Hackett Group reports $3.56 million net income for Q3 2026

Cover page 2 changes

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For the quarterly period ended June 26, September 25, 2026

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As of July 31, October 30, 2026 there were 24,877,873 24,804,403 shar es of common stock outstanding.

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Financial statements 23 changes

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Accounts receivable and contract assets, net of allowance of $ 1,496 1,542 and $ 1,921 at June 26, September 25, 2026 and December 26, 2025, respectively

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Common stock, $ 0.001 par value, 125,000,000 shares authorized; 62,254,534 62,349,137 and

61,886,232 shares issued at June 26, September 25, 2026 and December 26, 2025, respectively

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Treasury stock, at cost, 37,377,576 37,544,734 and 36,793,733 shares June 26, September 25, 2026 and December 26, 2025, respectively ( 357,065 358,888 ( 350,171

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Personnel costs before reimbursable expenses (includes $ 2,460 3,209 and $ 1,871 5,080 and $ 4,985 1,580 and $ 9,913 11,493 of non-cash stock based compensation expense in the three months and six nine months ended June 26, September 25, 2026 and June 27, September 26, 2025, respectively)

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Selling, general and administrative costs (includes $ 1,793 1,875 and $ 3,861 5,737 and $ 4,736 4,308 and $ 9,480 13,788 of non-cash stock based compensation expense in the three months and six nine months ended June 26, September 25, 2026 and June 27, September 26, 2025, respectively)

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Increase Decrease in contract liabilities

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Accumulated Other Comprehensive

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Issuance of common stock

Treasury stock purchased

Amortization of restricted stock

units and common stock subject to

vesting requirements

Foreign currency translation

Balance at September 25, 2026

Accumulated Other Comprehensive

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Issuance of common stock

Treasury stock purchased

Amortization of restricted stock

units and common stock subject to

vesting requirements

Foreign currency translation

Balance at September 26, 2025

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Note 1: B asis of Presentation and General Information 6 changes

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In the opinion of management, the accompanying consolidated financial statements reflect all normal and recurring adjustments which are necessary for a fair presentation of the Company's financial position, results of operations, and cash flows as of the dates and for the periods presented. The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 26, 2025, included in the Annual Report on Form 10-K filed by the Company with the SEC on February 28, 2026. The consolidated results of operations for the quarter and six nine months ended June 26, September 25, 2026 , are not necessarily indicative of the results to be expected for any future period or for the full fiscal year.

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Business Combination

On May 15, 2025, Hackett acquired certain assets and liabilities of Spend Matters LLC ("Spend Matters"), a leading provider of data-backed technology and solutions intelligence in the procurement and supply chain sectors. At closing, Hackett paid cash consideration of $ 767 thousand.

As a result of the acquisition, the Company recognized intangible assets of $ 2.0 million, with a remaining weighted average useful life of 2.0 years.

Segments are defined as components of a company that engage in business activities from which they earn revenue 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. The Company assessed 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 S&BT, Oracle Solutions and SAP Solutions which are also its reportable segments. Global S&BT includes S&BT Gen AI and Business Transformation Consulting, Benchmarking, Applied Intelligence Services, Intellectual Property as-a-Service (IPASS) and OneStream offerings. Oracle Solutions and SAP Solutions support the two fundamentally distinct ERP systems: Oracle and SAP. See Note 11 "Segment Information and Geographical Data" for detailed segment information.

