The Hackett Group, Inc. reported its financial results for the second quarter and first half of 2025, revealing total revenue of $78.9 million for the quarter, a slight increase from $77.7 million in the same period last year. For the first six months, revenue reached $156.8 million, compared to $154.8 million in the prior year. The company’s net income for the quarter was $1.7 million, down from $8.7 million in the second quarter of 2024, while net income for the first half was $4.8 million, a decrease from $17.5 million year-over-year. The diluted earnings per share were $0.06 for the quarter and $0.17 for the first six months, compared to $0.31 and $0.63, respectively, in the previous year.
The financial performance reflects a notable shift in profitability, primarily attributed to increased costs associated with personnel and non-cash stock-based compensation. Personnel costs before reimbursable expenses rose to $49.7 million in the second quarter, up from $45.4 million in the same period last year, driven by the stock price award program and acquisition-related expenses. Selling, general, and administrative costs also increased significantly, totaling $23.4 million for the quarter, compared to $18.0 million in the prior year. The company’s total costs and operating expenses for the quarter were $74.3 million, up from $65.1 million in the same quarter of 2024.
Strategically, Hackett has made significant moves to enhance its capabilities in the generative artificial intelligence (AI) space. The company completed the acquisition of LeewayHertz Technologies in September 2024 for $7.8 million, which is expected to bolster its AI consulting services. Additionally, Hackett acquired certain assets of Spend Matters LLC in May 2025 for $766,000, further expanding its offerings in procurement and supply chain intelligence. These acquisitions are part of Hackett's strategy to position itself as a leader in AI-driven consulting services.
Operationally, Hackett reported a total of 27,500 benchmarking and performance studies completed, leveraging its Quantum Leap platform to drive digital transformation. The company’s Global Strategy & Business Transformation (Global S&BT) segment generated $44.2 million in revenue for the second quarter, up from $42.3 million in the same period last year, reflecting strong growth in Gen AI consulting. However, the Oracle Solutions segment saw a decline in revenue to $20.8 million from $23.0 million, attributed to extended client decision-making processes. The SAP Solutions segment reported revenue growth to $13.9 million, up from $12.3 million, driven by increased implementation revenue.
Looking ahead, Hackett anticipates restructuring charges between $1.5 million and $2.0 million in the third quarter of 2025 as it aligns its workforce with market demand and leverages its Gen AI delivery platforms. The company remains focused on expanding its capabilities in AI and digital transformation, aiming to enhance its competitive position in the consulting market. Despite the challenges faced in profitability, Hackett's strategic acquisitions and operational developments are expected to support its long-term growth objectives.
About HACKETT GROUP, INC.
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