TaskUs Q3 Earnings Beat Estimates, Revenues Up Year Over Year

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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This article originally published on Zacks Investment Research (zacks.com).

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