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Mastech Digital (NYSE: MHH) 2025 results mixed as board approves $5M buyback

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Mastech Digital reported softer results for the fourth quarter and full year 2025 but highlighted operational progress and a new capital return plan. Fourth-quarter revenue was $45.5 million, down 10.4% year over year, with Data and Analytics Services at $7.8 million and IT Staffing Services at $37.7 million. Gross margin was 28.3%. GAAP net income rose to $1.0 million, while non-GAAP net income was $2.5 million.

For 2025, revenue was $191.4 million, down 3.8% from 2024. GAAP net income declined to $0.6 million, but non-GAAP net income held steady at $8.6 million, supported by adjustments for amortization, stock-based compensation, severance, and finance and accounting transition expenses. The Board authorized a new $5,000,000 share repurchase program, and the company repurchased 299,523 shares in 2025 for about $2.2 million under a prior program, signaling ongoing buybacks alongside its EDGE transformation initiative.

Positive

  • None.

Negative

  • None.

Insights

Revenue softened and GAAP earnings fell for 2025, but non-GAAP profits held steady and a new $5 million buyback was approved.

Mastech Digital showed mixed performance. Full-year revenue slipped to $191.4 million, a 3.8% decline, with both Data and Analytics and IT Staffing segments lower versus 2024. GAAP net income dropped to $0.6 million, reflecting restructuring, severance, and finance transition costs.

On an adjusted basis, non-GAAP net income was $8.6 million, essentially flat year over year, indicating underlying profitability after excluding amortization, stock-based compensation, severance, and finance and accounting transition expenses. Management emphasized its EDGE efficiency initiative and described 2025 as a transition year.

The Board authorized a new share repurchase program of up to $5,000,000, following repurchases of 299,523 shares for about $2.2 million in 2025. The scale and pace of repurchases, which depend on business and market conditions, will influence how much capital is returned to shareholders as the company executes its 2026 transformation agenda.

false000143722600014372262026-02-192026-02-19

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 19, 2026

 

 

Mastech Digital, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Pennsylvania

001-34099

26-2753540

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

1305 Cherrington Parkway

Building 210

Suite 400

 

Moon Township, Pennsylvania

 

15108

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 412 787-2100

 

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, par value $.01 per share

 

MHH

 

NYSE American LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 


 

Item 2.02 Results of Operations and Financial Condition.

On February 19, 2026, Mastech Digital, Inc. (the “Company”) issued a press release (the “Press Release”) announcing its financial results for the fourth quarter and full year ended December 31, 2025. A copy of the Press Release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

The information contained in this Item 2.02 and in Exhibit 99.1 shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 8.01 Other Events.

The Board of Directors of the Company (the “Board”) authorized a share repurchase program that allows the Company to purchase up to $5,000,000 shares of the Company’s Common Stock, par value $0.01 per share (the “Common Stock”) . The share repurchase program is effective February 16, 2026. The Common Stock may be repurchased from time to time through privately negotiated transactions, through block purchases or by any combination of such methods. The share repurchase program may be modified, suspended or terminated at any time at the discretion of the Board. The timing and actual number of shares of Common Stock to be repurchased by the Company (if any) will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

 

 

Exhibit
No.

 

Description

 

 

99.1

 

Press Release

 

 

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

MASTECH DIGITAL, INC.

 

 

 

 

Date:

February 19, 2026

By:

/s/ Kannan Sugantharaman

 

 

 

Kannan Sugantharaman
Chief Financial Officer

 


Exhibit 99.1

img190927128_0.gif

 

 

FOR IMMEDIATE RELEASE:

 

Mastech Digital Reports Fourth Quarter and Full-Year 2025 Results

 

Continued Strong Progress Against Transformation Plan Driving Operational Improvements; Board of Directors Approves a $5,000,000 Share Repurchase Program

 

 

PITTSBURGH, PA – February 19, 2026 - Mastech Digital, Inc. (NYSE American: MHH) (“Mastech Digital”), a leading provider of Digital Transformation IT Services, announced today its financial results for the fourth quarter and full-year ended December 31, 2025. Additionally, the Company announced that the Board of Directors authorized a share repurchase program of up to $5,000,000 of the Company’s common stock, which shall remain open until the limit is reached or the Board terminates the program.

