Key Highlights

  • TaskUs (NASDAQ:TASK) reported record third-quarter service Revenue of USD 314.7 million, up 5.4% from USD 298.7 million and USD 12.7 million above the top end of its own guidance.
  • Diluted EPS was USD 0.28 on a GAAP basis against USD 0.34, and adjusted EPS was USD 0.34 against USD 0.42, while Net Income fell 16.4% to USD 26.2 million.
  • AI Services revenue grew 27.7% and passed USD 250 million on a trailing twelve-month basis, while Digital Customer Experience grew 7.1% for the third straight accelerating quarter.
  • Full-year revenue guidance rose to USD 1.249 billion to USD 1.251 billion, with adjusted EBITDA Margin of about 19% and adjusted free Cash Flow of USD 115 million to USD 125 million.

Record Revenue, Lower Per-Share Earnings

TaskUs (NASDAQ:TASK) announced third-quarter 2026 results on November 4, 2026. The outsourced digital services provider supports clients in AI, autonomous vehicles, robotics, Social Media and financial services, and earned service revenue of USD 314.7 million, the highest quarterly level in its history. Net income was USD 26.2 million, a margin of 8.3%, compared with USD 31.4 million and 10.5%. Adjusted net income, a non-GAAP measure, was USD 31.3 million against USD 39.0 million. Adjusted EBITDA was USD 59.1 million, a margin of 18.8% against 21.2%, and nine-month revenue rose 6.8% to USD 929.9 million.

AI Services Lead Growth and the Largest-Client Effect

The chief executive said AI Services grew 28% and was the fastest-growing service line for the seventh quarter in a row. Excluding its largest client, year-over-year revenue growth was nearly 20% for the quarter, which implies that client weighed on the total, although the release gives no client-level figure. Costs rose faster than sales: cost of services was USD 205.9 million against USD 185.4 million, an increase of about 11.0% on our calculation, while selling, general and administrative expense fell to USD 54.9 million from USD 59.7 million. Financing expenses rose to USD 8.9 million from USD 4.6 million, and Operating Income was USD 36.5 million against USD 37.9 million. The company had about 64,700 teammates at the end of the quarter.

Cash Flow, Liquidity and the Raised Outlook

Net cash from Operating Activities was USD 30.7 million versus USD 54.3 million, and free cash flow was USD 22.0 million versus USD 42.0 million, although nine-month free cash flow rose 42.2% to USD 90.7 million. Liquidity was USD 189.7 million of cash plus USD 100.0 million of revolver capacity. For the fourth quarter, TaskUs (NASDAQ:TASK) guides revenue of USD 319 million to USD 321 million and an adjusted EBITDA margin of about 19.5%. The company did not provide GAAP reconciliations for its margin guidance and said items such as stock-based compensation and foreign currency gains or losses cannot be forecast without unreasonable effort. Full-year revenue growth at the midpoint is 5.6%, and fourth-quarter growth at the midpoint is 2.3%, which implies a slower pace than the third quarter.

Where Things Stand

Revenue set a record while per-share Earnings fell because costs and financing charges grew faster than sales. TaskUs (NASDAQ:TASK) grew revenue 5.4%, but cost of services rose about 11.0% on our calculation, and financing expenses nearly doubled. AI Services is the engine, and growth outside the largest client was close to 20%. Cash conversion also slowed in the quarter, with free cash flow equal to 37.3% of Adjusted EBITDA against 66.1%. Next markers are the fourth-quarter revenue range of USD 319 million to USD 321 million, free cash flow delivery and any update on the largest client.