0001829864-26-000012
SEC filingTaskUs, Inc. reported strong financial performance for fiscal year 2025, with service revenue increasing 19.0% year-over-year to $1.18 billion. Net income more than doubled to $102.3 million from $45.9 million in 2024, driven by revenue growth and improved operating leverage. Operating income grew 52.2% to $140.6 million, while operating cash flow remained robust at $137.2 million. The company maintained a solid balance sheet with $211.7 million in cash and cash equivalents and total assets of $1.05 billion. Key growth drivers included expansion in AI Services and Trust & Safety segments, which now represent 18% and 26% of total revenue respectively, up from 14% and 25% in 2024.
TaskUs delivered strong financial results for fiscal year 2025, with service revenue reaching $1.18 billion, representing 19.0% growth compared to $995.0 million in 2024. Net income more than doubled to $102.3 million from $45.9 million in the prior year, while operating income increased 52.2% to $140.6 million. The company generated $137.2 million in operating cash flow and ended the year with $211.7 million in cash and cash equivalents. Basic earnings per share improved to $1.14 from $0.52, and diluted EPS increased to $1.10 from $0.50. The company's balance sheet remained strong with total assets of $1.05 billion and shareholders' equity of $600.0 million.
Revenue growth was driven by expansion across all three service offerings. Digital Customer Experience remained the largest segment at $661.9 million (56% of total revenue), growing 8.2% year-over-year. Trust & Safety revenue increased 23.9% to $307.4 million (26% of total), while Artificial Intelligence Services showed the strongest growth at 58.6% to $214.2 million (18% of total). Geographically, 54% of revenue was derived from work performed in the Philippines, 13% from India, 11% from the United States, and 22% from the rest of the world. The company served approximately 200 clients, with the top 10 clients accounting for 58% of revenue and Meta representing 26% of total revenue.
Gross margin improved to 37.8% in 2025 from 36.9% in 2024, with gross profit increasing 22.1% to $447.2 million. Operating margin expanded significantly to 11.9% from 9.3% in the prior year, reflecting improved operating leverage as revenue growth outpaced expense increases. Cost of services increased 22.1% to $736.4 million, while selling, general, and administrative expenses grew only 2.2% to $244.9 million. The company benefited from operating efficiencies and scale advantages, with depreciation and amortization expenses remaining relatively stable at $41.2 million and $20.0 million respectively.
Operating cash flow remained strong at $137.2 million, though this represented a slight decrease from $138.9 million in 2024. Free cash flow (operating cash flow minus capital expenditures) was $73.7 million. The company invested $63.5 million in property and equipment and used $44.2 million in financing activities, primarily for stock repurchases ($27.8 million) and debt payments ($15.2 million). Total debt stood at $241.4 million, with $21.6 million current and $219.8 million long-term. The company maintained healthy liquidity with current assets of $509.2 million and current liabilities of $163.3 million, resulting in a current ratio of 3.1.
The company continues to focus on expanding its service portfolio, particularly in AI Services where it aims to integrate Agentic AI systems and consultative expertise. TaskUs plans to evaluate M&A opportunities to expand into higher-value specialized services and gain vertical market expertise. The company faces risks including client concentration (top client represents 26% of revenue), dependence on international operations (54% of revenue from Philippines), and potential impacts from AI adoption on certain service offerings. Regulatory challenges related to content moderation and data privacy also present ongoing risks. The company maintains tax incentives in several jurisdictions that contribute to profitability but are subject to compliance requirements.