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Mastech Reports Third Quarter 2026 Results

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Second Consecutive Quarter of Sequential Revenue Growth Led by Continued Data & AI Momentum 

PITTSBURGH, Oct. 30, 2026 /PRNewswire/ — Mastech Digital, Inc. (NYSE American: MHH) (“Mastech”), a leading provider of Digital Transformation IT Services, announced today its financial results for the third quarter ended September 30, 2026. 

Third Quarter 2026 Highlights:

MASTECH DIGITAL, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Amounts in thousands)

(Unaudited)

Three Months ended September 30,

Nine Months ended September 30,

2026

2025

2026

2025

Revenues:

Data & AI

$

14,122

$

15,160

$

40,190

$

46,894

Talent

27,865

33,336

84,327

99,016

Total revenues

$

41,987

$

48,496

$

124,517

$

145,910

Gross Margin $(1):

Data & AI

$

5,719

$

6,057

$

15,854

$

18,230

Talent

6,446

7,658

19,335

22,197

Total gross margin $

$

12,165

$

13,715

$

35,189

$

40,427

Gross Margin %(1):

Data & AI

40.5

%

40.0

%

39.4

%

38.9

%

Talent

23.1

%

23.0

%

22.9

%

22.4

%

Total gross margin %

29.0

%

28.3

%

28.3

%

27.7

%

GAAP Net Income (Loss)

$

7

$

941

$

171

$

(363)

GAAP Diluted Earnings (Loss) Per Share

$

0.00

$

0.08

$

0.01

$

(0.03)

Non-GAAP Net Income

$

1,222

$

3,467

$

3,448

$

6,053

Non-GAAP Diluted Earnings Per Share

$

0.10

$

0.29

$

0.29

$

0.50

(1) Gross margin difference between the supplemental segment and consolidated results primarily reflects non-allocated severance
expense of $0.1 million and $0.3 million recorded in cost of goods sold during the third quarter of 2026 and 2025, respectively.

 

See “Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP Measures to Non-GAAP Measures” below.

Total consolidated revenues of $42.0 million during the quarter represented a decrease of 13.4% on a year-over-year basis, but an increase of 1.3% on a sequential basis from the second quarter of 2026. Data and AI segment revenues declined 6.8% on a year-over-year basis but increased 4.7% on a sequential basis from the second quarter of 2026, the second consecutive quarter of sequential growth since 2024. Data & AI segment reported bookings of $10.8 million during the quarter when compared to $8.4 million in the third quarter of 2025. Talent segment revenues declined 16.4% on a year-over-year basis, and a decrease of 0.4% on a sequential basis from the second quarter of 2026, driven by a 21.0% decrease in billable consultants since the third quarter of 2025, as a top ten client continued insourcing services we provide in this segment and we continued to exit lower-margin and non-strategic positions. Strong average bill rate of $92.37, as compared to $89.65 during the third quarter of 2025 reflected a continued focus on revenue quality.  

Management Commentary: 

Nirav Patel, Mastech’s President and Chief Executive Officer, stated, “This quarter marks a significant milestone, as we launched the new Mastech brand and our vision of the Knowledge-first Enterprise. We believe enterprises need to codify the knowledge held by their people, customers, and clients to transform with AI. We are seeing enterprises move past AI experimentation. They now want to put their own data and knowledge to work in production, and that is driving our focus on building trusted data foundations, Applied AI solutions, and the specialized talent that our clients need to deliver AI outcomes at scale.”

“We are pleased to share that our Data & AI segment delivered a second consecutive quarter of sequential revenue growth. Segment revenues grew 4.7% from the second quarter of 2026, and bookings were $10.8 million, up 29.0% from $8.4 million in the same quarter last year. Our focus on high-value work in the Data & AI segment increased gross margins this quarter by 50 basis points year-over-year to 40.5% on a Non-GAAP basis.” 

