The Hackett Group (HCKT)
NASDAQ:HCKT
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The Hackett Group
(NASDAQ:HCKT)
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Rating:52Neutral
Price Target:
$14.00
▲(0.29% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by weakening 2025 fundamentals (profitability decline and higher leverage despite solid cash generation) and bearish technicals (price below key moving averages with negative MACD). Valuation is mixed (good yield but higher P/E), while the earnings call points to a credible GenAI/platform strategy but near-term guidance and margin pressure keep risk elevated.
Positive Factors
Strong cash generation
The company has delivered positive operating and free cash flow across periods and reported $19.1M operating cash in the quarter. Persistent cash generation supports funding of platform investments, dividends and buybacks, improving strategic optionality during the GenAI pivot and cushioning cyclical pressure.
Negative Factors
Rising leverage and weaker equity cushion
Leverage moved meaningfully higher in 2025 as debt increased and equity fell, reducing balance-sheet flexibility. Higher indebtedness limits capacity for opportunistic investments, raises financing risk if cash flow weakens, and amplifies downside during the company's platform transition period.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
The company has delivered positive operating and free cash flow across periods and reported $19.1M operating cash in the quarter. Persistent cash generation supports funding of platform investments, dividends and buybacks, improving strategic optionality during the GenAI pivot and cushioning cyclical pressure.
Read all positive factors
The Hackett Group (HCKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$329.63M
Dividend Yield2.41%
Average Volume (3M)219.84K
Price to Earnings (P/E)42.1
Beta (1Y)0.90
Revenue Growth-2.62%
EPS Growth-55.67%
CountryUS
Employees1,618
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.40
Shares Outstanding25,220,226
10 Day Avg. Volume176,523
30 Day Avg. Volume219,838
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 Cap1.19
Enterprise Value/Revenue1.28
Enterprise Value/Gross Profit3.34
Enterprise Value/Ebitda13.62
Forecast
1Y Price Target
$23.67Price Target Upside69.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.69
Revenue Forecast (FY)$294.50M
The Hackett Group Business Overview & Revenue Model
Company Description
The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm primarily in North America and internationally. It offers best practice intelligence center, an online searchable repository; best practice accelerators that p...
How the Company Makes Money
The Hackett Group generates revenue primarily through its consulting services, which include strategic advisory, performance benchmarking, and managed services. The company typically charges clients on a project basis for its consulting engagement...
The Hackett Group Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call balanced solid operational highlights—beating guidance, strong SAP growth (+32% YoY), platform licensing rollout, strategic partnerships, and healthy operating cash flow enabling buybacks—with notable near-term challenges including declines in Global S&BT (-11% YoY) and Oracle (-20% YoY), margin and adjusted EBITDA compression, increased leverage from share repurchases, and expected AI transition charges. Management emphasized a strategic pivot to GenAI platforms that may drive higher-margin, recurring license revenue over time, but near-term guidance and margin headwinds indicate a transitional period with both opportunities and execution risks.Positive Updates
Revenue and EPS Beat Guidance
Total revenues before reimbursements of $74.8M in Q4 FY2025, which exceeded the high end of company guidance; adjusted diluted EPS of $0.40, at the high end of quarterly guidance.
Negative Updates
Global S&BT Revenue Decline
Global S&BT segment revenues were $38.6M in Q4, down 11% year-over-year, reflecting demand disruption during the transition to AI-enabled services.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and EPS Beat Guidance
Total revenues before reimbursements of $74.8M in Q4 FY2025, which exceeded the high end of company guidance; adjusted diluted EPS of $0.40, at the high end of quarterly guidance.
Read all positive updates
Company Guidance
For Q1 2026 the company guided total revenues before reimbursements of $70.5 million to $72.0 million and adjusted diluted net income per share of $0.34–$0.36 (assuming a GAAP effective tax rate on adjusted earnings of 26.3% vs. 20.1% in Q1 last year, an unfavorable tax impact of ~ $0.04 per share); it expects adjusted gross margin of ~44%–45%, adjusted SG&A and interest expense of approximately $20 million, and adjusted EBITDA of roughly 19.5%–20.5% of revenues. Management noted Q1 AI transition charges of about $1.0–$1.5 million (severance) that will be excluded from adjusted results, warned of seasonality-driven sequential increases in U.S. payroll taxes and vacation accruals, said Global S&BT and Oracle are forecast to be down year‑over‑year but up sequentially from Q4 while SAP is expected to remain up year‑over‑year, and cautioned that cash balances (excluding buybacks) will be tempered by payment of 2025 performance bonuses and employee tax withholding; by comparison, Q4 revenue before reimbursements was $74.8 million with adjusted diluted EPS of $0.40.The Hackett Group Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 305.63M | 313.86M | 296.59M | 293.74M | 278.81M |
| Gross Profit | 117.17M | 123.24M | 116.38M | 115.58M | 105.66M |
| EBITDA | 28.71M | 48.51M | 52.68M | 58.69M | 50.85M |
| Net Income | 12.94M | 29.63M | 34.15M | 40.80M | 41.55M |
Balance Sheet | |||||
| Total Assets | 204.64M | 191.88M | 181.43M | 184.99M | 207.54M |
| Cash, Cash Equivalents and Short-Term Investments | 18.20M | 16.37M | 20.96M | 30.25M | 45.79M |
| Total Debt | 79.52M | 15.68M | 34.42M | 61.11M | 3.77M |
| Total Liabilities | 136.54M | 76.30M | 91.35M | 126.72M | 63.69M |
| Stockholders Equity | 68.10M | 115.57M | 90.08M | 58.28M | 143.85M |
Cash Flow | |||||
| Free Cash Flow | 32.44M | 43.65M | 33.30M | 54.25M | 43.11M |
| Operating Cash Flow | 40.30M | 47.73M | 37.40M | 58.90M | 46.35M |
| Investing Cash Flow | -8.63M | -10.62M | -4.10M | -4.66M | -3.24M |
| Financing Cash Flow | -29.77M | -41.66M | -42.56M | -69.74M | -46.74M |
The Hackett Group Technical Analysis
Neutral
13.96
Price Trends
13.66
Positive
16.45
Negative
18.34
Negative
Market Momentum
-0.11
Negative
56.62
Neutral
88.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCKT, the sentiment is Neutral. The current price of 13.96 is above the 20-day moving average (MA) of 13.07, above the 50-day MA of 13.66, and below the 200-day MA of 18.34, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 88.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $374.55M | 10.52 | 31.85% | ― | 15.63% | 49.15% | |
67 Neutral | $192.60M | 29.80 | 9.87% | 3.03% | -1.16% | 237.57% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $329.63M | 42.13 | 12.82% | 2.41% | -2.62% | -55.67% | |
48 Neutral | $265.22M | -1.68 | -20.84% | ― | -9.36% | -151.22% | |
45 Neutral | $188.77M | 2.63 | 126.78% | ― | -2.90% | -69.87% |
* Technology Sector Average
HCKT
The Hackett Group
13.07
-11.82
-47.48%
III
Information Services Group
4.04
0.30
8.14%
UIS
Unisys
2.61
-1.36
-34.26%
CNDT
Conduent
1.71
-0.40
-18.96%
IBEX
IBEX
27.94
2.90
11.58%
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.