 

Fourth Quarter 2025 Financial Highlights:

 

Total consolidated revenues of $45.5 million, reflecting a decrease of 10.4% on a year-over-year basis, and a decrease of 6.3% on a sequential basis from the third quarter of 2025.
Data and Analytics Services segment revenues of $7.8 million, compared to $10.3 million in the fourth quarter of 2024, as cautious client spending and elongated decision-making cycles continued.
IT Staffing Services segment revenues of $37.7 million, compared to $40.5 million in the fourth quarter of 2024, due to a decrease in billable consultants.
Gross profits of $12.9 million, compared to $14.7 million in the fourth quarter of 2024 and $13.5 million in the third quarter of 2025.
Gross margins of 28.3% decreased by 70-basis points on a year-on-year basis and increased by 50-basis points on a sequential basis from the third quarter of 2025.
GAAP net income of $1.0 million, compared to $0.3 million in the fourth quarter of 2024 and $0.9 million in the third quarter of 2025. Non-GAAP net income of $2.5 million, compared to $2.8 million in the fourth quarter of 2024 and $3.5 million in the third quarter of 2025. Results for the fourth quarter of 2025 included $0.7 million of severance and Finance & Accounting transition costs, while the third quarter of 2025 included $2.0 million of severance and Finance & Accounting transition costs. The fourth quarter of 2024 included $2.1 million of severance costs.
GAAP diluted earnings (loss) per share of $0.08, compared to $0.02 per share in the fourth quarter of 2024 and $0.08 per share in the third quarter of 2025.
Non-GAAP diluted earnings per share of $0.21, compared to $0.23 per share in the fourth quarter of 2024 and $0.29 per share in the third quarter of 2025.
During the fourth quarter, the Company repurchased 90,900 shares of Mastech Digital common stock under the previously announced share repurchase program authorized by our Board of Directors, for a total investment of approximately $0.7 million.



Full-Year 2025 Financial Highlights:

Total consolidated revenues of $191.4 million, compared to $198.9 million for the full year of 2024, reflecting a decrease of 3.8% on a year-over-year basis.
Data and Analytics Services segment revenues of $33.3 million for the full year of 2025, compared to $36.6 million for the full year of 2024, reflecting a decrease of 9.1% on a year-over-year basis.

 

IT Staffing Services segment revenues of $158.1 million for the full year of 2025, compared to $162.3 million for the full year of 2024, reflecting a decrease of 2.6% on a year-over-year basis.
Gross profits of $53.1 million or 27.9% of total revenue, compared to $55.6 million or 27.9% of revenue for 2024.
GAAP net income of $0.6 million for 2025, compared to $3.4 million for 2024. Non-GAAP net income of $8.6 million for 2025, compared to $8.6 million for 2024.
GAAP diluted earnings per share of $0.05 for 2025, compared to $0.28 per share for 2024.
Non-GAAP diluted earnings per share of $0.72 for 2025, compared to $0.71 per share for 2024.

 

During the full-year 2025, the Company repurchased 299,523 shares of Mastech Digital common stock under the previously announced share repurchase program authorized by our Board of Directors, for a total investment of approximately $2.2 million.

 

 

Nirav Patel, Mastech Digital’s President and Chief Executive Officer, stated, "We are pleased with our continued strong progress against our transformation plan to drive operational improvements across the enterprise. During the third quarter of 2025, we launched our EDGE (Efficiencies Driving Growth and Expansion) initiative, and we maintained our positive momentum during the fourth quarter of 2025 as we advanced our focus on optimizing our organization and operating model. We are also pleased to see our revenue and earnings results during the fourth quarter of 2025 coming ahead of our expectations.