“Our differentiator is the ability to turn a client’s own data and knowledge into practical, Applied AI solutions that deliver outcomes. This quarter, we advanced our Applied AI delivery capabilities, supported by our certified and advanced partner designations, including Solutions Partner for Cloud and AI Platform status in the Microsoft AI Cloud Partner Program. These relationships and designations help us provide our customers access to skilled delivery talent and technical resources as they put AI to work at scale. We expect to continue investing in forward-leaning capabilities into 2027, as we believe they continue to enable growth and progress towards the AI engineering talent and modern data platform practices we have been building.”

Balance Sheet & Liquidity Update: 

As of September 30, 2026, Mastech had liquidity of $56.2 million, including cash and cash equivalents of $37.9 million and approximately $18.3 million of borrowing capacity available under its credit facility, with no bank debt.

Conference Call: 

Mastech will host a conference call to discuss the Company’s third quarter 2026 financial results on October 30, 2026 at 9:00 a.m. Eastern Time. Please register at https://register-conf.media-server.com/register/BI4057cc455c3848bf9bfdb0cf25216dc7 to join telephonically. Once registered, participants will receive the dial-in information and a unique PIN to access the call. The dial-in information and unique PIN will be sent to the email used to register for the call. The unique PIN is exclusive to the registrant and can only be used by one person at a time. A live audio webcast of the conference call can be accessed through the Mastech investor relations website at https://investors.mastech.com, and a webcast replay will be accessible for a limited time following the scheduled call.

About Mastech Digital, Inc.:

Founded in 1986, Mastech (NYSE American: MHH) helps organizations transform their unique enterprise knowledge into business advantage by unlocking the value embedded across their people, operations, data, and systems. Through our expertise in AI, data modernization, cloud and data platforms, and specialized technology talent, we enable enterprises to innovate faster, make smarter decisions, and achieve meaningful business outcomes. By combining trusted data foundations, AI-powered solutions, modern platforms, and expert talent, we help organizations accelerate transformation and thrive in a constantly evolving business environment. Headquartered in Pittsburgh, Pennsylvania, Mastech serves more than 250 enterprise customers globally, delivering the data foundations, AI-powered solutions, and specialized talent needed to help modern, future-ready organizations Thrive on What’s Next.

Use of Non-GAAP Measures:

This press release contains non-GAAP financial measures to supplement our financial results presented on a GAAP basis. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. Reconciliations of these non-GAAP measures to their comparable GAAP measures are included in the attached financial tables.

We believe that providing non-GAAP net income and non-GAAP diluted earnings per share offers investors useful supplemental information about the financial performance of our business, enables comparison of financial results between periods where certain items may vary independent of business performance, and allows for greater transparency with respect to key metrics used by management in operating our business. Additionally, management uses these non-GAAP financial measures in evaluating the Company’s performance.

Specifically, the non-GAAP financial measures contained herein exclude the following expense items:

Amortization of acquired intangible assets: We amortize intangible assets acquired in connection with our June 2015 acquisition of Hudson IT, our July 2017 acquisition of the services division of InfoTrellis, Inc. and our October 2020 acquisition of AmberLeaf Partners. We exclude these amortization expenses in our non-GAAP financial measures because we believe it allows investors to make more meaningful comparisons between our operating results and those of other companies within our industry and facilitates a helpful comparison of our results with other periods.

Stock-based compensation expenses: We incur material recurring expenses related to non-cash, stock-based compensation. We exclude these expenses from our non-GAAP financial measures because we believe that it provides investors with meaningful supplemental information regarding operational performance. In particular, because of varying available valuation methodologies, subjective assumptions, and the variety of award types that companies can use under ASC 718, we believe that providing non-GAAP financial measures that exclude these expenses allows investors to make more meaningful comparisons between our operating results and those of other companies within our industry and facilitate comparisons of our results with other periods.

