Press Release: TaskUs Announces Fiscal Third Quarter 2025 Results

Dow Jones
2025/11/07
NEW BRAUNFELS, Texas--(BUSINESS WIRE)--November 07, 2025-- 

TaskUs, Inc. (Nasdaq: TASK), a leading provider of outsourced digital services and next-generation customer experience to the world's most innovative companies, today announced its results for the third quarter ended September 30, 2025.

   -- Total revenues of $298.7 million, 17.0% year-over-year growth. 
 
   -- Net income of $31.4 million, net income margin of 10.5%. 
 
   -- Adjusted Net Income of $39.0 million, Adjusted Net Income margin of 
      13.1%. 
 
   -- Diluted EPS of $0.34, Adjusted EPS of $0.42. 
 
   -- Adjusted EBITDA of $63.5 million, Adjusted EBITDA margin of 21.2%. 
 
   -- Net cash provided by operating activities of $54.3 million, Free Cash 
      Flow of $42.0 million and 66.1% conversion of Adjusted EBITDA to Free 
      Cash Flow. Adjusted Free Cash Flow of $48.0 million and 75.6% conversion 
      of Adjusted EBITDA to Adjusted Free Cash Flow. 

"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. "Looking forward, we plan to increase our investments in Generative AI led transformation services to support our clients in the AI era."

Third Quarter 2025 Financial and Frontline Highlights

 
                       Three months ended                      Nine months ended 
                          September 30,                           September 30, 
                   --------------------------              -------------------------- 
($ in thousands, 
except per share 
amounts)             2025          2024         % Change     2025          2024         % Change 
                    -------       -------      ----------   -------       -------      ---------- 
Service revenue    $298,713      $255,345        17.0%     $870,591      $720,743        20.8% 
Net income         $ 31,375      $ 12,699       147.1%     $ 72,570      $ 37,011        96.1% 
   Net income 
    margin             10.5%          5.0%                      8.3%          5.1% 
Adjusted Net 
 Income            $ 38,990      $ 34,277        13.7%     $114,625      $ 90,184        27.1% 
   Adjusted Net 
    Income 
    margin             13.1%         13.4%                     13.2%         12.5% 
Diluted EPS        $   0.34      $   0.14       142.9%     $   0.78      $   0.40        95.0% 
Adjusted EPS       $   0.42      $   0.37        13.5%     $   1.23      $   0.98        25.5% 
Adjusted EBITDA    $ 63,452      $ 54,215        17.0%     $187,676      $156,072        20.2% 
   Adjusted 
    EBITDA 
    margin             21.2%         21.2%                     21.6%         21.7% 
Net cash provided 
 by operating 
 activities        $ 54,264      $ 17,019       218.8%     $107,549      $ 98,230         9.5% 
Free Cash Flow     $ 41,962      $  6,286       567.5%     $ 63,796      $ 79,409       (19.7)% 
   Conversion of 
    Adjusted 
    EBITDA to 
    Free Cash 
    Flow               66.1%         11.6%                     34.0%         50.9% 
Adjusted Free 
 Cash Flow         $ 47,987      $  9,097       427.5%     $ 76,943      $ 82,220        (6.4)% 
   Conversion of 
    Adjusted 
    EBITDA to 
    Adjusted Free 
    Cash Flow          75.6%         16.8%                     41.0%         52.7% 
 
   -- AI Services remained TaskUs' fastest growing service line for the third 
      quarter in a row, with year-over-year growth of more than 60%. 
 
   -- Trust + Safety year-over-year revenue growth remained strong at nearly 
      20%. 
 
   -- Recognized as a Leader in the Everest Group's Trust and Safety Services 
      PEAK Matrix$(R)$ Assessment for the third year in a row during Q2. 
 
   -- Ended the third quarter of 2025 with 63,800 teammates. 

