TaskUs Inc-A (NASDAQ:TASK) Tops Q3 2025 Earnings Estimates on Strong AI Growth

TaskUs Inc-A (NASDAQ:TASK) reported financial results for the third quarter of 2025 that surpassed analyst expectations on both the top and bottom lines. The digital outsourcing provider's performance was largely driven by continued explosive growth in its artificial intelligence services segment.

Earnings and Revenue Overview

The company posted revenue of $298.7 million for the quarter ended September 30, 2025, representing 17% year-over-year growth and exceeding analyst estimates of $296.7 million. This marks another quarter of strong top-line expansion for the company.

On the profitability front, TaskUs delivered adjusted earnings per share of $0.42, comfortably beating the consensus estimate of $0.39 per share. The company's non-GAAP net income reached $39.0 million, translating to a healthy 13.1% margin.

Key financial highlights from the quarter include:

• Total revenues of $298.7 million (17.0% YoY growth)
• Adjusted EPS of $0.42 versus $0.39 estimated
• Adjusted EBITDA of $63.5 million (21.2% margin)
• Net cash from operations of $54.3 million
• Free cash flow of $42.0 million

Business Segment Performance and Operational Metrics

AI Services remained the standout performer for TaskUs, marking the third consecutive quarter with growth exceeding 60% year-over-year. The Trust + Safety division also maintained strong momentum with nearly 20% revenue growth. The company ended the quarter with 63,800 teammates worldwide, reflecting the scaling of operations to meet client demand.

CEO Bryce Maddock attributed the results to "operational execution, financial discipline and the investments we have made in our specialized service offerings," specifically highlighting the company's industry-leading Adjusted EBITDA margins.

Forward Guidance and Market Reaction

Looking ahead, TaskUs provided fourth quarter revenue guidance ranging from $302.4 million to $304.4 million, with the midpoint of $303.4 million coming in slightly below analyst expectations of $307.7 million. For the full year 2025, the company expects revenue between $1.173 billion and $1.175 billion, exceeding the analyst sales estimate of $1.169 billion.

The market reaction has been notably positive, with shares rising approximately 5.7% in pre-market trading following the earnings announcement. This upward movement suggests investors are focusing on the earnings beat and strong full-year guidance rather than the slightly conservative fourth-quarter outlook.

CFO Balaji Sekar commented on the company's positioning, stating, "Our strong balance sheet and cash flow position us well for the investments needed for the transformation ahead," specifically mentioning planned investments in Generative AI led transformation services.

Financial Position and Capital Allocation

The company demonstrated robust cash flow generation during the quarter, with free cash flow of $42.0 million representing a 66.1% conversion rate from Adjusted EBITDA. This strong cash generation provides TaskUs with flexibility to continue investing in growth initiatives while maintaining a healthy balance sheet.

For more detailed earnings analysis and future estimates, review the earnings estimates for TASK.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy or sell any security. Investors should conduct their own research and consult with a financial advisor before making investment decisions.