MHH | Market Cap: $88.9M (07/13/26)
Industry:
Commercial Services IT Services

DESCRIPTION

Mastech Digital is a small IT services firm headquartered near Pittsburgh that operates two businesses: IT staffing and data & analytics consulting. IT staffing is the larger segment (~83% of revenue), where Mastech places contract technology professionals with clients on a temporary basis, billing clients an hourly rate and capturing the spread over what it pays consultants. Mastech recruits primarily through an offshore center in Noida, India, enabling around-the-clock sourcing of U.S.-based candidates. Financial services is the dominant vertical, accounting for 60% of IT staffing revenue. Management has been deliberately shrinking headcount while pushing bill rates higher, focusing on higher-value engagements in data and AI rather than lower-margin commodity staffing. The Data & Analytics segment (~17% of revenue) operates under the Mastech InfoTrellis brand and provides consulting and managed services in data management, MDM, data governance, and analytics to large enterprises, with engagement sizes typically ranging from $0.3M to $2.5M. This segment carries higher gross margins than IT staffing and is central to management's long-term vision, though it has been declining in revenue. Mastech partners with IBM, Informatica, and Oracle for deal flow, and is expanding relationships with Google Cloud and Snowflake. Under a new CEO, Mastech is pursuing a shift toward being an AI-first IT services company focused on enterprise data modernization, supported by a cost optimization program that is redeploying savings into go-to-market and capability investments. Mastech holds minority-owned business certification, which supports vendor selection among clients with diversity spending mandates.

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