olivLaw · US equity research
The Hackett Group, Inc. HCKT
Services-Management Consulting Services · SIC 8742 · Vertical: Services-Management Consulting Services (SIC 8742)
The Hackett Group is a strategic consulting and digital transformation firm that is shifting its model from labor-based services to delivery through proprietary generative AI platforms. The company is in transition: fiscal 2025 revenue declined from the prior year, and management expects a recovery in the third quarter of 2026, supported by platform-led wins of over 30 million USD.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, The Hackett Group, Inc. (HCKT) stock was 13.28 USD (+1.84% on the day), with market capitalisation 329.4 m USD, P/E 19.0 on diluted EPS of 0.70 USD over the last 12 months, dividend yield 3.61%, beta 0.59, 52-week range 9.22–20.58 USD. Latest reported quarter (Q3 2026): revenue of 69.8 m USD (−4.5% YoY), net income of 3.6 m USD (+39.7% YoY), diluted EPS 0.14 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 71.9
- overbought (≥ 70)
- Bollinger (20, 2)
- 10.64 – 13.48
- in the upper half of the band · %B 0.93 · band width 23.5%
- SMA 50 / 200
- 11.29 / 12.23
- mixed trend
- MACD (12, 26, 9)
- 0.57 / 0.46
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +22.7% | −1.1% | +23.8 pp | — |
| 3 months | +15.4% | −0.5% | +15.8 pp | — |
| 6 months | +30.1% | +4.4% | +25.7 pp | — |
| Year to date | −32.3% | +12.3% | −44.7 pp | — |
| 1 year | −24.8% | +13.5% | −38.3 pp | −20.9% |
| 3 years | −43.5% | +76.4% | −119.9 pp | −26.6% |
| 5 years | −38.7% | +63.7% | −102.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 25 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 79.2 m | 77.9 m | 78.9 m | 73.1 m | 75.8 m | 68.8 m | 69.3 m | 69.8 m |
| Cost of revenue | 48.0 m | 50.0 m | 50.9 m | 43.4 m | 44.1 m | 39.5 m | 41.6 m | 42.1 m |
| SG&A | 23.5 m | 23.4 m | 23.4 m | 21.2 m | 22.5 m | 18.4 m | 19.5 m | 18.8 m |
| Operating income | 7.7 m | 4.4 m | 4.6 m | 5.5 m | 9.1 m | 8.9 m | 7.7 m | 7.5 m |
| Interest expense | 242.0 k | 202.0 k | 366.0 k | 438.0 k | 710.0 k | 1.0 m | 1.2 m | 1.2 m |
| Pre-tax income | 7.5 m | 4.2 m | 4.2 m | 5.0 m | 8.4 m | 7.9 m | 6.5 m | 6.3 m |
| Income tax | 3.9 m | 1.1 m | 2.6 m | 2.5 m | 2.8 m | 3.6 m | 2.1 m | 2.8 m |
| Net income | 3.6 m | 3.1 m | 1.7 m | 2.5 m | 5.6 m | 4.3 m | 4.4 m | 3.6 m |
| Diluted EPS | 0.12 | 0.11 | 0.06 | 0.09 | 0.21 | 0.17 | 0.18 | 0.14 |
| Operating cash flow | 20.6 m | 4.2 m | 5.6 m ≈ | 11.4 m ≈ | 19.1 m | -5.1 m | 15.2 m ≈ | 1.8 m ≈ |
| Capex | 1.0 m | 1.5 m | 1.9 m ≈ | 2.4 m ≈ | 2.0 m | 2.4 m | 2.6 m ≈ | 3.2 m ≈ |
| Dividends paid | 3.0 m | 3.0 m | 3.3 m ≈ | 3.3 m ≈ | 3.3 m | 3.0 m | 3.0 m ≈ | 3.0 m ≈ |
| Share repurchases | 3.6 m | 6.2 m | 4.3 m ≈ | 17.4 m ≈ | 41.2 m | 3.0 m | 3.9 m ≈ | 1.8 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 42 percentile of its own 33-quarter history (min 12.1, median 19.4, max 50.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2017 | 2018 | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 285.9 m | 285.9 m | 282.5 m | 278.8 m | 293.7 m | 296.6 m | 313.9 m | 305.6 m |
| Revenue YoY | −0.9% | +0.0% | −1.2% | unavailable | +5.4% | +1.0% | +5.8% | −2.6% |
