TaskUs (NASDAQ:TASK) Exceeds Q3 Expectations, Stock Soars

Digital outsourcing company TaskUs (NASDAQ:TASK) beat Wall Street’s revenue 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.

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“In the third quarter of 2025, we generated record revenue of $298.7 million, a year-over-year growth rate of 17.0%, led by our third quarter in a row of more than 50% growth in AI Services. We also delivered Adjusted EBITDA margins of 21.2%, which we believe to be among the best in our industry. These results are a testament to our operational execution, financial discipline and the investments we have made in our specialized service offerings,” said Co-Founder and CEO, Bryce Maddock.

Company Overview

Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ:TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $1.14 billion in revenue over the past 12 months, TaskUs is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand.

As you can see below, TaskUs’s 21.1% annualized revenue growth over the last five years was incredible. This shows it had high demand, a useful starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. TaskUs’s annualized revenue growth of 10.8% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, TaskUs reported year-on-year revenue growth of 17%, and its $298.7 million of revenue exceeded Wall Street’s estimates by 2.4%. Company management is currently guiding for a 10.6% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 11.5% over the next 12 months, similar to its two-year rate. This projection is admirable and suggests the market is forecasting success for its products and services.

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Operating Margin

TaskUs was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.3% was weak for a business services business.

On the plus side, TaskUs’s operating margin rose by 19.3 percentage points over the last five years, as its sales growth gave it immense operating leverage.

In Q3, TaskUs generated an operating margin profit margin of 12.7%, up 3.2 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

TaskUs’s full-year EPS grew at a decent 8.2% compounded annual growth rate over the last four years, in line with the broader business services sector.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

TaskUs’s unimpressive 9.3% annual EPS growth over the last two years aligns with its revenue trend. On the bright side, this tells us its incremental sales were profitable.

In Q3, TaskUs reported adjusted EPS of $0.42, up from $0.37 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects TaskUs’s full-year EPS of $1.54 to grow 9.1%.

Key Takeaways from TaskUs’s Q3 Results

It was good to see TaskUs beat analysts’ revenue EPS expectations this quarter, making for solid performance. On the other hand, its revenue guidance for next quarter slightly missed. Overall, this print was mixed. The stock traded up 6.4% to $13.30 immediately after reporting.

Should you buy the stock or not? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.