olivLaw · US equity research
Mastech Digital, Inc. MHH
Services-Management Consulting Services · SIC 8742 · Vertical: Services-Management Consulting Services (SIC 8742)
Mastech Digital is a Digital Transformation IT services provider with two segments: Talent (IT staffing) and Data & AI (consulting and managed services in data and analytics). The company is under revenue pressure, but in the second quarter of 2026 it reported the first sequential revenue growth in its Data & AI segment since 2024, which matters for the direction of the business in the coming period.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Mastech Digital, Inc. (MHH) stock was 6.23 USD (−0.48% on the day), with market capitalisation 74.9 m USD, P/E 71.0 on diluted EPS of 0.09 USD over the last 12 months, beta 0.92, 52-week range 5.50–8.02 USD. Latest reported quarter (Q3 2026): revenue of 42.0 m USD (−13.4% YoY), net income of 7.0 k USD (−99.3% YoY), diluted EPS 0.00 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 37.6
- weak (30–45)
- Bollinger (20, 2)
- 6.15 – 6.67
- in the lower half of the band · %B 0.16 · band width 8.1%
- SMA 50 / 200
- 6.93 / 6.93
- mixed trend
- MACD (12, 26, 9)
- -0.18 / -0.21
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −10.0% | −1.1% | −8.9 pp | — |
| 3 months | −20.8% | −0.5% | −20.4 pp | — |
| 6 months | −12.4% | +4.4% | −16.8 pp | — |
| Year to date | −10.7% | +12.3% | −23.1 pp | — |
| 1 year | −11.8% | +13.5% | −25.3 pp | −28.1% |
| 3 years | −27.9% | +76.4% | −104.3 pp | −29.4% |
| 5 years | −67.7% | +63.7% | −131.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 50.7 m | 48.3 m | 49.1 m | 48.5 m | 45.5 m | 41.1 m | 41.4 m | 42.0 m |
| Cost of revenue | 36.0 m | 35.4 m | 35.3 m | 35.0 m | 32.6 m | 30.1 m | 29.4 m | 29.9 m |
| Gross profit | 14.7 m | 12.9 m | 13.8 m | 13.5 m | 12.9 m | 11.0 m | 12.0 m | 12.0 m |
| SG&A | 14.7 m | 14.7 m | 13.8 m | 12.6 m | 11.9 m | 11.0 m | 12.3 m | 12.0 m |
| Operating income | 65.0 k | -1.9 m | 27.0 k | 820.0 k | 1.0 m | 51.0 k | -325.0 k | 13.0 k |
| Depreciation & amortisation | 829.0 k | 832.0 k | 841.0 k ≈ | 848.0 k ≈ | 803.0 k | 803.0 k | 806.0 k ≈ | 817.0 k ≈ |
| Pre-tax income | 325.0 k | -1.8 m | 210.0 k | 1.2 m | 1.4 m | 657.0 k | -2.0 k | 250.0 k |
| Income tax | 28.0 k | -323.0 k | 75.0 k | 294.0 k | 407.0 k | 393.0 k | 98.0 k | 243.0 k |
| Net income | 297.0 k | -1.4 m | 135.0 k | 941.0 k | 972.0 k | 264.0 k | -100.0 k | 7.0 k |
| Diluted EPS | 0.02 ≈ | -0.12 | 0.01 | 0.08 | 0.08 ≈ | 0.02 | -0.01 | 0.00 |
| Operating cash flow | 4.0 m | -2.9 m | 3.3 m ≈ | 6.4 m ≈ | 4.4 m | -3.2 m | 2.2 m ≈ | 2.6 m ≈ |
| Capex | 115.0 k | 114.0 k | 55.0 k ≈ | 182.0 k ≈ | 25.0 k | 66.0 k | 64.0 k ≈ | 224.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 91 percentile of its own 34-quarter history (min 5.7, median 18.7, max 146.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 177.2 m | 193.6 m | 194.1 m | 222.0 m | 242.2 m | 201.1 m | 198.9 m | 191.4 m |
