TaskUS | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 306.27 M

Revenue: As of FY2026 Q1, the actual value is USD 306.27 M, beating the estimate of USD 296.68 M.

EPS: As of FY2026 Q1, the actual value is USD 0.26, beating the estimate of USD 0.2013.

EBIT: As of FY2026 Q1, the actual value is USD 37.98 M.

Overall Service Revenue

• 2026: $306.3 million
• 2025: $277.8 million
• Year-over-Year Change: Increased by $28.5 million, or 10.3%

Service Revenue by Service Offering

• Digital Customer Experience:
  • 2026: $168.5 million
  • 2025: $159.9 million
  • Year-over-Year Change: Increased by $8.6 million, or 5.4%
  • Drivers: Primarily existing clients in Entertainment & Gaming, Mobility, Logistics & Travel, Healthcare, and Technology, partially offset by decreases in Financial Services and Retail & eCommerce, with new clients in Technology also contributing .
• Trust & Safety:
  • 2026: $75.8 million
  • 2025: $72.4 million
  • Year-over-Year Change: Increased by $3.4 million, or 4.7%
  • Drivers: Primarily new clients in Technology and existing clients in Technology and Social Media, partially offset by a decrease in Retail & eCommerce .
• AI Services:
  • 2026: $61.9 million
  • 2025: $45.5 million
  • Year-over-Year Change: Increased by $16.4 million, or 36.1%
  • Drivers: Primarily existing clients in Mobility, Logistics & Travel, and new clients in Mobility, Logistics & Travel and Technology .

Service Revenue by Delivery Geography

• Philippines:
  • 2026: $160.0 million
  • 2025: $151.7 million
  • Year-over-Year Change: Increased by $8.3 million, or 5.5%
• United States:
  • 2026: $41.2 million
  • 2025: $33.2 million
  • Year-over-Year Change: Increased by $8.0 million, or 24.1%
• India:
  • 2026: $40.2 million
  • 2025: $35.4 million
  • Year-over-Year Change: Increased by $4.8 million, or 13.4%
• Rest of World:
  • 2026: $64.9 million
  • 2025: $57.4 million
  • Year-over-Year Change: Increased by $7.4 million, or 13.0%, with growth led by Latin America .

Operational Metrics

• Net Income:
  • 2026: $24.3 million
  • 2025: $21.1 million
  • Year-over-Year Change: Increased by 15.1%
  • Net Income Margin: 7.9% in 2026, up from 7.6% in 2025 .
• Adjusted Net Income:
  • 2026: $32.8 million
  • 2025: $35.9 million
  • Year-over-Year Change: Decreased by -8.9%
  • Adjusted Net Income Margin: 10.7% in 2026, down from 12.9% in 2025 .
• Adjusted EBITDA:
  • 2026: $58.6 million
  • 2025: $59.3 million
  • Year-over-Year Change: Decreased by -1.2%
  • Adjusted EBITDA Margin: 19.1% in 2026, down from 21.3% in 2025 .
• Cost of Services:
  • 2026: $197.8 million
  • 2025: $171.2 million
  • Year-over-Year Change: Increased by $26.6 million, or 15.5%, primarily due to higher personnel costs ($19.5 million) and facilities costs .
• Selling, General and Administrative Expense:
  • 2026: $58.3 million
  • 2025: $57.4 million
  • Year-over-Year Change: Increased by $0.9 million, or 1.5%, driven by $1.1 million in transaction costs and software costs, partially offset by lower personnel costs and reduced operational efficiency costs .
• Depreciation:
  • 2026: $11.0 million
  • 2025: $10.0 million
  • Year-over-Year Change: Increased by $1.0 million, or 10.3%, due to site expansions and technology hardware acquisitions .
• Amortization of Intangible Assets:
  • 2026: $5.0 million
  • 2025: $5.0 million
  • Year-over-Year Change: Increased by $0.03 million, or 0.6% .
• Operating Income:
  • 2026: $34.2 million
  • 2025: $34.2 million
  • Year-over-Year Change: Decreased by -$0.03 million, or -0.1% .
• Other Income, Net:
  • 2026: -$7.3 million
  • 2025: -$0.2 million
  • Year-over-Year Change: Decreased by -$7.2 million, primarily due to foreign currency gains .
• Financing Expenses:
  • 2026: $5.3 million
  • 2025: $4.7 million
  • Year-over-Year Change: Increased by $0.6 million, or 13.0%, due to a higher outstanding principal balance and interest rate after refinancing, and a -$0.2 million loss on debt extinguishment .
• Provision for Income Taxes:
  • 2026: $11.9 million
  • 2025: $8.6 million
  • Effective Tax Rate: 32.9% in 2026, 28.9% in 2025 .
• Stock-based Compensation Expense:
  • 2026: $6.6 million
  • 2025: $8.7 million
  • Unrecognized Compensation Expense: $29.7 million for unvested RSUs and $1.9 million for PSUs, expected over weighted-average periods of 1.7 years and 1.0 year, respectively .

Cash Flow

• Net Cash Provided by Operating Activities:
  • 2026: $46.3 million
  • 2025: $36.3 million
• Net Cash Used in Investing Activities:
  • 2026: -$10.2 million
  • 2025: -$14.5 million
• Net Cash Used in Financing Activities:
  • 2026: -$88.8 million
  • 2025: -$18.0 million
  • Drivers: Primarily due to a $332.8 million dividend distribution, $242.0 million in debt payments, and $9.0 million in debt financing fees, partially offset by $500.0 million in new long-term debt proceeds .
• Free Cash Flow:
  • 2026: $36.1 million
  • 2025: $21.8 million
• Conversion of Adjusted EBITDA to Free Cash Flow:
  • 2026: 61.6%
  • 2025: 36.8%

Unique Metrics

• Revenue by Top Clients:
  • Top ten clients: 63% of total service revenue in 2026, compared to 57% in 2025 .
  • Top twenty clients: 75% of total service revenue in 2026, compared to 70% in 2025 .
  • Largest client: 24% of service revenue in 2026, compared to 26% in 2025 .
• Total Indebtedness (net of debt financing fees): $491.6 million as of March 31, 2026 .
• Cash and Cash Equivalents: $152.3 million as of March 31, 2026 .

Future Outlook and Strategy

TaskUs, Inc. plans to continue investing in business growth, expecting existing cash and 2026 Credit Facilities to cover working capital and capital expenditure needs for at least the next 12 months . The company aims for meaningful client and revenue diversification by winning new clients and growing with existing ones in high-growth industry verticals . Future long-term liquidity needs may be met through additional indebtedness, equity financings, or a combination thereof .