Key Highlights

  • Service Revenue reached USD 314.7 million, a company high, up 5.4% from USD 298.7 million a year earlier.
  • Net income slid 16.4% to USD 26.2 million, leaving diluted EPS at USD 0.28 against USD 0.34.
  • AI Services grew 27.7% and passed USD 250 million on a trailing twelve-month basis.
  • Full-year revenue guidance moved up to USD 1.249 billion to USD 1.251 billion, with adjusted EBITDA Margin near 19%.

Record Service Revenue Meets a Narrower Net Margin

TaskUs (NASDAQ:TASK) released third-quarter 2026 results on November 4, 2026. The outsourced digital services provider serves customers in AI, autonomous vehicles, robotics, Social Media and financial services. Net Income landed at USD 26.2 million, an 8.3% margin, versus USD 31.4 million and 10.5% a year ago. Excluding special items, adjusted net income was USD 31.3 million compared with USD 39.0 million. Adjusted EBITDA reached USD 59.1 million with an 18.8% margin, down from 21.2%, while nine-month revenue advanced 6.8% to USD 929.9 million. Leadership framed the quarter as the strongest top-line result in company history. Gross margin commentary was not included in the extract, so the margin analysis rests on net income and adjusted EBITDA alone.

AI Services Growth and a Large-Client Drag

Leadership said AI Services increased about 28% and has been the fastest-growing offering for seven straight quarters. Stripping out the largest customer, revenue growth was close to 20% in the quarter, a sign that one account weighed on the total, though no client-level figure was disclosed. Service costs climbed to USD 205.9 million from USD 185.4 million, roughly 11.0% by our arithmetic, while SG&A declined to USD 54.9 million from USD 59.7 million. Financing expense rose to USD 8.9 million from USD 4.6 million, and Operating Income came to USD 36.5 million against USD 37.9 million. Headcount stood near 64,700 at quarter end. That makes AI Services the primary growth driver, even as concentration in a single client limits how far the Top Line can move in any one quarter.

Cash Conversion Slows as the Outlook Improves

Operating cash flow was USD 30.7 million versus USD 54.3 million, and free cash flow came to USD 22.0 million against USD 42.0 million. Nine-month free cash flow still advanced 42.2% to USD 90.7 million. For the fourth quarter, the company projects revenue of USD 319 million to USD 321 million and an adjusted EBITDA margin around 19.5%. Management did not offer GAAP reconciliations for the margin figure, citing Stock Compensation and currency effects that it said cannot be forecast without unreasonable effort. Midpoint full-year growth is 5.6%, which implies a slower fourth quarter, near 2.3%. Combined cash and unused revolver capacity came to roughly USD 289.7 million on our arithmetic, a figure that frames the funding cushion behind the outlook.

Where Things Stand

Revenue hit a high, but per-share profit fell because costs and financing charges rose faster than sales. Growth outside the largest account ran near 20%, which points to customer concentration as the main drag. Free cash flow equaled 37.3% of adjusted EBITDA, compared with 66.1% earlier, so conversion slowed. Next markers are fourth-quarter revenue inside the USD 319 million to USD 321 million range, cash generation and any update on the largest client. Investors comparing the two measures should note that adjusted net income of USD 31.3 million sits USD 5.1 million above reported net income of USD 26.2 million, a calculated gap. Fourth-quarter results will show whether the revenue range holds at the midpoint.