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Business Segments and Geographic Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Business Segments and Geographic Information
12.
Business Segments and Geographic Information

Our reporting segments are: 1) Data and Analytics Services; and 2) IT Staffing Services.

The Data and Analytics Services segment was acquired through the July 13, 2017, acquisition of the services division of Canada-based InfoTrellis, Inc. This segment is a project-based consulting services business with specialized capabilities in data management and analytics. The business is marketed as “Mastech InfoTrellis” and utilizes a dedicated sales team with deep subject matter expertise. Mastech InfoTrellis has offices in Toronto and London, and a global delivery center in Chennai, India. Project-based delivery reflects a combination of on-site resources and offshore resources. Assignments are secured on both a time and material and fixed price basis. In October 2020, we acquired AmberLeaf, a Chicago-based customer experience consulting firm. This acquisition expanded our capabilities in customer experience strategy and managed services offering for a variety of Cloud-based enterprise application across sales, marketing and customer service organizations.

The IT Staffing Services segment offers staffing services in digital and mainstream technologies, engineering services and uses digital methods to enhance organizational learning. These services are marketed using a common sales force and delivered via our domestic and global recruitment centers. While the vast majority of our assignments are based on time and materials, we do have the capabilities to deliver our digital transformation services on a fixed price basis. Below are the operating results of our reporting segments.

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

(Amounts in thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Data and Analytics Services

 

$

7,910

 

 

$

9,398

 

 

$

25,459

 

 

$

26,341

 

IT Staffing Services

 

 

40,586

 

 

 

42,441

 

 

 

120,451

 

 

 

121,855

 

Total revenues

 

$

48,496

 

 

$

51,839

 

 

$

145,910

 

 

$

148,196

 

Cost of Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Data and Analytics Services

 

$

4,268

 

 

$

4,635

 

 

$

13,987

 

 

$

13,464

 

IT Staffing Services

 

 

30,513

 

 

 

32,433

 

 

 

91,496

 

 

 

93,850

 

Total cost of revenues1

 

$

34,781

 

 

$

37,068

 

 

$

105,483

 

 

$

107,314

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

Data and Analytics Services

 

$

3,642

 

 

$

4,763

 

 

$

11,472

 

 

$

12,877

 

IT Staffing Services

 

 

10,073

 

 

 

10,008

 

 

 

28,955

 

 

 

28,005

 

Total gross profit1

 

$

13,715

 

 

$

14,771

 

 

$

40,427

 

 

$

40,882

 

Gross Margin %:

 

 

 

 

 

 

 

 

 

 

 

 

Data and Analytics Services

 

 

46.0

%

 

 

50.7

%

 

 

45.1

%

 

 

48.9

%

IT Staffing Services

 

 

24.8

%

 

 

23.6

%

 

 

24.0

%

 

 

23.0

%

Total gross margin %1

 

 

28.3

%

 

 

28.5

%

 

 

27.7

%

 

 

27.6

%

Sales & Marketing Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Data and Analytics Services

 

$

1,213

 

 

$

1,722

 

 

$

5,052

 

 

$

6,001

 

IT Staffing Services

 

 

1,505

 

 

 

2,275

 

 

 

6,191

 

 

 

6,672

 

Total sales & marketing expenses

 

$

2,718

 

 

$

3,997

 

 

$

11,243

 

 

$

12,673

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

(Amounts in thousands)

 

Operations Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Data and Analytics Services

 

$

115

 

 

$

167

 

 

$

461

 

 

$

510

 

IT Staffing Services

 

 

1,817

 

 

 

2,275

 

 

 

5,715

 

 

 

6,345

 

Total operations expenses

 

$

1,932

 

 

$

2,442

 

 

$

6,176

 

 

$

6,855

 

General & Administrative Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Data and Analytics Services

 

$

2,000

 

 

$

1,729

 

 

$

5,927

 

 

$

4,931

 

IT Staffing Services

 

 

3,574

 

 

 

3,507

 

 

 

11,788

 

 

 

10,654

 

Total general & administrative expenses

 

$

5,574

 

 

$

5,236

 

 

$

17,715

 

 

$

15,585

 

Segment operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Data and Analytics Services

 

$

313

 

 

$

1,145

 

 

$

31

 

 

$

1,435

 

IT Staffing Services

 

 

3,178

 

 

 

1,951

 

 

 

5,262

 

 

 

4,334

 

Subtotal

 

 

3,491

 

 

 

3,096

 

 

 

5,293

 

 

 

5,769

 

Unallocated Cost:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

$

(650

)

 

$

(657

)

 

$

(1,949

)

 

$

(2,043

)

Finance and accounting transition expense

 

 

(937

)

 

 

—

 

 

 

(1,625

)

 

 

—

 

Severance expense1

 

 

(1,084

)

 

 

—

 

 

 

(2,725

)

 

 

—

 

Interest income (expense), FX, gains (losses)
   and other, net

 

 

415

 

 

 

133

 

 

 

689

 

 

 

373

 

Income (loss) before income taxes

 

$

1,235

 

 

$

2,572

 

 

$

(317

)

 

$

4,099

 

 

(1) Gross margin differences between the supplemental segment and consolidated results primarily reflect non-allocated severance expense of $0.3 million recorded in cost of goods sold during the third quarter of 2025.

 

 

Below is a reconciliation of segment total assets to consolidated total assets:

 

 

September 30,
2025

 

 

December 31,
2024

 

 

(Amounts in thousands)

 

Total assets:

 

 

 

 

 

 

Data and Analytics Services

 

$

40,674

 

 

$

44,053

 

IT Staffing Services

 

 

71,943

 

 

 

67,431

 

Total assets

 

$

112,617

 

 

$

111,484

 

 

Below is geographic information related to our revenues from external customers:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

(Amounts in thousands)

 

United States

 

$

48,078

 

 

$

51,043

 

 

$

144,412

 

 

$

145,674

 

Canada

 

 

112

 

 

 

198

 

 

 

388

 

 

 

800

 

India and Other

 

 

306

 

 

 

598

 

 

 

1,110

 

 

 

1,722

 

Total revenues

 

$

48,496

 

 

$

51,839

 

 

$

145,910

 

 

$

148,196