The Hackett Group Reports Revenue Decline in Q2 and First Half of Fiscal 2026

The Hackett Group, Inc. reported a decline in financial performance for the second quarter and first half of fiscal 2026, with total revenue of $69.3 million and $138.1 million, respectively, compared to $78.9 million and $156.8 million in the same periods of 2025. The decrease in revenue was attributed to elongated client decision-making processes and a reduction in demand for certain consulting services, particularly in the Global Strategy & Business Transformation (Global S&BT) segment, which saw revenues drop from $44.2 million to $36.0 million year-over-year for the quarter. Despite these challenges, the company achieved a net income of $4.4 million for the quarter, up from $1.7 million in the prior year, reflecting improved operational efficiency and cost management.

In terms of operational metrics, Hackett's personnel costs before reimbursable expenses decreased significantly, falling 18% to $40.6 million in the second quarter, primarily due to reduced non-cash stock-based compensation and headcount adjustments aligned with market demand. Selling, general, and administrative (SG&A) costs also decreased by 17% to $19.5 million, driven by lower bonus accruals and reduced stock-based compensation expenses. The company reported a restructuring cost of $492,000 in the second quarter as it continues to pivot towards generative AI (Gen AI) services, which are expected to enhance its consulting offerings.

The company’s balance sheet as of June 26, 2026, showed total assets of $208.6 million, a slight increase from $206.4 million at the end of December 2025. Current liabilities decreased to $43.6 million from $48.8 million, primarily due to reductions in accrued expenses and other liabilities. Hackett's long-term debt increased to $80.9 million from $75.8 million, reflecting ongoing investments in its Gen AI capabilities and operational infrastructure. The company maintained a cash balance of $14.2 million, down from $18.2 million at the end of the previous fiscal year.

Strategically, Hackett has focused on enhancing its Gen AI consulting services, launching the AI XPLR platform to assist clients in identifying and implementing AI solutions. The company also completed the acquisition of Spend Matters in May 2025, which is expected to bolster its capabilities in procurement and supply chain consulting. The company’s geographic revenue distribution indicates a continued reliance on the U.S. market, which accounted for $56.2 million of total revenue in the second quarter, down from $62.7 million in the prior year.

Looking ahead, Hackett anticipates that the ongoing development of its Gen AI services will position it favorably in the consulting market. However, the company acknowledges potential risks related to macroeconomic conditions, including inflation and geopolitical events, which could impact client demand. The management remains committed to leveraging its intellectual property and consulting expertise to navigate these challenges and drive future growth.