v3.26.3
Segment Information and Geographical Data
 9 Months Ended
Sep. 25, 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; 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 nine months ended September 25, 2026 and September 26, 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

 

 

Nine Months Ended

 

 

 

September 25,

 

 

September 26,

 

 

September 25,

 

 

September 26,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Global S&BT:

 

 

 

 

 

 

 

 

 

 

 

 

Revenue before reimbursements (1)

 

$

36,619

 

 

$

42,398

 

 

$

108,578

 

 

$

128,651

 

Cost of sales

 

 

19,299

 

 

 

21,440

 

 

 

58,448

 

 

 

66,526

 

Gross margin

 

 

17,320

 

 

 

20,958

 

 

 

50,130

 

 

 

62,125

 

Selling, general and administrative costs

 

 

6,528

 

 

 

7,717

 

 

 

21,165

 

 

 

23,111

 

Segment contribution

 

 

10,792

 

 

 

13,241

 

 

 

28,965

 

 

 

39,014

 

Oracle Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Revenue before reimbursements (1)

 

$

15,907

 

 

$

16,353

 

 

$

46,673

 

 

$

57,243

 

Cost of sales

 

 

9,751

 

 

 

11,751

 

 

 

29,899

 

 

 

39,377

 

Gross margin

 

 

6,156

 

 

 

4,602

 

 

 

16,774

 

 

 

17,866

 

Selling, general and administrative costs

 

 

1,141

 

 

 

1,921

 

 

 

4,004

 

 

 

6,368

 

Segment contribution

 

 

5,015

 

 

 

2,681

 

 

 

12,770

 

 

 

11,498

 

SAP Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Revenue before reimbursements (1)

 

$

16,408

 

 

$

13,415

 

 

$

49,869

 

 

$

40,132

 

Cost of sales

 

 

8,957

 

 

 

8,183

 

 

 

27,372

 

 

 

23,035

 

Gross margin

 

 

7,451

 

 

 

5,232

 

 

 

22,497

 

 

 

17,097

 

Selling, general and administrative costs

 

 

2,281

 

 

 

1,569

 

 

 

6,776

 

 

 

5,293

 

Segment contribution

 

 

5,170

 

 

 

3,663

 

 

 

15,721

 

 

 

11,804

 

Total Company:

 

 

 

 

 

 

 

 

 

 

 

 

Total segment contribution margin

 

 

20,977

 

 

 

19,585

 

 

 

57,456

 

 

 

62,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items not allocated to segment level:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate general and administrative expenses (2)

 

 

5,568

 

 

 

4,292

 

 

 

14,356

 

 

 

15,196

 

Non-cash stock based compensation expense (3)

 

 

2,309

 

 

 

2,694

 

 

 

6,843

 

 

 

8,272

 

Stock price award program compensation expense (3)

 

 

1,442

 

 

 

4,768

 

 

 

4,181

 

 

 

15,053

 

Acquisition-related cash compensation (reversal) expense (4)

 

 

-

 

 

 

(540

)

 

 

(64

)

 

 

76

 

Acquisition-related non-cash stock based compensation (reversal) expense (4)

 

 

1,333

 

 

 

(1,574

)

 

 

(208

)

 

 

1,956

 

Acquisition-related costs

 

 

-

 

 

 

11

 

 

 

-

 

 

 

398

 

Restructuring costs (5)

 

 

1,433

 

 

 

3,112

 

 

 

3,881

 

 

 

3,112

 

Depreciation expense

 

 

1,110

 

 

 

1,052

 

 

 

3,423

 

 

 

3,111

 

Amortization expense

 

 

297

 

 

 

311

 

 

 

911

 

 

 

685

 

Interest expense, net

 

 

1,154

 

 

 

438

 

 

 

3,373

 

 

 

1,006

 

Income before taxes

 

$

6,331

 

 

$

5,021

 

 

$

20,760

 

 

$

13,451

 

(1) 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)

(2) 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.

(3) See Note 7.

(4) Reversal of performance-based accruals related to the LeewayHertz acquisition.

(5) 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

 

 

Nine Months Ended

 

 

 

September 25,

 

 

September 26,

 

 

September 25,

 

 

September 26,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

53,289

 

 

$

58,077

 

 

$

165,300

 

 

$

184,785

 

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

 

 

9,993

 

 

 

8,366

 

 

 

25,138

 

 

 

25,579

 

Other (Australia, Canada, India and Uruguay)

 

 

6,508

 

 

 

6,668

 

 

 

17,477

 

 

 

19,511

 

Total revenue

 

$

69,790

 

 

$

73,111

 

 

$

207,915

 

 

$

229,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

September 25,

 

 

December 26,

 

 

 

2026

 

 

2025

 

Long-lived assets:

 

 

 

 

 

 

United States

 

$

103,925

 

 

$

102,894

 

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

 

 

15,989

 

 

 

15,848

 

Other (Australia, Canada, India and Uruguay)

 

 

3,176

 

 

 

2,022

 

Total long-lived assets

 

$

123,090

 

 

$

120,764

 

 

The domestic long-lived assets above include the LeewayHertz and Spend Matters intangible assets of $2.3 million. See Note 1 for additional information. As of September 25, 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.