HCKTNasdaqServices-Management Consulting ServicesUS GAAP · USD

The Hackett Group, Inc

The Hackett Group is a U.S.-based management consulting and enterprise application services firm built around proprietary benchmarking and process-intelligence IP. It helps large organizations redesign finance, supply chain, HR, procurement, IT and corporate services processes, and also implements Oracle, SAP, OneStream and eProcurement solutions, increasingly using Gen AI-enabled delivery platforms.

Revenue306m USD
+285.7 %y/y
Operating profit (EBIT)23.5m USD
+203.8 %y/y
EBIT margin7.7%
−2.1 ppy/y
Net income12.9m USD
+263.2 %y/y
Free cash flow32.4m USD
−25.7 %y/y

Fiscal year 2025 · change from previous year

Development 2019–2025

0100200300400m USD2019: 282 m USD2019: EBIT 31 m USD20192021: 279 m USD2021: EBIT 12 m USD20212022: 70 m USD2022: EBIT 14 m USD20222023: 72 m USD2023: EBIT 11 m USD20232024: 79 m USD2024: EBIT 7.7 m USD20242025: 306 m USD2025: EBIT 24 m USD202530624
RevenueOperating profit (EBIT)

Business

Share of revenue
Strategic advisory and benchmarking35 %

Benchmarking studies, executive advisory, and process intelligence used to identify transformation opportunities.

Gen AI consulting and implementation20 %

AI assessment, design, and implementation services that operationalize Gen AI in enterprise workflows.

Oracle Solutions20 %

Oracle ERP and related implementation, customization, integration, and support services.

SAP Solutions15 %

SAP S/4HANA Cloud and SAP ERP planning, deployment, support, and application services.

IPaaS and enterprise application services10 %

Licensable IP, OneStream, eProcurement, AMS, and other application support offerings.

Products

Reported · share of revenue
98.4%FY2025100 %
  • Revenue Before Reimbursements98.4 %
  • Reimbursements1.6 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The company sells primarily to Global 2000 organizations and other sophisticated enterprise buyers that want measurable process improvement and digital transformation. Its work is concentrated in large, multi-year advisory and implementation projects, which makes client retention and executive relationships central to revenue generation. Customers buy Hackett’s services to improve operating efficiency, deploy ERP and finance systems, and move Gen AI pilots into production use cases.

Global 2000 enterprise clients

Large multinational companies buying advisory, benchmarking, and transformation services to improve enterprise functions.

ERP and application implementation clients

Organizations purchasing Oracle, SAP, OneStream, and eProcurement implementation and support services.

Gen AI transformation buyers

Companies using AI XPLR and related services to identify, design, and operationalize Gen AI use cases.

Life sciences and consumer goods clients

A key SAP Solutions focus area where clients buy SAP ERP planning and deployment services.

Strategy

Hackett is pivoting toward a Gen AI and IP platform-based model that combines proprietary benchmarking with platform-enabled delivery. Management wants to expand licensable IP, deepen long-term client relationships, and use channel partners and acquisitions to scale reach and improve margins.

Scale Gen AI platform offeringsShort term

The company believes Gen AI will reshape consulting demand and wants to capture that shift early.

Monetize proprietary IPMedium term

Licensing and platform delivery can improve margins versus labor-only consulting.

Deepen enterprise client relationshipsMedium term

Large projects and repeat engagements support revenue stability and cross-sell.

Expand channels and alliancesMedium term

Partners can increase client access and accelerate adoption of Hackett offerings.

Geography

Hackett operates globally, but management says its primary markets are the United States and Western Europe. Revenue is denominated mainly in U.S. dollars, British pounds and euros, so currency movements can affect reported results, and the company analyzes revenue by the location of engagement team personnel rather than customer headquarters.

Risks

Hackett is exposed to execution risk as it shifts from traditional consulting toward Gen AI-enabled offerings, where market acceptance, security, and delivery quality are still evolving. It also depends on a limited number of large clients, so project timing, contract cancellations, and spending cuts can move revenue materially. Like other consulting firms, it faces competition for talent, pricing pressure, and cybersecurity and data-protection risks tied to handling client information and proprietary IP.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Gen AI strategy execution risk1Client concentration2Cybersecurity and data security3Talent retention and delivery capacity4Pricing and margin pressure5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Gen AI strategy execution riskImpact: HighLikelihood: Medium

    The company is repositioning around AI-enabled consulting and licensing, but adoption, reliability and security are uncertain.

    ExposureAI XPLRZBrainPlatform-enabled delivery
  2. Client concentrationImpact: HighLikelihood: Medium

    A small number of large clients account for a meaningful share of revenue, so loss or delay on one account can hurt results.

    Exposure: Top 10 clients were 24% of 2025 revenue; largest client 6%

  3. Cybersecurity and data securityImpact: HighLikelihood: Medium

    The firm stores and transmits sensitive client and proprietary information, making breaches potentially costly and reputationally damaging.

    Exposure: Internal systems and third-party cloud providers

  4. Talent retention and delivery capacityImpact: MediumLikelihood: Medium

    Consulting revenue depends on skilled professionals who can be deployed quickly and retained in a competitive labor market.

    ExposureAdvisorsConsultantsDelivery teams
  5. Pricing and margin pressureImpact: MediumLikelihood: Medium

    Competition in consulting and ERP services can force lower rates or higher delivery costs.

    ExposureOracleSAPAdvisory services

Accounting

Judgemental items
Revenue recognition on consulting contracts

Management must estimate progress, total costs, and performance obligations on multi-element service contracts.

Impact: Can shift revenue and margin timing between periods

Goodwill impairment

The company carries goodwill from acquisitions and tests it annually using market-based valuation assumptions.

Impact: Potential non-cash impairment charges if valuations weaken

Allowance for credit losses

Large enterprise clients may delay payment or face financial stress, requiring judgment on collectability.

Impact: Affects bad-debt expense and receivables

Business combination valuation

Acquisitions require fair-value estimates for acquired assets and liabilities, including intangibles.

Impact: Influences goodwill, amortization, and future impairment risk

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026