| Revenue YoY | +19.8% | +9.3% | +0.3% | +14.4% | +9.1% | −17.0% | −1.1% | −3.8% |
| Net income | 6.7 m | 11.1 m | 9.9 m | 12.2 m | 8.7 m | -7.1 m | 3.4 m | 609.0 k |
| Net income YoY | +311.5% | +66.6% | −11.5% | +23.9% | −28.7% | −181.9% | unavailable | −82.1% |
| Diluted EPS | 0.60 | 0.99 | 0.83 | 1.02 | 0.72 | -0.61 | 0.28 | 0.05 |
| Diluted EPS YoY | +275.0% | +65.0% | −16.2% | +22.9% | −29.4% | −184.7% | unavailable | −82.1% |
| net % | 3.8% | 5.8% | 5.1% | 5.5% | 3.6% | -3.5% | 1.7% | 0.3% |
| Free cash flow | -1.2 m | 15.1 m | 20.9 m | 3.3 m | 11.8 m | 15.6 m | 6.3 m | 10.8 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 36.5 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 89.3 m USD
- Total assets
- 111.8 m USD
- Debt / equity
- unavailable
- Current ratio
- 3.26x
- ROE
- 0.7%
- ROA
- 0.5%
- FCF margin
- 5.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 194.1 m | 222.0 m | 242.2 m | 201.1 m | 198.9 m | 191.4 m | SEC (XBRL)· 18 Mar 2026verified |
| Cost of revenue | 142.6 m | 162.6 m | 179.1 m | 150.1 m | 143.3 m | 138.3 m | SEC (XBRL)· 18 Mar 2026verified |
| Gross profit | 51.5 m | 59.4 m | 63.2 m | 51.0 m | 55.6 m | 53.1 m | SEC (XBRL)· 18 Mar 2026verified |
| SG&A | — | — | 51.0 m | 60.3 m | 51.8 m | 53.1 m | SEC (XBRL)· 18 Mar 2026verified |
| Operating income | 13.4 m | 17.6 m | 12.2 m | -9.3 m | 3.8 m | 1.0 k | SEC (XBRL)· 18 Mar 2026verified |
| Depreciation & amortisation | 3.6 m | 4.0 m | 4.2 m | 3.9 m | 3.5 m | 3.3 m | SEC (XBRL)· 18 Mar 2026verified |
| EBITDA | 17.0 m ≈ | 21.6 m ≈ | 16.4 m ≈ | -5.4 m ≈ | 7.3 m ≈ | 3.3 m ≈ | SEC (XBRL)· 18 Mar 2026derived |
| Pre-tax income | 12.6 m | 16.9 m | 12.5 m | -9.0 m | 4.4 m | 1.1 m | SEC (XBRL)· 18 Mar 2026verified |
| Income tax | 2.8 m | 4.7 m | 3.8 m | -1.9 m | 1.0 m | 453.0 k | SEC (XBRL)· 18 Mar 2026verified |
| Net income | 9.9 m | 12.2 m | 8.7 m | -7.1 m | 3.4 m | 609.0 k | SEC (XBRL)· 18 Mar 2026verified |
| Diluted EPS | 0.83 | 1.02 | 0.72 | -0.61 | 0.28 | 0.05 | SEC (XBRL)· 18 Mar 2026verified |
| Weighted average diluted shares | 12.0 m | 12.0 m | 12.1 m | 11.6 m | 12.0 m | 12.0 m | SEC (XBRL)· 18 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 7.7 m | 6.6 m | 7.1 m | 21.1 m | 27.7 m | 36.5 m | SEC (XBRL)· 18 Mar 2026verified |
| Receivables | 22.0 m | 34.2 m | 33.6 m | 22.6 m | 23.8 m | 20.6 m | SEC (XBRL)· 18 Mar 2026verified |
| Current assets | 41.2 m | 53.9 m | 53.2 m | 56.5 m | 66.2 m | 68.6 m | SEC (XBRL)· 18 Mar 2026verified |
| Property, plant & equipment, net | 2.0 m | 3.0 m | 2.7 m | 1.9 m | 2.0 m | 1.6 m | SEC (XBRL)· 18 Mar 2026verified |
