The Hackett Group, Inc. reported fourth‑quarter 2025 results with total revenue of $75.8 million, a figure that falls 4.5% below the $79.2 million recorded in the same quarter last year. Adjusted diluted earnings per share came in at $0.40, beating the consensus estimate of $0.39 by $0.01 and placing the company at the high end of its own guidance.
Revenue decline was driven by a 20% drop in Oracle Solutions and a 11% decline in Global Strategy & Business Transformation, while SAP Solutions grew 32% to $12.5 million, offsetting some of the headwinds. The company’s total revenue before reimbursements was $74.8 million, exceeding the high end of its guidance and underscoring the resilience of its core consulting services.
Margin compression was evident: adjusted gross margin slipped to 46.6% from 47.7% in the prior year, and adjusted EBITDA margin fell to 21.3% from 25.2%. The decline reflects the company’s investment in Gen AI platform development and the associated transition costs, which have increased operating expenses while the mix of high‑margin platform contracts has not yet fully materialized.
For the first quarter of 2026, management guided revenue before reimbursements to $70.5 million–$72.0 million and adjusted diluted EPS to $0.34–$0.36, a downward revision from the previous $70–$73 million and $0.38–$0.40 ranges. The cautious outlook signals management’s concern about near‑term demand volatility and the ongoing costs of scaling its Gen AI initiatives.
The company completed a Dutch auction tender offer that repurchased approximately $41.2 million of shares and announced a 9% increase in its quarterly dividend, demonstrating confidence in its long‑term strategy and a commitment to returning value to shareholders.
Management highlighted the progress of its Gen AI‑enabled platform strategy. CEO Ted A. Fernandez said, "We reported operating results with revenues and adjusted earnings per share that were above and at the high end of our guidance, respectively. While we cannot control short‑term market sentiment or demand volatility, we can – and do – control the intrinsic value we create." He added, "The current environment also creates the opportunity for new leaders to emerge. Over the past two years, we have been systematically expanding our suite of Gen AI enabled platforms to lead in the rapidly emerging Agentic Enterprise era. By embedding our IP into our new platforms and models, we believe we will be able to generate new revenue with higher margins, in entirely new ways that allow us to deliver breakthrough ROI. We are looking forward to 2026!" CFO Rob Ramirez noted, "For the fourth quarter of 2025, our total revenues before reimbursements were $74.8 million, which exceeded the high end of our guidance." He also said, "We expect Q1 revenue to be up sequentially and gross margin to be up on a year‑over‑year basis and both to continue to increase throughout the year."
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