TaskUs Q2 Earnings Call Highlights

TaskUs exceeded Q2 expectations , reporting revenue of $308.9 million, up 5% year over year, and an adjusted EBITDA margin of 18.7%. Adjusted free cash flow was $36.4 million, while net leverage fell below 1.3 times. Growth in AI Services and Digital Customer Experience offset a 22% revenue decline from the largest client. AI Services revenue rose 26% to $66.1 million, while Trust & Safety revenue fell 12.3% amid customer automation efforts. The company raised its 2026 outlook to $1.22 billion–$1.24 billion in revenue and $110 million–$120 million in adjusted free cash flow, although it expects continued largest-client pressure and margin headwinds from wages, pricing, delivery mix and AI investments.

TaskUs NASDAQ: TASK reported second-quarter 2026 revenue of $308.9 million, up 5% from a year earlier and $10.9 million above the high end of its prior guidance, as growth in AI Services and Digital Customer Experience offset declines from its largest client. Adjusted EBITDA totaled $57.7 million, representing an 18.7% margin and exceeding the company’s margin guidance by 70 basis points. Adjusted free cash flow was $36.4 million for the quarter, while cash and cash equivalents stood at $180.3 million as of June 30. The company said its net leverage ratio fell below 1.3 times.

Chief Executive Officer Bryce Maddock said the company’s results reflected continued momentum in AI Services and AI-enabled customer experience offerings. TaskUs also introduced Rishabh Khemka, its new chief financial officer, who joined the company less than two months before the call.

Revenue from TaskUs’ largest client declined approximately 22% year over year during the second quarter, reducing that customer’s share of total revenue to 20%, from 26% in the year-ago period. The company expects additional headwinds from that client’s automation and cost-optimization efforts during the second half of 2026. However, revenue excluding the largest client increased about 15% from a year earlier, accelerating from approximately 13% growth in the first quarter. The company’s second- through 20th-largest clients grew about 30% year over year. Maddock said TaskUs expects to benefit from vendor consolidation at its largest client over the medium term, though the company expects continued pressure through the remainder of 2026 and potentially into 2027. He said the company anticipates being among a smaller group of vendors retained as consolidation occurs. About 75% of the company’s year-over-year revenue growth came from new clients, Khemka said. More than half of second-quarter signings came from existing clients.

Digital Customer Experience, or DCX, generated $175.7 million in second-quarter revenue, up 6.4% year over year. Growth was driven by mobility, logistics and travel, technology, healthcare, retail and e-commerce, and entertainment and gaming clients. TaskUs expects DCX revenue growth in the mid- to high-single digits for 2026, with growth likely to accelerate in the second half. AI Services revenue increased 26% to $66.1 million, marking the company’s seventh consecutive quarter of growth above 25%. The expansion was led by mobility, logistics and travel customers, including autonomous vehicle, autonomous delivery and robotics companies. Growth was partly offset by the conclusion of certain AI automation projects at the company’s largest client and other social media customers. Maddock said AI Services growth is expected to remain near the second-quarter rate in the third quarter before accelerating to more than 30% year over year i...