| Goodwill | 32.5 m | 32.5 m | 32.5 m | 27.2 m | 27.2 m | 27.2 m | SEC (XBRL)· 18 Mar 2026verified |
| Intangibles (excl. goodwill) | 21.9 m | 18.8 m | 15.8 m | 13.0 m | 10.3 m | 7.8 m | SEC (XBRL)· 18 Mar 2026verified |
| Total assets | 102.0 m | 114.1 m | 108.9 m | 105.2 m | 111.5 m | 111.8 m | SEC (XBRL)· 18 Mar 2026verified |
| Accounts payable | 2.6 m | 5.0 m | 4.5 m | 4.7 m | 4.7 m | 3.5 m | SEC (XBRL)· 18 Mar 2026verified |
| Short-term debt | 4.4 m | 4.4 m | 1.1 m | 0 | — | — | SEC (XBRL)· 15 Mar 2024verified |
| Long-term debt | 12.9 m | 8.7 m | 0 | — | — | — | SEC (XBRL)· 27 Mar 2023verified |
| Current liabilities | 22.0 m | 26.8 m | 19.6 m | 19.9 m | 20.6 m | 21.1 m | SEC (XBRL)· 18 Mar 2026verified |
| Total liabilities | 42.5 m | 39.6 m | 22.9 m | 23.8 m | 24.1 m | 22.5 m | SEC (XBRL)· 18 Mar 2026verified |
| Equity | 59.5 m † | 74.4 m † | 86.0 m † | 81.4 m † | 87.4 m † | 89.3 m † | SEC (XBRL)· 18 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 21.2 m | 5.2 m | 12.6 m | 16.0 m | 7.2 m | 11.1 m | SEC (XBRL)· 18 Mar 2026verified |
| Capex | 298.0 k | 1.9 m | 835.0 k | 335.0 k | 941.0 k | 376.0 k | SEC (XBRL)· 18 Mar 2026verified |
| Free cash flow | 20.9 m ≈ | 3.3 m ≈ | 11.8 m ≈ | 15.6 m ≈ | 6.3 m ≈ | 10.8 m ≈ | SEC (XBRL)· 18 Mar 2026derived |
| Investing cash flow | -9.6 m | -2.1 m | -818.0 k | -216.0 k | -941.0 k | -486.0 k | SEC (XBRL)· 18 Mar 2026verified |
| Financing cash flow | -6.7 m | -4.1 m | -10.4 m | -1.6 m | 654.0 k | -1.1 m | SEC (XBRL)· 18 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 52.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 74.9 m USD
Key indicators
Coverage and freshness
Score by group
52% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 1.18 – 2.18 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E1.18 – 2.18 (Mid 1.71)12 companies used · median multiple 19.5x · quartiles 13.4x – 24.8xAERT, BAH, EXPO, FCN, G, HCKT, HURN, ICFI, III, RMR, TSSI, ZTG
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 52.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 0.7% | 45 (vs peers) | 12% |
| FCF conversion · Quality | 500.0% | 100 (on a fixed band) | 12% |
| Revenue CAGR 3Y · Growth | -7.6% | 0 (on a fixed band) | 16% |
| EPS CAGR 3Y · Growth | -58.9% | 0 (on a fixed band) | 16% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 4.3x | 100 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | 71.0x | 24 (vs peers) | 20% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 7.6% | 95 (on a fixed band) | 16% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality73/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation55/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
MASTECH DIGITAL, INC. (MHH). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 191.4 m USD in 2025; YoY growth -3.8%; net margin 0.7%; ROE 1.3%.
