10-K · March 18, 2026
Mastech Digital, Inc. reported a decline in total revenues to $191.4 million in 2025, down from $198.9 million in 2024, alongside a reduced gross margin at 27.7%. Challenges stem from reduced demand for IT staffing and…
Earnings analysis · 10-Q
MHH earnings analysis
Filed May 15, 2026 · Our reading of the company's report
The latest report
Mastech Digital reported disappointing earnings for Q1 2026, with revenues of $41.08 million and a diluted EPS of $0.02, significantly below estimates of $44.40 million and $0.16, respectively. The revenue declined 15%…
Read full summary
Mastech Digital reported disappointing earnings for Q1 2026, with revenues of $41.08 million and a diluted EPS of $0.02, significantly below estimates of $44.40 million and $0.16, respectively. The revenue declined 15% from Q1 2025, driven by reduced billable consultants and cautious client spending in both segments.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.02
- Gross margin
- 26.8%
What stood out
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Significant Revenue Decline
Revenue for Q1 2026 was $41.08 million, down 15% from $48.32 million in Q1 2025.
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EPS Misses Expectations
Diluted EPS was $0.02, compared to an estimated $0.16 and prior year's $0.08.
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Cash Flow Improvement
Operating cash flow improved, with cash provided from operations at -$3.16 million vs -$2.92 million in Q1 2025.
-
Inventory Management
Accounts receivable increased, leading to a DSO of 60 days, up from 56 days in the previous year.
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Lower SG&A Expenses
SG&A expenses decreased to $11 million from $14.7 million, improving efficiency despite declining revenues.
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New Share Repurchase Program
Authorized a new program for up to $5 million in stock repurchases, indicating management confidence despite recent performance.
What to watch
-
Declining Client Spending
Cautious spending from clients led to a significant drop in billable consultants, down to 619 from 782 year-over-year.
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Segment Revenue Declines
Data & AI segment revenues fell 21% to $12.6 million, reflecting weaker client demand.
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Concentration Risk
Top clients account for 60% of revenue, exposing to risks associated with any single client's performance.
Management's outlook
No updated revenue guidance provided.
Earlier filings 4
10-Q · November 13, 2025
Mastech Digital reported a 6% year-over-year decline in revenues for Q3 2025, totaling $48.5 million, and a decrease in diluted EPS to $0.08 compared to $0.16 a year ago. The company reported improved gross margins in…
10-Q · August 13, 2025
Mastech Digital, Inc. reported a modest revenue decrease of 1% year-over-year in Q2 2025, totaling $49.1 million, driven by a slight decline in both its Data and Analytics Services and IT Staffing Services segments.…
10-Q · May 15, 2025
Mastech Digital, Inc. reported Q1 2025 results showing a slight revenue decline from both the previous quarter and year. The company's revenue was $48.3 million, a 3% year-over-year increase supported by significant…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.