TaskUs (TASK) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 294.54K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 1.30
• Revenue Growth: 7.64%
• EPS Growth: 5.22%
• Country: US
• Employees: 58,850
• Sector: Technology
• Sector Strength: 67
• Industry: Information Technology Services
• EPS (TTM): 0.31
• Shares Outstanding: 20,211,430
• 10 Day Avg. Volume: 212,474
• 30 Day Avg. Volume: 294,540
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.50
• Price Target Upside: 15.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

TaskUs's overall stock score reflects a balance of strong cash flow management and strategic corporate events against challenges in cost efficiency and high valuation. The anticipated acquisition by Blackstone at a premium suggests a positive outlook despite current margin pressures.

Positive Factors

Acquisition

TaskUs announced it entered into an agreement to be taken private by BlackStone and TaskUs cofounders for $16.50 per share in cash.

Client Relationships

TASK is positioned as a top 3 vendor for META due to comprehensive offerings across Trust & Safety and AI Services.

Financial Performance

The company reported first-quarter results that beat consensus expectations for revenue, adjusted EBITDA, and EPS.

Negative Factors

EBITDA Margin

EBITDA margin of 19.6% was 150 basis points below guidance and consensus due to mitigation of a security incident in the fourth quarter.

Pricing Environment

Analysts expect a competitive pricing environment, especially with existing tenured clients who may be reluctant to provide cost-of-living adjustment increases.

Valuation

Analysts remain Neutral-rated given TASK’s premium valuation vs. peers, as well as ongoing contact-center-related fears from investors that will likely keep shares range-bound over the near term.

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 long-term contracts with its clients, providing outsourced digital services such as customer support, content moderation, and back-office operations. The company's key revenue streams are derived from service fees charged for each contract, which are typically based on the volume of work performed or the number of hours dedicated to a client's project. TaskUs has built significant partnerships with large, high-growth technology companies, which contribute substantially to its earnings. The company's ability to scale operations quickly and efficiently, combined with its focus on innovation and quality service delivery, enables it to maintain strong client relationships and secure repeat business, which are crucial factors in its financial performance.

TaskUs Financial Statement Overview

Summary

TaskUs shows a mixed financial performance. While cash flow management and balance sheet stability are strong, significant challenges remain in revenue generation and cost control as reflected in the income statement.

Income Statement

The income statement reflects a challenging environment, with a notable decrease in revenue over the past year and a negative gross profit, indicating inefficiencies in cost management. While EBIT and EBITDA margins improved, these were insufficient to offset the revenue decline, resulting in stagnant net profit margins.

Balance Sheet

TaskUs maintains a relatively stable balance sheet with a debt-to-equity ratio that suggests moderate leverage, and a positive equity ratio indicating sufficient equity backing its assets. However, the return on equity is modest, reflecting limited profitability from shareholders' capital.

Cash Flow

The company has demonstrated strong free cash flow generation, with a positive free cash flow to net income ratio and robust operating cash flows. Although free cash flow growth has fluctuated, the overall cash flow position remains healthy.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
994.99M	924.37M	960.49M	760.70M	478.05M
	Gross Profit
392.09M	385.62M	401.73M	328.97M	207.54M
	EBIT
92.42M	95.04M	83.90M	-54.23M	50.33M
	EBITDA
155.89M	157.49M	153.23M	-6.57M	90.90M
	Net Income Common Stockholders
45.87M	45.69M	40.42M	-58.70M	34.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
192.17M	125.78M	133.99M	63.58M	107.73M
	Total Assets
953.30M	864.20M	902.01M	750.00M	707.51M
	Total Debt
305.20M	311.57M	311.55M	238.38M	244.75M
	Net Debt
113.03M	185.80M	177.56M	174.79M	137.02M
	Total Liabilities
456.38M	423.49M	446.40M	370.86M	372.37M
	Stockholders Equity
496.92M	440.71M	455.61M	379.13M	335.14M
Cash Flow		Free Cash Flow
99.78M	112.67M	103.34M	-92.04M	29.99M
	Operating Cash Flow
138.89M	143.67M	147.09M	-32.67M	58.87M
	Investing Cash Flow
-39.10M	-32.00M	-67.99M	-59.36M	-28.88M
	Financing Cash Flow
-25.18M	-119.08M	-4.04M	54.39M	36.99M

TaskUs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TASK, the sentiment is Positive. The current price of 16.85 is above the 20-day moving average (MA) of 13.65, above the 50-day MA of 13.43, and above the 200-day MA of 14.30, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 76.48 is Negative, neither overbought nor oversold. The STOCH value of 83.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TASK.

TaskUs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXLS	77 Outperform	$7.59B	35.25	23.81%	―	14.18%	21.49%
G	77 Outperform	$8.69B	17.41	22.21%	1.49%	7.33%	-15.86%
EPAM	76 Outperform	$8.94B	20.13	11.57%	―	4.72%	-3.06%
CNXC	74 Outperform	$3.21B	12.61	6.34%	2.50%	21.67%	-17.91%
TASK	67 Neutral	$1.26B	28.05	9.78%	―	7.64%	5.22%
Sector *	60 Neutral	$10.94B	10.37	-6.73%	2.98%	7.75%	-12.61%
VYX	45 Neutral	$1.20B	―	-19.49%	―	-50.48%	-15.75%

TaskUs Corporate Events

TaskUs Enters Merger Agreement with Breeze Merger Corp

On May 8, 2025, TaskUs, Inc. entered into a Merger Agreement with Breeze Merger Corporation, which was approved by the Board of Directors upon the recommendation of a special committee. The merger will result in TaskUs being owned by BCP FC Aggregator L.P. and other trusts, with each share of TaskUs’ Class A and B Common Stock being converted into $16.50 in cash. The merger is subject to various conditions, including stockholder approvals and regulatory clearances. The agreement also includes provisions on the treatment of equity awards and options, and outlines termination conditions and fees.

Spark’s Take on TASK Stock

According to Spark, TipRanks’ AI Analyst, TASK is a Neutral.

TaskUs’s overall stock score reflects a balance of strong revenue growth and positive cash flow management against challenges in cost efficiency and valuation concerns. The earnings call provides a positive outlook with some caution due to margin pressures. Technical indicators suggest moderate upward momentum, though the valuation remains a potential risk factor.

To see Spark’s full report on TASK stock, click here.

TaskUs to Go Private in Blackstone Acquisition

On May 9, 2025, TaskUs announced its agreement to be acquired by an affiliate of Blackstone, along with its Co-Founders Bryce Maddock and Jaspar Weir, in a transaction that will take the company private. The acquisition, offering $16.50 per share in cash, represents a 26% premium over TaskUs’ 30-day volume-weighted average price. This strategic move is aimed at enabling TaskUs to make long-term investments in AI capabilities, enhancing its customer value proposition amid the rapidly evolving AI landscape. The transaction is expected to close in the second half of 2025, pending customary approvals.

Spark’s Take on TASK Stock

According to Spark, TipRanks’ AI Analyst, TASK is a Neutral.

TaskUs’s overall stock score reflects a balance of strong revenue growth and positive cash flow management against challenges in cost efficiency and valuation concerns. The earnings call provides a positive outlook with some caution due to margin pressures. Technical indicators suggest moderate upward momentum, though the valuation remains a potential risk factor.

To see Spark’s full report on TASK stock, click here.