"Revenue grew 20.8% during the nine months ended September 30, 2025, led by 63.7% growth in AI Services and 26.2% growth in Trust + Safety," said Chief Financial Officer, Balaji Sekar. "We expect total revenue for the full year 2025 to range between $1.173 billion and $1.175 billion, with an Adjusted EBITDA margin of approximately 21.1% and Adjusted Free Cash Flow of approximately $100 million. Our strong balance sheet and cash flow position us well for the investments needed for the transformation ahead."

Fourth Quarter and Full Year 2025 Outlook

 
 
For the fourth quarter and full year 2025 TaskUs expects its financial 
results to include: 
 
                                                   2025 Outlook 
                                         Fourth Quarter        Full Year 
Revenue (in millions)                   $302.4 to $304.4   $1,173 to $1,175 
Revenue growth (YoY) at midpoint             10.6%               18.0% 
Adjusted EBITDA Margin(1)                    19.8%             21.1% 
Adjusted Free Cash Flow (in 
 millions)(2)                                 N/A                $100 
 
 
 
1.    With respect to the non-GAAP Adjusted EBITDA margin outlook provided 
      above, a reconciliation to the closest GAAP financial measure has not 
      been provided as the quantification of certain items included in the 
      calculation of GAAP net income (loss) cannot be calculated or predicted 
      at this time without unreasonable efforts. For example, the non-GAAP 
      adjustment for stock-based compensation expense requires additional 
      inputs such as number of shares granted and market price that are not 
      currently ascertainable, the non-GAAP adjustment for foreign currency 
      gains or losses depends on the timing and magnitude of changes in 
      foreign currency exchange rates and cannot be accurately forecasted. For 
      the same reasons, the Company is unable to address the probable 
      significance of the unavailable information, which could have a 
      potentially unpredictable, and potentially significant, impact on its 
      future GAAP financial results. 
2.    Adjusted Free Cash Flow is calculated as net cash provided by operating 
      activities in the period minus cash used for purchase of property and 
      equipment in the period, excluding certain non-recurring adjustments. At 
      the midpoint of our guidance, net cash provided by operating activities 
      for the full year 2025 is expected to be approximately $165 million and 
      purchase of property and equipment is expected to be approximately $65 
      million. Our Adjusted Free Cash Flow guidance and expected net cash 
      provided by operating activities excludes the impact of certain 
      transaction costs, litigation costs and operational efficiency costs, 
      due to the unpredictability of the costs and timing of payments. 
 

Conference Call Information

TaskUs senior management will host a conference call today to discuss the Company's third quarter 2025 financial results and financial outlook. This call is scheduled to begin at 8:00 am ET. Analysts and investors who wish to participate in the call can register by visiting the following link: http://services.incommconferencing.com/DiamondPassRegistration/register?confirmationNumber=13756784&linkSecurityString=1e6db2b840

To listen to a live audio webcast, please visit TaskUs' Investor Relations website at IR.Taskus.com. A replay of the audio webcast will be available on the same website for 12 months following the call. At the time of the conference call and webcast, the Company will post a slide presentation and other materials available on its website.

About TaskUs

TaskUs is a leading provider of outsourced digital services and next-generation customer experience to the world's most innovative companies, helping its clients represent, protect and grow their brands. Leveraging a cloud-based infrastructure, TaskUs serves clients in the fast-growing sectors, including social media, e-commerce, gaming, streaming media, food delivery and ride-sharing, technology, financial services and healthcare. As of September 30, 2025, TaskUs had a worldwide headcount of approximately 63,800 people across 30 locations in 13 countries, including the United States, the Philippines, and India.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, and further include, without limitation, statements reflecting our current views with respect to, among other things, our operations, our financial performance, our industry, the impact of the macroeconomic environment on our business, and other non-historical statements including the statements in the "Fourth Quarter and Full Year 2025 Outlook" section of this press release. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will, " "should," "could," "would," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates," "position us" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limited to: the dependence of our business on key clients; the risk of loss of business or non-payment from clients; our failure to cost-effectively acquire new clients; the risk that we may provide inadequate service or cause disruptions in our clients' businesses or fail to comply with the quality standards required by our clients under our agreements; our inability to anticipate clients' needs by adapting to market and

