TASK

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the business process outsourcing & consulting industry, including TaskUs (NASDAQ:TASK) and its peers. The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled consultants and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly. The 8 business process outsourcing & consulting stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 1.5% below. Luckily, business process outsourcing & consulting stocks have performed well with share prices up 12.4% on average since the latest earnings results. Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ:TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies. TaskUs reported revenues of $308.9 million, up 5% year on year. This print exceeded analysts’ expectations by 3.9%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates. Interestingly, the stock is up 35.6% since reporting and currently trades at $8.57. Is now the time to buy TaskUs? Access our full analysis of the earnings results here, it’s free. Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ:HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions. Huron reported revenues of $475 million, up 15.4% year on year, outperforming analysts’ expectations by 3.2%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates. Huron delivered the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 31.7% since reporting. It currently trades at $159.85. Is now the time to buy Huron? Access our full analysis of the earnings results here, it’s free. With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ:CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers. Concentrix reported revenues of $2.46 billion, up 1.9% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS guidance for next quarter estimates. Concentrix delivered the weakest guidance update and weakest full-year guidance update in the group. Interestingly, the stock is up 16.3% since the results and currently trades at $29.34. Read our full analysis of Concentrix’s results here. With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE:CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations. CBIZ reported revenues of $682.2 million, flat year on year. This number came in 2.3% below analysts’ expectations. Taking a step back, it was still a satisfactory quarter as it put up a beat of analysts’ EPS estimates. CBIZ had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 16.7% since reporting and currently trades at $54.51. Read our full, actionable report on CBIZ here, it’s free. Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ:CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy. CRA reported revenues of $210.8 million, up 12.8% year on year. This print topped analysts’ expectations by 6%. Overall, it was a very strong quarter as it also logged a narrow beat of analysts’ EPS estimates. CRA pulled off the biggest analyst estimate beat of the whole group. The stock is down 1.2% since reporting and currently trades at $174.56. Read our full, actionable report on CRA here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

TaskUs’ second quarter results were marked by outperformance versus Wall Street expectations, with revenue growing 5% year over year, bolstered by continued strength in AI services and digital customer experience (DCX) offerings. Management attributed the quarter’s positive momentum to robust expansion among existing clients outside its largest account, as well as disciplined cost controls that helped maintain margins despite personnel cost inflation and a shift to more U.S.-based delivery. CEO Bryce Maddock highlighted, “Our business’ ability to generate cash was on full display in Q2,” pointing to the company’s liquidity and operational resilience. Is now the time to buy TASK? Find out in our full research report (it’s free). Revenue: $308.9 million vs analyst estimates of $297.3 million (5% year-on-year growth, 3.9% beat) Adjusted EPS: $0.33 vs analyst estimates of $0.28 (19.2% beat) Adjusted EBITDA: $57.67 million vs analyst estimates of $53.1 million (18.7% margin, 8.6% beat) The company slightly lifted its revenue guidance for the full year to $1.23 billion at the midpoint Operating Margin: 10.8%, in line with the same quarter last year Market Capitalization: $632.6 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jonathan Lee (Guggenheim Partners) asked about the moderation in AI services growth and whether this was due to tougher comparisons or client-specific factors. CEO Bryce Maddock explained that project-based dynamics and client automation caused temporary deceleration, but expects growth to reaccelerate above 30% by year-end as autonomous vehicle work stabilizes. Jonathan Lee (Guggenheim Partners) followed up on guidance range and top-client trajectory. Maddock said guidance remains cautious due to ongoing reductions at the largest client, but confidence is high in growth from the broader client base driving performance. Maggie Nolan (William Blair) inquired when vendor consolidation at the largest client might offset automation-driven revenue losses. Maddock expects this to begin in 2027, with continued pressure through 2026, but believes TaskUs will benefit as a preferred vendor for complex, high-value work. Maggie Nolan (William Blair) asked if AI services are expanding the company’s total addressable market. Maddock responded that AI work is largely net new business for both TaskUs and the broader industry, creating growth opportunities beyond just shifting existing workloads. Jacob Haggarty (Baird) questioned the sustainability of U.S.-based delivery in AI services and potential for margin recovery. Maddock said U.S. delivery growth will persist as AI scales, but over time, more work may migrate offshore to boost margins. Looking ahead, the StockStory team will be watching (1) the pace of AI services revenue acceleration, particularly in autonomous vehicle and robotics segments; (2) stabilization or improvement in trust and safety revenues as automation pressures play out; and (3) the impact of ongoing delivery mix shifts between U.S. and offshore locations on operating margins. The effectiveness of cost control and operational investments will also be key to monitoring TaskUs’ ability to sustain margin performance. TaskUs currently trades at $6.93, up from $6.32 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET Senior Vice President of Corporate Development and Investor Relations - Trent Thrash Co-Founder and Chief Executive Officer - Bryce Maddock Chief Financial Officer - Rishabh Khemka Operator: Good afternoon, and welcome to TaskUs Second Quarter 2026 Investor Call. My name is James, and I will be your conference facilitator today. At this time, all lines have been placed on mute to avoid background noise. After the speakers' remarks, there will be a question-and-answer session. Ask a question during the session, you need to press *11 on your telephone. And you will hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. I would now like to introduce Trent Thrash. Senior vice president of corporate development and investor relations. Trent, please go ahead. Trent Thrash: Hello, everyone, and thank you for joining us for today's TaskUs earnings call. Full details of our results and additional management commentary are available in our earnings release, which can be found on the Investor Relations section of our website. At ir.taskus.com. We have also posted supplemental information on our website including an investor presentation and an Excel based financial metrics file. Before we start, I would like to remind you that the following discussions contain forward looking statements within the meaning of the federal securities laws. Including, but not limited to, statements regarding our future financial results and management's expectations and plans for the business. These statements are neither promises nor guarantees, and involve risks and uncertainties that may cause actual results to differ materially from those discussed here. You should not place undue reliance on any forward looking statements. For details on the uncertainties and other that may cause our actual results to be materially different than those expressed in our forward looking statements see the Risk Factors section of our most recent annual report on Form 10-K, our quarterly reports on Form 10-Q, and other documents filed with or furnished to the SEC. These filings, which may be supplemented with subsequent periodic reports, are accessible on the SEC's website and our Investor Relations website. Any forward looking statements made on today's conference call including responses to questions, are based on current expectations as of today, and task us assumes no obligation to update or revise them whether as a result of new developments or otherwise, except as required by law. The discussions throughout today's call contain non GAAP financial measures. For a reconciliation of these non GAAP financial measures to the most comparable GAAP metric please see our earnings press release, which is available in the IR section of our website. Now I will turn the call over to Bryce Maddock, our Co Founder and Chief Executive Officer. Bryce? Bryce Maddock: Thank you, Trent. Good afternoon, everyone, and thank you for joining us. Before we dive into the quarter, I want to take a moment to warmly welcome Rishabh Khemka, our new chief financial officer to his first Taskus earnings call. Rishabh brings an extraordinary track record of financial leadership, operational excellence, and disciplined growth across dynamic technology and service companies. he is hit the ground running and has already made an impact on our business in less than 2 months on the job. We are thrilled to have Rishabh on board, and I know he looks