2025 was a year of transition for us. We have mobilized our organization towards a new direction while delivering meaningful improvement in our operational efficiency and financial rigor, the fruits of which we believe are already reflected in our earnings. As we look ahead, we view 2026 to be a year of execution. We believe the strategic actions we took last year have established a solid foundation and have put us in a position of strength as we implement our transformation agenda. We plan to continue accelerating our investments in strategic growth priorities including Data and AI.”

 

Share Repurchase Authorization

 

The share repurchase program is currently in effect and repurchases may occur from time to time through privately negotiated transactions, through block purchases, or by any combination of such methods, and may be modified, suspended or terminated at any time at the discretion of the Company's Board of Directors. The timing and actual number of shares repurchased (if any) will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations.

 

Conference Call:

 

Mastech Digital will host a conference call to discuss the Company’s fourth quarter and full-year 2025 financial results on February 19, 2025 at 9:00 a.m. Eastern Time. To join the call telephonically, please register at https://register-conf.media-server.com/register/BId934e909986147bf883a3c784d353d76. Once registered, participants will receive the dial-in information and a unique PIN to access the call. The dial-in information and unique PIN will be sent to the email used to register for the call. The unique PIN is exclusive to the registrant and can only be used by one person at a time.

 

A live audio webcast of the conference call can be accessed through the Investors section of Mastech Digital’s website at http://www.mastechdigital.com, and a webcast replay will be accessible for a limited time following the scheduled call.

 

 

About Mastech Digital, Inc.:

 

Mastech Digital (NYSE American: MHH) is a leading provider of Digital Transformation IT Services. The Company offers Data Management and Analytics Solutions, Digital Learning, and IT Staffing Services with a Digital First approach. A minority-owned enterprise, Mastech Digital is headquartered in Pittsburgh, PA, with offices across the U.S., Canada, Europe, and India. Visit us at www.mastechdigital.com.

 

 


 

Use of Non-GAAP Measures:

 

This press release contains non-GAAP financial measures to supplement our financial results presented on a GAAP basis. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. Reconciliations of these non-GAAP measures to their comparable GAAP measures are included in the attached financial tables.

 

We believe that providing non-GAAP net income and non-GAAP diluted earnings per share offers investors useful supplemental information about the financial performance of our business, enables comparison of financial results between periods where certain items may vary independent of business performance, and allows for greater transparency with respect to key metrics used by management in operating our business. Additionally, management uses these non-GAAP financial measures in evaluating the Company’s performance.

 

Specifically, the non-GAAP financial measures contained herein exclude the following expense items:

 

Amortization of acquired intangible assets:We amortize intangible assets acquired in connection with our June 2015 acquisition of Hudson IT, our July 2017 acquisition of the services division of InfoTrellis, Inc. and our October 2020 acquisition of AmberLeaf Partners. We exclude these amortization expenses in our non-GAAP financial measures because we believe it allows investors to make more meaningful comparisons between our operating results and those of other companies within our industry and facilitates a helpful comparison of our results with other periods.

 

Stock-based compensation expenses: We incur material recurring expenses related to non-cash, stock-based compensation. We exclude these expenses from our non-GAAP financial measures because we believe that it provides investors with meaningful supplemental information regarding operational performance. In particular, because of varying available valuation methodologies, subjective assumptions, and the variety of award types that companies can use under ASC 718, we believe that providing non-GAAP financial measures that exclude these expenses allows investors to make more meaningful comparisons between our operating results and those of other companies within our industry and facilitate comparisons of our results with other periods.

 

Severance charges: From time to time, we incur severance expenses related to the termination by the Company of leadership and other key personnel. During the third quarter of 2025, we recorded severance charges associated with strategic initiatives we undertook to better align our organizational structure with our long-term growth objectives. During the third quarter of 2025, the Company recognized $0.3 million of severance expense within cost of goods sold. As this amount was not allocated to the reportable segments, the non-allocated charge contributed to a gross margin variance between the supplemental segment presentation and the consolidated financial results. We believe that providing non-GAAP financial measures that exclude these expenses allows investors to make more meaningful comparisons between our operating results and those of other companies within our industry and facilitates comparison of our results with other periods.

