Mastech Digital, Inc. announced its financial results for the first quarter ended March 31, 2025, with revenues totaling $48.3 million. This represents a 3% increase compared to $46.8 million in the corresponding quarter of 2024, and consolidated gross profits increased by 6% to $12.9 million.
Despite revenue growth, the company reported a GAAP net loss of ($1.4 million), or ($0.12) per diluted share, for Q1 2025, compared to a net loss of ($161,000), or ($0.01) per diluted share, in Q1 2024. This was primarily due to a significant increase in Selling, General and Administrative (SG&A) expenses, which rose to $14.7 million from $12.5 million in the prior year.
The Data and Analytics Services segment continued its strong performance with 11% year-over-year revenue growth, reaching $8.96 million, and order bookings of $11.7 million. However, the IT Staffing Services segment experienced muted demand, with its billable consultant base declining sequentially from 1008 to 991, although average bill rates increased to $84.97 per hour.
Management noted a challenging demand environment with cautious client spending due to market uncertainties. The company also announced a long-term cost-cutting plan to transition finance and accounting functions to India, projected to yield approximately $1.2 million in annual cost savings post-transition, with an estimated $0.5 million to $0.75 million in additional costs and $1.3 million in severance expense during 2025.
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