TaskUs, Inc.
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Item 1. Business
Overview
We deliver outsourced digital services that power the companies shaping the future. By combining specialized human talent and intelligent technology, we solve complex operational challenges for global category leaders within AI, autonomous vehicles, robotics, social media, financial services, healthcare, and beyond. We enable our clients to elevate their customer experience, protect their platforms, and grow their brands. As of December 31, 2025, we supported approximately 200 clients.
Our global, omnichannel delivery model is focused on providing our clients with three key services – Digital Customer Experience (“Digital CX”), Trust & Safety and Artificial Intelligence (“AI”) Services.
Our delivery model is tailored to meet the needs of modern businesses and digital re-inventors. Our cloud-based technology infrastructure is designed to enable us to set up and scale operations quickly and seamlessly while allowing clients to rely on us to optimize delivery across many of their core business and administrative processes. In combination with well-trained human talent, we use data science, process automation and transformation, and generative AI to achieve technology-driven efficiency gains and improved business outcomes.
We believe our distinctive culture, which prioritizes investments in our frontline employees’ training, well-being, and financial success, helps us attract, develop, and retain talent while differentiating our services to better serve our clients. As we expand globally, we strive to champion our vision of operational excellence through an employee-centric culture everywhere we operate. As of December 31, 2025, our worldwide Headcount totaled approximately 65,500 people across 31 sites in 13 countries capable of delivering services in more than 30 languages.
Solutions and Services
The TaskUs platform is purpose-built and organized around three service offerings: Digital Customer Experience, Trust & Safety and Artificial Intelligence Services. For the fiscal year ended December 31, 2025, Digital Customer Experience, Trust & Safety and Artificial Intelligence Services represented 56%, 26% and 18%, respectively, of our total service revenue of $1,183.5 million compared to 61%, 25% and 14%, respectively, of our total service revenue of $995.0 million for the year ended December 31, 2024.
We aim to bolster our portfolio of highly complementary service capabilities by integrating Agentic AI systems integration capabilities, consultative expertise, process automation, and technology that further expand our value proposition to clients. This may include evaluating M&A opportunities to expand into higher value, specialized services, gain vertical market expertise, or acquire additional capabilities and technologies.
Digital Customer Experience
Our digitally native service offerings enable us to utilize lower-cost non-voice channels. We leverage chat, social, in-app support, SMS, and in-platform solutions and apply an “automation first” mentality to our client engagements. In 2025, 79% of our Digital CX revenues were generated from non-voice, digital channels or omni-channel services, while the remaining 21% were generated purely from voice channels; even our pure voice work is supported by cloud-based and generative AI infrastructure.
Our Digital Customer Experience solutions include:
Omnichannel Customer Care: Protecting and maintaining our clients’ brands makes up a significant portion of our Digital CX services. We differentiate our performance and elevate customer experiences with our focus on blending adaptive, Agentic AI technologies and human-powered operational excellence, driving efficiency, based on frontline insights and advanced analytics, and our culture of employee engagement which enhances the customer experience they provide.
New Product or Market Launches: We support our clients’ in-house teams delivering key market insights, speed and agility, and frontline feedback on the true customer experience so they can adapt and win quickly in new initiatives.
Sales and Customer Acquisition: TaskUs supports outbound sales, lead research, lead generation, appointment setting, new customer outreach and activation, retention, and advanced customer conversion from free and low cost subscription/product offerings to offerings of higher value and profitability. Our expertise in this space earned us recognition in January 2025 as a Major Contender in the Everest Group’s Sales Services PEAK Matrix® Assessment 2024.
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TaskUs Digital CX Consulting: TaskUs provides a suite of services to our clients that need assistance designing their customer experience programs and optimizing their operating environments, including Digital CX strategy, operational excellence and technology assessment and recommendations. Additionally, TaskUs brings our strategic consulting capabilities and AI model training, maintenance, and safety solutions together with our expertise in our clients’ processes and workflows to help clients implement Agentic AI - unlocking cost savings and amplifying the power of our human teammates.
Learning Experience: TaskUs provides the curricula, training processes, e-Learning systems, and programs that enable global brands to scale operations, make impactful decisions, build smarter process flows and create high-performing teams.
Trust & Safety
Government regulations and cultural norms require online platforms to maintain increasingly distinct content policies in different geographies, which are dynamically updated in response to the latest threats and evolving bad actor behavior. Our Trust & Safety teams partner with clients to apply best practices to policy development and distribution, product design, quality, and training. For the third year in a row, TaskUs was recognized as a Leader in the Everest Group’s Trust and Safety Services PEAK Matrix® Assessment 2025.
Trust & Safety consists of two primary areas of service: Content Moderation and Financial Crime & Compliance.
Content Moderation
Content Moderation pertains to the process of monitoring, reviewing and managing user and advertiser-generated content on online platforms to ensure it complies with community guidelines, legal regulations, and platform-specific policies. Our Content Moderation solutions help our clients create an appropriate environment for their end users while helping mitigate risks such as abuse, fraud, intellectual property violations and exploitation. We may rely on certain technology to remove content commonly understood or defined by our client’s policies to be objectionable; however, due to increasingly complex policies, decisions are often ambiguous. Our Content Moderation experts possess deep domain knowledge, as well as broad cultural and market expertise, which helps them discern context, parse novel slang, and identify content that has been modified to intentionally avoid detection.
