November 4, 2026
OUR VISION
OUR SOLUTIONS
OUR RESULTS
Digital Customer Experience
Outsourcing reimagined for the innovation age
Trust & Safety
AI Services
+$20mm
Increase in the midpoint of our full-year revenue guidance
~20%
YoY growth excluding our largest client
27.7%
YoY AI Services Revenue Growth in Q3
7.1%
YoY DCX Revenue Growth in Q3
18.8%
Adj. EBITDA Margin1 Q3 2026
5.4%
Year-over-Year
Q3 2026 Rev. Growth
$59.1mm
Q3 2026 Adj. EBITDA1
$314.7mm
Q3 2026
Revenue
1 See appendix for reconciliation to most comparable GAAP measure
$350
Quarterly Revenue & YoY Growth
(in millions)
$325
$300
$275
$250
18.8%
Q3 2026 Adj EBITDA
Margin1
$225
$200
+22%
+24%
+17%
+14%
+10%
+5%
+5%
2025 2026
Q1 '25
$278
Q2 '25
$294
Q3 '25
$299
Q1 '26
$306
Q2 '26
$309
Q4 '25
$313
Q3 '26
$315
Highlights
Delivered record quarterly revenue of ~$315 million (5% YoY growth) and strong Adjusted EBITDA1 of ~$59.1 million (18.8% margin) in Q3, beating midpoint guidance of $301 million in revenue and 18.7% margin
Raised the midpoint of our full year revenue guidance by $20 million to $1.25 billion
Increased our Adjusted Free Cash Flow1 outlook for the third quarter in a row by $5 million to $120 million for the full-year
AIS was our fastest growing service line for the seventh consecutive quarter at ~28% YoY growth, eclipsing
$250 million in trailing twelve-month revenue
DCX again delivered resilient YoY growth of 7.1%, an acceleration versus Q2's 6.4% growth
Excluding our top client, YoY growth from all other clients was robust, accelerating to ~20%, fueled by strong growth from clients two through twenty of ~37%
Q3 again saw strong revenue growth and demand from Autonomous Vehicle, Autonomous Delivery, Robotics, and foundational model technology clients
Strong year-to-date Adjusted Free Cash Flow1 generation of ~$102 million and a Net Debt to Adjusted EBITDA1 ratio of 1.25 times
4
INVESTOR PRESENTATION
1 See appendix for reconciliation to most comparable GAAP measure
01
Service OfferingsQ3 key client wins
DCX: signed new contracts and statements of work to expand the scope of 1) the Sales & Lead generation solutions we provide to multiple companies, including a leading provider of satellite-based internet, a smart home security and automation provider, and an online legal document and business formation services provider, and 2) the
French-language support we provide to a leading provider of on-demand food delivery services.
Trust & Safety: signed 1) a new Financial Crimes & Compliance services contract with a provider of online banking services to small and midsize enterprises, and 2) Content Moderation statements of work with multiple companies, including a leading developer of immersive,
user-generated gaming platforms and a community-focused communication platform developer.
AI Services: signed multiple contracts and statements of work to 1) support a leading developer of robotaxis' multi-city expansion for the second quarter in a row, 2) provide data collection to a leading developer of consumer robotics, and
3) deliver AI Safety solutions to one of the world's leading foundational model developers.
Q3 highlights
~64,700
Headcount as of September 30, 2026
+2.4%
Headcount increase since June 30, 2026
Broad demand across our vertical markets
Emerging growth opportunities in AI Services for Autonomous Vehicles, Autonomous Delivery, & Robotics
Expanding Our Global Footprint32 sites and a fully-functional, scaled work at home solution across 14 countries
Our Headcount
as of September 30, 2026
~64,700
United Kingdom - 1 site
Ireland - WFH
Serbia - WFH
Mexico - 2 sites
Colombia - 5 sites
USA - 1 site
Croatia - 1 site
Greece - 3 sites
Egypt - 1 site
India - 5 sites
Malaysia - 1 site
Japan - WFH
Taiwan - 1 site
Philippines - 11 sites
Work@Home
56%
21%
Digital
Customer Experience
Trust & Safety
AI Services
23%
Note: Percentages based on revenue contribution during the twelve months ended September 30, 2026.