The estimated value range is 1.18–2.18 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 1.71 USD, the price of 6.23 USD leaves a potential of -72.5% (value / price − 1) and a margin of safety of -263.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 52.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 500.0%
- Current ratio: 4.3x
- FCF yield: 7.6%
What contradicts it
- Revenue CAGR 3Y: -7.6%
- EPS CAGR 3Y: -58.9%
- P/E (TTM): 71.0x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Services-Management Consulting Services (SIC 8742) · same industry (4-digit SIC) · compared with 33 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BAHBooz Allen Hamilton Holding Corporation | 10.5 bn | 13.7 | 70.0% | 7.1% | −6.4% | +6% / −29% |
| GGenpact Limited | 6.9 bn | 12.1 | 22.4% | 11.1% | +6.6% | −7% / +20% |
| FCNFti Consulting, Inc | 5.4 bn | 24.7 | 15.2% | 5.9% | +2.4% | +22% / −10% |
| EXPOExponent, Inc. | 4.2 bn | 39.2 | 31.2% | 17.7% | +4.2% | +21% / +14% |
| HURNHuron Consulting Group Inc. | 2.7 bn | 25.8 | 25.5% | 6.1% | +11.7% | +5% / +66% |
| ASTHAstrana Health, Inc. | 2.2 bn | 48.3 | 5.1% | 1.1% | +56.4% | +72% / +19% |
| ICFIICF International, Inc. | 1.7 bn | 20.1 | 8.6% | 4.9% | −7.3% | +24% / −31% |
| BWMNBowman Consulting Group Ltd. | 744.2 m | 105.3 | 2.9% | 1.4% | +14.9% | +19% / +39% |
| ONTOnterris, Inc. | 566.4 m | — | -2.5% | -1.4% | +19.3% | −37% / −48% |
| PPHCPublic Policy Holding Company, Inc. | 381.3 m | — | -39.5% | -18.9% | +24.7% | unavailable / unavailable |
| HCKTHackett Group, Inc. | 329.4 m | 19.0 | 20.7% | 6.3% | −2.6% | −28% / −40% |
| IIIInformation Services Group Inc. | 289.5 m | 25.2 | 12.7% | 4.7% | −1.2% | +13% / +46% |
| AERTAeries Technology, Inc. | 282.0 m | 20.9 | — | 3.6% | −0.3% | +35% / −68% |
| RMRRmr Group Inc. | 250.5 m | 12.6 | 8.7% | 3.1% | −22.0% | +10% / −30% |
| SUPXSuperx Ai Technology Limited | 209.8 m | — | -101.8% | -527.7% | +1,878.6% | −84% / unavailable |
| TSSITss, Inc. | 193.3 m | 14.1 | 32.0% | 7.4% | +65.9% | −29% / +1,976% |
| GRNQGreenpro Capital Corp. | 122.4 m | — | -26.8% | -169.6% | −40.7% | −57% / −19% |
| AUCAtif Holdings Limited | 109.4 m | — | -90.5% | -723.7% | −74.7% | −12% / −70% |
| ROMARoma Green Finance Limited | 101.0 m | — | -44.2% | -287.8% | −22.2% | +138% / unavailable |
| RTBRTB Digital, INC. | 92.6 m | — | -141.9% | -198.5% | −38.7% | −49% / −94% |
| MHHMastech Digital, Inc. | 74.9 m | 71.0 | 1.3% | 0.7% | −3.8% | −12% / −28% |
| EGGEnigmatig Ltd | 64.8 m | 268.0 | 6.3% | 12.6% | +12.2% | +40% / unavailable |
| CTMCastellum, Inc. | 46.4 m | — | -6.8% | -4.1% | +18.1% | −53% / +123% |
| ACCLAcco Group Holdings Limited | 34.9 m | 119.0 | 7.0% | 5.6% | +5.8% | −38% / unavailable |
| INTJIntelligent Group Limited | 33.5 m | — | -23.5% | -98.3% | −9.0% | −72% / unavailable |
1- and 3-year price returns: for MHH from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 3.61 Total return -42% · Per year -42% | 6.41 Total return 3% · Per year 3% | 9.70 Total return 56% · Per year 56% |
| 3 years | 2.87 Total return -54% · Per year -23% | 5.79 Total return -7% · Per year -2% | 9.70 Total return 56% · Per year 16% |
| 5 years | 2.28 Total return -63% · Per year -18% | 5.22 Total return -16% · Per year -3% | 9.70 Total return 56% · Per year 9% |
- Exit P/E± 1.45
- Net margin± 1.01
- Annual revenue growth± 0.91
- Annual dilution± 0.09
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (30 Oct 2026 · results), 10-Q (30 Oct 2026).