Highlights of our Content Moderation services include:
TaskUs Wellness & Resiliency Department: follows a preventative care approach, leveraging existing best practices in the fields of mental health care, medicine, and occupational health and safety to inform the type, scope and degree of offerings available to our teammates. We offer the following:
•Global Life Coaching: We partner with employees in their pursuit of personal well-being through transformative coaching conversations.
•The Resiliency Studio: A psychological health and safety program providing innovative interventions to bolster brain health and equip individuals with the tools to cope with their unique challenges.
•Division of Wellness & Resiliency Research: A dedicated team focused on behavioral health to advance teammates’ mental health and well-being through innovative research and comprehensive data collection.
•Wellness Technology: We specialize in assessing, creating, and deploying culturally competent and comprehensive well-being tools.
Financial Crime & Compliance
Financial Crime & Compliance pertains to services designed to protect end users, detect and eliminate fraud, address unwanted user activity, and manage regulatory compliance. TaskUs was recognized as a Leader in the Everest Group’s Financial Crime and Compliance (FCC) PEAK Matrix® Assessment 2025.
Our Financial Crime & Compliance services include:
•Identity: We help safeguard client platforms while accounting for and servicing know-your-customer (“KYC”) and know-your-business (“KYB”) requirements. We verify the identity of new users, sellers, merchants, and other third parties like hosts and drivers, and support the due diligence process for businesses and higher-risk customers.
•Compliance: We deploy and scale Anti-Money Laundering/Countering the Financing of Terrorism (“AML/CFT”) compliance, sanctions screening, and enhanced due diligence teams and respond to regulatory changes over time.
•Fraud: We monitor platform activity for signs of fraud and respond to user-reported complaints, escalating high-priority matters for immediate review. Our fraud investigators identify systemic threats and manage cases to maintain tolerance limits. We deploy workflows, automation, and case management tools to quickly process chargebacks and disputes, and validate transactions.
•Digital Transformation: We build automation technology into our solutions to deliver better quality outcomes faster, improve efficiency and reduce risks.
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Artificial Intelligence Services
With over a decade of experience, we specialize in helping clients deploy and maintain sophisticated AI solutions. As AI capabilities have evolved—especially in areas like generative AI—we have developed specialized teams and processes to meet the growing sophistication of market demands. We were also recognized as a Leader in the Everest Group’s Data Annotation and Labeling (DAL) PEAK Matrix® Assessment 2024.
Our teams support key stages across our customers’ machine learning lifecycle: pre-training data collection and preparation, post-training evaluation, and continuous model assessment. Each stage is backed by specialized quality frameworks and domain expertise.
Our Artificial Intelligence Services solutions include:
Large Language Model Support: Providing support for generative AI development through specialized feedback, testing, maintenance and evaluation services. Our teams combine multilingual capabilities with domain expertise across STEM fields like biology, chemistry, coding, and mathematics, to help clients refine and improve their language models through structured human feedback processes.
Data Quality Services: Enhancing AI training datasets through precise annotation of images, video, audio, and text according to client specifications. The accuracy of our work directly impacts the performance of our clients' AI systems and algorithms.
Our data quality services support key AI applications, including:
•Computer Vision: Supporting autonomous systems and visual recognition technologies through image annotation for training data.
•Natural Language Processing: Enabling language understanding through detailed annotation of text data, including syntactic, semantic, and sentiment markup.
•Multimodal Processing: Facilitating audio-visual AI applications through synchronized annotation of audio transcription and visual object identification.
•Sensor Data Enhancement: Supporting autonomous systems through precise annotation of sensor data streams, including LiDAR and other sensing technologies.
AI Deployment Management in the Field: Through our relationship with autonomous vehicle and robotics companies we have built capabilities in deploying and managing the performance of AI in real-world production environments. We have built standard operating procedures to handle real-time management, troubleshooting, and emergency response. We have also built feedback mechanisms and process improvement recommendations into our delivery models to help clients continue to adapt, improve, and evolve in their AI deployments. We have designed and built a human-in-the-loop service that supports training AI driving models by handling complex or unusual road conditions and navigational challenges presented by urban environments. The data collected helps refine the AI model to improve safety and reliability of the vehicle’s and robot’s autonomous performance.
Artificial Intelligence (“AI”) Safety:
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes included in Part II, Item 8 of this Annual Report on Form 10-K (this “Annual Report”). In addition to historical data, the following discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed in our forward-looking statements as a result of various factors, including but not limited to those discussed under “Cautionary Note Regarding Forward-Looking Statements” and disclosed or referenced in Part I, Item 1A “Risk Factors” in this Annual Report. The following discussion and analysis also includes a discussion of certain non-GAAP financial measures. For a description and reconciliation of the non-GAAP measures discussed in this section, see “—Non-GAAP Financial Measures” below.
