Mastech Digital (MHH) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $41.987M, down 13.4% YoY but up 1.3% sequentially; Data & AI recorded a second consecutive quarter of sequential growth.

• GAAP net income was $7K versus $941K a year earlier; non-GAAP net income was $1.222M, or $0.10 per diluted share.

• Strategy prioritizes Applied AI, Modern Data, AI governance, and measurable client outcomes through the Knowledge-first Enterprise vision.

Financial highlights

• Revenue was $41.987M versus $48.495M YoY; gross profit was $12.165M versus $13.461M.

• Non-GAAP operating profit was $1.628M versus $4.220M; GAAP operating profit was $13K versus $820K.

• Non-GAAP net income was $1.222M versus $3.467M; non-GAAP diluted EPS was $0.10 versus $0.29.

• Nine-month revenue was $124.5M versus $145.9M; GAAP net income was $171K versus a $363K loss, while non-GAAP net income was $3.4M versus $6.1M.

Outlook and guidance

• No guidance will be provided; investment in talent, Applied AI, AI engineering, and modern data capabilities is expected to continue into 2027.

• Q4 may see holiday slowdowns and year-end contract completions; management views client insourcing and exits from low-margin staffing positions as largely behind it.

• 2026 priorities include improving revenue quality, building Data & AI bookings, deepening strategic relationships, and shifting toward outcome-based engagements.