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. 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. as discussed above: Global S&BT, includes the results of the Company's Gen AI and strategic business consulting practices; Oracle Solutions, includes the results of the Company's Oracle EPM/ERP and AI Enablement practices; SAP Solutions. includes the Company's SAP applications and related SAP service offerings. A reporting unit is an operating segment or one level below an operating segment to which goodwill is assigned. The goodwill was allocated to the reporting unit based on the reporting unit's relative fair value. The carrying amount of goodwill by reporting unit is as follows (in thousands):

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Note 2: Net Income per Common Share 1 change

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Approximately 375 382 thousand shares and 294 323 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarter and six nine months ended June 26, September 25, 2026, respectively, as compared to 3 40 thousand shares and 2 14 thousand shares for the same periods in 2025, respectively, as inclusion would have had an anti-dilutive effect on diluted net income per common share. In addition, 1.2 million restricted stock units in the quarter and six nine months ended June 26, September 25, 2026, were excluded from the computations of diluted net income per common share as they are contingently issuable shares with market-related conditions that have not been satisfied. Please see Note 7 for further information.

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Note 3: Accounts Receivable and Contract Assets, Net 1 change

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Accounts receivable as of June 26, September 25, 2026 and December 26, 2025, is net of uncollected advanced billings. Contract assets as of June 26, September 25, 2026 and December 26, 2025, includes recognized recoverable costs and accrued profits on contracts for which billings had not been presented to clients. As of December 27, 2024, the Company had accounts receivable and contract assets of $ 35.9 million and $ 23.5 million, respectively. The allowance for doubtful accounts includes reserves related to client collection concerns and aged receivables. The Company has included $ 17.0 16.2 million and $ 11.9 million as of June 26, September 25, 2026 and December 26, 2025, respectively, in accounts receivable for certain software-related contract assets (unbilled revenue) that are multi-year in nature.

Note 4: Accrued Expenses and Other Liabilities 1 change

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Accrued professional fees

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Note 5: Lease Commitments 2 changes

The Company has operating leases for office space and, to a much lesser extent, operating leases for equipment. The Company's office leases are between terms of 1 year and 5 years. Rents usually increase annually in accordance with defined rent steps or are based on current year consumer price index adjustments. Some of the lease agreements contain one or more of the following provisions: tenant allowances, rent holidays, lease premiums, and rent escalation clauses. There are typically no purchase options, residual value guarantees or restrictive covenants. When renewal options exist, the Company generally does not deem them to be reasonably certain to be exercised, and therefore the amounts are not recognized as part of the lease liability nor the right of use asset. The Company has certain leases that have terms that are a year or less and are accounted on a straight-line basis over the term of the lease. The Company recognized $ 24 25 thousand and $ 48 73 thousand of lease expense in the quarter and six nine months ended June 26, September 25, 2026, respectively, on these leases, as compared to $ 39 thousand and $ 78 117 thousand, respectively, for the same periods in 2025.

The components of lease expense were as follows for the six nine months ended June 26, September 25, 2026 (in thousands):

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Note 5: Lease Commitments (continued) 5 changes

2026 (excluding the six months ended June 26, 2026)

The weighted average remaining lease ter m is 2.1 1.9 years. The weighted average discount rate utilized is 6.0 5.9 %. For the quarter and six nine months ended June 26, September 25, 2026, the Company paid $ 0.4 million and $ 0.7 1.1 million, respectively, from operating cash flows for its operating leases.

Future minimum lease commitments under non-cancellable operating leases as of June 26, September 25, 2026, were as follows (in thousands):

2026 (excluding the nine months ended September 25, 2026)

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As of June 26, September 25, 2026, the Company does not have any additional material operating leases that have not yet commenced .

Note 6: Credit Facility 6 changes

As of June 26, 2026, the applicable margin percentage was 1.75 % per annum for th e Secured Overnight Financing Rate ("SOFR"), and 1.0 % per annum, for the base rate. As of June 26, 2026, the interest rate on the Company's outstanding debt was utilizing the SOFR margin percentage. As of June 26, 2026, the interest rate on the Company's outstanding debt was 5.5 %, utilizing the SOFR margin percentage. The interest rate of the commitment fee as of June 26, 2026 was 0.250 %. Interest payments are made monthly .

