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TaskUs (TASK)
NASDAQ:TASK
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TaskUs (TASK) AI Stock Analysis

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TASK

TaskUs

(NASDAQ:TASK)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
$19.00
▲(6.68% Upside)
TaskUs shows strong financial performance with solid revenue growth and improved profitability. Technical indicators suggest a positive trend, but valuation concerns arise due to a high P/E ratio. The lack of dividend yield and earnings call data limits further insights. Overall, TaskUs is on a positive trajectory but faces challenges in cash flow management and valuation.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for TaskUs's services, supporting long-term business expansion and market presence.
Improved Leverage Position
A better leverage position enhances financial stability, allowing TaskUs to invest in growth opportunities without excessive debt burden.
Profitability Improvements
Improved profitability reflects effective cost management and operational efficiency, contributing to sustainable financial health.
Negative Factors
Decline in Free Cash Flow
A decline in free cash flow growth may constrain TaskUs's ability to fund operations and investments, impacting long-term financial flexibility.
Gross Profit Margin Decline
A decline in gross profit margins could indicate rising costs or pricing pressures, potentially affecting long-term profitability.
Cash Generation Efficiency
Moderate cash generation from operations suggests TaskUs may need to improve efficiency in converting earnings into cash for sustainable growth.

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 long-term contracts with its clients, providing them with a range of outsourced services. The company charges its clients based on the volume and complexity of services rendered, often using a per-agent, per-hour, or per-interaction pricing model. Key revenue streams include customer support, technical support, and content moderation services. TaskUs cultivates significant partnerships with leading technology firms, which contribute to a steady flow of contract renewals and expansions, thereby driving its earnings. The company also benefits from its ability to scale operations quickly to meet the dynamic needs of its clients, which is a critical factor in its financial success.

TaskUs Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong performance in revenue growth and new client acquisitions, with positive expectations for 2025. However, this is tempered by margin pressures due to increased investments and security incidents.
Q4-2024 Updates
Positive Updates
Record-Breaking Revenue and Growth
TaskUs delivered $274.2 million in Q4 2024 revenue, exceeding guidance by $4.9 million and marking the second consecutive quarter of record-breaking revenue. This reflects a 17.1% year-over-year revenue growth.
Strong Performance Across Service Lines
All three service lines exhibited accelerated year-over-year revenue growth in Q4 2024, with digital customer experience growing 8.5%, trust and safety at 34%, and AI services reaching 31%.
Successful New Client Acquisitions
Q4 2024 saw a significant uptick in new logo signings, with new clients contributing notably to the revenue growth, especially in financial services and healthcare verticals.
Positive Outlook for 2025
TaskUs expects full-year 2025 revenue of approximately $1.11 billion and aims to continue double-digit revenue growth while expanding adjusted EBITDA margins.
Negative Updates
Margin Pressure
Q4 2024 adjusted EBITDA margin was 19.6%, below the guidance of 21.1%, impacted by higher than anticipated investments and certain business disruptions.
Security Incident Impact
Q4 2024 revenue and margins were negatively impacted by security incidents, leading to suspended operations and necessitating increased investments in security.
Increased SG&A Expenses
SG&A expenses increased to $67.8 million or 24.7% of revenue in Q4 2024, driven by certain litigation costs and higher personnel costs.
Company Guidance
During TaskUs' fiscal fourth quarter and full year 2024 earnings call, the company reported a revenue of $274.2 million for Q4, surpassing the guidance of $269.3 million, reflecting a 17.1% year-over-year growth. The full year revenue reached $995 million with an adjusted EBITDA of $209.9 million, representing a margin of 21.1%. Despite outperforming in revenue, TaskUs experienced a 150 basis point shortfall in adjusted EBITDA margin compared to the guidance of 21.1%, achieving only 19.6% due to increased investments and business disruptions. TaskUs anticipates 2025 revenue between $1.095 billion and $1.125 billion, with expected Q1 2025 revenue of $270-$272 million, implying a 19% year-over-year growth at the midpoint. The company aims for a 21% adjusted EBITDA margin for the full year, with Q1 margins expected at 20%, influenced by fewer working days and seasonal factors. TaskUs plans substantial investments in AI services, security, and operational efficiency, targeting to sustain double-digit growth and margin expansion throughout 2025.

