Mastech Digital, Inc

Greetings and welcome to the Maztech Digital, Inc. Third Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jenna Lacey, Manager of Legal Affairs for Maztech Digital. Thank you, you may begin.

Thank you, Operator, and welcome to Mass Tech Digital's third quarter 2025 conference call. If you have not yet received a copy of our earnings announcement, it can be obtained from our website at www.masstechdigital.com. With me on the call today are Nirav Patel, Mass Tech Digital's Chief Executive Officer, and Kanan Siddhartharaman, our Chief Financial and Operations Officer. I would like to remind everyone that statements made during this call that are not historical facts are forward-looking statements. These forward-looking statements include our financial growth and liquidity projections, as well as statements about our plans, strategies, intentions, and beliefs concerning the business, cash flows, costs, and the markets in which we operate. Without limiting the foregoing, the words believe, anticipate, plan, expect, and similar expressions are intended to identify certain forward-looking statements. These statements are based on information currently available to us and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from those forward-looking statements, including those listed in the Company's 2024 Annual Report on Form 10-K. filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Additionally, management has elected to provide certain non-GAAP financial measures to supplement our financial results presented on a GAAP basis. Specifically, we will provide non-GAAP net income and non-GAAP diluted earnings per share data, which we believe will provide greater transparency with respect to the key metrics used by management in operating the business. Reconciliations of these non-GAAP financial measures to their comparable GAAP measures are included in our earnings announcements, which can be obtained from our website at www.masstechdigitals.com. As a reminder, we will not be providing guidance during this call, nor will we provide guidance in any subsequent one-on-one meetings or calls. I will now turn the call over to Nirav for his comments.

Thanks, Jenna. Good morning, everyone. We appreciate you joining us for our third quarter earnings call. Let me begin by reaffirming the priorities I had set as I began my tenure as CEO of MassTech Digital earlier this year. Our focus remains clear, delivering long-term sustainable growth, unlocking substantial value from our operating model, and investing in building truly differentiated capabilities to win in the future. A few quarters ago, we initiated a comprehensive review of our long-term strategy That process is now well underway, and we believe it will help us sharpen our priorities while aligning our structure and investments to accelerate our transformation agenda. Our aim is unchanged from my first remarks as CEO, to be the trusted partner that helps enterprises reimagine themselves and transition into AI-first organizations. The business environment continues to evolve as ongoing macroeconomic and geopolitical uncertainties drive a cautious demand environment. Even as interest in modernization and AI adoption continues to grow, we find customers continue to look for a more supportive market environment before accelerating their spend decisions. Amid ongoing market challenges, we remain focused on controlling what we can and positioning the company for long-term growth. To that end, I'm very pleased to announce the launch of our EDGE program, which stands for Efficiency Driving Growth and Expansion, a structural transformation initiative aimed at optimizing our organization and operating model. EDGE focuses on driving higher revenue quality, process simplification and automation, and disciplined spend management to unlock capacity for reinvestment in strategic growth areas. We have seen these actions already yield improved operational efficiency and sharper resource alignment. By channeling these gains into capability building and market expansion, we believe Edge will strengthen our competitive position and fuel sustainable value creation as we become an AI-first organization ourselves. Kannan will discuss the Edge program in greater detail in his remarks. But I'm excited by our early progress, and I'm confident that we have the right strategy in place to build upon our already strong foundation while unlocking new opportunities and maintaining MassTech Digital's position as a leading partner to global 2000 enterprise customers that are transitioning into AI-first organizations. We look forward to providing further updates in the days ahead. We are also particularly proud of the progress we are making in attracting top leadership talent with established track records. These leaders bring in distinguished expertise in their fields, and we are seeing that they are the right catalyst for our growth agenda. Just as important, we believe we are building the leadership foundation that company needs to scale to lead with sharper operating rigor, deeper domain and AI capabilities, and a culture of accountability and customer impact. While the quarter's performance reflects a measured demand environment, a view of where the market has been, our focus remains firmly on the future. We believe the steps we are taking now will strengthen our base, make us more competitive, and set us up for sustainable growth in the years ahead. Turning now to our segment results, in our IT staffing services segment, revenues during the quarter declined 4.4% year over year. Our continued focus on disciplined pricing and emphasis on higher value engagements delivered Mass Tech's record gross margins of 24.8% and all-time high average bill rates for Mass Tech at $86.60, despite billable consultant headcounts reducing by 11.6% year-over-year. While overall client activity continues to trend below prior year levels, This is consistent with broader market conditions. We believe our margin performance and improved bill rates underscore the effectiveness of our execution strategy and operational rigor in a measured demand environment. Our data and analytic service segment revenues for the third quarter declined 15.8% year-over-year, reflecting a challenging comparison against strong results in the second half of 2024. New bookings activity during the quarter remains subdued at $6.1 million, which was a factor of P&L pressures at some of our key accounts and delayed decision-making. We continue to focus on leveraging our basket of offerings across our portfolio of customers. While near-term visibility remains limited, we continue to believe that long-term demand drivers underpinning this segment remain firmly intact. We are focused on aligning our delivery capabilities and go-to-market approach to capture growth opportunities as client spending patterns normalize. As I noted when I assumed this role, growth is only meaningful when it is sustainable and profitable. We aim to continue to drive efficiency, operate with accountability, and ensure every investment and position we take creates lasting value for our customers, employees, and shareholders. With that, I will hand it over to Canon for a deeper dive into our financial performance during the third quarter.