v3.26.1
Segment Information and Geographical Data
 6 Months Ended
Jun. 26, 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 quarter and six months ended June 26, 2026 and June 27, 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

 

 

Six Months Ended

 

 

 

June 26,

 

 

June 27,

 

 

June 26,

 

 

June 27,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Global S&BT:

 

 

 

 

 

 

 

 

 

 

 

 

Revenue before reimbursements*

 

$

35,589

 

 

$

43,611

 

 

$

71,959

 

 

$

86,253

 

Cost of sales

 

 

19,051

 

 

 

22,760

 

 

 

39,148

 

 

 

45,086

 

Gross margin

 

 

16,538

 

 

 

20,851

 

 

 

32,811

 

 

 

41,167

 

Selling, general and administrative costs

 

 

7,437

 

 

 

7,863

 

 

 

14,637

 

 

 

15,395

 

Segment contribution

 

 

9,101

 

 

 

12,988

 

 

 

18,174

 

 

 

25,772

 

Oracle Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Revenue before reimbursements*

 

$

15,317

 

 

$

20,494

 

 

$

30,765

 

 

$

40,890

 

Cost of sales

 

 

9,551

 

 

 

13,931

 

 

 

20,149

 

 

 

27,626

 

Gross margin

 

 

5,766

 

 

 

6,563

 

 

 

10,616

 

 

 

13,264

 

Selling, general and administrative costs

 

 

1,575

 

 

 

2,112

 

 

 

2,862

 

 

 

4,447

 

Segment contribution

 

 

4,191

 

 

 

4,451

 

 

 

7,754

 

 

 

8,817

 

SAP Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Revenue before reimbursements*

 

$

17,436

 

 

$

13,524

 

 

$

33,461

 

 

$

26,717

 

Cost of sales

 

 

9,563

 

 

 

7,713

 

 

 

18,415

 

 

 

14,851

 

Gross margin

 

 

7,873

 

 

 

5,811

 

 

 

15,046

 

 

 

11,866

 

Selling, general and administrative costs

 

 

2,285

 

 

 

1,919

 

 

 

4,495

 

 

 

3,723

 

Segment contribution

 

 

5,588

 

 

 

3,892

 

 

 

10,551

 

 

 

8,143

 

Total Company:

 

 

 

 

 

 

 

 

 

 

 

 

Total segment contribution margin

 

 

18,880

 

 

 

21,331

 

 

 

36,479

 

 

 

42,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items not allocated to segment level:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate general and administrative expenses**

 

 

4,976

 

 

 

5,248

 

 

 

8,788

 

 

 

10,902

 

Non-cash stock based compensation expense***

 

 

2,138

 

 

 

2,814

 

 

 

4,534

 

 

 

5,579

 

Stock price award program compensation expense***

 

 

1,643

 

 

 

5,142

 

 

 

2,739

 

 

 

10,285

 

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

 

 

-

 

 

 

308

 

 

 

(64

)

 

 

616

 

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

 

 

472

 

 

 

1,765

 

 

 

(1,541

)

 

 

3,530

 

Acquisition-related costs

 

 

-

 

 

 

194

 

 

 

-

 

 

 

387

 

Restructuring costs*****

 

 

492

 

 

 

-

 

 

 

2,448

 

 

 

-

 

Depreciation expense

 

 

1,148

 

 

 

1,034

 

 

 

2,313

 

 

 

2,059

 

Amortization expense

 

 

299

 

 

 

231

 

 

 

614

 

 

 

376

 

Interest expense, net

 

 

1,211

 

 

 

366

 

 

 

2,219

 

 

 

568

 

Income before taxes

 

$

6,501

 

 

$

4,229

 

 

$

14,429

 

 

$

8,430

 

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

 

11. Segment Information and Geographical Data (continued)

**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. See Note 12.

 

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

 

 

Six Months Ended

 

 

 

June 26,

 

 

June 27,

 

 

June 26,

 

 

June 27,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

56,213

 

 

$

62,697

 

 

$

112,011

 

 

$

126,708

 

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

 

 

7,311

 

 

 

8,858

 

 

 

15,145

 

 

 

17,213

 

Other (Australia, Canada, India and Uruguay)

 

 

5,804

 

 

 

7,344

 

 

 

10,969

 

 

 

12,843

 

Total revenue

 

$

69,328

 

 

$

78,899

 

 

$

138,125

 

 

$

156,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

June 26,

 

 

December 26,

 

 

 

2026

 

 

2025

 

Long-lived assets:

 

 

 

 

 

 

United States

 

$

103,200

 

 

$

102,894

 

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

 

 

15,813

 

 

 

15,848

 

Other (Australia, Canada, India and Uruguay)

 

 

2,754

 

 

 

2,022

 

Total long-lived assets

 

$

121,767

 

 

$

120,764

 

 

The domestic long-lived assets above include the LeewayHertz and Spend Matters intangible assets of $2.6 million. See Note 1 for additional information. As of June 26, 2026 and December 26, 2025, foreign assets included $14.8 million and $15.1 million, respectively, of goodwill related to acquisitions, of which $13.8 million and $14.1 million, respectively, were attributed to the U.K..