| Net income | 27.4 m | 23.9 m | 23.3 m | 41.5 m | 40.8 m | 34.2 m | 29.6 m | 12.9 m |
| Net income YoY | +27.0% | −12.6% | −2.6% | unavailable | −1.8% | −16.3% | −13.2% | −56.3% |
| Diluted EPS | 0.85 | 0.74 | 0.72 | 1.26 | 1.28 | 1.24 | 1.05 | 0.46 |
| Diluted EPS YoY | +28.8% | −12.9% | −2.7% | unavailable | +1.6% | −3.1% | −15.3% | −56.2% |
| net % | 9.6% | 8.4% | 8.2% | 14.9% | 13.9% | 11.5% | 9.4% | 4.2% |
| Free cash flow | 20.0 m | 22.8 m | 37.8 m | 43.1 m | 54.2 m | 33.3 m | 43.7 m | 32.4 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 26 Dec 2025
- Cash
- 18.2 m USD
- Financial debt
- 75.8 m USD
- Net debt
- 57.6 m USD
- Equity
- 68.1 m USD
- Total assets
- 206.4 m USD
- Debt / equity
- 1.11x
- Current ratio
- 1.72x
- ROE
- 14.1%
- ROA
- 6.5%
- FCF margin
- 10.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 282.5 m | 278.8 m | 293.7 m | 296.6 m | 313.9 m | 305.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Cost of revenue | 185.7 m | 173.1 m | 178.2 m | 180.2 m | 190.6 m | 188.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Gross profit | 96.8 m ≈ | 83.8 m | 89.5 m | 84.4 m | 123.2 m ≈ | 117.2 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| SG&A | 62.1 m | 59.2 m | 61.0 m | 65.9 m | 78.5 m | 90.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Operating income | 31.3 m | 46.5 m | 55.2 m | 49.3 m | 44.6 m | 23.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Depreciation & amortisation | — | 4.4 m | 3.4 m | 3.4 m | 3.9 m | 5.2 m | SEC (XBRL)· 27 Feb 2026verified |
| EBITDA | — | 50.9 m ≈ | 58.7 m ≈ | 52.7 m ≈ | 48.5 m ≈ | 28.7 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Interest expense | 311.0 k | 95.0 k | 144.0 k | 3.2 m | 1.6 m | 1.7 m | SEC (XBRL)· 27 Feb 2026verified |
| Pre-tax income | 31.0 m | 46.4 m | 55.1 m | 46.0 m | 43.0 m | 21.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Income tax | 7.7 m | 4.8 m | 14.3 m | 11.9 m | 13.4 m | 8.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Net income | 23.3 m | 41.5 m | 40.8 m | 34.2 m | 29.6 m | 12.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Diluted EPS | 0.72 | 1.26 | 1.28 | 1.24 | 1.05 | 0.46 | SEC (XBRL)· 27 Feb 2026verified |
| Weighted average diluted shares | 32.5 m | 32.9 m | 32.0 m | 27.6 m | 28.1 m | 27.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Dividend per share | 0.36 | 0.40 | 0.44 | 0.44 | — | 0.48 | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 26.0 m | 45.8 m | 30.3 m | 21.0 m | 16.4 m | 18.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Current assets | 78.6 m | 102.2 m | 81.2 m | 75.4 m | 76.3 m | 83.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Property, plant & equipment, net | 19.9 m | 18.0 m | 19.4 m | 20.0 m | 20.3 m | 24.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Goodwill | 84.6 m | 85.1 m | 83.5 m | 84.2 m | 89.8 m | 90.7 m | SEC (XBRL)· 27 Feb 2026verified |
| Intangibles (excl. goodwill) | 2.1 m | 159.0 k | — | — | 2.3 m | 3.3 m | SEC (XBRL)· 27 Feb 2026verified |
| Total assets | 193.7 m | 207.5 m | 185.0 m | 181.4 m | 193.3 m | 206.4 m | SEC (XBRL)· 27 Feb 2026verified |
| Accounts payable | 8.5 m | 7.7 m | 8.7 m | 7.6 m | 6.5 m | 6.3 m | SEC (XBRL)· 27 Feb 2026verified |
