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What changed in HACKETT GROUP, INC.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of HACKETT GROUP, INC.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+210 added−163 removedSource: 10-K (2025-02-28) vs 10-K (2024-03-01)

Top changes in HACKETT GROUP, INC.'s 2024 10-K

210 paragraphs added · 163 removed · 138 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

56 edited+20 added−5 removed55 unchanged
Biggest changeThis environment is very attractive to our sector since we believe our clients will increasingly require organizational and technology market intelligence and implementation insight on how to leverage emerging technologies to help them digitize their businesses which requires organizational changes and significant investment to achieve operational breakthrough performance to remain competitive.
Biggest changeThis environment is very attractive to our sector since we believe our clients will increasingly require organizational and technology market intelligence and implementation insight on how to leverage emerging Gen AI technologies to help them digitize their businesses which requires organizational changes and significant investment to achieve operational breakthrough performance to remain competitive. 4 STRATEGY We have repositioned our offerings to the emerging digital transformation opportunities driven by Gen AI, and we launched our AI XPLR version 2 offering and are integrating our benchmarking and best practices IP, as well as, our vast and increasing Hackett AI simulated Use Case Repository.
The Hackett DTP accelerates the speed to value realization by helping organizations achieve their performance targets through a combination of benchmark metrics, best practices and software configuration and process flow accelerators delivered in a fully automated platform. • Hackett Connect – launched in October of 2023, is our Executive Advisory and Market Intelligence membership platform which allows our clients to avail themselves of our expert advisors, syndicated research, benchmarking and best practices IP.
Hackett DTP accelerates the speed to value realization by helping organizations achieve their performance targets through a combination of benchmark metrics, best practices and software configuration and process flow accelerators delivered in a fully automated platform. • Hackett Connect – Launched in October of 2023, is our Executive Advisory and Market Intelligence membership platform which allows our clients to avail themselves of our expert advisors, syndicated research, benchmarking and best practices IP.
Our new platforms AI XPLR and Hackett Connect Connect allow us to deliver objective and actionable insight in new and emerging areas, such as Gen AI, and expertise in a new efficient and powerful way. • Continue to position and grow Hackett as an IP-centric strategic advisory organization.
Our new platforms AI XPLR and Hackett Connect allow us to deliver objective and actionable insight in new and emerging areas, such as Gen AI, and expertise in a new efficient and powerful way. • Continue to position and grow Hackett as an IP-centric strategic advisory organization.
AVAILABLE INFORMATION We make our public filings with the Securities and Exchange Commission (“SEC”), including our Form 10-K, Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all exhibits and amendments to these reports, available free of charge at our website www.thehackettgroup.com as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
AVAILABLE INFORMATION We make our public filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all exhibits and amendments to these reports, available free of charge at our website www.thehackettgroup.com as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC or at www.sec.gov .
We have completed detailed fit-gap analyses in most functional areas of major business application packages including Oracle, SAP and other leading enterprise applications to determine their ability to support best practices. Application-specific tools, implementation guides and process flows allow us to optimize the configuration of enterprise software applications. Hackett DTP enables the foundation for improved performance.
We have completed detailed fit-gap analyses in most functional areas of major business application packages 6 including Oracle, SAP and other leading enterprise applications to determine their ability to support best practices. Application-specific tools, implementation guides and process flows allow us to optimize the configuration of enterprise software applications. Hackett DTP enables the foundation for improved performance.
We believe the combination of market intelligence, optimized processes and workflows, best practice-based business applications and enhanced business analytics environments allows our clients to achieve and sustain significant business performance improvement. The specific client circumstances normally dictate how they engage us. Our goal is to be responsive to client needs, and to establish a continuous and trusted relationship.
We believe the combination of market intelligence, optimized processes and agentic workflows, best practice-based business applications and enhanced business analytics environments allows our clients to achieve and sustain significant business performance improvement. The specific client circumstances normally dictate how they engage us. Our goal is to be responsive to client needs, and to establish a continuous and trusted relationship.
It covers over 100 enterprise process areas, across 20 industry groups on an end-to-end, functional or individual process basis. • Launched the Hackett DTP – We have digitized our IP and changed the way we share and deliver our IP with our clients across our benchmarking, executive advisory, IPaaS, market intelligence, business transformation and cloud enterprise application solutions.
It covers over 100 enterprise process areas, across 20 industry groups on an end-to-end, functional or individual process basis. • Hackett DTP – We have digitized our IP and changed the way we share and deliver our IP with our clients across our benchmarking, executive advisory, IPaaS, market intelligence, business transformation and cloud enterprise application solutions.
The recent introduction of foundational models, such as Chat GPT, leverage fully integrated benefits of machine learning, deep learning neural networks further supported by natural language processing and other technologies supporting audio, video, text and motion technologies are now expected to redefine Digital World Class® performance standards.
The recent introduction of foundational models, such as Chat GPT, leverage fully integrated benefits of machine learning, deep learning neural networks further supported by natural language processing and other technologies supporting audio, video, text and motion technologies are now expected to redefine the most recent Digital World Class® performance standards.
Our Hackett DTP leverages our inventory of Hackett-Certified best practices, observed through benchmark and other business transformation engagements, which correlate best practices with superior performance levels. We utilize Capability Maturity Models to better understand our clients’ capabilities and organizational maturity so that we can determine the level of performance that they 5 can realistically pursue.
Our Hackett DTP leverages our inventory of Hackett-Certified best practices, observed through benchmark and other business transformation engagements, which correlate best practices with superior performance levels. We utilize Capability Maturity Models to better understand our clients’ capabilities and organizational maturity so that we can determine the level of performance that they can realistically pursue.
We continue to invest in the digitization and integration of our various metrics, best practices and best practice acceleration tools into our QL and DTP platforms. 7 • Recruit and develop talent. As we continue to grow and realize the potential of our business model, it is important to attract, retain, develop and motivate associates.
We continue to invest in the digitization and integration of our various metrics, best practices and best practice acceleration tools into our QL and DTP platforms. • Recruit and develop talent. As we continue to grow and realize the potential of our business model, it is important to attract, retain, develop and motivate associates.
The combination of Hackett 6 benchmark data, along with deep expertise and knowledge in evaluating, designing and implementing business transformation strategies leveraging our proprietary Best Practices Repository and other accelerators within DTP, delivers a powerful and distinct value proposition to our clients.
The combination of Hackett benchmark data, along with deep expertise and knowledge in evaluating, designing and implementing business transformation strategies leveraging our proprietary Best Practices Repository and other accelerators within DTP, delivers a powerful and distinct value proposition to our clients.
We continue to invest in associate development programs that are specifically targeted to improve our go-to-market and delivery execution. • Leverage our offshore capabilities. Leveraging an offshore resource capability to support the delivery of our offerings has been a key strategy for our organization.
We continue to invest in associate development programs that are specifically targeted to improve our go-to-market and delivery execution. 7 • Leverage our offshore capabilities. Leveraging an offshore resource capability to support the delivery of our offerings has been a key strategy for our organization.
We are currently making incremental investments in dedicated sales resources for our Benchmarking, IPaaS, Executive Advisory and Market Intelligence offerings. • The Business Development Associates are comprised of trained groups of telemarketing specialists who are conversant with their respective solution areas.
We are 10 currently making incremental investments in dedicated sales resources for our Benchmarking, IPaaS, Executive Advisory and Market Intelligence offerings. • The Business Development Associates are comprised of trained groups of telemarketing specialists who are conversant with their respective solution areas.
Our ability to apply best practices and benchmarking metrics to client operations via proven techniques is at the core of our competitive standing. Similarly, we believe that Hackett is the definitive source for best practice performance metrics and strategies.
Our ability to apply best practices and benchmarking metrics to client operations via proven techniques is at the core of our competitive standing. Similarly, we believe that Hackett is a definitive source for best practice performance metrics and strategies.
The software market is rapidly moving to cloud-based software, which led us to aggressively transition our Oracle Solutions segment from being primarily focused on the implementation of Oracle EPM on-premise software to the entire Oracle Cloud Enterprise Suite.
The software market is rapidly moving to cloud-based software, which led us to aggressively transition our Oracle Solutions segment from being primarily focused on the implementation of Oracle EPM on-premise software to the entire Oracle Cloud 9 Enterprise Suite.
We believe that this comprehensive perspective fully supported by our IP and our AI XPLR platform enables us to become valuable 4 architects, advisors and consultants of our clients’ Gen AI journeys.
We believe that this comprehensive perspective fully supported by our IP and our AI XPLR platform enables us to become valuable architects, advisors and consultants of our clients’ Gen AI journeys.
GLOBAL STRATEGY & BUSINESS TRANSFORMATION SEGMENT ("GLOBAL S&BT" SEGMENT) • Executive Advisory, IPaaS and Market Intelligence Programs, including Gen AI Our Executive Advisory, IPaaS and Market Intelligence programs provide on-demand access to world-class performance metrics, peer-learning opportunities and best practice implementation advice including the rapidly emerging Gen AI use cases and related content from our AI XPLR platform.
GLOBAL STRATEGY & BUSINESS TRANSFORMATION SEGMENT ("GLOBAL S&BT" SEGMENT) • Gen AI Consulting, Executive Advisory, IPaaS and Market Intelligence Programs Our Executive Advisory, IPaaS and Market Intelligence programs provide on-demand access to world-class performance metrics, peer-learning opportunities and best practice implementation advice including the rapidly emerging Gen AI use cases and 8 related content from our AI XPLR platform.
Hackett has identified approximately 2,050 best practices for over 550 processes in these key functional areas and uses proprietary performance measurement tools and data collection processes that enable companies to complete the performance measurement cycle and identify and quantify improvement opportunities in as little as four weeks.
Hackett has identified approximately 2,200 best practices for over 550 processes in these key functional areas and uses proprietary performance measurement tools and data collection processes that enable companies to complete the performance measurement cycle and identify and quantify improvement opportunities in as little as four weeks.
If our clients need access to our IP and advisors to help them either assess or execute transformation initiatives on their own, they can avail themselves of our Executive Advisory and Market Intelligence Programs or our new IPaaS offerings.
If our clients need access to our IP and advisors to help them either assess or execute transformation initiatives on their own, they can avail themselves of our Executive Advisory and Market Intelligence Programs or our new IP Platform offerings.
We continue to look for other potential programs through which to introduce new IP-centric offerings through our platforms and expand the power and reach of our brand. AI XPLR is an excellent example of this strategy. 8 • Benchmarking Services Our benchmarking group has measured and evaluated the efficiency and effectiveness of enterprise functions for over 9,100 organizations globally.
We continue to look for other potential programs through which to introduce new IP-centric offerings through our platforms and expand the power and reach of our brand. AI XPLR is an excellent example of this strategy. • Benchmarking Services Our benchmarking group has measured and evaluated the efficiency and effectiveness of enterprise functions for over 9,200 organizations globally.
The rapid development and move to cloud applications and infrastructure along with improving analytics, mobile functionality and enhanced user experience is dramatically influencing the way businesses compete and deliver their services. This is redefining entire industries at an accelerated pace, forcing organizations to fundamentally change and adopt new capabilities in order to remain competitive.
The rapid development and move to cloud applications and infrastructure along with improving analytics, mobile functionality and enhanced user experience continues to dramatically influence the way businesses compete and deliver their services. This is redefining entire industries at an accelerated pace, forcing organizations to fundamentally change and adopt new capabilities in order to remain competitive.
