The Hackett Group 2025 Q3 Earnings Net Income Falls 70.3% Amid Revenue Decline

The Hackett Group (HCKT) reported fiscal 2025 Q3 earnings on Nov 6, 2025, with results falling below expectations. , while adjusted EPS of $0.37 aligned with guidance but marked a 71% decline from the prior year. The company announced a $40 million Dutch auction stock repurchase and launched AI-driven growth initiatives, though key segments like Oracle solutions faced significant revenue declines.

Revenue

Revenue before reimbursements totaled $72.17 million, . , driven by implementation services, while the Oracle solutions segment declined 25% due to extended client decision-making. The global SMBT segment also weakened, partly due to a non-renewed IPASS contract.

Earnings/Net Income

, . The sharp declines in both EPS and net income signal a challenging quarter for the company.

Post-Earnings Price Action Review

The strategy of buying HCKT shares on the revenue raise announcement and holding for 30 days has underperformed over the past three years. While initial market reactions to earnings news may appear positive, the stock typically experiences a significant decline within the first 30 days, negating any potential rebound. This pattern suggests that investors should avoid short-term holding strategies post-earnings and instead consider longer-term or event-driven approaches.

CEO Commentary

, CEO, emphasized

strategic investments in version 4 and alliances like the Salonis partnership to drive future growth. He noted, “The release of version 4 has accelerated client engagement and pipeline activity, positioning us to capitalize on GenAI opportunities.” Fernandez also highlighted the Dutch auction as a commitment to shareholder value, stating, “Our balance sheet strength allows us to be aggressive in returning capital while advancing our AI initiatives.”

Guidance

The company provided revenue guidance of $69.5–$71 million for Q4 2025, reflecting cautious optimism. Forward-looking targets include expanding AI Explorer licensing in Q4/Q1 2026 and achieving accretive returns from the $40 million stock repurchase.

Additional News

The Hackett Group announced the acquisition of Gen AI development firm LeewayHertz, enhancing its AI implementation capabilities. Concurrently, , funded through existing credit facilities. Additionally, , maintaining a forward yield of 2.72%. These moves underscore the firm’s focus on capital efficiency and long-term AI-driven growth.

Article Polishing

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