Taskus (TASK) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $308.9 million, up 5% year-over-year and exceeding guidance by $10.9 million, with adjusted EBITDA of $57.7 million (18.7% margin) and net income of $22.0 million (7.1% margin).

• AI Services was the fastest-growing segment for the sixth consecutive quarter, up 25.8% year-over-year; DCX grew 6.4% year-over-year.

• Revenue from the largest client declined 22% year-over-year, but other clients grew 15%, with clients ranked two through twenty growing nearly 30%.

• A special cash dividend of $3.65 per share ($332.8 million total) was paid in March 2026, funded by a new $500 million term loan and refinancing.

• Net cash provided by operating activities for the six months was $89.4 million; cash and equivalents at quarter-end were $180.3 million.

Financial highlights

• Adjusted net income was $30.6 million (9.9% margin); adjusted EPS was $0.33; diluted EPS was $0.24.

• Adjusted EBITDA margin for Q2 2026 was 18.7%, down from 22.1% in the prior year.

• Free cash flow for Q2 was $32.0 million, with a 56.5% conversion of adjusted EBITDA; adjusted free cash flow guidance for 2026 is $110–$120 million.

• Net leverage ratio was below 1.3x at quarter-end.

• SG&A expenses dropped to $54.6 million (17.7% of revenue) due to lower transaction costs and reduced stock-based compensation.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1.22–$1.24 billion, with adjusted EBITDA margin expected at ~19%.

• Adjusted free cash flow guidance increased to $110–$120 million.

• Q3 2026 revenue expected at $300–$302 million (0.8% year-over-year growth); adjusted EBITDA margin to remain at 18.7%.

• AI Services growth expected to accelerate above 30% year-over-year in Q4; continued headwinds from largest client anticipated through 2026.

• 2027 investments in AI and growth initiatives to continue, likely impacting margins.