ITEM 1. B USINESS GENERAL In this Annual Report on Form 10-K, unless the context otherwise requires, “The Hackett Group,” “Hackett,” the “Company,” “we,” “us,” and “our” refer to The Hackett Group, Inc. and its subsidiaries and predecessors. We were originally incorporated on April 23, 1997.
ITEM 1. BUSINESS GENERAL In this Annual Report on Form 10-K, unless the context otherwise requires, “The Hackett Group,” “Hackett,” the “Company,” “we,” “us,” and “our” refer to The Hackett Group, Inc. and its subsidiaries and predecessors. We were originally incorporated on April 23, 1997.
This includes 97% of the Dow Jones Industrials, 89% of the Fortune 100, 70% of the DAX 40 and 55% of the FTSE 100. Ongoing studies are conducted in a wide range of areas, including selling, general and administrative, finance, human resources, information technology, procurement, enterprise performance management and shared services.
This includes 97% of the Dow Jones Industrials, 90% of the Fortune 100, 70% of the DAX 40 and 51% of the FTSE 100. Ongoing studies are conducted in a wide range of areas, including selling, general and administrative, finance, human resources, information technology, procurement, enterprise performance management and shared services.
Solution innovations have taken the group into areas such as big data, cloud technology data management and governance, and industry-specific analytic templates. This will now extend to Oracle imbedded Gen AI solutions. SAP SOLUTIONS SEGMENT Our SAP Solutions segment helps clients choose and deploy S4 HANA Cloud applications that best meet their needs and objectives.
Solution innovations have taken the group into areas such as big data, cloud technology data management and governance, and industry-specific analytic templates. This will now extend to Oracle imbedded and extended AI solutions. SAP SOLUTIONS SEGMENT Our SAP Solutions segment helps clients choose and deploy S/4 HANA Cloud applications that best meet their needs and objectives.
We combine best practices knowledge with business expertise and broad technology capabilities, which we believe enables our programs to optimize return on client investments in people, process, technology and information. This group will lead our AI XPLR efforts with a clear objective of establishing our capability of becoming key architects of our clients’ Gen AI journey.
We combine best practices knowledge with business expertise and broad technology capabilities, which we believe enables our programs to optimize return on client investments in people, processes, technology and information. This group leads our AI XPLR efforts with a clear objective of establishing our capability of becoming key architects of our clients’ Gen AI journey.
As of December 29, 2023, we had 1,350 associates, excluding subcontractors, 82% of whom were billable professionals. We do not have any associates that are subject to collective bargaining arrangements, however, in France, our associates enjoy the benefit of certain government regulations based on industry classification. We have entered into nondisclosure and non-solicitation agreements with virtually all of our personnel.
As of December 27, 2024, we had 1,478 associates, excluding subcontractors, 82% of whom were billable professionals. We do not have any associates that are subject to collective bargaining arrangements, however, in France, our associates enjoy the benefit of certain government regulations based on industry classification. We have entered into nondisclosure and non-solicitation agreements with virtually all of our personnel.
We continue to explore ways to leverage our IP through new external strategic partners and channels. • Introduce New IP-as-a-Service Offerings. We are now seeing new opportunities through new strategic alliances and channels to use our IP, research and brand to help others sell and deliver their offerings.
We continue to explore ways to leverage our IP through new external strategic partners and channels. • Introduce New licensable IP Platform Offerings. We are now seeing new opportunities through new strategic alliances and channels to use our IP, research and brand to help others sell and deliver their offerings.
These accounts mostly include large prospects, past clients, existing medium-sized clients and mid-tier market accounts and are handled primarily on an opportunistic basis, except for active clients where delivery teams are focused on driving additional revenue. • Strategic Alliance Accounts are accounts that allow us to partner with organizations of greater scale or different skill sets or with software developers enabling all parties to jointly market their products and services to prospective clients. 10 HUMAN CAPITAL MANAGEMENT We believe that our culture fosters intellectual creativity, collaboration and innovation.
These accounts mostly include large prospects, past clients, existing medium-sized clients and mid-tier market accounts and are handled primarily on an opportunistic basis, except for active clients where delivery teams are focused on driving additional revenue. • Strategic Alliance Accounts are accounts that allow us to partner with organizations of greater scale or different skill sets or with software developers enabling all parties to jointly market their products and services to prospective clients.
Hackett has conducted over 26,600 benchmark and performance studies over 30 years at over 9,100 clients, generating proprietary data sets spanning multiple performance metrics and correlating best practices with superior performance.
Hackett has conducted over 27,500 benchmark and performance studies over 30 years at over 9,000 clients, generating proprietary data sets spanning multiple performance metrics and correlating best practices with superior performance.
The launch of QL, DTP, Hackett Connect and now AI XPLR should expand and attract new clients and alliance partners that can leverage our unique expertise, benchmarking and best practices, software configuration and process flow IP to help them differentiate and sell their software or services solutions.
The launch of AI XPLR and the acquisition of LeewayHertz and ZBrain expand and attract new clients and alliance partners that can leverage our unique expertise, benchmarking and best practices, software configuration and process flow IP to help them differentiate and sell their software or services solutions.
INTELLECTUAL PROPERTY World Class Defined and Enabled, Quantum Leap, Digital Excelleration, Intellectual Property-As-A-Service, Digital World Class, Hackett Certified and Book of Numbers are registered trademarks of Hackett's and we own registrations for certain of our other trademarks in the United States and abroad that we use in our business and believe are important to protect.
We do so by encouraging and supporting our associate’s communities and personal volunteer and service programs and social gatherings. 11 INTELLECTUAL PROPERTY World Class Defined and Enabled, LeewayHertz, Quantum Leap, Digital Excelleration, Intellectual Property-As-A-Service, Digital World Class, Hackett Certified and Book of Numbers are registered trademarks of Hackett's and we own registrations for certain of our other trademarks in the United States and abroad that we use in our business and believe are important to protect.
We also engage consultants as independent contractors pursuant to written agreements that contain non-disclosure and non-solicitation provisions. COMMUNITY INVOLVEMENT One important way we put our values into action is through our commitment to the communities where we work. We do so by encouraging and supporting our associate’s communities and personal volunteer and service programs and social gatherings.
We also engage consultants as independent contractors pursuant to written agreements that contain non-disclosure and non-solicitation provisions. COMMUNITY INVOLVEMENT One important way we put our values into action is through our commitment to the communities where we work.
We have achieved a high level of satisfaction across our client base. We receive surveys from a significant number of our engagements which are utilized in a rigorous process to improve our delivery execution, sales processes, methodologies and training.
In addition, during 2024, 2023 and 2022, our largest client generated 11%, 6% and 7% of total revenue, respectively. We have achieved a high level of satisfaction across our client base. We receive surveys from a significant number of our engagements which are utilized in a rigorous process to improve our delivery execution, sales processes, methodologies and training.
Our expertise is grounded in best practices insights from benchmarking the world’s leading businesses – including 97% of the Dow Jones Industrials, 89% of the Fortune 100, 70% of the DAX 40 and 55% of the FTSE 100, which are delivered through our Hackett Connect, Quantum Leap ® and DTP platforms.
Our transformation expertise is grounded in best practices insights from benchmarking the world’s leading businesses – including 97% of the Dow Jones Industrials, 90% of the Fortune 100, 70% of the DAX 40 and 51% of the FTSE 100, which inform and are delivered by our platforms.
Any material that we file with the SEC or at www.sec.gov . Also available on our website, free of charge, are copies of our Code of Conduct and Ethics, Corporate Governance Guidelines, and the charters for the Audit Committee, Compensation Committee and Nominating and Governance Committee of our Board of Directors.
Also available on our website, free of charge, are copies of our Code of Conduct and Ethics, Corporate Governance Guidelines, and the charters for the Audit Committee, Compensation Committee and Nominating and Governance Committee of our Board of Directors.
Our competitors include leading research advisories, international accounting firms; international, national and regional strategic consulting and systems implementation firms; and the IT services divisions of application software firms. Mergers and acquisitions throughout our industry have resulted in higher levels of competition.
The marketplace will remain competitive as companies continue to look for ways to improve their organizational effectiveness. Our competitors include leading research advisories, international accounting firms; international, national and regional strategic consulting and systems implementation firms; and the IT services divisions of application software firms. Mergers and acquisitions throughout our industry have resulted in higher levels of competition.
It also allows us to engage and support clients more efficiently, remotely, and where appropriate, continuously. Hackett uses its proprietary benchmarking enterprise performance metrics and best practices repository intellectual capital to help clients accelerate the value realization from technology investments. Our benchmark offerings allow our clients to empirically quantify their performance improvement opportunity at an actionable level.
Hackett uses its proprietary benchmarking enterprise performance metrics and best practices repository intellectual capital to help clients accelerate the value realization from technology investments. Our benchmark offerings allow our clients to empirically quantify their performance improvement opportunity at an actionable level. It also provides us visibility into how leading global companies deploy technology or organizational strategies to optimize their performance.
Hackett (NASDAQ: HCKT) is a global IP-based executive advisory, strategic consulting and digital transformation firm. The Hackett Group provides dedicated expertise in Generative Artificial Intelligence ("Gen AI") strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including its highly recognized Oracle, SAP, OneStream and Coupa implementation offerings.
Hackett (NASDAQ: HCKT) is a global IP platform-based Generative Artificial Intelligence ("Gen AI") strategic consulting and executive advisory digital transformation firm. The Hackett Group provides dedicated expertise in Gen AI enabled enterprise transformation services across front, mid and back office areas, including its highly recognized Oracle, SAP, OneStream and Coupa implementation offerings.
We expect AI XPLR and the rapidly emerging Gen AI services, to be one of the key drivers for our growth along with the growing leverage of our “wedge” or IP centric recurring revenue Executive Advisory and IPaaS offerings. Our QL, DTP, and Hackett Connect platforms resulted in a new way to share and leverage our IP across our offerings.
We expect AI XPLR along with the LeewayHertz acquisition and the rapidly emerging Gen AI services, to be the key drivers for our growth along with the historical leverage of our “wedge” or IP centric recurring revenue Executive Advisory and IPaaS offerings.
We plan to pursue acquisitions that are accretive or have strong growth prospects, and most importantly, have strong synergies with our best practice intellectual capital leverage and focus. OUR OFFERINGS We offer a comprehensive range of services, including IPaaS, executive advisory and market intelligence programs, benchmarking, business transformation and technology consulting services.
We plan to pursue acquisitions that are accretive or have strong growth prospects, and most importantly, have strong synergies with our best practice intellectual capital leverage and focus. COMPETITION The strategic consulting, executive advisory, business transformation and technology consulting marketplace continues to be extremely competitive.
Using AI XPLR, our artificial intelligence ("AI") assessment platform, our experienced professionals guide organizations to harness the power of Gen AI to digitally transform their operations and seek to achieve quantifiable, breakthrough results, allowing us to be key architects of our clients' Gen AI journey. The Hackett Group has completed over 26,600 benchmarking and performance studies with major organizations.
Using AI XPLR, our experienced professionals guide organizations to harness the power of Gen AI solutions designed to digitally transform their operations to achieve quantifiable, breakthrough results, allowing us to be key architects of our clients' Gen AI journey.
We use our best practice process flows, benchmark database and use case repository to guide our detailed quantifiable assessment of the potential business benefits of Gen AI technologies, as well as an organization's readiness requirements. Further we use our vendor market intelligence research to assist with the key selection considerations of Gen AI solution providers.