technology trends; utilization of artificial intelligence by our clients or our failure to incorporate artificial intelligence into our operations; unauthorized or improper disclosure of personal or other sensitive information, or security breaches and incidents; negative publicity or liability or difficulty recruiting and retaining employees; our failure to detect and deter criminal or fraudulent activities or other misconduct by our employees or third parties; global economic and political conditions, especially in the social media and meal delivery and transport industries from which we generate significant revenue; risks relating to the termination of the merger we originally announced on May 8, 2025, including the risk that the termination could adversely affect our stock price, business, financial condition and results of operations; the dependence of our business on our international operations, particularly in the Philippines and India; our failure to comply with applicable data privacy and security laws and regulations; fluctuations against the U.S. dollar in the local currencies in the countries in which we operate; our inability to maintain and enhance our brand; competitive pricing pressure; volatile, unfavorable or uncertain economic or political conditions, particularly in the markets in which our clients and operations are concentrated, and the effects of these conditions on our clients' businesses; our dependence on senior management and key employees; increases in employee expenses and changes to labor laws; failure to attract, hire, train and retain a sufficient number of skilled employees to support operations; our inability to effectively expand our operations into countries or industries in which we have no prior operating experience and in which we may be subject to increased business, economic and regulatory risks; reliance on owned and third-party technology and computer systems; failure to maintain asset utilization levels, price appropriately and control costs; the control of affiliates of Blackstone Inc. and our Co-Founders over us; the dual class structure of our common stock; and the volatility of the market price of our Class A common stock. Additional risks and uncertainties include but are not limited to those described under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the "SEC") on March 6, 2025, as such factors may be updated from time to time in our filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's SEC filings. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. TaskUs undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.

Non-GAAP Financial Measures

TaskUs supplements results reported in accordance with United States generally accepted accounting principles ("GAAP"), with non-GAAP financial measures, such as Adjusted Net Income, Adjusted Net Income Margin, Adjusted Earnings Per Share, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Free Cash Flow, Conversion of Adjusted EBITDA to Free Cash Flow and Conversion of Adjusted EBITDA to Adjusted Free Cash Flow. Management believes these measures help illustrate underlying trends in TaskUs' business and uses the measures to establish budgets and operational goals, communicate internally and externally, and manage TaskUs' business and evaluate its performance. Management also believes that certain of these measures help investors compare TaskUs' operating performance with its results in prior periods or assess liquidity. TaskUs anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results that exclude the impact of certain costs, losses and gains that are required to be included in our profit and loss measures under GAAP. Because TaskUs' reported non-GAAP financial measures are not calculated in accordance with GAAP, these measures are not comparable to GAAP and may not be comparable to similarly described non-GAAP measures reported by other companies within TaskUs' industry. Consequently, TaskUs' non-GAAP financial measures should not be evaluated in isolation or supplant comparable GAAP measures, but rather, should be considered together with the information in TaskUs' consolidated financial statements, which are prepared in accordance with GAAP. Definitions of non-GAAP financial measures and the reconciliations to the most directly comparable measures in accordance with GAAP are provided in subsequent sections of this press release narrative and supplemental schedules.

 
 
                                  TaskUs, Inc. 
             Condensed Consolidated Statements of Income (unaudited) 
                      (in thousands, except per share data) 
 
