TaskUs Q2 2025 revenue jumps 24% as AI services drive growth

TEXAS, UNITED STATES — TaskUs has reported a significant surge in its second-quarter revenue, driven by strong demand for its artificial intelligence and Trust + Safety services. 

The digital outsourcing provider announced a 23.6% year-over-year revenue increase to $294.1 million, though it faced a stark contraction in cash flow conversion.

TaskUs revenue soars on AI and security demand

AI services were specifically called out as the fastest-growing segment again this quarter, and the Trust & Safety division continued to have a potent growth rate of almost 30%.

In this performance, the company has effectively capitalized on two of the most demanding and growing demands of the digital economy, which relate to regulating interactions between customers using AI and moderating online material. 

TaskUs has established itself in the competitive outsourcing world by specializing in next-generation services for innovative companies. The brandishment of new AI-centered partnerships further proves a strategic dedication to take over this highly developing market niche.

Profit climbs, but cash flow plunges 99.9%

While profitability metrics showed strength, with net income up 59.1% and Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growing 26.7% to $65 million, the company’s cash flow statements presented a starkly different narrative. 

Net cash provided by operating activities fell 43.4% to $17 million. Most alarming was the near-eradication of free cash flow (FCF), which dropped from $25.5 million in the second quarter of 2024 to a mere $38 thousand this quarter—a 99.9% decrease.

This cratering FCF conversion, which fell from 49.8% to just 0.1% of Adjusted EBITDA, suggests that soaring earnings are not currently translating into liquid cash. This could be attributed to significant increases in working capital requirements, capital expenditures, or other cash uses to fund its rapid growth. 

The company’s alternative metric, adjusted FCF of $6.5 million, still shows a steep 74.5% decline, indicating a fundamental shift in its cash generation cycle that investors will watch closely.

The company’s bottom-line figures showed remarkable improvement of TaskUs. Adjusted net income rose 38.6% to $39.7 million, and earnings per share followed suit, with Diluted EPS at $0.22 and Adjusted EPS at $0.43. 

TaskUs recently ranked #19 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.