MHH earnings analysis
What we found in MHH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Significant Revenue Decline
- Revenue for Q1 2026 was $41.08 million, down 15% from $48.32 million in Q1 2025.
- EPS Misses Expectations
- Diluted EPS was $0.02, compared to an estimated $0.16 and prior year's $0.08.
- 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.
- Lower SG&A Expenses
- SG&A expenses decreased to $11 million from $14.7 million, improving efficiency despite declining revenues.
- New Share Repurchase Program
- Authorized a new program for up to $5 million in stock repurchases, indicating management confidence despite recent performance.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Declining Client Spending
- Cautious spending from clients led to a significant drop in billable consultants, down to 619 from 782 year-over-year.
- Segment Revenue Declines
- Data & AI segment revenues fell 21% to $12.6 million, reflecting weaker client demand.
- Concentration Risk
- Top clients account for 60% of revenue, exposing to risks associated with any single client's performance.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.02
- Gross margin
- 26.8%
- Segment
- Data & AI: $12.6M
- Segment
- Talent: $28.5M
What they said about what is next.
No updated revenue guidance provided.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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