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Segment Information and Geographical Data
 9 Months Ended
Sep. 26, 2025
Segment Reporting [Abstract]  
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.