During the quarter ended September 25, 2026, the Company had a amended credit agreement with Bank of America, N.A. (the "Credit Agreement"), which provided provides for borrowings up to $ 100.0 125.0 million pursuant to a revolving line of credit which had a maturity date of November 7, 2027 August 3, 2031 (the "Existing "Amended Credit Facility").

As of June 26, September 25, 2026, the Company had $ 81.0 86.5 million of outstanding debt, excluding $ 0.1 0.4 million of deferred debt costs, which will be amortized over the remaining life of the Existing Amended Credit Facility. As of December 26, 2025, the Company had $ 76.0 million of outstanding debt, excluding $ 0.2 million of deferred debt costs.

The Company is subject to certain covenants, including total consolidated leverage, fixed cost coverage and liquidity requirements, each as set forth in the Credit Agreement, subject to certain exceptions. As of June 26, September 25, 2026, the Company was in compliance with all covenants.

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The interest rates per annum applicable to loans under the Credit Facility will be, are at the Company's option, equal to either a base rate or a Term SOFR rate, in each case, plus an applicable margin percentage. The applicable margin percentage is determined from time to time under the Amended Credit Agreement based on a consolidated leverage ratio, and ranges from 1.375 % to 2.250 % per annum in the case of Term SOFR advances and from 0.375 % to 1.250 % per annum in the case of base rate advances. The initial applicable margin percentage is 1.625 % per annum in the case of Term SOFR rate advances, and 0.625 % per annum in the case of base rate advances. A commitment fee is also payable on unused commitments of the Credit Facility, and varies between 0.125 % and 0.375 % per annum depending on a consolidated leverage ratio. with the initial level being 0.225 % per annum.

As of September 25, 2026, the applicable margin percentage was 1.625 % per annum for th e Secured Overnight Financing Rate ("SOFR"), and 0.625 % per annum, for the base rate. As of September 25, 2026, the interest rate on the Company's outstanding debt was utilizing the SOFR margin percentage. As of September 25, 2026, the interest rate on the Company's outstanding debt was 5.4 %, utilizing the SOFR margin percentage. The interest rate of the commitment fee as of September 25, 2026 was 0.225 %. Interest payments are made monthly .

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Note 7: Stock Based Compensation 1 change

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As of June 26, September 25, 2026 and June 27, September 26, 2025, the market and service conditions for the first tranche had been met and the service conditions were met and as such, the shares were vested and were included in the Company's basic shares outstanding for the period. The first tranche vested 626,450 shares in September 2025, which included shares that were withheld to satisfy tax obligations. As of December 26, 2025 and June 26, September 25, 2026, the market conditions for the second and third tranche had not been met and the shares had not vested, therefore shares were not included in the Company's basic or dilutive shares outstanding. The stock price award program non-cash stock compensation expense was $ 1.6 1.4 million and $ 2.7 4.2 million for the quarter and six nine months ended June 26, September 25, 2026, respectively. As of June 26, September 25, 2026, there was $ 3.4 2.0 million of total unrecognized non-cash stock based compensation expense which is expected to be recognized over a weighted average period of 1.0 year.

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Note 7: Stock Based Compensation (continued) 1 change

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During the quarter and six nine months ended June 26, September 25, 2026, the Company issued 22,502 294,062 and 464,615 758,677 restricted stock units, respectively, at a weighted average grant date fair value of $ 11.11 10.44 and $ 13.67 12.42 per share, respectively. As of June 26, September 25, 2026, , the Company had 2,256,004 2,440,603 restricted stock units outstanding at a weighted average grant date fair value of $ 23.65 22.05 per share. As of June 26, September 25, 2026 , $ 19.8 18.5 million of total restricted stock unit non-cash stock based compensation expense related to unvested awards and including the stock price award program awards discussed above, had not been recognized and is expected to be recognized over a weighted average period of approximately 2.0 1.9 years.