Severance expense: From time to time, we incur severance expenses related to the termination by the Company of leadership and other key personnel. During the three and nine months ended September 30, 2026, the Company recorded severance expense of approximately $0.2 million, of which approximately $0.1 million was recognized within cost of goods sold. During the three and nine months ended September 30, 2025, the Company recorded severance expense of $1.1 million and $2.7 million, respectively, of which $0.3 million was recognized within cost of goods sold during the third quarter of 2025. The 2025 amounts reflect the departure of our former Chief Financial Officer and other leadership changes, and strategic initiatives undertaken to better align our organizational structure with our long-term growth objectives. Amounts recognized within cost of goods sold were not allocated to the reportable segments and therefore contribute to a gross margin variance between the supplemental segment presentation and the consolidated financial results. We believe that providing non-GAAP financial measures that exclude these expenses allows investors to make more meaningful comparisons between our operating results and those of other companies within our industry and facilitates comparison of our results with other periods.

Finance and accounting transition expense: During the first quarter of 2025, the Company’s Board of Directors made the decision to implement a long-term cost-cutting initiative to transition the Company’s finance and accounting functions to India. During the three and nine months ended September 30, 2025, the Company incurred $0.9 million and $1.6 million, respectively, of severance and costs related to the duplication of resources and travel during the training and knowledge transfer process. The transition was completed as of December 31, 2025, and no such costs were incurred in 2026. We believe that providing non-GAAP financial measures that exclude these expenses allows investors to make more meaningful comparisons between our operating results and those of other companies within our industry and facilitates comparison of our results with other periods.

Forward-Looking Statements:

Certain statements contained in this release are forward-looking statements based on management’s expectations, estimates, projections, and assumptions.  Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements, which include but are not limited to, projections of and statements regarding the Company’s ability to generate revenues, earnings, and cash flow, and projections of and statements regarding the Company’s operations, business, segments, expected financial results, performance, prospects, opportunities, priorities, ongoing objectives, strategies and outlook (including the timing, effectiveness and anticipated results of Company initiatives, strategies, business plans and models).  These statements are based on information currently available to the Company and it assumes no obligation to update the forward-looking statements as circumstances change.  These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.  Therefore, actual future results and trends may differ materially from what is forecasted in forward-looking statements due to a variety of factors, including, without limitation, the level of market demand for the Company’s services, the highly competitive market for the types of services offered by the Company, the impact of competitive factors on profit margins, market and general economic conditions that could cause the Company’s customers to reduce their spending for its services, the Company’s ability to create, acquire and build new lines of business, to attract and retain qualified personnel, reduce costs and conserve cash, the Company’s strategies, initiatives and expectations concerning its operations, segments and operating results, and other risks that are described in more detail in the Company’s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2025.

Investor Relations Contact:

Investors@mastechdigital.com

MASTECH DIGITAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)

September 30,

Dec 31,

2026

2025

ASSETS

Current assets:

     Cash and cash equivalents

$

37,939

$

36,533

     Accounts receivable, net

25,634

26,396

     Prepaid and other current assets

6,959

5,647

           Total current assets

70,532

68,576

Equipment, enterprise software and leasehold improvements, net

1,248

1,557

Operating lease right-of-use assets, net

2,880

2,534

Deferred income taxes

1,675

2,583

Deferred financing costs, net

24

95

Deferred compensation, net

625

1,000

Non-current deposits

511

530

Goodwill, net of impairment

27,210

27,210

Intangible assets, net of amortization

5,945

7,755

           Total assets

$

110,650

$

111,840

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

     Accounts payable

$

3,142

$

3,451

     Current portion of operating lease liability

1,151

1,283

     Accrued payroll and related costs

11,459

15,391

     Other accrued liabilities

774

939

           Total current liabilities

16,526

21,064

Long-term liabilities:

    Long-term operating lease liability, less current portion

1,601

1,138

    Long-term severance liability

–

330

           Total liabilities

18,127

22,532

Shareholders’ equity:

     Common stock, par value $0.01 per share

140

137

     Additional paid-in capital

46,381

42,515

     Retained earnings

56,598

56,427

     Accumulated other comprehensive income (loss)

(3,465)

(2,640)

     Treasury stock, at cost

(7,131)

(7,131)

