| Segment Information and Geographical Data |
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):
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Quarter Ended |
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Nine Months Ended |
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September 25, |
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September 26, |
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September 25, |
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September 26, |
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2026 |
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2025 |
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2026 |
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|
2025 |
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Global S&BT: |
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Revenue before reimbursements (1) |
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$ |
36,619 |
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|
$ |
42,398 |
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|
$ |
108,578 |
|
|
$ |
128,651 |
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Cost of sales |
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|
19,299 |
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|
21,440 |
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|
58,448 |
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|
|
66,526 |
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Gross margin |
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|
17,320 |
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|
|
20,958 |
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|
|
50,130 |
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|
|
62,125 |
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Selling, general and administrative costs |
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|
6,528 |
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|
7,717 |
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|
21,165 |
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|
|
23,111 |
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Segment contribution |
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|
10,792 |
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|
|
13,241 |
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|
|
28,965 |
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|
39,014 |
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Oracle Solutions: |
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Revenue before reimbursements (1) |
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$ |
15,907 |
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$ |
16,353 |
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$ |
46,673 |
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$ |
57,243 |
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Cost of sales |
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|
9,751 |
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|
|
11,751 |
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|
|
29,899 |
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|
|
39,377 |
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Gross margin |
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|
6,156 |
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|
|
4,602 |
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|
|
16,774 |
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|
|
17,866 |
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Selling, general and administrative costs |
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|
1,141 |
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|
|
1,921 |
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|
4,004 |
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|
6,368 |
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Segment contribution |
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|
5,015 |
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|
2,681 |
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|
12,770 |
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|
11,498 |
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SAP Solutions: |
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Revenue before reimbursements (1) |
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$ |
16,408 |
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$ |
13,415 |
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$ |
49,869 |
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$ |
40,132 |
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Cost of sales |
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|
8,957 |
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|
|
8,183 |
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|
|
27,372 |
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|
|
23,035 |
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Gross margin |
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|
7,451 |
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|
|
5,232 |
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|
22,497 |
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|
17,097 |
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Selling, general and administrative costs |
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2,281 |
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|
1,569 |
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6,776 |
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|
5,293 |
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Segment contribution |
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|
5,170 |
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|
3,663 |
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|
15,721 |
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|
11,804 |
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Total Company: |
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Total segment contribution margin |
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20,977 |
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19,585 |
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57,456 |
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62,316 |
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Items not allocated to segment level: |
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Corporate general and administrative expenses (2) |
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5,568 |
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4,292 |
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|
14,356 |
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|
15,196 |
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Non-cash stock based compensation expense (3) |
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|
2,309 |
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|
2,694 |
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|
6,843 |
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|
8,272 |
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Stock price award program compensation expense (3) |
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|
1,442 |
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|
4,768 |
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|
4,181 |
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|
15,053 |
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Acquisition-related cash compensation (reversal) expense (4) |
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- |
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(540 |
) |
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|
(64 |
) |
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|
76 |
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Acquisition-related non-cash stock based compensation (reversal) expense (4) |
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|
1,333 |
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(1,574 |
) |
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(208 |
) |
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|
1,956 |
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Acquisition-related costs |
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- |
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|
11 |
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- |
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|
398 |
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Restructuring costs (5) |
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1,433 |
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|
3,112 |
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|
3,881 |
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|
3,112 |
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Depreciation expense |
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|
1,110 |
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|
1,052 |
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|
3,423 |
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|
3,111 |
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Amortization expense |
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|
297 |
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|
311 |
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|
911 |
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|
685 |
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Interest expense, net |
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|
1,154 |
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|
438 |
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|
3,373 |
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|
1,006 |
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Income before taxes |
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$ |
6,331 |
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$ |
5,021 |
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$ |
20,760 |
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$ |
13,451 |
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(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.
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| Geographic Revenue before Reimbursements |
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):
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Quarter Ended |
|
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Nine Months Ended |
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|
|
September 25, |
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|
September 26, |
|
|
September 25, |
|
|
September 26, |
|
|
|
2026 |
|
|
2025 |
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|
2026 |
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|
2025 |
|
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United States |
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$ |
53,289 |
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|
$ |
58,077 |
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|
$ |
165,300 |
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|
$ |
184,785 |
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Europe (U.K., Germany, France, Switzerland and Spain) |
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|
9,993 |
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|
8,366 |
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|
25,138 |
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|
25,579 |
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Other (Australia, Canada, India and Uruguay) |
|
|
6,508 |
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|
6,668 |
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|
|
17,477 |
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|
|
19,511 |
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Total revenue |
|
$ |
69,790 |
|
|
$ |
73,111 |
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|
$ |
207,915 |
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$ |
229,875 |
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