Hackett Group (HCKT) risk factors, FY2025 10-K

Hackett Group's FY2025 10-K, filed Feb 27, 2026, lists 26 risk factors in 3 groups. Against the prior year's 26: 3 new, 3 dropped, 4 substantially reworded.

Open HCKT in Gloom →
Hackett Group's chart, financials and news, free in your browser.Open HCKT in Gloom →
Risk factors listed
263 groups
New this year
3vs 26 last year
Dropped
3since the prior 10-K
Substantially reworded
4of those kept
Section length
5k wordsItem 1A

What the changes say

  • The company added specific risks around artificial intelligence regulations and international trade tariffs.
  • Macroeconomic and IT security risks were updated to include geopolitical conflicts and ransomware details.

What changed since the prior 10-K

New

  • NewBusiness, Market and Strategy Risks

    currency exchange rate fluctuations

    Currency exchange rate fluctuations and pandemics have adversely affected and could continue to impact our operating results.

  • NewOperational Risks

    Changes to trade regulation, quotas, duties or tariffs, caused by the changing U.S. and geopolitical environments or otherwise, may materially adversely affect customer demand for our services

    New U.S. tariffs and international trade regulations on imported goods could reduce customer demand and trigger retaliatory sanctions.

  • NewLegal, Regulatory and Compliance Risks

    Our business is subject to evolving, complex and at times inconsistent regulations regarding artificial intelligence (AI)

    Evolving and inconsistent multinational legal regimes regarding artificial intelligence and data privacy could increase compliance costs and cause reputational harm.

Dropped

  • DroppedBusiness, Market and Strategy Risks

    Our results of operations could be negatively affected by global and regional economic conditions

  • DroppedOperational Risks

    comply 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

  • DroppedOperational Risks

    A breach of our information technology and security systems could materially adversely affect our business

    Global economic downturns reducing client demand for consulting services.

Reworded

  • 54% rewrittenBusiness, Market and Strategy Risks

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

    Added risks regarding responsible AI use programs and removed specific cost references for the evolving regulatory landscape.

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

  • 51% rewrittenBusiness, Market and Strategy Risks

    Our results of operations have been adversely affected and could in the future be materially impacted by macroeconomic conditions on our business

    Added geopolitical disruption risks from conflicts between Russia and Ukraine, in the Middle East, and other geographic locations.

  • 48% rewrittenBusiness, Market and Strategy Risks

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

    Updated strategy transition language to state belief in the Gen AI platform value creation and added business and reputation impacts.

  • 38% rewrittenOperational Risks

    We rely on information technology and security systems and any damage, interruption, compromise or breach of our information technology and security systems or data could disrupt and harm our business

    Refined IT security risk phrasing around accidental or willful security breaches and unauthorized access to systems.

    Was: We 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

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 transition48% rewritten
  2. 02We may not be successful in our AI initiatives, which could adversely affect our business, reputation, or financial results54% rewritten
  3. 03Our results of operations have been adversely affected and could in the future be materially impacted by macroeconomic conditions on our business51% rewritten
  4. 04currency exchange rate fluctuationsNew
  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, compromise or breach of our information technology and security systems or data could disrupt and harm our business38% rewritten
  6. 21We earn revenue, incur costs and maintain cash balances in multiple currencies, and currency fluctuations could adversely affect our financial results
  7. 22Changes to trade regulation, quotas, duties or tariffs, caused by the changing U.S. and geopolitical environments or otherwise, may materially adversely affect customer demand for our servicesNew

Legal, Regulatory and Compliance Risks

  1. 23Our corporate governance provisions may deter a financially attractive takeover attempt
  2. 24If we are unable to protect our IP rights or infringe on the IP rights of third parties, our business may be harmed
  3. 25Data privacy and information security may require significant resources and presents certain risks
  4. 26Our business is subject to evolving, complex and at times inconsistent regulations regarding artificial intelligence (AI)New

Other Hackett Group 10-Ks

  • FY2024 10-K risk factors
    26 risks

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

    Filed Feb 28, 2025

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.