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Note 8: Shareholders' Equity 2 changes

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On July 30, 2002, the Company announced that its Board of Directors approved the repurchase of the Company's common stock through its share repurchase program. Since the inception of the repurchase plan, the Board of Directors has approved the repurchase of $ 373.8 million of the Company's common stock. As of June 26, September 25, 2026, the Company had affected cumulative purchases under the plan of $ 355.7 357.5 million, leaving $ 18.1 16.3 million available for future purchases.

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During the quarter and six nine months ended June 26, September 25, 2026, the Company repurchased 372 167 thousand shares and 584 751 thousand shares, respectively, on the open market and from members of the Company's Board of Directors at an average price per share of $ 10.56 10.90 and $ 11.81 11.61 , respectively, for a total cost of $ 3.9 1.8 million and $ 6.9 8.7 million, respectively. This includes the Company's repurchase of 7 thousand shares from members of its Board of Directors at an average price per share of $ 15.22 for a total cost of $ 0.1 million during the six nine months ended June 26, September 25, 2026.

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Note 8: Shareholders' Equity (continued) 2 changes

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Shares purchased under the repurchase plan do not include shares withheld to satisfy withholding tax obligations. These withheld shares are never issued and in lieu of issuing the shares, taxes were paid on the employee's behalf. During the quarter and six nine months ended June 26, September 25, 2026, the Company withheld and did not issue 5 59 thousand shares and 125 185 thousand shares, respectively, for a cost of $ 57 633 thousand and $ 1.7 2.4 million, respectively. . During the quarter and six nine months ended June 27, September 26, 2025, the Company withheld and did not issue 3 268 thousand shares and 177 444 thousand shares, respectively, for a cost of $ 88 thousand 5.5 million and $ 5.6 11.1 million, respectively. The shares withheld for taxes are included under issuance of common stock in the accompanying consolidated statements of shareholders' equity.

During the six nine months ended June 26, September 25, 2026, the Company declared two three quarterly dividend dividends to its shareholders for an aggregate of $ 6.0 9.0 million, which were paid in April 2026 and , July 2026 , and October 2026 . These dividends were paid from U.S. domestic sources and are accounted for as a decrease to retained earnings. Subsequent to June 26, September 25, 2026, the Company declared its third fourth quarter dividend in fiscal year 2026 to be paid in October 2026 January 2027 .

Note 9: Transactions with Related Parties 1 change

During the six nine months ended June 26, September 25, 2026 , the Company repurchased 7 thousand shares of its common stock from members of its Board of Directors for $ 0.1 million, or $ 15.22 per share.

Note 11: Segment Information and Geographical Data 1 change

The Company has organized its operating and internal reporting structure to align with its primary market solutions. In accordance with ASC 280, the Company determined it has three operating segments and three reportable segments: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions. Global S&BT includes the results of the Company's strategic business consulting practices; Oracle Solutions includes the results of the Company's Oracle EPM/ERP; and AI Enablement practices; SAP Solutions includes the Company's SAP applications and related SAP service offerings. The SAP Solutions reportable segment is the only segment that contains software-related revenue.

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Note 11: Segment Information and Geographical Data (continued) 11 changes

The tables below set forth information about the Company's operating segments for the quarter and six nine months ended June 26, September 25, 2026 and June 27, September 26, 2025, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands):

Revenue before reimbursements (1)

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Revenue before reimbursements (1)

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Revenue before reimbursements (1)

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Corporate general and administrative expenses (2)

Non-cash stock based compensation expense (3)

Stock price award program compensation expense (3)

Acquisition-related cash compensation (reversal) expense ( 64 (4)

Acquisition-related non-cash stock based compensation (reversal) expense ( 1,541 (4)

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Restructuring costs (5)

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(1) Revenue before reimbursements excludes reimbursable expenses, which are project travel-related expenses passed through to a client with no associated operating margin.