 

Finance and accounting transition expense: During the first quarter of 2025, the Company’s Board of Directors made the decision to implement a long-term cost-cutting initiative to transition the Company’s finance and accounting functions to India. During 2025, the Company expects to incur additional costs related to the duplication of resources and travel expenses during the training and knowledge transfer process. Additionally, the Company expects to pay severance expense related to this initiative. The Company estimates total transition and severance expenses to approximate $2.0 million. Post-transition cost savings are expected to approximate $1.2 million per annum. We believe that providing non-GAAP financial measures that exclude these expenses allows investors to make more meaningful comparisons between our operating results and those of other companies within our industry and facilitates comparison of our results with other periods.

 

 


 

Forward-Looking Statements:

 

Certain statements contained in this release are forward-looking statements based on management’s expectations, estimates, projections, and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements, which include but are not limited to, projections of and statements regarding the Company’s ability to generate revenues, earnings, and cash flow, statements regarding the terms, timing, logistics and conditions of the Company's share repurchase program, and projections of and statements regarding the Company’s operations, business, expected financial results, performance, prospects, opportunities, priorities, ongoing objectives, strategies and outlook (including the timing, effectiveness and anticipated results of the Company’s EDGE initiative and other Company initiatives, strategies, business plans and models). These statements are based on information currently available to the Company and it assumes no obligation to update the forward-looking statements as circumstances change. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecasted in forward-looking statements due to a variety of factors, including, without limitation, the level of market demand for the Company’s services, the highly competitive market for the types of services offered by the Company, the impact of competitive factors on profit margins, market and general economic conditions that could cause the Company’s customers to reduce their spending for its services, the Company’s ability to create, acquire and build new lines of business, to attract and retain qualified personnel, reduce costs and conserve cash, the Company’s strategies, initiatives and expectations concerning its operations and operating results, the extent to which the Company’s business is adversely affected by the impacts of the COVID-19 pandemic or any other health epidemics or other outbreaks that disrupt day-to-day activities and other risks that are described in more detail in the Company’s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2024.

 

# # #

 

 

For more information, contact:
Liz Morgan, +1 972-896-1771
Investors@mastechdigital.com

Mastech Digital, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

MASTECH DIGITAL, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

     Cash and cash equivalents

 

$

36,533

 

 

$

27,742

 

     Accounts receivable, net

 

 

26,396

 

 

 

31,443

 

     Prepaid and other current assets

 

 

5,647

 

 

 

7,020

 

           Total current assets

 

 

68,576

 

 

 

66,205

 

Equipment, enterprise software and leasehold improvements, net

 

 

1,557

 

 

 

1,998

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

 

2,534

 

 

 

3,832

 

Deferred income taxes

 

 

2,583

 

 

 

1,298

 

Deferred financing costs, net

 

 

95

 

 

 

189

 

Deferred compensation, net

 

 

1,000

 

 

 

-

 

Non-current deposits

 

 

530

 

 

 

444

 

Goodwill, net of impairment

 

 

27,210

 

 

 

27,210

 

Intangible assets, net of amortization

 

 

7,755

 

 

 

10,308

 

           Total assets

 

$

111,840

 

$

111,484

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

     Accounts payable

 

$

3,451

 

 

$

4,683

 

     Current portion of operating lease liability

 

 

1,283

 

 

 

1,265

 

     Accrued payroll and related costs

 

 

15,391

 

 

 

13,750

 

     Other accrued liabilities

 

 

939

 

 

 

879

 

           Total current liabilities

 

 

21,064

 

 

 

20,577

 

Long-term liabilities:

 

 

 

 

 

 

    Long-term operating lease liability, less current portion

 

 

1,138

 

 

 

2,486

 

    Long-term severance liability

 

 

330

 

 

 

987

 

           Total liabilities

 

 

22,532

 

 

 

24,050

 

Shareholders' equity:

 

 

 

 

 

 