                             Three months ended      Nine months ended September 
                               September 30,                     30, 
                         --------------------------  ---------------------------- 
                             2025          2024          2025          2024 
                          ----------    ----------    ----------    ---------- 
Service revenue          $   298,713   $   255,345   $   870,591   $   720,743 
Operating expenses: 
    Cost of services         185,420       153,765       537,169       433,052 
    Selling, general 
     and administrative 
     expense                  59,699        62,650       185,529       171,830 
    Depreciation              10,553         9,758        30,423        30,525 
    Amortization of 
     intangible assets         5,005         4,988        14,978        14,955 
    Loss (gain) on 
     disposal of 
     assets                       95           (10)          (49)          (93) 
                          ----------    ----------    ----------    ---------- 
        Total operating 
         expenses            260,772       231,151       768,050       650,269 
             Operating 
              income          37,941        24,194       102,541        70,474 
Other expense (income), 
 net                          (8,407)          898        (9,907)       (2,007) 
Financing expenses             4,627         5,504        13,925        16,532 
                          ----------    ----------    ----------    ---------- 
    Income before 
     income taxes             41,721        17,792        98,523        55,949 
Provision for income 
 taxes                        10,346         5,093        25,953        18,938 
                          ----------    ----------    ----------    ---------- 
    Net income           $    31,375   $    12,699   $    72,570   $    37,011 
                          ==========    ==========    ==========    ========== 
Net income per common 
share: 
    Basic                $      0.35   $      0.14   $      0.81   $      0.42 
    Diluted              $      0.34   $      0.14   $      0.78   $      0.40 
Weighted-average number 
of common shares 
outstanding: 
    Basic                 90,128,176    88,978,159    89,887,246    88,701,787 
    Diluted               93,057,417    92,579,919    93,096,587    92,019,911 
 
 
 
                                TaskUs, Inc. 
             Condensed Consolidated Balance Sheets (unaudited) 
                               (in thousands) 
 
                                            September 30,     December 31, 
                                                 2025              2024 
                                           ----------------  --------------- 
                 Assets 
Current assets: 
     Cash and cash equivalents              $       209,981   $      192,166 
     Accounts receivable, net of 
      allowance for credit losses of $841 
      and $1,299, respectively                      238,472          198,996 
     Income tax receivable                            1,773              912 
     Prepaid expenses and other current 
      assets                                         41,417           43,278 
                                               ------------      ----------- 
            Total current assets                    491,643          435,352 
                                               ------------      ----------- 
Noncurrent assets: 
     Property and equipment, net                     91,404           66,775 
     Operating lease right-of-use assets             58,016           47,334 
     Deferred tax assets                              9,422            8,431 
     Intangibles                                    158,494          172,525 
     Goodwill                                       219,527          216,791 
     Other noncurrent assets                          8,860            6,090 
                                               ------------      ----------- 
            Total noncurrent assets                 545,723          517,946 
                                               ------------      ----------- 
                   Total assets             $     1,037,366   $      953,298 
                                               ============      =========== 
  Liabilities and Shareholders' Equity 
Liabilities: 
     Current liabilities: 
          Accounts payable and accrued 
           liabilities                      $        50,710   $       53,403 
          Accrued payroll and 
           employee-related liabilities              69,825           54,160 
          Current portion of debt                    19,872           14,809 
          Current portion of operating 
           lease liabilities                         20,777           16,087 
          Current portion of income tax 
           payable                                    5,946            9,839 
          Deferred revenue                            3,266            3,727 
                                               ------------      ----------- 
            Total current liabilities               170,396          152,025 
                                               ------------      ----------- 
     Noncurrent liabilities: 
          Income tax payable                          9,054            6,496 
          Long-term debt                            226,453          241,357 
          Operating lease liabilities                40,551           32,946 
          Accrued payroll and 
           employee-related liabilities               7,754            6,425 
          Deferred tax liabilities                   15,636           17,046 
          Other noncurrent liabilities                    2               84 
                                               ------------      ----------- 
            Total noncurrent liabilities            299,450          304,354 
                                               ------------      ----------- 
                 Total liabilities                  469,846          456,379 
                                               ------------      ----------- 
                 Total shareholders' 
                  equity                            567,520          496,919 
                                               ------------      ----------- 
                    Total liabilities and 
                     shareholders' 
                     equity                 $     1,037,366   $      953,298 
                                               ============      =========== 
 
 
 
                               TaskUs, Inc. 
        Condensed Consolidated Statement of Cash Flows (unaudited) 
                              (in thousands) 
 
