TaskUs (NASDAQ:TASK) Releases Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• TaskUs beat quarterly estimates: The company reported $0.33 in EPS versus the $0.28 consensus and generated $308.9 million in revenue, up 5% year over year. Adjusted EBITDA was $57.7 million, representing an 18.7% margin.
• Management raised its 2026 outlook to $1.22 billion–$1.24 billion in revenue, approximately 19% adjusted EBITDA margins and $110 million–$120 million in adjusted free cash flow. AI Services revenue grew 25.8%, while Digital Customer Experience revenue increased 6.4%.
• Several headwinds remain: Revenue from TaskUs’ largest client fell about 22%, Trust & Safety revenue declined 12.3%, and analysts’ average rating is “Hold” with an $11.20 consensus price target.

TaskUs (NASDAQ:TASK - Get Free Report) announced its earnings results on Wednesday. The company reported $0.33 EPS for the quarter, beating analysts' consensus estimates of $0.28 by $0.05, FiscalAI reports. The business had revenue of $308.86 million for the quarter, compared to analysts' expectations of $297.58 million. TaskUs had a net margin of 8.70% and a return on equity of 24.93%.

Here are the key takeaways from TaskUs' conference call:

• Raised 2026 outlook: TaskUs increased its full-year revenue guidance to $1.22 billion–$1.24 billion and expects approximately 19% adjusted EBITDA margins. Adjusted free cash flow guidance was also raised to $110 million–$120 million.
• Second-quarter revenue rose 5% year over year to $308.9 million, exceeding the high end of guidance, while adjusted EBITDA reached $57.7 million, or an 18.7% margin. Excluding the largest client, revenue grew approximately 15%, led by roughly 30% growth from the second- through 20th-largest client cohort.
• AI Services and Digital Customer Experience remained growth engines: AI Services revenue increased 25.8% to $66.1 million, with growth expected to reaccelerate above 30% in the fourth quarter, while DCX revenue rose 6.4% to $175.7 million.
• Revenue from the largest client declined approximately 22% year over year, and management expects further automation- and cost-optimization-related pressure through the remainder of 2026. Trust & Safety revenue also fell 12.3%, primarily due to declining social-media workloads, although stabilization is anticipated in 2027.
• Management expects third-quarter revenue of $300 million–$302 million and adjusted EBITDA margins of approximately 18.7%; continued wage inflation, U.S. delivery mix, pricing pressure, and investments in AI and growth initiatives are expected to offset efficiency gains.

TaskUs Price Performance

Shares of NASDAQ TASK traded down $0.22 during trading on Wednesday, hitting $6.32. 453,595 shares of the company were exchanged, compared to its average volume of 637,636. The firm's fifty day moving average price is $5.57 and its 200 day moving average price is $7.64. The company has a debt-to-equity ratio of 1.73, a current ratio of 2.75 and a quick ratio of 2.75. The company has a market cap of $578.79 million, a price-to-earnings ratio of 5.54 and a beta of 1.87. TaskUs has a 1 year low of $4.47 and a 1 year high of $18.39.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on TASK. Wall Street Zen lowered TaskUs from a "buy" rating to a "hold" rating in a report on Monday, May 11th. The Goldman Sachs Group decreased their price objective on TaskUs from $10.00 to $7.00 and set a "sell" rating for the company in a research report on Thursday, May 7th. Weiss Ratings reiterated a "sell (d+)" rating on shares of TaskUs in a research note on Tuesday, July 14th. Wedbush dropped their target price on TaskUs from $14.00 to $12.00 and set an "outperform" rating on the stock in a report on Thursday, May 7th. Finally, Morgan Stanley set a $6.00 price target on TaskUs in a research note on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, TaskUs currently has an average rating of "Hold" and a consensus target price of $11.20.

Hedge Funds Weigh In On TaskUs

Hedge funds and other institutional investors have recently bought and sold shares of the company. New York State Common Retirement Fund acquired a new position in shares of TaskUs during the 2nd quarter worth $67,000. State of Wyoming acquired a new stake in TaskUs during the 4th quarter valued at $59,000. Kestra Advisory Services LLC purchased a new stake in shares of TaskUs in the fourth quarter valued at $87,000. PenderFund Capital Management Ltd. purchased a new position in TaskUs in the 3rd quarter valued at about $157,000. Finally, Skandinaviska Enskilda Banken AB publ purchased a new stake in TaskUs in the 4th quarter worth approximately $118,000. 44.64% of the stock is owned by institutional investors and hedge funds.

About TaskUs

TaskUs, Inc is a leading provider of outsourced digital customer experience and business process solutions, specializing in high-touch services for technology and digital-native companies. The firm delivers a range of offerings including customer care, content moderation, trust and safety monitoring, back-office processing and AI operations support. By combining technology-driven platforms with human-centric workflows, TaskUs helps clients optimize operational efficiency and maintain brand integrity across digital channels.

The company was founded in 2008 by Jaspar Weir and Bryce Maddock with the goal of reimagining traditional outsourcing through a focus on culture, technology and innovation.

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