forward to partnering with many of you on today's call. In the second quarter, we again delivered solid performance. Generating $309 million in revenue, which outperformed the top end of our revenue guidance by $10.9 million or 3.6%. Our year over year revenue growth rate at 5% helped us generate $57.7 million in adjusted EBITDA or an adjusted EBITDA margin of 18.7%. This was 70 basis points ahead of our margin guidance and on a dollar basis, it was 7.5% ahead of the adjusted EBITDA implied by the top end of our Q2 revenue guidance. Our business' ability to generate cash was on full display in Q2, we delivered $36.4 million in adjusted free cash flow bringing our cash balance to $180 million. This brought our net leverage ratio down under 1.3x giving us a very strong balance sheet with ample liquidity to continue to invest in our AI and growth initiatives. Those investments are paying off. In Q2, we maintained our strong momentum by capitalizing on our biggest growth opportunities in artificial intelligence services, and AI enabled digital customer experience. Our Q2 performance underscores the resilience of our business in the AI era and reinforces our conviction in the strength of our client partnerships, and the quality of Tascus' team and solutions. We remain laser focused on our long term goal to increase revenue, EBITDA, and earnings per share over a multiyear horizon at rates that are among the best in the industry. Next, I will provide some highlights from Q2 along with an update on our 2026 outlook. Then I will hand it over to Rishabh to walk through our financials in more detail. Again, Q2 revenue was $309 million. An increase of 5% on a year over year basis. As expected, revenue from our largest client declined by approximately 22% compared to Q2 of 2025. This decline was more than offset by growth from other clients resulting in revenue concentration from our top client of 20% in Q2 compared to 26% in Q2 of 2025. As we shared in Q1, revenue in the second half of 2026 will reflect additional headwinds from our largest client's automation, and cost optimization efforts. However, our relationship with our largest client remains strong. Thanks to our high quality delivery and proven agility in adapting to their evolving strategic priorities, TaskUs is positioned to benefit as this client consolidates vendors over the medium term. I am very proud to report that outside our largest client, performance across the rest of our business was once again very strong. If we exclude our largest client, revenue in the rest of our business grew approximately 15% year over year in the quarter. The primary engine behind this was our second through twentieth largest client cohort, which grew approximately 30% on a year over year basis in Q2. Notably, these growth rates that exclude the impact of our largest client, all accelerated when compared to Q1. Our sales and client service teams carried their momentum into the second quarter delivering another solid performance. Q2 was once again defined by the expansion of our established partnerships. With more than 50% of signings coming from existing clients. Following exceptionally strong onshore signings, in our AI service offering in the first quarter, Q2 returned to a more normalized mix with heavier offshore delivery. Next, let's look at our service line performance for the quarter in more detail. Digital customer experience delivered a $176 million in revenue. Representing year over year growth of 6.4%. DCX growth was primarily driven by clients in our mobility, logistics, and travel, technology, health care, retail and ecommerce, and entertainment and gaming verticals. We expect DCX growth in the mid to high single digits for 2026 with growth rates likely to accelerate in the back half. it is important that we pause and highlight this. In the face of countless market headlines predicting that BPO customer care would all be automated, our customer care business is growing at an accelerating rate. Our success is based on our 2 part approach. We are using AI to support the automation of simpler customer contacts, while leveraging our talented teammates for premium human led customer interactions. The accelerating growth of our DCX business in the AI era shows that our strategy is paying off. The future of customer care is combining AI technology with human talent to deliver better customer experiences. Finally, I will note that our investment in health care is also delivering results. During Q2, we are pleased to be named to Everest Group's health care customer experience management intelligent operations PEAK Matrix assessment for 2026. Turning to trust and safety. We generated $67.1 million in revenue. A decline of approximately 12.3% year over year. This was primarily driven by declining revenue from our clients and our social media vertical, partially offset by growth in our technology and financial service verticals. As we previously shared, as our largest social media clients invest in automating content moderation, we expect our trust and safety revenue to continue to decline year-over-year during the back half of 2026. We remain optimistic that these declines will stabilize in 2027 as we continue to support complex trust and safety workflows and benefit from vendor consolidation at our largest client. Moving on to AI services, this specialized service offering continues to be our fast growing service line revenue increasing 26% year over year to $66.1 million. Here, our strong growth was primarily attributable to our ongoing ramp of clients in our mobility, logistics, and travel vertical including clients in the autonomous vehicle, autonomous delivery, and robotics industries. This exceptional performance was partially offset by reductions in revenue in our social media vertical, driven by the end of certain AI automation projects at our largest client and other social media clients. From an AI services signings perspective, we saw strength in our technology and social media verticals during Q2. Given our results, we continue to believe our investments in our AI service offerings focused on the world's leading foundational models, hyperscalers, and autonomous vehicle autonomous delivery and robotics companies are paying dividends. We are confident these investments will enable us to deliver strong growth in the second half of 2026. In Q3, AI services growth rates will be partly impacted by the sunsetting of the AI automation projects at the social media clients I mentioned earlier. In Q4, we expect AI service growth rate will again accelerate to better than 30% year over year driven by our continued growth with autonomous vehicle and robotics clients. On that note, I would like to provide an update on our strategy for the AI driven future. As part of the first pillar of our AI strategy, we remain focused on building a highly differentiated solution set that strengthens our AI services offerings. Specifically within physical AI, autonomous vehicles, autonomous delivery, and robotics. The strategic investments we have made over the past several quarters have positioned us to continue winning market share as these emerging sectors reach inflection points. As part of our commitment to leading and emerging AI technologies, we recently established our first robotics and physical AI training lab in Noida, India. A great example of our work here is our partnership with a leading developer of home based autonomous robots. Here, our team collects, annotates, and validates physical, spatial data to train our clients' autonomous systems to complete daily tasks. This lab highlights our momentum in moving beyond pure digital AI into complex physical robots, positioning TaskUs at the center of our clients' most innovative initiatives. Outside of our labs, we are also leveraging our Taskforce platform to collect egocentric data in diverse real world settings, driving imitation learning for humanoid robotics. Here, we are making investments in our platform to optimize how we deploy and manage these specialized crowdsourced workflows for complex, physical AI tasks. Finally, we continue to aggressively recruit domain specific talent with deep expertise in autonomous vehicles, autonomous delivery, and robotics. By combining modern platform infrastructure and specialized human expertise, Taskis is solidifying its position as the critical operational partner industry leaders across these emerging high growth markets. From high fidelity data capture and mapping to mission critical remote assistance, and roadside emergency response, our specialized workflows are integral to our clients' real world deployments. Turning to the second pillar of our AI strategy, investments in our AI consulting practice, I wanna outline some improvements we have seen with Agentic solutions we have implemented for clients. These results are a direct reflection of our ability to leverage Taskus' intimate knowledge of our clients' products, processes, and workflows into higher performing autonomous agents and deliver seamless orchestration these technologies and the human intervention required for a more complex and nuanced resolutions. Building on the success of our initial deployment of an Agentic customer support solution for a streaming client, we have driven a meaningful increase in the overall contact containment rate. Our deep knowledge of the client's workflows has allowed our AI consulting team to quickly contain more than 70% of contacts in our recent performance. This progress was propelled by expanding our specialized technical troubleshooting capabilities into high volume workflows including account management, technical support, and customer trial abuse mitigation. As we scale these Agentic solutions, we have not compromised customer