TaskUs TASK reported third-quarter 2025 adjusted earnings of 42 cents per share, which beat the Zacks Consensus Estimate by 16.67%. The figure increased 13.5% year over year.
Revenues of $298.7 million beat the consensus mark by 3.25% and increased 17% year over year. AI Services led the growth with more than 50% increase for the third consecutive quarter.
In the third quarter of 2025, AI Services grew more than 60% year over year, which remained TaskUs’ fastest-growing service line. In the reported quarter, Trust & Safety revenues rose nearly 20% year over year.
TaskUs Q3 Operating Details
Total operating expenses increased 12.8% year over year to $260.7 million. Selling, general and administrative expenses declined 9.5% year over year to $56.7 million.
TaskUs, Inc. Price, Consensus and EPS Surprise
TaskUs, Inc. price-consensus-eps-surprise-chart | TaskUs, Inc. Quote
TaskUs reported a GAAP total operating income of $37.9 million, up 56.7% year over year.
In the reported quarter, Adjusted net income was $39 million, up 13.7% year over year. Adjusted net income margin declined 40 bps year over year to 13.1%.
Adjusted EBITDA increased 17% year over year to $63.5 million. Adjusted EBITDA margin was in line with the prior-year figure at 21.2%.
TASK’s Balance Sheet
As of Sept. 30, 2025, TaskUs had cash and cash equivalents of $209.9 million compared with $181.9 million as of June 30, 2025.
As of Sept. 30, 2025, long-term debt totaled $226.4 million compared with $231.4 million as of June 30, 2025.
The company generated cash flow from operations of $54.3 million compared with $17 million in the second quarter of 2025. Adjusted Free cash flow was $47.9 million compared with $6.51 million in the previous quarter.
TASK’s Q4 and Full-Year 2025 Guidance
TASK expects fourth-quarter 2025 revenues of $302.4 million to $304.4 million. Revenue growth (YOY) at midpoint is 10.6% for the fourth quarter.
TASK expects Adjusted EBITDA to be 19.8% for the fourth quarter.
TASK expects full-year 2025 revenues of $1.173 billion to $1.175 billion. Revenue growth (YOY) at midpoint is 18% for the full year.
It expects the Adjusted EBITDA to be 21.1% for the full year.
TASK expects free cash flow of $100 for the full year.
TASK’s Zacks Rank & Stocks to Consider
Currently, TASK carries a Zacks Rank #3 (Hold).
Some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector are Nutanix NTNX, Analog Devices ADI, and KANZHUN LIMITED BZ, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nutanix shares have risen 13.8% year to date. Nutanix is set to report first-quarter 2026 results on Nov. 25.
Analog Devices' shares have appreciated 7.5% year to date. Analog Devices is set to report fourth-quarter 2025 results on Nov. 25.
KANZHUN LIMITED shares have risen 52.7% year to date. KANZHUN LIMITED is set to report third-quarter fiscal 2025 results on Nov. 18.
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TaskUs, Inc. (TASK) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.