This Annual Report includes certain historical consolidated financial and other data for TaskUs, Inc. (“we,” “us,” “our” or the “Company”). The following discussion provides a narrative of our financial condition and results of operations for the fiscal year ended December 31, 2025 compared to the fiscal year ended December 31, 2024. A discussion regarding our financial condition and results of operations for the fiscal year ended December 31, 2024 compared to the fiscal year ended December 31, 2023 can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 8, 2024, which is incorporated herein by reference.
Overview
We deliver outsourced digital services that power the companies shaping the future. By combining specialized human talent and intelligent technology, we solve complex operational challenges for global category leaders within AI, autonomous vehicles, robotics, social media, financial services, healthcare, and beyond. We enable our clients to elevate their customer experience, protect their platforms, and grow their brands. As of December 31, 2025, we supported approximately 200 clients.
Our global, omnichannel delivery model is focused on providing our clients three key services – Digital Customer Experience (“Digital CX”), Trust & Safety, and Artificial Intelligence (“AI”) Services. 87% of our revenue for the year ended December 31, 2025 was delivered from non-voice, digital channels or omnichannel services which allow us to utilize resources efficiently, thereby driving higher profitability.
We have designed our platform to enable us to rapidly scale and benefit from our clients’ growth. We believe our ability to deliver “ridiculously good” outsourcing will enable us to continue growing our client base. We use our strong reputation and expertise serving the digital economy to attract new innovators and enterprise-class brands looking to transform.
At TaskUs, culture is at the heart of everything we do. Many of the companies operating in the digital economy are well-known for their obsession with creating a world-class employee experience. We believe clients choose TaskUs in part because they view our company culture as aligned with their own, which enables us to act as a natural extension of their brands and gives us an advantage in the recruitment of highly engaged frontline teammates who produce better results.
Business Highlights
During 2025, we won 34 new clients and achieved a 36% new client win rate, while increasing the scope of services provided to our current clients, with 67 current clients signing new statements of work. Since returning to revenue growth of 7.6% in 2024, our continuing focus on clients and focused investments in technology and talent has supported an acceleration of revenue growth to 19.0% while increasing our net income margin to 8.6%.
2025 Developments
AI Investments
Certain of our clients, including our largest client, have announced automation initiatives which include significant investments in generative AI. In some cases, TaskUs is supporting these initiatives, which may lead to revenue growth in the near term but may ultimately result in the automation of some services that TaskUs currently provides for these clients. We continue to pursue opportunities to transform our business, and create new, enduring revenue streams, in response to these developments. This includes our partnerships with developers of agentic AI technologies to help our clients seamlessly integrate advanced AI technologies into their customer experience operations. While certain of our clients’ initiatives have driven revenue growth in recent quarters, there can be no assurance that our revenue will continue at the same level, or that revenue in other service offerings will not be negatively impacted by our clients' automation investments.
Recent Financial Highlights
For the year ended December 31, 2025, we recorded service revenue of $1,183.5 million, a 19.0% increase from $995.0 million for the year ended December 31, 2024.
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For the year ended December 31, 2025, we recorded net income of $102.3 million a 123.0% increase from $45.9 million for the year ended December 31, 2024, due primarily to higher revenue growth and the impact of foreign currency exchange rates, partially offset by higher cost of services. Adjusted Net Income for the year ended December 31, 2025 increased 27.8% to $151.7 million from $118.7 million for the year ended December 31, 2024. Adjusted EBITDA for the year ended December 31, 2025 increased 18.7% to $249.1 million from $209.9 million for the year ended December 31, 2024. For definitions and reconciliations to net income, the most directly comparable measure in accordance with GAAP, see "—Non-GAAP Financial Measures below."
Our operating results in any period are not necessarily indicative of the results that may be expected for any future period.
Subsequent Events
For a description of subsequent events, see Note 17, "Subsequent Events" in the Notes to Consolidated Financial Statements included included in this Annual Report.
Trends and Factors Affecting our Performance
There are a number of key factors and trends affecting our results of operations.
New client wins and growing with our current clients
We won 34 new clients in 2025, and we achieved a 36% new client win rate for every dollar of new client opportunities we pursued. As our clients grow in size and the complexity of their outsourcing needs increases, we believe we have an opportunity to increase the addressable spend available to TaskUs through enhanced penetration of current services as well as cross-selling new services. We continue to see meaningful opportunities from recent industry consolidation as clients diversify their vendor networks. We are focused on capturing a larger share of their demand for specialized services that support and protect their brands. In 2025, 67 current clients signed new statements of work with us. As of December 31, 2025, we supported approximately 200 of the world’s leading companies and generated revenue in excess of $1.0 million from 98 of these clients during 2025. We also made progress on our strategic goal of cross-selling our suite of specialized services to our client base, increasing the number of clients using more than one service line by 14% year-over-year to 73 clients.