TaskUs Financial Statement Overview

Summary
TaskUs demonstrates solid revenue growth and profitability improvements, particularly in net profit margins. The balance sheet reflects a healthier leverage position, but cash flow management requires attention due to recent declines in free cash flow growth. Overall, the company is on a positive trajectory but should focus on enhancing cash flow efficiency.
Income Statement
75
Positive
TaskUs shows a consistent revenue growth trend with a 5.37% increase in TTM. Gross profit margins have slightly decreased over the years, but remain healthy at 37.34% for TTM. The net profit margin has improved to 5.70% in TTM, indicating better cost management. EBIT and EBITDA margins are stable, reflecting operational efficiency. However, the decline in gross profit margin from previous years is a concern.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has improved to 0.57 in TTM, indicating a better leverage position. Return on equity has increased to 12.24%, showing effective use of equity to generate profits. The equity ratio remains stable, suggesting a balanced asset structure. However, the company should continue to monitor its debt levels to maintain financial stability.
Cash Flow
65
Positive
TaskUs experienced a decline in free cash flow growth by 34.44% in TTM, which is concerning. The operating cash flow to net income ratio is 0.67, indicating moderate cash generation from operations. The free cash flow to net income ratio is 0.44, suggesting room for improvement in converting profits to cash. Despite these challenges, the company has shown resilience in past periods.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.10B994.99M924.37M960.49M760.70M478.05M
Gross Profit411.24M392.09M385.62M401.73M328.97M207.54M
EBITDA171.91M155.89M157.49M153.23M-6.57M90.90M
Net Income62.75M45.87M45.69M40.42M-58.70M34.53M
Balance Sheet
Total Assets1.02B953.30M864.20M902.01M750.00M707.51M
Cash, Cash Equivalents and Short-Term Investments181.92M192.17M125.78M133.99M63.58M107.73M
Total Debt312.91M305.20M311.57M311.55M238.38M244.75M
Total Liabilities473.73M456.38M423.49M446.40M370.86M372.37M
Stockholders Equity544.55M496.92M440.71M455.61M379.13M335.14M
Cash Flow
Free Cash Flow48.49M99.78M112.67M103.34M-92.04M29.99M
Operating Cash Flow110.96M138.89M143.67M147.09M-32.67M58.87M
Investing Cash Flow-62.32M-39.10M-32.00M-67.99M-59.36M-28.88M
Financing Cash Flow-40.20M-25.18M-119.08M-4.04M54.39M36.99M

TaskUs Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.81
Price Trends
50DMA
17.37
Positive
100DMA
17.00
Positive
200DMA
15.93
Positive
Market Momentum
MACD
0.11
Negative
RSI
57.26
Neutral
STOCH
72.52
Neutral
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 17.81 is above the 20-day moving average (MA) of 17.67, above the 50-day MA of 17.37, and above the 200-day MA of 15.93, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 72.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
$7.36B14.0020.81%1.57%7.37%-14.64%
73
Outperform
$7.07B30.2822.27%15.15%34.33%
69
Neutral
$3.00B10.075.72%2.79%3.40%53.14%
68
Neutral
$8.46B21.6510.94%9.73%-0.29%
65
Neutral
$1.60B26.4012.49%19.04%24.49%
50
Neutral
$1.74B-3.7285.48%-43.28%15.29%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TASK
TaskUs
17.81
4.89
37.85%
FORTY
Formula Systems
130.00
50.82
64.18%
INOD
Innodata
70.52
53.75
320.51%
HCKT
The Hackett Group
19.29
-6.49
-25.17%
CNXC
Concentrix
47.66
-2.30
-4.60%
NABL
N-able
8.09
-4.97
-38.06%

TaskUs Corporate Events

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.

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: Sep 17, 2025