The Hackett Group, Inc. (HCKT) will repurchase 2 million shares of its common stock, a total of approximately $40 million, following the expiration of a modified Dutch auction tender offer on December 4, 2025. The offer, which set a purchase price of $20.00 per share, was oversubscribed, with 2 million shares tendered at or below the purchase price. The company will pay the full $40 million to acquire the shares, reducing the number of shares outstanding and returning capital to shareholders.
The decision to execute the repurchase comes amid a broader strategic shift toward generative artificial intelligence (Gen AI). In its Q3 2025 earnings report, Hackett disclosed that revenue fell 7% year‑over‑year to $72.2 million, and adjusted earnings per share missed analyst expectations by $0.06, coming in at $0.37 versus the consensus of $0.43. The miss was driven by a $3.1 million restructuring charge aimed at aligning the company’s cost base with its Gen AI initiatives, as well as a modest decline in revenue from legacy software services. The company’s management highlighted that the Gen AI investments—such as the acquisitions of Spend Matters and LeewayHertz—are expected to generate higher‑margin revenue streams in the coming years.
The share‑repurchase program is part of an expanded buyback authorization that already saw the company repurchase 1.1 million shares for $22.9 million during Q3 2025. By completing the $40 million tender offer, Hackett is signaling confidence in its cash position and its ability to fund strategic initiatives without diluting shareholder value. The repurchase also aligns with the company’s goal of maintaining a flexible capital structure while pursuing growth in high‑margin AI services.
Management emphasized that the repurchase will not impede the company’s ability to invest in Gen AI. CEO Ted A. Fernandez noted that “the capital we are returning to shareholders is part of a disciplined approach that balances shareholder returns with the need to fund transformative technology investments.” The company’s guidance for the next quarter remains unchanged, with expectations of continued revenue growth in the AI segment offset by short‑term restructuring costs.
The market reaction to the Q3 2025 earnings miss was a modest decline in after‑hours trading, reflecting investor sensitivity to both revenue and earnings shortfalls. Analysts cited the restructuring charge and the slower-than‑expected revenue growth as key factors behind the miss, while also noting the company’s strong position in the Gen AI market as a positive long‑term driver.
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