The persistent YoY revenue decline (-15.6%) and significant EPS miss (-38.5% vs consensus) confirm the Talent segment headwinds are not abating. Monitor the Q3 2026 earnings for evidence that Data & AI sequential growth can accelerate enough to offset Talent's ongoing contraction; a continued decline in total revenue would reinforce the bearish thesis.
Price Chart
Executive Summary
Mastech Digital reported Q2 2026 revenue of $41.4M (-15.6% YoY) and a GAAP net loss of $0.1M (-$0.01 EPS), missing the Street consensus of $0.13 EPS by a wide margin. Non-GAAP EPS of $0.08 was also well below the $0.13 consensus. While the Data & AI segment showed its first sequential revenue growth since 2024 (+7.2% QoQ) and bookings improved to $13.6M, the Talent segment continued to decline (-16.2% YoY) due to client insourcing, and overall revenue remained deeply negative year-over-year. The filing also included a routine 50,000 RSU grant to the CEO and a bylaw update, neither of which changes the fundamental picture of a business in transition with declining top-line results.
Key Financial Metrics
Key Facts
- Q2 2026 revenue of $41.4M declined 15.6% YoY from $49.1M.
- GAAP net loss of $0.1M (-$0.01 EPS) vs. $0.1M profit ($0.01 EPS) in Q2 2025.
- Non-GAAP EPS of $0.08 missed the $0.13 consensus estimate by 38.5%.
- Data & AI segment revenue grew 7.2% sequentially to $13.5M, the first sequential growth since 2024.
- Talent segment revenue fell 16.2% YoY to $28.0M, driven by a 22.3% decline in billable consultants.
- Data & AI bookings totaled $13.6M in Q2 2026, up from $9.0M in Q2 2025.
- CEO Nirav Patel received a 50,000 RSU grant vesting over three years.
- Company had $56.0M in liquidity ($35.6M cash, $20.4M credit facility) with no bank debt.
Financial Impact
Revenue declined $7.7M YoY (-15.6%); GAAP EPS swung from +$0.01 to -$0.01; Non-GAAP EPS missed consensus by $0.05.
Risk Factors
- Talent segment revenue erosion from top client insourcing may accelerate.
- Macroeconomic uncertainty could further delay enterprise IT spending decisions.
- Data & AI segment sequential growth may not be sustainable or sufficient to offset Talent declines.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-337015 |
| Document: mhh-ex3_1.htm | 0001193125-26-337015 |
| Document: mhh-ex10_1.htm | 0001193125-26-337015 |
| Document: mhh-20260806.htm | 0001193125-26-337015 |
| Document: 0001193125-26-337015-index-headers.html | 0001193125-26-337015 |
| Document: 0001193125-26-337015-index.html | 0001193125-26-337015 |
| Document: 0001193125-26-337015.txt | 0001193125-26-337015 |
| 8-K Data (Synthetic) | 0001193125-26-337015 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | SC 13G/A | $6.36 | awaiting T+20 | — | $6.46 (+1.57%) |
Aug 6, 2026 11w ago | 8-K | $7.98 $7.35 | ▲ +7.89% | ▲ +8.49% | $6.46 (+19.05%) |
Jul 24, 2026 13w ago | Press Release | $7.76 $7.43 | ▼ −4.25% | ▼ −7.55% | $6.46 (−16.75%) |
May 18, 2026 23w ago | 8-K | $6.23 $7.57 | ▲ +21.51% | ▲ +19.93% | $6.46 (+3.69%) |
May 15, 2026 23w ago | 8-K | $7.14 $7.89 | ▼ −10.50% | ▼ −8.39% | $6.46 (+9.52%) |
Mar 11, 2026 32w ago | 8-K | $6.50 $6.31 | ▼ −2.92% | ▼ −4.90% | $6.46 (−0.62%) |
US Market Status
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