Ever-increasing user expectations and competition necessitate world class customer care. Founded on innovation and a people-first culture, TaskUs delivers excellent CX support consistently for the world's leading brands.
The digital nature of the support we provide allows us to automate a greater portion of these interactions using proprietary AI-powered tools like TaskGPT, support multiple interactions concurrently, and use teammates based in higher margin, offshore markets.
We focus on complex interactions across the customer experience lifecycle - from sales and customer acquisition solutions to
multi-sided marketplace management and order fulfillment to complex technical support - we solve our client's most critical challenges, all while enabling business process, product, and workflow improvements.
56%
TTM 9/26 Revenue
$693mm
SOLUTIONS
Omni-Channel Care
Sales & Customer Success
Technical Support
Learning Experience Services
New Product or Market Launches
Consulting Services
Content Moderation
User generated content is growing at an exponential rate. Wherever content is created by users, platforms must review and enforce policy guidelines to protect their communities. Today, TaskUs teammates review content posted by users and advertisers across these social networks as well as dating apps, job sites, and marketplaces.
Financial Crime & Compliance
TaskUs solves for two growing problems faced by tech disruptors: the reputational risks posed by new forms of online fraud and financial crime and the cost of complying with increasing regulatory complexity. TaskUs Financial Crime + Compliance supports clients processes including chargebacks and disputes, anti-money laundering, transaction monitoring, digital identity verification, know your customer, sanctions screening, anti-fraud, and negative social media monitoring.
23%
TTM 9/26 Revenue
$289mm
SOLUTIONS
AI Safety & Policy development
Tools & innovation
FinCrime & compliance
Fighting fraud
Resiliency studio
Digital identity
In our Al Services service line, our teammates collect, annotate, and evaluate data to create the raw materials that artificial intelligence solutions, such as autonomous vehicles, robotics, large language models and multimodal generative Al, are built on. Nearly every Al application being built today requires these human-in-the-loop services that we offer through our professional annotators and gig workers from our TaskVerse platform. We also provide expert response writing, ranking and scoring, prompt review, and adversarial testing for our GenAl clients. We leverage technology, automation, and advanced instructional design and QA processes to optimize results for our clients.
Independent FCroenetlarancteorr CNrootwimde
AI Services Workforce Spectrum
Dedicated Part-time
In-center and Work from Home FTE
commitment
High Flexibility, Scalability
High Complexity, Security
21%
TTM 9/26 Revenue
$261mm
SOLUTIONS
Autonomous vehicles
Advanced robotics
Generative AI
Optical character recognition compliance tracking
Object identification & classification
Speech to text & contextual annotation
02
Why We Win & Growth Strategies ExpertiseSpecialization not scale. We specialize in the unique innovative industry segments of our clients. We identify emerging demand for specialized services and build teams of experts, processes, and tools for each segment.
SpeedCulture
Our clients are growing exponentially. So we are agile, flexible, and responsive. We believe in low bureaucracy operations in which the team is empowered to deliver for clients.
Our mantra is "Frontline First." We have built a culture that feels much more like our tech clients than the service providers we compete with.
Client highlights
~200 global clients
4 of the world's leading LLM developers
#1 audio and #1 video subscription platforms
4 out of 5 of the world's largest social platforms
3 of the top 4 on-demand delivery platforms
World's largest healthcare company
5 leading brands in AV & Robotics
Note: Client highlights as of year end 2025
Target markets
Gaming
Social Media Retail & eCommerce Entertainment &
Travel
Streaming Media Mobility, Logistics &
Technology & Generative AI
Autonomous Vehicles & Robotics
Insurance Financial Services
Healthcare
Agentic AI
Implementing AI agents to autonomously resolve contacts by understanding context and taking action
AI for Teammates
Deploying AI to support our Teammates in serving our clients and building custom solutions for clients
AI for Internal Automation
Using AI for TaskUs' back office processes - recruiting, WFM, QA, BIDS, employee HR support
Maestro
Consultative Capabilities for Systems & Data Integration
Companies Building the Future need New Types of Services
Advanced AI Safety
Adversarial Red Teaming
Rigorous stress-testing to identify vulnerabilities and prevent high-risk policy violations.
