Taskus (TASK) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $306.3 million, up 10.3% year-over-year, exceeding guidance by $8.3 million, driven by strong growth in AI Services and Digital Customer Experience.

• Adjusted EBITDA was $58.6 million with a 19.1% margin, outperforming guidance.

• Net income was $24.3 million, with a net income margin of 7.9%; Adjusted Net Income was $32.8 million.

• Over $330 million was returned to shareholders via a $3.65/share special dividend, funded by a new $500 million term loan and refinancing.

• Strategic focus on expanding AI consulting, enhancing AI services, and internal AI-driven process automation.

Financial highlights

• Adjusted Free Cash Flow was $42.2 million in Q1 2026; Free Cash Flow was $36.1 million; cash and equivalents ended at $152.3 million.

• Net Debt to Adjusted EBITDA ratio was below 1.4x post-dividend.

• Adjusted EPS was $0.35 on 93.1 million diluted shares; Diluted EPS was $0.26.

• SG&A expenses were $58.3 million (19% of revenue), down as a percentage of revenue from prior year.

• Cost of service was 64.6% of revenue, up from 61.6% year-over-year due to wage inflation and delivery mix.

Outlook and guidance

• Full-year 2026 revenue guidance is $1.210–$1.240 billion, with 3.5% year-over-year growth at midpoint.

• Adjusted EBITDA margin for the year projected at ~19%; Adjusted Free Cash Flow guidance raised to $105–$115 million.

• Q2 2026 revenue expected at $296–$298 million (~1% year-over-year growth); Adjusted EBITDA margin ~18%.

• Trust & Safety revenues expected to decline year-over-year starting Q2 due to client automation.

• Management expects continued growth from digital economy clients and ongoing investments in technology and talent.