tiprankstipranks
Trending News
More News >
TaskUs (TASK)
NASDAQ:TASK
Advertisement

TaskUs (TASK) AI Stock Analysis

Compare
289 Followers

Top Page

TASK

TaskUs

(NASDAQ:TASK)

Select Model
Select Model
Select Model
Neutral 59 (OpenAI - 4o)
Rating:59Neutral
Price Target:
$13.50
▲(25.35% Upside)
TaskUs's overall stock score reflects a mix of strong earnings performance and strategic growth in AI services, offset by technical weakness and revenue challenges. The company's robust cash flow and balance sheet are positives, but bearish technical indicators and the absence of a dividend yield weigh on the score.
Positive Factors
AI Services Growth
The rapid growth in AI services positions TaskUs as a leader in a high-demand sector, supporting long-term revenue expansion and market competitiveness.
Strong Balance Sheet
A strong balance sheet with low leverage enhances financial stability and flexibility, enabling strategic investments and resilience against economic fluctuations.
Record-Breaking Revenue
Record revenue growth indicates robust demand for services and effective business execution, supporting sustained market presence and client retention.
Negative Factors
Revenue Decline
A sharp revenue decline challenges the company's ability to maintain growth momentum and could impact long-term profitability and market position.
Potential Margin Impact from AI Investments
While AI investments are strategic, they may pressure margins short-term, affecting profitability until revenue growth from these investments materializes.
Seasonal and Wage Pressures
Seasonal and wage pressures can erode margins, impacting short-term financial performance and necessitating effective cost management strategies.

TaskUs (TASK) vs. SPDR S&P 500 ETF (SPY)

TaskUs Business Overview & Revenue Model

Company DescriptionTaskUs, 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 MoneyTaskUs 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 Earnings Call Summary

Earnings Call Date:Nov 07, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Positive
TaskUs reported strong financial performance with record revenue and growth in AI services and Trust and Safety segments. However, the termination of the take-private transaction and potential margin pressures from increased AI investments pose challenges. Despite these, the company maintains a strong balance sheet and optimistic outlook for the year.
Q3-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
TaskUs set a record for the highest quarterly revenue in its history with $298.7 million, reflecting a 17% year-over-year growth rate. The company's adjusted EBITDA was $63.5 million, with a margin of 21.2%.
Strong Balance Sheet
TaskUs ended the quarter with $210 million in cash and a net debt to adjusted EBITDA ratio of less than 0.2x, indicating strong financial health.
AI Services Growth
AI services remained the fastest-growing service line with a 60.8% year-over-year revenue increase. The company expects well over 50% year-over-year revenue growth in this segment for 2025.
Trust and Safety Recognition
TaskUs was recognized as a leader in Everest Group's Trust and Safety Services PEAK Matrix Assessment for the third consecutive year.
2025 Revenue Outlook
Full-year revenue is expected to be between $1.173 billion and $1.175 billion, representing approximately 18% year-over-year growth.
Negative Updates
Take-Private Transaction Termination
The proposed take-private transaction was terminated due to a lack of shareholder approval, despite attempts to negotiate a higher offer price.
Potential Margin Impact from AI Investments
Increased investments in AI and other areas may reduce margins in the near term.
Deceleration in Q4 Growth
Q4 revenue growth is expected to decelerate to low double digits, at approximately 11% year-over-year growth at the midpoint.
Seasonal and Wage Pressures
Q4 margins are expected to decline to approximately 19.8% due to seasonal expenses and a minimum wage increase in the Philippines.
Company Guidance
In the TaskUs Third Quarter 2025 Investor Call, the company provided guidance indicating a strong financial performance and strategic direction for the future. TaskUs reported record quarterly revenue of $298.7 million, marking a 17% year-over-year growth, and an adjusted EBITDA of $63.5 million, with a margin of 21.2%. The adjusted earnings per share were $0.42, reflecting a 14% year-over-year increase. The company ended the quarter with $210 million in cash and a net debt to adjusted EBITDA ratio of less than 0.2x. Looking forward, TaskUs expects full-year 2025 revenue between $1.173 billion and $1.175 billion, with approximately 18% year-over-year growth and adjusted EBITDA margins of around 21.1%. For Q4 2025, they anticipate revenue between $302 million and $304 million. TaskUs is focusing on transforming its business for the AI era, with significant investments planned in their Agentic AI consulting organization and AI services, which are expected to support long-term revenue growth and margin expansion despite potential short-term impacts on margins.

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
45
Neutral
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
60
Neutral
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.14B994.99M924.37M960.49M760.70M478.05M
Gross Profit461.24M411.26M385.62M416.97M328.97M207.54M
EBITDA215.97M167.93M157.49M152.41M624.00K90.90M
Net Income81.43M45.87M45.69M40.42M-58.70M34.53M
Balance Sheet
Total Assets1.04B953.30M864.20M902.01M750.00M707.51M
Cash, Cash Equivalents and Short-Term Investments209.98M192.17M125.78M133.99M63.58M107.73M
Total Debt307.65M305.20M311.57M311.55M238.38M244.75M
Total Liabilities469.85M456.38M423.49M446.40M370.86M372.37M
Stockholders Equity567.52M496.92M440.71M455.61M379.13M335.14M
Cash Flow
Free Cash Flow84.17M99.78M112.67M103.34M-92.04M29.99M
Operating Cash Flow148.21M138.89M143.67M147.09M-32.67M58.87M
Investing Cash Flow-63.89M-39.10M-32.00M-67.99M-59.36M-28.88M
Financing Cash Flow-43.58M-25.18M-119.08M-4.04M54.39M36.99M

TaskUs Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.77
Price Trends
50DMA
14.61
Negative
100DMA
15.91
Negative
200DMA
15.39
Negative
Market Momentum
MACD
-0.98
Positive
RSI
21.26
Positive
STOCH
1.72
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 10.77 is below the 20-day moving average (MA) of 12.44, below the 50-day MA of 14.61, and below the 200-day MA of 15.39, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 21.26 is Positive, neither overbought nor oversold. The STOCH value of 1.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TASK.

