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Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
2.
Revenue from Contracts with Customers

The Company recognizes revenue on time-and-material contracts over time as services are performed and expenses are incurred. Time-and-material contracts typically bill at an agreed-upon hourly rate, plus out-of-pocket expense reimbursement. Out-of-pocket expense reimbursement amounts vary by assignment, but on average represent less than 2% of the total contract revenues. Revenue is earned on a per transaction or labor hour basis, as that amount directly corresponds to the value of the Company’s performance. Revenue recognition is negatively impacted by holidays and consultant vacation and sick days.

The Company recognizes revenue on fixed price contracts over time as services are rendered and uses a cost-based input method to measure progress. Determining a measure of progress requires management to make judgments that affect the timing of revenue recognized. Under the cost-based input method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. The Company has determined that the cost-based input method provides a fair depiction of the transfer of goods or services to the customer. Estimated losses are recognized immediately in the period in which current estimates indicate a loss. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which may be refundable.

The Company’s time-and-material and fixed price revenue streams are recognized over time as the customer receives and consumes the benefits of the Company’s performance as the work is performed.

In certain situations related to client direct hire assignments, where the Company’s fee is contingent upon the hired resources continued employment with the client, revenue is not fully recognized until such employment conditions are satisfied.

We do not sell, lease or otherwise market computer software or hardware, and, essentially, 100% of our revenue is derived from the sale of data and analytics, IT staffing and digital transformation services. We expense sales commissions in the same period in which revenues are realized. These costs are recorded within sales, general and administrative expenses.

Each contract the Company enters into is assessed to determine the promised services to be performed and includes identification of the performance obligations required by the contract. In substantially all of our contracts, we have identified a single performance obligation for each contract either because the promised services are distinct, or the promised services are highly interrelated and interdependent and therefore represent a combined single performance obligation.

Beginning in January 1, 2026, the Company reports its operations through two segments: Services and Data & AI.

The Data & AI segment provides direct client engagements that are managed as services-led accounts. These offerings include data management and analytics, digital transformation consulting, AI and Industry Solutions, staffing to direct customers, data engineering and IT services, and managed services. Engagements are typically project-based and may be structured as time-and-material or fixed-price arrangements and delivered using a combination of on-site and offshore resources.

The Talent segment consists of staffing engagements that provide clients with access to skilled technology professionals across a broad range of digital and mainstream IT disciplines. These engagements include both intermediated arrangements through managed service providers and system integrators, as well as certain direct client staffing relationships that are managed as staffing-only engagements. Substantially all revenue within this segment is recognized over time as services are performed, generally based on hours worked.

 

 

 

The following table depicts the disaggregation of our revenues by contract type and operating segment:

 

 

Three Months Ended
March 31,

 

 

2026

 

 

2025

 

 

(Amounts in thousands)

 

Data and AI Segment

 

 

 

 

 

 

Time-and-material Contracts

 

$

12,446

 

 

$

12,685

 

Fixed-price Contracts

 

 

138

 

 

 

3,312

 

Subtotal Data & AI

 

$

12,584

 

 

$

15,997

 

Talent Segment

 

 

 

 

 

 

Time-and-material Contracts

 

$

28,499

 

 

$

32,320

 

Subtotal Talent

 

$

28,499

 

 

$

32,320

 

Total Revenues

 

$

41,083

 

 

$

48,317

 

 

For the three months ended March 31, 2026, the Company had one client (Fidelity = 24.5%) that exceeded 10% of total revenues. For the three months ended March 31, 2025, the Company had the three clients (Fidelity = 12.9%, CGI = 11.9% and Populus = 11.7%) that each exceeded 10% of total revenues.

The Company’s top ten clients represented approximately 60% and 56% of total revenues for the three months ended March 31, 2026 and 2025, respectively.

The following table presents our revenue from external customers disaggregated by geography, based on the work location of our customers:

 

 

Three Months Ended
March 31,

 

 

 

2026

 

 

2025

 

 

 

(Amounts in thousands)

United States

 

$

40,394

 

 

$

47,752

 

 

Canada

 

 

102

 

 

 

130

 

 

India and Other

 

 

587

 

 

 

435

 

 

Total revenues

 

$

41,083

 

 

$

48,317