Expanded service offerings
We watch trends and work closely with current and potential clients to develop offerings that we believe align with our core competencies and present an attractive market opportunity. This approach has earned us the opportunity to support some of the most innovative companies and has enabled significant expansion opportunities with large global enterprises. During 2025, we focused on expanding the following specialized service offerings:
•AI Deployment Management in the Field: Working with autonomous vehicle and robotics companies to deploy and manage the performance of AI in real-world production environments.
•AI Safety: Evaluating and fine-tuning Large Language Models, ensuring client deployments remain compliant with evolving international safety standards and ethical guidelines. Providing an integrated approach that addresses the critical 'human-in-the-loop' requirement for developing trustworthy AI while reducing operational risks associated with generative technology for our clients.
•Agentic AI Partnerships: Partnering with agentic AI platform companies to apply agentic AI upfront to automate many simple, repetitive customer service functions, while providing human support from our talented experts.
Expanding geographically
We expanded our presence to 31 sites in 13 countries as of December 31, 2025. During 2025, we significantly increased our Headcount in India, the Philippines and the Rest of World by approximately 3,300 employees, 2,600 employees and 800 employees, respectively. We plan to continue expanding our geographic footprint to drive growth with both existing and new clients, which may result in one-time costs that may impact profitability.
As we enter new geographies and make new capabilities available, clients may elect to move current work with TaskUs from one geography to another to optimize cost or provide additional business continuity to their operations. This allows us to serve our clients better in the long term in most cases and deepens our relationship as we tend to grow and operate over multiple geographies with our larger clients over time as they grow. As of December 31, 2025, we supported 78 clients from more than one geography, a decrease of 6% year-over-year. These changes in geographic mix may result in fluctuations in revenue and cost of service which are driven by the geography in which the work is being performed. These fluctuations align with our business model, which aims to deliver service out of the optimal geography for our clients. These fluctuations might be especially noticeable in a particular service line or geography on a period over period basis.
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Cost management and financial flexibility
During the year ended December 31, 2025, we continued to focus on cost management and financial flexibility. We reviewed our cost structure and invested in process and technology improvements in order to drive efficiencies across functions. While we incurred certain costs associated with these activities, including severance in some cases, we believe these actions will have long-term benefits to the goal of enabling our future growth and profitability. These cost management activities enabled us to make investments in growth including resources in sales and marketing, global delivery locations, and the deployment of technologies.
During the year ended December 31, 2025, we generated net cash flow from operating activities of $137.2 million and Free Cash Flow of $73.7 million, respectively, resulting in an increase of cash and cash equivalents of $19.5 million, while reducing our debt. As of December 31, 2025, we had cash and cash equivalents totaling $211.7 million and $190.0 million of borrowing availability under the 2022 Revolving Credit Facility, which we believe positions us well to continue investing in our future growth and profitability.
Hiring and retention of employees
In order to efficiently and effectively provide services to our clients, we must be able to quickly hire, train and retain employees. We offer our employees competitive wages with annual increases and also invest in their well-being. Our employee benefits and employee engagement costs may vary from period to period based on employee participation. We seek to retain sufficient employees to serve our clients’ increasing business needs and position ourselves for growth. We believe our focus on employee culture leads to lower employee attrition levels. Apart from driving our high client satisfaction and retention metrics, lower employee attrition leads to lower hiring and training costs and higher employee productivity. The voluntary attrition rate for employees who were employed by TaskUs for more than 180 days was 26.6% for the year ended December 31, 2025.
Key Components of Our Results of Operations
Service Revenue
We derive revenues from the following three service offerings:
•Digital Customer Experience: Principally consists of omnichannel customer care services, primarily delivered through digital (non-voice) channels. Also included in this offering are learning experience and sales and customer acquisition services.
•Trust & Safety: Principally consists of monitoring, reviewing and managing user and advertiser-generated content on online platforms to ensure it complies with community guidelines, legal regulations and platform specific policies. Also included in this offering are our services for risk management, compliance, identity management and fraud.
•AI Services: Principally consists of large language model support and high-quality data labeling services, annotation, context relevance and transcription services performed for the purpose of training and tuning machine learning algorithms, enabling them to develop cutting-edge AI systems.
As these services are delivered, we bill our clients on either time-and-materials, cost-plus, unit-priced, fixed-price, or outcome oriented basis. Service revenue from time-and-materials or cost-plus contracts is recognized as the services are performed. Service revenue from unit-priced contracts is recognized monthly as transactions are processed based on objective measures of output. Service revenue from fixed-price contracts is recognized monthly as service revenue is earned and obligations are fulfilled. Service revenue from outcome oriented contracts is recognized when it is reasonably certain that the desired outcome has been achieved.
Operating expenses
Cost of services
Cost of services consists primarily of costs related to delivery of services, and consists primarily of personnel costs like salaries and wages, stock-based compensation expense and employee welfare. Additionally, cost of services includes expenses related to sites and technology, recruiting, professional development and employee engagement costs that can be directly attributed to the delivery of services.
Selling, general, and administrative
Selling expenses consist of personnel costs, travel expenses, and other expenses for our client services, sales and marketing teams. Additionally, it includes costs of marketing and promotional events, corporate communications, and other brand-building activities.