          Total shareholders’ equity

92,523

89,308

           Total liabilities and shareholders’ equity

$

110,650

$

111,840

 

MASTECH DIGITAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share data)

(Unaudited)

Three Months ended September 30,

Nine Months ended September 30,

2026

2025

2026

2025

Revenues

$

41,987

$

48,496

$

124,517

$

145,910

Cost of revenues

29,938

35,035

89,444

105,737

Gross profit

12,049

13,461

35,073

40,173

Selling, general and administrative expenses

12,036

12,641

35,334

41,179

Income (loss) from operations

13

820

(261)

(1,006)

Other income/(expense), net

237

415

1,166

689

Income (loss) before income taxes

250

1,235

905

(317)

Income tax expense (benefit)

243

294

734

46

Net income (loss)

$

7

$

941

$

171

$

(363)

Earnings (loss) per share:

Basic

$

0.00

$

0.08

$

0.01

$

(0.03)

Diluted

$

0.00

$

0.08

$

0.01

$

(0.03)

Weighted average common shares outstanding:

Basic

12,029

11,762

11,956

11,761

Diluted

12,166

11,945

12,063

11,761

 

MASTECH DIGITAL, INC.

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(Amounts in thousands, except per share data)

(Unaudited)

Three Months ended September 30,

Nine Months ended September 30,

2026

2025

2026

2025

GAAP Net Income (Loss)

$

7

$

941

$

171

$

(363)

Adjustments:

Amortization of acquired intangible assets

604

650

1,811

1,949

Stock-based compensation

861

729

2,429

2,338

Severance expense

150

1,084

150

2,725

Finance and accounting transition expense

–

937

–

1,625

Income tax adjustments

(400)

(874)

(1,113)

(2,221)

Non-GAAP Net Income

$

1,222

$

3,467

$

3,448

$

6,053

GAAP Diluted Earnings (Loss) Per Share

$

0.00

$

0.08

$

0.01

$

(0.03)

Non-GAAP Diluted Earnings Per Share

$

0.10

$

0.29

$

0.29

$

0.50

Weighted average common shares outstanding:

GAAP Diluted Shares

12,166

11,945

12,063

11,761

Non-GAAP Diluted Shares

12,166

11,945

12,063

12,032

 

MASTECH DIGITAL, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(Amounts in thousands)

(Unaudited)

Three Months ended September 30,

Nine Months ended September 30,

2026

2025

2026

2025

Revenues:

Data & AI

$

14,122

$

15,160

$

40,190

$

46,894

Talent

27,865

33,336

84,327

99,016

Total revenues

$

41,987

$

48,496

$

124,517

$

145,910

Gross Margin %:

Data & AI

40.5

%

40.0

%

39.4

%

38.9

%

Talent

23.1

%

23.0

%

22.9

%

22.4

%

Total gross margin %

29.0

%

28.3

%

28.3

%

27.7

%

Segment Operating Income (Loss):

Data & AI

$

150

$

1,637

$

(779)

$

2,866

Talent

617

1,854

2,478

2,427

Subtotal

767

3,491

1,699

5,293

Amortization of acquired intangible assets

(604)

(650)

(1,811)

(1,949)

Severance expense

(150)

(1,084)

(150)

(2,725)

Finance and accounting transition expense

–

(937)

–

(1,625)

Interest income and other, net

237

415

1,167

689

Income (loss) before income taxes

$

250

$

1,235

$

905

$

(317)

(1) Gross margin difference between the supplemental segment and consolidated results primarily reflects non-allocated severance
expense of $0.1 million and $0.3 million recorded in cost of goods sold during the third quarter of 2026 and 2025, respectively.

 

Investor Relations Contact:

Investors@mastechdigital.com

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SOURCE Mastech Digital, Inc.

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HelloNation Article Explains Root Canal Treatment With Dental Expert Dr. Carey Norton

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The Article Examines When an Infected or Damaged Tooth Can Be Restored and When Tooth Extraction May Be Necessary

DACULA, Ga., Oct. 30, 2026 /PRNewswire/ — When can a tooth be saved with a root canal instead of being extracted? HelloNation published an article featuring insights from Dr. Carey Norton of Dacula Family Dentistry that answers this question.