Guardrail & Policy Design
Building robust frameworks to mitigate bias, toxicity, and large-scale misinformation.
Human-Centric Alignment
Expert RLHF and verification to ensure model grounding and safe, accurate completions.
AV, AD & Robotics
High-Fidelity Training Data Powering physical AI with 3D sensor fusion and egocentric human activity capture.
Real-Time Remote Assistance Expert human-in-the-loop interventions to navigate complex edge cases and protect assets.
Holistic Operator Resilience Predictive fatigue management and 24/7 clinical support for high-stakes safety.
Agentic CX
Hybrid Ecosystem Management Blending AI agents with human expertise to resolve complex customer issues.
Intelligent Front-Line Resolution Instantly resolving high-volume, routine tasks across digital and voice channels to eliminate wait times.
Proactive CX Transformation Identifying cross-sell opportunities and surfacing insights to turn cost centers into value centers.
01
Reimagine our Business for the AI Era
We are positioning TaskUs to be an AI-Winner by investing in services focused on developers of GenAI and foundation model technologies. We are launching an AI consulting practice to partner with leading agentic AI companies. We will automate customer interactions and leverage our workflow expertise to facilitate the product integration and model training required to realize the promise of these technologies across disparate client platforms. By reselling, implementing, and maintaining these tools we will create an enduring revenue stream.
Focus on the Complex
We are expanding our Specialized Services by moving up the value chain into services and industries that are AI-resistant or where we can displace incumbent providers who are slow or unwilling to embrace AI-centric solutions. We are combining innovative technology partnerships with our talented teammates to grow our most complex solutions.
02
Diversify our Client Base and Verticals
We are deepening our expertise and expanding our reach with enterprise clients in regulated industries such as Financial Services and Healthcare, all while maintaining our leadership servicing the world's high-growth technology brands. Here we are investing in sales, operational, technology, and client service talent.
03
Take Share From Competitors
We see meaningful opportunities to take market share from competitors through operational excellence and the use of AI tools to drive efficiencies into our operations and back-office processes. We are playing offense in order to capture a larger share of demand for specialized services not by being the cheapest, but by being the best.
04
Strong Track Record of Sales Wins Across New and Existing ClientsTotal Win Rate ($ basis) as %1
New Clients Won (#)
> $10M Clients2
60%
53%
47%
56%
47
21
39
34 17 17
55%
50%
45%
40%
2023
2024
2025
2023 2024
2025
2023 2024
2025
1 Total Win Rate included opportunities from both New and Existing Clients
2 Based on revenue contribution
03
Financial Performance Specialized Services Revenue ProfileRevenue by service line (%)
Revenue by delivery geography (%)
$924mm
$995mm
$1,184mm
$1,243mm
Digital Customer Experience
Trust + Safety
AI Services
$924mm
$995mm
$1,184mm
$1,243mm
Philippines
United States
India
Rest of world
Adjusted EBITDA1
Adjusted Net Income1 USD Million
Margin (%)1
23.9%
19.0%
21.0%
21.1%
$221
$210
$249
$237
Margin (%)1
13.7%
10.6%
11.9%
12.8%
Adjusted EBITDA1
Adjusted Net Income1
$127
$119
$152
$132
2023
2024
2025
TTM 9/26
2023
2024
2025
TTM 9/26
1 See appendix for reconciliation to most comparable GAAP measure
Adjusted EBITDA
Conversion
%1
59.3%
$131
51.2%
36.1%
48.4%
$115
1.3
Adjusted Free Cash Flow1
$107
$90
Net Debt to Adjusted EBITDA1
Leverage Ratio
0.6
0.3
0.1
2023
2024
2025
TTM 9/26
2023 2024
2025
TTM 9/262
1 See appendix for reconciliation to most comparable GAAP measure 2 Reflects the impact of our Q1 2026 refinancing and one-time, $3.65 per share dividend.
