The earnings call revealed a mixed performance with strategic initiatives like the EDGE program and strong liquidity position showing promise for future growth. However, significant declines in both revenue segments and consultant headcount pose challenges. The company is focusing on high-value engagements and operational efficiency, yet immediate results are tempered by current market conditions.
Company Guidance
During the Mastech Digital, Inc. Third Quarter 2025 Earnings Conference Call, management emphasized their strategic focus on quality over quantity, as evidenced by a 4% increase in average bill rates to $86.60 and record gross margins of 24.8% in the IT Staffing Services segment, despite a 11.6% reduction in billable consultant headcount. The company reported a year-over-year revenue decline of 6.4% to $48.5 million, with IT Staffing Services revenue down 4.4% and Data and Analytics Services revenue down 15.8%. Mastech Digital launched the EDGE program—Efficiencies Driving Growth and Expansion—aimed at optimizing their operating model, which has already improved operational efficiency and resource alignment. The program focuses on cost diagnostics, process simplification, and disciplined spend management, resulting in a 280 basis point decrease in SG&A as a percentage of revenue. Despite a GAAP net income decrease to $0.9 million from $1.9 million, adjustments for non-GAAP measures show net income increased to $3.5 million from $2.8 million year-over-year. The company also repurchased approximately 192,000 shares, reflecting their commitment to returning capital to shareholders. Management did not provide future guidance, maintaining a focus on strategic investments in AI and data modernization to drive long-term sustainable growth.
Launch of EDGE Program
Introduction of the EDGE initiative aimed at optimizing the organization and operating model, focusing on revenue quality, process simplification, and disciplined spend management.
Record Gross Margins
Achieved Mastech's record gross margins of 24.8% in the IT Staffing Services segment due to disciplined pricing and higher-value engagements.
Non-GAAP Financial Performance
Non-GAAP net income increased to $3.5 million or $0.29 per diluted share from $2.8 million or $0.23 per diluted share in the prior year period.
Strong Liquidity Position
Ended the quarter with $32.7 million in cash, no bank debt, and $20.8 million available under the credit facility.
Mastech Holdings (MHH) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
MHH Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Nov 12, 2025
$7.01
$7.39
+5.42%
Aug 13, 2025
$7.29
$7.55
+3.57%
May 16, 2025
$8.51
$8.10
-4.82%
Feb 19, 2025
$12.87
$12.15
-5.59%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Mastech (MHH) report earnings?
Mastech (MHH) is schdueled to report earning on Feb 11, 2026, Before Open (Confirmed).
What is Mastech (MHH) earnings time?
Mastech (MHH) earnings time is at Feb 11, 2026, Before Open (Confirmed).
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