TaskUs (NASDAQ:TASK) executives highlighted fourth-quarter and full-year 2025 growth, a refinancing and special dividend plan, and a strategic push to reshape the business around AI during the company’s earnings call.
Leadership changes, refinancing and special dividend
Co-founder and CEO Bryce Maddock opened the call by announcing that CFO Balaji Sekar will leave TaskUs at the end of the quarter to pursue an opportunity with a private company outside the industry. Maddock said Trent Thrash, senior vice president of corporate development and investor relations, will serve as interim CFO, and that Sekar will remain an advisor during the transition.
In connection with the refinancing, TaskUs declared a $3.65 per share special dividend payable to shareholders in March 2026. Management estimated the total dividend payment at approximately $333 million, depending on share count on the record date. Following the refinancing and dividend payment, Maddock said TaskUs expects net leverage to be about 1.5x 2025 adjusted EBITDA, which he described as a prudent level. He also said the dividend does not change plans to invest aggressively in AI-related initiatives.
Q4 and full-year 2025 results
For the fourth quarter, TaskUs reported revenue of $313 million, up 14.1% year over year, and said it exceeded the top end of its guidance by nearly $10 million. Adjusted EBITDA was $61.4 million with an adjusted EBITDA margin of 19.6%.
For the full year 2025, the company posted revenue of $1.184 billion, up 19% year over year, and adjusted EBITDA of $249.1 million, representing a 21% adjusted EBITDA margin. Adjusted net income for 2025 was $151.7 million and adjusted EPS was $1.63, compared with adjusted net income of $118.7 million and adjusted EPS of $1.29 for full-year 2024. In Q4, adjusted net income was $37.1 million and adjusted EPS was $0.40, up from $0.31 a year earlier.
Maddock said the company’s largest client grew revenue 18% year over year in Q4. He added that growth from clients outside the largest client accelerated again to an annual rate of 12.7%. Sekar said the largest client represented 26% of Q4 revenue, down from 27% in Q3 2025 and up from 25% in Q4 2024. He said TaskUs expects top-client concentration to continue declining through 2026 as it diversifies.
TaskUs also discussed customer concentration and cross-selling trends. In Q4, the top 10 clients accounted for 59% of revenue and the top 20 accounted for 72%, compared with 57% and 69% in the prior-year quarter. Sekar said the number of clients using more than one service line increased 19% year over year, and revenue from those clients rose about 19%.
Service line performance and demand trends
Management broke out performance across three service lines:
- Digital Customer Experience (DCX): Q4 revenue of $172.7 million, up 4.8% year over year. Executives cited growth drivers including financial services, healthcare, and technology verticals and said demand for premium, human-delivered customer interactions remains strong even as simpler contacts are automated.
- Trust and Safety: Q4 revenue of $82.7 million, up 18.2% year over year, driven primarily by existing client growth in social media. Maddock said full-year growth for the service line was nearly 24%.
- AI Services: Q4 revenue of $57.5 million, up 45.9% year over year. Maddock said AI services grew nearly 59% for the full year and represented nearly 40% of total Q4 signings, making it the fastest-growing line and expected to lead growth again in 2026.
Maddock said AI services growth reflects investments in AI safety, model development and maintenance, and work tied to autonomous vehicles and robotics. He noted the AI services business can be more project-based, which could make growth “choppy” at times, particularly for certain social media clients.
Margins, costs, and geographic mix
On profitability, Sekar said Q4 cost of service rose to 63.6% of revenue from 61.9% a year earlier, citing wage and benefits inflation, statutory changes in certain offshore geographies, new sites, and business mix shifts tied to faster growth in Latin America and Europe, as well as incremental hiring and training. He said those pressures were partially offset by operational efficiency improvements in cost of service and overhead functions implemented earlier in 2025.
Engineering expenses were $59.4 million (19% of revenue) in Q4, down from $67.8 million (24.7% of revenue) in the year-ago quarter, driven primarily by lower personnel expenses including reduced stock-based compensation and lower litigation-related expenses.
TaskUs’ Q4 revenue by delivery geography was 52% Philippines, 11% United States, 14% India, and 23% rest of world. Sekar said Latin America was the fastest-growing region, up about 45% year over year in Q4, while Europe grew more than 25% and Asia Pacific grew more than 10%. He emphasized that delivery location is the primary driver of gross margin. The company ended 2025 with about 65,500 teammates, up roughly 1,700 from the end of Q3.
2026 outlook: slower growth, AI transformation investments
TaskUs guided to Q1 2026 revenue of $296 million to $298 million (about 7% year-over-year growth at the midpoint) and an adjusted EBITDA margin of approximately 19%. Management said Q1 will see a sequential revenue headwind of roughly $17 million from two fewer working days (about $9 million) and seasonal revenue declines (about $8 million). The company also cited higher AI transformation investments and a mix shift as newly signed AI services contracts ramp in onshore locations where margins are typically lower.
For full-year 2026, TaskUs forecast revenue of $1.21 billion to $1.24 billion (about 3.5% growth at the midpoint) and adjusted EBITDA margin of approximately 19%. Maddock said the deceleration is primarily driven by the company’s largest client, which has signaled it intends to use AI to drive efficiencies in 2026, impacting some of the work TaskUs performs. He added that TaskUs expects to benefit from vendor consolidation over the medium term and noted the largest client continues to work with TaskUs on emerging initiatives including AI and augmented reality.
Management said it expects growth in the rest of the portfolio to be led by autonomous vehicle and robotics customers and foundational model developers, with revenue from those categories expected to more than double in 2026. Maddock also said the company expects its top 20 clients excluding the largest client (clients 2 through 20) to grow revenue by approximately 15% in 2026, citing vendor consolidation and demand in emerging industries.
On cash and leverage, Sekar said cash and cash equivalents were $211.7 million at year-end 2025 and adjusted net debt leverage ended the year at 0.1x adjusted EBITDA. The company generated $137.2 million in operating cash flow in 2025 and reported capital expenditures of $63.5 million (5.4% of revenue). Adjusted free cash flow was $89.9 million, which management said was below guidance primarily due to working capital increases tied to stronger-than-expected revenue. For 2026, Sekar said the company expects approximately $100 million in adjusted free cash flow and slightly lower capital expenditures, reflecting fewer facility expansions offset by timing of payments and ongoing investments such as security infrastructure.
About TaskUs (NASDAQ:TASK)
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.