General and administrative expenses consist of personnel costs and related expenses for technology, human resources, legal, finance, global shared services, and executives as well as professional fees, insurance premiums, cloud-based capabilities and other corporate expenses.
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Depreciation
Depreciation is computed on a straight-line basis over the estimated useful life of our property and equipment assets, generally three to five years or, for leasehold improvements, over the term of the lease, whichever is shorter.
Amortization of intangible assets
Amortization of intangible assets relates primarily to our client relationship and trade name intangibles, which are amortized over their useful lives using the straight-line method, which reflects the pattern of benefit, and assumes no residual value.
Other income, net
Other income, net primarily consists of gains and losses resulting from the remeasurement of U.S.-denominated accounts to foreign currency, gains and losses resulting from changes in the fair value of our foreign currency exchange rate forward contracts which are not designated as hedging instruments, as well as interest income.
Financing expenses
Financing expenses primarily consist of interest expenses related to our term loan as well as commitment fees related to the undrawn revolving credit facility.
Provision for income taxes
Provision for income taxes consists primarily of income taxes related to U.S. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business.
Results of Operations
Comparison of the Years Ended December 31, 2025 and 2024
The following table sets forth certain historical consolidated financial information for the years ended December 31, 2025 and 2024:
| Year ended December 31, | Period over Period Change | |||||||||||||||||||||
| (in thousands) | 2025 | 2024 | ($) | (%) | ||||||||||||||||||
| Service revenue | $ | 1,183,547 | $ | 994,985 | $ | 188,562 | 19.0 | % | ||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Cost of services | 736,361 | 602,898 | 133,463 | 22.1 | % | |||||||||||||||||
| Selling, general, and administrative expense | 244,888 | 239,585 | 5,303 | 2.2 | % | |||||||||||||||||
| Depreciation | 41,164 | 40,223 | 941 | 2.3 | % | |||||||||||||||||
| Amortization of intangible assets | 19,983 | 19,935 | 48 | 0.2 | % | |||||||||||||||||
| Loss (gain) on disposal of assets | 525 | (80) | 605 | NM | ||||||||||||||||||
| Total operating expenses | 1,042,921 | 902,561 | 140,360 | 15.6 | % | |||||||||||||||||
| Operating income | 140,626 | 92,424 | 48,202 | 52.2 | % | |||||||||||||||||
| Other income, net | (14,433) | (3,306) | (11,127) | 336.6 | % | |||||||||||||||||
| Financing expenses | 18,385 | 21,549 | (3,164) | (14.7) | % | |||||||||||||||||
| Income before income taxes | 136,674 | 74,181 | 62,493 | 84.2 | % | |||||||||||||||||
| Provision for income taxes | 34,399 | 28,311 | 6,088 | 21.5 | % | |||||||||||||||||
| Net income | $ | 102,275 | $ | 45,870 | $ | 56,405 | 123.0 | % | ||||||||||||||
NM = not meaningful
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Service revenue
Service revenue by service offering
The following table presents the breakdown of our service revenue by service offering for each period:
| Year ended December 31, | Period over Period Change | |||||||||||||||||||||
| (in thousands) | 2025 | 2024 | ($) | (%) | ||||||||||||||||||
Digital Customer Experience | $ | 661,899 | $ | 611,837 | $ | 50,062 | 8.2 | % | ||||||||||||||
Trust & Safety | 307,430 | 248,041 | 59,389 | 23.9 | % | |||||||||||||||||
AI Services | 214,218 | 135,107 | 79,111 | 58.6 | % | |||||||||||||||||
Service revenue | $ | 1,183,547 | $ | 994,985 | $ | 188,562 | 19.0 | % | ||||||||||||||
Digital Customer Experience was primarily driven by an increase from existing clients, including Technology, Healthcare and Financial Services, partially offset by a decrease in On Demand Travel + Transportation. The remaining increase was primarily driven by new clients in Retail + E-Commerce and Technology.
Trust & Safety was primarily driven by an increase from existing clients, primarily in Social Media, partially offset by a decrease in On Demand Travel + Transportation.
AI Services was primarily driven by an increase from existing clients, primarily in Social Media, as well as On Demand Travel + Transportation.
Service revenue by delivery geography
We deliver our services from multiple locations around the world; however, the majority of our service revenues are derived from contracts that require payment in United States dollars, regardless of whether the clients are located in the United States.
The following table presents the breakdown of our service revenue by geographical location, based on where the services are provided:
| Year ended December 31, | Period over Period Change | |||||||||||||||||||||
| (in thousands) | 2025 | 2024 | ($) | (%) | ||||||||||||||||||
Philippines | $ | 638,042 | $ | 563,032 | $ | 75,010 | 13.3 | % | ||||||||||||||
United States | 132,058 | 117,773 | 14,285 | 12.1 | % | |||||||||||||||||
| India | 153,766 | 123,804 | 29,962 | 24.2 | % | |||||||||||||||||
Rest of World | 259,681 | 190,376 | 69,305 | 36.4 | % | |||||||||||||||||
Service revenue | $ | 1,183,547 | $ | 994,985 | $ | 188,562 | 19.0 | % | ||||||||||||||
Philippines: AI Services contributed 6.3% of the total increase primarily driven by clients in Social Media and On Demand Travel + Transportation. Digital Customer Experience contributed 5.1% of the total increase primarily driven by clients in Technology, Financial Services and Healthcare, partially offset by clients in Retail + E-Commerce and On Demand Travel + Transportation. Trust & Safety contributed 1.9% of the total increase primarily driven by clients in Social Media, partially offset by clients in Financial Services.
