TaskUs, Inc.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
TASK$9.09-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0001829864-25-000082
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001829864-25-000118
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 95 previous paragraphs and 130 current paragraphs.
58 unchanged; 26 reworded; 31 added; 11 removed; 0 previous and 15 current paragraphs rearranged.
Tables are not compared: 9 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
2025 Developments
Current report
AI Investments
Current report
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.
Current report
Merger Agreement
Current report
On May 8, 2025, the Company entered into an Agreement and Plan of Merger (as it may be amended from time to time, the “Merger Agreement”) to be acquired by an affiliate of Blackstone, the Company’s Co-Founder and Chief Executive Officer, Bryce Maddock, and the Company’s Co-Founder and President, Jaspar Weir (collectively, the “Buyer Group”), pursuant to which the Buyer Group agreed to acquire 100% of the outstanding shares of the Company’s Class A common stock that it does not already own (the “Merger”). Pursuant to the Merger Agreement and subject to the satisfaction or waiver of certain closing conditions and on the terms set forth therein, Company stockholders are to receive $16.50, in cash, per share. The corporation surviving the Merger (the “Surviving Company”) will be collectively owned, directly or indirectly, by (i) BCP FC Aggregator L.P., (ii) The Maddock 2015 Irrevocable Trust, The Bryce Maddock Family Trust, The Maddock 2015 Exempt Irrevocable Trust and Bryce Maddock, (iii) The Weir 2015 Irrevocable Trust, The Jaspar Weir Family Trust, The Weir 2015 Exempt Irrevocable Trust and Jaspar Weir (the stockholders described in clauses (i)-(iii), collectively, the “Continuing Stockholders”) and (iv) the other holders of Continuing Shares (as defined in the Merger Agreement) (if any).
Current report
Completion of the Merger is subject to certain closing conditions and approvals, including the receipt of required regulatory and stockholder approvals (including the approval of the holders of common stock of the Company not owned by the Buyer Group). The Merger Agreement also includes certain covenants of the Company, including with respect to the non-solicitation of alternative acquisition proposals, as well as other customary representations, warranties and covenants by the Company and Breeze Merger Corporation, a Delaware corporation (the “Merger Corporation”). Completion of the Merger is not subject to a financing condition.
Current report
On July 1, 2025, the Company filed a preliminary proxy statement with the SEC in connection with a special meeting of the stockholders of the Company to consider and vote on the Merger and related matters. Subsequently, the Company filed an amendment to the preliminary proxy statement on July 31, 2025.
Current report
The Merger is expected to close in the second half of 2025. Upon completion, the Company’s common stock will no longer be listed on any public market.
Current report
For the three months ended June 30, 2025, we recorded service revenue of $294.1 million, a 23.6% increase from $237.9 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, we recorded service revenue of $571.9 million, a 22.9% increase from $465.4 million for the six months ended June 30, 2024.
Current report
Net income for the six months ended June 30, 2025 increased to $41.2 million from $24.3 million for the six months ended June 30, 2024. This increase is due primarily to revenue growth, partially offset by higher cost of services and selling, general and administrative expense. Adjusted Net Income for the six months ended June 30, 2025 increased 35.3% to $75.6 million from $55.9 million for the six months ended June 30, 2024. Adjusted EBITDA for the six months ended June 30, 2025 increased 22.0% to $124.2 million from $101.9 million for the six months ended June 30, 2024.
Current report
AI Services was primarily driven by an increase from existing clients, primarily in Social Media and On Demand Travel + Transportation, as well as new clients in Social Media.
Current report
Philippines: AI Services contributed 8.1% of the total increase primarily driven by clients in Social Media and On Demand Travel + Transportation. Digital Customer Experience contributed 5.8% of the total increase primarily driven by clients in Technology, Financial Services and Healthcare, partially offset by clients in On Demand Travel + Transportation and Retail + E-Commerce. Trust + Safety contributed 1.9% of the total increase primarily driven by clients in Social Media.
Current report
The increase was primarily driven by transaction costs of $10.2 million and operational efficiency costs of $0.9 million. The remaining increase includes higher personnel costs of $1.9 million associated with increased headcount, including a $2.6 million reduction in stock-based compensation expense. These increases were partially offset by a reduction of litigation costs of $2.3 million.
Current report
Comparison of the Six Months Ended June 30, 2025 and 2024
Current report
Service revenue
Current report
Service revenue by service offering
Current report
Service revenue by delivery geography
Current report
United States: AI Services contributed 24.5% of the total increase primarily driven by clients in Social Media. Trust + Safety contributed 5.6% of the total increase primarily driven by clients in Social Media. These increases were partially offset by a 1.1% decrease contributed by Digital Customer Experience primarily driven by clients in Technology, partially offset by clients in On Demand Travel + Transportation.
