v3.26.3
Business Segments and Geographic Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Business Segments and Geographic Information
12.
Business Segments and Geographic Information

Beginning January 1, 2026, the Company reports its operations through two reportable segments: Talent and Data & AI. This change reflects a realignment of the Company’s internal management and reporting structure under its operating strategy, whereby the Chief Operating Decision Maker evaluates operating performance and allocates resources based on these two segments. Prior-period segment information has been recast to conform to the current presentation.

The Data & AI segment consists of direct client engagements that are managed as services-led accounts. These offerings include data management and analytics, digital transformation consulting, AI and Industry Solutions, staffing to direct customers, data engineering and IT services, and managed services. Engagements are typically project-based and may be structured as time-and-material or fixed-price arrangements and delivered using a combination of on-site and offshore resources.

The Talent segment consists of staffing engagements that provide clients with access to skilled technology professionals across a broad range of digital and mainstream IT disciplines. These engagements include both intermediated arrangements through managed service providers and system integrators that are managed as staffing-only engagements. Substantially all revenue within this segment is recognized over time as services are performed, generally based on hours worked.

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(Amounts in thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Data & AI

 

$

14,122

 

 

$

15,160

 

 

$

40,190

 

 

$

46,894

 

Talent

 

 

27,865

 

 

 

33,336

 

 

 

84,327

 

 

 

99,016

 

Total revenues

 

$

41,987

 

 

$

48,496

 

 

$

124,517

 

 

$

145,910

 

Cost of Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Data & AI

 

$

8,403

 

 

$

9,103

 

 

$

24,336

 

 

$

28,664

 

Talent

 

 

21,419

 

 

 

25,678

 

 

 

64,992

 

 

 

76,819

 

Total cost of revenues1

 

$

29,822

 

 

$

34,781

 

 

$

89,328

 

 

$

105,483

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

Data & AI

 

$

5,719

 

 

$

6,057

 

 

$

15,854

 

 

$

18,230

 

Talent

 

 

6,446

 

 

 

7,658

 

 

 

19,335

 

 

 

22,197

 

Total gross profit1

 

$

12,165

 

 

$

13,715

 

 

$

35,189

 

 

$

40,427

 

Gross Margin %:

 

 

 

 

 

 

 

 

 

 

 

 

Data & AI

 

 

40.5

%

 

 

40.0

%

 

 

39.4

%

 

 

38.9

%

Talent

 

 

23.1

%

 

 

23.0

%

 

 

22.9

%

 

 

22.4

%

Total gross margin %1

 

 

29.0

%

 

 

28.3

%

 

 

28.3

%

 

 

27.7

%

Sales & Marketing Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Data & AI

 

$

1,883

 

 

$

1,488

 

 

$

6,181

 

 

$

6,134

 

Talent

 

 

815

 

 

 

1,230

 

 

 

2,795

 

 

 

5,109

 

Total sales & marketing expenses

 

$

2,698

 

 

$

2,718

 

 

$

8,976

 

 

$

11,243

 

 

 

(1) Gross margin difference between the supplemental segment and consolidated results primarily reflects non-allocated severance expense of $0.1 million and $0.3 million recorded in cost of goods sold during the third quarter of 2026 and 2025 respectively.

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(Amounts in thousands)

 

Operations Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Data & AI

 

$

1,109

 

 

$

312

 

 

$

2,841

 

 

$

1,224

 

Talent

 

 

1,282

 

 

 

1,620

 

 

 

3,679

 

 

 

4,952

 

Total operations expenses

 

$

2,391

 

 

$

1,932

 

 

$

6,520

 

 

$

6,176

 

General & Administrative Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Data & AI

 

$

2,577

 

 

$

2,620

 

 

$

7,611

 

 

$

8,006

 

Talent

 

 

3,732

 

 

 

2,954

 

 

 

10,383

 

 

 

9,709

 

Total general & administrative expenses

 

$

6,309

 

 

$

5,574

 

 

$

17,994

 

 

$

17,715

 

Segment operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Data & AI

 

$

150

 

 

$

1,637

 

 

$

(779

)

 

$

2,866

 

Talent

 

 

617

 

 

 

1,854

 

 

 

2,478

 

 

 

2,427

 

Subtotal

 

 

767

 

 

 

3,491

 

 

 

1,699

 

 

 

5,293

 

Unallocated Cost:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

$

(604

)

 

$

(650

)

 

$

(1,811

)

 

$

(1,949

)

Finance and accounting transition expense

 

 

—

 

 

 

(937

)

 

 

—

 

 

 

(1,625

)

Severance expense

 

 

(150

)

 

 

(1,084

)

 

 

(150

)

 

 

(2,725

)

Interest income (expense), FX, gains (losses)
   and other, net

 

 

237

 

 

 

415

 

 

 

1,167

 

 

 

689

 

Income (loss) before income taxes

 

$

250

 

 

$

1,235

 

 

$

905

 

 

$

(317

)

 

 

 

Below is geographic information related to our revenues from external customers:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(Amounts in thousands)

 

United States

 

$

40,791

 

 

$

48,078

 

 

$

121,751

 

 

$

144,412

 

Canada

 

 

397

 

 

 

112

 

 

 

537

 

 

 

388

 

India and Other

 

 

799

 

 

 

306

 

 

 

2,229

 

 

 

1,110

 

Total revenues

 

$

41,987

 

 

$

48,496

 

 

$

124,517

 

 

$

145,910

 

 

The Company does not disclose total assets by reportable segment, as such information is not regularly provided to the Company’s Chief Operating Decision Maker (“CODM”). A significant portion of the Company’s assets is utilized across both segments and is not specifically attributable to individual segments.