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The Hackett Group
(NASDAQ:HCKT)
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Rating:67Neutral
Price Target:
$12.50
▲(28.73% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by steady cash generation and improving profitability (FCF strength and margin rebound), reinforced by constructive Q3 guidance for higher EPS and margins. Technicals are moderately positive in the short-to-medium term but remain constrained by a weak longer-term trend versus the 200-day average. Valuation is supported by the high dividend yield, while recent revenue softness and leverage variability keep the overall score in the mid-range.
Positive Factors
Strong cash generation and improving working capital
High free-cash-flow conversion supports debt reduction, dividends, buybacks and investment without relying solely on external funding. Improved collections and lower receivables also strengthen liquidity and make cash generation more resilient.
Negative Factors
Revenue remains in a prolonged soft-growth phase
Persistent top-line contraction limits operating leverage and makes margin improvement harder to sustain. The business is transitioning toward platform-led services, but the evidence so far shows that new demand has not fully offset softness across established revenue streams.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and improving working capital
High free-cash-flow conversion supports debt reduction, dividends, buybacks and investment without relying solely on external funding. Improved collections and lower receivables also strengthen liquidity and make cash generation more resilient.
Read all positive factors
The Hackett Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Tracks sales across the company's different service lines, revealing where growth is coming from and how diversified the business is. Investors can use it to identify high-growth areas, assess exposure to cyclical corporate spending, and judge whether the topline is broad-based or dependent on a few services.
Tracks sales across the company's different service lines, revealing where growth is coming from and how diversified the business is. Investors can use it to identify high-growth areas, assess exposure to cyclical corporate spending, and judge whether the topline is broad-based or dependent on a few services.
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The Fly
The FlyThe Hackett Group (HCKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$261.47M
Dividend Yield4.42%
Average Volume (3M)344.88K
Price to Earnings (P/E)16.6
Beta (1Y)0.96
Revenue Growth-9.12%
EPS Growth5.60%
CountryUS
Employees1,503
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.65
Shares Outstanding24,877,872
10 Day Avg. Volume373,991
30 Day Avg. Volume344,882
Financial Highlights & Ratios
PEG Ratio-0.75
Price to Book (P/B)8.01
Price to Sales (P/S)1.78
P/FCF Ratio16.81
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.50Price Target Upside69.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.5
Revenue Forecast (FY)$280.53M
The Hackett Group Business Overview & Revenue Model
Company Description
The Hackett Group, Inc. is a strategic consulting and technology advisory firm operating across North America and globally. The company provides a comprehensive suite of services designed to enhance organizational performance, including its best p...
How the Company Makes Money
The Hackett Group makes money primarily by selling professional services and subscription-based research/benchmarking offerings to organizations seeking to improve business process performance. A key revenue stream is consulting/advisory engagemen...
The Hackett Group Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook: tangible operational progress from AI-enabled platforms (platform-driven wins >$30M, improving gross margins, product launches, and strong cash generation) counterbalanced by modest top-line growth, segment variability, partner uncertainty (IBM deferral), client caution on AI ROI, a small APAC transition charge, and ongoing talent competition. Management expects meaningful sequential margin and EPS inflection in Q3 and continued ramp into 2027, indicating positive forward momentum despite near-term demand and partner execution risks.Positive Updates
Revenue and EPS Performance and Guidance
Q2 revenue before reimbursements of $68.3M (up from $67.8M sequentially, ~+0.7%). Adjusted diluted EPS of $0.34 (at midpoint of guidance); GAAP diluted EPS $0.18. Q3 guidance: revenue before reimbursements $68M–$70M and adjusted diluted EPS $0.37–$0.39 (midpoint $0.38, ~+11.8% sequential EPS growth from Q2 midpoint).
Negative Updates
Modest Top-Line Growth and Slight Miss
Q2 revenue came in slightly below the low end of the company range and overall sequential revenue improvement was modest, with emphasis on sequential (not yet strong year-over-year) growth as the business transitions.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and EPS Performance and Guidance
Q2 revenue before reimbursements of $68.3M (up from $67.8M sequentially, ~+0.7%). Adjusted diluted EPS of $0.34 (at midpoint of guidance); GAAP diluted EPS $0.18. Q3 guidance: revenue before reimbursements $68M–$70M and adjusted diluted EPS $0.37–$0.39 (midpoint $0.38, ~+11.8% sequential EPS growth from Q2 midpoint).
