Mastech Digital, Inc. Segments Disclosure
Our reporting segments are: 1) Data and Analytics Services; and 2) IT Staffing Services.
The Data and Analytics Services segment was acquired through the July 13, 2017 acquisition of the services division of Canada-based InfoTrellis, Inc. This segment is a project-based consulting services business with specialized capabilities in data management and analytics. The business is marketed as Mastech InfoTrellis and utilizes a dedicated sales team with deep subject matter expertise. Mastech InfoTrellis has offices in Atlanta, Toronto, and London, and a global delivery center in Chennai, India. Project-based delivery reflects a combination of on-site resources and offshore resources. Assignments are secured on both a time and material and fixed price basis. In October 2020, we acquired AmberLeaf, a Chicago-based customer experience consulting firm. This acquisition expands our capabilities in customer experience strategy and managed services offering for a variety of Cloud-based enterprise application across sales, marketing and customer service organizations.
The IT Staffing Services segment offers staffing services in digital and mainstream technologies and uses digital methods to enhance organizational learning. These services are marketed using a common sales force and delivered via our domestic and global recruitment centers. While the vast majority of our assignments are based on time and materials, we do have the capabilities to deliver our digital learning services on a fixed price basis.
Beginning in the 2026 fiscal year, the Company plans to revise its segment structure to align with changes in how the Chief Operating Decision Maker (“CODM”) will be evaluating operating performance and allocating resources. These changes are driven by the Company’s operating strategy, which aligns the organization around account-centric management, industry-focused leadership, and an integrated approach to Talent and Services offerings.
Under the revised structure, the Company intends to transition from its current reportable segments of Data and Analytics and IT Staffing Services to the newly formed Talent and Services segments. The revised segment structure is expected to be effective for external reporting beginning in the 2026 fiscal year pending finalization of the Company’s analysis under ASC 280. Any changes to the Company’s segment reporting in future periods will include recasting prior period segment information in accordance with ASC 280.
Below are the operating results of our reporting segments:
|
|
Years Ended December 31, |
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|
|
2025 |
|
|
2024 |
|
|
2023 |
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|||
|
|
(Amounts in thousands) |
|
|||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|||
Data and Analytics Services |
|
$ |
33,275 |
|
|
$ |
36,625 |
|
|
$ |
34,358 |
|
IT Staffing Services |
|
|
158,096 |
|
|
|
162,318 |
|
|
|
166,740 |
|
Total revenues |
|
$ |
191,371 |
|
|
$ |
198,943 |
|
|
$ |
201,098 |
|
Cost of Revenues: |
|
|
|
|
|
|
|
|
|
|||
Data and Analytics Services |
|
$ |
17,913 |
|
|
$ |
18,660 |
|
|
$ |
19,411 |
|
IT Staffing Services |
|
|
120,149 |
|
|
|
124,686 |
|
|
|
130,651 |
|
Total cost of revenues |
|
$ |
138,062 |
|
|
$ |
143,346 |
|
|
$ |
150,062 |
|
Gross Profit: |
|
|
|
|
|
|
|
|
|
|||
Data and Analytics Services |
|
$ |
15,362 |
|
|
$ |
17,965 |
|
|
$ |
14,947 |
|
IT Staffing Services |
|
|
37,947 |
|
|
|
37,632 |
|
|
|
36,089 |
|
Total gross profit |
|
$ |
53,309 |
|
|
$ |
55,597 |
|
|
$ |
51,036 |
|
Gross Margin %: |
|
|
|
|
|
|
|
|
|
|||
Data and Analytics Services |
|
|
46.2 |
% |
|
|
49.1 |
% |
|
|
43.5 |
% |
IT Staffing Services |
|
|
24.0 |
