Key Highlights

  • Service Revenue was USD 314.7 million against a USD 303.64 million estimate and USD 298.7 million a year earlier.
  • Adjusted EPS of USD 0.34 compares with a USD 0.31 estimate, while diluted GAAP EPS was USD 0.28.
  • AI Services revenue grew 27.7%, and Digital Customer Experience growth accelerated for a third consecutive quarter to 7.1%.
  • Full-year 2026 revenue guidance was raised to USD 1.249 billion to USD 1.251 billion, with adjusted free Cash Flow raised.

TaskUs (NASDAQ:TASK) reported third quarter service revenue of USD 314.7 million, against an estimate of USD 303.64 million and USD 298.7 million in the prior-year quarter. Adjusted EPS was USD 0.34 against an estimate of USD 0.31, while diluted EPS under GAAP was USD 0.28. Co-founder and chief executive Bryce Maddock said revenue was USD 12.7 million above the top end of the company's guidance and a record for a single quarter.

Results: Revenue, Income and Margins

Service revenue rose 5.4% as stated. Net Income was USD 26.2 million, a Margin of 8.3%, against USD 31.4 million and 10.5% a year earlier. Adjusted net income was USD 31.3 million, a margin of 9.9%, against USD 39.0 million and 13.1%. Adjusted EBITDA was USD 59.1 million, a margin of 18.8%, against USD 63.5 million and 21.2%.

Cost of services was USD 205.9 million against USD 185.4 million, while selling, general and administrative expense was USD 54.9 million against USD 59.7 million. Operating Income was USD 36.5 million against USD 37.9 million, and financing expenses were USD 8.9 million against USD 4.6 million. For the nine months, adjusted EPS was USD 1.02 against USD 1.23.

AI Services and Digital Customer Experience

Management described 28% growth in AI Services, stated more precisely as 27.7%, with trailing twelve-month revenue above USD 250 million; the company said it was the fastest growing service line for the seventh quarter in a row. The Business supports developers of autonomous vehicles, robots and frontier AI models. Digital Customer Experience growth reached 7.1%, and the CEO said growth rates there have accelerated in each quarter of 2026. Excluding its largest client, he said year-over-year revenue growth was nearly 20% for the quarter.

Cash Flow, Debt and Capital

Net cash provided by Operating Activities was USD 30.7 million against USD 54.3 million a year earlier, and free cash flow was USD 22.0 million against USD 42.0 million, a conversion of 37.3% of adjusted EBITDA. Adjusted free cash flow was USD 23.0 million against USD 48.0 million, and for the nine months it was USD 101.6 million.

Cash and cash equivalents were USD 189.7 million at September 30, against USD 211.7 million at year end 2025, with USD 100.0 million of borrowing capacity under the revolving Credit facility. Long-term debt was USD 462.9 million against USD 219.8 million, following a March 2026 refinancing, and distributions of dividends totaled USD 332.8 million in the nine months.

Guidance for the Fourth Quarter and Full Year

Management guided to fourth quarter revenue of USD 319 million to USD 321 million with an adjusted EBITDA margin of approximately 19.5%. Full-year revenue guidance is USD 1.249 billion to USD 1.251 billion, an increase of USD 20 million at the midpoint, with an adjusted EBITDA margin of approximately 19.0% and adjusted free cash flow of USD 115 million to USD 125 million. The chief financial officer said the adjusted free cash flow outlook rose by USD 5 million to USD 120 million at the midpoint.

Figures Worth Comparing

Revenue of USD 314.7 million sits alongside adjusted EBITDA of USD 59.1 million, free cash flow of USD 22.0 million and cash of USD 189.7 million.

Management pointed to three stated priorities for the final quarter: accelerating growth in AI Services, continued Digital Customer Experience momentum, and disciplined cost management to fund its AI transformation initiatives. The fourth quarter revenue guidance of USD 319 million to USD 321 million is the dated marker it named.