experience as evidenced by our 4.7 out of 5 CSAT score. Building on the success, we are now extending these proven conversational capabilities into our client's email channel with additional plans to expand into voice to drive further automation and unlock additional operational savings. At another key client in a highly regulated industry, we deployed an AI voice agent capable of executing end to end appointment scheduling rescheduling, and the initiation of new customer intake. By integrating partner technology with our operational expertise, we have continuously increased containment rates while positively impacting overall booking rates. Complex and sensitive interactions seamlessly escalate to task as teammates allowing human empathy to shine where it matters most. Since April, first attempt AI agent resolution rates have improved nearly 30% resulting in fewer human transfers. Our AI scheduling agents have also become more efficient with median AI agent talk time dropping by nearly 12% Finally, our agents delivered a reduction in appointment cancellations of over 5% in the past 3 months. Given our success in directly increasing our clients' revenues, we are exploring other work streams and agent capabilities, including adding outbound calling, which we anticipate to launch next quarter. Each of those successful Agentic deployments showcase our ability to move beyond pilots into production environments in which we are delivering a high value end to end combination of agentic solutions and talented humans that deepen client relationships. The third and final cornerstone of our strategy for the AI era is the automation of our internal processes to drive margin expansion and operational excellence. Beyond our previously discussed Agentic AI deployments and our talent acquisition and HR help desk functions, we are developing custom solutions to address targeted real world operational challenges. A critical focus area is putting AI directly into the hands of our frontline leaders, reducing their administrative burden, and empowering them to focus entirely on their roles as coaches and leaders of our teammates. A prime example of this is Maestro. Our proprietary AI powered platform for team leads. Maestro acts as an intelligent operational assistant seamlessly blending automation, predictive AI, and deep integrations with our delivery ecosystem. Maestro allows our team leads to explore their team's performance data using natural language. It automates routine administrative reporting and surfaces real time performance insights including schedule adherence, average call time, QA, CSAT analyses, and personalized coaching recommendations. This empowers our team leads to focus on high impact coaching elevating delivery quality. This will also allow us to improve spans of control over time. By transforming how our frontline operates, Maestro serves as a powerful industry differentiator. Positioning us to aggressively take market share from the competition. Before handing it over to Rishabh, to provide more details on our Q2 results, I wanna touch on our 2026 outlook. In light of our strong results, sales momentum, and continued strength of both our digital customer experience and AI service offerings, we are raising our full year revenue outlook to between $1.22 billion to $1.24 billion. This updated range accounts for the continued headwinds we expect to face at our largest client through the end of 2026. At the $1.23 billion midpoint of our revenue guidance, we expect full year adjusted EBITDA margins to be approximately 19%. We are also increasing our outlook for full year adjusted free cash flow by approximately 5% to between $110 million to $120 million. For the third quarter, we expect revenue to be between $300 million and $302 million or roughly 1% year over year revenue growth at the midpoint. Adjusted EBITDA margins are expected to be flat sequentially at approximately 18.7% in Q3. Looking ahead to 2027, we plan to continue increasing our level of investment in emerging growth and AI transformation initiatives, including AI services, and AI enabled DCX. These investments are likely to continue to impact margins. Our performance to date increases our conviction that these investments are the right strategic decision to position Tascus for the future. Overall, despite top client headwinds, and a choppy overall macro environment, we are pleased to have delivered performance that exceeded our expectations in Q1 and Q2. We remain confident in the trajectory of our business driven by resilient demand for our premium DCX offerings and strategic advancements in AI services. I look forward to updating you on our Q3 results on our next call. With that, I will hand it over to Rishabh to go through our financials in more detail. Rishabh Khemka: Thank you, Bryce, and good afternoon, everyone. Before I begin, I want to say how excited I am to join Taskus and to speak with all of you. I would like to thank Bryce, the board, and the entire TaskUs team for such a warm welcome. In my first few weeks, my conviction in this business its people, its client relationships, and its position in the AI era, has only grown. I look forward to meeting many of you in the coming months. Now turning to our second quarter results. In the second quarter, we earned total revenues of $309 million reflecting an increase of 5% compared to the previous year. This was $10.9 million ahead of the top end of our guidance, for the quarter driven by stronger than expected volumes in AI services and digital customer experience. Approximately 75% of our growth came from new clients. Our strong top line performance, despite headwinds from our largest client, demonstrated the resilience of our business, our consistent focus on strategy execution, and our ability to capture market share. Regardless of the macroeconomic environment. As Bryce mentioned, we saw solid year over year growth in AI services which grew a remarkable 25.8% and DCX, which accelerated further in Q2 to 6.4%. Compared to the prior year. As contemplated by our Q2 guidance, trust and safety declined 12.3% on a year over year basis. In the second quarter, our largest client represented 20% of total revenue, Down from 26% in Q2. 2025. Our top 10 client concentration was 64%, up from 58% in Q2 of last year, and our top 20 clients accounted for 75% of our revenue up from 71% in the prior year period. Excluding our largest client, Revenue from the rest of our business grew approximately 15% on a year over year basis in Q2. Compared to approximately 13% growth in Q1 of 2026. A slight acceleration in growth on a sequential basis. Here, growth in clients from the rest of our portfolio more than offset revenue decline in our largest account. These strong results from clients other than our largest client primarily driven by new and existing client growth across a broad range of verticals during the quarter. Showcasing the underlying momentum of our core business. Looking at our geographic delivery mix, in the second quarter, we generated 51% of our revenues in the Philippines, 15% in the United States, 12% in India, 22% from the rest of the world primarily in Latin America and Europe. In Q2, we saw particularly strong year over year revenue performance in the United States, Egypt, and Mexico. We ended the quarter with approximately 63.2 thousand global teammates, a decrease of approximately 1.2 thousand teammates, From the end of Q1. This was primarily the result of changes in the scope of work we perform in the Philippines for our largest client. Next, I would like to provide additional details about our service line performance. In the second quarter, our DCX offering generated $175.7 million in revenue and year over year growth of 6.4%. This growth was well balanced between new and existing clients, with nearly 50% being attributable to clients we ramped up within the last year. Overall, DCX growth was primarily driven by strong performance from existing clients in our mobility, logistics, travel vertical and new technology vertical clients. This growth was partially offset by a decrease in revenue from existing clients in our financial services vertical. In terms of DCX signings in Q2, we again demonstrated remarkable resilience that positions us well for continued strong growth in DCX, during the back half of 2026. We saw broad based strength in signings across most of our vertical markets, including technology, health care, mobility, logistics and travel, retail and ecommerce, and financial services. In particular, we were pleased that more than 40% of our DCX signings in Q2 were comprised of high value add sales and lead generation solutions. Our trust and safety offering, which includes our content moderation and financial crime and compliance services, declined by 12.3% compared to Q2 of 2025, resulting in $67.1 million of revenue. Here, drop in revenue from our largest client more than offset the remaining growth from other existing and new clients which was otherwise well balanced. From a vertical perspective, the existing client decline in trust and safety was primarily driven by social media and retail and ecommerce, partially offset by an increase in technology vertical clients. New client growth was strongest in our professional services and financial services verticals. AI services demonstrated strong growth in excess of 25% for the seventh quarter in a row. Resulting in $66.1 million in revenue. This was primarily as a result of expansion in services we provide to new and existing clients in our mobility, logistics, travel vertical, partially offset by a decrease from existing clients in our social media vertical. Overall, existing clients contributed approximately 2 thirds of AI services total growth for the quarter. Led by 