MHH Research | Milton Maxwell

MHH

Mastech Digital, Inc.

7.26

+0.32+4.61%

Dec 16, 4:00:00 PM EST

Upcoming Earnings

Report date

-/-

Earnings Call Transcripts

This Quarter (Q1 '26)

No earnings call transcript available yet

Last Quarter (Q4 '25)

FY Q4 '25

Confirms costs done, details investments

2/18/26Feb 18, 2026

Q&A largely reaffirmed prepared remarks on revenue declines and margin stability, but detailed EDGE efficiencies unlocking Q1 2026 investments in AI leadership and BFSI hires. Management confirmed no more material severance or transition costs. They specified vertical focus on health sciences, financial services, and retail for Global 2000 clients, with strong Q4 bookings renewals across these signaling confidence. Billable headcount ended at 840. Cash supports buybacks and potential M&A. Severance is history. Optimistic tone persists; investors watch investment traction amid macro volatility.

Key Stats

Market Cap

85.55M

P/E (TTM)

Basic EPS (TTM)

-0.01

Dividend Yield

Recent Filings

10-K

FY2025 results

3/18/26Mar 18, 2026

Mastech Digital's FY2025 revenues fell 3.8% y/y to $191.4M, with Data and Analytics down 9.1% to $33.3M on softer client spending and bookings, while IT Staffing dipped 2.6% to $158.1M amid fewer billable consultants (840 vs 1,008 y/y) yet lifted bill rates to $86.10/hour from $82.77. Gross margins held steady at 27.9%, thanks to IT Staffing's 80bps expansion to 24.0%, offsetting Data and Analytics' slip to 46.2%. Q4 saw 90,900 shares repurchased at $7.20 while generating $11.1M operating cash flow. Debt-free with $36.5M cash and $19.9M revolver capacity. Client concentration risks loom large.

8-K

New Dallas office lease

3/11/26Mar 11, 2026

Mastech Digital inked a 5-year lease for 5,895 sq ft in Dallas on March 5, 2026, kicking off August 24 after five months' rent abatement. Monthly base rent escalates from $18,176 to $20,259, plus pro rata operating costs at 1.944% share. Locks in Dallas footprint. Five-year renewal available.

8-K

Q4 revenues down 10%; $5M buyback

2/19/26Feb 19, 2026

Mastech Digital reported Q4 2025 revenues of $45.5M, down 10.4% year-over-year, with full-year sales at $191.4M versus $198.9M in 2024. GAAP net income hit $1.0M, up from $0.3M last quarter amid transition costs. Board approved $5M share repurchase program effective February 16, 2026. Repurchases signal confidence. Yet transformation drags persist.

8-K

Auditor switch announced

12/10/25Dec 10, 2025

Mastech Digital dismissed UHY LLP as its auditor on December 4, 2025, effective after completing the 2025 audit, with no disagreements or reportable events noted. The Audit Committee simultaneously appointed BDO India for the 2026 fiscal year. Clean handoff. UHY confirmed the disclosures.

10-Q

Q3 FY2025 results

11/13/25Nov 13, 2025

Mastech Digital posted Q3 revenues of $48.5M, down 6% y/y from $51.8M, with IT Staffing off 4% to $40.6M but gaining 120bps to 24.8% gross margin, while Data and Analytics dropped 16% to $7.9M at 46.0% margin amid softer demand. Operating income fell to $0.8M from $2.4M as SG&A climbed to $12.6M on $0.8M severance and $0.9M finance transition costs; net income held at $0.9M or $0.08 diluted EPS. Cash swelled to $32.7M with $6.8M YTD operating cash flow and $5.0M FCF (derived), revolver fully available at $20.8M. Client concentration runs high. Solid balance sheet endures.

About

Mastech Digital, Inc., together with its subsidiaries, provides digital transformation IT services to large, medium-sized, and small companies in the United States. The company operates in two segments, Data and Analytics Services and IT Staffing Services. It offers data management and analytics services, including project-based consulting services in the areas of master data management, enterprise data integration, big data and analytics, and digital transformation by using onsite and offshore resources. In addition, the company provides a range of IT staffing services in the areas of data management and analytics, cloud, mobility, social, automation, business intelligence/data warehousing, web services, enterprise resource planning and customer resource management, and e-business solutions. Further, it offers digital transformation services, including digital learning services; and cloud-based enterprise application across sales, marketing, and customer service organizations. The company provides its services across various industry verticals, such as financial services, retail, healthcare, manufacturing, government, telecommunications, and transportation. The company was formerly known as Mastech Holdings, Inc. and changed its name to Mastech Digital, Inc. in September 2016. Mastech Digital, Inc. was founded in 1986 and is based in Moon Township, Pennsylvania.

CEO

Mr. Nirav Patel

IPO

11/19/2008

Website

https://www.mastechdigital.com

Employees

1,525

Sector

Industrials

Industry

Staffing & Employment Services