TaskUs(TASK) - 2025 Q3 - Quarterly Results

Financial Performance - TaskUs reported record revenue of $298.7 million for Q3 2025, representing a year-over-year growth of 17.0%[2] - Net income for Q3 2025 was $31.4 million, with a net income margin of 10.5%, up from 5.0% in Q3 2024[5] - Adjusted EBITDA for the quarter was $63.5 million, maintaining an Adjusted EBITDA margin of 21.2%[5] - Service revenue for Q3 2025 reached $298.7 million, a 17% increase from $255.3 million in Q3 2024[16] - Net income for the nine months ended September 2025 was $72.6 million, up 96% from $37.0 million in the same period of 2024[20] - Operating income for the nine months ended September 2025 was $102.5 million, a 45% increase from $70.5 million in the same period of 2024[16] - Basic net income per share for Q3 2025 was $0.35, compared to $0.14 in Q3 2024[16] - The company reported a net income margin of 10.5% for Q3 2025, up from 5.0% in Q3 2024[22] - GAAP diluted EPS for Q3 2025 was $0.34, compared to $0.14 in Q3 2024, reflecting a 142.9% increase[33] - Adjusted EPS for Q3 2025 was $0.42, up from $0.37 in Q3 2024, representing a 13.5% growth[33] Cash Flow and Investments - Free Cash Flow reached $42.0 million, with a conversion rate of 66.1% from Adjusted EBITDA to Free Cash Flow[5] - Free Cash Flow for Q3 2025 was $41.962 million, significantly higher than $6.286 million in Q3 2024, marking a 570.5% increase[35] - Adjusted Free Cash Flow for Q3 2025 was $47.987 million, compared to $9.097 million in Q3 2024, indicating a 426.5% rise[35] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $107.549 million, compared to $98.230 million for the same period in 2024, a 9.3% increase[35] - The company anticipates Adjusted Free Cash Flow of approximately $100 million for the full year 2025[8] - The company invested $43.8 million in property and equipment during the nine months ended September 2025, compared to $18.8 million in the same period of 2024[20] Growth and Future Outlook - AI Services experienced over 50% growth for the third consecutive quarter, contributing significantly to revenue growth[2][4] - For the full year 2025, TaskUs expects total revenue between $1.173 billion and $1.175 billion, with an Adjusted EBITDA margin of approximately 21.1%[7][8] - Trust + Safety services showed strong year-over-year revenue growth of nearly 20%[4] - TaskUs plans to increase investments in Generative AI transformation services to support clients in the evolving AI landscape[2] Workforce and Assets - As of September 30, 2025, TaskUs had a total workforce of approximately 63,800 employees across 30 locations in 13 countries[10] - Total assets increased to $1.04 billion as of September 30, 2025, compared to $953.3 million at the end of 2024[18] - Cash and cash equivalents at the end of Q3 2025 were $210.0 million, up from $180.4 million at the end of Q3 2024[20] - Total current liabilities increased to $170.4 million as of September 30, 2025, from $152.0 million at the end of 2024[18] Cost Management - The company undertook cost optimization measures resulting in severance payments, impacting net income[29] - The company reported operational efficiency costs and litigation costs as non-recurring items affecting financial performance[39] - Non-GAAP effective tax rate for Q3 2025 was 20.9%, compared to 18.6% for Q3 2024[30]