Free cash flow remains highly unstable, swinging from a positive 13.0% margin in 2025Q3 to a negative 7.9% in 2026Q1, exacerbated by a $5.7 million working capital outflow.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Cash from Operations | 10.97M | 11.13M | 7.19M | 15.98M | 12.62M | 5.22M | 21.23M | 16.08M | -471K | 3.36M | 2.29M | 3.03M | 3.25M | 3.21M | 997K | 378K | 354K | 2.71M | 5.01M | 5.57M | 8.63M |
| Operating CF Margin % | - | 5.82% | 3.62% | 7.95% | 5.21% | 2.35% | 10.94% | 8.31% | -0.27% | 2.27% | 1.74% | 2.45% | 2.87% | 3% | 0.98% | 0.42% | 0.49% | 3.82% | 5.18% | 5.32% | 7.74% |
| Operating CF Growth % | 277.74% | 54.82% | -54.99% | 26.66% | 141.85% | -75.43% | 32% | 3514.86% | -114.03% | 46.47% | -24.28% | -6.95% | 1.31% | 222.07% | 163.76% | 6.78% | -86.95% | -45.84% | -10.06% | -35.48% | - |
| Net Income | 2.31M | 609K | 3.4M | -7.14M | 8.71M | 12.22M | 9.86M | 11.14M | 6.69M | 1.63M | 2.52M | 2.75M | 3.42M | 3.81M | 2.14M | 1.11M | 663K | 1.4M | 3.52M | 5.44M | 6.94M |
| Depreciation & Amortization | 3.29M | 3.32M | 3.5M | 3.85M | 4.2M | 3.98M | 3.59M | 3.43M | 3.18M | 1.94M | 1.02M | 660K | 143K | 153K | 203K | 181K | 180K | 223K | 314K | 320K | 251K |
| Stock-Based Compensation | 2.97M | 3.12M | 2.2M | 3.08M | 2.23M | 2.21M | 0 | 936K | 470K | 381K | 408K | 262K | 330K | 532K | 242K | 228K | 287K | 279K | 66K | 0 | 0 |
| Deferred Taxes | -170K | 0 | -578K | -1.75M | 635K | 1.02M | -1.82M | 1.3M | 307K | -166K | 55K | -1K | 59K | -131K | 102K | 2K | 140K | 104K | 136K | -193K | -152K |
| Other Non-Cash Items | -1.14M | -3.27M | 935K | 5.42M | -256K | -2.49M | 2.31M | -5.79M | -1.2M | 123K | 113K | 85K | -12K | 811K | 125K | -108K | -80K | 121K | 304K | 0 | 62K |
| Working Capital Changes | 3.7M | 7.35M | -2.27M | 12.51M | -2.9M | -11.73M | 7.29M | 5.05M | -9.92M | -549K | -1.82M | -732K | -690K | -1.96M | -1.81M | -1.04M | -836K | 588K | 665K | 0 | 1.53M |
| Change in Receivables | 4.4M | 5.01M | -1.41M | 12.54M | 1.02M | -11.39M | 2.13M | 5.65M | -7.43M | -3.32M | -1.99M | -4.02M | 66K | -2.92M | -1.78M | -2.08M | -1.67M | 1.91M | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.65M | -1.42M | 854K | 0 | 2.4M | -333K | 901K | 0 | 484K | 0 | -460K | 0 | 0 | 0 |
| Change in Payables | -351K | -1.22M | 39K | 186K | -479K | 2.37M | -1.61M | -100K | -901K | 1.69M | -250K | 699K | -495K | 176K | -325K | -386K | 982K | -801K | -419K | 0 | 0 |
| Cash from Investing | -434K | -486K | -941K | -216K | -818K | -2.08M | -9.63M | -879K | -1.06M | -35.93M | -38K | -17.12M | -733K | 910K | -154K | -231K | -1.28M | -133K | -149K | -188K | -303K |
| Capital Expenditures | -328K | -376K | -941K | -335K | -835K | -1.9M | -298K | -1.01M | -771K | -1.13M | -105K | -168K | -679K | -100K | -150K | -231K | -134K | -148K | -124K | -126K | -303K |
| CapEx % of Revenue | 0.18% | 0.2% | 0.47% | 0.17% | 0.34% | 0.85% | 0.15% | 0.52% | 0.44% | 0.76% | 0.08% | 0.14% | 0.6% | 0.09% | 0.15% | 0.26% | 0.19% | 0.21% | 0.13% | 0.12% | 0.27% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | -9.35M | 0 | 0 | -34.8M | 0 | -16.99M | 0 | 0 | 0 | 0 | -1.15M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -106K | -110K | 0 | 119K | 17K | -189K | 9K | 135K | -285K | -8K | 67K | 31K | -54K | 1.03M | -4K | -200 | -1.3K | 15K | -200 | -62K | 0 |
| Cash from Financing | -469K | -1.13M | 654K | -1.58M | -10.41M | -4.09M | -6.71M | -13.39M | 550K | 34.23M | -2.27M | 12.38M | -376K | -4.36M | -5.94M | -726K | 146K | 173K | -2.02M | -9.23M | -7.4M |
| Debt Issued (Net) | 0 | 0 | 0 | -1.1M | -12M | -4.4M | -8.27M | -13.55M | 523K | 28.61M | -2.6M | 12.54M | -12K | -2.6M | 2.61M | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -891K | -1.13M | 143K | -414K | 263K | 301K | 1.55M | 155K | -20K | 5.98M | -13K | -206K | -784K | -16K | -2.55M | -616K | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.12M | -6.68M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.25M | -2.25M | -80K | -618K | 0 | 0 | 0 | -13K | -20K | -20K | -13K | -206K | -784K | -16K | -2.55M | -616K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 422K | 0 | 511K | -64K | 1.32M | 6K | 0 | 7K | 47K | -365K | 342K | 45K | 420K | 381K | 682K | -110K | 146K | 173K | -2.02M | -9.23M | -7.4M |
