The Hackett Group Announces First Quarter 2026 Results

The Hackett Group, Inc. (NASDAQ:HCKT), a leading Gen AI strategic consulting and digital transformation firm that enables Digital World Class® performance, today announced its financial results for the first quarter, which ended on March 27, 2026.

"Over the past two years, we have made disciplined, systematic investments to build a cohesive and highly differentiated AI foundation," stated Ted A. Fernandez, Chairman and CEO of The Hackett Group, Inc. "We believe that the increasing demand for AI, further supported by our expanded partner strategy and our internal transition to a suite of Gen AI‑enabled delivery platforms, provides a significant value creation opportunity for our organization. We are already seeing meaningful productivity gains and expanding scope on engagements leveraging our platforms."

Financial Highlights

• Total revenue in the first quarter of 2026 was $68.8 million and revenue before reimbursements was $67.8 million. This compares to total revenue of $77.9 million and revenue before reimbursements of $76.2 million in the first quarter of the prior year.
• GAAP diluted earnings per share was $0.17 in the first quarter of 2026, as compared to $0.11 in the first quarter of 2025.
• Adjusted diluted earnings per share, a non-GAAP measure, for the first quarter of 2026 was $0.34, which was at the low end of our guidance, as compared to $0.41 in the first quarter of 2025. Adjusted financial information is provided to enhance the understanding of the Company's financial performance and is reconciled to the Company's GAAP information in the accompanying tables.
• As of March 27, 2026, the Company's cash balances were $6.1 million, with $79.0 million outstanding on the Company's credit facility. Cash flows utilized by operations were $5.1 million in the first quarter of 2026, as compared to cash flows from operations of $4.2 million in the first quarter of 2025. As of March 27, 2026, the Company had $22.0 million available under its share repurchase plan.
• Subsequent to the end of the fourth quarter, the Company's Board of Directors declared the second quarterly dividend of $0.12 per share for its shareholders of record on June 22, 2026, to be paid on July 6, 2026.

Business Outlook for the Second Quarter of 2026

Based on the Company's current outlook:

• The Company estimates total revenue before reimbursements for the second quarter of 2026 will be in the range of $68.5 million to $70.0 million.
• The Company estimates adjusted diluted earnings per share for the second quarter of 2026 to be in the range of $0.33 and $0.35, assuming a GAAP effective tax rate of 26.6%.

Conference Call and Webcast Details

• On Tuesday, May 5, 2026, senior management will discuss first quarter results in a conference call at 5:00 P.M. ET. The number for the conference call is (800) 593-0486, [Passcode: First Quarter]. For International callers, please dial (517) 308-9371. Please dial in at least 5-10 minutes prior to start time. If you are unable to participate on the conference call, a rebroadcast will be available beginning at 8:00 P.M. ET on Tuesday, May 5, 2026 and will run through 5:00 P.M. ET on Tuesday, May 19, 2026. To access the rebroadcast, please dial (800) 835-8067. For International callers, please dial (203) 369-3354.
• In addition, The Hackett Group^® will also be webcasting this conference call live. To participate, simply visit https://www.thehackettgroup.com approximately 10 minutes prior to the start of the call and click on the conference call link provided. An online replay of the call will be available after 8:00 P.M. ET on Tuesday, May 5, 2026 and will run through 5:00 P.M. ET on Tuesday, May 19, 2026. To access the replay, visit www.thehackettgroup.com.

Use of Non-GAAP Financial Measures

The Company provides adjusted earnings results (which excludes non-cash stock based compensation expense, stock price award program compensation expense, acquisition-related cash and non-cash stock based compensation expense, amortization expense, acquisition related costs and any one-time costs and includes a GAAP tax rate) as a complement to results provided in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP results are provided to enhance the users' overall understanding of the Company's current financial performance and its prospects for the future. The Company believes the non-GAAP results provide useful information to both management and investors and by excluding certain expenses that it believes are not indicative of its core operating results. The non-GAAP measures are included to provide investors and management with an alternative method for assessing operating results in a manner that is focused on the performance of its ongoing primary operations and to provide a consistent basis for comparison between quarters. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting. The presentation of this additional non-GAAP information should be considered in addition to, and not as a substitute for or superior to, any results prepared in accordance with GAAP. See the reconciliation of actual results titled "Reconciliation of GAAP to Non-GAAP Measures" in the accompanying tables.

The Company believes that the presentation of non-GAAP financial information on a forward-looking basis, including the guidance contained in this release, provides important supplemental information to management and investors regarding its anticipated results of operations. The Company is unable to provide a reconciliation of GAAP measures to corresponding forward-looking non-GAAP measures without unreasonable effort due to the high variability and low visibility of most of the items that have been excluded from these non-GAAP measures. For example, non-cash stock-based compensation expense is impacted by the Company's future hiring needs, the type and volume of equity awards necessary for such future hiring, and the price at which the Company's stock will trade in those future periods. In addition, the provision or benefit for income taxes is impacted by non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions. The effects of these reconciling items may be significant, as the items that are being excluded are difficult to predict.

About The Hackett Group®

The Hackett Group, Inc. (NASDAQ:HCKT) is a Gen AI strategic consulting and digital transformation firm that enables Digital World Class® performance. Using Hackett AI XPLR™, ZBrain™, XT™, AIXelerator™, AskHackett™, and Quantum Leap® platforms, the company's experienced professionals and engineers help organizations realize the power of Gen AI from ideation through implementation to achieve quantifiable, breakthrough results with unprecedented speed, allowing it to be key architects of their Gen AI journey. The Company's expertise is grounded in unparalleled best practices insights from enterprise performance benchmarks from the world's leading businesses – including 97% of the Dow Jones Industrials, 90% of the Fortune 100, 68% of the DAX 40 and 53% of the FTSE 100. Visit us at www.thehackettgroup.com/.

Trademarks

The Hackett Group®, quadrant logo, Digital World Class® and Quantum Leap® are the registered marks of The Hackett Group®.

Cautionary Statement Regarding "Forward-Looking" Statements

This release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as "expects," "anticipates," "intends," "plans," "believes," seeks," "estimates," or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that could impact such forward-looking statements include, among others, changes in worldwide and U.S. economic conditions that impact business confidence and the demand for our products and services, our ability to transition our capabilities to support generative artificial intelligence (AI)-related consulting services and solutions, our ability to effectively integrate acquisitions, including the Leeway acquisition, into our operations, our ability to manage joint ventures and successfully cooperate with our joint venture partners, our ability to retain existing business, our ability to attract additional business, our ability to effectively market and sell our product offerings and other services, the timing of projects and the potential for contract cancellation by our customers, changes in expectations regarding the business consulting and information technology industries, our ability to attract and retain skilled employees, possible changes in collections of accounts receivable due to the bankruptcy or financial difficulties of our customers, risks of competition, price and margin trends, foreign currency fluctuations, the impact of the geopolitical conflict involving Russia and Ukraine and in the Middle East on our business and changes in general economic conditions, interest rates and our ability to obtain additional debt financing if needed as well as other risk detailed in The Hackett Group's reports filed with the United States Securities and Exchange Commission. The Hackett Group does not undertake any duty to update this release or any forward-looking statements contained herein.

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Robert A. Ramirez, CFO, 305-375-8005 or rramirez@thehackettgroup.com