Mastech Digital, Inc. filed its third-quarter 2026 earnings release on October 30, 2026, reporting total revenues of $41,987 thousand for the three months ended September 30, 2026, with sequential growth for the second consecutive quarter.

Key Highlights

  • Total revenues: $41,987 thousand in Q3 2026, down 13.4% year-over-year but up 1.3% sequentially from Q2 2026.
  • Data and AI segment: Revenues of $14,122 thousand, down 6.8% year-over-year but up 4.7% sequentially, marking the second consecutive quarter of sequential growth since 2024.
  • Data and AI bookings: $10.8 million in Q3 2026, compared to $8.4 million in Q3 2025, an increase of 29.0% year-over-year according to the filing.
  • GAAP net income: $7 thousand for Q3 2026, versus $941 thousand in Q3 2025; GAAP diluted earnings per share of $0.00.
  • Non-GAAP net income: $1,222 thousand for Q3 2026, with non-GAAP diluted earnings per share of $0.10.
  • Liquidity: $56.2 million as of September 30, 2026, including $37.9 million in cash and cash equivalents and approximately $18.3 million in borrowing capacity, with no bank debt.
  • Talent segment average bill rate: $92.37 in Q3 2026, compared to $89.65 in Q3 2025.

Mastech Digital Q3 2026 Segment and Margin Detail

According to the filing, Mastech Digital (NYSE American:MHH) reported total consolidated revenues of $41,987 thousand for the three months ended September 30, 2026, a decrease of 13.4% compared to the same period in 2025. On a sequential basis, however, revenues increased 1.3% from the second quarter of 2026. The company attributed the year-over-year decline in the Talent segment, which posted revenues of $27,865 thousand, in part to a 21.0% decrease in billable consultants since Q3 2025, as the filing noted that "a top ten client continued insourcing services we provide in this segment" and that the company "continued to exit lower-margin and non-strategic positions."

The Data and AI segment reported revenues of $14,122 thousand in Q3 2026, compared to $15,160 thousand in Q3 2025. Gross margin for the Data and AI segment was 40.5% in Q3 2026, up from 40.0% in Q3 2025. Total gross margin was 29.0% in Q3 2026 versus 28.3% in the prior-year quarter. The filing noted that gross margin figures for the segments exclude non-allocated severance expense of approximately $0.1 million recorded in cost of goods sold during Q3 2026. For the nine months ended September 30, 2026, total revenues were $124,517 thousand, down from $145,910 thousand in the same period of 2025.

On a non-GAAP basis, the company reported net income of $1,222 thousand and diluted earnings per share of $0.10 for Q3 2026, compared to non-GAAP net income of $3,467 thousand and diluted earnings per share of $0.29 in Q3 2025. The non-GAAP figures exclude amortization of acquired intangible assets, stock-based compensation, and severance expense, as described in the filing. The company recorded severance expense of approximately $0.2 million during the three and nine months ended September 30, 2026.

What Was Disclosed

Mastech Digital disclosed Q3 2026 financial results showing year-over-year revenue declines in both segments but sequential growth in total revenues and in the Data and AI segment. The company also reported liquidity of $56.2 million and no bank debt as of September 30, 2026.