| Long-term debt | — | — | 59.7 m | 32.7 m | 12.7 m | 75.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Current liabilities | 43.7 m | 54.9 m | 59.6 m | 49.9 m | 53.1 m | 48.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Total liabilities | 56.1 m | 63.7 m | 126.7 m | 91.3 m | 77.7 m | 138.3 m | SEC (XBRL)· 27 Feb 2026verified |
| Equity | 137.6 m † | 143.9 m † | 58.3 m † | 90.1 m † | 115.6 m † | 68.1 m † | SEC (XBRL)· 27 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 42.4 m | 46.4 m | 58.9 m | 37.4 m | 47.7 m | 40.3 m | SEC (XBRL)· 27 Feb 2026verified |
| Capex | 4.6 m | 3.2 m | 4.7 m | 4.1 m | 4.1 m | 7.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Free cash flow | 37.8 m ≈ | 43.1 m ≈ | 54.2 m ≈ | 33.3 m ≈ | 43.7 m ≈ | 32.4 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Investing cash flow | -5.6 m | -3.2 m | -4.7 m | -4.1 m | -10.6 m | -8.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Financing cash flow | -24.7 m | -46.7 m | -69.7 m | -42.6 m | -41.7 m | -29.8 m | SEC (XBRL)· 27 Feb 2026verified |
| Dividends paid | 11.2 m | 12.9 m | 10.4 m | 12.0 m | 12.1 m | 12.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Share repurchases | 7.8 m | 13.0 m | 116.6 m | 734.0 k | 6.4 m | 69.1 m | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 70 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 329.4 m USD
Key indicators
Coverage and freshness
Score by group
- Valuation83
- Returns95
- Quality87
- Balance sheet73
- Growth6
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 6.31 – 21.54 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)10.40 – 19.31 (Mid 13.68)WACC 8.1% · starting FCFF 23.3 m USD · terminal value share of EV 76%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 0.3%
- Peers: EV/EBITDA15.88 – 21.54 (Mid 20.80)9 companies used · median multiple 15.4x · quartiles 12.2x – 15.8xACCS, ASTH, BAH, BWMN, FCN, HURN, ICFI, III, ONT
- Peers: P/E9.21 – 17.46 (Mid 14.05)11 companies used · median multiple 20.1x · quartiles 13.2x – 24.9xAERT, BAH, EXPO, FCN, G, HURN, ICFI, III, RMR, TSSI, ZTG
- Dividend discount (DDM)6.31 – 8.48 (Mid 7.24)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 70/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 14.7% | 83 (vs peers) | 10% |
| Net margin · Quality | 6.3% | 79 (vs peers) | 6% |
| FCF conversion · Quality | 116.7% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 1.3% | 11 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | -28.9% | 0 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 1.9x | 45 (vs peers) | 10% |
| Interest coverage · Balance sheet | 8.1x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 2.1x | 100 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 19.0x | 71 (vs peers) | 10% |
| EV/EBITDA · Valuation | 10.5x | 100 (vs peers) | 10% |
| FCF yield · Valuation | 6.3% | 79 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 18.9% | 100 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 59.0% | 87 (on a fixed band) | 4% |
Score groups
- Balance sheet73/100 · 3/3 factors with a value
- Growth6/100 · 2/2 factors with a value
- Quality87/100 · 3/3 factors with a value
- Returns95/100 · 2/2 factors with a value
- Valuation83/100 · 3/3 factors with a value
Memo
Hackett Group, Inc. (HCKT). Latest full fiscal year: 2025; data up to 2026-09-25.