We use our best practice process flows and benchmark database to inform our Gen AI assisted platform to simulate industry specific AI solutions to guide our detailed quantifiable assessment of the potential business benefits of Gen AI technologies, as well as an organization's readiness requirements.
This required us to digitize our intellectual capital and the way we share it with our clients across our benchmarking, executive research advisory, business transformation and Cloud Enterprise application implementation solutions. Our ability to fully digitize our IP and align proven technology and organizational solutions to help clients drive transformational change allows us to highly differentiate our offerings.
Our QL, DTP, and Hackett Connect platforms resulted in a new way to share and leverage our IP across our offerings. This required us to digitize our intellectual capital and the way we share it with our clients across our benchmarking, executive research advisory, business transformation and Cloud Enterprise application implementation solutions.
We believe in building relationships with both our associates and clients. We believe the best solutions come from teams of diverse individuals addressing problems collectively and from multiple dimensions, including the business, technological and human dimensions. We believe that the most effective working environment is one where everyone is encouraged to contribute and is rewarded for that contribution.
HUMAN CAPITAL MANAGEMENT We believe that our culture fosters intellectual creativity, collaboration and innovation. We believe in building relationships with both our associates and clients. We believe the best solutions come from teams of individuals from diverse backgrounds addressing problems collectively and from multiple dimensions, including the business, technological and human dimensions.
With strategic and functional knowledge in finance, human resources, information technology, procurement, supply chain management, corporate services, customer service, and sales and marketing, our expertise extends across the enterprise. We have completed successful engagements in a variety of industries, including automotive, consumer goods, financial services, technology, life sciences, manufacturing, media and entertainment, retail, telecommunications, transportation and utilities.
We have completed successful engagements in a variety of industries, including automotive, consumer goods, financial services, technology, life sciences, manufacturing, media and entertainment, retail, telecommunications, transportation and utilities.
Our core values are the strongest expression of our working style and represent what we stand for.
We believe that the most effective working environment is one where everyone is encouraged to contribute and is rewarded for that contribution. Our core values are the strongest expression of our working style and represent what we stand for.
It also provides us visibility into how leading global companies deploy technology or organizational strategies to optimize their performance. This insight results in a proprietary Best Practices Repository, as well as, best practice software configurations, process flows and organizational strategies.
This insight results in a proprietary Best Practices Repository, as well as, best practice software configurations, process flows and organizational strategies.
These relationships are also currently responsible for over 40% of Hackett’s business transformation and technology consulting revenue. • Expanded Cloud Capabilities - We expanded our Oracle Cloud applications addressable market from Enterprise Performance Management (“EPM”) to include Enterprise Resource Planning (“ERP”) and the entire Oracle Cloud application suite.
It also automates access to our inquiry support, webcasts, briefings and events. • Expanded Cloud Capabilities - We expanded our Oracle Cloud applications addressable market from Enterprise Performance Management (“EPM”) to include Enterprise Resource Planning (“ERP”) and the entire Oracle Cloud 5 application suite.
We see this as an opportunity for our organization to provide an objective business perspective to what has primarily been a technology innovation story. The following are the keys to our strategy: • Launched AI XPLR - Our recently launched AI assessment platform allows us to measure and assess the impact of Gen AI technologies.
The following are the keys to our strategy: • Launched AI XPLR - Our AI assessment platform allows us to measure and assess the impact of Gen AI technologies.
We have also expanded our alliance partners to include Coupa and Ariba in Procurement, as well as OneStream in EPM and Corporate Performance Management (“CPM”).
We have also expanded our alliance partners to include Coupa and Ariba in Procurement, as well as OneStream in EPM and Corporate Performance Management (“CPM”). In regard to SAP, we were an early provider of S/4 HANA which allowed us to quickly transition our implementation skills and benefit from the SAP migration to the Cloud.
These services include post-implementation support for select business application and infrastructure platforms. Our SAP Solutions group also includes a division responsible for the sale of the SAP suite of applications. 9 CLIENTS We focus on developing long-term client relationships with Global 2000 firms and other sophisticated buyers of business and IT consulting services.
These services include post-implementation support for select business application and infrastructure platforms. Our SAP Solutions group also includes a division responsible for the sale of the SAP suite of applications. This will now extend to SAP imbedded and extended AI solutions.
This detailed business and technology perspective is a powerful way to help guide our clients through the significant opportunities and critical considerations that they will have to evaluate and understand.
Further, we use our vendor market intelligence research to assist with the key selection considerations of Gen AI solution providers. This detailed business and technology perspective helps us guide our clients through the significant opportunities and critical considerations that they will have to evaluate and understand.
We have developed a series of offerings that allow us to efficiently help our clients without regard to where they are in their respective performance improvement lifecycle. COMPETITION The strategic executive advisory, business transformation and technology consulting marketplace continues to be extremely competitive. The marketplace will remain competitive as companies continue to look for ways to improve their organizational effectiveness.
We have developed a series of offerings that allow us to efficiently help our clients without regard to where they are in their respective performance improvement lifecycle. Correspondingly, we remain focused on executing the following strategies: • Expanding our IP and brand market permission to our offerings.
We are also utilizing the AI XPLR platform as the vehicle to integrate the Gen AI impact and all Hackett IP across all of our offerings. • Launched Quantum Leap® (“QL”) – Our next generation benchmarking and continuous improvement software as a service solution.
We are also utilizing the AI XPLR platform as the vehicle to integrate the Gen AI impact and all Hackett IP across our offerings. • Acquired LeewayHertz Technologies - A highly recognized Gen AI consulting and implementation firm focused on the design and deployment of AI agents and agentic enterprise workflows.
This is a critical component of our desire to emphasize the growth of high margin annualized recurring revenues. • Expanded Executive Research Advisory and Market Intelligence Programs - We expanded our IPaas programs and added dedicated sales expertise in an effort to grow high margin annualized recurring revenues.
Ask Hackett AI is now intended to be a seed for the development and introduction of our own Small Language Model or SLM, which we call our Hackett Solutioning Language Model. • Gen AI Executive Advisory and Market Intelligence Programs - We have expanded our Market Intelligence programs by integrating proprietary Gen AI solutioning content and added dedicated sales expertise in an effort to grow high margin annualized recurring revenues.
During 2023, our ten most significant clients accounted for 23% of total revenue and during 2022 and 2021, our ten most significant clients accounted for 24% and 22% of total revenue, respectively. In addition, during 2023, 2022 and 2021, our largest client generated 6%, 7% and 4% of total revenue, respectively.
CLIENTS We focus on developing long-term client relationships with Global 2000 firms and other sophisticated buyers of business and IT consulting services. During 2024, 2023 and 2022, our ten most significant clients accounted for 31%, 23% and 24% of total revenue, respectively.
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The firm recently launched our AI XPLR offering which helps define an organizations’ Gen AI enablement opportunities.
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In early 2024, we launched our AI assessment platform, AI XPLR which helps clients identify, evaluate and design Gen AI enablement opportunities.
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We have repositioned all of our offerings to the emerging digital transformation opportunities and we recently launched our AI XPLR offering and are rapidly integrating our benchmarking and best practices IP, as well as, our vast and rapidly increasing AI Use Case Repository. These capabilities will allow us to quickly become key architects of our clients' Gen AI journey.
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We believe Gen AI will fundamentally change the way companies operate as well as the way consulting services are sold and delivered.
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It also automates access to our inquiry support, webcasts, briefings and events. • Expanded our IPaaS – leveraging our QL and DTP platforms we are attracting new alliance partners that can leverage our unique enterprise performance benchmarking and best practices solutioning IP to help them differentiate and sell their software or services solutions.
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We believe the Gen AI platform capabilities we have developed in AI XPLR which were expanded with ZBrain, which we acquired as part of the LeewayHertz acquisition, is highly differentiating and we expect will enable us to effectively compete in this emerging and important space. The Hackett Group has completed over 27,500 benchmarking and performance studies with major organizations.
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In regard to SAP, we were an early provider of S4 HANA which allowed us to quickly transition our implementation skills and benefit from the SAP migration to the Cloud. • Expanded Smart Automation Capabilities – We expanded our ability to help clients assess and implement the rapidly emerging Workflow Automation, Process Mining and related smart automation technologies. • Launched the Hackett Institute and acquired the joint venture interest of our Certified Global Business Services (“CGBS”) Program – we moved our training content to a state-of-the-art learning management platform.
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We consider this, along with our recent innovations, our core Hackett Intellectual Property ("IP") which allows us to identify, design and evaluate transformation opportunities to be proprietary and key components of our Hackett solutioning IP.
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STRATEGY Our efforts in the last few years to fully digitize our IP and go-to-market through our QL and DTP platforms, now expanded by our AI XPLR and Hackett Connect platforms, are critical to our success. Correspondingly, we remain focused on executing the following strategies: • Expanding our IP and brand market permission to our offerings.
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Although demand for digital transformation remains strong in traditional areas, we expect it to be redefined by the rapid emergence of Gen AI technologies. As we head into 2025, we expect IT budgets to increase with significant attention and allocations to Gen AI solutions and the related opportunities and threats it brings.
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While in 2024, Gen AI budgets were primarily focused in developing awareness in AI, in 2025 we expect to see increasing amounts in IT budgets specifically allocated to Gen AI initiatives in high feasibility and impact areas. We also expect to see increasing investment in data quality and value initiatives which are critical to any Gen AI strategy.
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We expect the potential of AI will define an entirely new level of Gen AI enabled world class performance standards, driving software and service providers to extend the value of their existing offerings. We believe this will result in unprecedented innovations which organizations will have to consider.
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This shift is consistent with the aggressive pivot we made in early 2024 to Gen AI enabled transformations which we believe creates a significant opportunity for our organization.
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These capabilities have allowed us to become key architects, advisors and, most recently, builders of our clients' Gen AI journey. We see this as an opportunity for our organization to provide an objective business perspective to what started as primarily a technology innovation story.
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Given the strategic access and platform expanding capabilities of AI XPLR, it was natural for us to extend our AI implementation capabilities to be able to fully develop and implement the Gen AI use cases we were identifying.
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The acquisition also included a sophisticated a Gen AI orchestration solution, ZBrain, which we agreed to contribute into a to be created joint venture, with the LeewayHertz founder (the "JV").
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The JV, which will be named ZBrain, Inc., will bring together the AI XPLR and ZBrain software platforms and will focus on licensing the platforms and creating the first of its kind Gen AI ideation through implementation software as a service offering.
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We believe this JV creates an entirely new value-creation opportunity for our shareholders what could result from the growth of annual recurring revenues.
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It may also provide the JV with the opportunity to raise capital and achieve stand-alone valuations due to its unique Gen AI solutioning software focus. • New Licensable Platform Innovations – We now see potential Gen AI platform opportunities from innovations envisioned to facilitate and accelerate the delivery of our Oracle, OneStream, SAP and Coupa technology implementation services.
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Our AIxelerator and Ask Hackett AI solutions may have greater value as licensable software as a service platform to external users.
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IP based relationships have historically provided over 40% of Hackett’s business transformation and technology consulting revenue entry points. • Transitioning IPaaS to AI XPLR Licensing – We are now offering the opportunity to licence AI XPLR to attract new alliance partners that can leverage our unique AI XPLR capabilities to position their downstream technology offerings. • Quantum Leap® (“QL”) – Our next generation benchmarking and continuous improvement software as a service solution.
