ITEM 1. BUSINESS In this Annual Report on Form 10-K, unless the context otherwise requires, “The Hackett Group,” “Hackett,” the “Company,” “we,” “us,” and “our” refer to The Hackett Group, Inc. and its subsidiaries and predecessors. We were originally incorporated on April 23, 1997. Our fiscal year ended December 26, 2025. The Hackett Group, Inc. (NASDAQ: HCKT) is a global, IP platform-based generative artificial intelligence (“Gen AI”) strategic advisory, business transformation, and enterprise application implementation firm.
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Revenue from Continuing Operations Before Reimbursement | $278M | $290M | $291M | $307M | $301M | 57% |
Consulting | $123M | $144M | $145M | $139M | $131M | 25% |
Consulting and Software Support and Maintenance | $75M | $76M | $78M | $86M | $73M | 14% |
Software License Sales | $10M | $7M | $6M | $15M | $16M | 3% |
Reimbursements | $5M | $4M | $5M | $7M | $5M | 1% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 306M | 306M | 314M | 297M | 294M | 239M |
| Net Income | 13M | 13M | 30M | 34M | 41M | 42M |
| EPS | $0.46 | $0.46 | $1.05 | $1.24 | $1.28 | $1.26 |
| Free Cash Flow | 32M | 32M | 44M | 33M | 54M | 42M |
| ROIC | 10.9% | 13.7% | 31.2% | 44.3% | 69.5% | 77.8% |
| Gross Margin | 38.3% | 38.3% | 39.3% | 28.4% | 30.5% | 30.5% |
| Debt/Equity | 1.15 | 1.15 | 0.14 | 0.38 | 1.05 | 0.03 |
| Dividends/Share | $0.46 | $0.48 | $0.44 | $0.11 | $0.44 | $0.40 |
| Operating Income | 24M | 24M | 45M | 49M | 55M | 46M |
| Operating Margin | 7.7% | 7.7% | 14.2% | 16.6% | 18.8% | 19.4% |
| ROE | 19.0% | 14.1% | 25.6% | 37.9% | 70.0% | 28.9% |
| Shares Outstanding | 28M | 28M | 28M | 28M | 32M | 33M |
HACKETT GROUP, INC. passes 6 of 9 quality checks, suggesting mixed fundamentals.
HACKETT GROUP, INC. trades at 28.1x trailing earnings, compared to its 15-year median P/E of 19.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 10.1x vs a median of 17.8x. The company's 5-year average ROIC is 47.3% with a gross margin of 33.4%. Total shareholder yield (dividends + buybacks) is 22.6%. At current prices, the estimated annualized return to fair value is +6.6%.
HACKETT GROUP, INC. (HCKT) has a current P/E ratio of 28.1, compared to its historical median P/E of 19.5. The stock is currently considered Fair based on its historical valuation range.
HACKETT GROUP, INC. (HCKT) has a 5-year average return on invested capital (ROIC) of 47.3%. This indicates strong capital allocation and a potential competitive advantage.
HACKETT GROUP, INC. (HCKT) has a market capitalization of $363M. It is classified as a small-cap stock.
Yes, HACKETT GROUP, INC. (HCKT) pays a dividend with a trailing twelve-month yield of 3.55%. The company also returns capital through share buybacks, with a buyback yield of 19.04%.
Based on historical P/E analysis, HACKETT GROUP, INC. (HCKT) appears fair. The current P/E of 28.1 is 44% above its historical median of 19.5. The estimated fair value CAGR (P/E method) is 2.0%.
HACKETT GROUP, INC. (HCKT) operates in the Services-Management Consulting Services industry, within the Industrials sector.
HACKETT GROUP, INC. (HCKT) reported annual revenue of $306 million in its most recent fiscal year, based on SEC EDGAR filings.
HACKETT GROUP, INC. (HCKT) has a net profit margin of 4.2%. This is a modest margin.
HACKETT GROUP, INC. (HCKT) generated $32 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HACKETT GROUP, INC. (HCKT) has a debt-to-equity ratio of 1.15. This indicates moderate leverage.
HACKETT GROUP, INC. (HCKT) reported earnings per share (EPS) of $0.46 in its most recent fiscal year.
HACKETT GROUP, INC. (HCKT) has a return on equity (ROE) of 14.1%. This indicates moderate shareholder returns.
HACKETT GROUP, INC. (HCKT) has a 5-year average gross margin of 33.4%. This indicates decent pricing power.
The Ledger Terminal provides 14 years of financial data for HACKETT GROUP, INC. (HCKT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HACKETT GROUP, INC. (HCKT) has a book value per share of $2.42, based on its most recent annual SEC filing.