CY 2025
$1.184 billion
Revenue
+19.0%
Revenue Increase YoY
21.0%
Adj. EBITDA Margin1
Q3 2026
$315 million
Revenue
+5.4%
Revenue Increase YoY
18.8%
Adj. EBITDA Margin1
Increasingly diversified revenue base
Consistent track record of profitability
Significant operating leverage Strong free cash flow Investing for an AI-led future
1 See appendix for reconciliation to most comparable GAAP measure
USD Millions
2026 Outlook1, 2
Q4 Full Year
Revenue
Change in midpoint versus prior guidance Revenue growth (YoY) at midpoint Adjusted EBITDA Margin1
Adjusted Free Cash Flow2
Change in midpoint versus prior guidance
$319 to $321 N/A 2.3%
~19.5%
N/A N/A
$1,249 to $1,251
+$20 or ~1.6% 5.6%
~19.0%
$115 to $125
+5 or ~4.3%
1 Financial outlook provided as of November 4, 2026 as part of TaskUs' Q2 2026 earnings call. With respect to the non-GAAP Adjusted EBITDA margin outlook provided above, a reconciliation to the closest GAAP financial measure has not been provided as the quantification of certain items included in the calculation of GAAP net income (loss) cannot be calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price that are not currently ascertainable, and the non-GAAP adjustment for foreign currency gains or losses depends on the timing and magnitude of changes in foreign currency exchange rates and cannot be accurately forecasted. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results.
2 Adjusted Free Cash Flow is calculated as net cash provided by operating activities in the period minus cash used for purchase of property and equipment in the period, excluding certain non-recurring adjustments. At the midpoint of our guidance, net cash provided by operating activities for the full year 2026 is expected to be approximately
$165 million and purchase of property and equipment is expected to be approximately $45 million. Our Adjusted Free Cash Flow guidance and expected net cash provided by operating activities excludes the impact of certain costs, which are non-recurring and outside the ordinary course of business, due to the unpredictability of the costs and timing of payments.
04 Appendix
Adjusted EBITDA
USD Thousand
Three months ended September 30,
Nine months ended September 30,
2025 | 2026 | 2025 | 2026 | |
Net income | $ 31,375 | $ 26,215 | $ 72,570 | $ 72,516 |
Provision for income taxes | 10,346 | 6,195 | 25,953 | 25,669 |
Financing expenses | 4,627 | 8,929 | 13,925 | 23,032 |
Depreciation | 10,553 | 12,318 | 30,423 | 34,941 |
Amortization of intangible assets | 5,005 | 5,001 | 14,978 | 15,011 |
EBITDA | $ 61,906 | $ 58,658 | $ 157,849 | $ 171,169 |
Transaction costs | 1,829 | - | 11,993 | 1,146 |
Operational efficiency costs | 881 | - | 2,108 | - |
Foreign currency gains | (6,678) | (3,553) | (5,229) | (13,010) |
Loss (gain) on disposal of assets | 95 | 180 | (49) | 2,729 |
Severance costs | 362 | 670 | 1,197 | 1,685 |
Stock-based compensation expense | 6,513 | 4,207 | 24,159 | 14,917 |
Interest income | (1,456) | (1,053) | (4,352) | (3,298) |
Adjusted EBITDA | $ 63,452 | $ 59,109 | $ 187,676 | $ 175,338 |
Net Income Margin | 10.5% | 8.3% | 8.3% | 7.8% |
Adjusted EBITDA Margin | 21.2% | 18.8% | 21.6% | 18.9% |
Adjusted Net Income
USD Thousand
Three months ended September 30,
Nine months ended September 30,
2025 | 2026 | 2025 | 2026 | |
Net income | $ 31,375 | $ 26,215 | $ 72,570 | $ 72,516 |
Amortization of intangible assets | 5,005 | 5,001 | 14,978 | 15,011 |
