Digital outsourcing company TaskUs (NASDAQ:TASK) reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 17% year on year to $298.7 million. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $303.4 million was less impressive, coming in 1.4% below expectations. Its non-GAAP profit of $0.42 per share was 10.4% above analysts’ consensus estimates. Is now the time to buy TASK? Find out in our full research report (it’s free for active Edge ...

Core Insights - TaskUs reported strong fiscal Q2 2025 earnings, with GAAP revenue of $294.1 million, exceeding analyst expectations by $22.6 million and reflecting a 23.6% year-over-year growth [1][5] - Non-GAAP earnings per share reached $0.43, surpassing the forecast of $0.34 and showing a 38.7% increase from the previous year [1][6] - Despite operational success, free cash flow fell sharply to nearly zero due to increased capital spending and non-recurring expenses, raising concerns about future cash generation [1][7] Financial Performance - GAAP revenue for Q2 2025 was $294.1 million, up from $237.9 million in Q2 2024, marking a 23.6% year-over-year increase [2][5] - Non-GAAP EPS was $0.43, compared to $0.31 in Q2 2024, reflecting a 38.7% increase [2][6] - Adjusted EBITDA grew to $65.0 million, a 26.7% increase year-over-year, with an adjusted EBITDA margin of 22.1% [2][6] - Free cash flow declined to $38,000 from $25.5 million in Q2 2024, indicating a significant drop in cash generation efficiency [2][7] Company Overview and Strategy - TaskUs specializes in outsourced digital operations for technology, media, and e-commerce sectors, supporting around 200 clients globally [3] - The company has focused on integrating advanced technology, particularly AI-driven services, and expanding into new industry verticals [4] - Key success factors include technology adoption, operational efficiency, employee training, and compliance with regulations [4] Operational Highlights - The Trust + Safety service line saw nearly 30% year-over-year revenue growth, contributing to overall revenue increases [5] - Capital expenditures rose significantly to $17.0 million from $4.5 million in Q2 2024, impacting free cash flow [7] - The company announced partnerships with Decagon and Regal to enhance its AI Services, which is the fastest-growing segment [8] Future Outlook - TaskUs did not provide forward financial guidance due to ongoing uncertainty related to a proposed take-private merger transaction [9] - Investors are advised to monitor cash flow trends, capital spending, and the impact of technology integration and potential mergers [10]