Start here if you're new
what it is
Mastech hires tech workers and runs digital projects for U.S. companies.
how it gets paid
Last year Mhh made $199M in revenue. IT staffing services was the main engine at $112M, or 56% of sales.
what just happened
Revenue hit $146M, but EPS still came in at -$0.03.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
123.4x trailing p/e — you're paying up for this one
3.9% return on capital — nothing to write home about
$0.05 fy2025 eps est
xvary composite: 44/100 — below average
What they do
Mastech hires tech workers and runs digital projects for U.S. companies.
You are buying a 1,525-person hiring machine, not a software app. 175 recruiters and sourcers keep U.S.-based candidates moving into client projects. Leaving is painful because a customer would have to rebuild that pipeline.
How they make money
$199M
annual revenue
IT staffing services
$112M
Digital transformation services
$40M
Data management and analytics
$25M
Other project services
$22M
The products that matter
places contract IT talent
IT Staffing
part of a $191.4M revenue base
this is the core business, but the page only gives companywide figures: $191.4M in revenue, down 3.8%, with 27.5% gross margin. That tells you staffing volume matters more than margin theory right now.
core revenue engine
data and analytics consulting
Digital Transformation Services
turnaround focus for 2026
management is pushing this segment as part of the reset, but both operating segments declined last year. Until that changes, it is a story attached to a $72M market cap, not proof of a new growth curve.
AI-first pitch
cost reset and capital allocation
Turnaround Execution
$5M transition cost in 2025
the company posted a GAAP loss after $5M in severance and transition costs, even while non-GAAP net income held at $8.6M. If those costs fade and sales stabilize, the earnings picture can look very different. If not, this stays a low-quality multiple trap.
what matters next
Key numbers
$199M
annual revenue
That is the whole pie before the stock trades like a premium software name.
123.4x
trailing p/e
You pay 123.4 years of earnings for one year of earnings.
1.9%
operating margin
The business keeps 1.9 cents of every dollar after operating costs.
3.9%
return on capital
Each dollar put into the business earns 3.9 cents back.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 25 / 100
- long-term debt $2M (2% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for MHH right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue hit $146M, but EPS still came in at -$0.03.
Revenue was up 201% vs. prior year, but the quarter still posted a loss. Gross margin held at 27.5%, which helped, but not enough to turn EPS positive.
$146M
revenue
-$0.03
eps
27.5%
gross margin
the number that mattered
Revenue rose 201% vs. prior year to $146M, but EPS stayed negative at -$0.03.
source: company earnings report, 2026
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What could go wrong
the #1 risk is continued revenue decline in commodity IT staffing and consulting.
med
revenue erosion in the core business
2025 revenue fell 3.8% to $191.4M and both operating segments weakened. when a company this small loses sales across the board, the turnaround clock starts ticking fast.
impact: if 2026 revenue stays below $191.4M, the growth reset looks more like a slogan than a strategy.
med
leadership transition does not produce cleaner earnings
the company booked $5M in severance and transition costs in 2025, up from $2.1M in 2024, tied to CEO and CFO changes. you can excuse one messy year. the market will not excuse two.
impact: if those costs do not roll off, the gap between $8.6M non-GAAP profit and GAAP profitability stays wide.
high
universal shelf becomes real dilution
the company has a universal shelf registration for up to $35M. against a $72M market cap, that is nearly half the current equity value sitting on the table.
impact: using that shelf while the stock trades near $6 would be painful for existing shareholders.
low
buyback optics outweigh buyback reality
a new $5M repurchase authorization sounds helpful, but it is small relative to the operating problem. buybacks do not fix falling demand for staffing and consulting work.
impact: if revenue keeps shrinking, the market will treat repurchases as cosmetics, not a catalyst.
the combined risk picture is simple: a 3.8% sales decline, $5M of transition costs, and a $35M potential shelf against a $72M market cap leave you exposed to both operating disappointment and dilution.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings report
expected on may 15, 2026. you want one thing first: revenue at or above the $191.4M annual run rate.
metric
does gross margin stay above 27.5%
margin improved by 80 basis points, which helped hold adjusted earnings together. if pricing or utilization weakens, that support disappears fast.
risk
whether the $35M shelf stays unused
the filing creates flexibility, but at today's $72M market value it also creates real dilution risk. no use is good news here.
trend
buyback versus business momentum
the new $5M repurchase plan matters less than whether the AI-first strategy turns into cleaner growth. capital return is nice. demand recovery is the actual catalyst.
Analyst rankings
earnings predictability
20 / 100
in human-speak: analysts have a hard time modeling this business because staffing demand turns quickly and recent results have been noisy.
price stability
25 / 100
the stock has not behaved like a stable compounder. it trades like a small cap people revisit only when the story changes.
balance sheet strength
B
that means the company has some financial room, but the balance sheet is not strong enough to make weak execution irrelevant.
source: institutional data
Institutional activity
institutional ownership data for MHH is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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