Transaction costs Operational efficiency costs | 1,829 881 | - - | 11,993 2,108 | 1,146 - |
Foreign currency gains | (6,678) | (3,553) | (5,229) | (13,010) |
Loss (gain) on disposal of assets | 95 | 180 | (49) | 2,729 |
Severance costs | 362 | 670 | 1,197 | 1,685 |
Stock-based compensation expense | 6,513 | 4,207 | 24,159 | 14,917 |
Tax impacts of adjustments | (392) | (1,445) | (7,102) | (334) |
Adjusted Net Income | $ 38,990 | $ 31,275 | $ 114,625 | $ 94,660 |
Net Income Margin | 10.5% | 8.3% | 8.3% | 7.8% |
Adjusted Net Income Margin | 13.1% | 9.9% | 13.2% | 10.2% |
Three months
ended
Sep 30,
tember
Nine months ended September 30,
Adjusted earnings per share
2025 | 2026 | 2025 | 2026 | |
GAAP diluted EPS | $ 0.34 | $ 0.28 | $ 0.78 | $ 0.78 |
Per share adjustments to net income | 0.08 | 0.06 | 0.45 | 0.24 |
Adjusted EPS | $ 0.42 | $ 0.34 | $ 1.23 | $ 1.02 |
Weighted-average common stock outstanding - Diluted | 93,057,417 | 93,337,979 | 93,096,587 | 92,975,915 |
Free Cash Flow and Adjusted Free Cash Flow
Three months ended September 30,
USD Thousand
Nine months ended September 30,
2025 | 2026 | 2025 | 2026 | |
Adjusted EBITDA | $ 63,452 | $ 59,109 | $ 187,676 | $ 175,338 |
Net cash provided by operating activities | $ 54,264 | $ 30,679 | $ 107,549 | $ 120,091 |
Purchase of property and equipment | (12,302) | (8,655) | (43,753) | (29,362) |
Free Cash Flow | $ 41,962 | $ 22,024 | $ 63,796 | $ 90,729 |
Payment for transaction costs | 642 | 642 | 3,189 | 6,999 |
Payment for liability stock-based compensation awards | - | 310 | - | 3,761 |
Payment for litigation costs | 4,502 | - | 7,850 | - |
Payment for operational efficiency costs | 881 | - | 2,108 | 137 |
Adjusted Free Cash Flow | $ 47,987 | $ 22,976 | $ 76,943 | $101,626 |
Conversion of Adjusted EBITDA to Free Cash Flow | 66.1% | 37.3% | 34.0% | 51.7% |
Conversion of Adjusted EBITDA to Adjusted Free Cash Flow
75.6% 38.9% 41.0% 58.0%
USD Thousand
Nine months ended September 30, | Year ended December 31, | Nine months ended September 30, | TTM Q3'26 | |
2025 | 2025 | 2026 | 2026 | |
Revenue by Service Offering | ||||
Digital Customer Experience | $ 489,153 | $ 661,899 | $ 520,102 | $ 692,848 |
Trust and Safety | 224,737 | 307,430 | 206,763 | 289,456 |
AI Services | 156,701 | 214,218 | 203,003 | 260,520 |
Service revenue | $ 870,591 | $ 1,183,547 | $ 929,868 | $ 1,242,824 |
Revenue by Geographical Location Philippines | $ 472,850 | $ 638,042 | $ 471,095 | $ 636,287 |
United States | 97,924 | 132,058 | 144,760 | 178,894 |
India | 111,480 | 153,766 | 119,408 | 161,694 |
Rest of World | 188,337 | 259,681 | 194,605 | 265,949 |
Service revenue | $ 870,591 | $ 1,183,547 | $ 929,868 | $ 1,242,824 |
Nine months ended September 30,
Year ended December 31,
Nine months ended September 30,
TTM Q3'26
Non-GAAPReconciliation
Adjusted EBITDA Trailing Twelve Month (TTM) Data
2025 2025 2026 2026
Service Revenue $ 870,591 $ 1,183,547 $ 929,868 $ 1,242,824
Net income $ 72,570 $ 102,275 $ 72,516 $ 102,221
Provision for income taxes 25,953 34,399 25,669 34,115
Financing expenses 13,925 18,385 23,032 27,492
Depreciation 30,423 41,164 34,941 45,682
Amortization of intangible assets 14,978 19,983 15,011 20,016
EBITDA $ 157,849 $ 216,206 $ 171,169 $ 229,526
Transaction costs 11,993 11,899 1,146 1,052
Operational efficiency costs 2,108 2,383 - 275
Foreign currency gains (5,229) (8,029) (13,010) (15,810)
Loss (gain) on disposal of assets (49) 525 2,729 3,303
Severance costs 1,197 1,515 1,685 2,003
