Revenue growth has turned negative with an 11.6% contraction in 2026Q1, while operating margins have faced persistent pressure, declining from a 16.1% peak in 2024Q2 to 13.0% in the most recent quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 296.56M | 305.63M | 313.86M | 296.59M | 293.74M | 278.81M | 239.48M | 282.47M | 285.89M | 285.86M | 288.56M | 260.94M | 236.74M | 223.83M | 234.06M | 225.12M | 201.35M | 142.7M | 192.1M | 177.01M | 180.56M | 163.32M | 143.55M | 132.39M | 176.85M | 247.46M | 311.14M | 260.5M | 102.7M |
| Revenue Growth % | -5.71% | -2.62% | 5.82% | 0.97% | 5.36% | 16.42% | -15.22% | -1.19% | 0.01% | -0.94% | 10.59% | 10.22% | 5.77% | -4.37% | 3.97% | 11.8% | 41.1% | -25.72% | 8.53% | -1.96% | 10.55% | 13.77% | 8.43% | -25.14% | -28.54% | -20.47% | 19.44% | 153.65% | - |
| Cost of Goods Sold | 138.45M | 188.46M | 190.62M | 180.21M | 178.17M | 173.15M | 166.37M | 185.68M | 186.28M | 188.92M | 191.93M | 173.38M | 158.74M | 153.9M | 158.76M | 151.1M | 133.14M | 98.09M | 115.73M | 107M | 111.49M | 99.26M | 89.98M | 87.5M | 125.47M | 155.15M | 169.6M | 144.1M | 58.1M |
| COGS % of Revenue | - | 61.66% | 60.73% | 60.76% | 60.65% | 62.1% | 69.47% | 65.73% | 65.16% | 66.09% | 66.51% | 66.45% | 67.05% | 68.76% | 67.83% | 67.12% | 66.12% | 68.74% | 60.24% | 60.45% | 61.75% | 60.77% | 62.68% | 66.1% | 70.95% | 62.7% | 54.51% | 55.32% | 56.57% |
| Gross Profit | 89.31M | 117.17M | 123.24M | 116.38M | 115.58M | 105.66M | 73.11M | 96.79M | 99.6M | 96.94M | 96.63M | 87.56M | 78M | 69.94M | 75.3M | 74.01M | 68.21M | 44.61M | 76.37M | 70.01M | 69.06M | 64.06M | 53.56M | 44.88M | 51.38M | 92.31M | 141.53M | 116.4M | 44.6M |
| Gross Margin % | 30.12% | 38.34% | 39.27% | 39.24% | 39.35% | 37.9% | 30.53% | 34.27% | 34.84% | 33.91% | 33.49% | 33.55% | 32.95% | 31.24% | 32.17% | 32.88% | 33.88% | 31.26% | 39.76% | 39.55% | 38.25% | 39.23% | 37.32% | 33.9% | 29.05% | 37.3% | 45.49% | 44.68% | 43.43% |
| Gross Profit Growth % | - | -4.93% | 5.89% | 0.7% | 9.38% | 44.52% | -24.46% | -2.82% | 2.75% | 0.32% | 10.37% | 12.25% | 11.53% | -7.13% | 1.74% | 8.51% | 52.89% | -41.59% | 9.09% | 1.37% | 7.81% | 19.6% | 19.34% | -12.64% | -44.34% | -34.78% | 21.59% | 160.99% | - |
| Operating Expenses | 85.52M | 90.52M | 78.65M | 67.12M | 60.33M | 59.19M | 64.47M | 65.45M | 64.12M | 64.45M | 62.08M | 65.63M | 61.59M | 54.21M | 58.69M | 56.77M | 55.76M | 46.22M | 58.47M | 61.06M | 67.05M | 60.59M | 50.81M | 45.19M | 73.42M | 93.56M | 127.32M | 93.1M | 32.2M |
| OpEx % of Revenue | - | 29.62% | 25.06% | 22.63% | 20.54% | 21.23% | 26.92% | 23.17% | 22.43% | 22.54% | 21.51% | 25.15% | 26.02% | 24.22% | 25.07% | 25.22% | 27.69% | 32.39% | 30.44% | 34.5% | 37.14% | 37.1% | 35.4% | 34.13% | 41.51% | 37.81% | 40.92% | 35.74% | 31.35% |
