HACKETT GROUP, INC. Segments Disclosure
15. Segment Information and Geographical Data
Management has made the determination that it has three operating segments and three reportable segments: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions. Global S&BT includes the results of the Company’s strategic business consulting practices; Oracle Solutions includes the results of the Company’s Oracle EPM/ERP and AMS practices; SAP Solutions includes the Company’s SAP applications and related SAP service offerings. The SAP Solutions reportable segment is the only segment that contains software license sales.
The Company’s chief operating decision maker ("CODM"), its (CEO), reviews the financial information presented for purposes of allocating resources and evaluating segment financial performance. The CODM primarily uses revenue before reimbursement generated by the segment, cost of sales, gross margin, selling, general and administrative costs and contribution margin as a measures of profitability for each of its segments as these measures provide a comprehensive view of the segments’ financial performance. The measurement criteria for segment profit or loss are substantially the same for each reportable segment, excluding any unusual or infrequent items, if any. Unallocated costs include corporate costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. Segment information related to assets has been omitted as the CODM does not receive discrete financial information regarding assets at the segment level. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.
15. Segment Information and Geographical Data (continued)
The tables below set forth information about the Company’s operating segments for the years ended December 26, 2025, December 27, 2024 and December 29, 2023 along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands):
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Year Ended |
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December 26, |
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December 27, |
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December 29, |
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2025 |
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2024 |
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2023 |
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Global S&BT: |
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Revenue before reimbursements* |
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$ |
167,266 |
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$ |
168,274 |
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$ |
169,521 |
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Cost of sales |
|
|
86,177 |
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|
89,276 |
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|
89,646 |
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Gross margin |
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81,089 |
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|
78,998 |
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|
79,875 |
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Selling, general and administrative costs |
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30,295 |
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|
|
27,416 |
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|
25,509 |
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Segment contribution |
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50,794 |
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|
51,582 |
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|
54,366 |
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Oracle Solutions: |
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Revenue before reimbursements* |
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$ |
71,247 |
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$ |
82,472 |
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$ |
75,828 |
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Cost of sales |
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50,884 |
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|
55,855 |
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|
|
51,840 |
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Gross margin |
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20,363 |
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26,617 |
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|
23,988 |
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Selling, general and administrative costs |
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7,967 |
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|
7,507 |
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5,928 |
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Segment contribution |
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12,396 |
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19,110 |
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18,060 |
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SAP Solutions: |
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Revenue before reimbursements* |
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$ |
62,333 |
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$ |
56,282 |
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$ |
45,924 |
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Cost of sales |
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31,832 |
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27,757 |
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27,179 |
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Gross margin |
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$ |
30,501 |
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$ |
28,525 |
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$ |
18,745 |
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Selling, general and administrative costs |
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10,116 |
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9,782 |
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6,820 |
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Segment contribution |
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20,385 |
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18,743 |
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11,925 |
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Total Company: |
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Total segment contribution margin |
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$ |
83,575 |
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$ |
89,435 |
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$ |
84,351 |
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Items not allocated to segment level: |
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Corporate general and administrative expenses** |
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20,542 |
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20,787 |
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19,766 |
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Non-cash stock based compensation expense |
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10,915 |
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11,782 |
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10,724 |
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Stock price award program compensation expense |
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16,804 |
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5,745 |
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— |
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Acquisition-related compensation expense |
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178 |
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|
390 |
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— |
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Acquisition-related non-cash stock based compensation expense |
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2,911 |
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1,997 |
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— |
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Acquisition-related costs |
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399 |
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|
125 |
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— |
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Restructuring costs |
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3,112 |
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— |
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— |
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Depreciation and amortization |
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5,180 |
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3,919 |
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3,421 |
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Legal settlement and related costs |
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— |
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|
102 |
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1,178 |
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Interest expense, net |
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1,716 |
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1,594 |
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3,235 |
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Income from operations before taxes |
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$ |
21,818 |
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$ |
42,994 |
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$ |
46,027 |
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*Revenue before reimbursable expenses, excludes reimbursable expenses which are project travel-related expenses passed through to clients with no associated operating margin.
**Corporate general and administrative expenses primarily include costs related to business support functions including accounting and finance, human resources, legal, information technology and office administration. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits that are not allocated to the segments..
15. Segment Information and Geographical Data (continued)
Total revenue by segment is included in Note 1, "Basis of Presentation and General Information."
During the year ended December 26, 2025, the Company had one client that exceeded 5% of total revenue, of which $11.8 million is included in the Global S&BT segment, $6.2 million is included in the Oracle segment and $22 thousand is included in the SAP segment.
The tables below set forth information on the Company's geographical data. Total revenue, which is primarily based on the country of the contracting entity, was attributed to the following geographical areas (in thousands):
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Year Ended |
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December 26, |
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December 27, |
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December 29, |
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2025 |
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2024 |
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2023 |
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Revenue: |
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United States |
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$ |
246,071 |
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$ |
259,443 |
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$ |
251,012 |
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Europe (U.K., Germany, France and Switzerland) |
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34,270 |
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35,287 |
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28,648 |
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Other (Australia, Canada, India and Uruguay) |
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25,285 |
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19,125 |
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|
16,930 |
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Total Revenue |
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$ |
305,626 |
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$ |
313,855 |
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$ |
296,590 |
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Europe includes total revenue derived in the U.K. of $29.5 million in 2025, $26.6 million in 2024 and $22.5 million in 2023.
Long-lived assets are attributed to geographic areas as follows (in thousands):
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December 26, |
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December 27, |
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2025 |
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2024 |
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Long-lived assets: |
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North America |
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$ |
102,894 |
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$ |
100,676 |
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Europe (U.K., Germany and Netherlands) |
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15,848 |
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14,247 |
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Other (Australia, Canada, India and Uruguay) |
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2,022 |
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|
608 |
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Total long-lived assets |
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$ |
120,764 |
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$ |
115,531 |
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As of December 26, 2025 and December 27, 2024, the long-lived assets attributed to the U.K. in the table above included $14.7 million and $13.4 million, respectively. As of December 26, 2025 and December 27, 2024, foreign assets included $15.1 million and $14.0 million, respectively, of goodwill related to acquisitions, of which included $14.1 million and $13.3 million, respectively, were attributed to the U.K. Provisional goodwill related to the Company's acquisition of LeewayHertz, which was allocated to the Global S&BT segment, is included in the table above in Other of $5.6 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Mar 3, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.