilities to support generative artificial intelligence (AI)-related consulting services and solutions, our ability to effectively integrate acquisitions, including the Leeway acquisition, into our operations, our ability to manage joint ventures and successfully cooperate with our joint venture partners, our ability to retain existing business, our ability to attract additional business, our ability to effectively market and sell our product offerings and other services, the timing of projects and the potential for contract cancellation by our customers, changes in expectations regarding the business consulting and information technology industries, our ability to attract and retain skilled employees, possible changes in collections of accounts receivable due to the bankruptcy or financial difficulties of our customers, risks of competition, price and margin trends, foreign currency fluctuations, the impact of the geopolitical conflict involving Russia and Ukraine and in the Middle East on our business and changes in general economic conditions, interest rates and our ability to obtain additional debt financing if needed 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.
Contact
Robert A. Ramirez, CFO, 305-375-8005 or rramirez@thehackettgroup.com
The Hackett Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
Six Months Ended |
|
|
|
June 26, |
|
|
June 27, |
|
|
June 26, |
|
|
June 27, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue before reimbursements |
|
$ |
68,342 |
|
|
$ |
77,629 |
|
|
$ |
136,185 |
|
|
$ |
153,860 |
|
Reimbursements |
|
|
986 |
|
|
|
1,270 |
|
|
|
1,940 |
|
|
|
2,904 |
|
Total revenue |
|
|
69,328 |
|
|
|
78,899 |
|
|
|
138,125 |
|
|
|
156,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service: |
|
|
|
|
|
|
|
|
|
|
|
|
Personnel costs before reimbursable expenses (includes $2,460 and $1,871 and $4,985 and $9,913 of non-cash stock based compensation expense in the three and six months ended June 26, 2026 and June 27, 2025, respectively) |
|
|
40,632 |
|
|
|
49,672 |
|
|
|
79,137 |
|
|
|
98,052 |
|
Reimbursable expenses |
|
|
986 |
|
|
|
1,270 |
|
|
|
1,940 |
|
|
|
2,904 |
|
Total cost of service |
|
|
41,618 |
|
|
|
50,942 |
|
|
|
81,077 |
|
|
|
100,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative costs (includes $1,793 and $3,861 and $4,736 and $9,480 of non-cash stock based compensation expense in the three and six months ended June 26, 2026 and June 27, 2025, respectively) |
|
|
19,506 |
|
|
|
23,362 |
|
|
|
37,952 |
|
|
|
46,810 |
|
Restructuring costs |
|
|
492 |
|
|
|
- |
|
|
|
2,448 |
|
|
|
- |
|
Total costs and operating expenses |
|
|
61,616 |
|
|
|
74,304 |
|
|
|
121,477 |
|
|
|
147,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
7,712 |
|
|
|
4,595 |
|
|
|
16,648 |
|
|
|
8,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(1,211 |
) |
|
|
(366 |
) |
|
|
(2,219 |
) |
|
|
(568 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
6,501 |
|
|
|
4,229 |
|
|
|
14,429 |
|
|
|
8,430 |
|
Income tax expense |
|
|
2,092 |
|
|
|
2,568 |
|
|
|
5,739 |
|
|
|
3,626 |
|
Net income |
|
$ |
4,409 |
|
|
$ |
1,661 |
|
|
$ |
8,690 |
|
|
$ |
4,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share |
|
$ |
0.18 |
|
|
$ |
0.06 |
|
|
$ |
0.35 |
|
|
$ |
0.17 |
|
Weighted average common shares outstanding |
|
|
25,064 |
|
|
|
27,602 |
|
|
|
25,115 |
|
|
|
27,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Income per common share |
|
$ |
0.18 |
|
|
$ |
0.06 |
|
|
$ |
0.34 |
|
|
$ |
0.17 |
|
Weighted average common and common equivalent shares outstanding |
|
|
25,166 |
|
|
|
28,482 |
|
|
|
25,212 |
|
|
|
28,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Hackett Group, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
June 26, |
|
|
December 27, |
|
|
|
2026 |
|
|
2025 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
|
$ |
14,162 |
|
|
$ |
18,197 |
|
Accounts receivable and contract assets, net |
|
|
61,900 |
|
|
|
59,505 |
|
Prepaid expenses and other current assets |
|
|
8,444 |
|
|
|
6,175 |
|
Total current assets |
|
|
84,506 |
|
|
|
83,877 |
|
Property, software and equipment, net |
|
|
26,584 |
|
|
|
24,011 |
|
Other assets |
|
|
358 |
|
|
|
358 |
|
Intangible assets |
|
|
2,572 |
|
|
|
3,252 |
|
Goodwill |
|
|
90,080 |
|
|
|
90,659 |
|
Operating lease right-of-use assets |
|
|
2,173 |
|
|
|
2,484 |
|
Deferred tax asset |
|
|
2,336 |
|
|
|
1,806 |
|
Total assets |
|
$ |
208,609 |
|
|
$ |
206,447 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
5,246 |
|
|
$ |
6,295 |
|
Accrued expenses and other liabilities |
|
|
23,797 |
|
|
|
28,824 |
|
Contract liabilities |
|
|
13,287 |
|
|
|
12,317 |
|
Income tax payable |
|
|
- |
|
|
|
74 |
|
Operating lease liabilities |
|
|
1,292 |
|
|
|
1,259 |
|
Total current liabilities |
|
|
43,622 |
|
|
|
48,769 |
|
Deferred tax liability |
|
|
15,072 |
|
|
|
12,537 |
|
Long-term debt |
|
|
80,852 |
|
|
|
75,818 |
|
Operating lease liabilities |
|
|
881 |
|
|
|
1,223 |
|
Total liabilities |
|
|
140,427 |
|
|
|
138,347 |
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
68,182 |
|
|
|
68,100 |
|
Total liabilities and shareholders' equity |
|
$ |
208,609 |
|
|
$ |
206,447 |
|
The Hackett Group, Inc.