In brief
Mastech Digital is a Digital Transformation IT services provider with two segments: Talent (IT staffing) and Data & AI (consulting and managed services in data and analytics). The company is under revenue pressure, but in the second quarter of 2026 it reported the first sequential revenue growth in its Data & AI segment since 2024, which matters for the direction of the business in the coming period.
SWOT
Strengths
- Efficient offshore recruiting and a balance between H1-B and U.S. workers give access to a broader candidate pool 1.
- No bank debt and solid liquidity at June 30, 2026 provide operational flexibility 3.
- The Data & AI segment has high gross margins and has shown sequential recovery in revenue and bookings 3.
Weaknesses
- High concentration on a few large clients means losing one important client could significantly affect revenue 12.
- The number of billable consultants in the Talent segment has fallen, reducing staffing revenue 13.
- Reliance on Indian operations brings currency and regulatory risk, and rupee-denominated costs could rise 1.
Opportunities
- Demand for AI, cloud and automation could support growth in Data & AI, especially if strategic contracts expand 13.
- Closer integration of talent and data services could create more complete offerings for enterprise clients 2.
- If the IT labor market stabilizes, demand for staffing in the Talent segment could recover 12.
Risks
- Client concentrationhigh
A small number of clients generates much of the revenue, and contracts can be terminated without penalty, which could quickly reduce revenue 12.
- Client insourcinghigh
Large clients can bring outsourced work in-house, as happened with a top ten client in the Talent segment 3.
- Shortage of talentmedium
A shortage of data and IT specialists could limit delivery capacity and raise personnel costs 1.
- Currency and operational exposure in Indiamedium
Most revenue is in dollars, but a significant part of the workforce is paid in rupees, so a stronger rupee would raise costs 1.
- Acquisition risklow
The acquisition strategy may bring integration difficulty, dilution and debt, and transaction costs could reduce margins 1.
Investment thesis
What would need to be true (bull case)
- The Data & AI segment returned to sequential growth in the second quarter of 2026 and bookings rose, which could signal a recovery if the trend holds 3.
- A debt-free balance sheet and existing liquidity leave room to invest in AI and talent without financing pressure 3.
- A strategic AI deployment with a U.S. retailer suggests enterprise demand for AI partners remains present 3.
What would break the thesis
- Revenue declined in 2025 and in the first half of 2026, and the Talent segment keeps contracting because of insourcing 123.
- Dependence on a few large clients means results rest on decisions by a small number of companies 12.
- If the shift toward MSPs and GCCs deepens, staffing margins could stay under pressure over the long term 1.
What to watch
- Whether Data & AI revenue keeps growing after the sequential increaseQ3 2026
- The pace of insourcing by the top ten client and its effect on the Talent segmentQ3 2026
- Data & AI bookings level and how they convert into revenue2026
- Outlook and full-year results in the next annual reportnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (30 Oct 2026 · results), 10-Q (30 Oct 2026).
The business
Mastech Digital, Inc. is a Digital Transformation IT services provider headquartered near Pittsburgh, Pennsylvania, with approximately 1,500 consultants 1. The company does not sell software or hardware; nearly all revenue comes from data and analytics, IT staffing and Digital Transformation services 1. From January 1, 2026 it reports two segments, Talent and Data & AI, replacing Data and Analytics Services and IT Staffing Services 2.