Figures computed from the financial statements: revenue 305.6 m USD in 2025; YoY growth -2.6%; net margin 6.3%; ROE 20.7%; net debt/EBITDA 1.9x.
The estimated value range is 9.81–18.39 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 13.86 USD, the price of 13.28 USD leaves a potential of 4.4% (value / price − 1) and a margin of safety of 4.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 70/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 14.7%
- Net margin: 6.3%
- FCF conversion: 116.7%
- Interest coverage: 8.1x
- Current ratio: 2.1x
- P/E (TTM): 19.0x
- EV/EBITDA: 10.5x
- FCF yield: 6.3%
- Shareholder yield (distributions): 18.9%
- Payout ratio (FCF): 59.0%
What contradicts it
- Revenue CAGR 3Y: 1.3%
- EPS CAGR 3Y: -28.9%
Versus the vertical median
Services-Management Consulting Services (SIC 8742) · same industry (4-digit SIC) · compared with 33 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BAHBooz Allen Hamilton Holding Corporation | 10.5 bn | 13.7 | 70.0% | 7.1% | −6.4% | +6% / −29% |
| GGenpact Limited | 6.9 bn | 12.1 | 22.4% | 11.1% | +6.6% | −7% / +20% |
| FCNFti Consulting, Inc | 5.4 bn | 24.7 | 15.2% | 5.9% | +2.4% | +22% / −10% |
| EXPOExponent, Inc. | 4.2 bn | 39.2 | 31.2% | 17.7% | +4.2% | +21% / +14% |
| HURNHuron Consulting Group Inc. | 2.7 bn | 25.8 | 25.5% | 6.1% | +11.7% | +5% / +66% |
| ASTHAstrana Health, Inc. | 2.2 bn | 48.3 | 5.1% | 1.1% | +56.4% | +72% / +19% |
| ICFIICF International, Inc. | 1.7 bn | 20.1 | 8.6% | 4.9% | −7.3% | +24% / −31% |
| BWMNBowman Consulting Group Ltd. | 744.2 m | 105.3 | 2.9% | 1.4% | +14.9% | +19% / +39% |
| ONTOnterris, Inc. | 566.4 m | — | -2.5% | -1.4% | +19.3% | −37% / −48% |
| PPHCPublic Policy Holding Company, Inc. | 381.3 m | — | -39.5% | -18.9% | +24.7% | unavailable / unavailable |
| HCKTHackett Group, Inc. | 329.4 m | 19.0 | 20.7% | 6.3% | −2.6% | −25% / −43% |
| IIIInformation Services Group Inc. | 289.5 m | 25.2 | 12.7% | 4.7% | −1.2% | +13% / +46% |
| AERTAeries Technology, Inc. | 282.0 m | 20.9 | — | 3.6% | −0.3% | +35% / −68% |
| RMRRmr Group Inc. | 250.5 m | 12.6 | 8.7% | 3.1% | −22.0% | +10% / −30% |
| SUPXSuperx Ai Technology Limited | 209.8 m | — | -101.8% | -527.7% | +1,878.6% | −84% / unavailable |
| TSSITss, Inc. | 193.3 m | 14.1 | 32.0% | 7.4% | +65.9% | −29% / +1,976% |
| GRNQGreenpro Capital Corp. | 122.4 m | — | -26.8% | -169.6% | −40.7% | −57% / −19% |
| AUCAtif Holdings Limited | 109.4 m | — | -90.5% | -723.7% | −74.7% | −12% / −70% |
| ROMARoma Green Finance Limited | 101.0 m | — | -44.2% | -287.8% | −22.2% | +138% / unavailable |
| RTBRTB Digital, INC. | 92.6 m | — | -141.9% | -198.5% | −38.7% | −49% / −94% |
| MHHMastech Digital, Inc. | 74.9 m | 71.0 | 1.3% | 0.7% | −3.8% | −21% / −27% |
| EGGEnigmatig Ltd | 64.8 m | 268.0 | 6.3% | 12.6% | +12.2% | +40% / unavailable |
| CTMCastellum, Inc. | 46.4 m | — | -6.8% | -4.1% | +18.1% | −53% / +123% |
| ACCLAcco Group Holdings Limited | 34.9 m | 119.0 | 7.0% | 5.6% | +5.8% | −38% / unavailable |
| INTJIntelligent Group Limited | 33.5 m | — | -23.5% | -98.3% | −9.0% | −72% / unavailable |
1- and 3-year price returns: for HCKT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 7.81 Total return -38% · Per year -38% | 13.83 Total return 8% · Per year 8% | 20.85 Total return 62% · Per year 62% |
| 3 years | 7.10 Total return -38% · Per year -15% | 14.20 Total return 18% · Per year 6% | 23.58 Total return 92% · Per year 24% |
| 5 years | 6.46 Total return -38% · Per year -9% | 14.58 Total return 29% · Per year 5% | 26.66 Total return 127% · Per year 18% |
- Exit P/E± 3.55
- Net margin± 2.48
- Annual revenue growth± 2.10
- Annual dilution± 0.21
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).