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We are now evaluating and will soon be able to provide the extended agentic AI capabilities these providers are expected to introduce throughout 2025. • The Hackett Institute and Certified Global Business Services (“CGBS”) Program – We moved our training content to a state-of-the-art learning management platform.
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We have started to evaluate how to incorporate our Gen AI solutioning content from our proposed Hackett SLM to new training programs.
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Our ability to fully digitize our IP and align proven technology and organizational solutions to help clients drive transformational change allows us to highly differentiate our offerings. It also allows us to engage and support clients more efficiently, remotely, and where appropriate, continuously.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur results of operations have been adversely affected and could in the future be materially impacted by macroeconomic conditions on our business. The level of revenue we achieve is based on our ability to deliver market leading services and solutions and to deploy skilled teams of professionals quickly.
Biggest changeThe level of revenue we achieve is based on our ability to deliver market leading services and solutions and to deploy skilled teams of professionals quickly. Our results of operations are affected by economic conditions, including macroeconomic conditions and levels of business confidence.
Because the techniques used to obtain unauthorized access to or sabotage security systems change frequently and are often not recognized until after an attack, we and our third-party service providers may be unable to anticipate the techniques or implement adequate preventative measures, thereby exposing us to material adverse effects on our business, financial condition, results of operations and growth prospects.
Because the techniques used to obtain unauthorized access to or sabotage security systems change frequently and are often not recognized until after an attack, we and our third-party service providers may be unable to anticipate the techniques or implement adequate preventative measures, thereby exposing us to material adverse effects on our business, financial condition, results of operations and growth prospects.
If we fail to make these estimates accurately, we could be forced to devote additional resources to these engagements for which we will not receive additional compensation. To the extent that an expenditure of additional 13 resources is required on an engagement, this could reduce the profitability of, or result in a loss on, the engagement.
If we fail to make these estimates accurately, we could be forced to devote additional resources to these engagements for which we will not receive additional compensation. To the extent that an expenditure of additional resources is required on an engagement, this could reduce the profitability of, or result in a loss on, the engagement.
Many factors can cause fluctuations in our financial results, including: • number, size, timing and scope of client engagements; • customer concentration; • long and unpredictable sales cycles; • contract terms of client engagements; • degrees of completion of client engagements; • client engagement delays or cancellations; • competition for and utilization of employees; • how well we estimate the resources and effort we need to complete client engagements; • the integration of acquired businesses; • pricing changes in the industry; 12 • foreign currency changes; • foreign laws and regulatory requirements; • natural disasters, pandemics and other catastrophic events; • economic conditions specific to business and information technology consulting; and • global economic conditions.
Many factors can cause fluctuations in our financial results, including: • number, size, timing and scope of client engagements; • customer concentration; • long and unpredictable sales cycles; • contract terms of client engagements; • degrees of completion of client engagements; • client engagement delays or cancellations; • competition for and utilization of employees; • how well we estimate the resources and effort we need to complete client engagements; • the integration of acquired businesses; • pricing changes in the industry; • foreign currency changes; 13 • foreign laws and regulatory requirements; • natural disasters, pandemics and other catastrophic events; • economic conditions specific to business and information technology consulting; and • global economic conditions.
However, those balances are generally available in the local jurisdiction without legal restrictions to fund ordinary business operations. Any fluctuations in foreign currency exchange rates could materially impact the availability and amount of these funds available for transfer. 16 Legal, Regulatory and Compliance Risks Our corporate governance provisions may deter a financially attractive takeover attempt.
However, those balances are generally available in the local jurisdiction without legal restrictions to fund ordinary business operations. Any fluctuations in foreign currency exchange rates could materially impact the availability and amount of these funds available for transfer. 17 Legal, Regulatory and Compliance Risks Our corporate governance provisions may deter a financially attractive takeover attempt.
Any actual or perceived cybersecurity incident or significant disruption may also interfere with our ability to 15 comply with financial reporting requirements and harm our reputation and market position, especially given that we handle sensitive customer information. Any of the foregoing matters could harm our operating results and financial condition.
Any actual or perceived cybersecurity incident or significant disruption may also interfere with our ability to 16 comply with financial reporting requirements and harm our reputation and market position, especially given that we handle sensitive customer information. Any of the foregoing matters could harm our operating results and financial condition.
We may be unsuccessful in negotiating with clients regarding changes to the cost, scope or duration of specific engagements.
We may be 14 unsuccessful in negotiating with clients regarding changes to the cost, scope or duration of specific engagements.
Also, acquisitions may involve a number of risks, including: • diversion of management’s attention; • failure to retain key personnel; • failure to retain existing clients; • unanticipated events or circumstances; 14 • unknown claims or liabilities; • amortization of certain acquired intangible assets; and • operating in new or unfamiliar geographies.
Also, acquisitions may involve a number of risks, including: • diversion of management’s attention; • failure to retain key personnel; • failure to retain existing clients; • unanticipated events or circumstances; 15 • unknown claims or liabilities; • amortization of certain acquired intangible assets; and • operating in new or unfamiliar geographies.
As a result, our competitors may be in a stronger position to respond more quickly to new or emerging technologies, such as artificial intelligence, and changes in client requirements and to devote greater resources than we can to the development, promotion and sale of their services.
As a result, our competitors may be in a stronger position to respond more quickly to new or emerging technologies, such as AI, and changes in client requirements and to devote greater resources than we can to the development, promotion and sale of their services.
We have derived, and believe that we will continue to derive, a significant portion of our revenue from a limited number of clients for which we perform large projects. In 2023, our ten largest clients accounted for 23% of our aggregate revenue.
We have derived, and believe that we will continue to derive, a significant portion of our revenue from a limited number of clients for which we perform large projects. In 2024, our ten largest clients accounted for 31% of our aggregate revenue.
A substantial or prolonged economic downturn, weak or uncertain economic conditions or similar factors could adversely affect our clients’ financial condition which may reduce our clients’ demand for our services, force price reductions, cause project cancellations, or delay consulting services for which they have engaged us.
Global and regional economic conditions may affect our clients’ businesses and the markets they serve. A substantial or prolonged economic downturn, weak or uncertain economic conditions or similar factors could adversely affect our clients’financial condition which may reduce our clients’ demand for our services, force price reductions, cause project cancellations, or delay consulting services for which they have engaged us.
Our results of operations are affected by economic conditions, including macroeconomic conditions and levels of business confidence. Any prolonged economic downturn as a result of weak or uncertain economic conditions or similar factors could adversely affect our clients' financial condition which may further reduce the clients' demand for our services.
Any prolonged economic downturn as a result of weak or uncertain economic conditions or similar factors could adversely affect our clients' financial condition which may further reduce the clients' demand for our services.
The following important factors could cause actual results to differ materially from those contained in forward-looking statements made in this Annual Report on Form 10-K or our other publicly filed documents. 11 Business, Market and Strategy Risks Our results of operations could be negatively affected by global and regional economic conditions.
ITEM 1A. RI SK FACTORS Our business is subject to risks. The following important factors could cause actual results to differ materially from those contained in forward-looking statements made in this Annual Report on Form 10-K or our other publicly filed documents. Business, Market and Strategy Risks We may not be able to successfully execute on our strategy transition.
For example, the geopolitical disruption resulting from the conflicts between Russian and Ukraine and in the Middle East has created uncertainty in the global economy and could result in a reduction in spending on our services In addition, if we are unable to successfully anticipate the changing economic conditions, we may be unable to effectively plan for and respond to those changes, and our business could be negatively affected.
For example, the geopolitical disruption resulting from the conflicts between Russian and Ukraine and in the Middle East has created uncertainty in the global economy and could result in a reduction in spending on our services.
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ITEM 1A. RI SK FACTORS Our business is subject to risks.
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In executing our strategy to transition to a leading global IP platform-based Gen AI strategic consulting firm, we expect to create a new value-creation opportunity for us with potential for an increase in our annual recurring revenues and annual recurring licensing revenues.
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Global and regional economic conditions may affect our clients’ businesses and the markets they serve.
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We cannot assure you that our Gen AI strategy will be beneficial to the extent, or within the time-frames expected. Market acceptance of Gen AI offerings is affected by a variety of factors, including technological advances, reliability, performance and information security.
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If we are unable to correctly respond to these issues, we may experience business disruptions, damage to our reputation, negative publicity, diminished client trust and relationships and other adverse effects on our business. Even if the anticipated benefits are substantially realized, there may be consequences or business impacts that were not expected.
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Our transition to focus on Gen AI may increase our risk of liability and cause us to incur significant technical, legal or other costs. We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results. AI, presents new risks and challenges that may affect our business.
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We have made, and expect to continue to make investments to integrate AI into our products and solutions. Given the nature of AI technology, we face significant competition from other companies and an evolving regulatory landscape.
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Our AI efforts may not be successful and our competitors may incorporate AI into their products more successfully than us, which could impair our ability to compete effectively and adversely affect our financial results.
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The rapid evolution of AI combined with the uncertain and often inconsistent regulatory landscape may require significant additional resources and costs and could in some cases limit our ability to implement AI capabilities in our solutions or to use AI to support business operations.
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Despite our implementation of programs designed to support responsible AI use and development, we may not successfully address all issues that may arise.
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For example, privacy concerns, user consent, supply chain security, transparency and the accuracy, completeness and suitability of data sets are all potential issues that could adversely affect our business, reputation, or financial results. 12 Our results of operations could be negatively affected by global and regional economic conditions.
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In addition, if we are unable to successfully anticipate the changing economic conditions, we may be unable to effectively plan for and respond to those changes, and our business could be negatively affected. Our results of operations have been adversely affected and could in the future be materially impacted by macroeconomic conditions on our business.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWe also leverage third-party service providers and solutions across our operations to review, test, and assess our security systems and controls, as well as assist in the mitigation of any potential cyber risks. We recently obtained the ISO 27001 certification.
Biggest changeWe also leverage third-party service providers and solutions across our operations to review, test, and assess our security systems and controls, as well as assist in the mitigation of any potential cyber risks. We recently obtained our second ISO 27001 certification.
The Company’s Board is responsible for oversight of the Company’s information technology systems, including cybersecurity, and has delegated such oversight to the Audit Committee. The Audit Committee regularly reviews the status of the initiatives such as the seeking of certifications associated with our information technology systems and receives regular updates on matters relating to 17 information technology and cybersecurity.
The Company’s Board is responsible for oversight of the Company’s information technology systems, including cybersecurity, and has delegated such oversight to the Audit Committee. The Audit Committee regularly reviews the status of the initiatives such as the seeking of certifications associated with our information technology systems and receives regular updates on matters relating to 18 information technology and cybersecurity.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. P ROPERTIES Our principal executive office is currently located at 1001 Brickell Bay Drive, Floor 30, Miami, Florida 33131. As of December 29, 2023, we had operating leases that expire on various dates through July 2028. We do not own real estate and do not intend to invest in real estate or real estate-related assets.