                                       Nine months ended September 30, 
                                   --------------------------------------- 
                                           2025                2024 
                                       -------------       ------------ 
Cash flows from operating 
activities: 
      Net income                    $         72,570      $      37,011 
      Adjustments to reconcile 
      net income to net cash 
      provided by operating 
      activities: 
            Depreciation                      30,652             30,525 
            Amortization of 
             intangibles                      14,978             14,955 
            Amortization of debt 
             financing fees                      447                447 
            Gain on disposal of 
             assets                              (49)               (93) 
            Provision for 
             (benefit from) 
             credit losses                       678                (25) 
            Unrealized foreign 
             exchange gains on 
             forward contracts                    --               (166) 
            Deferred taxes                    (3,231)            (1,813) 
            Stock-based 
             compensation 
             expense                          23,428             31,954 
            Changes in operating 
            assets and 
            liabilities: 
               Accounts 
                receivable                   (38,781)           (23,452) 
               Prepaid expenses 
                and other current 
                assets                         6,035             (5,807) 
               Operating lease 
                right-of-use 
                assets                        15,306             11,883 
               Other noncurrent 
                assets                        (2,798)              (809) 
               Accounts payable 
                and accrued 
                liabilities                  (10,633)             3,318 
               Accrued payroll 
                and 
                employee-related 
                liabilities                   15,717             20,904 
               Operating lease 
                liabilities                  (13,759)           (12,423) 
               Income tax payable             (2,455)            (7,592) 
               Deferred revenue                 (475)              (442) 
               Other noncurrent 
                liabilities                      (81)              (145) 
                                       -------------       ------------ 
                    Net cash 
                     provided by 
                     operating 
                     activities              107,549             98,230 
                                       -------------       ------------ 
Cash flows from investing 
activities: 
      Purchase of property and 
       equipment                             (43,753)           (18,821) 
                                       -------------       ------------ 
                    Net cash used 
                     in investing 
                     activities              (43,753)           (18,821) 
                                       -------------       ------------ 
Cash flows from financing 
activities: 
      Payments for deferred 
       business acquisition 
       consideration                            (150)              (144) 
      Payments on long-term debt             (10,125)            (5,063) 
      Proceeds from employee 
       stock plans                             8,462              3,301 
      Payments for taxes related 
       to net share settlement                (9,907)            (3,880) 
      Payments for stock 
       repurchases                           (27,783)           (15,468) 
                                       -------------       ------------ 
                    Net cash used 
                     in financing 
                     activities              (39,503)           (21,254) 
                                       -------------       ------------ 
                    Increase in 
                     cash and 
                     cash 
                     equivalents              24,293             58,155 
Effect of exchange rate changes 
 on cash                                      (6,478)            (3,550) 
Cash and cash equivalents at 
 beginning of period                         192,166            125,776 
                                       -------------       ------------ 
Cash and cash equivalents at end 
 of period                          $        209,981      $     180,381 
                                       -------------       ------------ 
 
 
 
                             TaskUs, Inc. 
                       Non-GAAP Reconciliations 
                      Adjusted EBITDA (unaudited) 
                 (in thousands, except margin amounts) 
 