1 of our long term autonomous vehicle clients. From a signings perspective in Q2, we saw demand signals from a diversified set of AI services clients primarily within our technology, social media, retail and ecommerce, and mobility, logistics, and travel verticals. Now moving on to the drivers of our income statement performance. In the second quarter of 2026, we earned adjusted EBITDA of $57.7 million an 18.7% margin, which compared favorably to the $53.5 million of adjusted EBITDA implied by the midpoint of our Q2 guidance. As a reminder, we anticipated a year over year and sequential margin decline to 18% for the quarter based on several factors. Including geographic delivery mix shift to lower margin US based delivery, and our strategic investments in emerging growth opportunities and AI capabilities. However, we were largely able to minimize these impacts through revenue outperformance and disciplined cost controls across our operations and overhead functions. Our cost of service as a percentage of revenue was 65.3% in the second quarter, compared to 61.4% in Q2 of the prior year. The increase was primarily driven by several factors, including the impact of annual personnel cost inflation, delivery mix shift, and a pricing environment that remains competitive. These factors were partially offset by the run rate benefit of operating efficiency improvements made during the second half of 2025 carrying over into 2026. And additional cost optimization initiatives we initiated during the quarter. In the second quarter, our SG&A expenses were $54.6 million or 17.7% of revenue. This compares to SG&A in Q2 of 2025 of $68.4 million or 23.3% of revenue. This decline as a percentage of revenue reflected lower transaction costs in Q2 of 2026 on a year over year basis. Our continuous efforts to optimize overhead costs and a reduction in stock based compensation expense. These improvements in overhead expenses were partially offset by the AI and growth investments mentioned earlier. Adjusted net income for the quarter was $30.6 million and adjusted earnings per share was $0.33. By comparison, in the year ago period, we earned adjusted net income of $39.7 million and adjusted EPS of $0.43. The year over year decline in adjusted net income was mainly due to higher interest expense from our refinancing and the impact of foreign exchange rates compared to the prior year. Our weighted average share count was relatively consistent and therefore not a material driver of our adjusted EPS performance. Now moving on to the balance sheet. Cash and cash equivalents were $180 million as of June 30, 2026, compared with the December 31, 2025, balance of $212 million. Here, we were pleased that our strong year to date free cash flows of nearly $69 million significantly offset declines related to our onetime special dividend and refinancing activities of approximately $84 million and the negative translation adjustment related to fluctuations in foreign exchange rates. Our net leverage ratio continued to be healthy at less than 1.3x at the end of Q2. As a reminder, we calculate this ratio as total debt less cash divided by adjusted EBITDA for the trailing 12 month period. Our refinanced $500 million term loan maturing in March 2031 bears interest of SOFR plus 2.75%, and our new $100 million revolver remains undrawn. Cash generated from operations on a year to date basis was $89.4 million through Q2 of 2026, as compared to $53.3 million through Q2 of 2025. This increase of nearly 70% was primarily due to the positive impact of changes in working capital stemming from stronger cash collections, and the timing of payments related to prepaid assets. Year to date adjusted free cash flow was $78.7 million or 67.7% of adjusted EBITDA. These results bolstered our confidence in increasing our full year 2026 adjusted free cash flow guidance. Our Q2 year to date capital expenditures decreased to $20.7 million compared to $31.5 million through Q2 of 2025. Primarily due to lower facility build out and technology refresh expenditures. As a result, we expect CapEx to be approximately $47 million for the year, a reduction of $13 million compared to our initial 2026 outlook. In terms of our financial outlook for the remainder of the year, we are increasing our full year 2026 revenue range of $1.22 billion to $1.24 billion resulting in a midpoint of $1.23 billion. We also expect to earn full year 2026 adjusted EBITDA margins of approximately 19% at the midpoint of our revenue guidance. As mentioned earlier, we are increasing our full year adjusted free cash flow outlook to $115 million at the midpoint, with a range of $110 million to $120 million. As a reminder, adjusted free cash flow excludes the impact of certain costs, that are nonrecurring and outside the ordinary course of business. For the third quarter, we expect revenues to be in the range of $300 million to $302 million reflecting growth of 0.8% at the midpoint. We expect our adjusted EBITDA margins to be approximately 18.7% which includes the impact of wage increases geographic mix shift, pricing renegotiations, and continued investments to support our revenue growth and AI transformation initiatives. Offset by the operational and overhead efficiency initiatives we discussed earlier in the call. As a reminder, our margin guidance is based on current foreign exchange rates. Deterioration in the value of the US dollar, would put downward pressure on our margin performance. In closing, another solid quarter has positioned us to lift our full year top line and cash flow guidance. While we expect continued headwinds at our top client, the core engine of our business is performing exceptionally well. Pipeline and signings are building nicely. Particularly in AI services. And our premium DCX practice. Continues to win share from the competition. None of this happens without our global team, whose commitment to excellence drives our success every day. Now I will hand it back to Bryce to close us out. Bryce Maddock: Thank you, Rishabh. Before we open for questions, I would like to share 1 of our TaskUs teammates stories. At Taskus, we often talk about people and performance in the same sentence. And our commitment to frontline stability is a prime example of why that connection matters. Meet Raylan, a teammate who has been with TaskUs Philippines for nearly 6 years. Like many working parents, Raylan, has faced significant financial and emotional stress trying to cover tuition and school fees for her 2 elementary aged children. That changed when she became a recipient of our NextGen scholarship program. The grant allowed Rialin to enroll her children in a premier private school in La Union, fundamentally transforming their educational opportunities and removing a major source of financial strain for her family. In her own words, having the support did not just change my children's future. It gave me the peace of mind to focus, grow, and build a long term career here. As a parent myself, I know firsthand how much peace of mind matters when it comes to your children's education and well-being. Nothing makes me prouder than knowing that the programs we build at Taskus create real generational impact for our frontline teammates. But this sense of purpose also drives real operational value. When we invest in our communities through programs like the NextGen scholarship, we are not just supporting families. We are investing in our best talent. Talent that delivers the operational excellence Taskus is known for. Eliminating major personal stressors for long tenured teammates like Raylan, directly reduces burnout, drives industry leading retention, and protects the high quality execution our clients rely on every day. With that, I will ask the operator to open our line for our question-and-answer session. Operator? Operator: Thank you. At this time, we will conduct the question-and-answer session. As a reminder to ask a question, you need to press 11 on your telephone and wait for your name to be announced. To withdraw your question, press *11, please stand by while we compile the queue. Our question comes from Jonathan Lee from Guggenheim Partners. Go ahead, Jonathan. Jonathan Lee: Trent. Thanks for taking my questions. And Rishabh, congrats on the new role. I want to start by asking about AI services. The growth moderated from 36% in Q1 to 26% in Q2, ending what looks like a run of 6 consecutive quarters north of 30% How much of that deceleration reflects tougher comps and base effects versus some large customer dynamics? And what is the right growth range to underwrite in the back half and in 2027 is the base scale? What gives you confidence in that trajectory? Bryce Maddock: Thanks, Jonathan. Yeah, AI services has been our fastest growing service line now for 7 quarters in a row, and this quarter, it grew by 26%. As we shared on the call, we anticipate AI service growth in the third quarter will be similar to that rate before accelerating again to over 30% year over year in Q4 as we as we exit the year. I think when we look at AI services, it is important to double click, on the contract type In general, we are signing master service agreements. With long terms and are delivering this work either by unit or by hour But yeah, in the case of AI services, the dynamic nature of our client's technology development and AI safety needs necessitates that we move from 1 project to the next with greater frequency than you would see in a standard recurring customer service contract. So it is particularly true for AI training and AI safety work. Where we are supporting foundational model developers and robotics companies and social media firms to see this kind of, project scale up and scale down. So, in the call, we noted that in addition to the slowdown in