The Hackett Group, Inc. Q4 2025 Earnings Call Summary

Moby Intelligence

Wed, February 18, 2026 astatine 7:30 AM CST 3 min read

• Management is aggressively transitioning from labor-based transportation to labor-led services supported by a suite of proprietary GenAI platforms (AI XPLR, XT, AIX, and Ask Hackett).

• Performance successful Global S&BT and Oracle segments was impacted by marketplace disorder implicit emerging GenAI technologies and the company's ain disruptive pivot toward AI-integrated offerings.

• The SAP Solutions conception saw 32% maturation driven by beardown bundle income and palmy S/4HANA unreality migrations, which absorption expects to prolong request passim the year.

• Management attributes their competitory vantage to 'Hackett Solution Language Models' and proprietary benchmarks that supply the concern process discourse indispensable for high-ROI AI deployment.

• The institution identifies a monolithic 'automation expansion' opportunity, estimating the full addressable marketplace for cognitive automation is 3x to 5x larger than existent static rule-based footprints.

• Strategic acquisitions, specifically LeewayHertz, person been integrated to supply the engineering capabilities required for agentic plan and method solutioning.

• Q1 2026 guidance assumes sequential gross maturation successful Global S&BT and Oracle segments arsenic caller AI transportation platforms statesman to recognize productivity improvements.

• The institution is shifting its pricing exemplary from hourly rates to outcome-based fees, aiming to seizure borderline enlargement from 25% positive productivity gains enabled by AI platforms.

• Management expects to finalize and motorboat a planetary go-to-market collaboration with a large planetary exertion and consulting steadfast soon to accelerate lawsuit access.

• Financial projections for Q1 2026 see a $0.04 per stock headwind owed to an accrued effectual taxation complaint of 26.3% compared to the anterior year.

• The institution plans to motorboat a go-to-market aviator inaugural with ServiceNow successful January 2026 to people associated pursuits utilizing AI XPLR's capabilities.

• The institution volition incur $1 cardinal to $1.5 cardinal successful AI modulation charges successful Q1 2026, chiefly for severance related to headcount reductions made imaginable by AI level efficiencies.

• A banal tender connection for 2 cardinal shares was completed successful Q4, contributing to a full of 2.1 cardinal shares acquired for astir $42 million, with an further $13.6 cardinal summation to the repurchase authorization precocious approved.

• Acquisition-related compensation of $1.1 cardinal successful Q4 was tied to work vesting requirements for the LeewayHertz sellers, treated arsenic an disbursal alternatively than acquisition consideration.

• Management flagged 'confusion' successful the marketplace caused by predominant caller exertion introductions arsenic a short-term headwind to lawsuit decision-making speeds.