     Common stock, par value $0.01 per share

 

 

137

 

 

 

135

 

     Additional paid-in capital

 

 

42,515

 

 

 

38,277

 

     Retained earnings

 

 

56,427

 

 

 

55,817

 

     Accumulated other comprehensive income (loss)

 

 

(2,640

)

 

 

(1,910

)

     Treasury stock, at cost

 

 

(7,131

)

 

 

(4,885

)

          Total shareholders' equity

 

 

89,308

 

 

 

87,434

 

           Total liabilities and shareholders' equity

 

$

111,840

 

 

$

111,484

 

 

 

 

 

 

 

 

 

 

 

 


 

 

MASTECH DIGITAL, INC.

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

(Amounts in thousands, except per share data)

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months ended December 31,

 

 

Year-ended December 31,

 

 

 

 

2025

 

2024

 

 

2025

 

2024

 

 

 

Revenues

$

45,461

 

$

50,747

 

 

$

191,371

 

$

198,943

 

 

 

Cost of revenues

 

32,578

 

 

36,032

 

 

 

138,315

 

 

143,346

 

 

 

Gross profit

 

12,883

 

 

14,715

 

 

 

53,056

 

 

55,597

 

 

 

Selling, general and administrative expenses

 

11,876

 

 

14,650

 

 

 

53,055

 

 

51,806

 

 

 

Income (loss) from operations

 

1,007

 

 

65

 

 

 

1

 

 

3,791

 

 

 

Other income/(expense), net

 

372

 

 

260

 

 

 

1,061

 

 

633

 

 

 

Income (loss) before income taxes

 

1,379

 

 

325

 

 

 

1,062

 

 

4,424

 

 

 

Income tax expense (benefit)

 

407

 

 

28

 

 

 

453

 

 

1,022

 

 

 

Net income (loss)

$

972

 

$

297

 

 

$

609

 

$

3,402

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.08

 

$

0.03

 

 

$

0.05

 

$

0.29

 

 

 

Diluted

$

0.08

 

$

0.02

 

 

$

0.05

 

$

0.28

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

11,705

 

 

11,713

 

 

 

11,747

 

 

11,669

 

 

 

Diluted

 

11,823

 

 

12,191

 

 

 

11,950

 

 

12,014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MASTECH DIGITAL, INC.

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(Amounts in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months ended December 31,

 

 

Year-ended December 31,

 

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

GAAP Net Income (Loss)

$

972

 

 

$

297

 

 

$

609

 

 

$

3,402

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

604

 

 

 

650

 

 

 

2,553

 

 

 

2,693

 

 

 

 

Stock-based compensation

 

780

 

 

 

647

 

 

 

3,118

 

 

 

2,200

 

 

 

 

Severance expense

 

370

 

 

 

2,083

 

 

 

3,095

 

 

 

2,083

 

 

 

 

Finance and accounting transition expense

 

299

 

 

 

-

 

 

 

1,924

 

 

 

-

 

 

 

 

Income tax adjustments

 

(526

)

 

 

(875

)

 

 

(2,747

)

 

 

(1,795

)

 

 

 

Non-GAAP Net Income

$

2,499

 

 

$

2,802

 

 

$

8,552

 

 

$

8,583

 

 

 

 

GAAP Diluted Earnings (Loss) Per Share

$

0.08

 

 

$

0.02

 

 

$

0.05

 

 

$

0.28

 

 

 

 

Non-GAAP Diluted Earnings Per Share

$

0.21

 

 

$

0.23

 

 

$

0.72

 

 

$

0.71

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Diluted Shares

 

11,823

 

 

 

12,191

 

 

 

11,950

 

 

 

12,014

 

 

 

 

Non-GAAP Diluted Shares

 

11,823

 

 

 

12,191

 

 

 

11,950

 

 

 

12,014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

MASTECH DIGITAL, INC.