| Net Change in Cash | 8.88M | 8.79M | 6.59M | 14.09M | 435K | -1.05M | 4.7M | 1.69M | -1.18M | 1.65M | -19K | -1.72M | 2.14M | -235K | -5.1M | -579K | -779K | 2.75M | 2.84M | -3.85M | 926K |
| Free Cash Flow | 10.64M | 10.76M | 6.25M | 15.64M | 11.78M | 3.32M | 20.93M | 15.07M | -1.24M | 2.23M | 2.19M | 2.86M | 2.57M | 3.11M | 847K | 147K | 220K | 2.56M | 4.88M | 5.44M | 8.33M |
| FCF Margin % | 5.78% | 5.62% | 3.14% | 7.78% | 4.86% | 1.5% | 10.78% | 7.79% | -0.7% | 1.51% | 1.66% | 2.32% | 2.27% | 2.91% | 0.83% | 0.16% | 0.31% | 3.61% | 5.05% | 5.2% | 7.47% |
| FCF Growth % | 124.19% | 72.12% | -60.04% | 32.79% | 254.71% | -84.14% | 38.91% | 1313.37% | -155.7% | 1.97% | -23.5% | 11.07% | -17.26% | 267.3% | 476.19% | -33.18% | -91.42% | -47.49% | -10.26% | -34.65% | - |
| FCF per Share | 0.89 | 0.90 | 0.52 | 1.35 | 0.98 | 0.28 | 1.75 | 1.34 | -0.11 | 0.22 | 0.24 | 0.32 | 0.29 | 0.36 | 0.10 | 0.02 | 0.02 | 0.28 | 0.54 | 0.60 | 0.92 |
| FCF Conversion (FCF/Net Income) | 4.60x | 18.28x | 2.11x | -2.24x | 1.45x | 0.43x | 2.15x | 1.44x | -0.07x | 2.06x | 0.91x | 1.10x | 0.95x | 0.84x | 0.47x | 0.34x | 0.53x | 1.94x | 1.42x | 1.02x | 1.24x |
| Interest Paid | 0 | 0 | 0 | 43K | 324K | 623K | 0 | 1.78M | 2.06M | 925K | 430K | 243K | 116K | 65K | 40K | 113K | 22K | 20K | 4K | 0 | 0 |
| Taxes Paid | 0 | 0 | 2.23M | 1.36M | 2.16M | 3.83M | 0 | 2.63M | 2.03M | 1.51M | 2.3M | 309K | 1.63M | 2.27M | 1.09M | 791K | 276K | 757K | 980K | 0 | 0 |
Cyclical IT Spending Sensitivity
As reported in recent financial statements, MHH's operating cash flow frequently diverges from net income, evidenced by a volatile OCF/NI ratio that reached -11.98 in 2026Q1, suggesting that reported accounting profits are not currently translating into meaningful cash generation for the business.
The significant gap between net income and operating cash flow indicates that accruals and working capital swings are heavily distorting the company's earnings quality. Investors should monitor whether this disconnect is a temporary timing issue or a structural inability to convert service revenue into realized cash.
Based on MHH's reported figures, free cash flow margins have exhibited extreme instability, swinging from a positive 13.0% in 2025Q3 to a negative 7.9% in 2026Q1, which highlights the firm's vulnerability to cyclical revenue contractions and the resulting pressure on internal cash generation.
The erratic FCF trajectory suggests that the company lacks the operational scale to buffer against revenue declines. This inconsistency makes it difficult to rely on internal cash flow as a sustainable funding source for future growth initiatives or capital returns.
According to quarterly cash flow data, MHH experienced a significant $5.7 million working capital outflow in 2026Q1, a sharp reversal from the $3.0 million inflow seen in 2025Q4, indicating that collection cycles and payables management are currently creating substantial pressure on the firm's liquidity.
The sensitivity of cash flow to working capital changes suggests that the company's cash position is highly dependent on the timing of client payments. Persistent outflows in this area may indicate challenges in managing receivables or an inefficient billing cycle that warrants further investigation.
Financial disclosures reveal that stock-based compensation remains a consistent add-back, totaling $750,000 in 2026Q1, which effectively masks the true cash cost of talent acquisition and retention in an environment where operating cash flow is already struggling to remain positive.
By relying on SBC to bolster reported figures, the company may be obscuring the underlying cash burn associated with its human capital model. Analysts should adjust cash flow metrics to account for these non-cash expenses to better understand the firm's true economic performance.
Quick answers to the most common questions about buying MHH stock.
Mastech Digital, Inc. (MHH) generated $11.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Mastech Digital, Inc. (MHH) generated $10.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Mastech Digital, Inc. (MHH) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Mastech Digital, Inc. (MHH) spent $2.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.