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Note 12: Restructuring Costs 2 changes

During the quarter and six nine months ended June 26, September 25, 2026, the Company incurred restructuring costs of $ 0.5 1.4 million and $ 2.4 3.9 million, respectively, as a result of its continued pivot of its business to Gen AI. The costs were employee related costs, as the Company reduced staff to be commensurate with current market demand and the leverage the Company's Gen AI delivery platforms are expected to have on the Company's service offerings.

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Accrual balance at September 25, 2026

Forward-looking statements 26 changes

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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. 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 are now expanding the use of our AI platforms with XT and AIX across our primary enterprise transformation and software implementation offerings.

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Personnel costs before reimbursable expenses (includes $2,460 $3,209 and $1,871 $5,080 and $4,985 $1,580 and $9,913 $11,493 of non-cash stock based compensation expense in the three months and six nine months ended June 26, September 25, 2026 and June 27, September 26, 2025, respectively)

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Selling, general and administrative costs (includes $1,793 $1,875 and $3,861 $5,737 and $4,736 $4,308 and $9,480 $13,788 of non-cash stock based compensation expense in the three months and six nine months ended June 26, September 25, 2026 and June 27, September 26, 2025, respectively)

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Revenue . We are a global Company with operations in our primary markets located in the United States and Western Europe. 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 currency fluctuations did not have a significant impact on comparisons between the quarter and six nine months ended June 26, September 25, 2026 and the same comparable periods of 2025. In this MD&A, we discuss revenue based on geographical location of engagement team personnel.

Our Company total revenue was $69.3 $69.8 million and $138.1 $207.9 million during the second third quarter and first six nine months of 2026, respectively, as compared to $78.9 $73.1 million and $156.8 $230.0 million in the same periods in 2025, respectively. In the second third quarter and first six nine months of 2026, one customer accounted for 3% and 4% and 2%, respectively, of our Company total revenue. In the second third quarter and first six nine months of 2025, one customer accounted for 7% 5% and 8%, 7%, respectively, of our Company total revenue.

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Oracle Solutions total revenue was $15.5 million and $31.2 million during the second quarter and first six months of 2026, respectively, as compared to $20.8 million and $41.9 million in the same periods of 2025, respectively. Oracle Solutions has stabilized from the completion of a large client engagement which primarily explains the decreases on a year over year comparison.

Global S&BT total revenue was $36.0 $37.1 million and $72.8 $110.0 million during the second third quarter and first six nine months of 2026, respectively, as compared to $44.2 $42.9 million and $87.6 $130.5 million in the same periods of 2025, respectively. Elongated client decision marking still persists, as clients continue to question the underlying ROI value of Gen AI and are also confused by the return of investment of Gen AI first adoption strategies. AI-initiatives.

Oracle Solutions total revenue was $16.1 million and $47.3 million during the third quarter and first nine months of 2026, respectively, as compared to $16.5 million and $58.4 million in the same periods of 2025, respectively. Oracle Solutions has stabilized and is beginning to see the favorable impacts of our AIX platform which is beginning to improve sales and delivery productivity.

SAP Solutions total revenue was $17.8 $16.6 million and $34.1 $50.7 million during the second third quarter and first six nine months of 2026, respectively, as compared to $13.9 $13.7 million and $27.3 $41.0 million in the same periods of 2025, respectively. The increase in revenue during the second third quarter and first six nine months of 2026, as compared to the same periods in 2025, was primarily driven by implementation services that correspond to the increased volume of software sales that are coupled with significant implementation fees. This was primarily due to the increased sales investments we have made with SAP and SAP's success driving S4 HANA Cloud migrations.

Reimbursements as a percentage of Company total revenue were 1% during both the second third quarter and first six nine months of 2026, respectively, as compared to 1% and 2% during both the second third quarter and first six nine months of 2025, respectively. Reimbursements are project travel-related expenses passed through to a client with no associated operating margin.

