The Hackett Group (HCKT) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenues before reimbursements reached $74.8 million, exceeding guidance but down from $77.5 million year-over-year, with adjusted EPS at $0.40, the high end of the range but below $0.47 in Q4 2024.

• Aggressive pivot to GenAI-enabled platforms, including AI Explorer, XT, AI X, and Ask Hackett, is driving new revenue streams and higher margins.

• GAAP diluted EPS rose to $0.21 from $0.12 year-over-year, impacted by non-cash compensation and acquisition-related expenses.

• Completed a Dutch auction tender offer, repurchasing 2.0–2.1 million shares for $41.2–$42 million, reducing outstanding shares by 7%.

• Cash flow from operations was $19.1 million, supporting dividends and buybacks.

Financial highlights

• Adjusted EBITDA was $15.9 million (21.3% margin), down from $19.5 million (25.2%) year-over-year.

• Total Q4 2025 revenue was $75.8 million (vs. $79.2 million in Q4 2024).

• Adjusted net income was $10.9 million; GAAP net income was $5.6 million.

• Cash balance at quarter-end was $18.2 million, up from $13.9 million in the prior quarter.

• Top 10 customers accounted for 23% of total revenue.

Outlook and guidance

• Q1 2026 revenues before reimbursements expected between $70.5M–$72M; SAP segment to grow year-over-year, S&BT and Oracle segments to be down year-over-year but up sequentially.

• Adjusted EPS guidance for Q1 2026 is $0.34–$0.36; adjusted gross margin expected at 44%–45%.

• AI transition charges of $1M–$1.5M expected in Q1 2026 due to headcount reductions.

• First quarterly dividend of $0.12 per share declared, payable April 3, 2026.