| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 41.08 | 15.0% |
| Total Income | 41.08 | 15.0% |
| Expenditure | 41.03 | 18.2% |
| PBT | 0.66 | 137.5% |
| Net Profit | 0.26 | 118.1% |
| OPM | 0.12% | 3.96pp |
| NPM | 0.64% | 3.62pp |
| EPS | 0.02 | 116.7% |
Mastech Digital Reports Q1 2026 Revenue of $41.0 Million
15 May 2026 · 15 May, 6:41 pm
Summary
Mastech Digital announced its financial results for the first quarter ended March 31, 2026. Total consolidated revenues were $41.0 million, a 15% decrease year-over-year. The Data & AI segment experienced a 21% revenue decline due to cautious client spending, while the Talent segment's revenues decreased by 11.8%. The company's transformation initiative, EDGE, continues to execute ahead of expectations. As of March 31, 2026, Mastech Digital had liquidity of $54.9 million.
Key Highlights
- 1
Mastech Digital reported total consolidated revenues of $41.0 million during the first quarter of 2026, a decrease of 15% year-over-year.
- 2
Data and AI segment revenues declined 21% compared to the first quarter of 2025, impacted by cautious client spending.
- 3
The company saw positive new bookings momentum with a total contract value of $7.0 million in Q1 2026, compared to $3.7 million in Q1 2025.
- 4
Talent segment revenues decreased by 11.8% compared to the first quarter of 2025, driven by a 20.8% decrease in billable consultants.
- 5
The average bill rate was strong at $90.91, compared to $87.82 during the first quarter of 2025.
- 6
GAAP Net Income was $264 thousand, with GAAP diluted earnings per share at $0.02.
- 7
As of March 31, 2026, Mastech Digital had liquidity of $54.9 million, including cash and cash equivalents of $33.6 million.
Management Comments
Nirav Patel
"We continued to make progress during the first quarter against our transformation plan. A critical step in that journey was the realignment of our business into two new segments: Talent and Data & AI. As part of this effort, we have realigned certain clients more closely with our Data & AI business, a move we believe strengthens our integrated offerings and reinforces our position as a full-service provider. We believe this structure better reflects how we serve our clients and how we intend to create long-term value." "We believe geopolitical events and ongoing conflicts have created an environment of compounding uncertainty, and we are seeing enterprises respond with continued caution in their technology spending. While broad-based expansion in discretionary budgets has remained limited, organizations have continued to allocate toward strategic AI initiatives - a reflection that AI investment decisions, while deliberate, remain a priority. We plan to continue monitoring customer spending patterns as the environment evolves." From the outset, we have been clear that savings had to come ahead of our investments. We are pleased that our transformation initiative, EDGE (Efficiencies Driving Growth and Expansion) announced in the third quarter of 2025, has continued to execute ahead of our expectations."
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