Segment Information and Geographical Data

9 Months Ended

Sep. 26, 2025

Segment Information and Geographical Data

11. Segment Information and Geographical Data

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.

The Company’s chief operating decision maker (“CODM”), its Chief Executive Officer ("CEO"), reviews the financial information presented for purposes of allocating resources and evaluating segment financial performance. The CODM primarily uses revenue before reimbursement generated by the segment, cost of sales, gross margin, selling, general and administrative costs and contribution margin as a measure of profitability for each of its segments as these measures provide a comprehensive view of the segments’ financial performance. The measurement criteria for segment contribution is substantially the same for each reportable segment, excluding any unusual or infrequent items, if any. Unallocated costs include corporate costs related to the administrative functions that are performed in a centralized manner and that are not attributable to a particular segment, depreciation and amortization expense, interest expense, non-cash compensation expense and any non-recurring transactions. Segment information related to assets has been omitted as the CODM does not receive discrete financial information regarding assets at the segment level. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

The tables below set forth information about the Company’s operating segments for the quarter and nine months ended September 26, 2025 and September 27, 2024, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands):

11. Segment Information and Geographical Data (continued)


	Quarter Ended					Nine Months Ended
	September 26,			September 27,		September 26,		September 27,
	2025			2024		2025		2024
Global S&BT:
Revenue before reimbursements*	$	42,398		$	43,252	$	128,651	$	125,068
Cost of sales		21,440			22,781		66,526		67,800
Gross margin		20,958			20,471		62,125		57,268
Selling, general and administrative costs		7,717			6,378		23,111		20,374
Segment contribution		13,241			14,093		39,014		36,894
Oracle Solutions:
Revenue before reimbursements*	$	16,353		$	21,838	$	57,243	$	65,063
Cost of sales		11,751			14,303		39,377		43,220
Gross margin		4,602			7,535		17,866		21,843
Selling, general and administrative costs		1,921			2,014		6,368		5,693
Segment contribution		2,681			5,521		11,498		16,150
SAP Solutions:
Revenue before reimbursements*	$	13,415		$	12,859	$	40,132	$	39,442
Cost of sales		8,183			7,175		23,035		21,341
Gross margin		5,232			5,684		17,097		18,101
Selling, general and administrative costs		1,569			1,986		5,293		6,267
Segment contribution		3,663			3,698		11,804		11,834
Total Company:
Total segment contribution margin		19,585			23,312		62,316		64,878

Items not allocated to segment level:
Corporate general and administrative expenses**		4,292			5,655		15,196		15,745
Non-cash stock based compensation expense***		2,694			2,989		8,272		8,438
Stock price award program compensation expense***		4,768			602		15,053		602
Acquisition-related cash compensation expense		(540	)		41		76		41
Acquisition-related non-cash stock based compensation expense***		(1,574	)		232		1,956		232
Acquisition-related costs		11			53		398		53
Restructuring costs		3,112			-		3,112		-
Legal settlement and related costs		-			-		-		102
Depreciation expense		1,052			940		3,111		2,824
Amortization expense		311			-		685		-
Interest expense, net		438			368		1,006		1,352
Income before taxes	$	5,021		$	12,432	$	13,451	$	35,489

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

**Corporate general and administrative expenses primarily include costs related to business support functions including accounting and finance, human resources, legal, information technology and office administration, as well as any foreign currency gains and losses. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits, which are disaggregated in the above table.

***See Note 7.

11. Segment Information and Geographical Data (continued)

The tables below set forth information on the Company's geographical data. Total revenue, which is primarily based on the country of the contracting entity, was attributed to the following geographical areas (in thousands):


	Quarter Ended				Nine Months Ended
	September 26,		September 27,		September 26,		September 27,
	2025		2024		2025		2024

United States	$	58,077	$	66,214	$	184,785	$	195,098
Europe (U.K., Germany, France, Switzerland and Spain)		8,366		8,484		25,579		25,107
Other (Australia, Canada, India and Uruguay)		6,668		5,079		19,511		14,415
Total revenue	$	73,111	$	79,777	$	229,875	$	234,620

Long-lived assets are attributable to the following geographic areas (in thousands):


	September 26,		December 27,
	2025		2024
Long-lived assets:
United States	$	103,063	$	100,676
Europe (U.K., Germany and Netherlands)		15,566		14,247
Other (Australia, Canada, India and Uruguay)		1,651		608
Total long-lived assets	$	120,280	$	115,531

The domestic long-lived assets above include the LeewayHertz allocation of goodwill of $5.8 million and the LeewayHertz and Spend Matters intangible assets of $4.0 million. See Note 1 for additional information. As of September 26, 2025 and December 27, 2024, foreign assets included $14.9 million and $14.0 million, respectively, of goodwill related to acquisitions, of which $13.9 million and $13.1 million, respectively, were attributed to the U.K.. Goodwill of $5.8 million related to the Company's acquisition of LeewayHertz, is included in the United States and was allocated to the Global S&BT segment.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

HACKETT GROUP, INC. 10-Q