TaskUS | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 308.86 M

Revenue: As of FY2026 Q2, the actual value is USD 308.86 M, beating the estimate of USD 297.5 M.

EPS: As of FY2026 Q2, the actual value is USD 0.24, beating the estimate of USD 0.17.

EBIT: As of FY2026 Q2, the actual value is USD 38.34 M.

Second Quarter 2026 Financial Highlights

Service Revenue

TaskUs, Inc. reported service revenue of $308.9 million for the second quarter of 2026, marking a 5.0% year-over-year growth from $294.1 million in the second quarter of 2025. For the six months ended June 30, 2026, service revenue was $615.1 million, an increase of 7.6% compared to $571.9 million for the same period in 2025.

Net Income

Net income for the second quarter of 2026 was $22.0 million, an increase of 9.6% from $20.0 million in the second quarter of 2025. The net income margin was 7.1% in Q2 2026, up from 6.8% in Q2 2025. For the six months ended June 30, 2026, net income was $46.3 million, a 12.4% increase from $41.2 million in the prior year period. The net income margin for the six months ended June 30, 2026, was 7.5%, compared to 7.2% for the same period in 2025.

Adjusted Net Income

Adjusted Net Income was $30.6 million in the second quarter of 2026, a decrease of -22.8% from $39.7 million in the second quarter of 2025. The Adjusted Net Income margin was 9.9% in Q2 2026, down from 13.5% in Q2 2025. For the six months ended June 30, 2026, Adjusted Net Income was $63.4 million, a -16.2% decrease from $75.6 million in the prior year period. The Adjusted Net Income margin for the six months ended June 30, 2026, was 10.3%, compared to 13.2% for the same period in 2025.

Adjusted EBITDA

Adjusted EBITDA for the second quarter of 2026 was $57.7 million, a -11.2% decrease from $65.0 million in the second quarter of 2025. The Adjusted EBITDA margin was 18.7% in Q2 2026, down from 22.1% in Q2 2025. For the six months ended June 30, 2026, Adjusted EBITDA was $116.2 million, a -6.4% decrease from $124.2 million in the prior year period. The Adjusted EBITDA margin for the six months ended June 30, 2026, was 18.9%, compared to 21.7% for the same period in 2025.

Operating Income

Operating income for the second quarter of 2026 was $33.3 million, compared to $30.4 million in the second quarter of 2025. For the six months ended June 30, 2026, operating income was $67.5 million, compared to $64.6 million for the same period in 2025.

Operating Expenses

Total operating expenses were $275.5 million in the second quarter of 2026, compared to $263.7 million in the second quarter of 2025. For the six months ended June 30, 2026, total operating expenses were $547.6 million, compared to $507.3 million for the same period in 2025.

Cash Flow from Operating Activities

Net cash provided by operating activities was $43.1 million in the second quarter of 2026, a 153.4% increase from $17.0 million in the second quarter of 2025. For the six months ended June 30, 2026, net cash provided by operating activities was $89.4 million, a 67.8% increase from $53.3 million in the prior year period.

Free Cash Flow

Free Cash Flow was $32.6 million in the second quarter of 2026, compared to $0.038 million in the second quarter of 2025. For the six months ended June 30, 2026, Free Cash Flow was $68.7 million, a 214.7% increase from $21.8 million in the prior year period.

Adjusted Free Cash Flow

Adjusted Free Cash Flow was $36.4 million in the second quarter of 2026, representing a 459.1% increase from $6.5 million in the second quarter of 2025. For the six months ended June 30, 2026, Adjusted Free Cash Flow was $78.7 million, a 171.6% increase from $29.0 million in the prior year period.

Conversion of Adjusted EBITDA to Free Cash Flow

Conversion of Adjusted EBITDA to Free Cash Flow was 56.5% in the second quarter of 2026, compared to 0.1% in the second quarter of 2025. For the six months ended June 30, 2026, the conversion rate was 59.1%, compared to 17.6% for the same period in 2025.

Conversion of Adjusted EBITDA to Adjusted Free Cash Flow

Conversion of Adjusted EBITDA to Adjusted Free Cash Flow was 63.2% in the second quarter of 2026, compared to 10.0% in the second quarter of 2025. For the six months ended June 30, 2026, the conversion rate was 67.7%, compared to 23.3% for the same period in 2025.

Cash and Cash Equivalents

Cash and cash equivalents were $180.3 million as of June 30, 2026, a decrease from $211.7 million as of December 31, 2025.

Operational Metrics

AI Services experienced 25.8% year-over-year growth, making it TaskUs, Inc.’s fastest-growing service line for the sixth consecutive quarter. Digital Customer Experience growth accelerated to 6.4% compared to Q2 2025. The company increased its liquidity to $180.3 million in cash and $100.0 million of borrowing capacity under its revolving credit facility. TaskUs, Inc. had approximately 63,200 teammates at the end of the second quarter of 2026.

Outlook and Guidance

For the third quarter of 2026, TaskUs, Inc. expects revenue between $300 million and $302 million, with an approximate 0.8% year-over-year growth at the midpoint, and an Adjusted EBITDA Margin of approximately 18.7%. For the full year 2026, the company anticipates revenue between $1.22 billion and $1.24 billion, representing approximately 3.9% year-over-year growth at the midpoint, and an Adjusted EBITDA margin of approximately 19.0%. Additionally, TaskUs, Inc. projects full-year 2026 Adjusted Free Cash Flow to be between $110 million and $120 million.