                   Three months ended      Nine months ended September 
                      September 30,                    30, 
                -------------------------  --------------------------- 
                  2025         2024          2025          2024 
                 ------       ------  ---   -------       -------  --- 
Net income      $31,375      $12,699       $ 72,570      $ 37,011 
Provision for 
 income taxes    10,346        5,093         25,953        18,938 
Financing 
 expenses         4,627        5,504         13,925        16,532 
Depreciation     10,553        9,758         30,423        30,525 
Amortization 
 of intangible 
 assets           5,005        4,988         14,978        14,955 
                 ------       ------  ---   -------       -------  --- 
     EBITDA     $61,906      $38,042       $157,849      $117,961 
Transaction 
 costs(1)         1,829           --         11,993            -- 
Operational 
 efficiency 
 costs(2)           881           --          2,108            -- 
Foreign 
 currency 
 losses 
 (gains)(3)      (6,678)       2,490         (5,229)        2,192 
Loss (gain) on 
 disposal of 
 assets              95          (10)           (49)          (93) 
Severance 
 costs(4)           362           --          1,197           487 
Litigation 
 costs(5)            --        4,412             --         7,030 
Stock-based 
 compensation 
 expense(6)       6,513       10,742         24,159        32,434 
Interest 
 income(7)       (1,456)      (1,461)        (4,352)       (3,939) 
                 ------       ------        -------       ------- 
     Adjusted 
      EBITDA    $63,452      $54,215       $187,676      $156,072 
                 ======       ======  ===   =======       =======  === 
Net Income 
 Margin(8)         10.5%         5.0%           8.3%          5.1% 
                 ------       ------        -------       ------- 
Adjusted 
 EBITDA 
 Margin(8)         21.2%        21.2%          21.6%         21.7% 
                 ------       ------        -------       ------- 
 
 
(1)    Represents non-recurring professional service fees related to the 
       take-private transaction that have been expensed during the period. 
(2)    Represents professional service fees related to certain efforts to 
       enhance efficiency of client delivery and operations support. 
(3)    Realized and unrealized foreign currency losses and gains include the 
       effect of fair market value changes of forward contracts not designated 
       as hedging instruments and remeasurement of U.S. dollar-denominated 
       accounts to foreign currency. 
(4)    Represents severance payments as a result of certain cost optimization 
       measures we undertook during the period to restructure support roles. 
(5)    Represents only those litigation costs that are considered 
       non-recurring and outside of the ordinary course of business. 
(6)    Represents stock-based compensation expense, as well as associated 
       payroll tax. 
(7)    Represents interest earned on short-term savings, time-deposits and 
       money market funds. 
(8)    Net Income Margin represents net income divided by service revenue and 
       Adjusted EBITDA Margin represents Adjusted EBITDA divided by service 
       revenue. 
 
 
 
                             TaskUs, Inc. 
                       Non-GAAP Reconciliations 
                    Adjusted Net Income (unaudited) 
                 (in thousands, except margin amounts) 
 
                    Three months ended          Nine months ended 
                       September 30,              September 30, 
                 -------------------------  -------------------------- 
                   2025         2024          2025          2024 
                  ------       ------  ---   -------       ------  --- 
Net income       $31,375      $12,699       $ 72,570      $37,011 
Amortization of 
 intangible 
 assets            5,005        4,988         14,978       14,955 
Transaction 
 costs(1)          1,829           --         11,993           -- 
Operational 
 efficiency 
 costs(2)            881           --          2,108           -- 
Foreign 
 currency 
 losses 
 (gains)(3)       (6,678)       2,490         (5,229)       2,192 
Loss (gain) on 
 disposal of 
 assets               95          (10)           (49)         (93) 
Severance 
 costs(4)            362           --          1,197          487 
Litigation 
 costs(5)             --        4,412             --        7,030 
Stock-based 
 compensation 
 expense(6)        6,513       10,742         24,159       32,434 
Tax impacts of 
 adjustments(7)     (392)      (1,044)        (7,102)      (3,832) 
                  ------       ------        -------       ------ 
     Adjusted 
      Net 
      Income     $38,990      $34,277       $114,625      $90,184 
                  ======       ======  ===   =======       ======  === 
Net Income 
 Margin(8)          10.5%         5.0%           8.3%         5.1% 
                  ------       ------        -------       ------ 
Adjusted Net 
 Income 
 Margin(8)          13.1%        13.4%          13.2%        12.5% 
                  ------       ------        -------       ------ 
 
