Shares of Hackett Group (HCKT) tumbled 13.26% in after-hours trading on Tuesday, following the release of the company's second-quarter 2025 results and third-quarter outlook. The significant drop suggests investors' disappointment with the company's forward guidance, despite meeting expectations for Q2.

Hackett Group reported Q2 adjusted earnings per share of $0.38, in line with analysts' expectations. Revenue for the quarter came in at $78.9 million, exceeding the company's previous guidance. However, the outlook for Q3 2025 appears to have spooked investors. The company estimates Q3 revenue before reimbursements to be between $73.0 million and $74.5 million, with adjusted EPS projected at $0.36 to $0.38, potentially indicating a slowdown in growth.

While the company highlighted its aggressive investments in generative AI platforms and the accelerated release of AI XPLR V4, which have attracted clients and partners, the market seems focused on near-term challenges. The Q2 GAAP net income was impacted by $5.1 million in non-cash compensation from a stock price award program and $2.5 million in acquisition-related expenses. These factors, combined with the cautious Q3 outlook, likely contributed to the sharp after-hours decline, overshadowing positive elements such as the company's $4.4 million share repurchase and increased buyback authorization to $30 million.