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Personnel costs before reimbursable expenses decreased 18% 3% and 19%, 14.3%, to $40.6 $41.2 million and $79.1 $120.4 million for the second third quarter and first six nine months of 2026, respectively, as compared to $49.7 $42.4 million and $98.1 $140.5 million in the same periods of 2025, respectively. The decrease in the second third quarter and first six nine months of 2026 was primarily related to the decrease of acquisition related non-cash stock based compensation expense relating to headcount reductions from the LeewayHertz acquisition leverage of our Gen AI delivery platforms and to the a decrease of non-cash stock based compensation expense relating to the stock price award program. In addition, the Company incurred headcount reductions from the leverage of our Gen AI delivery platforms and lower bonus accruals commensurate with performance. Personnel costs as a percentage of total Company total revenue were 59% and 57% 58% during the second third quarter and first six nine months of 2026, respectively, as compared to 63% 58% and 61% during both the second third quarter and first six nine months of 2025, respectively.

Non-cash stock based compensation expense, included in personnel costs before reimbursable expenses, was $2.5 $3.2 million and $1.9 $5.1 million during the second third quarter and first six nine months of 2026, respectively, as compared to $5.0 $1.6 million and $9.9 $11.5 million in the same periods in 2025, respectively. The decrease in the second third quarter is due to the settlement of the acquisition related equity and the decrease in the first six nine months of 2026 was primarily related to a decrease in non-cash stock compensation from the stock price award program issuances (Note 7), and reversals offset by the settlement of the acquisition related non-cash stock compensation expense that were performance-related. equity.

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SG&A costs decreased 17% 11% and 19%, 17%, to $19.5 $18.8 million and $38.0 $56.7 million, for the second third quarter and first six nine months of 2026, respectively, as compared to $23.4 $21.2 million and $46.8 $68.0 million for the same periods in 2025, respectively. The decrease in the costs during the second third quarter and first six nine months of 2026 was primarily due to decreased non-cash stock based compensation from the stock price award program issuances (Note 7). and lower bonus accruals. SG&A costs as a percentage of total Company revenue were 28% and 27% during both the second third quarter and first six nine months of 2026, as compared to 29% and 30% during the same periods in 2025, respectively.

Non-cash stock based compensation expense, included in SG&A, was $1.8 $1.9 million and $3.9 $5.7 million during the second third quarter and first six nine months of 2026, respectively, as compared to $4.7 $4.3 million and $9.5 $13.8 million for the same periods in 2025, respectively. The decrease in the second third quarter and first six nine months of 2026 primarily relates to the non-cash stock compensation expense from the stock price award program issuances (Note 7).

Amortization expense was $299 $297 thousand and $614 $911 thousand for the second third quarter and first six nine months of 2026, respectively, as compared to $231 $311 thousand and $376 $685 thousand for the same periods in 2025, respectively, which was related to the intangible assets acquired in our September 2024 acquisition of LeewayHertz and May 2025 acquisition of Spend Matters.

Restructuring Costs. During the second third quarter and first six nine months of 2026, we incurred restructuring costs of $492 thousand $1.4 million and $2.4 $3.9 million as a result of the continued pivot of our business to Gen AI, respectively. These costs were primarily employee-related costs, as the Company reduced staff to be commensurate with current market demand and the leverage of our Gen AI delivery platforms are expected to have on our service offerings.

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Global S&BT segment contribution was $9.1 $10.8 million and $18.2 $29.0 million during the second third quarter and first six nine months of 2026, respectively, as compared to $13.0 $13.2 million and $25.8 $39.0 million for the same periods in 2025, respectively, primarily due to revenue decreases caused by elongated client decision making that persisted throughout the quarter as mentioned above.

Oracle Solutions segment contribution was $4.2 $5.0 million and $7.8 $12.8 million during the second third quarter and first six nine months of 2026, respectively, as compared to $4.5 $2.7 million and $8.8 $11.5 million for the same periods in 2025, respectively. The decrease increase during the second third quarter and first six nine months of 2026 was primarily due to decreased headcount reductions and the stabilization of revenue as discussed above. partially offset by decreased incentive compensation accruals related to performance.