Stock-based compensation expense 24,159 30,404 14,917 21,162
Interest income (4,352) (5,829) (3,298) (4,775)
Adjusted EBITDA $ 187,676 $ 249,074 $ 175,338 $ 236,736
Net Income Margin 8.3% 8.6% 7.8% 8.2%
Adjusted EBITDA Margin 21.6% 21.0% 18.9% 19.0%
Non-GAAPReconciliation
Adjusted Net Income Trailing Twelve Month (TTM) Data
Nine months ended September 30, | Year ended December 31, | Nine months ended September 30, | TTM Q3'26 | |
2025 | 2025 | 2026 | 2026 | |
Service revenue | $ 870,591 | $ 1,183,547 | $ 929,868 | $ 1,242,824 |
Net income | $ 72,570 | $ 102,275 | $ 72,516 | $ 102,221 |
Amortization of intangible assets | 14,978 | 19,983 | 15,011 | 20,016 |
Transaction costs | 11,993 | 11,899 | 1,146 | 1,052 |
Operational efficiency costs | 2,108 | 2,383 | - | 275 |
Foreign currency gains | (5,229) | (8,029) | (13,010) | (15,810) |
Loss (gain) on disposal of assets | (49) | 525 | 2,729 | 3,303 |
Severance costs | 1,197 | 1,515 | 1,685 | 2,003 |
Stock-based compensation expense | 24,159 | 30,404 | 14,917 | 21,162 |
Tax impacts of adjustments | (7,102) | (9,246) | (334) | (2,478) |
Adjusted Net Income | $ 114,625 | $ 151,709 | $ 94,660 | $ 131,744 |
Net Income Margin | 8.3% | 8.6% | 7.8% | 8.2% |
Adjusted Net Income Margin | 13.2% | 12.8% | 10.2% | 10.6% |
Trailing Twelve Month (TTM) Data
USD Thousand
Conversion of Adjusted EBITDA to Free Cash Flow
Nine months ended September 30, | Year ended December 31, | Nine months ended September 30, | TTM Q3'26 | |
2025 | 2025 | 2026 | 2026 | |
Adjusted EBITDA | $ 187,676 | $ 249,074 | $ 175,338 | $ 236,736 |
Net cash provided by operating activities | $ 107,549 | $ 137,215 | $ 120,091 | $ 149,757 |
Purchase of property and equipment | (43,753) | (63,500) | (29,362) | (49,109) |
Free Cash Flow | $ 63,796 | $ 73,715 | $ 90,729 | $ 100,648 |
Payment for transaction costs | 3,189 | 6,046 | 6,999 | 9,856 |
Payment for liability stock-based compensation awards | - | - | 3,761 | 3,761 |
Payment for litigation costs | 7,850 | 7,850 | - | - |
Payment for operational efficiency costs | 2,108 | 2,246 | 137 | 275 |
Adjusted Free Cash Flow | $ 76,943 | $ 89,857 | $101,626 | $ 114,540 |
34.0% | 29.6% | 51.7% | 42.5% |
41.0% | 36.1% | 58.0% | 48.4% |
Conversion of Adjusted EBITDA to Adjusted Free Cash Flow
2023 | 2024 | 2025 | |
Net Income | $ 45,690 | $ 45,870 | $ 102,275 |
Provision for income taxes | 29,342 | 28,311 | 34,399 |
Financing expenses | 21,717 | 21,549 | 18,385 |
Depreciation | 40,391 | 40,223 | 41,164 |
Amortization of intangible assets | 20,346 | 19,935 | 19,983 |
EBITDA | $ 157,486 | $ 155,888 | $ 216,206 |
Transaction costs | 245 | - | 11,899 |
Earn-out consideration | 7,863 | - | - |
Operational efficiency costs | - | - | 2,383 |
Foreign currency losses (gains) | 431 | 1,302 | (8,029) |
Loss (gain) on disposal of assets | 1,322 | (80) | 525 |
Severance costs | 1,852 | 487 | 1,515 |
Litigation costs | - | 15,423 | - |
Stock-based compensation expense | 53,179 | 42,391 | 30,404 |
Interest income | (1,581) | (5,544) | (5,829) |
Adjusted EBITDA | $ 220,797 | $ 209,867 | $ 249,074 |
Net Income Margin | 4.9% | 4.6% | 8.6% |
Adjusted EBITDA Margin | 23.9% | 21.1% | 21.0% |
Year ended December 31,
Year ended December 31,
2023 | 2024 | 2025 | |
Net Income | $ 45,690 | $ 45,870 | $ 102,275 |
Amortization of intangible assets | 20,346 | 19,935 | 19,983 |
Transaction costs | 245 | - | 11,899 |
Earn-out consideration | 7,863 | - | - |
Operational efficiency costs | - | - | 2,383 |