| Selling, General & Admin | 85.52M | 90.52M | 78.55M | 65.94M | 60.98M | 59.19M | 53.98M | 62.07M | 61.75M | 62.36M | 60.98M | 63.42M | 61.59M | 54.21M | 58.69M | 56.77M | 55.76M | 46.22M | 58.47M | 63.63M | 67.05M | 60.59M | 50.81M | 43.95M | 53.42M | 93.56M | 114.73M | 82.7M | 28.9M |
| SG&A % of Revenue | - | 29.62% | 25.03% | 22.23% | 20.76% | 21.23% | 22.54% | 21.98% | 21.6% | 21.81% | 21.13% | 24.31% | 26.02% | 24.22% | 25.07% | 25.22% | 27.69% | 32.39% | 30.44% | 35.95% | 37.14% | 37.1% | 35.4% | 33.2% | 30.2% | 37.81% | 36.88% | 31.75% | 28.14% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 102K | 1.18M | -651K | 0 | 10.49M | 3.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.57M | 0 | 0 | 0 | 1.24M | 20M | 0 | 12.59M | 10.4M | 3.3M |
| Operating Income | 31.18M | 26.65M | 44.59M | 49.26M | 55.25M | 46.48M | 8.64M | 31.34M | 33.57M | 30.82M | 34.55M | 21.93M | 14.65M | 15.73M | 16.83M | 17.24M | 12.45M | -7.04M | 17.9M | 8.95M | -4.64M | 546K | -996K | -5.18M | -32.93M | -9.74M | 14.21M | 23.3M | 12.4M |
| Operating Margin % | 10.51% | 8.72% | 14.21% | 16.61% | 18.81% | 16.67% | 3.61% | 11.09% | 11.74% | 10.78% | 11.97% | 8.4% | 6.19% | 7.03% | 7.19% | 7.66% | 6.18% | -4.93% | 9.32% | 5.06% | -2.57% | 0.33% | -0.69% | -3.91% | -18.62% | -3.93% | 4.57% | 8.94% | 12.07% |
| Operating Income Growth % | - | -40.24% | -9.49% | -10.83% | 18.87% | 437.79% | -72.42% | -6.66% | 8.93% | -10.8% | 57.6% | 49.66% | -6.85% | -6.55% | -2.39% | 38.46% | 276.88% | -139.33% | 100.03% | 292.76% | -950.18% | 154.82% | 80.76% | 84.27% | -238.15% | -168.52% | -39.01% | 87.9% | - |
| EBITDA | 35.19M | 31.83M | 48.51M | 52.68M | 58.69M | 50.85M | 13.12M | 35.58M | 38.41M | 35.35M | 38.14M | 24.13M | 19.22M | 18.21M | 19.46M | 20.07M | 16.25M | -4.12M | 20.68M | 12.39M | 526K | 5.42M | 4.18M | -224K | -27.6M | 2.79M | 26.8M | 33.7M | 15.7M |
| EBITDA Margin % | 11.87% | 10.41% | 15.45% | 17.76% | 19.98% | 18.24% | 5.48% | 12.6% | 13.43% | 12.37% | 13.22% | 9.25% | 8.12% | 8.14% | 8.31% | 8.91% | 8.07% | -2.89% | 10.77% | 7% | 0.29% | 3.32% | 2.91% | -0.17% | -15.61% | 1.13% | 8.61% | 12.94% | 15.29% |
| EBITDA Growth % | -15.44% | -34.39% | -7.93% | -10.23% | 15.4% | 287.57% | -63.12% | -7.36% | 8.64% | -7.3% | 58.04% | 25.56% | 5.53% | -6.39% | -3.04% | 23.49% | 494.39% | -119.92% | 66.89% | 2256.08% | -90.29% | 29.54% | 1966.52% | 99.19% | -1087.8% | -89.57% | -20.48% | 114.65% | - |