SAP Solutions segment contribution was $5.6 $5.2 million and $10.6 $15.7 million during the second third quarter and first six nine months of 2026, respectively, as compared to $3.9 $3.7 million and $8.1 $11.8 million for the same periods in 2025, respectively. The increase in segment profit in the second third quarter and first six nine months of 2026, as compared to the same periods in 2025, was primarily due to increased implementation services from increased volume of software sales that are coupled with significant implementation fees. This was primarily due to the increased sales investments we have made with SAP and SAP's success driving S4 HANA Cloud migrations.

Interest Expense, Net. Interest expense, net was $1.2 million and $2.2 $3.4 million during the second third quarter and first six nine months of 2026, respectively, as compared to $0.4 million and $0.6 $1.0 million in the same periods in 2025, respectively. As of June 26, September 25, 2026, we had outstanding debt of $81.0 $86.5 million, excluding debt issue costs. As of June 27, September 26, 2025, we had outstanding debt of $23.0 $44.0 million, excluding debt issue costs.

Income Taxes. During the second third quarter and first six nine months of 2026, we recorded $2.1 $2.8 million and $5.7 $8.5 million of income tax expense, respectively, related to certain federal, foreign and state taxes which reflected an effective tax rate of 32.2% 43.8% and 39.8%, 41.0%, respectively. The increase in the effective tax rate for the first six nine months of the year as compared to the second third quarter 2026 tax rate is primarily due to the vesting fair value for restricted stock unit awards being lower than the grant date fair value for such awards. During the second third quarter and first six nine months of 2025, we recorded $2.6 $2.5 million and $3.6 $6.1 million of income tax expense, respectively, related to certain federal, foreign and state taxes which reflected an effective tax rate of 60.7% 49.3% and 43.0%, 45.3%, respectively. The increase in the effective tax rate rates in both 2026 and 2025 was primarily due to the limitation of executive compensation deductions related to executive compensation, primarily driven by the stock price award program (See Note 7).

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As of June 26, September 25, 2026 and December 26, 2025, we had $14.2 $12.6 million and $18.2 million, respectively, classified as cash on the consolidated balance sheets. We currently believe that available funds (including the cash on hand and funds available for borrowing under our revolving line of credit and cash flows generated by operations will be sufficient to fund our working capital requirements, including debt payments, lease obligations and capital expenditures for at least the next twelve months and beyond. We may decide to raise additional funds in order to fund expansion, to develop new or further enhance products and services, to respond to competitive pressures, or to acquire complementary businesses or technologies. There is no assurance that additional financing would be available when needed or desired. Our cash requirements have not changed materially from those disclosed in Item 7 included in Part II of our Annual Report on Form 10-K for the year ended December 26, 2025.

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Net cash provided by operating activities was $10.1 $11.9 million during the first six nine months of 2026, as compared to $9.8 $21.2 million during the same period in 2025. In 2026, 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 prepaid assets and decreases in accrued liabilities primarily due to payments of the prior year earned incentive compensation liabilities, and payments to vendors and increases in accounts receivable and the timing of payments for income taxes. contract liabilities. In 2025, the net cash provided by operating activities was primarily due to net income adjusted for non-cash items. and increases in contract liabilities, The cash inflows were partially offset by increases in accounts receivable prepaid expenses primarily due to the timing of payments for income taxes and contract assets, decreases in accrued liabilities and other accruals primarily due to payments in the prior year of earned incentive compensation liabilities and the timing of payments for income taxes and to vendors.

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Net cash used in investing activities was $5.0 $8.1 million during the first six nine months of 2026, as compared to $4.2 $6.6 million during the same period in 2025. During both the first six nine months periods of 2026 and 2025, cash flows used in investing activities primarily included investments made to the continued development of our Gen AI delivery platforms.

