Symbols

HCKT

The Hackett Group·NASDAQ

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HCKT fundamentals

HCKT Q4 2025 Earnings

The Hackett Group (HCKT) released its earnings on Feb 17, 2026: revenue was 74.82M (YoY -3.40%), beat estimates; EPS was 0.4 (YoY -14.89%), beat estimates.

Revenue / YoY

74.82M

-3.40%

EPS / YoY

0.4

-14.89%

Report date

Feb 17, 2026

HCKT Earnings Call Summary for Q4,2025

Revenue Beat & AI Growth: Q4 revenue of $74.8M (+15% YoY) driven by AI XPLR platform wins, with Q1 guidance up 3-5% sequentially.
25%+ Productivity Gains: New AI platforms (XT, AIX) delivering margin expansion in Oracle, SAP, and transformation services.
$25M Buyback & Licensing Upside: Share repurchase program expanded, with AI XPLR v5 now licensable to clients post-consulting engagements.
Strategic Partnerships:
- Global Tech Partner: Q1 go-to-market agreement expected to accelerate AI XPLR adoption in enterprise transformation.
- ServiceNow Pilot: Agentic workflow design collaboration targeting high-ROI automation opportunities.
Cost Efficiency:
- Headcount Reductions: $1.8M annual SG&A savings from AI-enabled delivery.
- Gross Margin Expansion: Q1 gross margin expected to improve 100-200bps YoY, with AI-driven margin gains in S/4HANA implementations.
Licensing Momentum:
- AI XPLR v5 Licensing: Clients exposed to platform during engagements now have option to license ideation/solutioning modules.
- IP monetization: Hackett benchmarks and ZBrain technical design capabilities being commercialized.
SAP Strength: 32% YoY growth in S/4HANA cloud migration demand, with AIXelerator platform adoption accelerating.
Risk Management:
- AI Transition Costs: $1-1.5M Q1 charges for headcount reductions and platform investments.
- Oracle Segment Recovery: AIX platform adoption expected to reverse 2% YoY decline in Q4.
Balance Sheet:
- $18.2M Cash: Supports $42M Q4 buyback and $25M remaining authorization.
- Dividend Sustainability: $0.12 quarterly dividend maintained with strong free cash flow generation.
2026 Outlook:
- SAP Growth: 32% YoY growth in Q4 expected to continue with S/4HANA momentum.
- AI Licensing Expansion: New platform capabilities (Ask Hackett, XT, AIX) creating $300M+ TTM recurring revenue opportunity.
Market Position:
- Competitive Advantage: 26-industry AI opportunity simulation capability unmatched in the market.
- Client Retention: 80% solution design with client input, reducing implementation risk.
Talent Strategy:
- Turnover Management: Associate retention rates remain stable despite macro uncertainty.
- New Hires: Focused on GenAI engineering talent to support platform development.
Regulatory Compliance:
- Forward-Looking Statements: Risks include market demand volatility and AI adoption pace.
- SEC Filings: Material risks disclosed in 10-K include client concentration and technology transition challenges.
Investment Thesis:
- Top Line Growth: 25%+ AI-driven margin expansion in consulting.
- Bottom Line: $10M+ annual licensing revenue from AI XPLR v5, with 2026 EPS accretion.
- Valuation: 2026E EV/EBITDA multiple compression from 12x to 8x as AI monetization accelerates.

Earnings

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Revenue

Revenue & Expenses

HCKT has released its 2025 Q4 earnings report, with revenue of 75.75M, reflecting a YoY change of -4.40%, and net profit of 5.59M, showing a YoY change of 56.90%. The Sankey diagram below clearly presents HCKT's revenue sources and cost distribution.

Key Indicators

The Hackett Group (HCKT) key financial stats and ratios, covering profitability, financial health, and leverage.

Income Statement

The Hackett Group (HCKT)'s revenue and profit trends over recent years, visualized with a waterfall chart to showcase the revenue-to-profit funnel.

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Balance Sheet

The Hackett Group (HCKT)'s asset and liability trends over recent years, visualized with a waterfall chart to illustrate changes in its asset-liability structure.

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Cash Flow

The Hackett Group (HCKT)'s cash flow trends over recent years, visualized with a waterfall chart to illustrate changes in its operating, investing, and financing cash flows.

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