Key Highlights

● Second-quarter service revenue was $308.9 million, up 5.0%.

● Adjusted EBITDA was $57.7 million, an 18.7% margin, down 11.2%.

● Total debt rose from about $241.4 million to roughly $492.0 million.

● The company distributed $332.8 million, described as a special dividend.

TaskUs, Inc. (NASDAQ:TASK) provides outsourced digital services, including trust and safety, customer support and AI-related data work. Its balance sheet changed notably in the first half of 2026: a March refinancing brought in $500 million of new borrowings, and the company distributed $332.8 million, described in the release's footnotes as a special dividend. Total debt was about $492 million at the end of June.

Latest Company Context

Second-quarter service revenue was $308.9 million, up 5.0% year over year. Net income was $22.0 million, up 9.6%, and diluted EPS was $0.24. Adjusted EBITDA was $57.7 million, an 18.7% margin, down 11.2% from the prior year, and adjusted EPS was $0.33 compared with $0.43. Free cash flow was $32.6 million, and adjusted free cash flow was $36.4 million.

Cash was $180.3 million, down from $211.7 million at year-end, with an additional $100.0 million of undrawn revolving capacity. Debt rose from about $241.4 million to roughly $492.0 million. No shares were repurchased in the first half, compared with $27.8 million a year earlier.

Key Business and Index Drivers

The company said revenue growth from clients other than its largest was strong, in the mid-teens, though the release did not give the largest client's revenue share. Third-quarter revenue is guided at $300 million to $302 million, about 0.8% growth at the midpoint, with an adjusted EBITDA margin near 18.7%. Full-year guidance is revenue of $1.22 billion to $1.24 billion, about 3.9% growth, an adjusted EBITDA margin near 19.0%, and adjusted free cash flow of $110 million to $120 million. These are management expectations.

The higher debt balance increases interest costs, which may influence earnings even if operations are stable. Falling adjusted EBITDA margin shows cost pressure, while the shift to a lower-growth third quarter implies the first-half pace may not be sustained. The company has no confirmed index membership.

What Investors Should Watch

The third-quarter report, whose date is unconfirmed, will test the guided revenue of about $300 million to $302 million and the margin outlook. Investors may watch whether growth outside the largest client continues at a mid-teens pace and whether that offsets slower trends elsewhere.

Other considerations include free cash flow against the annual guidance, the pace of debt repayment versus other uses of cash, and any restart of repurchases. The influence of artificial intelligence on outsourced services is also relevant, both as a source of new data and annotation work and as a potential substitute for some customer support tasks. Interest rate exposure on the new borrowings may also affect results.

Debt service is the practical consequence of the new structure. With total borrowings near $492 million, annual interest costs are meaningfully higher than when debt was about $241 million, and the effect should be visible in net income and adjusted EPS comparisons. At the same time, adjusted free cash flow guidance of $110 million to $120 million gives a reference point for how quickly the company might reduce borrowings if it chooses to prioritize that over other uses of cash.

A More Leveraged Balance Sheet and Slower Growth

TaskUs enters the second half with modest growth, a lower margin than a year ago and a more leveraged balance sheet following its refinancing and special distribution. Cash generation and undrawn liquidity offer flexibility, while the guidance suggests growth may slow near term.