 

 

SUPPLEMENTAL FINANCIAL INFORMATION

 

 

(Amounts in thousands)

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months ended December 31,

 

 

Year-ended December 31,

 

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data and analytics services

$

7,816

 

 

$

10,284

 

 

$

33,275

 

 

$

36,625

 

 

 

 

IT staffing services

 

37,645

 

 

 

40,463

 

 

 

158,096

 

 

 

162,318

 

 

 

 

Total revenues

$

45,461

 

 

$

50,747

 

 

$

191,371

 

 

$

198,943

 

 

 

 

Gross Margin %:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data and analytics services

 

49.8

%

 

 

49.5

%

 

 

46.2

%

 

 

49.1

%

 

 

 

IT staffing services

 

23.9

%

 

 

23.8

%

 

 

24.0

%

 

 

23.2

%

 

 

 

Total gross margin %1

 

28.3

%

 

 

29.0

%

 

 

27.9

%

 

 

27.9

%

 

 

 

Segment Operating Income (Loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data and analytics services

$

(252

)

 

$

1,809

 

 

$

(221

)

 

$

3,244

 

 

 

 

IT staffing services

 

2,532

 

 

 

989

 

 

 

7,794

 

 

 

5,323

 

 

 

 

Subtotal

 

2,280

 

 

 

2,798

 

 

 

7,573

 

 

 

8,567

 

 

 

 

Amortization of acquired intangible assets

 

(604

)

 

 

(650

)

 

 

(2,553

)

 

 

(2,693

)

 

 

 

Severance expense

 

(370

)

 

 

(2,083

)

 

 

(3,095

)

 

 

(2,083

)

 

 

 

Finance and accounting transition expense

 

(299

)

 

 

-

 

 

 

(1,924

)

 

 

-

 

 

 

 

Interest income and other, net

 

372

 

 

 

260

 

 

 

1,061

 

 

 

633

 

 

 

 

Income (loss) before income taxes

$

1,379

 

 

$

325

 

 

$

1,062

 

 

$

4,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


FAQ

What were Mastech Digital (MHH) revenues for Q4 2025?

Mastech Digital reported Q4 2025 revenues of $45.5 million, down 10.4% year over year. Data and Analytics Services contributed $7.8 million, while IT Staffing Services delivered $37.7 million, reflecting softer demand and fewer billable consultants.

How did Mastech Digital perform for full-year 2025 versus 2024?

For 2025, Mastech Digital generated $191.4 million in revenue, a 3.8% decline from 2024. GAAP net income fell to $0.6 million, while non-GAAP net income was $8.6 million, roughly in line with the prior year’s $8.6 million.

What were Mastech Digital’s Q4 2025 earnings per share?

In Q4 2025, Mastech Digital reported GAAP diluted earnings per share of $0.08, up from $0.02 a year earlier. Non-GAAP diluted earnings per share were $0.21, compared with $0.23 in the fourth quarter of 2024 and $0.29 in the third quarter of 2025.

What share repurchase activity did Mastech Digital report for 2025?

During 2025, Mastech Digital repurchased 299,523 shares of its common stock for approximately $2.2 million under a prior authorization. In Q4 2025 alone, it bought back 90,900 shares for about $0.7 million, reducing the share count and returning capital to shareholders.

What new share repurchase program did Mastech Digital’s Board approve?

The Board approved a new share repurchase program for up to $5,000,000 of Mastech Digital common stock. Repurchases may occur via privately negotiated transactions, block purchases, or both, and the Board can modify, suspend, or terminate the program at any time.

How did Mastech Digital’s segment results trend in 2025?

In 2025, Data and Analytics Services revenue was $33.3 million, down from $36.6 million, while IT Staffing Services revenue was $158.1 million, down from $162.3 million. Total gross margin remained 27.9%, matching the prior year despite lower sales volumes.

What non-GAAP adjustments did Mastech Digital use in 2025?

Mastech Digital’s non-GAAP metrics excluded amortization of acquired intangibles, stock-based compensation, severance expense, and finance and accounting transition expense, along with related tax effects. These adjustments reconciled GAAP net income of $0.6 million to non-GAAP net income of $8.6 million for 2025.

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