US Market News
3週前
Mastech Digital Reports First Quarter 2026 ResultsMay 15, 2026 7:00 AM
PR Newswire (US) Mastech Digital Kicks Off 2026 With Business Realignment PITTSBURGH, May 15, 2026 /PRNewswire/ -- Mastech Digital, Inc. (NYSE American: MHH) ("Mastech Digital"), a leading provider of Digital Transformation IT Services, announced today its financial results for the first quarter ended March 31, 2026. First Quarter 2026 Highlights:
Three Months Ended
March 31,
March 31,
December 31,
(In thousands, except per share data)
2026
2025
2025
Revenues
Data & AI Segment $12,584
$15,997
$14,409
Talent Segment
28,499
32,319
31,052
Consolidated $41,083
$48,316
$45,461
Gross Profit
Data & AI Segment $4,684
$6,034
$5,902
Talent Segment
6,341
6,858
6,981
Consolidated $11,025
$12,892
$12,883
Gross Margin
Data & AI Segment
37.2%
37.7%
41.0%Talent Segment
22.3%
21.2%
22.5% Consolidated
26.8%
26.7%
28.3%
GAAP Net Income (Loss)$264
$(1,439)
$972
GAAP Diluted Earnings (Loss) Per Share $0.02
$(0.12)
$0.08
Non-GAAP Net Income $1,281
$1,101
$2,499
Non-GAAP Diluted Earnings Per Share $0.11
$0.06
$0.21
See "Use of Non-GAAP Financial Measures" and "Reconciliation of GAAP Measures to Non-GAAP Measures" below.Total consolidated revenues of $41.0 million during the quarter represented a decrease of 15% on a year-over-year basis. Data and AI segment revenues declined 21% during the quarter when compared to the first quarter of 2025, driven by cautious client spending and elongated decision-making cycles for new projects, as headwinds from macro-economic and geopolitical uncertainties have continued in the market. Positive new bookings momentum with TCV value of $7.0 million during the first quarter of 2026, as compared to $3.7 million during the first quarter of 2025. Talent segment revenues declined 11.8% when compared to the first quarter of 2025, driven by a 20.8% decrease in billable consultants as we continued to exit lower-margin and non-strategic positions. Strong average bill rate of $90.91, as compared to $87.82 during the first quarter of 2025 reflected a continued focus on revenue quality. Management Commentary: Nirav Patel, Mastech Digital's President and Chief Executive Officer, stated, "We continued to make progress during the first quarter against our transformation plan. A critical step in that journey was the realignment of our business into two new segments: Talent and Data & AI. As part of this effort, we have realigned certain clients more closely with our Data & AI business, a move we believe strengthens our integrated offerings and reinforces our position as a full-service provider. We believe this structure better reflects how we serve our clients and how we intend to create long-term value.We believe geopolitical events and ongoing conflicts have created an environment of compounding uncertainty, and we are seeing enterprises respond with continued caution in their technology spending. While broad-based expansion in discretionary budgets has remained limited, organizations have continued to allocate toward strategic AI initiatives - a reflection that AI investment decisions, while deliberate, remain a priority. We plan to continue monitoring customer spending patterns as the environment evolves.From the outset, we have been clear that savings had to come ahead of our investments. We are pleased that our transformation initiative, EDGE (Efficiencies Driving Growth and Expansion) announced in the third quarter of 2025, has continued to execute ahead of our expectations."Re-Segmented Financial Reporting Overview: Effective January 1, 2026, Mastech Digital realigned its former IT Staffing Services and Data and Analytics Services operating segments to reflect its AI-led operating strategy and resource allocation priorities. The new reportable segments are Talent and Data & AI. These changes did not impact our previously reported consolidated results.The Data & AI segment consists solely of direct client engagements, including certain clients from the former IT Staffing Services division where we believe the Company has the potential to cross-sell services and increase market share. The offerings in this segment include data management and analytics, digital transformation consulting, AI and Industry Solutions, staffing to direct customers, data engineering and IT services, and managed services.The Talent segment provides staffing solutions that enable clients to access skilled technology professionals across a broad range of digital and mainstream IT disciplines. These engagements include intermediated arrangements through managed service providers and systems integrators, as well as certain direct client relationships. We have structured this segment to allow clients to scale their technology teams efficiently while maintaining flexibility in response to changing business conditions.Balance Sheet & Liquidity Update: As of March 31, 2026, Mastech Digital had liquidity of $54.9 million, including cash and cash equivalents of $33.6 million and approximately $21.3 million of borrowing capacity available under its credit facility, with no bank debt.Conference Call: Mastech Digital will host a conference call to discuss the Company's first quarter 2026 financial results on May 15, 2026 at 9:00 a.m. Eastern Time. To join the call telephonically, please register at https://register-conf.media-server.com/register/BI12042dae45f94ede9096dd99c2bed8f6. 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 Mastech Digital investor relations website at https://investors.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, Analytics & AI Solutions, 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.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, and projections of and statements regarding the Company's operations, business, segments, 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, segments 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, 2025. MASTECH DIGITAL, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands)(Unaudited)
