$MHH

Mastech Holdings, Inc.

CIK:0001437226|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 41,447	$ 49,097	$ 82,530	$ 97,414
Cost of revenues	29,448	35,277	59,506	70,702
Gross profit	11,999	13,820	23,024	26,712
Selling, general and administrative expenses	12,324	13,793	23,298	28,538
Income (loss) from operations	(325)	27	(274)	(1,826)
Interest income (expense), net	260	190	548	305
Other income (expense), net	63	(7)	381	(31)
Income (loss) before income taxes	(2)	210	655	(1,552)
Income tax expense (benefit)	98	75	491	(248)
Net income (loss)	$ (100)	$ 135	$ 164	$ (1,304)
Earnings (loss) per share:
Basic earnings per share	$ (0.01)	$ 0.01	$ 0.01	$ (0.11)
Diluted earnings per share	$ (0.01)	$ 0.01	$ 0.01	$ (0.11)
Weighted average common shares outstanding:
Basic	12,011	11,767	11,919	11,760
Diluted	12,011	11,964	11,984	11,760

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
OPERATING ACTIVITIES:
Net income (loss)	$ 164	$ (1,304)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization	1,609	1,673
Bad debt expense	(6)	36
Interest amortization of deferred financing costs	48	47
Stock-based compensation expense	1,568	1,609
Deferred income taxes, net	665	(376)
Operating lease assets and liabilities, net	54	20
Amortization of deferred compensation	250	250
Unrealized FX on monetary items	22	73
Working capital items:
Accounts receivable and unbilled receivables	(1,338)	902
Prepaid and other current assets	(235)	298
Accounts payable	(296)	(1,119)
Accrued payroll and related costs	(3,253)	(2,004)
Other accrued liabilities	(161)	311
Deferred revenue	(21)	(42)
Net cash flows provided by (used in) operating activities	(930)	374
INVESTING ACTIVITIES:
Recovery of (payment for) non-current deposits	(14)	(19)
Capital expenditures	(130)	(169)
Net cash flows (used in) investing activities	(144)	(188)
FINANCING ACTIVITIES:
Proceeds from the issuance of common shares	28	70
Purchase of treasury stock	0	(114)
Proceeds from the exercise of stock options	766	108
Net cash flows provided by (used in) financing activities	794	64
Effect of exchange rate changes on cash and cash equivalents	(650)	(59)
Net change in cash and cash equivalents	(930)	191
Cash and cash equivalents, beginning of period	36,533	27,742
Cash and cash equivalents, end of period	$ 35,603	$ 27,933

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 35,603,000	$ 36,533,000
Accounts receivable, net of allowance for credit losses of $269 in 2026 and $275 in 2025	21,784,000	20,648,000
Unbilled receivables	5,956,000	5,748,000
Prepaid and other current assets	5,930,000	5,647,000
Total current assets	69,273,000	68,576,000
Equipment, enterprise software, and leasehold improvements, at cost:
Equipment	3,813,000	3,817,000
Enterprise software	4,189,000	4,185,000
Leasehold improvements	751,000	738,000
Total equipment, enterprise software, and leasehold improvements	8,753,000	8,740,000
Less – accumulated depreciation and amortization	(7,507,000)	(7,183,000)
Net equipment, enterprise software, and leasehold improvements	1,246,000	1,557,000
Operating lease right-of-use assets, net	2,255,000	2,534,000
Deferred income taxes	1,705,000	2,583,000
Deferred financing costs, net	47,000	95,000
Deferred compensation, net	750,000	1,000,000
Non-current deposits	518,000	530,000
Goodwill, net of impairment	27,210,000	27,210,000
Intangible assets, net of amortization	6,549,000	7,755,000
Total assets	109,553,000	111,840,000
Current liabilities:
Accounts payable	3,139,000	3,451,000
Accrued payroll and related costs	11,734,000	15,391,000
Current portion of operating lease liability	1,274,000	1,283,000
Other accrued liabilities	726,000	898,000
Deferred revenue	20,000	41,000
Total current liabilities	16,893,000	21,064,000
Long-term liabilities:
Long-term operating lease liability, less current portion	851,000	1,138,000
Long-term severance liability	0	330,000
Total liabilities	17,744,000	22,532,000
Commitments and contingent liabilities (Note 5)
Shareholders' equity:
Preferred Stock, no par value; 20,000,000 shares authorized; none outstanding	0	0
Common Stock, par value $.01; 100,000,000 shares authorized and 14,052,048 shares issued as of June 30, 2026 and 13,715,016 shares issued as of December 31, 2025	140,000	137,000
Additional paid-in-capital	45,490,000	42,515,000
Retained earnings	56,591,000	56,427,000
Accumulated other comprehensive income (loss)	(3,281,000)	(2,640,000)
Treasury stock, at cost; 2,022,864 shares as of June 30, 2026 and 2,022,864 shares as of December 31, 2025	(7,131,000)	(7,131,000)
Total shareholders' equity	91,809,000	89,308,000
Total liabilities and shareholders' equity	$ 109,553,000	$ 111,840,000