What does Mastech Digital do and what are its main business segments?

What is Mastech Digital's gross profit margin?

What factors drove the changes in Mastech Digital's revenue and profit?

What is the market's earnings forecast for Mastech Digital next quarter?

What is the revenue and EPS growth rate for Mastech Digital year over year?

What were the key takeaways from Mastech Digital's earnings call?

Did Mastech Digital beat or miss consensus estimates last quarter?

What were the key takeaways from Mastech Digital’s earnings call?

- **EDGE Program Progress**: 26.1% SG&A reduction, 8.7% non-GAAP margin, and $3.5M non-GAAP net income.
- **Revenue Challenges**: IT Staffing down 4.4% YoY, Data & Analytics down 15.8% YoY, but IT gross margin at record 24.8%.
- **AI-Driven Growth**: Focus on data modernization, consolidation, and AI transformation with early successes in health sciences.
- **Share Buybacks**: $1.5M repurchased in Q3; 214,000 shares remaining under Board authorization.
- **Operational Efficiency**: EDGE driving reinvestment into strategic growth areas with no near-term cost savings targets.

**【Management Opening Remarks】**
- Earnings announcement available on the company’s website.
- Reminder of forward-looking statements and non-GAAP financial measures.
- No guidance provided for the call.

**【CEO Summary Section】**
- **EDGE Program Launch**: A structured initiative to improve operational efficiency, reduce costs, and reinvest in strategic growth areas.
- **Segment Performance**:
  - IT Staffing Services: 4.4% YoY revenue decline, but record gross margin of 24.8% and highest bill rate of $86.60.
  - Data & Analytics Services: 15.8% YoY revenue decline due to challenging comparisons and subdued bookings.
- **Strategic Focus**: Transitioning to an AI-first organization, attracting top talent, and maintaining operational rigor.

**【CFO Financial Commentary】**
- **Q3 2025 Financials**:
  - Total revenue: $48.5M (6.4% YoY decline).
  - GAAP net income: $0.9M ($0.08 EPS) vs. $1.9M ($0.16 EPS) prior year, impacted by $2M transition costs.
  - Non-GAAP net income: $3.5M ($0.29 EPS) vs. $2.8M ($0.23 EPS) prior year.
  - Cash balance: $32.7M; share buybacks: $1.5M (192,000 shares).
- **EDGE Program Impact**:
  - SG&A as % of revenue: 26.1% (down 280bps YoY).
  - Non-GAAP operating margin: 8.7% (up 190bps YoY).
  - Billable consultants: 933 (down 11.6% YoY).
- **Future Investment**: Reinvesting EDGE savings into talent, capabilities, and market expansion.

**【Q&A Highlights】**
- **Buyback Program**: 214,000 shares remaining; plans to continue in Q4.
- **Consultant Numbers**: Q4 billable consultants at 933, down from 947 in Q3.
- **EDGE Savings**: Long-term focus on reinvestment; no specific cost savings targets.
- **AI Strategy**: Data modernization, consolidation, and AI transformation as key growth drivers.
- **Market Outlook**: Soft demand environment but long-term demand intact for Data & Analytics Services.

Mastech Digital, Inc. (MHH) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MHH

MHH fundamentals

You can ask Aime