In brief
The Hackett Group is a strategic consulting and digital transformation firm that is shifting its model from labor-based services to delivery through proprietary generative AI platforms. The company is in transition: fiscal 2025 revenue declined from the prior year, and management expects a recovery in the third quarter of 2026, supported by platform-led wins of over 30 million USD 13.
SWOT
Strengths
- The company has a proprietary benchmarking base and a long track record that underpin its AI platforms and differentiate its offer 1.
- The AI XPLR, XT and AIXelerator platforms allow IP-based delivery, with potential margins above those of labor-based services 1.
- The ZBrain acquisition added agentic engineering capabilities that strengthen its position in generative AI projects 1.
Weaknesses
- Revenue is concentrated in a small number of large clients, and losing one important client could affect results 1.
- The Oracle segment has declined markedly, and growth has not yet offset declines in other business lines 1.
- Stock-based compensation expense has risen significantly, weighing on reported profitability 1.
Opportunities
- If demand for enterprise-wide AI assessments continues, proprietary platforms could bring larger and more recurring contracts 13.
- Selective licensing of IP through AI XPLR could open new revenue with low marginal cost 1.
- Channel partnerships could extend client access without a proportional increase in headcount 1.
Threats
- Low barriers to entry mean new competitors, including AI vendors, could offer similar services at lower cost 1.
- Economic uncertainty and geopolitical tensions could delay client investment decisions 2.
- Risks linked to AI output quality, data ownership and legal liability could generate unforeseen costs 1.
Risks
- Execution of the model transitionhigh
The company may not succeed in turning its AI strategy into recurring revenue, and the benefits could arrive later than expected 1.
- Dependence on large clientshigh
Contracts can be cancelled on short notice, and losing a large client could have a significant negative effect 1.
- Fixed-price contract riskmedium
Estimation errors on fixed-price or capped contracts can reduce profitability or produce losses on engagements 1.
- AI-related riskmedium
AI outputs may be incorrect or biased, which could bring legal liability and reputational damage 1.
- Currency and macroeconomic exposurelow
Revenue is denominated in several currencies, and economic conditions can change client demand and currency results 12.
Investment thesis
What would need to be true (bull case)
- If the AI platforms produce larger and recurring contracts, margins could recover toward earlier levels and the company could benefit from demand for automation 13.
- A proprietary benchmarking-based offer could justify premium pricing in AI transformation projects, especially for large clients 1.
- A larger credit facility with an extended maturity could give financial flexibility for platform investment and acquisitions 3.
What would break the thesis
- If revenue in the Oracle and Global S&BT segments keeps declining, the platform-led recovery might not offset the losses 12.
- Competition from large firms and AI vendors could press prices and margins down 1.
- Dependence on a few clients and contracts that can be cancelled quickly could keep revenue volatile from quarter to quarter 1.
What to watch
- Delivery against third-quarter revenue and adjusted EPS guidanceQ3 2026
- Revenue trend in the Oracle Solutions segmentQ3 2026
- Conversion of platform contracts into recurring revenue and licensingnext 10-K
- Level of stock-based compensation and restructuring costs2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results).