United States: AI Services contributed 22.0% of the total increase driven by clients in Social Media and On Demand Travel + Transportation. Trust & Safety contributed 1.5% of the total increase primarily driven by clients in Social Media. Digital Customer Experience reduced 11.4% of the total increase primarily driven by clients in Technology, On Demand Travel + Transportation, Financial Services and Healthcare.
India: Digital Customer Experience contributed 22.9% of the total increase primarily driven by clients in On Demand Travel + Transportation, Retail + E-Commerce, Healthcare, Technology and Professional Services + Industry, partially offset by clients in Financial Services. AI Services contributed 7.6% of the total increase primarily driven by clients in Social Media. Trust & Safety reduced 6.3% of the total increase primarily driven by clients in Social Media and On Demand Travel + Transportation.
Rest of World: Trust & Safety contributed 28.6% of the total increase primarily driven by clients in Social Media and Financial Services. AI Services contributed 4.4% of the total increase primarily driven by clients in Social Media and Entertainment + Gaming. Digital Customer Experience contributed 3.4% of the total increase primarily driven by clients in Technology, Financial Services and Professional Services + Industry, partially offset by clients in On Demand Travel + Transportation and Retail + E-Commerce. Growth in the Rest of World was driven by Latin America and Europe.
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Operating expenses
Cost of services
The increase was primarily driven by higher personnel costs of $108.2 million associated with increased headcount and facilities costs associated with site expansion. The remaining increase includes employee engagement and transportation costs. These increases were partially offset by realized gains on cash flow hedges of $4.1 million.
Selling, general, and administrative expense
The increase was primarily driven by transaction costs of $11.9 million and operational efficiency costs of $2.4 million. The remaining increase includes higher employee and client engagement expenses. These increases were partially offset by a reduction of litigation costs of $15.4 million and personnel costs of $1.0 million, including a $11.0 million reduction in stock-based compensation expense.
Loss (gain) on disposal of assets
The change was primarily driven by the write-off of software due to the determination that it would no longer be used in our operations or provide future economic benefit.
Other income, net
Increase is due primarily to higher interest income. This increase was partially offset by changes driven by our exposure to foreign currency exchange risk resulting from our operations in foreign geographies, offset by economic hedges using foreign currency exchange rate forward contracts. See Part II, Item 7A., "Quantitative and Qualitative Disclosures About Market Risk" in this Annual Report for additional information on how foreign currency impacts our financial results.
Financing expense
Changes in financing expense are primarily driven by changes in the rate of SOFR used to calculate the interest rate of our debt, as well as quarterly payments. See “—Liquidity and Capital Resources—Indebtedness—2022 Credit Agreement” for additional information.
Provision for income taxes
Our effective tax rate for the years ended December 31, 2025 and 2024 was 25.2% and 38.2%, respectively. Costs related to the issuance of stock-based compensation, litigation costs, transaction costs, severance and operational efficiency costs within the provision for income taxes calculation are adjusted for Non-GAAP purposes. If those costs are removed, the provision for income taxes would have been $43.6 million and $35.0 million and the effective tax rate would have been 23.9% and 26.4% for the years ended December 31, 2025 and December 31, 2024, respectively.
Revenue by Top Clients
The table below sets forth the percentage of our total service revenue derived from our largest clients for the years ended December 31, 2025 and 2024:
| Year ended December 31, | |||||||||||||||
| 2025 | 2024 | ||||||||||||||
Top ten clients | 58 | % | 56 | % | |||||||||||
Top twenty clients | 71 | % | 68 | % | |||||||||||
For the years ended December 31, 2025 and 2024, we generated 26% and 22%, respectively, of our service revenue from our largest client.
Many of our clients are part of the rapidly growing digital economy and they rely on our suite of digital solutions to drive their continued success. For our existing clients, we benefit from our ability to cross sell new solutions and provide service in multiple geographies, further deepening our entrenchment. We continue to identify and target high growth industry verticals and clients. Our strategy is to win new clients and further grow with our existing ones in order to achieve meaningful client and revenue diversification over time.
Foreign Currency
As a global company, we face exposure to movements in foreign currency exchange rates. Fluctuations in foreign currencies impact the amount of total assets, liabilities, revenue, operating expenses and cash flows that we report for our foreign subsidiaries upon the translation of these amounts into U.S. Dollars. See Item 7A., “Quantitative and Qualitative Disclosures About Market Risk” for additional information on how foreign currency impacts our financial results.