The HelloNation article explains that root canal treatment can remove damaged or infected tissue while preserving the natural tooth. However, treating an infected tooth is only part of the decision. The dentist must also determine whether enough healthy tooth structure remains to support a lasting restoration.

According to the article, a tooth commonly needs a filling or dental crown after root canal treatment. Enough solid tooth structure must remain above and below the gumline to support that restoration. Dental Expert Dr. Carey Norton is featured as the source of insights explaining why the tooth’s overall condition matters when evaluating whether it can be saved.

The article notes that the location and depth of decay can affect the treatment decision. Deep decay may reach the pulp while leaving enough enamel and dentin for a dental crown. Decay extending far below the gumline can make a secure restoration more difficult.

Cracks and fractures are another important consideration. The article describes how some cracked teeth may be treated with a root canal and crown when damage is limited. A vertical root fracture presents a different problem because bacteria may continue to enter tissues surrounding the root, making tooth extraction more likely.

The HelloNation article also examines the health of the bone and gums supporting the tooth. Periodontal disease can cause bone loss and loosen a tooth. Even when root canal treatment removes infection successfully, inadequate periodontal support can make long-term stability difficult.

Dental imaging helps dentists evaluate these conditions before recommending treatment. The article explains that X-rays may reveal infection around the root, bone loss, deep decay, earlier dental work, and certain fractures. Three-dimensional dental imaging may sometimes provide additional information about root structure and surrounding bone.

Symptoms alone do not determine whether a tooth can be saved. The article notes that severe pain, swelling, or sensitivity can occur in an infected tooth that remains treatable. A tooth with little pain may still have extensive structural damage that limits restoration options.

Previous treatment also affects the evaluation. A tooth with a large filling, dental crown, or earlier root canal may have less natural structure remaining. Root canal retreatment can sometimes address persistent infection, but the article explains that the tooth must still be strong enough to support another restoration.

Extraction becomes more likely when decay or fractures leave too little usable structure, the root is severely damaged, or substantial supporting bone has been lost. The article also notes that dentists may consider extraction after unsuccessful prior treatment when further care is unlikely to provide a predictable result.

The article concludes that dentists consider restorability, root condition, periodontal disease, infection, bone health, and dental imaging together. The goal is to determine whether treatment can preserve a stable, functional tooth with a reasonable long-term outlook. By outlining these factors, the article featuring Dental Expert Dr. Carey Norton helps readers understand why removing an infection does not automatically mean a tooth can be saved.

When Can a Tooth Be Saved With a Root Canal Instead of Being Extracted? features insights from Dr. Carey Norton, Dental Expert of Dacula, GA, in HelloNation.

About HelloNation

HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.

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SOURCE HelloNation

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SETTLE SECURES UP TO $100 MILLION IN FORWARD-FLOW FINANCING FROM 3JANE

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NEW YORK, Oct. 30, 2026 /PRNewswire/ — Settle, a leading provider of inventory financing for consumer and ecommerce brands, today announced a forward-flow agreement with 3Jane, a structured credit platform. The facility provides $50 million in initial capacity, with an option to expand to $100 million. 3Jane has purchased $18 million of Settle’s existing loans and will purchase eligible new loans on a going-forward basis.

Settle has provided more than $4 billion in funding to thousands of consumer and ecommerce brands. Its loans finance inventory purchases and supplier invoices: Settle pays suppliers upfront, and brands repay through extended payment terms or scheduled installments. The forward flow frees up capital for new originations as loans are sold, expanding Settle’s lending capacity.

“Our customers need to pay for inventory before they can sell it,” said Alek Koenig, CEO and Founder of Settle. “The forward flow with 3Jane gives us a more capital-efficient way to finance that gap at scale.”

3Jane provides capital to fintech lenders through a revolving, tranched conduit powered by blockchain technology. The model is designed to deliver the economics of private, unrated securitization without requiring each originator to establish a costly standalone program.