Read all positive updates
Company Guidance
Management guided Q3 revenue before reimbursements of $68.0–$70.0 million and adjusted diluted EPS of $0.37–$0.39 (midpoint $0.38, ~11.8% above Q2’s $0.34), with adjusted gross margin expected ~46–47% (Q2: 44.1%); they expect adjusted EBITDA of 21.5–22.5% of revenues (Q2: $13.9M, 20.3%), adjusted SG&A and interest of about $19M (Q2 adj SG&A $17.4M or 25.5% of revenues), and will record an APAC transition charge of ≈ $1M (excluded from non‑GAAP). Q2 operating highlights: revenue before reimbursements $68.3M (Global S&BT $35.6M, −2% seq; Oracle $15.3M, −1% seq; SAP $17.4M, +9% seq), GAAP net income $4.4M (EPS $0.18), cash $14.2M (up from $6.1M), operating cash flow $15.2M, repurchased 377K shares for ~$4M (avg $10.58) with $18.1M remaining buyback authorization, DSO 56 (vs 67), total debt $81M and credit capacity increased to $125M; management expects modest sequential revenue and margin improvement into Q3 and further benefits into Q4/2027.The Hackett Group Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
56
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 286.99M | 305.63M | 313.86M | 296.59M | 293.74M | 278.81M |
| Gross Profit | 116.92M | 117.17M | 123.24M | 116.38M | 115.58M | 105.66M |
| EBITDA | 34.84M | 28.71M | 48.51M | 52.68M | 58.69M | 50.85M |
| Net Income | 16.83M | 12.94M | 29.63M | 34.15M | 40.80M | 41.55M |
Balance Sheet | ||||||
| Total Assets | 208.61M | 204.64M | 191.88M | 181.43M | 184.99M | 207.54M |
| Cash, Cash Equivalents and Short-Term Investments | 14.16M | 18.20M | 16.37M | 20.96M | 30.25M | 45.79M |
| Total Debt | 83.03M | 79.52M | 15.68M | 34.42M | 61.11M | 3.77M |
| Total Liabilities | 140.43M | 136.54M | 76.30M | 91.35M | 126.72M | 63.69M |
| Stockholders Equity | 68.18M | 68.10M | 115.57M | 90.08M | 58.28M | 143.85M |
Cash Flow | ||||||
| Free Cash Flow | 31.15M | 32.44M | 43.65M | 33.30M | 54.25M | 43.11M |
| Operating Cash Flow | 40.55M | 40.30M | 47.73M | 37.40M | 58.90M | 46.35M |
| Investing Cash Flow | -9.40M | -8.63M | -10.62M | -4.10M | -4.66M | -3.24M |
| Financing Cash Flow | -27.08M | -29.77M | -41.66M | -42.56M | -69.74M | -46.74M |
The Hackett Group Technical Analysis
Positive
9.71
Price Trends
10.62
Positive
11.26
Negative
14.12
Negative
Market Momentum
0.07
Positive
51.09
Neutral
25.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCKT, the sentiment is Positive. The current price of 9.71 is below the 20-day moving average (MA) of 10.82, below the 50-day MA of 10.62, and below the 200-day MA of 14.12, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 25.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HCKT.
The Hackett Group Risk Analysis
The Hackett Group disclosed 22 risk factors in its most recent earnings report. The Hackett Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The Hackett Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $474.51M | 10.16 | 31.81% | ― | 17.04% | 45.20% | |
70 Outperform | $238.68M | 20.50 | 12.32% | 4.66% | 4.18% | 50.80% | |
67 Neutral | $261.47M | 16.64 | 22.15% | 4.94% | -9.12% | 5.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $222.39M | -0.96 | -30.45% | ― | -10.31% | -2595.28% | |
47 Neutral | $193.96M | -0.47 | 134.79% | ― | -0.61% | -405.05% |
* Technology Sector Average
HCKT
The Hackett Group
10.87
-8.62
-44.22%
III
Information Services Group
4.95
0.28
6.09%
UIS
Unisys
2.76
-1.07
-27.94%
CNDT
Conduent
1.46
-1.10
-42.97%
IBEX
IBEX
35.77
6.84
23.64%
The Hackett Group Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Hackett Group Expands Credit Facility to Support Transformation
Positive
Aug 4, 2026
On August 3, 2026, The Hackett Group amended and restated its revolving credit facility with Bank of America, extending the maturity to August 3, 2031 and lifting total borrowing capacity by $25 million to $125 million, with $81 million already dr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.