Biggest changeITEM 2. P ROPERTIES Our principal executive office is currently located at 1001 Brickell Bay Drive, Floor 30, Miami, Florida 33131. As of December 27, 2024, we had operating leases that expire on various dates through July 2029. We do not own real estate and do not intend to invest in real estate or real estate-related assets.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeMINE S AFETY DISCLOSURES Not applicable. 18 PA RT II
Biggest changeMINE S AFETY DISCLOSURES Not applicable. 19 PA RT II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following table summarizes our share repurchases during the year ended December 29, 2023 under this authorization: Total Number Maximum Dollar of Shares Purchased Value of Shares That Total Number Average as Part of Publicly May Yet Be Purchased of Shares Price Paid Announced Under the Period Purchased per Share Program Program Balance as of December 30, 2022 $ 14,672,248 December 31, 2022 to March 31, 2023 37,467 $ 18.96 37,467 $ 13,961,293 April 1, 2023 to June 30, 2023 — $ — — $ 13,937,978 * July 1, 2023 to September 29, 2023 — $ — — $ 13,937,978 September 30, 2023 to December 29, 2023 — $ — — $ 13,937,978 37,467 $ 18.96 37,467 * The decrease in the repurchase plan authorization related to additional transaction related fees for the tender offer which occurred in December 2022 .
Biggest changeThe following table summarizes our share repurchases during the year ended December 27, 2024 under this authorization: Total Number Maximum Dollar of Shares Purchased Value of Shares That Total Number Average as Part of Publicly May Yet Be Purchased of Shares Price Paid Announced Under the Period Purchased per Share Program Program Balance as of December 29, 2023 $ 13,937,978 December 30, 2023 to March 29, 2024 43,351 $ 24.34 43,351 $ 12,882,815 March 30, 2024 to June 28, 2024 — $ — — $ 12,882,815 June 29, 2024 to September 27, 2024 64,887 $ 26.77 64,887 $ 11,145,964 September 29, 2024 to December 27, 2024 117,308 $ 30.95 117,308 $ 27,515,833 225,546 $ 28.47 225,546 (1) On July 30, 2002, the Board of Directors approved and announced the repurchase program.
Performance Graph The following graph compares our cumulative total shareholder return since December 28, 2018, with the Russell 2000 and a peer group index composed of other companies with similar business models identified below.
Performance Graph The following graph compares our cumulative total shareholder return since December 27, 2019, with the Russell 2000 and a peer group index composed of other companies with similar business models identified below.
These withheld shares are never issued and in lieu of issuing the shares, taxes were paid on our employee’s behalf. In 2023, 174 thousand shares were withheld and not issued for a cost of $3.8 million, bringing the total cumulative cash used to repurchase stock in 2023 to $4.5 million.
These withheld shares are never issued and in lieu of issuing the shares, taxes were paid on our employee’s behalf. In 2024, 174 thousand shares were withheld and not issued for a cost of $4.1 million, bringing the total cumulative cash used to repurchase stock in 2024 to $10.5 million.
During fiscal 2023, we paid the quarterly dividend to shareholders of record on March 24, 2023, June 23, 2023, September 22, 2023, and December 22, 2023, totaling $12.0 million, which included the fourth quarter of 2023 dividend paid in January 2024 of $3.0 million. Our credit agreement contains restrictions on our ability to declare dividends and repurchase shares.
During fiscal 2024, we paid the quarterly dividend to shareholders of record on March 22, 2024, June 21, 2024, September 20, 2024, and December 20, 2024, totaling $12.1 million, which included the fourth quarter of 2024 dividend paid in January 2025 of $3.0 million. Our credit agreement contains restrictions on our ability to declare dividends and repurchase shares.
Purchases of Equity Securities We have an ongoing authorization from our Board of Directors to repurchase shares of our common stock. The repurchase plan was first announced on July 30, 2002. Repurchases under this program are discretionary and are made in the open market or through privately negotiated transactions, subject to market conditions and trading restrictions.
Purchases of Equity Securities We have an ongoing authorization from our Board of Directors to repurchase shares of our common stock. Repurchases under this program are discretionary and are made in the open market or through privately negotiated transactions, subject to market conditions and trading restrictions.
As of February 26, 2024, there were 234 holders of record of our common stock and 27,597,191 shares of common stock outstanding. Securities Authorized for Issuance under Equity Compensation Plans The information required by this section is set forth under Item 12 of this Annual Report on Form 10-K and is herein incorporated by reference.
As of February 24, 2025, there were 230 holders of record of our common stock and 27,791,221 shares of common stock outstanding. Securities Authorized for Issuance under Equity Compensation Plans The information required by this section is set forth under Item 12 of this Annual Report on Form 10-K and is herein incorporated by reference.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, R ELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded under the Nasdaq Stock Market symbol, "HCKT". The closing sale price for the common stock on February 26, 2024, was $25.13.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, R ELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded under the Nasdaq Stock Market symbol, "HCKT". The closing sale price for the common stock on February 24, 2025, was $30.21.
Subsequent to fiscal year end, the Board of Directors declared the first quarterly dividend of 2024 for shareholders of record as of March 22, 2024, to be paid on April 5, 2024.
Subsequent to fiscal year end, the Board of Directors declared the first quarter dividend of 2025 for shareholders of record as of March 21, 2025, to be paid on April 4, 2025.
During the year ended December 29, 2023, the Company repurchased 37 thousand shares of the Company’s common stock from members of its Board of Directors for a total of $0.7 million, or $18.96 per share.
During the year ended December 29, 2023, the Company repurchased 37 thousand shares of the Company’s common stock from members of its Board of Directors for a total of $0.7 million, or $18.96 per share. Shares purchased under the repurchase plan do not include shares withheld to satisfy withholding tax obligations.
Subsequent to fiscal year end, we repurchased 43 thousand shares of the Company’s common stock from members of our Board of Directors for a total of $1.1 million, or $24.34 per share. Including these subsequent purchases, we have approximately $12.9 million available for future purchases under the plan.
Subsequent to fiscal year end, we repurchased 50 thousand shares of the Company’s common stock from our Chief Financial Officer and members of our Board of Directors for a total of $1.6 million, or $30.78 per share. Including these subsequent purchases, we have approximately $26.0 million available for future purchases under the plan.
In 2022, 164 thousand shares were withheld and not issued for a cost of $3.2 million, bringing the total cumulative cash used to repurchase stock in 2022 to $119.8 million, which included the tender offer transaction. ITEM 6. [RE SERVED] 20
In 2023, 174 thousand shares were withheld and not issued for a cost of $3.8 million, bringing the total cumulative cash used to repurchase stock in 2023 to $4.5 million. ITEM 6. [RE SERVED] 21
The graph assumes that the value of the investment in our common stock and each index (including reinvestment of dividends) was $100 on December 28, 2018. 12/28/2018 12/27/2019 1/1/2021 12/31/2021 12/30/2022 12/29/2023 The Hackett Group, Inc. $ 100.00 $ 102.11 $ 94.46 $ 137.74 $ 139.76 $ 159.53 Russell 2000 $ 100.00 $ 125.52 $ 150.58 $ 172.90 $ 137.56 $ 160.85 2022 Peer Group $ 100.00 $ 123.27 $ 109.32 $ 111.34 $ 128.98 $ 171.70 The 2023 Peer Group includes Alithya Group Inc., Huron Consulting Group, Inc. and Information Services Group, Inc. 19 Company Dividend Policy In December 2012, we announced an annual dividend of $0.10 per share.
The graph assumes that the value of the investment in our common stock and each index (including reinvestment of dividends) was $100 on December 27, 2019. 12/27/2019 1/1/2021 12/31/2021 12/30/2022 12/29/2023 12/27/2024 The Hackett Group, Inc. $ 100.00 $ 92.50 $ 134.89 $ 136.87 $ 156.23 $ 215.51 Russell 2000 $ 100.00 $ 119.96 $ 137.74 $ 109.59 $ 128.14 $ 142.93 2024 Peer Group $ 100.00 $ 88.68 $ 90.31 $ 104.63 $ 139.28 $ 157.66 The 2024 Peer Group includes Alithya Group Inc., Huron Consulting Group, Inc. and Information Services Group, Inc. 20 Company Dividend Policy In December 2012, we announced an annual dividend of $0.10 per share, which has been increased to $0.44 per share for the year ended December 27, 2024.
As of December 29, 2023, the Company’s Board of Directors had approved a cumulative authorization of $287.2 million with cumulative purchases under the plan of $273.3 million, leaving $13.9 million available for future purchases.
There is no expiration date on the current authorization. As of December 27, 2024, the Company’s Board of Directors had approved a cumulative authorization of $307.2 million with cumulative purchases under the plan of $279.7 million, leaving $27.5 million available for future purchases.
In addition, the Company repurchased 31 thousand shares of the Company’s common stock from members of its Board of Directors for a total of $0.6 million, or $20.50 per share. Shares purchased under the repurchase plan do not include shares withheld to satisfy withholding tax obligations.
During the year ended December 27, 2024, the Company repurchased 43 thousand shares of the Company’s common stock from members of its Board of Directors for a total of $1.1 million, or $24.34 per share, which are included in the share repurchase program.
In 2020, 2021 and 2022, the Board of Directors approved an increase in the annual dividend to $0.38 per share, $0.40 per share, and $0.44 per share, respectively. During 2020, the Board of Directors approved the increase in the frequency of dividend payments from semi-annual to quarterly.
Subsequent to the end of fiscal 2024, the Board of Directors approved a 9% increase in the annual dividend amount to $0.48 per share.
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There is no expiration date on the current authorization.
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In October 2024 our Board of Directors approved an additional $20.0 million authorization under the program.
Removed
During the year ended December 30, 2022, under its tender offer transaction, the Company repurchased 4.9 million shares of its common stock under the repurchase plan approved by the Company's Board of Directors, inclusive of transaction related fees, for $116.0 million at an average share price of $23.72.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeWhen establishing allowances for doubtful accounts, management must base their judgment on the information available at that point in time, which may include historical experiences, current economic trends and client credit worthiness, to determine the likelihood of collectability. 21 Segment Reporting Segments are defined as components of a company that engage in business activities from which they may earn revenues and incur expenses, and for which separate financial information is available and is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance.
Biggest changeWhen establishing allowances for doubtful accounts, management must base their judgment on the information available at that point in time, which may include historical experiences, current economic trends and client credit worthiness, to determine the likelihood of collectability.
Material Cash Requirements Debt Payments and Lease Obligations On November 7, 2022, we amended and restated our credit agreement in order to extend the maturity date of our Credit Facility and provide the Company with an additional $55 million in borrowing capacity, for an aggregate amount of up to $100 million.
Material Cash Requirements Debt Payments and Lease Obligations On November 7, 2022, we amended and restated our credit agreement in order to extend the maturity date of our Credit Facility and provide the Company with an additional $55.0 million in borrowing capacity, for an aggregate amount of up to $100 million.
Our revenue is denominated in multiple currencies, primarily the U.S. Dollar, British Pound and Euro, and as a result is affected by currency exchange rate fluctuations. The impact of the currency fluctuation did not have a significant impact on comparisons between 2023 and 2022. Revenue is analyzed based on geographic location of engagement team personnel.
Our revenue is denominated in multiple currencies, primarily the U.S. Dollar, British Pound and Euro, and as a result is affected by currency exchange rate fluctuations. The impact of the currency fluctuation did not have a significant impact on comparisons between 2024 and 2023. Revenue is analyzed based on geographic location of engagement team personnel.
We have omitted discussion of fiscal 2021 items and year-to-year comparisons between fiscal years 2022 and 2021 where it would be redundant with the discussion previously included in Part II, Item 7 (MD&A) of the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2022.
We have omitted discussion of fiscal 2022 items and year-to-year comparisons between fiscal years 2023 and 2022 where it would be redundant with the discussion previously included in Part II, Item 7 (MD&A) of the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2023.
