Loading...
Hackett Q1 2025 Earnings Report
The Hackett Group announced its financial results for the first quarter ended March 28, 2025, reporting total revenue of $77.9 million and diluted earnings per share of $0.11.
Key Takeaways
The Hackett Group reported first-quarter 2025 operating results near and at the high end of their revenue and adjusted earnings per share guidance, respectively. The company achieved this while aggressively investing in and growing its Gen AI platforms and revenues, and also released AI XPLR version 3.
Total revenue for Q1 2025 was $77.9 million, with revenue before reimbursements at $76.2 million, near the high end of guidance.
GAAP diluted earnings per share was $0.11, impacted by non-cash compensation expense of $5.1 million and acquisition-related expenses of $2.4 million.
Adjusted diluted earnings per share was $0.41, at the high end of guidance, compared to $0.39 in the prior year.
Cash flow from operations was $4.2 million, and the company repurchased 379 thousand shares for $11.7 million, with $21.3 million remaining in authorization.
Hackett
Hackett
Hackett Revenue by Segment
Revenue by Segment
Global S&BT Revenue
CapyFin.comOracle Solutions Revenue
CapyFin.comSAP Solutions Revenue
CapyFin.com Forward Guidance
For the second quarter of 2025, The Hackett Group estimates total revenue before reimbursements to be in the range of $76.0 million to $77.5 million, and adjusted diluted earnings per share to be between $0.37 and $0.39, assuming a GAAP effective tax rate of 27%.
Positive Outlook
- Continued AI XPLR innovation is expected to accelerate growth.
- Advanced Gen AI implementation capabilities are anticipated to help develop significant channel partner relationships.
- The company's aggressive investment in and growth of Gen AI platforms and revenues are expected to continue.
- The release of AI XPLR version 3 is expected to enhance client prioritization and custom design of use cases.
- The company's ability to meet the high end of its Q1 guidance suggests strong operational execution.
Challenges Ahead
- GAAP effective tax rate of 27% is assumed, which could impact net earnings if different.
- The guidance for Q2 2025 revenue before reimbursements ($76.0M-$77.5M) is slightly lower than Q1 2025 actual ($76.2M), indicating potential flat to slight decrease.
- The guidance for Q2 2025 adjusted diluted EPS ($0.37-$0.39) is lower than Q1 2025 actual ($0.41), indicating a potential decrease.
- The impact of non-cash compensation and acquisition-related expenses on GAAP EPS remains a factor.
- Market conditions and competitive landscape could affect the realization of growth acceleration from Gen AI initiatives.
Revenue & Expenses
Visualization of income flow from segment revenue to net income