| D&A (Non-Cash Add-back) | 4.01M | 5.18M | 3.92M | 3.42M | 3.44M | 4.38M | 4.48M | 4.24M | 4.83M | 4.53M | 3.58M | 2.21M | 4.57M | 2.48M | 2.63M | 2.83M | 3.8M | 2.92M | 2.78M | 3.44M | 5.17M | 4.87M | 5.18M | 4.95M | 5.33M | 12.53M | 12.59M | 10.4M | 3.3M |
| EBIT | 19.13M | 23.53M | 44.59M | 49.26M | 55.25M | 46.48M | 8.64M | 31.34M | 36.97M | 34.47M | 33.52M | 21.93M | 17.64M | 15.73M | 17.07M | 16.93M | 14.2M | -1.6M | 18.34M | 8.95M | 2.01M | 3.47M | 2.75M | -303K | -22.04M | 6.18M | 20.68M | 23.3M | -58.1M |
| Net Interest Income | -1.51M | -1.72M | -1.59M | -3.23M | -144K | -95K | -126K | -311K | -638K | -584K | -387K | -409K | -620K | -465K | -610K | 33K | 22K | 51K | 442K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3K | 6K | 7K | 20K | 33K | 22K | 51K | 442K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 506K | 1.72M | 1.59M | 3.23M | 144K | 95K | 126K | 311K | 638K | 584K | 387K | 412K | 626K | 472K | 630K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -5.63M | -4.83M | -1.59M | -3.23M | -144K | -95K | -126K | -311K | -638K | -584K | -387K | -409K | -620K | -465K | -610K | 33K | 1.75M | -5.42M | 442K | 325K | 507K | 52K | 802K | 706K | 561K | 843K | 89K | -12.5M | -4.2M |
| Pretax Income | 25.55M | 21.82M | 42.99M | 46.03M | 55.1M | 46.38M | 8.52M | 31.03M | 32.94M | 30.24M | 34.17M | 21.52M | 14.03M | 15.26M | 16.22M | 17.27M | 14.2M | -7.02M | 18.34M | 9.27M | -4.13M | 1.64M | -194K | -4.47M | -32.37M | -8.68M | 14.84M | 10.8M | -28.6M |
| Pretax Margin % | 8.61% | 7.14% | 13.7% | 15.52% | 18.76% | 16.64% | 3.56% | 10.98% | 11.52% | 10.58% | 11.84% | 8.25% | 5.93% | 6.82% | 6.93% | 7.67% | 7.05% | -4.92% | 9.55% | 5.24% | -2.29% | 1% | -0.14% | -3.38% | -18.3% | -3.51% | 4.77% | 4.15% | -27.85% |
| Income Tax | 11.46M | 8.88M | 13.36M | 11.88M | 14.3M | 4.83M | 2.87M | 7.74M | 5.58M | 2.88M | 12.63M | 7.71M | 4.32M | 6.4M | 3.51M | 780K | -26K | -212K | 465K | 278K | 913K | -6K | 324K | 350K | -3.51M | -161K | 6.94M | 7.6M | 300K |
| Effective Tax Rate % | 44.88% | 40.68% | 31.08% | 25.8% | 25.95% | 10.41% | 33.71% | 24.96% | 16.93% | 9.54% | 36.95% | 35.82% | 30.77% | 41.92% | 21.65% | 4.52% | -0.18% | 3.02% | 2.54% | 3% | -22.08% | -0.37% | -167.01% | -7.83% | 10.84% | 1.85% | 46.76% | 70.37% | -1.05% |
| Net Income | 14.08M | 12.94M | 29.63M | 34.15M | 40.8M | 41.55M | 5.47M | 23.28M | 23.91M | 27.35M | 21.54M | 13.81M | 9.71M | 8.73M | 16.7M | 21.77M | 14.23M | -6.81M | 17.88M | 8.99M | -5.05M | 1.64M | -148K | -4.82M | -68.96M | -8.52M | 7.9M | 1.1M | -28.9M |
| Net Margin % | 4.75% | 4.23% | 9.44% | 11.51% | 13.89% | 14.9% | 2.29% | 8.24% | 8.36% | 9.57% | 7.46% | 5.29% | 4.1% | 3.9% | 7.13% | 9.67% | 7.07% | -4.77% | 9.31% | 5.08% | -2.8% | 1% | -0.1% | -3.64% | -38.99% | -3.44% | 2.54% | 0.42% | -28.14% |
