Q4 2025 Hackett Group Inc Earnings Call Transcript
Key Points
- The Hackett Group Inc (HCKT) reported revenues before reimbursements of $74.8 million and adjusted earnings per share of $0.40, which were above and at the high end of their quarterly guidance, respectively.
- The company has been systematically expanding its suite of Gen AI enabled platforms, which are expected to generate new revenue with higher margins.
- The AI Explorer platform, now in its fifth version, is licensable and offers distinct capabilities in enterprise-wide solution stimulation and ideation.
- The Hackett Group Inc (HCKT) has introduced new platforms like XT and AIX to support business transformation and enterprise application implementation engagements, enhancing service delivery.
- Strong cash flow from operations has allowed the company to maintain its dividend and continue its stock buyback program, demonstrating financial stability.
- Total revenues before reimbursements from the global SMBT segment decreased by 11% compared to the same period in the prior year.
- The Oracle solution segment saw a 20% decrease in revenues before reimbursements compared to the same period in the prior year.
- The company expects to incur AI transition charges in the first quarter of 2026, primarily related to severance costs due to headcount reductions.
- Adjusted EBITDA was $15.9 million or 21.3% of revenues before reimbursements, down from 25.2% in the prior year.
- The adjusted gross margin on revenues before reimbursements decreased to 46.6% in the fourth quarter of 2025, compared to 47.7% in the prior year.
Welcome to the Hackett Group 4th quarter earnings conference call. Your lines have been placed on a listen-only mode until the question-and-answer session. Please be advised the conference is being recorded. Hosting tonight's call are Mr. Ted Fernandez, Chairman and CEO, and Mr. Rob Ramirez, Chief Financial Officer. Mr. Ramirez, you may begin, sir.
Good afternoon everyone, and thank you for joining us to discuss the Hackett Group's 4th quarter results. Speaking on the call today, and here to answer your questions are Ted Fernandez, Chairman and CEO of the Hackett Group, and myself, Rob Ramirez, Chief Financial Officer.
A press announcement was released over the wires at 4:08 p.m. Eastern time. For a copy of the release, please visit our website at www.thehackettgroup.com.
We will also place any additional financial or statistical data that's discussed on this call that is not
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