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Key Operational Metrics
We regularly monitor the below operating metrics in order to measure our current performance and estimate our future performance:
| Year ended December 31, | |||||||||||||||
| 2025 | 2024 | ||||||||||||||
Headcount (approx. at period end) | 65,500 | 59,000 | |||||||||||||
Net revenue retention rate(1) | 113 | % | 102 | % | |||||||||||
(1)“Net revenue retention rate” is an important metric we calculate annually to measure the retention and growth in the use of our services by our existing clients. Our net revenue retention rate as of a given fiscal year is calculated using a measurement period consisting of the two consecutive fiscal years ending with and including the most recent applicable fiscal year. Next, we define our “base cohort” as the population of clients that were using our services during the entire 12-month period of the first year of the measurement period. Net revenue retention rate is calculated as the quotient obtained by dividing (a) the revenue generated by the base cohort in the second year of measurement by (b) the revenue generated by the base cohort in the first year of measurement.
Non-GAAP Financial Measures
We use Adjusted Net Income, Adjusted Earnings Per Share (“EPS”), EBITDA, Adjusted EBITDA, Free Cash Flow and Conversion of Adjusted EBITDA to Free Cash Flow, as key measures to assess the performance of our business.
Each of the measures are not recognized under accounting principles generally accepted in the United States of America ("GAAP") and do not purport to be an alternative to net income or cash flow as a measure of our performance. Such measures have limitations as analytical tools, and you should not consider any of such measures in isolation or as substitutes for our results as reported under GAAP. Additionally, Adjusted Net Income, Adjusted EPS, EBITDA and Adjusted EBITDA exclude items that can have a significant effect on our profit or loss and should, therefore, be used in conjunction with profit or loss for the period. Our management compensates for the limitations of using non-GAAP financial measures by using them to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. Because not all companies use identical calculations, these measures may not be comparable to other similarly titled measures of other companies.
Adjusted Net Income
Adjusted Net Income is a non-GAAP profitability measure that represents net income or loss for the period before the impact of amortization of intangible assets and certain items that are considered to hinder comparison of the performance of our business on a period-over-period basis or with other businesses. During the periods presented, we excluded from Adjusted Net Income amortization of intangible assets, transaction costs, operational efficiency costs, the effect of foreign currency gains and losses, gains and losses on disposals of assets, certain severance costs, certain non-recurring litigation costs, stock-based compensation expense and associated employer payroll tax and the related effect on income taxes of certain pre-tax adjustments, which include costs that are required to be expensed in accordance with GAAP. Our management believes that the inclusion of supplementary adjustments to net income applied in presenting Adjusted Net Income are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.
53
The following table reconciles net income, the most directly comparable GAAP measure, to Adjusted Net Income for the years ended December 31, 2025 and 2024:
| Year ended December 31, | Period over Period Change | |||||||||||||||||||||
| (in thousands, except %) | 2025 | 2024 | ($) | (%) | ||||||||||||||||||
| Net income | $ | 102,275 | $ | 45,870 | $ | 56,405 | 123.0 | % | ||||||||||||||
Amortization of intangible assets | 19,983 | 19,935 | 48 | 0.2 | % | |||||||||||||||||
Transaction costs(1) | 11,899 | — | 11,899 | 100.0 | % | |||||||||||||||||
Operational efficiency costs(2) | 2,383 | — | 2,383 | 100.0 | % | |||||||||||||||||
Foreign currency losses(3) | (8,029) | 1,302 | (9,331) | NM | ||||||||||||||||||
| Loss (gain) on disposal of assets | 525 | (80) | 605 | NM | ||||||||||||||||||
Severance costs(4) | 1,515 | 487 | 1,028 | 211.1 | % | |||||||||||||||||
Litigation costs(5) | — | 15,423 | (15,423) | (100.0) | % | |||||||||||||||||
Stock-based compensation expense(6) | 30,404 | 42,391 | (11,987) | (28.3) | % | |||||||||||||||||
Tax impacts of adjustments(7) | (9,246) | (6,644) | (2,602) | 39.2 | % | |||||||||||||||||
| Adjusted Net Income | $ | 151,709 | $ | 118,684 | $ | 33,025 | 27.8 | % | ||||||||||||||
Net Income Margin(8) | 8.6 | % | 4.6 | % | ||||||||||||||||||
Adjusted Net Income Margin(8) | 12.8 | % | 11.9 | % | ||||||||||||||||||
NM = not meaningful
(1) Represents non-recurring professional service fees related to the take-private transaction that have been expensed during the period.
(2) Represents professional service fees related to certain efforts to enhance efficiency of client delivery and operations support.
(3) Represents the effect of fair market value changes of forward contracts not designated as hedging instruments and remeasurement of U.S. dollar-denominated accounts to foreign currency.
(4) Represents severance payments as a result of certain cost optimization measures we undertook during the period to restructure support roles.
(5) Represents only those litigation costs that are considered non-recurring and outside of the ordinary course of business.
(6) Represents stock-based compensation expense, as well as associated payroll tax.