SUPPLEMENTAL FINANCIAL DATA
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
June 26, |
|
|
March 27, |
|
|
June 27, |
|
|
|
2026 |
|
|
2026 |
|
|
2025 |
|
Segment Total Revenue and Revenue Before Reimbursements (in thousands): |
|
|
|
|
|
|
|
|
|
Global S&BT: |
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
36,036 |
|
|
$ |
36,775 |
|
|
$ |
44,205 |
|
Reimbursements |
|
|
447 |
|
|
|
405 |
|
|
|
594 |
|
Revenue before reimbursements |
|
$ |
35,589 |
|
|
$ |
36,370 |
|
|
$ |
43,611 |
|
|
|
|
|
|
|
|
|
|
|
Oracle Solutions: |
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
15,481 |
|
|
$ |
15,685 |
|
|
$ |
20,801 |
|
Reimbursements |
|
|
164 |
|
|
|
237 |
|
|
|
307 |
|
Revenue before reimbursements |
|
$ |
15,317 |
|
|
$ |
15,448 |
|
|
$ |
20,494 |
|
|
|
|
|
|
|
|
|
|
|
SAP Solutions: |
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
17,811 |
|
|
$ |
16,337 |
|
|
$ |
13,893 |
|
Reimbursements |
|
|
375 |
|
|
|
312 |
|
|
|
369 |
|
Revenue before reimbursements |
|
$ |
17,436 |
|
|
$ |
16,025 |
|
|
$ |
13,524 |
|
|
|
|
|
|
|
|
|
|
|
Total segment revenue: |
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
69,328 |
|
|
$ |
68,797 |
|
|
$ |
78,899 |
|
Reimbursements |
|
|
986 |
|
|
|
954 |
|
|
|
1,270 |
|
Revenue before reimbursements |
|
$ |
68,342 |
|
|
$ |
67,843 |
|
|
$ |
77,629 |
|
|
|
|
|
|
|
|
|
|
|
Revenue Concentration: |
|
|
|
|
|
|
|
|
|
(% of total revenue) |
|
|
|
|
|
|
|
|
|
Top customer |
|
|
3 |
% |
|
|
4 |
% |
|
|
7 |
% |
Top 5 customers |
|
|
13 |
% |
|
|
13 |
% |
|
|
19 |
% |
Top 10 customers |
|
|
23 |
% |
|
|
22 |
% |
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
Key Metrics and Other Financial Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company: |
|
|
|
|
|
|
|
|
|
Consultant headcount |
|
|
1,211 |
|
|
|
1,247 |
|
|
|
1,382 |
|
Total headcount |
|
|
1,491 |
|
|
|
1,535 |
|
|
|
1,685 |
|
Days sales outstanding (DSO) (1) |
|
|
56 |
|
|
|
67 |
|
|
|
54 |
|
Cash (used by) provided by operating activities (in thousands) |
|
|
15,160 |
|
|
$ |
(5,067 |
) |
|
$ |
5,649 |
|
Depreciation (in thousands) |
|
|
1,148 |
|
|
$ |
1,165 |
|
|
$ |
1,034 |
|
Amortization (in thousands) |
|
|
299 |
|
|
$ |
315 |
|
|
$ |
231 |
|
Capital expenditures (in thousands) |
|
|
2,575 |
|
|
$ |
2,414 |
|
|
$ |
1,910 |
|
|
|
|
|
|
|
|
|
|
|
Remaining Plan authorization: |
|
|
|
|
|
|
|
|
|
Shares purchased (in thousands) |
|
|
372 |
|
|
|
212 |
|
|
|
177 |
|
Cost of shares repurchased (in thousands) |
|
$ |
3,928 |
|
|
$ |
2,966 |
|
|
$ |
4,320 |
|
Average price per share of shares purchased |
|
$ |
10.56 |
|
|
$ |
14.00 |
|
|
$ |
24.47 |
|
Remaining Plan authorization (in thousands) |
|
$ |
18,106 |
|
|
$ |
22,034 |
|
|
$ |
16,996 |
|
|
|
|
|
|
|
|
|
|
|
Shares Purchased to Satisfy Employee Net Vesting Obligations: |
|
|
|
|
|
|
|
|
|
Shares purchased (in thousands) |
|
|
5 |
|
|
|
121 |
|
|
|
3 |
|
Cost of shares purchased (in thousands) |
|
$ |
57 |
|
|
$ |
1,666 |
|
|
$ |
88 |
|
Average price per share of shares purchased |
|
$ |
12.14 |
|
|
$ |
13.84 |
|
|
$ |
25.77 |
|
|
|
(1) Given the increase in Value Added Reseller (VAR) revenue over the last two years, which carries multi-year terms, the DSO calculation has been revised to exclude the related revenue and accounts receivables. |
|
|
|
WWW.THEHACKETTGROUP.COM