 
(1)    Represents non-recurring professional service fees related to the 
       take-private transaction that have been expensed during the period. 
(2)    Represents professional service fees related to certain efforts to 
       enhance efficiency of client delivery and operations support. 
(3)    Realized and unrealized foreign currency losses and gains include the 
       effect of fair market value changes of forward contracts not designated 
       as hedging instruments and remeasurement of U.S. dollar-denominated 
       accounts to foreign currency. 
(4)    Represents severance payments as a result of certain cost optimization 
       measures we undertook during the period to restructure support roles. 
(5)    Represents only those litigation costs that are considered 
       non-recurring and outside of the ordinary course of business. 
(6)    Represents stock-based compensation expense, as well as associated 
       payroll tax. 
(7)    Represents tax impacts of adjustments to net income which resulted in a 
       tax benefit during the period, including stock-based compensation 
       expense, transaction costs, operational efficiency costs, and 
       litigation costs. After these adjustments, we applied a non-GAAP 
       effective tax rate of 20.9% and 18.6% for the three months ended 
       September 30, 2025 and 2024, respectively, and 24.0% and 23.7% for the 
       nine months ended September 30, 2025 and 2024, respectively, to 
       non-GAAP income before income taxes. 
(8)    Net Income Margin represents net income divided by service revenue and 
       Adjusted Net Income Margin represents Adjusted Net Income divided by 
       service revenue. 
 
 
 
                              TaskUs, Inc. 
                        Non-GAAP Reconciliations 
                         Adjusted EPS (unaudited) 
 
                      Three months ended     Nine months ended September 
                        September 30,                    30, 
                   ------------------------  ---------------------------- 
                       2025         2024         2025           2024 
                    ----------   ----------   ----------   -------------- 
GAAP diluted EPS   $      0.34  $      0.14  $      0.78  $          0.40 
Per share 
 adjustments to 
 net income(1)            0.08         0.23         0.45             0.58 
                    ----------   ----------   ----------   -------------- 
    Adjusted EPS   $      0.42  $      0.37  $      1.23  $          0.98 
                    ==========   ==========   ==========   ============== 
 
Weighted-average 
 common shares 
 outstanding -- 
 diluted            93,057,417   92,579,919   93,096,587       92,019,911 
 
 
(1)    Reflects the aggregate adjustments made to reconcile net income to 
       Adjusted Net Income, as noted in the above table, divided by the GAAP 
       diluted weighted-average number of shares outstanding for the relevant 
       period. 
 
 
 
                              TaskUs, Inc. 
                        Non-GAAP Reconciliations 
                       Free Cash Flow (unaudited) 
                   (in thousands, except percentages) 
 
                    Three months ended       Nine months ended September 
                       September 30,                     30, 
                ---------------------------  --------------------------- 
                  2025          2024           2025          2024 
                 -------       -------  ---   -------       -------  --- 
Net cash 
 provided by 
 operating 
 activities     $ 54,264      $ 17,019       $107,549      $ 98,230 
Purchase of 
 property and 
 equipment       (12,302)      (10,733)       (43,753)      (18,821) 
                 -------       -------        -------       ------- 
     Free Cash 
      Flow      $ 41,962      $  6,286       $ 63,796      $ 79,409 
Payment for 
 transaction 
 costs               642            --          3,189            -- 
Payment for 
 litigation 
 costs             4,502         2,811          7,850         2,811 
Payment for 
 operational 
 efficiency 
 costs               881            --          2,108            -- 
                 -------       -------  ---   -------       -------  --- 
     Adjusted 
      Free 
      Cash 
      Flow      $ 47,987      $  9,097       $ 76,943      $ 82,220 
                 =======       =======  ===   =======       =======  === 
Conversion of 
 Adjusted 
 EBITDA to 
 Free Cash 
 Flow(1)            66.1%         11.6%          34.0%         50.9% 
                 -------       -------        -------       ------- 
Conversion of 
 Adjusted 
 EBITDA to 
 Adjusted Free 
 Cash Flow(1)       75.6%         16.8%          41.0%         52.7% 
                 -------       -------        -------       ------- 
 
 
(1)    Conversion of Adjusted EBITDA to Free Cash Flow represents Free Cash 
       Flow divided by Adjusted EBITDA Conversion of Adjusted EBITDA to 
       Adjusted Free Cash Flow represents Adjusted Free Cash Flow divided by 
       Adjusted EBITDA. 
 