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Net cash used in financing activities was $9.1 $9.3 million during the first six nine months of 2026, as compared to $11.8 $17.0 million during the same period in 2025. The usage of cash in 2026 primarily related to the repurchase of $8.6 $8.7 million of the Company's common stock and dividend payments of $6.0 $9.0 million, partially offset by a net $5.0 $10.5 million drawdown on our revolving line of credit (the "Credit Facility"). The usage of cash in 2025 primarily related to the repurchase of $16.1 $39.0 million of the Company's common stock and dividend payments of $6.3 $9.6 million, partially offset by the $10.0 a net $31.0 million drawdown on our Credit Facility.

As of June 26, September 25, 2026, we had $81.0 $86.5 million of outstanding borrowings under our Credit Facility, excluding deferred debt costs, leaving us with a capacity of approximately $19.0 $38.5 million. On August 3, 2026, we amended and restated our credit agreement in order to extend the maturity date of the Credit Facility and provide the Company with an additional $25 million in borrowing capacity resulting in aggregate borrowing capacity of up to $125 million. See Note 6, "Credit Facility," to our consolidated financial statements included in this Quarterly Report on Form 10-Q for more information

Market risk 2 changes

As of June 26, September 25, 2026, our exposure to market risk related primarily to changes in interest rates and foreign currency exchange rate risks.

Our exposure to market risk for changes in interest rates relates primarily to the Credit Facility, which is subject to variable interest rates. Under our credit agreement, the interest rates per annum applicable to loans under the Credit Facility was, at our option, equal to a base rate for one-, two-, three- or nine-month interest periods chosen by us in each case, plus an applicable margin percentage. A 100-basis point increase in our interest rate under our Credit Facility would not have had a material impact on our results of operations for the second third quarter and six nine months ended June 26, September 25, 2026.

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Other information 1 change

1 unchanged paragraph

During the three months ended June 26, September 25, 2026, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

Unregistered sales of stock 10 changes

1 unchanged paragraph

Balance as of March 27, 2026

March 28, 2026 to April 24, 2026

May 23, 2026 to June 26, 2026

During the quarter ended June 26, September 25, 2026, the Company repurchased 372 167 thousand shares at an average price of $10.56 $10.90 per share for a total cost of $3.9 $1.8 million. As of June 26, September 25, 2026, the Company had $18.1 $16.3 million of authorization remaining under the repurchase plan.

Balance as of June 26, 2026

June 27, 2026 to July 24, 2026

July 25, 2026 to August 21, 2026

April 25, August 22, 2026 to May 22, September 25, 2026

(1) On July 30, 2002, the Board of Directors approved and announced the repurchase program. As of June 26, September 25, 2026, the Board of Directors had approved a cumulative authorization of $373.8 million with cumulative purchases under the plan of $355.7 $357.5 million, leaving $18.1 $16.3 million available for future purchases as of June 26, September 25, 2026. There is no expiration date on the current authorization.

Shares repurchased during the second third quarter and first six nine months ended June 26, September 25, 2026 under the repurchase plan do not include 5 59 thousand shares and 125 185 thousand shares for a cost of $57 $633 thousand and $1.7 $2.4 million, respectively, that the Company bought back to satisfy employee net vesting obligations.

Exhibits 4 changes

5 unchanged paragraphs

Amendment No. 5 to Registrant's Employee Stock Purchase Plan (incorporated herein by reference to the Registrant's Registration Statement on Form S-8 filed on May 6, 2026).

Fourth Amendment and Restated Credit Agreement, dated August 3, 2026, among The Hackett Group, Inc., the subsidiaries of The Hackett Group, Inc. named on the signature pages thereto, Bank of America, N.A., as administrative agent, and the lenders party thereto (incorporated herein by reference to the Registrant's Form 8-K filed on August 4, 2026).

9 unchanged paragraphs

Date: August 5, 2026

Date: November 4, 2026

2 unchanged paragraphs