Hackett Group Reports Q3 Restructuring Charges, Accelerates Gen AI Focus Amid Oracle Weakness.

The Hackett Group (HCKT) reported Q2 2025 earnings with revenue before reimbursements of $77.6 million and adjusted EPS of $0.38. CEO Ted A. Fernandez highlighted the quarter's results were as expected, but noted the significant level of restructuring charges, particularly in the Oracle business. The company is accelerating its focus on Gen AI.

The Hackett Group (HCKT) released its Q2 2025 earnings report, revealing a mixed performance with revenue exceeding expectations while earnings per share (EPS) fell short of forecasts. The company reported revenue before reimbursements of $77.6 million, up 2% year-over-year (YoY), surpassing the projected $76.54 million by 3.08% [1]. However, adjusted EPS of $0.38 missed the forecasted $0.42 by 9.52%.

CEO Ted A. Fernandez highlighted the quarter's results, noting that they were as expected but emphasized the significant level of restructuring charges, particularly in the Oracle business. He stated, "Our quarterly results were driven by the performance of our GSBT segment, which included the strong revenue growth from our Gen AI related engagements. However, we continue to face challenges in the Oracle Solutions segment, which we are addressing through strategic restructuring efforts."

The company's stock experienced a decline of 2.15% to $23.28 following the earnings announcement, reflecting investor disappointment over the EPS miss. However, there was a slight recovery in after-hours trading, with the stock gaining 0.64% to $23.43 [1].

Hackett Group's financial highlights included an adjusted gross margin of 42.8% and adjusted EBITDA of $16.1 million, representing 20.7% of revenues. The company maintained a solid financial health score of 2.58 out of 5 [1].

Looking ahead, Hackett anticipates revenues between $73 million and $74.5 million for Q3 2025, with adjusted EPS expected to range from $0.36 to $0.38. The company expects growth in its Global S&BT and SAP Solutions segments but forecasts a 20% decline in its Oracle Solutions segment [1].

Fernandez emphasized the transformative potential of GenAI, stating, "GenAI enabled transformation is a generational opportunity which will fundamentally change the way companies operate. We believe AI Explorer will be our primary strategic entry point to clients."

Risks and challenges include restructuring costs, market competition, economic conditions, segment performance, and execution risk. The company is committed to enhancing productivity through GenAI platforms and addressing concerns about headcount adjustments in non-GenAI practices [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-the-hackett-group-q2-2025-misses-eps-forecast-93CH-4171682