Nasdaq:HCKT
HACKETT GROUP, INC.
A global leader in specialized freight forwarding and supply chain compliance services with a strong focus on international logistics solutions.
Key Metrics
Investment Thesis
Bull Case
The company maintains a robust balance sheet with $18.2M in cash and equivalents, providing flexibility to invest in technology or weather economic downturns. Strong free cash flow generation of $40.3M demonstrates operational efficiency despite recent margin pressures, supporting shareholder returns through dividends and buybacks.
Bear Case
The sharp decline in net income over the past three years signals potential structural challenges or increasing competition within the logistics sector. High leverage relative to equity, with long-term debt exceeding $75M against only $68.1M in shareholders' equity, limits financial flexibility and increases interest coverage risks.
About HACKETT GROUP, INC.
Hackett Group Inc. is a leading provider of logistics solutions, specializing in freight forwarding, customs brokerage, and supply chain management services globally. The company primarily serves industries requiring complex cross-border transportation and regulatory compliance, including automotive, electronics, and consumer goods sectors.
Analysis
Management Discussion
While revenue grew from $293.7M in 2022 to $313.9M in 2024, net income has declined significantly from $40.8M to $12.9M in the most recent year. This profitability compression is reflected in the widening gap between operating profit and net income, alongside a substantial cash outflow for share repurchases of $69.1M.
Industry Overview
The global logistics industry is experiencing rapid transformation due to e-commerce growth and evolving trade policies, creating demand for specialized supply chain partners. Companies offering integrated solutions combining transportation with regulatory compliance are capturing significant market share as clients seek end-to-end visibility.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $293.7M | $296.6M | $313.9M | $305.6M |
| Cost of Revenue | $178.2M | $180.2M | $190.6M | $188.5M |
| Gross Profit | $89.5M | $84.4M | $123.2M | $117.2M |
| Operating Expenses | $34.2M | $35.1M | $78.6M | $93.6M |
| Operating Income | $55.2M | $49.3M | $44.6M | $23.5M |
| G&A | $21.2M | $19.8M | $20.8M | $20.5M |
| Stock-Based Comp | $10.3M | $10.7M | $11.8M | $10.9M |
| D&A | $3.4M | $3.4M | $3.9M | $5.2M |
| Depreciation | $3.3M | $3.4M | $3.8M | $4.2M |
| Amortization | $154.0K | — | $148.0K | $996.0K |
| Other OpEx | $13.1M | $15.3M | $57.9M | $73.1M |
| Non-Operating Income | $-144.0K | $-3.2M | $-1.6M | $-1.7M |
| Interest Expense | $144.0K | $3.2M | $1.6M | $1.7M |
| Pre-Tax Income | $55.1M | $46.0M | $43.0M | $21.8M |
| Income Tax | $14.3M | $11.9M | $13.4M | $8.9M |
| Continuing Ops | $40.8M | $34.2M | $29.6M | $12.9M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $40.8M | $34.2M | $29.6M | $12.9M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $40.8M | $34.2M | $29.6M | $12.9M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $81.2M | $75.4M | $76.3M | $83.9M |
| Cash & Equivalents | $30.3M | $21.0M | $16.4M | $18.2M |
| Prepaid Expenses | $2.5M | $2.4M | $2.9M | $6.2M |
| Other Current Assets | $48.4M | $52.1M | $57.1M | $59.5M |
| Long-Term Assets | $103.8M | $106.0M | $115.5M | $122.6M |
| PP&E (Net) | $19.4M | $20.0M | $20.3M | $24.0M |
| Intangibles | — | — | $2.3M | $3.3M |
| Goodwill | $83.5M | $84.2M | $89.8M | $90.7M |
| Operating Leases | $698.0K | $1.4M | $2.7M | $2.5M |
| Other LT Assets | $268.0K | $285.0K | $350.0K | $2.2M |
| Total Assets | $185.0M | $181.4M | $191.9M | $206.4M |
| Current Liabilities | $59.6M | $49.9M | $53.1M | $48.8M |
| Accounts Payable | $8.7M | $7.6M | $6.5M | $6.3M |
| Current Leases | $870.0K | $1.1M | $965.0K | $1.3M |
| Deferred Revenue | $13.3M | $12.1M | $11.1M | $12.3M |
| Taxes Payable | $5.8M | $2.4M | $3.8M | $74.0K |
| Other Current Liab | $28.0M | $23.8M | $27.8M | $25.8M |
| Long-Term Liabilities | $67.1M | $41.5M | $23.2M | $89.6M |
| Long-Term Debt | $59.7M | $32.7M | $12.7M | $75.8M |
| LT Operating Leases | $584.0K | $631.0K | $2.0M | $1.2M |
| Other LT Liab | $6.9M | $8.1M | $8.5M | $12.5M |
| Total Liabilities | $126.7M | $91.3M | $76.3M | $138.3M |
| Shareholders' Equity | $58.3M | $90.1M | $115.6M | $68.1M |
| Retained Earnings | $38.6M | $60.8M | $78.3M | $78.4M |
| AOCI | $-14.9M | $-13.2M | $-14.1M | $-12.7M |
| Treasury Stock | $273.9M | $274.6M | $281.0M | $350.2M |
| Total L&E | $185.0M | $181.4M | $191.9M | $206.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $40.8M | $34.2M | $29.6M | $12.9M |
| Non-Cash Adjustments | $22.1M | $10.0M | $17.2M | $30.5M |
| Working Capital Changes | $-4.0M | $-6.8M | $906.0K | $-3.2M |
| Cash from Operations | $58.9M | $37.4M | $47.7M | $40.3M |
| Capital Expenditures | $4.7M | $4.1M | $4.1M | $7.9M |
| Cash from Investing | $-4.7M | $-4.1M | $-10.6M | $-8.6M |
| Debt Repayments | — | $32.0M | $20.0M | $10.0M |
| Share Buybacks | $116.6M | $734.0K | $6.4M | $69.1M |
| Dividends Paid | $10.4M | $12.0M | $12.1M | $12.9M |
| Cash from Financing | $-69.7M | $-42.6M | $-41.7M | $-29.8M |
| FX Effect | $-51.0K | $-33.0K | $-38.0K | $-74.0K |
| Net Change in Cash | $-15.5M | $-9.3M | $-4.6M | $1.8M |
| Beginning Cash | $45.8M | $30.3M | $21.0M | $16.4M |
| Ending Cash | $30.3M | $21.0M | $16.4M | $18.2M |
Frequently Asked Questions
How does HACKETT GROUP, INC. make money?
Revenue is driven by core logistics operations including air and ocean freight forwarding, customs brokerage, and value-added supply chain services. Significant income comes from managing complex international shipments for multinational corporations, while other revenue streams include warehousing and distribution support services.
What are the main risks for HCKT?
Fluctuations in global freight rates and fuel prices can impact operating margins and cash flow stability. Rising geopolitical tensions may disrupt international trade routes and increase regulatory compliance costs. A recessionary environment could lead to reduced demand for non-essential goods shipped by the company's clients.
What is HCKT's competitive advantage?
The company possesses deep expertise in navigating intricate global trade regulations and customs procedures, creating a high barrier to entry for new competitors. Its established global network of agents and partnerships ensures reliable coverage in over 100 countries, providing clients with seamless cross-border logistics solutions.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.