TaskUs Q3 Earnings Call Highlights

Key Points

• TaskUs reported record Q3 revenue of $314.7 million, up 5.4% year over year and $12.7 million above the top of its guidance. It raised its 2026 revenue outlook to $1.249 billion–$1.251 billion and lifted its adjusted free cash flow forecast to $115 million–$125 million.
• AI Services revenue grew 27.7% to $75 million, helping offset a 15.8% decline in Trust & Safety revenue tied largely to reduced work from TaskUs’s biggest client. That client’s share of revenue fell to 17% from 27% a year earlier; excluding it, revenue grew nearly 20%.
• TaskUs plans to invest more in physical AI, autonomous vehicles and AI-enabled customer experience in 2027, which may constrain near-term margin expansion. Management expects autonomous vehicle and robotics revenue to exceed $100 million in 2026, more than triple the 2025 level.

TaskUs NASDAQ: TASK reported record third-quarter revenue and raised its full-year outlook, as growth in artificial intelligence services and customer experience work offset a decline in business from its largest client.

Revenue rose 5.4% from a year earlier to $314.7 million, exceeding the top end of the company’s guidance by $12.7 million. Adjusted earnings before interest, taxes, depreciation and amortization were $59.1 million, or 18.8% of revenue, about 10 basis points above the company’s margin guidance.

Adjusted net income fell to $31.3 million, or 34 cents per share, from $39 million, or 42 cents per share, a year earlier. Chief Financial Officer Rishabh Khemka attributed the decline primarily to higher interest expense following a refinancing and higher service costs, partly offset by lower income tax expense.

AI Services Growth Offsets Largest-Client Decline

AI Services revenue rose 27.7% to $75 million, marking its eighth consecutive quarter of growth above 25%. It became TaskUs’ second-largest service line during the quarter, driven primarily by work in autonomous vehicles, autonomous delivery and robotics.

Co-founder and Chief Executive Officer Bryce Maddock said revenue from autonomous vehicles and robotics is expected to exceed $100 million for full-year 2026, more than three times the 2025 level. He expects AI Services to remain the company’s fastest-growing service line in 2027.

Digital Customer Experience revenue increased 7.1% to $175.9 million. Trust & Safety revenue, which includes content moderation and financial crime and compliance services, fell 15.8% to $63.9 million, primarily because of lower revenue from the largest client.

That client accounted for 17% of third-quarter revenue, down from 27% a year earlier, as its automation and cost-optimization initiatives reduced work for TaskUs. Excluding the client, revenue grew nearly 20%, while revenue from the company’s second- through 20th-largest clients increased 37%, Maddock said.

Maddock expects continued pressure from the largest client for the next few quarters. He said most of its automation work has occurred, although further, more modest automation is expected in 2027. TaskUs anticipates benefiting from the client’s vendor consolidation and has won work supporting its personal agentic AI initiatives.

The CEO said year-over-year growth from the client is not expected in the first couple of quarters of 2027, but is possible in the second half.

Higher Outlook and Investment Plans

TaskUs raised its full-year 2026 revenue outlook to between $1.249 billion and $1.251 billion. At the $1.25 billion midpoint, the forecast represents 5.6% growth from 2025. The company maintained its expectation for an adjusted EBITDA margin of approximately 19%.

Management also increased its full-year adjusted free cash flow forecast to $115 million to $125 million, a $5 million increase at the midpoint. For the fourth quarter, TaskUs expects revenue of $319 million to $321 million and an adjusted EBITDA margin of approximately 19.5%.

Maddock said the company plans to increase investment in physical AI, autonomous vehicles and the AI transformation of its customer experience business in 2027. He cautioned that the spending will constrain near-term margin expansion, though management expects it to support longer-term growth.

Khemka said growth in AI Services is currently weighted toward lower-margin onshore work. Over the medium to long term, he expects more of that work to move offshore. In the meantime, TaskUs is using AI tools, overhead controls and pricing discussions with customers to help offset margin pressure.

New AI Work and Cash Flow

Maddock said TaskUs secured a contract to provide remote teleoperation support for a technology company’s last-mile delivery robots and expanded work with a consumer robotics developer. The company is also developing datasets using short-term rental properties as testing environments.

In AI safety, TaskUs is working toward a partnership with a large language model developer on solutions intended to monitor, detect and help mitigate suicide and self-harm incidents, Maddock said. He also described work in adversarial testing and red teaming for model developers and other clients.

Cash and cash equivalents stood at $189.7 million at Sept. 30, compared with $211.7 million at the end of 2025. Cash generated from operations through the first nine months rose to $120.1 million from $107.5 million a year earlier. Khemka said the company expects full-year capital expenditures of approximately $45 million, $15 million below its initial outlook.

About TaskUs (NASDAQ:TASK)

TaskUs, Inc NASDAQ: TASK is a provider of digital outsourcing and customer experience services for technology companies and other high-growth businesses. The company helps clients manage customer interactions, back-office operations and other business processes through a combination of trained personnel, technology and data-driven workflows.

Its services include customer care, technical support, content moderation, trust and safety, fraud prevention, artificial intelligence operations and back-office support.

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