Foreign currency losses (gains) | 431 | 1,302 | (8,029) |
Loss (gain) on disposal of assets | 1,322 | (80) | 525 |
Severance costs | 1,852 | 487 | 1,515 |
Litigation costs | - | 15,423 | - |
Stock-based compensation expense | 53,179 | 42,391 | 30,404 |
Tax impacts of adjustments | (4,386) | (6,644) | (9,246) |
Adjusted Net Income | $ 126,542 | $ 118,684 | $ 151,709 |
Net Income Margin | 4.9% | 4.6% | 8.6% |
Adjusted Net Income Margin | 13.7% | 11.9% | 12.8% |
USD Thousand
Year ended December 31,
2023 | 2024 | 2025 | |
Adjusted EBITDA | $ 220,797 | $ 209,867 | $ 249,074 |
Net cash provided by operating activities | $ 143,670 | $ 138,888 | $ 137,215 |
Purchase of property and equipment | (30,995) | (39,104) | (63,500) |
Free Cash Flow | $ 112,675 | $ 99,784 | $ 73,715 |
Payment for earn-out consideration | 18,341 | - | - |
Payment for transaction costs | - | - | 6,046 |
Payment for litigation costs | - | 7,573 | 7,850 |
Payment for operational efficiency costs | - | 2,246 | |
Adjusted Free Cash Flow | $ 131,016 | $ 107,357 | $ 89,857 |
Conversion of Adjusted EBITDA to Free Cash Flow | 51.0% | 47.5% | 29.6% |
Conversion of Adjusted EBITDA to Adjusted Free Cash Flow | 59.3% | 51.2% | 36.1% |
Definitions of Non-GAAP Metrics
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 businesses on a period-over-period basis or with other businesses. During the periods presented, we excluded from Adjusted EBITDA transaction costs, earn-out consideration, 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.
Adjusted EBITDA Margin represents Adjusted EBITDA divided by service revenue.
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 businesses 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, earn-out consideration, 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.
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.
Free Cash Flow
Free Cash Flow is a non-GAAP liquidity measure that represents our ability to generate additional cash from our business operations. Free Cash Flow is calculated as net cash provided by operating activities in the period minus cash used for purchase of property and equipment in the period. Our management believes that the inclusion of this non-GAAP measure, when considered with our GAAP results, provides management and investors with an additional understanding of our ability to generate additional cash for ongoing business operations and other capital deployment.
Adjusted Free Cash Flow is a non-GAAP liquidity measure that represents Free Cash Flow before the payments for earn-out consideration, transaction costs, operational efficiency costs, liability stock-based compensation awards and certain litigation costs, that are considered non-recurring and outside of the ordinary course of business, which would hinder comparison of the performance of our business on a period-over-period basis or with other businesses. Our management believes that the inclusion of these supplementary adjustments to Free Cash Flow are appropriate to provide additional information to investors about these unusual items that we do not expect to continue at the same level in the future.
Conversion of Adjusted EBITDA to Free Cash Flow represents Free Cash Flow divided by Adjusted EBITDA. Conversion of Adjusted EBITDA to Adjusted Free Cash Flow represents Adjusted Free Cash Flow divided by Adjusted EBITDA.
Shape The Future Of Enterprise With Us38 INVESTOR PRESENTATION
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