(7) Represents tax impacts of adjustments to net income which resulted in a tax benefit during the period, including stock-based compensation, transaction costs, operational efficiency costs, litigation costs and severance. After these adjustments, we applied a non-GAAP effective tax rate of 23.9% and 26.4% for the year ended December 31, 2025 and 2024, respectively, to non-GAAP income before income taxes.
(8) Net Income Margin represents net income divided by service revenue and Adjusted Net Income Margin represents Adjusted Net Income divided by service revenue.
Adjusted EPS
Adjusted EPS is a non-GAAP profitability measure that represents earnings available to shareholders excluding the impact of certain items that are considered to hinder comparison of the performance of our business on a period-over-period basis or with other businesses. Adjusted EPS is calculated as Adjusted Net Income divided by our diluted weighted-average number of shares outstanding. Our management believes that the inclusion of supplementary adjustments to earnings per share applied in presenting Adjusted EPS are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.
The following table reconciles GAAP diluted EPS, the most directly comparable GAAP measure, to Adjusted EPS for the years ended December 31, 2025 and 2024:
| Year ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| GAAP diluted EPS | $ | 1.10 | $ | 0.50 | |||||||
Per share adjustments to net income(1) | 0.53 | 0.79 | |||||||||
| Adjusted EPS | $ | 1.63 | $ | 1.29 | |||||||
| Weighted-average common stock outstanding – diluted | 93,025,189 | 92,304,270 | |||||||||
(1) Reflects the aggregate adjustments made to reconcile net income to Adjusted Net Income, as noted in the above table, divided by the GAAP diluted weighted-average number of shares outstanding for the relevant period.
54
EBITDA and Adjusted EBITDA
EBITDA is a non-GAAP profitability measure that represents net income or loss for the period before the impact of the benefit from or provision for income taxes, financing expenses, depreciation, and amortization of intangible assets. EBITDA eliminates potential differences in performance caused by variations in capital structures (affecting financing expenses), tax positions (such as the availability of net operating losses against which to relieve taxable profits), the cost and age of tangible assets (affecting relative depreciation expense) and the extent to which intangible assets are identifiable (affecting relative amortization expense).
Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before certain items that are considered to hinder comparison of the performance of our business on a period-over-period basis or with other businesses. During the periods presented, we excluded from Adjusted EBITDA transaction costs, operational efficiency costs, the effect of foreign currency gains and losses, gains and losses on disposals of assets, certain severance costs, certain non-recurring litigation costs, stock-based compensation expense and associated employer payroll tax and interest income, which include costs that are required to be expensed in accordance with GAAP. Our management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.
The following table reconciles net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA for the years ended December 31, 2025 and 2024:
| Year ended December 31, | Period over Period Change | |||||||||||||||||||||
| (in thousands, except %) | 2025 | 2024 | ($) | (%) | ||||||||||||||||||
| Net income | $ | 102,275 | $ | 45,870 | $ | 56,405 | 123.0 | % | ||||||||||||||
| Provision for income taxes | 34,399 | 28,311 | 6,088 | 21.5 | % | |||||||||||||||||
| Financing expenses | 18,385 | 21,549 | (3,164) | (14.7) | % | |||||||||||||||||
| Depreciation | 41,164 | 40,223 | 941 | 2.3 | % | |||||||||||||||||
| Amortization of intangible assets | 19,983 | 19,935 | 48 | 0.2 | % | |||||||||||||||||
| EBITDA | 216,206 | 155,888 | 60,318 | 38.7 | % | |||||||||||||||||
Transaction costs(1) | 11,899 | — | 11,899 | 100.0 | % | |||||||||||||||||
Operational efficiency costs(2) | 2,383 | — | 2,383 | |||||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-04-02 | Johnson Jarrod | Chief Customer Officer | Sell | -11,406 | $6.89 | -$78,536 |
| 2026-04-01 | Johnson Jarrod | Chief Customer Officer | Sell | -25,000 | $6.78 | -$169,578 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-08-07 10-Q expected by 2026-08-08 (in 74 days)
- ~2026-11-07 10-Q expected by 2026-11-08 (in 166 days)
- ~2027-03-03 10-K expected by 2027-03-13 (in 282 days)
- ~2027-05-07 10-Q expected by 2027-05-08 (in 347 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-05-07 10-Q Quarterly Report
- 2026-04-02 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-03-17 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
- 2026-03-05 10-K Annual Report
- 2026-02-25 8-K Earnings Release; Officer/Director Change; Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
- 2025-11-07 10-Q Quarterly Report
- 2025-11-07 8-K Earnings Release; Financial Statements and Exhibits
- 2025-10-09 8-K Material Agreement Terminated
- 2025-10-08 8-K Shareholder Vote Results; Other Events; Financial Statements and Exhibits
- 2025-10-07 8-K Other Events; Financial Statements and Exhibits
- 2025-09-24 8-K Other Events; Financial Statements and Exhibits
- 2025-09-10 8-K Shareholder Vote Results; Other Events; Financial Statements and Exhibits
- 2025-08-07 10-Q Quarterly Report
- 2025-08-07 8-K Earnings Release; Financial Statements and Exhibits
- 2025-05-12 10-Q Quarterly Report