Revenue: As of FY2025 Q3, the actual value is USD 48.5 M, missing the estimate of USD 49.47 M.EPS: As of FY2025 Q3, the actual value is USD 0.08, beating the estimate of USD 0.055.EBIT: As of FY2025 Q3, the actual value is USD 969 K.<h3>Data and Analytics Services Segment</h3><ul><li>Revenue: $7.9 million for the three months ended September 30, 2025, compared to $9.4 million for the same period in 2024, reflecting a 16% decline.</li><li>Gross Margin: 46.0% for the three months ended September 30, 2025, down from 50.7% in 2024, primarily due to lower utilization rates.</li><li>Operating Income: $313,000 for the three months ended September 30, 2025, compared to $1.1 million in 2024.</li></ul><h3>IT Staffing Services Segment</h3><ul><li>Revenue: $40.6 million for the three months ended September 30, 2025, compared to $42.4 million in 2024, reflecting a 4% decline.</li><li>Gross Margin: 24.8% for the three months ended September 30, 2025, up from 23.6% in 2024, due to higher quality placements and better pricing.</li><li>Operating Income: $3.2 million for the three months ended September 30, 2025, compared to $1.9 million in 2024.</li></ul><h3>Cash Flow</h3><ul><li>Operating Cash Flow: $6.8 million for the nine months ended September 30, 2025, compared to $3.2 million in 2024, driven by a decrease in operating working capital levels.</li><li>Free Cash Flow: Not explicitly stated, but net cash flows from operating activities were positive at $6.8 million.</li></ul><h3>Future Outlook and Strategy</h3><ul><li>Core Business Focus: The company is focusing on aligning its organizational structure with long-term growth objectives, including transitioning finance and accounting functions to India, which is expected to save approximately $1.2 million annually post-transition.</li><li>Non-Core Business: The company recorded $1.1 million in severance charges to streamline leadership responsibilities and enhance operational efficiency.</li></ul><h3>Outlook</h3><ul><li>The company anticipates continued economic uncertainty and conservative client spending behavior, impacting demand for services. However, it remains focused on optimizing its structure for scalability and efficiency.</li></ul>

Mastech Digital | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 48.5 M