Definitions of Non-GAAP Metrics

EBITDA and Adjusted EBITDA

EBITDA is a non-GAAP profitability measure that represents net income or loss for the period before the impact of the benefit from or provision for income taxes, financing expenses, depreciation, and amortization of intangible assets. EBITDA eliminates potential differences in performance caused by variations in capital structures (affecting financing expenses), tax positions (such as the availability of net operating losses against which to relieve taxable profits), the cost and age of tangible assets (affecting relative depreciation expense) and the extent to which intangible assets are identifiable (affecting relative amortization expense).

Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before certain items that are considered to hinder comparison of the performance of our business on a period-over-period basis or with other businesses. During the periods presented, we excluded from Adjusted EBITDA operational efficiency costs, the effect of foreign currency gains and losses, gains and losses on disposals of assets, certain severance costs, certain non-recurring litigation costs, stock-based compensation expense and associated employer payroll tax and interest income, which include costs that are required to be expensed in accordance with GAAP. Our management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.

Adjusted EBITDA Margin represents Adjusted EBITDA divided by service revenue.

Adjusted Net Income

Adjusted Net Income is a non-GAAP profitability measure that represents net income or loss for the period before the impact of amortization of intangible assets and certain items that are considered to hinder comparison of the performance of our businesses on a period-over-period basis or with other businesses. During the periods presented, we excluded from Adjusted Net Income amortization of intangible assets, operational efficiency costs, the effect of foreign currency gains and losses, gains and losses on disposals of assets, certain severance costs, certain non-recurring litigation costs, stock-based compensation expense and associated employer payroll tax and the related effect on income taxes of certain pre-tax adjustments, which include costs that are required to be expensed in accordance with GAAP. Our management believes that the inclusion of supplementary adjustments to net income applied in presenting Adjusted Net Income are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.

Adjusted Net Income Margin represents Adjusted Net Income divided by service revenue.

Adjusted EPS

Adjusted EPS is a non-GAAP profitability measure that represents earnings available to shareholders excluding the impact of certain items that are considered to hinder comparison of the performance of our business on a period-over-period basis or with other businesses. Adjusted EPS is calculated as Adjusted Net Income divided by our diluted weighted-average number of shares outstanding. Our management believes that the inclusion of supplementary adjustments to earnings per share applied in presenting Adjusted EPS are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.

Free Cash Flow

Free Cash Flow is a non-GAAP liquidity measure that represents our ability to generate additional cash from our business operations. Free Cash Flow is calculated as net cash provided by operating activities in the period minus cash used for purchase of property and equipment in the period. Our management believes that the inclusion of this non-GAAP measure, when considered with our GAAP results, provides management and investors with an additional understanding of our ability to generate additional cash for ongoing business operations and other capital deployment.

Adjusted Free Cash Flow is a non-GAAP liquidity measure that represents Free Cash Flow before the payments for transaction costs, operational efficiency costs and certain litigation costs that are considered non-recurring and outside of the ordinary course of business, which would hinder comparison of the performance of our business on a period-over-period basis or with other businesses. Our management believes that the inclusion of these supplementary adjustments to Free Cash Flow are appropriate to provide additional information to investors about these unusual items that we do not expect to continue at the same level in the future.

Conversion of Adjusted EBITDA to Free Cash Flow represents Free Cash Flow divided by Adjusted EBITDA. Conversion of Adjusted EBITDA to Adjusted Free Cash Flow represents Adjusted Free Cash Flow divided by Adjusted EBITDA.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251107123527/en/

 
    CONTACT:    Investor Contact 

Trent Thrash

IR@taskus.com

Media Contact

Ramya Kumaraswamy

mediainquiries@taskus.com

 
 

(END) Dow Jones Newswires

November 07, 2025 07:00 ET (12:00 GMT)

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