The business
Hackett is a global strategic consulting, business transformation and enterprise application implementation firm that builds its offering on its own benchmarking intellectual property and generative AI platforms. The company combines process benchmarking with platforms such as AI XPLR, XT and AIXelerator so that consultants deliver measurable results 1. Total revenue was 305.6 mn USD in fiscal 2025, compared with 313.9 mn USD in 2024 1. The company says it is moving from labor-based delivery to an IP platform model, which could lift margins if the strategy succeeds 1.
The company's knowledge base is a benchmarking repository built over decades, with over 28,400 benchmarking and performance studies completed as of December 26, 2025 1. This base feeds a domain-specific language model, called the Solution Language Model, used in its delivery platforms 1. The September 2024 acquisition of ZBrain added generative AI engineering and agentic orchestration capabilities 1.
Clients are mainly Global 2000 organizations and other sophisticated buyers of advisory and enterprise application services 1. Concentration is significant: in 2025 the ten largest clients generated 24% of revenue 1. At fiscal year end 2025 the company had 1,503 associates, of whom 81% were billable consultants 1.
Market context
The company describes a massive automation expansion in enterprises, which will require software and service providers to extend their agentic capabilities 1. Organizations are redirecting generative AI experimentation toward enterprise-wide assessment of high-impact solutions, a shift that could favor firms with their own benchmarking 1. The sources do not give the total market size, so the assessment of market position remains limited 1.
Demand for traditional digital transformation remains, but budgets are gradually moving toward AI projects with demonstrable ROI 1. The second quarter of 2026 still showed the transition, with total revenue of 69.3 mn USD against 78.9 mn USD in the same quarter of 2025 23. If the third-quarter recovery is confirmed, it could indicate that the new platforms are starting to offset the decline in traditional services 3.
Trends
- AI automation expansion in enterprisestailwind
Organizations expect growing automation that requires new agentic capabilities from providers, which opens the market for AI platforms 1.
- Reassessment of transformation investmentmixed
Clients are moving generative AI experiments toward strategic assessments, which favors firms linking AI to benchmarking but could delay traditional contracts 1.
- Macroeconomic uncertaintyheadwind
Inflation, interest rates, tariffs and geopolitical conflicts could reduce client budgets and lengthen buying decisions 2.
- ERP migration to the cloudmixed
The move to Oracle and SAP cloud suites creates implementation opportunities, but also volatility when large projects end without immediate replacement 1.
Competitive position
The business consulting and IT services market is highly competitive, with low barriers to entry and no patented technology protecting the company 1. Rivals include international accounting firms, strategic consulting and systems integrators and the IT services divisions of software firms 1. Many competitors have longer histories, larger client bases and greater financial resources 1.
Competitive pressure shows up in prices and margins, especially when rivals can respond faster to technologies such as AI 1. The company differentiates through its own benchmarking, but this is not legally protected, which could allow its offer to be copied 1.
- AccentureACN
A global consulting and IT services firm, cited as a rival among international strategic consulting and implementation firms with greater resources 1.
- International accounting firms
Audit firms with consulting divisions, named as rivals in transformation consulting and governance projects 1.
- Strategic systems integrators
International, national and regional strategic consulting and systems implementation firms that compete directly for transformation projects 1.
- IT services divisions of software vendors
Service arms of enterprise application makers that can offer their own implementations and compete with the company 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report04 Nov 2026
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report04 Aug 2026Material agreement · Results of operations · Financial statements and exhibits
- Quarterly report06 May 2026
- Current report05 May 2026Results of operations · Shareholder vote · Financial statements and exhibits
- Proxy statement20 Mar 2026
- Annual report27 Feb 2026
- Current report17 Feb 2026Results of operations · Financial statements and exhibits
- Quarterly report05 Nov 2025
Sources
- [1] Form 10-K, fiscal year ended 2025-12-26 · SEC / The Hackett Group, Inc. · 27 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-26 · SEC / The Hackett Group, Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / The Hackett Group, Inc. · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.