Mastech Digital, Inc

Good day and thank you for standing by. Welcome to the Mass Tech Digital Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jenna Lacy, Manager of Legal Affairs for Mass Tech Digital. Please go ahead.

Thank you, Operator, and welcome to Mass Tech Digital's fourth quarter and full year 2025 conference call. If you have not yet received a copy of our earnings announcement, it can be obtained from our website, at www.mastechdigitals.com. With me on the call today are Nirav Patel, Mastech Digital's Chief Executive Officer, and Kanan Sugandharaman, 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 believes, anticipates, plans, expects, 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 these 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 announcement, which can be obtained from our website at www.masstechdigital.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. Thank you for joining us today as we review our fourth quarter and full year 2025 results. When I started 2025 as CEO, I set three transformation priorities, mobilizing our leadership team, establishing clarity on where we are headed, and moving our organization towards that direction. We believe we have made meaningful progress across each of these priorities. The market backdrop remained challenging throughout 2025. Clients remained cautious with their technology budgets while pushing their modernization agenda as best as they could through prudent discussionary spending. Despite this environment and the revenue pressures that accompanied it, we delivered stable margins in Q4 and the full year. We believe this outcome reflects deliberate choices around stronger pricing discipline, tighter operational controls, and a focus on revenue quality. Beyond financial discipline, we believe we also took meaningful strides in establishing the foundational layer for our core capabilities. We expanded our data platform build and scale up, moving our relationship with GCP and Snowflake to the next level, alongside our established Informatica partnership that we announced earlier in the year. We also established our industry solutions practice where we are building AI-powered industry-led workflows as we help companies reimagine themselves in an AI-first world, whether they are accelerating with AI, transforming with AI, or reimagining with AI. Now, let me provide you a brief summary of our segment performance. In our IT staffing services segment, revenues during the fourth quarter of 2025 declined 7% year-over-year, while headcount fell 16.7%, underscoring our focus on higher-value work and improved revenue quality. Kannan will provide more color on this in his remarks. Despite these volume pressures, we believe our business continues to perform well operationally, even with the seasonal impact we typically face in Q4 from the holiday season. We achieved our highest ever average build rates at $87.32, reflecting our disciplined approach to pricing and our emphasis on higher value engagements. And we are increasingly positioning our staffing consultants, not just as capacity, but as enablers of our clients' AI modernization journey. In our data and analytics services segment, revenues for the fourth quarter of 2025 declined 24% year over year, largely due to backlog reversal from some of our 2024 engagements and reflecting a challenging comparison against the results in the second half of last year. However, we saw strong bookings activity during the fourth quarter of 2025, up nearly 37% over the same period last year, driven by strong renewals, which we believe reflects our customers' confidence in our ability to continue delivering value for them. We believe the market is at a crossroad. We are seeing traditional business models being disrupted by AI, and this disruption is accelerating as leading AI hyperscalers like OpenAI and Anthropic become more enterprise-focused. To survive and thrive in this environment, we believe companies with strong fundamentals and forward-leaning leadership that can quickly pivot to the new, will build a more sustainable moat over the long run. There is an open canvas to invest in, and we intend to position ourselves to capture that demand as it materializes. 2025 was a foundational year. As we look ahead, we believe 2026 will be a year of execution. We are seeing the strategic actions we took last year, putting us in a position of strength as we implement our vision to build an AI-first services company. We have three clear priorities for 2026 to deliver long-term sustainable growth, unlock substantial value for our customers, and invest in building truly differentiated capabilities to win in the future. We believe we are entering 2026 with clarity on our direction, conviction in our strategy, and confidence in our ability to execute and win in the market. As I've said from day one, growth is only meaningful when it is sustainable and profitable. We intend to drive efficiency across the organization, operate with accountability, and ensure that every investment we make creates lasting value for our customers, employees, and shareholders. With that, Let me turn it over to Kanan to walk through the financials.