TaskUs Risk Analysis

TaskUs disclosed 73 risk factors in its most recent earnings report. TaskUs reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

TaskUs Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$2.28B28.7711.46%1.27%9.16%16.38%
69
Neutral
$2.05B6.957.08%4.07%3.40%53.13%
66
Neutral
$1.76B53.8946.40%73.57%56.21%
64
Neutral
$485.84M29.4910.27%2.48%0.68%-67.84%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
$1.33B-0.83%8.65%-117.14%
59
Neutral
$990.98M12.3115.40%19.88%51.03%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TASK
TaskUs
10.77
-4.05
-27.33%
FORTY
Formula Systems
147.75
62.87
74.07%
INOD
Innodata
52.27
7.50
16.75%
HCKT
The Hackett Group
17.65
-12.74
-41.92%
CNXC
Concentrix
33.36
-9.24
-21.69%
NABL
N-able
7.11
-3.26
-31.44%

TaskUs Corporate Events

TaskUs, Inc. Reports Record Revenue Amid AI Growth
Nov 9, 2025

TaskUs, Inc. Class A Earnings Call Highlights Strong Performance Amid Challenges

TaskUs, Inc. Reports Strong Q3 2025 Growth
Nov 8, 2025

TaskUs, Inc. is a prominent provider of outsourced digital services and next-generation customer experience solutions, catering to innovative companies across various fast-growing sectors such as social media, e-commerce, and technology.

M&A TransactionsShareholder Meetings
TaskUs Stockholders Reject Proposed Merger Agreement
Neutral
Oct 8, 2025

On October 8, 2025, TaskUs, Inc. announced that its stockholders did not approve the proposed merger agreement with Breeze Merger Corporation, an affiliate of Blackstone, and TaskUs co-founders. As a result, TaskUs will remain a publicly traded company on Nasdaq under the ticker symbol TASK. The company does not plan to hold another special meeting and expects to terminate the proposed transaction, with no termination fee required from either party. TaskUs CEO Bryce Maddock expressed appreciation for stockholder feedback and reaffirmed the company’s commitment to transforming its business for the AI era.

The most recent analyst rating on (TASK) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on TaskUs stock, see the TASK Stock Forecast page.

M&A TransactionsShareholder Meetings
TaskUs Confirms Special Meeting for Merger Vote
Positive
Oct 7, 2025

On October 7, 2025, TaskUs, Inc. confirmed that the Special Meeting scheduled for October 8, 2025, would proceed as planned to vote on a merger agreement with Breeze Merger Corporation, involving a take-private acquisition by an affiliate of Blackstone and TaskUs co-founders. The proposed transaction, valued at $16.50 per share in an all-cash deal, is recommended by the TaskUs Board and Special Committee, who believe it is in the best interest of stockholders, considering AI’s impact on the company’s business and future prospects.

The most recent analyst rating on (TASK) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on TaskUs stock, see the TASK Stock Forecast page.

M&A TransactionsShareholder Meetings
TaskUs Adjourns Stockholder Meeting for Acquisition Vote
Neutral
Sep 25, 2025

On September 24, 2025, TaskUs announced the adjournment of its special stockholders meeting to October 8, 2025, to gather more proxies in favor of its acquisition by an affiliate of Blackstone and TaskUs’ co-founders. This decision follows a preliminary assessment indicating insufficient votes from unaffiliated stockholders. The proposed transaction, initially announced on May 9, 2025, involves the acquisition of all outstanding shares of Class A common stock not owned by the Buyer Group for $16.50 per share. The adjournment reflects ongoing discussions with stockholders and the perceived benefits of the transaction amid AI’s impact on TaskUs’ business.

The most recent analyst rating on (TASK) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on TaskUs stock, see the TASK Stock Forecast page.

M&A TransactionsShareholder Meetings
TaskUs Adjourns Meeting for Blackstone Acquisition Vote
Neutral
Sep 10, 2025

On September 10, 2025, TaskUs, Inc. adjourned its special stockholders meeting to solicit additional proxies for a proposed acquisition by an affiliate of Blackstone and TaskUs co-founders. The adjournment was necessary as the required Unaffiliated Stockholder Vote had not been obtained. The meeting is rescheduled for September 24, 2025, to secure approval for the merger agreement, which involves acquiring all outstanding Class A common stock for $16.50 per share. The merger is seen as beneficial due to AI’s impact on TaskUs’s business, and the Buyer Group remains committed to the agreed terms.

The most recent analyst rating on (TASK) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on TaskUs stock, see the TASK Stock Forecast page.

TaskUs Reports Strong Q2 2025 Financial Results
Aug 15, 2025

TaskUs, Inc. is a prominent provider of outsourced digital services and next-generation customer experiences, catering to innovative companies across various fast-growing sectors such as social media, e-commerce, and technology. The company operates from 30 locations in 13 countries, employing approximately 60,400 people worldwide.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 15, 2025