% |
|
|
23.2 |
% |
|
|
21.6 |
% |
Total gross margin % (1) |
|
|
27.9 |
% |
|
|
27.9 |
% |
|
|
25.4 |
% |
Sales & Marketing Expenses: |
|
|
|
|
|
|
|
|
|
|||
Data and Analytics Services |
|
$ |
6,804 |
|
|
$ |
7,333 |
|
|
$ |
6,511 |
|
IT Staffing Services |
|
|
7,429 |
|
|
|
9,100 |
|
|
|
8,335 |
|
Total sales & marketing expenses |
|
$ |
14,233 |
|
|
$ |
16,433 |
|
|
$ |
14,846 |
|
Operations Expenses: |
|
|
|
|
|
|
|
|
|
|||
Data and Analytics Services |
|
$ |
590 |
|
|
$ |
685 |
|
|
$ |
1,297 |
|
IT Staffing Services |
|
|
6,974 |
|
|
|
8,742 |
|
|
|
8,596 |
|
Total operations expenses |
|
$ |
7,564 |
|
|
$ |
9,427 |
|
|
$ |
9,893 |
|
General & Administrative Expenses: |
|
|
|
|
|
|
|
|
|
|||
Data and Analytics Services |
|
$ |
8,189 |
|
|
$ |
6,703 |
|
|
$ |
8,946 |
|
IT Staffing Services |
|
|
15,750 |
|
|
|
14,467 |
|
|
|
13,104 |
|
Total general & administrative expenses |
|
$ |
23,939 |
|
|
$ |
21,170 |
|
|
$ |
22,050 |
|
Segment operating income (loss): |
|
|
|
|
|
|
|
|
|
|||
Data and Analytics Services |
|
$ |
(221 |
) |
|
$ |
3,244 |
|
|
$ |
(1,807 |
) |
IT Staffing Services |
|
|
7,794 |
|
|
|
5,323 |
|
|
|
6,054 |
|
Subtotal |
|
|
7,573 |
|
|
|
8,567 |
|
|
|
4,247 |
|
Unallocated Costs: |
|
|
|
|
|
|
|
|
|
|||
Amortization of acquired intangible assets |
|
|
(2,553 |
) |
|
|
(2,693 |
) |
|
|
(2,772 |
) |
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
(5,300 |
) |
Employment-related claim, net of recoveries |
|
|
— |
|
|
|
— |
|
|
|
(3,100 |
) |
Severance expense |
|
|
(3,095 |
) |
|
|
(2,083 |
) |
|
|
(2,350 |
) |
Finance and accounting transition expense |
|
|
(1,924 |
) |
|
|
— |
|
|
|
— |
|
Interest income, FX gains/losses and other, net |
|
|
1,061 |
|
|
|
633 |
|
|
|
244 |
|
Income (loss) before income taxes |
|
$ |
1,062 |
|
|
$ |
4,424 |
|
|
$ |
(9,031 |
) |
(1) Gross margin differences between the supplemental segment and consolidated results primarily reflect non-allocated severance expense of $0.3 million recorded in cost of goods sold during the third quarter of 2025.
Below is a reconciliation of total assets, depreciation and amortization and capital expenditures by segment:
|
|
Total Assets |
|
|
Depreciation & Amortization |
|
|
Capital Expenditures |
|
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(Amounts in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||||||||
Data and Analytics Services |
|
$ |
40,848 |
|
|
$ |
44,053 |
|
|
$ |
45,681 |
|
|
$ |
2,439 |
|
|
$ |
2,572 |
|
|
$ |
2,704 |
|
|
$ |
287 |
|
|
$ |
249 |
|
|
$ |
177 |
|
IT Staffing Services |
|
|
70,992 |
|
|
|
67,431 |
|
|
|
59,546 |
|
|
|
885 |
|
|
|
927 |
|
|
|
1,151 |
|
|
|
89 |
|
|
|
692 |
|
|
|
158 |
|
Total |
|
$ |
111,840 |
|
|
$ |
111,484 |
|
|
$ |
105,227 |
|
|
$ |
3,324 |
|
|
$ |
3,499 |
|
|
$ |
3,855 |
|
|
$ |
376 |
|
|
$ |
941 |
|
|
$ |
335 |
|
Below is geographic information related to our revenues from external customers and fixed assets, net (equipment, enterprise software and leasehold improvements):
|
|
Revenues |
|
|
Equipment, Enterprise |
|
||||||||||||||||||
Amounts in thousands |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
||||||
United States |
|
$ |
189,286 |
|
|
$ |
195,455 |
|
|
$ |
197,246 |
|
|
$ |
599 |
|
|
$ |
851 |
|
|
$ |
791 |
|
Canada |
|
|
556 |
|
|
|
1,041 |
|
|
|
2,474 |
|
|
|
148 |
|
|
|
254 |
|
|
|
332 |
|
India and Other |
|
|
1,529 |
|
|
|
2,447 |
|
|
|
1,378 |
|
|
|
810 |
|
|
|
893 |
|
|
|
790 |
|
Total |
|
$ |
191,371 |
|
|
$ |
198,943 |
|
|
$ |
201,098 |
|
|
$ |
1,557 |
|
|
$ |
1,998 |
|
|
$ |
1,913 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 27, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 30, 2020 | |
| 2018 | Mar 29, 2019 | |
| 2017 | Mar 23, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.