TaskUs Q3 Earnings Beat Estimates, Revenues Up Year Over Year

Core Insights - TaskUs (TASK) reported third-quarter 2025 adjusted earnings of 42 cents per share, exceeding the Zacks Consensus Estimate by 16.67% and reflecting a 13.5% year-over-year increase [1][8] - Revenues reached $298.7 million, surpassing the consensus mark by 3.25% and showing a 17% year-over-year growth, driven primarily by AI Services which grew over 60% year over year [1][2][8] Financial Performance - Total operating expenses increased by 12.8% year over year to $260.7 million, while selling, general and administrative expenses decreased by 9.5% year over year to $56.7 million [3] - GAAP total operating income was reported at $37.9 million, marking a 56.7% year-over-year increase [3] - Adjusted net income was $39 million, up 13.7% year over year, with an adjusted net income margin declining by 40 basis points to 13.1% [3] - Adjusted EBITDA rose 17% year over year to $63.5 million, maintaining an adjusted EBITDA margin of 21.2% [4] Balance Sheet and Cash Flow - As of September 30, 2025, TaskUs had cash and cash equivalents of $209.9 million, up from $181.9 million as of June 30, 2025 [5] - Long-term debt decreased to $226.4 million from $231.4 million over the same period [5] - The company generated cash flow from operations of $54.3 million, significantly up from $17 million in the second quarter of 2025, with adjusted free cash flow reaching $47.9 million compared to $6.51 million in the previous quarter [5] Guidance - For the fourth quarter of 2025, TaskUs expects revenues between $302.4 million and $304.4 million, indicating a year-over-year growth of 10.6% at the midpoint [6] - Full-year 2025 revenue guidance is set at $1.173 billion to $1.175 billion, implying an 18% year-over-year growth at the midpoint [6] - Adjusted EBITDA is anticipated to be 19.8% for the fourth quarter and 21.1% for the full year [6]