Please refer to Note 1 “Basis of Presentation and General Information” to our consolidated financial statements included in our Annual Report on Form 10-K for the discussion of all of our critical accounting policies.
Please refer to Note 1, “Basis of Presentation and General Information,” to our consolidated financial statements included in our Annual Report on Form 10-K for the discussion of all of our critical accounting policies.
In 2023, 0.2 million shares were withheld and not issued for a cost of $3.8 million, bringing the total cumulative cash used to repurchase stock in 2023 to $4.5 million.
In 2024, 0.2 million shares were withheld and not issued for a cost of $4.1 million, bringing the total cumulative cash used to repurchase stock in 2024 to $10.5 million. In 2023, 0.2 million shares were withheld and not issued for a cost of $3.8 million, bringing the total cumulative cash used to repurchase stock in 2023 to $4.5 million.
Results of Operations Our fiscal year generally consists of a 52-week period and periodically consists of a 53-week period as each fiscal year ends on the Friday closest to December 31. Fiscal years 2023 and 2022 ended on December 29, 2023 and December 30, 2022, respectively, each consisted of a 52-week period.
Results of Operations Our fiscal year generally consists of a 52-week period and periodically consists of a 53-week period as each fiscal year ends on the Friday closest to December 31. Fiscal years 2024 and 2023 ended on December 27, 2024 and December 29, 2023, respectively, each consisted of a 52-week period.
SG&A primarily consists of salaries, benefits and incentive compensation for the selling, marketing, administrative and executive employees, non-cash compensation expense, amortization of intangible assets, acquisition related costs and various other overhead expenses. SG&A costs increased 8%, to $65.9 million in 2023, as compared to $61.0 million in 2022.
SG&A primarily consists of salaries, benefits and incentive compensation for the selling, marketing, administrative and executive employees, non-cash compensation expense, amortization of intangible assets, acquisition-related costs and various other overhead expenses. SG&A costs increased 19%, to $78.5 million in 2024, as compared to $65.9 million in 2023.
In 2023 one customer accounted for 6% of our total revenue and in 2022 one customer accounted for 7% of our total revenue. Segment revenue. We have three reportable segments: Global S&BT, Oracle Solutions and SAP Solutions. Global S&BT includes S&BT Consulting, Benchmarking, Advisory Services, IPASS, OneStream and our Coupa offerings.
In 2024, one customer accounted for 11% of our total revenue and in 2023 one customer accounted for 6% of our total revenue. Segment revenue. We have three reportable segments: Global S&BT, Oracle Solutions and SAP Solutions. Global S&BT includes S&BT Consulting, Benchmarking, Advisory Services, IPASS, Gen AI Consulting and Implementation, OneStream and our Coupa offerings.
See Note 8, “Credit Facility,” to our consolidated financial statements included in this Annual Report on Form 10-K for more information. As of December 29, 2023, we had $32.7 million of outstanding borrowings, net of deferred debt costs, under our revolving line of credit, leaving us with borrowing capacity of approximately $67.0 million.
See Note 8, “Credit Facility,” to our consolidated financial statements included in this Annual Report on Form 10-K for more information. 27 As of December 27, 2024, we had $13.0 million of outstanding borrowings, excluding deferred debt costs, under our revolving line of credit, leaving us with borrowing capacity of approximately $87.0 million.
The following table summarizes our future principal payments under our future Credit Facility and lease commitments under our non-cancelable operating leases as of December 29, 2023 (in thousands): Contractual Obligations Total Less Than 1 Year 1-3 Years 4-5 Years More Than 5 Years Operating lease obligations $ 1,930 $ 1,083 $ 482 $ 365 $ — Long-term debt obligations (1) 33,000 — — 33,000 — Total $ 34,930 $ 1,083 $ 482 $ 33,365 $ — (1) Excludes interest charges on borrowings, the fee on the amount of any unused commitment that we may be obligated to pay under our revolving Credit Facility as such amounts vary and the deferred debt costs.
The following table summarizes our future principal payments under our future Credit Facility and lease commitments under our non-cancelable operating leases as of December 27, 2024 (in thousands): Contractual Obligations Total Less Than 1 Year 1-3 Years 4-5 Years More Than 5 Years Operating lease obligations $ 3,370 $ 1,067 $ 1,654 $ 649 $ — Long-term debt obligations (1) 13,000 — 13,000 — — Total $ 16,370 $ 1,067 $ 14,654 $ 649 $ — (1) Excludes interest charges on borrowings, the fee on the amount of any unused commitment that we may be obligated to pay under our revolving Credit Facility as such amounts vary and the deferred debt costs.
The Hackett Group has completed over 26,600 benchmarking and performance studies with major organizations. These studies are executed utilizing our Quantum Leap platform which drives our DTP. This includes the firm's benchmarking metrics, best practices repository, and best practice configuration and process flow accelerators, which enables our clients and partners to achieve digital world-class performance.
These studies are executed utilizing our Quantum Leap platform which drives our DTP. This includes the firm's benchmarking metrics, best practices repository, and best practice configuration and process flow accelerators, which enables our clients and partners to achieve digital world-class performance.
Recently Issued Accounting Standards For discussion of recently issued accounting standards, see Note 1 to our consolidated financial statements included in this Annual Report on Form 10-K.
Recently Issued Accounting Standards For discussion of recently issued accounting standards, see Note 1, “Basis of Presentation and General Information”, to our consolidated financial statements included in this Annual Report on Form 10-K for more information.
For fiscal year 2023, total revenue increased to $296.6 million , as compared to $293.7 million in 2022, primarily driven by increased total revenue from our Global S&BT segment of $2.3 million and our Oracle Solutions segment of $1.5 million, as compared to 2022. Revenue. We are a global company with operations primarily in the United States and Western Europe.
For fiscal year 2024, total revenue increased to $313.9 million , as compared to $296.6 million in 2023, primarily driven by increased total revenue from our SAP Solutions segment of $10.2 million and our Oracle Solutions segment of $7.9 million, as compared to 2023. Revenue. We are a global company with operations primarily in the United States and Western Europe.
Liquidity and Capital Resources As of December 29, 2023 and December 30, 2022, we had $21.0 million and $30.3 million, respectively, of cash, and $32.7 million,and $59.7 million, respectively, outstanding under our Credit Facility, net of deferred debt costs.
Liquidity and Capital Resources As of December 27, 2024 and December 29, 2023, we had $16.4 million and $21.0 million, respectively, of cash, and $12.7 million and $32.7 million, respectively, outstanding under our Credit Facility, net of deferred debt costs.
Our expertise is grounded in best practices insights from benchmarking the world’s leading businesses – including 97% of the Dow Jones Industrials, 89% of the Fortune 100, 70% of the DAX 40 and 55% of the FTSE 100, which are delivered through our Hackett Connect, QL and DTP platforms.
Our transformation expertise is grounded in best practices insights from benchmarking the world’s leading businesses – including 97% of the Dow Jones Industrials, 90% of the Fortune 100, 70% of the DAX 40 and 51% of the FTSE 100, which inform and are delivered utilizing our platforms.
Cash Flows from Financing Activities Net cash used in financing activities was $42.6 million in 2023, as compared to $69.7 million in 2022. The usage of cash in 2023 was primarily related to the net pay down of our Credit Facility $27.0 million, dividend payments of $12.0 million and employee net vesting related tax withholding requirements of $3.8 million.
The usage of cash in 2023 was primarily related to the net pay down of our Credit Facility $27.0 million, dividend payments of $12.0 million and employee net vesting related tax withholding requirements of $3.8 million.
In 2023, the net cash provided by operating activities was primarily due to net income adjusted for non-cash items, partially offset by a decrease in the income tax liabilities and contract liabilities and an increase in accounts receivable.
In 2024, the net cash provided by operating activities was primarily due to net income adjusted for non-cash items, partially offset by increases in accounts receivable and contract assets.
The following table sets forth total revenue by reportable operating segment, which includes reimbursable expenses related to project travel-related expenses passed through to a client with no associated operating margin (in thousands): Year Ended December 29, December 30, 2023 2022 Global S&BT $ 171,927 $ 169,660 Oracle Solutions 77,772 76,320 SAP Solutions 46,891 47,762 Total revenue $ 296,590 $ 293,742 Global S&BT total revenue increased to $171.9 million in 2023, as compared to $169.7 million in 2022.
The following table sets forth total revenue by reportable operating segment, which includes reimbursable expenses related to project travel-related expenses passed through to a client with no associated operating margin (in thousands): Year Ended December 27, December 29, 2024 2023 Global S&BT $ 171,096 $ 171,927 Oracle Solutions 85,707 77,772 SAP Solutions 57,052 46,891 Total revenue $ 313,855 $ 296,590 Global S&BT total revenue decreased to $171.1 million in 2024, as compared to $171.9 million in 2023.
Cash Flows from Investing Activities Net cash used in investing activities was $4.1 million in 2023, as compared to $4.7 million in 2022. During both periods, cash flows used in investing activities primarily related to investments for the development of our Hackett Connect Executive Advisory member platform and continued development of our QL benchmark and DTP technologies.
During both periods, cash flows used in investing activities primarily related to investments for the development of our Hackett Connect Executive Advisory member platform and continued development of our QL benchmark, DTP technologies and our Gen AI platform, AI XPLR.
The following table summarizes our cash flow activity (in thousands): Year Ended December 29, December 30, 2023 2022 Cash flows provided by operating activities $ 37,401 $ 58,904 Cash flows used in investing activities $ (4,101 ) $ (4,656 ) Cash flows used in financing activities $ (42,565 ) $ (69,736 ) Cash Flows from Operating Activities Net cash provided by operating activities was $37.4 million in 2023, as compared to $58.9 million in 2022.
The following table summarizes our cash flow activity (in thousands): Year Ended December 27, December 29, 2024 2023 Cash flows provided by operating activities $ 47,729 $ 37,401 Cash flows used in investing activities $ (10,620 ) $ (4,101 ) Cash flows used in financing activities $ (41,662 ) $ (42,565 ) Cash Flows from Operating Activities Net cash provided by operating activities was $47.7 million in 2024, as compared to $37.4 million in 2023.
Subsequent to fiscal year end, we repurchased 43 thousand shares of the Company’s common stock from members of our Board of Directors for a total of $1.1 million, or $24.34 per share. Including these repurchases, we had approximately $12.9 million available for future repurchases under the plan as of March 1, 2024.
Subsequent to fiscal year end, we repurchased 50 thousand shares of the Company’s common stock from our Chief Financial Officer and members of our Board of Directors for a total of $1.6 million, or $30.78 per share. Including these repurchases, we had approximately $26.0 million available for future repurchases under the plan.
In 2022, the net cash provided by operating activities was primarily due to net income adjusted for non-cash items and an increase in the income tax liabilities, partially offset by the decrease in accrued liabilities and other accruals.
In 2023, the net cash provided by operating activities was primarily due to net income adjusted for non-cash items, partially offset by increases in accounts receivable and contract assets and decreases in accrued liabilities, other accruals and income taxes payable.
The firm recently launched our AI XPLR offering which helps define an organizations’ Gen AI enablement opportunities. Using AI XPLR, our AI assessment platform, our experienced professionals guide organizations to harness the power of Gen AI to digitally transform their operations and seek to achieve quantifiable, breakthrough results, allowing us to be key architects of our clients' Gen AI journey.
