The Hackett Group, Inc. reported a decline in financial performance for the third quarter and first nine months of fiscal 2025, with total revenue of $73.1 million and $229.9 million, respectively, compared to $79.8 million and $234.6 million in the same periods of the previous year. The decrease in revenue was attributed to a drop in the Global Strategy & Business Transformation (Global S&BT) and Oracle Solutions segments, which were partially offset by growth in the SAP Solutions segment. Net income for the quarter was $2.5 million, down from $8.6 million in the prior year, resulting in diluted earnings per share of $0.09 compared to $0.31.
The company experienced a significant increase in costs, with total operating expenses rising to $67.7 million for the quarter, up from $67.0 million a year earlier. This increase was driven by higher selling, general, and administrative costs, which rose to $21.2 million from $18.7 million, largely due to increased non-cash stock-based compensation expenses. Additionally, restructuring costs of $3.1 million were incurred as part of the company's strategic pivot towards generative AI services, reflecting adjustments in staffing to align with market demand.
In terms of operational developments, Hackett completed the acquisition of LeewayHertz Technologies in September 2024 for $7.8 million, aimed at enhancing its capabilities in generative AI solutions. The company also acquired assets from Spend Matters in May 2025 for $767,000. These acquisitions are expected to bolster Hackett's offerings in AI-driven consulting and advisory services. The company has also launched its AI assessment platform, AI XPLR, which is designed to help clients identify and implement generative AI opportunities.
Geographically, revenue from the United States accounted for the majority of total revenue, totaling $58.1 million in the third quarter, down from $66.2 million a year earlier. The company reported a slight increase in international revenue, particularly from consulting services in Europe and other regions. As of September 26, 2025, Hackett's total assets stood at $200.7 million, with total liabilities of $99.0 million, reflecting an increase in long-term debt to $43.8 million from $12.7 million at the end of the previous fiscal year.
Looking ahead, Hackett anticipates that its investments in generative AI and the integration of recent acquisitions will position the company for future growth. However, management acknowledged potential risks related to macroeconomic conditions, including inflation and geopolitical events, which could impact client demand for consulting services. The company remains committed to leveraging its expertise in AI and digital transformation to drive performance and enhance shareholder value.
About HACKETT GROUP, INC.
The Hackett Group is a global consulting firm specializing in digital transformation, enterprise performance improvement, and strategic advisory services. It leverages proprietary benchmarking, best practices, and AI-driven platforms to help clients optimize operations across finance, HR, IT, procurement, and supply chain. The company focuses on leveraging intellectual property, digital platforms, and emerging Gen AI technologies to deliver measurable, sustainable performance enhancements for large, sophisticated organizations worldwide.
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