Hackett Group (HCKT) risk factors, FY2024 10-K

Hackett Group's FY2024 10-K, filed Feb 28, 2025, lists 26 risk factors in 3 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
263 groups
Section length
5k wordsItem 1A

Hackett Group's biggest risks in the FY2024 10-K

  • The company's risk profile is heavily dominated by its strategic transition to a Gen AI consulting firm and artificial intelligence initiatives.

The risks most specific to Hackett Group

  • Business, Market and Strategy Risks

    We may not be able to successfully execute on our strategy transition

    The company may fail to successfully execute its strategy to transition into a global IP platform-based Gen AI strategic consulting firm.

  • Business, Market and Strategy Risks

    We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results

    AI initiatives present new risks, significant competition, and an evolving regulatory landscape that could adversely affect business results.

  • Business, Market and Strategy Risks

    We depend heavily on a limited number of clients

    The company depends heavily on a limited number of clients, with the ten largest accounting for 31% of aggregate revenue in 2024.

  • Business, Market and Strategy Risks

    We could lose money on our contracts

    The company could lose money on capped or fixed-price contracts due to difficulties in accurately estimating cost, scope, and duration.

  • Business, Market and Strategy Risks

    We may lose large clients or may not be able to secure targeted follow-on work or achieve expected client retention rates

    Client engagements are generally short-term, and most clients can cancel contracts with 30 days' notice without penalty.

  • Operational Risks

    We have risks associated with potential acquisitions or investments

    The company faces risks associated with potential future acquisitions, including high integration expenses and operational problems.

  • Operational Risks

    We may not be able to hire, train, motivate, retain and manage professional staff

    Intense competition for skilled professional staff could hinder the company's ability to complete existing engagements and bid for new ones.

  • Operational Risks

    We earn revenue, incur costs and maintain cash balances in multiple currencies, and currency fluctuations could adversely affect our financial results

    International operations expose the company to currency fluctuations, primarily in the British Pound and the Euro.

All 26 risk factors

Headings as the filing states them, in filing order.

Business, Market and Strategy Risks

  1. 01We may not be able to successfully execute on our strategy transition
  2. 02We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results
  3. 03Our results of operations could be negatively affected by global and regional economic conditions
  4. 04Our results of operations have been adversely affected and could in the future be materially impacted by macroeconomic conditions on our business
  5. 05Our clients, and therefore our business and revenues, are sensitive to negative changes in general economic conditions and business confidence arising from pandemics
  6. 06Our quarterly operating results may vary
  7. 07global economic conditions
  8. 08If we are unable to maintain our reputation and expand our brand name recognition, we may have difficulty attracting new business and retaining current clients and employees
  9. 09We depend heavily on a limited number of clients
  10. 10Our markets are highly competitive
  11. 11We could lose money on our contracts
  12. 12Lack of detailed written contracts could impair our ability to recognize revenue for services performed, collect fees, protect our IP and protect ourselves from liability to others
  13. 13We may lose large clients or may not be able to secure targeted follow-on work or achieve expected client retention rates
  14. 14The market price of our common stock may fluctuate widely
  15. 15current market volatility

Operational Risks

  1. 16We have risks associated with potential acquisitions or investments
  2. 17operating in new or unfamiliar geographies
  3. 18Difficulties in integrating businesses we acquire in the future may demand time and attention from our senior management
  4. 19We may not be able to hire, train, motivate, retain and manage professional staff
  5. 20We rely on information technology and security systems and any damage, interruption or compromise of our information technology and security systems or data could disrupt and harm our business
  6. 21comply with financial reporting requirements and harm our reputation and market position, especially given that we handle sensitive customer information. Any of the foregoing matters could harm our operating results and financial condition
  7. 22A breach of our information technology and security systems could materially adversely affect our business
  8. 23We earn revenue, incur costs and maintain cash balances in multiple currencies, and currency fluctuations could adversely affect our financial results

Legal, Regulatory and Compliance Risks

  1. 24Our corporate governance provisions may deter a financially attractive takeover attempt
  2. 25If we are unable to protect our IP rights or infringe on the IP rights of third parties, our business may be harmed
  3. 26Data privacy and information security may require significant resources and presents certain risks

Other Hackett Group 10-Ks

  • FY2025 10-K risk factors
    26 risks3 new3 dropped4 reworded

    The company added specific risks around artificial intelligence regulations and international trade tariffs.

    Filed Feb 27, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.