Using AI XPLR, our experienced professionals guide organizations to harness the power of Gen AI solutions designed to digitally transform their operations to achieve quantifiable, breakthrough results, allowing us to be key architects of our clients' Gen AI journey.
References to a year included in this document refer to a fiscal year rather than a calendar year. 22 The following table sets forth, for the periods indicated, our results of operations (in thousands): Year Ended December 29, December 30, 2023 2022 Revenue: Revenue before reimbursements $ 291,273 $ 289,688 Reimbursements 5,317 4,054 Total revenue 296,590 293,742 Costs and expenses: Cost of service: Personnel costs before reimbursable expenses (includes $6,238 and $6,201 of stock compensation expense in 2023 and 2022, respectively) 174,891 174,112 Reimbursable expenses 5,317 4,054 Total cost of service 180,208 178,166 Selling, general and administrative costs (includes $4,486 and $4,066 of stock compensation expense in 2023 and 2022, respectively) 65,942 60,979 Restructuring and asset impairment settlement — (651 ) Legal settlement and related costs 1,178 — Total costs and operating expenses 247,328 238,494 Operating income 49,262 55,248 Other expense, net: Interest expense, net (3,235 ) (144 ) Income from continuing operations before income taxes 46,027 55,104 Income tax expense 11,876 14,302 Net income $ 34,151 $ 40,802 Comparison of 2023 to 2022 Overview.
References to a year included in this document refer to a fiscal year rather than a calendar year. 24 The following table sets forth, for the periods indicated, our results of operations (in thousands): Year Ended December 27, December 29, 2024 2023 Revenue: Revenue before reimbursements $ 307,028 $ 291,273 Reimbursements 6,827 5,317 Total revenue 313,855 296,590 Costs and operating expenses: Cost of service: Personnel costs before reimbursable expenses (includes $10,491 and $6,238 of stock compensation expense in 2024 and 2023, respectively) 183,792 174,891 Reimbursable expenses 6,827 5,317 Total cost of service 190,619 180,208 Selling, general and administrative costs (includes $9,033 and $4,486 of stock compensation expense in 2024 and 2023, respectively) 78,546 65,942 Legal settlement and related costs 102 1,178 Total costs and operating expenses 269,267 247,328 Operating income 44,588 49,262 Other expense, net: Interest expense, net (1,594 ) (3,235 ) Income from operations before income tax expense 42,994 46,027 Income tax expense 13,364 11,876 Net income $ 29,630 $ 34,151 Comparison of 2024 to 2023 Overview.
Hackett is a global IP-based executive advisory, strategic consulting and digital transformation firm. The Hackett Group provides dedicated expertise in Gen AI strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including its highly recognized Oracle, SAP, OneStream and Coupa implementation offerings.
Hackett is a global IP platform-based GenAI strategic consulting and executive advisory digital transformation firm. strategic consulting and digital transformation firm. The Hackett Group provides dedicated expertise in Gen AI enabled enterprise transformation services across front, mid and back office areas, including its highly recognized Oracle, SAP, OneStream and Coupa implementation offerings.
The judgement management must make include determining whether the control of the goods and services provided are transferred to our customers at a point in time or over the course of the service period utilizing a proportionate performance approach.
The judgement management must make include determining whether the control of the goods and services provided are transferred to our customers at a point in time or over the course of the service period utilizing a proportionate performance approach. 22 In fixed-fee billing arrangements, which would also include contracts with capped fees, we set the fees based on our estimates of the costs and timing for completing the engagements.
On February 17, 2024, we, Gartner and the two ex-Gartner employees entered into a settlement agreement whereby we made a settlement payment of $985,000 to Gartner, Inc. in exchange for a dismissal of the lawsuit and a release of all claims. In addition, we incurred incremental legal costs related to the settlement. Segment Profit.
On February 17, 2024, we, Gartner and the two 26 ex-Gartner employees entered into a settlement agreement whereby we made a settlement payment of $985,000 to Gartner in exchange for a dismissal of the lawsuit and a release of all claims which is reflected in our Consolidated Statement of Operations for the year ended December 29, 2023.
The Company has organized its operating and internal reporting structure to align with its primary market solutions. In accordance with ASC 280, management made the determination to present three operating segments, three reportable segments and three reporting units as follows: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions.
In accordance with ASC 280, management made the determination to present three operating segments, three reportable segments and three reporting units as follows: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions. A reporting unit is an operating segment or one level below an operating segment to which goodwill is assigned.
Segment profit consists of the revenue generated by the segment, less the direct costs of revenue and selling, general and administrative expenses that are incurred directly by the segment. Items not allocated to the segment level include corporate costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment.
Items not allocated to the segment level include corporate costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. These administrative function costs include corporate general and administrative expenses, non-cash compensation, depreciation and amortization expense and interest expense.
Income Taxes. During 2023, we recorded $11.9 million of income tax expense related to certain federal, state and foreign taxes which reflected an effective tax rate of 25.8%. During 2022, we recorded $14.3 million of income tax expense related to certain federal, state and foreign taxes which reflected an effective tax rate of 26.0%.
During 2023, we recorded $11.9 million of income tax expense related to certain federal, state and foreign taxes which reflected an effective tax rate of 25.8%. The increase in the effective tax rate is primarily due to the limitation of executive compensation deductions related to executive compensation, primarily driven by the stock price award program.
During 2023, we repurchased 37 thousand shares of common stock from members of our Board of Directors at an average price per share of $18.96, for a total cost of $0.7 million. As of December 29, 2023, we had $13.9 million share repurchase authorization remaining.
During 2024, we repurchased 43 thousand shares of common stock from members of our Board of Directors at an average price per share of $24.34, for a total cost of $1.1 million.
Dividends and Share Repurchases During the fiscal year 2023, our Board of Directors approved four quarterly dividends payments of $0.11 per share totaling $12.0 million. We expect dividend payments in 2024 to be approximately $12.0 million. We have an ongoing authorization from our Board of Directors to repurchase shares of our common stock.
Subsequent to December 27, 2024, our Board of Directors approved a 9% increase in the dividend, increasing the annual dividend amount to $0.48 per share. We expect dividend payments in 2025 to be approximately $13.2 million. We have an ongoing authorization from our Board of Directors to repurchase shares of our common stock.
This increase in the costs was primarily due to the increased investments in dedicated sales resources for our IP-based offerings in our Global S&BT segment, partially offset by lower incentive compensation commensurate with Company performance. SG&A costs as a percentage of total revenue were 22% and 21% during 2023 and 2022, respectively.
This increase in the costs during 2024 was primarily due to increased commissions and sales related expenses, increased incentive compensation commensurate with Company performance and increased non-cash stock based compensation related to the stock price award program. SG&A costs as a percentage of total revenue were 25% and 22% during 2024 and 2023, respectively.
The carrying amount of goodwill by reporting unit is as follows (in thousands): Foreign December 30, Additions/ Currency December 29, 2022 Adjustments Translation 2023 Global S&BT $ 56,810 $ - $ 740 $ 57,550 Oracle Solutions 16,699 — — 16,699 SAP Solutions 9,993 — — 9,993 Goodwill $ 83,502 $ - $ 740 $ 84,242 Income Taxes Management’s judgement is required in the calculation of the income tax provision.
The carrying amount of goodwill by reporting unit is as follows (in thousands): Foreign December 29, Additions/ Currency December 27, 2023 Adjustments Translation 2024 Global S&BT $ 57,550 $ 5,876 $ (336 ) $ 63,090 Oracle Solutions 16,699 — — 16,699 SAP Solutions 9,993 — — 9,993 Goodwill $ 84,242 $ 5,876 $ (336 ) $ 89,782 Goodwill is tested at least annually for impairment at the reporting unit level utilizing the market approach.
The usage of cash in 2022 was primarily related to the repurchase of Company common stock under our share repurchase program of $116.6 million, inclusive of the tender offer transaction related costs, employee net vesting related tax withholding requirements of $3.2 million, and dividend payments of $10.4 million, partially offset by the $60.0 million drawdown of our Credit Facility.
The usage of cash in 2024, primarily related to the repayment of borrowings of $20.0 million related to our Credit Facility, dividend payments of $12.1 million, employee net vesting related tax withholding requirements of $4.1 million and the repurchase of $6.4 million of the Company's common stock.
Taxes Cash paid for income taxes was $13.3 million and $4.6 million for the years ended December 29, 2023, and December 30, 2022, respectively. The increase in the income tax payments related to the 2021 tax deduction for the exercise of the 2.9 million SARs.
We expect an increase in capital expenditures related to the continued development of the ZBrain AI orchestration platform and the integration of AI XPLR. Taxes Cash paid for income taxes was $11.6 million and $13.3 million for the years ended December 27, 2024, and December 29, 2023, respectively.
A reporting unit is an operating segment or one level below an operating segment to which goodwill is assigned. The goodwill has been allocated to the reporting unit based on the reporting unit's relative fair value.
The goodwill has been allocated to the reporting unit based on the reporting unit's relative fair value. The provisional goodwill related to LeewayHertz has been included in Global S&BT segment.
Oracle Solutions segment profit increased to $18.1 million in 2023, as compared to $15.3 million in 2022, primarily due to lower salaries and benefits and higher revenue, partially offset by the higher utilization of subcontractors. 24 SAP Solutions segment profit decreased to $11.9 million in 2023, as compared to $12.8 million in 2022, primarily due to the lower sales of SAP cloud software, as well as sales related investments made during the year .
Oracle Solutions segment profit increased to $19.1 million in 2024, as compared to $18.1 million in 2023, primarily due to higher revenue, partially offset by increased headcount and increased usage of subcontractors.
Personnel costs as a percentage of total revenue were 59% in both 2023 and 2022. Non-cash stock-based compensation expense, included in personnel costs before reimbursable expenses, was $6.2 million in both 2023 and 2022. Selling, General and Administrative Costs (“SG&A”) .
Personnel costs before reimbursable expenses, increased to $183.8 million in 2024, as compared to $174.9 million in 2023. The higher costs in 2024 were primarily a result of increased salaries relating to increased headcount, higher utilization of subcontractors and increases in non-cash stock compensation expense. Personnel costs as a percentage of total revenue were 59% in both 2024 and 2023.
This is being driven by increasing activity across our EPM offerings within this segment. SAP Solutions total revenue decreased to $46.9 million in 2023, from $47.8 million in 2022, primarily due to lower sales of SAP cloud software, as compared to the prior year. Reimbursements as a percentage of total revenue were 1.8% in 2023 and 1.4% in 2022.
SAP Solutions total revenue increased to $57.1 million in 2024, from $46.9 million in 2023. The revenue growth in 2024 was due to the strong software-related sales resulting from the increased sales investments we made in late 2023. Reimbursements as a percentage of total revenue were 2.2% in 2024 and 1.8% in 2023.
Oracle Solutions and SAP Solutions support the two fundamentally distinct ERP systems: Oracle and SAP. See Note 15 “Segment Information and Geographic Data” for detailed segment information. Goodwill and Other Intangible Assets For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired.
Goodwill For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired. The Company has organized its operating and internal reporting structure to align with its primary market solutions.
As a result of the transaction, the Company carried an income tax receivable on its Consolidated Balance Sheet in 2022 until the fourth quarter of 2022. See Note 9, “Income Taxes” to our consolidated financial statements included in this Annual Report on Form 10-K for further information.
See Note 1 , “Basis of Presentation and General Information”, to our consolidated financial statements included in this Annual Report on Form 10-K for more information.
