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Mastech Digital Reports 2% Revenue Growth for Q2 2025

In the latest financial report released on August 13, 2025, Mastech Digital, Inc. (NYSE American: MHH), a leader in Digital Transformation IT Services, announced a modest yet significant revenue growth of 2% for the second quarter of 2025. This growth brings total consolidated revenues to $49.1 million, up from $48.3 million in the previous quarter, despite facing various economic challenges.

Financial Performance Highlights

Key indicators of the company's financial health include the following:

• - Consolidated Gross Profits: Increased by 7% compared to Q1 2025, signaling an improvement in the company's profitability levels.
• - Gross Margins: Achieved a rate of 28.1%, a slight decrease from 28.2% in the previous year. However, the improvement of 147 basis points from Q1 indicates operational efficiency.
• - IT Staffing Services: This segment saw a revenue growth of 3%, highlighting a strengthened market position despite overall lower client activity compared to last year.

Furthermore, the Data and Analytics Services segment witnessed a marginal rise in gross margins of 116 basis points, indicating a positive trend in this divisional performance.

Earnings Overview

GAAP diluted earnings per share reached $0.01, reflecting the ongoing economic pressures that have impacted Mastech's profitability. This figure is a decline from $0.12 in Q2 2024, but an increase from a loss of $0.12 in the previous quarter. Non-GAAP diluted earnings rose to $0.15, down from $0.19 in the same quarter last year.

Revenue and Profit Trends

While the revenue numbers for Q2 2025 were lower than the $49.5 million reported for Q2 2024, the steady increase in profits detailed in the balance sheet indicates Mastech’s effective management strategies in place to navigate the challenging market environment.

In deeper analysis, the IT Staffing segment benefited from higher bill rates and improved margins, attributed to disciplined pricing and a sharpened focus on ten key client accounts, particularly in the Banking and Financial Services sector. This strategic client engagement is proving effective in maintaining revenue quality.

Market Conditions and Future Outlook

Despite achieving growth during a period marked by lower client activity, CEO Nirav Patel expressed optimism about the company’s direction. The outlook for Mastech Digital remains focused on stimulating demand for its services amid a cautious macroeconomic climate. Patel remarked on the early signs of stabilization in the market, emphasizing the company's preparations for long-term growth and its commitment to becoming a trusted partner for enterprises transitioning to AI-driven models.

Kannan Sugantharaman, Chief Financial Officer, also underscored the company's solid financial positioning, mentioning that as of June 30, 2025, Mastech held $27.9 million in cash, with no bank debt, and continued access to $22.2 million under its revolving credit facility.

Commitment to Clients and Future Growth

With ongoing efforts to enhance operational efficiencies and client engagements, Mastech Digital appears well-positioned to attract new business and form long-lasting partnerships in the evolving digital landscape. By closely aligning with client needs and recognizing market trends, Mastech is preparing itself to not only weather current challenges but to thrive in the future.

In summary, Mastech Digital's financial performance in Q2 2025 showcases resilience amid economic uncertainty, with increased revenues, strategic focus on client relationships, and operational improvements setting the stage for future growth.