Hackett Group Reports $74.8M Q4 Revenue and $0.40 EPS, Accelerates GenAI Licenses
Hackett posted Q4 revenue of $74.8M and adjusted EPS of $0.40, repurchasing 2.1M shares for $42M and declaring a $0.12 dividend. SAP Solutions rose 32% to $22.2M while Oracle Solutions fell 20%; management accelerated a shift toward GenAI-enabled licensable platforms and guided Q1 revenue to $70.5M–$72.0M.
1. Q4 Financial Results
Hackett reported fourth-quarter revenue of $74.8 million and adjusted earnings per share of $0.40, exceeding the high end of its guidance range. Reimbursable expenses represented 1.2% of revenue before reimbursements compared with 2.3% a year earlier, while adjusted gross margin was 46.6%.
2. Segment Performance and Q1 Outlook
SAP Solutions revenue climbed 32% year-over-year to $22.2 million, driven by strong software-related sales and S/4HANA Cloud migrations. Oracle Solutions revenue declined 20% to $14.0 million and Global S&BT fell 11% to $38.6 million, with management forecasting Q1 revenue of $70.5–72.0 million and adjusted EPS of $0.34–0.36.
3. GenAI Platform Strategy and Licensing
Management accelerated a shift toward GenAI-enabled, licensable platforms—including AI Explorer v5, AI X, XT and Ask Hackett—to move from labor-based delivery to platform-led services, targeting higher margins and recurring revenue. The company expects to begin licensing its platform suite throughout the year under outcome-based pricing models.
4. Capital Returns and Cash Position
Hackett repurchased 2.1 million shares for approximately $42 million and raised its buyback authorization by $25 million, while declaring a $0.12 quarterly dividend. The company ended the quarter with $18.2 million in cash and generated $19.1 million of net operating cash flow.