During the years ended December 29, 2023, and December 30, 2022, our capital expenditures were $4.1 million and $4.7 million, respectively. We expect capital expenditures for the year ended December 27, 2024, to approximate the capital expenditures in 2023.
Our capital expenditures primarily consist of investments related to the continued development of our Hackett Connect Executive Advisory member platform, our QL benchmark, Digital Transformation technologies and our Gen AI platform, AI XPLR. During the years ended December 27, 2024, and December 29, 2023, our capital expenditures were $4.1 million for both years.
Removed
In fixed-fee billing arrangements, which would also include contracts with capped fees, we set the fees based on our estimates of the costs and timing for completing the engagements.
Added
In early 2024, we launched our AI assessment platform, AI XPLR which helps clients identify, evaluate and design Gen AI enablement opportunities.
Removed
The Company assesses its operating segments under the management approach in accordance with ASC 280, Segment Reporting (ASC 280) and has determined that it has three operating segments: Global Strategy & Business Transformation ("Global S&BT"), Oracle Solutions and SAP Solutions. Global S&BT includes S&BT Consulting, Benchmarking, Executive Advisory Services, IPaaS, OneStream and Coupa.
Added
We believe Gen AI will fundamentally change the way companies operate as well as the way consulting services are sold and delivered.
Removed
Deferred tax assets and liabilities are measured by using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to reverse. A valuation allowance is provided if management believes it is more likely than not that all or some portion of the deferred tax asset will not be realized.
Added
We believe the Gen AI platform capabilities we have developed in AI XPLR which were expanded with ZBrain, which we acquired as part of the LeewayHertz acquisition, is highly differentiating and we expect will enable us to effectively compete in this emerging and important space. The Hackett Group has completed over 27,500 benchmarking and performance studies with major organizations.
Removed
An increase or decrease in the valuation allowance may result from a change in circumstances, and therefore a change in management’s judgment about the realizability of the related deferred tax asset.
Added
Impact of Macroeconomic Conditions on Our Business The level of revenue we achieve is based on our ability to deliver market leading services and solutions and to deploy skilled teams of professionals quickly. Our results of operations are affected by economic conditions, including macroeconomic conditions and levels of business confidence.
Removed
Management adopted a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return in regards to the de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures.
Added
Any deterioration in the current macroeconomic environment or economic downturn as a result of weak or uncertain economic conditions due to inflation, high interest rates, national or geopolitical events or other factors impacting economic activity or business confidence could adversely affect our clients' financial condition or outlook which may reduce the clients' demand for our services.
Removed
This segment has been impacted by slowing economic growth resulting in extended client decision making in our business transformation engagements. 23 Additionally, the prior periods comparisons were against the accelerated post pandemic demand that we experienced throughout the first half of 2022. Global S&BT represented 58% of the Company's total revenue.
Added
Business Combinations For transactions that are considered business combinations, we utilize fair values in determining the carrying values of the purchased assets and assumed liabilities, which are recorded at fair value at acquisition date, and identifiable intangible assets are recorded at fair value. Costs directly related to the business combinations are recorded as expenses as they are incurred.
Removed
In addition to solid performance from our transformation consulting groups, our IP-based higher-margin Executive Advisory and IPaaS offerings grew 7%. The success and market opportunity for our IP offerings highlight the reasons why we have accelerated our sales and product development investments in this area.
Added
Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values become available. A bargain purchase gain on an acquisition occurs when the net of the estimated fair value of the assets acquired and liabilities assumed exceeds the consideration paid.
Removed
Oracle Solutions total revenue increased to $77.8 million in 2023, as compared to $76.3 million in 2022, primarily due to the segment's continued momentum that began in the second quarter of 2023, with strong double digit growth over the last two quarters of 2023, as compared to the prior year periods.
Added
On September 23, 2024, the Company acquired 100% of the equity of LeewayHertz Technologies Private Limited (“LeewayHertz”), a technology consulting company based in India, focused on AI technology solutions for a provisional purchase consideration of $7.8 million subject to a working capital achievement.
Removed
Personnel costs before reimbursable expenses, increased slightly to $174.9 million in 2023, as compared to $174.1 million in 2022. The higher costs in 2023 were primarily a result of increased utilization of subcontractors to support business growth, partially offset by lower incentive compensation accruals when compared to the prior year resulting from Company performance.
Added
LeewayHertz’s founder, one of LeewayHertz ’s owners, was hired by the Company to serve as its executive vice president of the AI practice.
Removed
Non-cash stock-based compensation expense, included in SG&A, was $4.5 million in 2023, as compared to $4.1 million in 2022. There was no amortization expense included in SG&A in 2023, however, there was $0.2 million of amortization expense in 2022.
Added
Since the acquisition was only recently completed, the allocation of the purchase price is preliminary and will likely change in future periods as fair value estimates of the assets acquired and liabilities assumed are finalized, including those primarily related to working capital, property and equipment, intangible assets, and taxes.
Removed
The amortization expense related to the amortization of the intangible asset acquired in our acquisitions and the buyout of our partner’s joint venture interest in the CGBS Training and Certification Programs in 2017. The intangible assets related to the acquisitions were fully amortized as of the second quarter of 2022. Legal Settlement and Related Costs. In May 2023, Gartner, Inc.
Added
The final determination of the fair values will be completed within the one-year measurement period.
Removed
These administrative function costs include corporate general and administrative expenses, non-cash compensation, depreciation and amortization expense, interest expense and the restructuring and asset impairment reversals. Global S&BT segment profit decreased to $54.4 million in 2023, as compared to $61.3 million in 2022.
Added
The following table summarizes the provisional fair value of the assets acquired and liabilities assumed: Amount Assets / Liabilities (in thousands) Cash $ 1,020 Current assets 2,081 Intangible assets 2,500 Current liabilities (2,587 ) Other liability (432 ) Deferred tax liability (652 ) Net assets acquired $ 1,930 Consideration $ 7,806 Goodwill $ 5,876 As a result, the provisional excess of the purchase price over the assets acquired resulted in goodwill of $5.9 million.
Removed
This decrease was primarily a result of the incremental investments we are making in program development and additional dedicated sales resources for Benchmark, Executive Advisory, Market Intelligence and our other IPaaS offerings.
Added
Additionally, the Company recognized provisional intangible assets of $2.5 million, with a remaining weighted average useful life of 4.6 years. The fair values of identifiable intangible assets acquired were prepared by a third-party valuation specialist and incorporate significant unobservable inputs, judgment, and estimates, including the amount and timing of future cash flows.
Removed
See Note 8 for more information. 25 There were no material capital commitments as of December 29, 2023.
Added
The intangible assets will be amortized in accordance with the Company’s accounting policies.
Removed
See Note 8, in the notes to consolidated financial statements for additional information. Capital Expenditures There were no material commitments for capital expenditures as of December 29, 2023. Our capital expenditures primarily consist of investments related to the continued development of our QL, DTP and Hackett Connect platforms and laptop purchases.
Added
The following table summarizes the provisional value of the intangible assets acquired: Amount Useful Life Category (in thousands) (in years) Customer Relationships $ 2,200 5 Technology 200 2 Non-Compete 100 2 Total $ 2,500 23 Also, in connection with the acquisition, the Company and LeewayHertz ’s founder are creating a joint venture whereby The Hackett Group will contribute its AI XPLR platform and LeewayHertz will contribute its ZBrain platform.
Removed
In 2022, 0.2 million shares were withheld and not issued for a cost of $3.2 million, bringing the total cumulative cash used to repurchase stock in 2022 to $119.8 million, including the tender offer transaction and related transaction fees.
Added
The integration of AI XPLR and the ZBrain Gen AI orchestration solution will enable the joint venture to provide advanced and tailored Gen AI solutions to its clients. The joint venture is expected to be formed by the middle of the Company's 2025 fiscal year and we expect its results will be consolidated into our financial statements.
Added
In assessing the recoverability of goodwill and intangible assets, the Company utilizes the market approach and makes estimates based on assumptions regarding various factors to determine if impairment tests are met. The market approach utilizes valuation multiples based on operating data from publicly traded companies within the same industry.
Added
Multiples derived from guideline companies provide an indication of how much a market participant would be willing to pay for a company. These multiples are then applied to the Company’s reporting units to arrive at an indication of value. This approach contains management’s judgment, using appropriate and customary assumptions available at the time.
Added
We performed our annual impairment test of goodwill in the fourth quarter of fiscal years 2024, 2023 and 2022 and determined that goodwill was not impaired.
Added
Stock Based Compensation We recognize compensation expense for awards of equity and liability instruments, which have only a service condition, to employees based on the grant-date fair value of those awards, over the requisite service period, with limited exceptions. In September 2024, a stock price award program was offered to certain leaders.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeWe recognized losses related to foreign currency exchange of $0.4 million in 2023 and income of $1.4 million and $130 thousand in 2022 and 2021, respectively. These exposures may change over time as business practices evolve. Currently, we do not hold any derivative contracts that hedge our foreign currency risk, but we may adopt such strategies in the future.
Biggest changeWe recognized losses related to foreign currency exchange of $19 thousand in 2024 and $0.4 million in 2023 and income of $1.4 million in 2022. These exposures may change over time as business practices evolve. Currently, we do not hold any derivative contracts that hedge our foreign currency risk, but we may adopt such strategies in the future.
A 100-basis point increase in our interest rate under our Credit Facility would not have had a material impact on our 2023 results of operations. Exchange Rate Sensitivity We face exposure to adverse movements in foreign currency exchange rates, as a portion of our revenue, expenses, assets and liabilities are denominated in currencies other than the U.S. Dollar.
A 100-basis point increase in our interest rate under our Credit Facility would not have had a material impact on our 2024 results of operations. Exchange Rate Sensitivity We face exposure to adverse movements in foreign currency exchange rates, as a portion of our revenue, expenses, assets and liabilities are denominated in currencies other than the U.S. Dollar.
For a discussion of the risks we face as a result of foreign currency fluctuations, see “Item 1A. Risk Factors” in Part I of this report. 27
For a discussion of the risks we face as a result of foreign currency fluctuations, see “Item 1A. Risk Factors” in Part I of this report. 29
ITEM 7A. QUANTITATIVE AND QUAL ITATIVE DISCLOSURES ABOUT MARKET RISK As of December 29, 2023, our exposure to market risk related primarily to changes in interest rates and foreign currency exchange rate risks. 26 Interest Rate Risk Our exposure to market risk for changes in interest rates relates primarily to the Credit Facility, which is subject to variable interest rates.
ITEM 7A. QUANTITATIVE AND QUAL ITATIVE DISCLOSURES ABOUT MARKET RISK As of December 27, 2024, our exposure to market risk related primarily to changes in interest rates and foreign currency exchange rate risks. 28 Interest Rate Risk Our exposure to market risk for changes in interest rates relates primarily to the Credit Facility, which is subject to variable interest rates.
The interest rates per annum applicable to loans under the Credit Facility will be, at our option, equal to either a base rate or a Bloomberg short-term bank yield index rate ("BSBY rate") for one-, two-, three- or nine-month interest periods chosen by us in each case, plus an applicable margin percentage.
The interest rates per annum applicable to loans under the Credit Facility will be, at our option, equal to either a base rate or a Secured Overnight Financing Rate ("SOFR") rate for one-, two-, three- or nine-month interest periods chosen by us in each case, plus an applicable margin percentage.

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