Mastech Digital (MHH) Q2 2026 earnings summary

Executive summary

• Q2 2026 consolidated revenue was $41.4 million, down 15.6% year-over-year, but up 0.9% sequentially, with Data & AI segment up 7.2% sequentially and Talent segment down 1.9% sequentially.

• Strategic AI engagement secured with a major global convenience store and e-commerce retailer, and a major US retailer, to build AI-driven e-commerce and operational foundations.

• Launched a formal partner program, participated in major industry events, and established a Growth Office to drive new business and deepen partner relationships.

• Continued investment in talent and AI capabilities, with realignment into Talent and Data & AI segments to position as an AI-first provider.

• Cash and cash equivalents stood at $35.6 million as of June 30, 2026, with no outstanding bank debt.

Financial highlights

• Q2 2026 consolidated revenue was $41.4 million, down 15.6% year-over-year; six-month revenues ended June 30, 2026 were $82.5 million, down 15.3% year-over-year.

• Gross profit for Q2 2026 was $12.0 million, with gross margin improving to 29.0% from 28.1% in Q2 2025.

• GAAP net loss for Q2 was $0.1 million (-$0.01 per diluted share); non-GAAP net income was $1 million ($0.08 per diluted share).

• Bill rates reached an all-time high of $92.17, up from $88.36 a year ago.

• Operating cash flow for the first half of 2026 was $(0.9) million, compared to $0.4 million in 2025.

Outlook and guidance

• Management expects cash, operating cash flow, and credit facility to be sufficient for business needs and share repurchase program over the next 12 months, absent acquisitions.

• Management remains focused on executing the transformation plan and expects continued momentum in Data & AI.

• Economic uncertainty, inflation, and client spending caution are expected to continue impacting demand, especially in the Talent segment.