Hackett : Supplemental Data discussed during earnings call (Hackett Q12026 Supplemental Data)

Published: 2026-05-06 19:50:24 ET HCKT

Published on 05/06/2026 at 07:50 pm EDT

Q1 2026 % of recurring revenue before reimbursements to total Company revenue before reimbursements

approx. 24%

Q1 2026 total Company adjusted cost of sales

$39.2M

Q1 2026 total Company adjusted cost of sales as % of revenue before reimbursements

57.7%

Q1 2025 total Company adjusted cost of sales

$43.1M

Q1 2025 total Company adjusted cost of sales as % of revenue before reimbursements

56.6%

Q1 2026 total Company adjusted gross margin as % of revenue before reimbursements

42.3%

Q1 2025 total Company adjusted gross margin as % of revenue before reimbursements

43.4%

Q1 2026 total Company adjusted SGA

$16.1M

Q1 2026 total Company adjusted SGA as % of revenue before reimbursements

23.7%

Q1 2025 total Company adjusted SGA

$18.4M

Q1 2025 total Company adjusted SGA as % of total revenue

24.1%

Q1 2026 adjusted EBITDA

$13.8M

Q1 2026 adjusted EBITDA as a % of revenue before reimbursements

23.7%

Q1 2025 adjusted EBITDA

$15.7M

Q1 2025 adjusted EBITDA as a % of revenue before reimbursements

20.7%

(in thousands, except per share data) (unaudited)

GAAP NET INCOME

$

4,281

$ 3,143

Adjustments (1):

Non-cash stock based compensation expense (2)

2,396

2,765

Stock price award program compensation expense (2)(3)

1,096

5,142

Acquisition-related cash compensation expense (4)

(64)

308

Acquisition-related non-cash stock based compensation expense (4)

(2,013)

1,765

Acquisition-related costs

-

194

Restructuring costs

1,956

-

Amortization of intangible assets (4)

315

145

ADJUSTED NET INCOME BEFORE INCOME TAXES ON ADJUSTMENTS (1)

7,967

13,462

Tax effect of adjustments above (5)

(685)

1,856

ADJUSTED NET INCOME (1)

$ 8,652

$ 11,606

GAAP diluted net income per common share

$ 0.17

$ 0.11

Adjusted diluted net income per common share (1)

$ 0.34

$ 0.41

Weighted average common and common equivalent shares outstanding

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (ADJUSTED EBITDA)

25,258

28,385

GAAP NET INCOME $ 4,281 $ 3,143

Add back:

Income tax expense

3,647

1,058

Interest expense

1,008

202

Depreciation

1,165

1,025

Amortization

315

145

EBITDA

10,416

5,573

Adjustments:

Non-cash stock based compensation expense (2)

2,396

2,765

Stock price award program compensation expense compensation expense (2)(3)

1,096

5,142

Acquisition-related cash compensation expense (4)

(64)

308

Acquisition-related non-cash stock based compensation expense (4)

(2,013)

1,765

Acquisition-related costs

-

194

Legal settlement and related costs

1,956

-

ADJUSTED EBITDA

$ 13,787

$ 15,747

March 27,

March 28,

2026

2025

Revenue:

Revenue before reimbursements

$

67,843

$ 76,231

Reimbursements

954

1,634

Total revenue

68,797

77,865

Costs and expenses:

Cost of service:

Personnel costs before reimbursable expenses

38,505

48,380

Reimbursable expenses

954

1,634

Total cost of service

39,459

50,014

GAAP GROSS MARGIN

29,338

27,851

Adjustments:

Non-cash stock based compensation expense (2)

1,526

1,551

Stock price award program compensation expense (2)(3)

(100)

1,614

Acquisition-related cash compensation expense (4)

(64)

308

Acquisition-related non-cash stock based compensation expense (4)

(2,015)

1,763

ADJUSTED GROSS MARGIN

$ 28,685

$

33,087

GAAP TOTAL COST OF SERVICE

$

39,459

$ 50,014

Adjustments:

Non-cash stock based compensation expense (2)

(1,526)

(1,551)

Stock price award program compensation expense compensation expense (2)(3)

100

(1,614)

Acquisition-related cash compensation expense (4)

64

(308)

Acquisition-related non-cash stock based compensation expense (4)

2,015

(1,763)

Reimbursable expenses

(954)

(1,634)

ADJUSTED COS

$ 39,158

$ 43,144

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (ADJUSTED SGA)

Quarter Ended

March 27,

2026

March 28,

2025

GAAP SELLING, GENERAL AND ADMINISTRATIVE COSTS

$

20,402

$ 23,448

Adjustments:

Non-cash stock based compensation expense (2)

(870)

(1,215)

Stock price award program compensation expense compensation expense (2)(3)

(1,196)

(3,529)

Acquisition-related non-cash stock based compensation expense (4)

(2)

Acquisition-related costs

-

(194)

Amortization expense

(315)

(145)

Legal settlement and related costs

-

-

ADJUSTED SGA

$ 18,019

$

18,365

The Company provides adjusted earnings results (which excludes non-cash stock based compensation expense, stock price award program compensation expense, acquisition-related cash and non-cash stock based compensation expense, amortization expense, acquisition related costs and legal settlement and related costs and includes a GAAP tax rate) as a complement to results provided in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP results are provided to enhance the users' overall understanding of the Company's current financial performance and its prospects for the future. The Company believes the non-GAAP results provide useful information to both management and investors and by excluding certain expenses that it believes are not indicative of its core operating results. The non-GAAP measures are included to provide investors and management with an alternative method for assessing operating results in a manner that is focused on the performance of its ongoing primary operations and to provide a consistent basis for comparison between quarters. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting. The presentation of this additional non-GAAP information should be considered in addition to, and not as a substitute for or superior to, any results prepared in accordance with GAAP.

Non-cash stock based compensation expense is accounted for under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation-Stock Compensation. The Company excludes non-cash stock based compensation expense and the related tax effects for the purposes of adjusted net income and adjusted diluted earnings per share. The Company believes that non-GAAP measures of profitability, which exclude non-cash stock based compensation expense, are widely used by investors.

The stock price award program compensation expense relates to equity awards that were granted with certain market share price hurdles and service conditions to meet before they are vested. The market price hurdles include twenty consecutive trading days of equal to or greater than $30, $40 and $50 per share price. As of March 27, 2026, the first market condition had been met, and although the shares have not vested they are included in the Company's dilutive shares outstanding for the quarter ended March 27, 2026. As of March 27, 2026, the second and third market conditions had not been met and as such the shares have not vested and are not included in the Company's basic or dilutive shares outstanding. Non-cash compensation of $1.1 million was recorded in the first quarter of 2026.

The Company incurs cash and non-cash stock based compensation expense for acquisition related consideration that is recognized over time under GAAP. The Company believes excluding these amounts more consistently presents its ongoing results of operations because they are related to acquisitions and not due to normal operating activities. The acquisition-related non-cash stock based compensation expense is also accounted for under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation-Stock Compensation.

The adjustment for the income tax expense is based on the accounting treatment and income tax rate for the jurisdiction of each item. The impact of all of the non-cash stock based compensation expense was $404 thousand and $1.7 million in the first quarter of 2026 and 2025, respectively. The impact of acquisition related cash compensation expense was $16 thousand and $78 thousand in the first quarter of 2026 and 2025, respectively. The impact of the acquisition related costs including amortization was $82 thousand and $50 thousand in the first quarter of 2026 and 2025, respectively. The impact of the restructuring cost was $0.5 million in the first quarter of 2026.

Disclaimer

The Hackett Group Inc. published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 23:47 UTC.