revenue at our largest client, we experienced Q2 revenue declines at another social media client, and it is a good example of that sort of project based dynamic, which has made the year over year compares a little more challenging for Q2 and Q3. But as I said, we have got confidence given the growth we are seeing across the broader base of our AI services business that growth rate is gonna accelerate back above 30% for the end of the year. And I would also note that we are seeing a far greater level of stability in the autonomous vehicle and autonomous delivery work we are doing inside AI services. Here, the contracts tend to look a lot more like those recurring DCX contracts that we are used to, and the sustained growth of that business is gonna lead to enduring growth rates for AI services into 2027 and beyond. Jonathan Lee: Thanks, Bryce. And just as a follow-up on the outlook. Your implied Q4 range spans roughly, call it, -3% to +3.5% year on year. What gets you toward the high end versus the low end within that range? Is upside primarily existing customer ramp conversion or does it require pipeline conversion? what is baked in for the top customer trajectory at the midpoint versus low end? Bryce Maddock: Yeah. So we are raising the bottom end of the guidance range by $10 million today, and I think this just speaks to the confidence that we have developed over the course of the first half of the year. We are also providing guidance for Q3 of $300 million to $302 million in revenue. And I will just note that quarterly guide guidance is actually higher than the guidance we provided for both Q1 and Q2. As always, our goal is to meet or exceed the guidance that we provide. So we continue to be cautious in the guidance we are providing primarily because of the reductions that we are seeing at our largest client. As we noted on today's call, our revenue in Q2 grew by approximately 15% when we exclude the impact of our largest client. We anticipate the business will continue to grow like this in the back half of 2026. But our guidance also contemplates larger reductions at our largest client in the second half. So the path to meeting or exceeding our annual guidance is gonna come from our ability to deliver on the growth opportunities across the rest of our client base, and we feel confident that we will be able to do that. Jonathan Lee: Appreciate that color. Operator: Please stand by for our next question. Our next question comes from Maggie Nolan from William Blair. Please go ahead, Maggie. Maggie Nolan: On that largest client, at what point do you expect the vendor consolidation to outweigh some of these automation driven volume reductions And do you anticipate that even the revenue streams you would receive through vendor consolidation could be subject to automation as well? Bryce Maddock: Yeah. Thanks for the question, Maggie. So I will start by saying that we are encouraged by the strength of the relationship that we have got at our largest client. Think they are very pleased with our agility and ability to deliver on the strategic objectives that they outlined for 2026. We know that we are going to be part of a very small subset of vendors that will benefit from vendor consolidation, and we anticipate that will begin to happen in 2027. The rest of this year, we will continue to see downward pressure driven by their automation and cost optimization initiatives, and we could see some of that continue into 2027. But over the medium term, we expect to see revenues of this client stabilize and perhaps even get back to growth depending on some of the dynamics in their business. And our ability to continue to support growth initiatives at the business in areas like AI. Maggie Nolan: that is helpful. Thank you. And then, you know, obviously, the AI services growth is impressive in your outlook there. Continues to be robust. it is changing sort of the mix of the work that you perform. Is there evidence in your pipeline that you are seeing today that it is more than changing the mix that AI is actually expanding your addressable market. The future? Bryce Maddock: Yeah. I think unquestionably. The AI service market is pretty much all net new business. Not only for us, but for the industry in general. And so, you know, we are seeing this, kind of 3-part story play out where AI services is creating just massive growth opportunities. And, frankly, our ability to drive 26% growth this quarter, and, you know, hopefully closer to 30% plus growth for the full year in AI services is good. I think we can do even better when we look at the broader market where we have seen companies be created that are generating hundreds of millions, if not billions of dollars in revenue from AI services. This story is obviously the opposite in trust and safety where the impact of automation has truly been the most significant. There, we think that we will continue to see downward pressure on trust and safety revenues this year. But we do think that there is enduring demand both for more complex content moderation, which we do not believe is gonna be automated, and for growth that will be driven by things like financial crimes and compliance work where we saw growth this quarter. And then I think the real surprise given the headlines over the last few years is we are seeing growth rates that are actually accelerating in our digital customer experience business. And there, I think we put ourselves on the right side of the AI driven automation of simple workflows. And have proven ourselves to be a premium support provider who can grow in some of these areas like sales and premium customer experience where we see clients actually investing more as they automate simple volumes. Thanks, Bryce. Operator: 1 moment for our next question. Our next question comes from Puneet Jain from JPMorgan. Please go ahead, Puneet. Puneet Jain: Thanks for taking my question. We have, like, always viewed new unicorns of the tech trends as long term fuel for TaskUs's growth. And it seems like we are in that upcycle once again as AI based unicorns, new companies, are generating a lot of energy in Silicon Valley. Is there a way to size the opportunities you are seeing from these clients you talked about AI model companies, robotics clients. So the opportunities you are seeing in AI services or customer service, And how does that compare with some of the past cycles, like social media or crypto? Whatever. If you can talk about that. Bryce Maddock: Yeah. Thanks for the question, Puneet. I think in general, we are at the start of the cycle, there was a lot of fear that these companies were gonna be materially different than the companies that we really built our business on in the February. And if you think about the businesses in on-demand transportation, food delivery, direct to consumer e-commerce. These were businesses that had quite labor intensive processes. And as a result of that, I think there was a fear that when we compare that to, say, some of these AI labs, that they would not be quite as labor intensive, I mean, just by the nature that they are using AI to automate lots of the workflows. And, certainly, the headlines would indicate that. We hear about 1-man startups, generating millions of dollars in revenue, etcetera. But I think the story in reality, is far more nuanced. We have been able to grow both AI services and customer experience business, with some of the foundational model developers into contracts that are worth tens of millions of dollars a year. We have seen demand from robotics, autonomous vehicles, autonomous delivery companies, that are as big or larger than that number. And so I think the opportunity set is as large as it is ever been. It is definitely different in that, you know, it is requiring us to develop new services and capabilities in this AI service practice. Certainly different than the core customer service expertise we built the business on. But the opportunity is definitely there. Puneet Jain: Got it. And at your top client, will it be fair to say much of the revenue you will generate from that client? Will be based on AI enabled services when they are done with their automation initiative. Bryce Maddock: Yeah. I think so. I mean, we certainly the top client is investing heavily in using AI to automate and enable these services to be provided more efficiently. We are also as we do with all of our customers, deploying our own toolset to make our teammates more effective at their jobs. And so I think as they move through these automation initiatives, the work that will remain will be far more complex and undergirded by both of our investments in AI driven automation. Puneet Jain: Okay. Thank you. Operator: 1 moment for our next question. Our next question comes from Jacob Hagerty from Baird. Jacob Haggarty: Hey guys, great job. I just wanted to touch on the shift to The US delivery that called out. How sticky is this shift with these new AI services? And is this something where it might be a few years in The US, and then over time, we will see this shift off again. Bryce Maddock: I think at this point, we have been surprised by how much demand there is for US delivery. But AI services is definitely the biggest driver of that revenue growth. And we expect that US delivery revenue will continue to grow as we scale those AI service engagements for the rest of this year. Over the medium term, we do believe that a portion of this work will migrate to higher margin offshore delivery locations. So while onshore delivery does come at lower margins, we are pleased by the fact that we are continuing to grow this AI service business so significantly. And, obviously, being responsive to wherever our clients want that work to be delivered from. Jacob Haggarty: Yeah. That makes sense. And then just following up on that with the revenues, are they like, is there a point where they are going to grow enough in the offshore regions to help offset some of the margin pressure from The US delivery. Bryce Maddock: Yeah, I-- certainly, that is our hope. Right now, the bulk of the offshore delivery is a blend of AI service growth and DCX growth. And, certainly, like, at this point, we think we have got room to sell significantly into offshore locations like The Philippines and India. And so we are hyper focused on an ability to do that just given those locations deliver higher margins. Operator: At this time, I am showing no further questions. This does conclude our conference for today. You may now disconnect. Before you buy stock in TaskUs, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and TaskUs wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends TaskUs. The Motley Fool has a disclosure policy. TaskUs (TASK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