“Settle has built a lending business serving thousands of consumer brands,” said Jacob Chudnovsky, CEO of 3Jane. “3Jane uses stablecoin liquidity to finance those loans through a structure designed to lower Settle’s financing costs.”

About Settle
Settle is a cash flow management and working capital platform purpose-built for product businesses. The company’s integrated suite, including bill pay, AP automation, invoice tracking, and flexible working capital financing, gives brands the tools to manage their payables and access the capital they need to grow. With total originations exceeding $4 billion, Settle has helped thousands of businesses across the United States unlock the capital they need to scale. Settle is backed by leading investors including Ribbit Capital, Kleiner Perkins, Caffeinated Capital, Stripes, Founders Fund, SciFi Ventures, Citi Ventures, and Activant Capital. Learn more at settle.com.

About 3Jane
3Jane is a cryptonative structured credit platform. By leveraging a revolving, tranched conduit on crypto rails, 3Jane provides fintech originators with access to warehouse lines, participations, and forward-flow programs via its USD3 and sUSD3 yield products. 3Jane is backed by leading investors including Paradigm, Wintermute, and Coinbase Ventures.

MEDIA CONTACT
Settle Communications
press@settle.com

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SOURCE Settle Inc.

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OPay Makes History with New York Stock Exchange Listing

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NEW YORK, Oct. 30, 2026 /PRNewswire/ — OPay Limited (“OPay” or the “Company”), a digital financial platform built to address the challenges of emerging markets, today commences trading under the ticker “OPAY” of its American Depositary Shares (“ADS”) on the New York Stock Exchange (“NYSE”).

Lars Boilesen, Co-Chief Executive Officer of OPay, said:

“Today is a significant moment for OPay and Nigeria, where we launched OPay in 2018. Since then, we have pioneered seamless digital payments to become the country’s leading digital financial platform, serving over 50 million users across Nigeria, Egypt, Pakistan, and Indonesia. I’d like to thank our employees, partners, and customers for their trust and commitment in what we are building together, and we will continue to further our mission of using technology to advance financial inclusion.”

Stephen Wen, Co-Chief Executive Officer of OPay, said:

“As the #1 finance app by users across Africa and the Middle East, OPay is positioned to grow across large emerging markets with young, digital-first populations with rising smart phone penetration. In Nigeria, more than 60% of the population are underserved by traditional banks and rely on cash. As we grow, we will stay focused on solving our customers’ pain points to make financial services accessible and convenient.”

James Perry, Chief Financial Officer of OPay, said:

“OPay enters the public markets from a position of financial strength, reaching $1 billion revenue run rate in Q2 2026. For the first six months of 2026, we grew 137% year-on-year and reached 19% net margin. Our model translates high growth into profitability at scale. We are committed to deploying the proceeds of this listing with discipline by investing in the technology to drive growth in Nigeria and other markets across Africa, to deliver longer-term shareholder value.”

The Company is growing beyond payments into a broader financial and lifestyle platform – offering savings, credit, and merchant services – with the ambition to serve billions of users and millions of merchants in the coming decades, generating economic opportunity and employment across the communities it serves.

-END-

About OPay

Launched in Nigeria in 2018, OPay is an integrated digital financial platform serving over 50 million users across Nigeria, Egypt, Pakistan, and Indonesia. OPay connects millions of consumers and businesses outside the traditional banking system to payments, transfers, savings, credit, and merchant services that make everyday financial transactions simpler, safer, and more accessible. For more information, visit www.opay.ltd.

Cautions Concerning Forward-Looking Statements

This release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of OPay. Risks and uncertainties include, but are not limited to: the satisfaction of customary closing conditions relating to the IPO; capital market risks; and the impact of general economic or industry conditions. For a further list and descriptions of the risks, uncertainties and other factors that affect OPay’s business, please review its filings with the Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date of this press release. OPay does not undertake to update any forward-looking statement as a result of new information or future events or developments.

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SOURCE OPay Limited

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