TaskUs Says Most Automation At Its Biggest Client Is Done, But Growth There Waits Until Late 2027
The client fell to 17% of third-quarter revenue from 27%, while the rest of the business grew nearly 20%.
TaskUs Co-Founder and CEO Bryce Maddock said on the company's earnings call Wednesday that "most of the automation work has happened" at its largest client, but year-over-year growth from that customer is not expected before the back half of 2027. The outsourcing firm, which blends human teams with technology for customer support, content review and AI development work, raised its full-year revenue outlook to between $1.249 billion and $1.251 billion.
A shrinking anchor client
Answering a Baird analyst, Maddock said reduced operating spending at the client, plus its push to automate trust-and-safety workflows, hit TaskUs throughout 2026. The impact, he said, "has expanded every quarter" in percentage and dollar terms and is expected to expand again in the fourth quarter.
More automation will come in 2027, Maddock said, but it should be more modest than this year's. He does not expect year-over-year growth from the client in the first couple of quarters, though it is "certainly possible" in the back half. He pointed to the client's plan to consolidate volumes with TaskUs across trust and safety, customer support and other operations, and to new work on its personal agentic AI efforts.
CFO Rishabh Tandon said the client made up 17% of third-quarter revenue, down from 27% a year earlier.
The rest of the book runs near 20%
Third-quarter revenue was $314.7 million, up 5.4% from a year earlier. Excluding the largest client, revenue grew nearly 20%, Maddock said, with the next 19 largest clients up 37%.
TaskUs, whose 10-K shows Digital Customer Experience, Trust & Safety and AI Services as its three lines, saw AI services rise 27.7% to $75 million. Trust and safety fell 15.8% to $63.9 million. Maddock said autonomous vehicle and robotics work should pass $100 million in 2026, more than three times 2025.
Adjusted EBITDA was $59.1 million, an 18.8% margin.
Cautious guidance, thinner margins ahead
For the fourth quarter, TaskUs guided revenue to $319 million to $321 million. Maddock called the guidance deliberately cautious given the client's reductions this year.
Tandon said AI services growth is heavy on lower-margin onshore work, a mix he expects to shift offshore over a multi-year period. Maddock said investment will rise in 2027 and weigh on margins near term.
Maddock said TaskUs will give 2027 guidance on its call early next year.
Sources
- TaskUs: Q3 Earnings Snapshot | wusa9.com — Associated Press
- TaskUs Announces Fiscal Third Quarter 2026 Results — businesswire.com
