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The Hackett Group, Inc.

thehackettgroup.com

What Do They Do?

Provides generative AI-enabled advisory, business transformation and enterprise software implementation services to large global organizations and sophisticated business buyers.

How Do They Make Money?

Clients pay for consulting and implementation projects, software licenses, support and maintenance, and advisory subscriptions. Project invoices are typically sent biweekly, monthly or at milestones; subscription and maintenance fees cover service periods, while software resale and advisory subscriptions are invoiced at contract start, and travel expenses are passed through.

revenue
SegmentShareRevenue
Revenue Before Reimbursements
Mix

98%
FY2022: 99%
Reimbursements
1.6%
FY2022: 1.4%

Who Are Their Customers?

Clients are primarily large global organizations and sophisticated buyers of business consulting and information technology services. Hackett develops business through leadership-led selling, dedicated sales teams, membership programs and strategic alliances.

Customers above 10% of revenue, FY2025
of revenue from one customer
FY2023: 6% from one customer

Do Revenues Turn Into Profits?

Yes. It kept 4 cents of every revenue dollar as net income in FY2025 and turned 11 cents into free cash flow.

Operating income, FY2025
8% of revenue
▼ −47% vs FY2024 ($44.6M, 14%)
Net income, FY2025
4% of revenue
▼ −56% vs FY2024 ($29.6M, 9%)
Free cash flow, FY2025
11% of revenue
▼ −26% vs FY2024 ($43.7M, 14%)

How Are They Changing?

Since the FY2025 annual report
Latest quarter: Q2 FY2026, the three months to Jun 26, 2026
Revenue
▼ −12%
vs $78.9M in Q2 FY2025
Net income
▲ +165%
vs $1.7M in Q2 FY2025
Revenue Before Reimbursements share of revenue vs 98.4% in Q2 FY2025
  • Aug 4, 2026 Issued third-quarter revenue and adjusted earnings guidance It estimated third-quarter revenue before reimbursements at $68.0 million to $70.0 million and adjusted diluted earnings per share at $0.37 to $0.39.

Growing. Revenue grew 10% in 4 years, from $278.8M in FY2021 to $305.6M in FY2025, about 2% a year.

Generative AI platform delivery The older report described benchmarking, executive advisory, IP-as-a-service, market intelligence and digital transformation; the latest centers the business on generative AI platforms supporting advisory, transformation and application implementation.

Revenue over time
Revenue Before Reimbursements Reimbursements
$500M$250M$0

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