TaskUs(US:TASK)2025-11-07 21:08Revenue and Income - Service revenue for the nine months ended September 30, 2025, was $870,591, a 20.8% increase from $720,743 in 2024[118] - Operating income increased by 45.5% to $102,541 for the nine months ended September 30, 2025, compared to $70,474 in 2024[118] - Net income for the nine months ended September 30, 2025, was $72,570, reflecting a 96.1% increase from $37,011 in 2024[118] - AI Services revenue increased by 63.7% to $156,701 for the nine months ended September 30, 2025, from $95,716 in 2024[119] - Adjusted Net Income for Q3 2025 was $38,990,000, representing a 13.7% increase from $34,277,000 in Q3 2024[136] - Net income for Q3 2025 was $31,375,000, a significant increase of 147.1% compared to $12,699,000 in Q3 2024[136] - Adjusted Net Income for the nine months ended September 30, 2025 was $114,625,000, a 27.1% increase from $90,184,000 in the same period of 2024[140] - Net income for the nine months ended September 30, 2025 was $72,570,000, a 96.1% increase from $37,011,000 in 2024[140] Expenses and Costs - Cost of services increased by 24.0% to $537,169 for the nine months ended September 30, 2025, from $433,052 in 2024[118] - Financing expenses decreased by 15.8% to $13,925 for the nine months ended September 30, 2025, compared to $16,532 in 2024[128] - Stock-based compensation expense decreased by 39.4% in Q3 2025 to $6,513,000 from $10,742,000 in Q3 2024[136] - The company incurred $11,993,000 in transaction costs for the nine months ended September 30, 2025, a 100% increase from zero in 2024[140] Tax and Margins - The effective tax rate for the nine months ended September 30, 2025, was 26.3%, down from 33.8% in 2024[129] - Net Income Margin improved to 10.5% in Q3 2025 from 5.0% in Q3 2024[136] Cash Flow and Indebtedness - Free Cash Flow decreased to $63.8 million from $79.4 million in 2024, with a conversion rate of Adjusted EBITDA to Free Cash Flow at 34.0%[159] - As of September 30, 2025, total cash and cash equivalents were $210.0 million, with an additional borrowing capacity of $190.0 million under the 2022 Revolving Credit Facility[160] - Total indebtedness as of September 30, 2025, was $246.3 million, with an interest rate of 6.352% per annum[161] - Net cash provided by operating activities increased to $107.5 million from $98.2 million in 2024, driven by higher net income and non-cash charges[166] - Net cash used in investing activities rose to $43.8 million, primarily due to increased site build-out and technology costs[167] - Net cash used in financing activities increased to $39.5 million, attributed to share repurchases and higher long-term debt payments[168] Client Contribution and Strategy - The top ten clients contributed 60% of total service revenue for the three months ended September 30, 2025, compared to 56% in 2024[130] - The company plans to target high growth industry verticals and clients to achieve meaningful client and revenue diversification over time[131] EBITDA and Adjusted Metrics - Adjusted EPS for Q3 2025 was $0.42, up from $0.37 in Q3 2024, reflecting a growth of 13.5%[146] - Adjusted EBITDA for Q3 2025 reached $63,452,000, marking a 17.0% increase from $54,215,000 in Q3 2024[150] - EBITDA for the same period was $157.8 million, reflecting a 33.8% increase from $118.0 million in 2024[154] - Adjusted EBITDA increased by 20.2% to $187.7 million compared to $156.1 million in 2024[154] Foreign Currency and Other Gains - Foreign currency losses for Q3 2025 were $(6,678,000), compared to gains of $2,490,000 in Q3 2024, indicating a significant negative shift[136] Share Repurchase - The company repurchased 2,112,247 shares for $27.7 million during the nine months ended September 30, 2025[162]