| Net Income Growth % | -41.43% | -56.32% | -13.24% | -16.3% | -1.79% | 659.09% | -76.49% | -2.64% | -12.59% | 26.99% | 55.99% | 42.17% | 11.27% | -47.72% | -23.3% | 53.01% | 308.85% | -138.11% | 98.73% | 278.19% | -407.62% | 1208.78% | 96.93% | 93.01% | -709.47% | -207.82% | 618.27% | 103.81% | - |
| Net Income (Continuing) | 14.08M | 12.94M | 29.63M | 34.15M | 40.8M | 41.55M | 5.64M | 23.28M | 27.36M | 25.56M | 20.68M | 13.81M | 9.71M | 8.86M | 16.92M | 21.77M | 14.23M | -6.81M | 17.88M | 8.99M | -5.05M | 604K | -518K | -4.82M | -28.85M | -402K | 8.93M | 3.2M | -61.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | -7K | -172K | -6K | 0 | 1.8M | 866K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 370K | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.56 | 0.47 | 1.05 | 1.24 | 1.28 | 1.26 | 0.17 | 0.72 | 0.74 | 0.85 | 0.66 | 0.43 | 0.33 | 0.27 | 0.50 | 0.52 | 0.34 | -0.18 | 0.43 | 0.20 | -0.11 | 0.01 | -0.00 | -0.11 | -1.49 | -0.19 | 0.18 | 0.03 | -1.16 |
| EPS Growth % | -37.65% | -55.24% | -15.32% | -3.13% | 1.59% | 641.18% | -76.39% | -2.7% | -12.94% | 28.79% | 53.49% | 30.3% | 22.22% | -46% | -3.85% | 52.94% | 288.89% | -141.86% | 115% | 281.82% | -1200% | - | 97% | 92.62% | -684.21% | -205.56% | 500% | 102.59% | - |
| EPS (Basic) | - | 0.47 | 1.08 | 1.26 | 1.30 | 1.38 | 0.18 | 0.78 | 0.74 | 0.95 | 0.74 | 0.47 | 0.34 | 0.29 | 0.53 | 0.55 | 0.35 | -0.18 | 0.44 | 0.20 | -0.11 | 0.01 | -0.00 | -0.11 | -1.49 | -0.19 | 0.20 | 0.03 | -1.16 |
| Diluted Shares Outstanding | 25.17M | 27.3M | 28.09M | 27.64M | 31.96M | 32.88M | 32.41M | 32.45M | 32.33M | 32.2M | 32.81M | 31.97M | 29.88M | 32.12M | 33.51M | 41.88M | 42.37M | 38.24M | 41.5M | 44.98M | 44.65M | 45.3M | 44.19M | 45.14M | 46.35M | 44M | 45.14M | 43.1M | 24.84M |
| Basic Shares Outstanding | 25.17M | 27.3M | 27.56M | 27.17M | 31.4M | 30.02M | 29.99M | 29.8M | 32.19M | 28.85M | 29.08M | 29.62M | 28.72M | 30.28M | 31.7M | 39.9M | 40.35M | 38.24M | 40.47M | 44.13M | 44.65M | 43.58M | 44.19M | 45.14M | 46.35M | 44M | 40.26M | 34.95M | 24.84M |
| Dividend Payout Ratio | - | 99.69% | 40.88% | 35.06% | 25.58% | 31.01% | 272.92% | 48.1% | 42.03% | 31.7% | 33.25% | 22.21% | 36.12% | 35.47% | 18.45% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical consulting demand volatility
As indicated by the most recent quarterly filings, HCKT experienced a revenue decline of 11.6% in 2026Q1, marking a significant departure from the modest growth observed in previous periods and highlighting the firm's sensitivity to shifting corporate IT budget allocations and discretionary consulting project deferrals.