March 31,
March 31,
2026
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 33,550
$ 24,665 Accounts receivable, net
27,728
32,146 Prepaid and other current assets
5,288
7,652 Total current assets
66,566
64,463
Equipment, enterprise software and leasehold improvements, net
1,390
1,932
Operating lease right-of-use assets, net
2,266
3,514Deferred income taxes
1,941
1,295Deferred financing costs, net
71
165Deferred compensation, net
875
1,375Non-current deposits
523
464Goodwill, net of impairment
27,210
27,210
Intangible assets, net of amortization
7,152
9,658 Total assets
$ 107,994
$ 110,076
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 3,360
$ 3,742 Current portion of operating lease liability
1,312
1,291 Accrued payroll and related costs
10,453
13,448 Other accrued liabilities
888
930 Total current liabilities
16,013
19,411
Long-term liabilities:
Long-term operating lease liability, less current portion
810
2,158 Long-term severance liability
110
1,560 Total liabilities
16,933
23,129
Shareholders' equity:
Common stock, par value $0.01 per share
140
135 Additional paid-in capital
44,562
39,199 Retained earnings
56,691
54,378 Accumulated other comprehensive income (loss)
(3,201)
(1,880) Treasury stock, at cost
(7,131)
(4,885) Total shareholders' equity
91,061
86,947 Total liabilities and shareholders' equity
$ 107,994
$ 110,076 MASTECH DIGITAL, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands, except per share data)(Unaudited)
Three Months ended March 31,
2026
2025
Revenues$ 41,083
$ 48,317
Cost of revenues30,058
35,425
Gross profit11,025
12,892
Selling, general and administrative expenses10,974
14,745
Income (loss) from operations 51
(1,853)
Other income/(expense), net606
91
Income (loss) before income taxes657
(1,762)
Income tax expense (benefit)393
(323)
Net income (loss)$ 264
$ (1,439)
Earnings (loss) per share:
Basic$ 0.02
$ (0.12)
Diluted$ 0.02
$ (0.12)
Weighted average common shares
outstanding:
Basic11,828
11,753
Diluted11,894
11,753
MASTECH DIGITAL, INC.RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES(Amounts in thousands, except per share data)(Unaudited)
Three Months ended March 31,
2026
2025
GAAP Net Income (Loss)$ 264
$ (1,439)
Adjustments:
Amortization of acquired intangible assets603
650
Stock-based compensation750
895
Severance expense-
1,409
Income taxes adjustments(336)
(759)
Non-GAAP Net Income$ 1,281
$ 756
GAAP Diluted Earnings (Loss) Per Share$ 0.02
$ (0.12)
Non-GAAP Diluted Earnings Per Share$ 0.11
$ 0.06
Weighted average common shares outstanding:
GAAP Diluted Shares11,828
11,753
Non-GAAP Diluted Shares11,894
12,096
MASTECH DIGITAL, INC.SUPPLEMENTAL FINANCIAL INFORMATION(Amounts in thousands)(Unaudited)
Three Months ended March 31,
2026
2025
Revenues:
Data & AI
$ 12,584
$ 15,997
Talent
28,499
32,320
Total revenues$ 41,083
$ 48,317
Gross Margin %:
Data & AI
37.2 %
37.7 %
Talent
22.2 %
21.2 %
Total gross margin %26.8 %
26.7 %
Segment Operating Income (Loss):
Data & AI
$ (448)
$ 272
Talent
1,101
(66)
Subtotal653
206
Amortization of acquired intangible assets(603)
(650)Severance expense-
(1,409)Interest expense and other, net607
91Income (loss) before income taxes$ 657
$ (1,762) Investor Relations Contact:Investors@mastechdigital.comLogo - https://mma.prnewswire.com/media/531268/5971788/Mastech_Digital_Logo.jpg View original content to download multimedia:https://www.prnewswire.com/news-releases/mastech-digital-reports-first-quarter-2026-results-302772975.htmlSOURCE Mastech Digital, Inc. Original: Mastech Digital Reports First Quarter 2026 Results
US Market News
3月前
Mastech Digital Reports Fourth Quarter and Full-Year 2025 ResultsFebruary 19, 2026 7:00 AM
PR Newswire (US)
Continued Strong Progress Against Transformation Plan Driving Operational Improvements; Board of Directors Approves a $5,000,000 Share Repurchase ProgramPITTSBURGH, Feb. 19, 2026 /PRNewswire/ -- 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 AuthorizationThe 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.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
3,832Deferred income taxes
2,583
1,298Deferred financing costs, net
95
189Deferred compensation, net
1,000
-Non-current deposits
530
444Goodwill, 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 revenues32,578
36,032
138,315
143,346
Gross profit12,883
14,715
53,056
55,597
Selling, general and administrative expenses11,876
14,650
53,055
51,806
Income (loss) from operations 1,007
65
1
3,791
Other income/(expense), net372
260
1,061
633
Income (loss) before income taxes1,379
325
1,062
4,424
Income tax expense (benefit)407
28
453
1,022Net income (loss)$ 972
$ 297
$ 609
$ 3,402
Earnings (loss) per share:
Basic$ 0.08
$ 0.03
$ 0.05
$ 0.29Diluted$ 0.08
$ 0.02
$ 0.05
$ 0.28
Weighted average common shares outstanding:
Basic11,705
11,713
11,747
11,669Diluted11,823
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 assets604
650
2,553
2,693
Stock-based compensation780
647
3,118
2,200
Severance expense370
2,083
3,095
2,083
Finance and accounting transition expense299
-
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 Shares11,823
12,191
11,950
12,014
Non-GAAP Diluted Shares11,823
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 services37,645
40,463
158,096
162,318
Total revenues$ 45,461
$ 50,747
$ 191,371
$ 198,943
Gross Margin %:
Data and analytics services49.8 %
49.5 %
46.2 %
49.1 %
IT staffing services23.9 %
23.8 %
24.0 %
23.2 %
Total gross margin %128.3 %
29.0 %
27.9 %
27.9 %
Segment Operating Income (Loss):
Data and analytics services$ (252)
$ 1,809
$ (221)
$ 3,244
IT staffing services2,532
989
7,794
5,323
Subtotal2,280
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, net372
260
1,061
633Income (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.
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Original: Mastech Digital Reports Fourth Quarter and Full-Year 2025 Results