Segment Information and Geographical Data

6 Months Ended

Jun. 27, 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 six months ended June 27, 2025 and June 28, 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				Six Months Ended
	June 27,		June 28,		June 27,		June 28,
	2025		2024		2025		2024
Global S&BT:
Revenue before reimbursements*	$	43,611	$	41,562	$	86,253	$	81,815
Cost of sales		22,760		21,733	$	45,086		45,017
Gross margin		20,851		19,829		41,167		36,798
Selling, general and administrative costs		7,863		7,079	$	15,395		13,996
Segment contribution		12,988		12,750		25,772		22,802
Oracle Solutions:
Revenue before reimbursements*	$	20,494	$	22,157		40,890	$	43,226
Cost of sales		13,931		14,919		27,626		28,917
Gross margin		6,563		7,238		13,264		14,309
Selling, general and administrative costs		2,112		1,870		4,447		3,679
Segment contribution		4,451		5,368		8,817		10,630
SAP Solutions:
Revenue before reimbursements*	$	13,524	$	12,177		26,717	$	26,582
Cost of sales		7,713		7,093		14,851		14,166
Gross margin		5,811		5,084		11,866		12,416
Selling, general and administrative costs		1,919		1,832	$	3,723		4,281
Segment contribution		3,892		3,252		8,143		8,135
Total Company:
Total segment contribution margin		21,331		21,370		42,732		41,567
Items not allocated to segment level:
Corporate general and administrative expenses**		5,248		5,063		10,902		10,092
Non-cash stock based compensation expense***		2,814		2,850		5,579		5,449
Stock price award program compensation expense***		5,142		-		10,285		-
Acquisition-related cash compensation expense		308		-		616		-
Acquisition-related non-cash stock based compensation expense***		1,765		-		3,530		-
Acquisition-related costs		194		-		387		-
Legal settlement and related costs		-		-		-		102
Depreciation expense		1,034		941		2,059		1,883
Amortization expense		231		-		376		-
Interest expense, net		366		512		568		984
Income before taxes	$	4,229	$	12,004	$	8,430	$	23,057

*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				Six Months Ended
	June 27,		June 28,		June 27,		June 28,
	2025		2024		2025		2024
United States	$	62,697	$	64,133	$	126,708	$	128,884
Europe (U.K., Germany, France, Switzerland and Spain)		8,858		8,630		17,213		16,623
Other (Australia, Canada, India and Uruguay)		7,344		4,893		12,843		9,336
Total revenue	$	78,899	$	77,656	$	156,764	$	154,843

Long-lived assets are attributable to the following geographic areas (in thousands):

	June 27,		December 27,
	2025		2024
Long-lived assets:
United States	$	103,268	$	100,676
Europe (U.K., Germany and Netherlands)		15,798		14,247
Other (Australia, Canada, India and Uruguay)		1,243		608
Total long-lived assets	$	120,309	$	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 June 27, 2025 and December 27, 2024, foreign assets included $15.3 million and $14.0 million, respectively, of goodwill related to acquisitions, of which $14.3 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.