TaskUs Beats Its Own Revenue Guidance By $12.7 Million, Raises Outlook As Margins Shrink
Third-quarter revenue of $314.7 million set a company record, but adjusted EBITDA margin fell to 18.8% from 21.2% a year earlier.
TaskUs, which provides outsourced digital services such as customer support and content review, posted $314.7 million in third-quarter service revenue, up 5.4% from a year earlier and $12.7 million above the top of its own guidance, the company said Wednesday in an 8-K filing. It raised its full-year revenue range, though profit shrank.
Record revenue, thinner profit
CEO Bryce Maddock called the quarter the highest level of revenue in TaskUs' history and said the company is raising its full-year revenue outlook by $20 million at the midpoint. The new range is $1.249 billion to $1.251 billion.
Profit moved the other way. Net income fell to $26.2 million from $31.4 million, and diluted earnings per share were $0.28 against $0.34. Adjusted EBITDA, a profit measure that strips out items such as stock pay and currency effects, slid 6.8% to $59.1 million, and its margin dropped to 18.8% from 21.2%.
Free cash flow was $22.0 million, down from $42.0 million a year earlier. For the first nine months it reached $90.7 million, up from $63.8 million.
AI work leads the growth
TaskUs earns revenue from customer support, trust and safety (content review) and AI services. Its profile lists Meta as its largest client, at 26% of 2025 revenue.
AI Services grew 27.7% and passed $250 million in trailing twelve-month revenue, the company's fastest-growing line for a seventh straight quarter. Digital Customer Experience accelerated to 7.1% growth, its third straight quarter of acceleration. Maddock said revenue growth excluding the largest client was nearly 20%.
Headcount was about 64,700 at the end of the quarter.
Guidance and a heavier debt load
For the fourth quarter, TaskUs guided to revenue of $319 million to $321 million and an adjusted EBITDA margin near 19.5%. Full-year adjusted EBITDA margin is expected near 19.0%, and adjusted free cash flow is forecast at $115 million to $125 million.
Long-term debt stood at $462.9 million on September 30, up from $219.8 million at year-end. In the first nine months the company took in $500 million of new debt, repaid $248.2 million and paid out $332.8 million in dividends. Cash was $189.7 million, with $100.0 million of revolver capacity available.
TaskUs hosts its earnings call at 5:00 p.m. ET Wednesday.