Total revenue fell to $191.4 million in fiscal 2025 from $198.9 million in 2024 1. In the quarter ended June 30, 2026, revenue was $41.4 million, down 15.6% year over year but up 0.9% sequentially from the first quarter of 2026 23. At June 30, 2026 the company had liquidity of $56.0 million and no bank debt 3.
Clients are mostly large enterprises, including Fortune 500 organizations, and contracts can generally be terminated by the client at short notice 12. Client concentration is high: the top ten clients represented about 58% of revenue in 2025 and about 61% in the second quarter of 2026 12.
Segments
Talent (IT staffing)
The Talent segment supplies contract IT professionals under master service agreements and hourly bill rates, mainly in the U.S. 12. In the second quarter of 2026 segment revenue fell 16.2% year over year, driven by insourcing by a top ten client and the exit of lower-margin positions 3. The average bill rate rose to $92.17 from $88.36, pointing to a focus on revenue quality 3.
Market context
Demand for the company's services is tied to North American employment levels and corporate spending; in contractions clients delay projects and cut staffing 12. Specialized data and IT talent remains scarce, which keeps personnel costs high and can pressure margins 1. The market remains cautious, with longer decision cycles amid inflation and interest rate volatility 2.
Data, analytics and AI services compete with consultancies and integrators, and demand for cloud, AI and automation skills is uneven and depends on budgets and project timing 1. In staffing, a growing share of demand runs through managed service providers (MSPs) and clients' own global capability centers (GCCs), which reduces direct contact with end users 1.
Trends
- Insourcing and the MSP/GCC modelheadwind
Many large clients use managed service providers or their own GCCs, which has lowered margins and weakened direct client contact 1. If this trend continues, margins could come under further pressure 1.
- Growth in Data & AItailwind
The company has invested in AI and data partnerships, and in the second quarter of 2026 the Data & AI segment showed its first signs of sequential recovery 23. A strategic AI deployment with a U.S. retailer could support this trend if it expands 3.
- Wage pressure in specialized IT rolesmixed
Although the labor market has eased, pay for specialized IT roles has stayed elevated, and in a weak demand environment price competition has hit margins 1. Higher bill rates may partly offset this, but this is not assured 13.
- Client concentrationheadwind
A small number of clients generates a large share of revenue, and losing or reducing a major client could quickly affect results 12. Insourcing by a top ten client has been a pressure point in the Talent segment 3.
Competitive position
The company competes with IT staffing firms and systems integrators, and in data and analytics with consultancies and platform providers; its stated advantages are an offshore recruiting model and a balance between H1-B and U.S. workers 1. Price pressure also comes from clients using MSPs that centralize vendor selection 1.
Staffing and IT services providers competing for the same contracts pressure rates and response times, and the company's advantages depend on recruiting speed and offshore cost 1. In Data & AI, partnerships with technology providers play an important role in generating opportunities 1.
- U.S. IT staffing and digital transformation providers
Compete for staffing contracts and data projects; the sources do not identify a publicly listed competitor, so no ticker is given.
- Systems integrators
Act both as clients and as staffing channels, and can compete directly in data and digital transformation projects.
- Managed service providers (MSPs)
Can intermediate the relationship with the end user and reduce margins by centralizing vendor selection.
- Clients' global capability centers (GCCs)
Clients that build their own centers can take work in-house, changing demand for external providers.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report30 Oct 2026
- Current report30 Oct 2026Results of operations · Financial statements and exhibits
- Current report14 Aug 2026Departure or appointment of officers
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Departure or appointment of officers · Amendments to articles or bylaws · Financial statements and exhibits
- Current report18 May 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Quarterly report15 May 2026
- Current report15 May 2026Results of operations · Financial statements and exhibits
- Proxy statement09 Apr 2026
- Current report (amendment)08 Apr 2026Departure or appointment of officers · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Mastech Digital, Inc. · 18 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Mastech Digital, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Mastech Digital, Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.