TaskUs (TASK) AI Stock Analysis

• Market Cap: $987.36M
• Dividend Yield: N/A
• Average Volume (3M): 225.97K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.13
• Revenue Growth: 19.88%
• EPS Growth: 51.03%
• Country: US
• Employees: 58,850
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.42
• Shares Outstanding: 35,384,926
• 10 Day Avg. Volume: 232,247
• 30 Day Avg. Volume: 225,968
• PEG Ratio: 5.36
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 15.09
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: 4.91
• 1Y Price Target: $15.90
• Price Target Upside: 45.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $11.50 ▲(5.31% Upside)

TaskUs demonstrates strong cash flow management and operational efficiency, contributing positively to its financial performance. The earnings call provided an optimistic outlook with record revenue and growth in AI services. However, technical indicators suggest a bearish trend, and the absence of a dividend yield limits valuation appeal. Addressing revenue decline and improving cost management remain critical for long-term success.

Positive Factors

Strong free cash flow generation

Sustained FCF growth and a healthy FCF-to-net-income ratio indicate the company converts earnings into cash efficiently. This durable cash generation supports reinvestment in AI services, funds working capital, and provides a buffer for capital allocation without relying heavily on external financing.

Conservative leverage and ample liquidity

Low net leverage and sizable cash reserves create long-term financial flexibility. This balance sheet strength lets the company fund strategic investments, weather demand volatility, and pursue opportunistic M&A or client ramp-ups without materially raising financial risk.

Rapid growth in AI services

Outpacing core lines, AI services align with structural demand as clients automate and scale content and moderation workflows. Durable secular tailwinds and a fast-growing service line position the company to capture expanding, higher-value work and improve long-term revenue mix and margins.

Negative Factors

Trailing revenue deterioration and gross margin weakness

A pronounced trailing revenue decline and negative gross margin signal structural demand loss or pricing/coverage gaps. Until multi-quarter revenue recovery and gross margin normalization occur, fixed-cost absorption and scalable profitability remain at risk, weakening long-term earnings stability.

Margin pressure from AI investment and labor costs

Structural investments in AI and rising labor costs in key delivery markets can compress margins over multiple quarters. While strategic, these cost trends require sustained efficiency gains or pricing power to restore margins, posing a durable profitability headwind absent offsetting revenue mix improvement.

Termination of take-private deal creates strategic uncertainty

A failed strategic transaction can reflect governance friction and distract management from long-term execution. It may delay material strategic shifts, discourage large external partners, and create uncertainty about future corporate plans, which can hamper sustained strategic momentum and investor confidence.

TaskUs Business Overview & Revenue Model

Company Description

TaskUs, Inc. provides digital outsourcing services for companies worldwide. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through digital channels; and other solutions, including customer care services for new product or market launches, trust and safety solutions, and customer acquisition solutions. The company also offers content security services, such as review and disposition of user and advertiser generated content, which include removal or labeling of policy violating, and offensive or misleading content; and artificial intelligence (AI) solutions that consist of data labeling, annotation, and transcription services for training and tuning AI algorithms through the process of machine learning. It serves clients in various industry segments within the digital economy, including e-commerce, FinTech, food delivery and ride sharing, gaming, HiTech, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.

How the Company Makes Money

TaskUs generates revenue primarily through its service contracts with clients, where it charges fees for the outsourcing of customer support and other back-office functions. The company's revenue model is based on a combination of hourly rates, per-transaction fees, and fixed-price contracts, depending on the nature of the services provided. Key revenue streams include ongoing contracts with well-known tech companies, which often require extensive customer support and moderation services. Additionally, TaskUs benefits from scalability, allowing it to serve multiple clients simultaneously, and from strategic partnerships with technology platforms that enhance its service offerings. The company also invests in training its workforce to ensure high-quality service delivery, which in turn helps to maintain long-term client relationships and recurring revenue.

TaskUs Financial Statement Overview

Summary

TaskUs faces challenges in revenue growth and gross profitability, but maintains operational efficiency and a stable balance sheet. The company demonstrates strong cash flow management, which is a positive indicator for future financial stability. However, addressing revenue decline and improving cost management are critical for long-term success.

Income Statement

TaskUs has faced a significant decline in revenue, with a TTM revenue growth rate of -75.10%, indicating a sharp downturn. The gross profit margin is negative, suggesting cost management issues. However, the company maintains a positive net profit margin of 0.30% and an EBIT margin of 32.58%, showing some operational efficiency despite revenue challenges.

Balance Sheet

The company's debt-to-equity ratio of 0.54 indicates moderate leverage, which is manageable. Return on equity is 15.30%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at 54.70%, suggesting a stable capital structure with a good proportion of assets financed by equity.

Cash Flow

TaskUs shows strong cash flow performance with a free cash flow growth rate of 73.57% and a free cash flow to net income ratio of 0.57. The operating cash flow to net income ratio is 0.87, indicating effective cash generation from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.14B	994.99M	924.37M	960.49M	760.70M	478.05M
Gross Profit	461.24M	411.26M	385.62M	416.97M	328.97M	207.54M
EBITDA	215.97M	167.93M	157.49M	152.41M	624.00K	90.90M
Net Income	81.43M	45.87M	45.69M	40.42M	-58.70M	34.53M
Balance Sheet
Total Assets	1.04B	953.30M	864.20M	902.01M	750.00M	707.51M
Cash, Cash Equivalents and Short-Term Investments	209.98M	192.17M	125.78M	133.99M	63.58M	107.73M
Total Debt	307.65M	305.20M	311.57M	311.55M	238.38M	244.75M
Total Liabilities	469.85M	456.38M	423.49M	446.40M	370.86M	372.37M
Stockholders Equity	567.52M	496.92M	440.71M	455.61M	379.13M	335.14M
Cash Flow
Free Cash Flow	84.17M	99.78M	112.67M	103.34M	-92.04M	29.99M
Operating Cash Flow	148.21M	138.89M	143.67M	147.09M	-32.67M	58.87M
Investing Cash Flow	-63.89M	-39.10M	-32.00M	-67.99M	-59.36M	-28.88M
Financing Cash Flow	-43.58M	-25.18M	-119.08M	-4.04M	54.39M	36.99M

TaskUs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TASK, the sentiment is Negative. The current price of 10.92 is below the 20-day moving average (MA) of 11.55, below the 50-day MA of 11.61, and below the 200-day MA of 14.88, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 34.45 is Neutral, neither overbought nor oversold. The STOCH value of 17.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TASK.

TaskUs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FORTY	75 Outperform	$2.53B	35.16	8.18%	0.80%	6.98%	-4.56%
INOD	67 Neutral	$1.87B	57.57	46.40%	―	73.57%	56.21%
HCKT	65 Neutral	$522.00M	49.86	10.27%	2.41%	0.68%	-67.84%
TASK	62 Neutral	$987.36M	12.26	15.40%	―	19.88%	51.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NABL	61 Neutral	$1.23B	-185.51	-0.83%	―	8.65%	-117.14%
CNXC	50 Neutral	$2.59B	-1.74	-37.99%	3.38%	3.40%	53.13%