The recent top-line contraction suggests that the firm's reliance on project-based ERP implementation is currently facing headwinds as clients tighten capital expenditure. Investors should monitor whether this trend represents a temporary pause in digital transformation cycles or a more structural shift in demand for the firm's advisory services.
Based on the reported financial data, the company's operating margin has fluctuated significantly, dropping to 13.0% in 2026Q1 from a peak of 16.1% in 2024Q2, which underscores the inherent difficulty in maintaining profitability when billable utilization rates face downward pressure in a softening demand environment.
The compression in operating margins suggests that the firm's labor-heavy cost structure lacks the flexibility to fully offset revenue declines. This volatility implies that the firm's profitability is highly leveraged to consultant utilization, making it vulnerable to even minor shifts in project volume.
According to historical income statements, the firm's net income has been periodically impacted by significant stock-based compensation expenses, which reached $9.7 million in both 2025Q2 and 2025Q1, thereby obscuring the underlying cash-generative capacity of the core advisory and implementation business segments for equity holders.
The reliance on equity-based incentives to retain specialized talent creates a disconnect between reported GAAP earnings and actual operational performance. Analysts should adjust for these non-cash charges to better assess the true economic profitability of the firm's intellectual property and benchmarking assets.
As reported in recent financial statements, SG&A expenses have remained elevated relative to revenue, consuming a substantial portion of gross profit and limiting the firm's ability to translate top-line billings into consistent bottom-line growth during periods of revenue stagnation or decline across the broader consulting practice.
The persistence of high SG&A costs suggests that the firm is maintaining a fixed overhead base to support its research and sales capabilities, which may be unsustainable if revenue growth does not recover. This cost structure warrants further investigation into management's ability to scale expenses alongside fluctuating project demand.
While the firm's proprietary database is often cited as a competitive advantage, the recent performance data suggests that this moat may be insufficient to insulate the company from broader industry cyclicality, as evidenced by the inconsistent revenue growth and margin volatility observed over the last ten quarters.
Short-sellers might argue that the firm's benchmarking data is increasingly susceptible to commoditization by AI-driven analytical tools, which could erode the pricing power of its advisory services. The current financial results appear to support the view that HCKT remains a cyclical consultancy rather than a high-margin, scalable data platform.
Quick answers to the most common questions about buying HCKT stock.
For fiscal year 2025, The Hackett Group, Inc. (HCKT) reported total revenue of $305.6M. This represents a 197.6% increase compared to $102.7M in 1998.
The Hackett Group, Inc. (HCKT) is profitable, generating $12.9M in net income for the fiscal year ending 2025 with a net profit margin of 4.2%.
The Hackett Group, Inc. (HCKT) reported an operating income of $26.6M, resulting in an operating profit margin of 8.7%. This margin reflects the operational efficiency of the business before interest and taxes.
The Hackett Group, Inc. (HCKT) generated $117.2M in gross profit for the year, representing a gross profit margin of 38.3%. This demonstrates the company's core pricing power and production efficiency.