TaskUs (TASK) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +13.79%. A quarter ago, it was expected that this provider of outsourced digital services would post earnings of $0.36 per share when it actually produced earnings of $0.35, delivering a surprise of -2.78%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. TaskUs, which belongs to the Zacks Computers - IT Services industry, posted revenues of $308.86 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.81%. This compares to year-ago revenues of $294.09 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TaskUs shares have lost about 44.5% since the beginning of the year versus the S&P 500's gain of 13%. While TaskUs has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TaskUs was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.33 on $307.98 million in revenues for the coming quarter and $1.32 on $1.24 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, AIB Data Centers Inc. (AIB), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +99.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. AIB Data Centers Inc.'s revenues are expected to be $3.56 million, up 4985.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TaskUs, Inc. (TASK) : Free Stock Analysis Report AIB Data Centers Inc. (AIB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue outperformance was driven by strong volumes in AI services and digital customer experience (DCX), which more than offset a 22% decline from the company's largest client. The DCX business is growing at an accelerating rate by utilizing a two-part strategy: automating simple contacts with AI while leveraging human talent for premium, complex interactions. AI services growth of 26% was primarily fueled by expansion in the autonomous vehicle, robotics, and autonomous delivery sectors, despite some project-based volatility in social media. Management attributes the 15% growth in the non-top-client business to successful market share gains and the expansion of established partnerships, with over 50% of signings coming from existing clients. Operational efficiency is being driven by internal AI tools like 'Maestro,' which automates administrative tasks for team leads to improve coaching quality and spans of control. A shift toward onshore US delivery for specialized AI work impacted margins, though management views this as a necessary response to client demand for high-fidelity data training. Full-year revenue guidance was raised to $1.22 billion to $1.24 billion, accounting for continued automation-driven headwinds at the largest client through year-end. AI services growth is expected to accelerate to better than 30% in Q4 2026, driven by recurring revenue models in the physical AI and robotics verticals. Management anticipates that trust and safety revenue declines will stabilize in 2027 as the company benefits from vendor consolidation at its largest social media client. Future margin performance will be influenced by ongoing investments in AI transformation initiatives and potential downward pressure from US dollar fluctuations. The company plans to expand its 'Agentic' AI solutions into email and voice channels to drive further operational savings and containment for clients. Revenue concentration from the largest client decreased to 20% from 26% year-over-year, reflecting a strategic diversification of the client base. The company established its first robotics and physical AI training lab in India to support complex spatial data annotation for autonomous systems. A reduction in global headcount by approximately 1,200 teammates was primarily due to changes in the scope of work for the largest client in the Philippines. Free cash flow guidance was increased by 5% due to stronger-than-expected working capital management and disciplined capital expenditures. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that the Q2 deceleration to 26% was due to the project-based nature of AI safety work and sunsetting projects at a social media client. Confidence in returning to 30%+ growth in Q4 is based on the stability of autonomous vehicle contracts, which behave more like recurring revenue. TaskUs expects to be among a small subset of vendors benefiting from consolidation starting in 2027, which should help stabilize that account. While automation will continue to pressure volumes, the remaining work is expected to be higher-complexity and more resilient. Management noted that AI labs and robotics startups are proving to be labor-intensive partners, contrary to 'one-man startup' headlines. These new sectors are creating opportunities for contracts worth tens of millions of dollars, effectively expanding the total addressable market beyond legacy BPO. The current shift toward US delivery is driven by specific client requirements for AI services, which carries lower margins than offshore work. Management expects a portion of this work to eventually migrate to higher-margin offshore locations like the Philippines and India over the medium term.

Interested in TaskUs, Inc.? Here are five stocks we like better. TaskUs exceeded Q2 expectations, reporting revenue of $308.9 million, up 5% year over year, and an adjusted EBITDA margin of 18.7%. Adjusted free cash flow was $36.4 million, while net leverage fell below 1.3 times. Growth in AI Services and Digital Customer Experience offset a 22% revenue decline from the largest client. AI Services revenue rose 26% to $66.1 million, while Trust & Safety revenue fell 12.3% amid customer automation efforts. The company raised its 2026 outlook to $1.22 billion–$1.24 billion in revenue and $110 million–$120 million in adjusted free cash flow, although it expects continued largest-client pressure and margin headwinds from wages, pricing, delivery mix and AI investments. 3 Characteristics To Watch When Evaluating Growth Stocks TaskUs (NASDAQ:TASK) reported second-quarter 2026 revenue of $308.9 million, up 5% from a year earlier and $10.9 million above the high end of its prior guidance, as growth in AI Services and Digital Customer Experience offset declines from its largest client. Adjusted EBITDA totaled $57.7 million, representing an 18.7% margin and exceeding the company’s margin guidance by 70 basis points. Adjusted free cash flow was $36.4 million for the quarter, while cash and cash equivalents stood at $180.3 million as of June 30. The company said its net leverage ratio fell below 1.3 times. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Chief Executive Officer Bryce Maddock said the company’s results reflected continued momentum in AI Services and AI-enabled customer experience offerings. TaskUs also introduced Rishabh Khemka, its new chief financial officer, who joined the company less than two months before the call. Revenue from TaskUs’ largest client declined approximately 22% year over year during the second quarter, reducing that customer’s share of total revenue to 20%, from 26% in the year-ago period. The company expects additional headwinds from that client’s automation and cost-optimization efforts during the second half of 2026. → 3 Drone Stocks That Should Soar After the Summer Slump However, revenue excluding the largest client increased about 15% from a year earlier, accelerating from approximately 13% growth in the first quarter. The company’s second- through 20th-largest clients grew about 30% year over year. Maddock said TaskUs expects to benefit from vendor consolidation at its largest client over the medium term, though the company expects continued pressure through the remainder of 2026 and potentially into 2027. He said the company anticipates being among a smaller group of vendors retained as consolidation occurs. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth About 75% of the company’s year-over-year revenue growth came from new clients, Khemka said. More than half of second-quarter signings came from existing clients. Digital Customer Experience, or DCX, generated $175.7 million in second-quarter revenue, up 6.4% year over year. Growth was driven by mobility, logistics and travel, technology, healthcare, retail and e-commerce, and entertainment and gaming clients. TaskUs expects DCX revenue growth in the mid- to high-single digits for 2026, with growth likely to accelerate in the second half. AI Services revenue increased 26% to $66.1 million, marking the company’s seventh consecutive quarter of growth above 25%. The expansion was led by mobility, logistics and travel customers, including autonomous vehicle, autonomous delivery and robotics companies. Growth was partly offset by the conclusion of certain AI automation projects at the company’s largest client and other social media customers. Maddock said AI Services growth is expected to remain near the second-quarter rate in the third quarter before accelerating to more than 30% year over year in the fourth quarter, driven by autonomous vehicle and robotics engagements. He said AI Services contracts can be more project-based than recurring customer-service arrangements, particularly in AI training and safety work. Trust & Safety revenue declined 12.3% to $67.1 million, primarily due to lower revenue from social media clients. TaskUs expects the service line to continue declining year over year in the second half as social media customers automate content moderation work, though it expects declines to stabilize in 2027. TaskUs said it opened its first robotics and physical AI training lab in Noida, India. The facility supports data collection, annotation and validation for autonomous systems, including home-based robots. The company is also using its TaskVerse platform to collect real-world egocentric data for humanoid robotics imitation-learning workflows. The company cited progress in deploying agentic AI solutions for clients. For a streaming client, TaskUs said its customer-support solution recently contained more than 70% of contacts while maintaining a 4.7 out of five customer-satisfaction score. The company plans to expand the solution from conversational support into email and eventually voice. At another client in a regulated industry, TaskUs deployed an AI voice agent for appointment scheduling and customer intake. Since April, first-attempt AI agent resolution rates improved nearly 30%, median agent talk time declined nearly 12%, and appointment cancellations fell more than 60% over the past three months, according to the company. TaskUs is also deploying internal AI tools, including its Maestro platform for frontline team leaders. Maddock said the platform automates reporting, provides performance insights and coaching recommendations, and could improve management spans of control over time. TaskUs raised its full-year 2026 revenue outlook to a range of $1.22 billion to $1.24 billion. At the $1.23 billion midpoint, the company expects an adjusted EBITDA margin of approximately 19%. The company also increased its full-year adjusted free-cash-flow outlook by roughly 5% to a range of $110 million to $120 million. It expects capital expenditures of approximately $47 million for the year, down $13 million from its initial outlook. Third-quarter revenue is projected at $300 million to $302 million, implying roughly 0.8% year-over-year growth at the midpoint. Third-quarter adjusted EBITDA margin is expected to be approximately 18.7%. TaskUs expects wage increases, delivery mix shifts, pricing renegotiations and AI investments to pressure margins, partly offset by operational and overhead efficiencies. For the second quarter, adjusted net income was $30.6 million, or $0.33 per share, compared with $39.7 million, or $0.43 per share, a year earlier. Khemka attributed the decline primarily to higher interest expense following refinancing activity and foreign-exchange effects. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "TaskUs Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

NEW BRAUNFELS, Texas, August 05, 2026--(BUSINESS WIRE)--TaskUs, Inc. (Nasdaq: TASK), a leading provider of outsourced digital services and next-generation customer experience to the world’s most innovative companies, today announced its results for the second quarter ended June 30, 2026. Service revenue of $308.9 million, 5.0% year-over-year growth. Net income of $22.0 million, net income margin of 7.1%. Adjusted Net Income of $30.6 million, Adjusted Net Income margin of 9.9%. Diluted EPS of $0.24, Adjusted EPS of $0.33. Adjusted EBITDA of $57.7 million, Adjusted EBITDA margin of 18.7%. Net cash provided by operating activities of $43.1 million, Free Cash Flow of $32.6 million and 56.5% conversion of Adjusted EBITDA to Free Cash Flow. Adjusted Free Cash Flow of $36.4 million and 63.2% conversion of Adjusted EBITDA to Adjusted Free Cash Flow. "We delivered another solid quarter in Q2, outperforming the top end of our guidance for both revenue and Adjusted EBITDA. As a result, we are raising the midpoint of our full-year revenue guidance," said Co-Founder and CEO, Bryce Maddock. "Our momentum was anchored by approximately 26% growth in AI Services and continued diversification of our client base through strong mid-teens growth from clients other than our largest client. Our focus continues to be combining cutting-edge AI capabilities with specialized human talent to solve our clients' most complex operational challenges." Second Quarter 2026 Financial and Frontline Highlights At 25.8% year-over-year growth, AI Services remained TaskUs’ fastest growing service line for the sixth quarter in a row. Digital Customer Experience growth accelerated to 6.4% compared to Q2 2025. Recognized as a Major Contender in Everest Group’s Healthcare Customer Experience Management (CXM) Intelligent Operations PEAK Matrix® Assessment 2026—a company first. Since Q1, increased liquidity to $180.3 million in cash and $100.0 million of borrowing capacity under our revolving credit facility. Approximately 63,200 teammates at the end of the second quarter of 2026. "In the second quarter of 2026, we generated revenue of $308.9 million, exceeding the top end of our revenue guidance by $10.9 million. Our results demonstrate the disciplined financial and operational execution underpinning our specialized service offerings as we scale," said Chief Financial Officer, Rishabh Khemka. "Cash flow generation was once again a highlight in Q2, enabling us to increase our cash flow guidance for the second quarter in a row. For the full-year, we now expect Adjusted Free Cash Flow of $110 to $120 million, representing 9.3% of revenue at the midpoint. We are also increasing the bottom end of our revenue guidance by $10 million, resulting in full-year expectations of $1.22 billion to $1.24 billion in revenue and an Adjusted EBITDA margin of approximately 19%. TaskUs remains laser-focused on outpacing industry growth rates and driving long-term profitability. By pairing financial discipline with emerging growth initiatives and our ongoing AI-enabled transformation, we are well-positioned to strengthen our market leadership." Third Quarter and Full Year 2026 Outlook For the third quarter and full year 2026, TaskUs expects its financial results to include: Conference Call Information TaskUs senior management will host a conference call today to discuss the Company’s second quarter 2026 financial results and financial outlook. This call is scheduled to begin at 5:00 pm ET. Analysts and investors who wish to participate in the call can register by visiting the following link: https://register-conf.media-server.com/register/BIe8e22a79074142f9842cdfc2a8f1913e To listen to a live audio webcast, please visit TaskUs’ Investor Relations website at IR.Taskus.com. The Company will also make a slide presentation and other materials available on its website. A replay of the audio webcast will be available on the Company’s Investor Relations website for 12 months following the call. About TaskUs TaskUs (Nasdaq: TASK) delivers outsourced digital services that power the companies shaping the future. By combining specialized human talent and intelligent technology, we solve complex operational challenges for global category leaders within AI, autonomous vehicles (AV), robotics, social media, financial services, healthcare, and beyond. We enable our clients to elevate their customer experience, protect their platforms, and grow their brands. For more information, visit www.taskus.com. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, and further include, without limitation, statements reflecting our current views with respect to, among other things, our operations, our financial performance, our industry, the impact of the macroeconomic environment on our business, and other non-historical statements including the statements in the "Third Quarter and Full Year 2026 Outlook" section of this press release. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "would," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates," "position us" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limited to: the dependence of our business on key clients; the risk of loss of business or non-payment from clients; our failure to cost-effectively acquire new clients; the risk that we may provide inadequate service or cause disruptions in our clients’ businesses or fail to comply with the quality standards required by our clients under our agreements; our inability to anticipate clients’ needs by adapting to market and technology trends; increased adoption and utilization of artificial intelligence ("AI"), including Generative AI and Agentic AI, by our clients or us, or our failure to appropriately incorporate AI into our operations; unauthorized or improper disclosure of personal or other sensitive information, or security breaches and incidents, whether inadvertent or purposeful, including as the result of a cyber-attack; negative publicity or liability or difficulty recruiting and retaining employees; our failure to detect and deter criminal or fraudulent activities or other misconduct by our employees or third parties; global economic and political conditions, especially in the social media and meal delivery and transport industries from which we generate significant revenue; our indebtedness and debt service obligations following the March 2026 refinancing; the dependence of our business on our international operations, particularly in the Philippines and India; our failure to comply with applicable data privacy and security laws and regulations; fluctuations against the U.S. dollar in the local currencies in the countries in which we operate; our inability to maintain and enhance our brand; competitive pricing pressure; volatile, unfavorable or uncertain economic or political conditions, particularly in the markets in which our clients and operations are concentrated, and the effects of these conditions on our clients’ businesses; our dependence on senior management and key employees; increases in employee expenses and changes to labor laws; failure to attract, hire, train and retain a sufficient number of skilled employees to support operations; our inability to effectively expand our operations into countries or industries in which we have no prior operating experience and in which we may be subject to increased business, economic and regulatory risks; reliance on owned and third-party technology and computer systems; failure to maintain asset utilization levels, price appropriately and control costs; the control of affiliates of Blackstone Inc. and our Co-Founders over us; the dual class structure of our common stock; and the volatility of the market price of our Class A common stock. Additional risks and uncertainties include but are not limited to those described under "Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the "SEC") on March 5, 2026, as such factors may be updated from time to time in our filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company’s SEC filings. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. TaskUs undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. Non-GAAP Financial Measures TaskUs supplements results reported in accordance with United States generally accepted accounting principles ("GAAP"), with non-GAAP financial measures, such as Adjusted Net Income, Adjusted Net Income Margin, Adjusted Earnings Per Share, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Free Cash Flow, Conversion of Adjusted EBITDA to Free Cash Flow and Conversion of Adjusted EBITDA to Adjusted Free Cash Flow. Management believes these measures help illustrate underlying trends in TaskUs’ business and uses the measures to establish budgets and operational goals, communicate internally and externally, and manage TaskUs’ business and evaluate its performance. Management also believes that certain of these measures help investors compare TaskUs’ operating performance with its results in prior periods or assess liquidity. TaskUs anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results that exclude the impact of certain costs, losses and gains that are required to be included in our profit and loss measures under GAAP. Because TaskUs’ reported non-GAAP financial measures are not calculated in accordance with GAAP, these measures are not a substitute for the most directly comparable GAAP measure and may not be comparable to similarly titled measures used by other companies. Consequently, TaskUs’ non-GAAP financial measures should not be evaluated in isolation or supplant comparable GAAP measures, but rather, should be considered together with the information in TaskUs’ consolidated financial statements, which are prepared in accordance with GAAP. Definitions of non-GAAP financial measures and the reconciliations to the most directly comparable measures in accordance with GAAP are provided in subsequent sections of this press release narrative and supplemental schedules. Definitions of Non-GAAP Metrics EBITDA and Adjusted EBITDA and Adjusted EBITDA Margin EBITDA is a non-GAAP profitability measure that represents net income or loss for the period before the impact of the benefit from or provision for income taxes, financing expenses, depreciation, and amortization of intangible assets. EBITDA eliminates potential differences in performance caused by variations in capital structures (affecting financing expenses), tax positions (such as the availability of net operating losses against which to relieve taxable profits), the cost and age of tangible assets (affecting relative depreciation expense) and the extent to which intangible assets are identifiable (affecting relative amortization expense). Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before certain items that are considered to hinder comparison of the performance of our business on a period-over-period basis or with other businesses. During the periods presented, we excluded from Adjusted EBITDA transaction costs, operational efficiency costs, the effect of foreign currency gains and losses, gains and losses on disposals of assets, certain severance costs, stock-based compensation expense and associated employer payroll tax and interest income, which include costs that are required to be expensed in accordance with GAAP. Our management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future. Adjusted EBITDA Margin represents Adjusted EBITDA divided by service revenue. Adjusted Net Income and Margin Adjusted Net Income is a non-GAAP profitability measure that represents net income or loss for the period before the impact of amortization of intangible assets and certain items that are considered to hinder comparison of the performance of our businesses on a period-over-period basis or with other businesses. During the periods presented, we excluded from Adjusted Net Income amortization of intangible assets, transaction costs, operational efficiency costs, the effect of foreign currency gains and losses, gains and losses on disposals of assets, certain severance costs, stock-based compensation expense and associated employer payroll tax and the related effect on income taxes of certain pre-tax adjustments, which include costs that are required to be expensed in accordance with GAAP. Our management believes that the inclusion of supplementary adjustments to net income applied in presenting Adjusted Net Income are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future. Adjusted Net Income Margin represents Adjusted Net Income divided by service revenue. Adjusted EPS Adjusted EPS is a non-GAAP profitability measure that represents earnings available to shareholders excluding the impact of certain items that are considered to hinder comparison of the performance of our business on a period-over-period basis or with other businesses. Adjusted EPS is calculated as Adjusted Net Income divided by our diluted weighted-average number of shares outstanding. Our management believes that the inclusion of supplementary adjustments to earnings per share applied in presenting Adjusted EPS are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future. Free Cash Flow, Adjusted Free Cash Flow, Conversion of Adjusted EBITDA to Free Cash Flow and Conversion of Adjusted EBITDA to Adjusted Free Cash Flow Free Cash Flow is a non-GAAP liquidity measure that represents our ability to generate additional cash from our business operations. Free Cash Flow is calculated as net cash provided by operating activities in the period minus cash used for purchase of property and equipment in the period. Our management believes that the inclusion of this non-GAAP measure, when considered with our GAAP results, provides management and investors with an additional understanding of our ability to generate additional cash for ongoing business operations and other capital deployment. Adjusted Free Cash Flow is a non-GAAP liquidity measure that represents Free Cash Flow before the payments for transaction costs, operational efficiency costs, liability stock-based compensation awards and certain litigation costs that are considered non-recurring and outside of the ordinary course of business, which would hinder comparison of the performance of our business on a period-over-period basis or with other businesses. Our management believes that the inclusion of these supplementary adjustments to Free Cash Flow are appropriate to provide additional information to investors about these unusual items that we do not expect to continue at the same level in the future. Conversion of Adjusted EBITDA to Free Cash Flow represents Free Cash Flow divided by Adjusted EBITDA. Conversion of Adjusted EBITDA to Adjusted Free Cash Flow represents Adjusted Free Cash Flow divided by Adjusted EBITDA. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805409974/en/ Contacts Investor Contact Trent [email protected] Media Contact Ramya [email protected]

TaskUs’s stock price has taken a beating over the past six months, shedding 48% of its value and falling to $5.88 per share. This may have investors wondering how to approach the situation. Given the weaker price action, is now a good time to buy TASK? Find out in our full research report, it’s free. Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ:TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies. A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, TaskUs grew its sales at an incredible 18.1% compounded annual growth rate. Its growth beat the average business services company and shows its offerings resonate with customers. We like to invest in businesses with high returns, but the trend in a company’s ROIC can also be an early indicator of future business quality. Fortunately, TaskUs’s ROIC has increased significantly over the last few years. its rising ROIC is a good sign and could suggest its competitive advantage or profitable growth opportunities are expanding. Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). Although TaskUs has shown solid fundamentals lately, it historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 5.8%, somewhat low compared to the best business services companies that consistently pump out 25%+. TaskUs’s positive characteristics outweigh the negatives. After the recent drawdown, the stock trades at 4.3× forward P/E (or $5.88 per share). Is now a good time to initiate a position? See for yourself in our full research report, it’s free. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.