Core Insights - Mastech Digital, Inc. reported a 6% increase in consolidated gross profits for the first quarter of 2025, reflecting resilience in a challenging demand environment [1][3]. Financial Performance - Revenues for Q1 2025 reached $48.3 million, up from $46.8 million in Q1 2024, marking a 3% increase [3][7]. - Gross profits for Q1 2025 were $12.9 million, compared to $12.1 million in Q1 2024, with gross margins improving to 26.7% from 25.9% [3][7]. - The GAAP net loss for Q1 2025 was ($1.4 million) or ($0.12) per diluted share, compared to a net loss of ($161,000) or ($0.01) per diluted share in Q1 2024 [3][7]. - Non-GAAP net income for Q1 2025 was $0.8 million, consistent with the same period in 2024, translating to $0.06 per diluted share [3][7]. Segment Performance - The Data and Analytics Services segment generated revenues of $9.0 million, an 11% increase from $8.1 million in Q1 2024 [7]. - The IT Staffing Services segment saw a 2% revenue increase in Q1 2025 compared to the same quarter in 2024 [7]. - Order bookings for the Data and Analytics Services segment totaled $11.7 million, while demand for IT Staffing Services was lower than the previous year due to market uncertainties [4][5]. Management Commentary - The CEO highlighted the challenging demand environment but expressed cautious optimism, noting year-over-year growth in both business units [5]. - The CFO reported a cash balance of $24.7 million as of March 31, 2025, with no bank debt and $23.7 million available under the revolving credit facility [5]. Balance Sheet Overview - As of March 31, 2025, total assets were $110.1 million, with total liabilities at $23.1 million, resulting in shareholders' equity of $86.9 million [15].
Mastech Digital Reports First Quarter 2025 Revenue Growth of 3%