Current report
India: Digital Customer Experience contributed 15.9% of the total increase primarily driven by clients in Retail + E-Commerce, On Demand Travel + Transportation and Healthcare, partially offset by clients in Financial Services. AI Services contributed 11.3% of the total increase primarily driven by clients in Social Media. These increases were partially offset by a 3.0% decrease contributed by Trust + Safety primarily driven by clients On Demand Travel + Transportation, partially offset by clients in Retail + E-Commerce.
Current report
Operating expenses
Current report
Cost of services
Current report
Selling, general and administrative expense
Current report
The increase was primarily driven by transaction costs of $10.2 million and operational efficiency costs of $1.2 million. The remaining increase includes higher personnel costs of $5.0 million associated with increased headcount, including a $3.6 million reduction in stock-based compensation expense, and employee engagement expenses. These increases were partially offset by a reduction of litigation costs of $2.6 million.
Current report
Other income, net
Current report
Financing expenses
Current report
Provision for income taxes
Current report
(3) Realized and unrealized foreign currency losses and gains include 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.
Current report
The following table reconciles net income, the most directly comparable GAAP measure, to Adjusted Net Income for the six months ended June 30, 2025 and 2024:
Current report
(3) Realized and unrealized foreign currency losses and gains include 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.
Current report
(3) Realized and unrealized foreign currency losses and gains include 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.
Current report
(3) Realized and unrealized foreign currency losses and gains include 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.
Removed paragraphs (11)
Previous report
For the three months ended March 31, 2025, we recorded service revenue of $277.8 million, a 22.1% increase from $227.5 million for the three months ended March 31, 2024.
Previous report
(1) Represents professional service fees related to certain efforts to enhance efficiency of client delivery and operations support.
Previous report
(2) Realized and unrealized foreign currency losses include 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.
Previous report
(3) Represents severance payments as a result of certain cost optimization measures we undertook during the period to restructure support roles.
Previous report
(4) Represents only those litigation costs that are considered non-recurring and outside of the ordinary course of business.
Previous report
(5) Represents stock-based compensation expense, as well as associated payroll tax.
Previous report
(1) Represents professional service fees related to certain efforts to enhance efficiency of client delivery and operations support.
Previous report
(2) Realized and unrealized foreign currency losses include 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.
Previous report
(3) Represents severance payments as a result of certain cost optimization measures we undertook during the period to restructure support roles.
Previous report
(4) Represents only those litigation costs that are considered non-recurring and outside of the ordinary course of business.
Previous report
(5) Represents stock-based compensation expense, as well as associated payroll tax.
Reworded paragraphs (26)
Previous wording
This Quarterly 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 results of operations and financial condition for the three months ended March 31, 2025 and 2024.
Current wording
This Quarterly 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 results of operations and financial condition for the three and six months ended June 30, 2025 and 2024.
Previous wording
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.
Current wording
Our global, omnichannel delivery model is focused on providing our clients with three key services – Digital Customer Experience, Trust + Safety, and Artificial Intelligence ("AI") Services.
Previous wording
Net income for the three months ended March 31, 2025 increased to $21.1 million from $11.7 million for the three months ended March 31, 2024. This increase is due primarily to revenue growth, partially offset by higher cost of services and selling, general and administrative expense. Adjusted Net Income for the three months ended March 31, 2025 increased 31.8% to $35.9 million from $27.3 million for the three months ended March 31, 2024. Adjusted EBITDA for the three months ended March 31, 2025 increased 17.1% to $59.3 million from $50.6 million for the three months ended March 31, 2024. Adjusted Net Income and Adjusted EBITDA are non-GAAP financial measures. For definitions and reconciliations to net income, the most directly comparable measure in accordance with GAAP, see "Non-GAAP Financial Measures."
Current wording
Net income for the three months ended June 30, 2025 increased to $20.0 million from $12.6 million for the three months ended June 30, 2024. This increase is due primarily to revenue growth, partially offset by higher cost of services and selling, general and administrative expense. Adjusted Net Income for the three months ended June 30, 2025 increased 38.6% to $39.7 million from $28.6 million for the three months ended June 30, 2024. Adjusted EBITDA for the three months ended June 30, 2025 increased 26.7% to $65.0 million from $51.3 million for the three months ended June 30, 2024. Adjusted Net Income and Adjusted EBITDA are non-GAAP financial measures. For definitions and reconciliations to net income, the most directly comparable measure in accordance with GAAP, see "Non-GAAP Financial Measures."
Previous wording
United States: AI Services contributed 25.3% of the total increase driven by clients in Social Media. Trust + Safety contributed 6.1% of the total increase driven by clients in Social Media. The increase was partially offset by a 1.6% decrease contributed by Digital Customer Experience, primarily driven by clients in Technology.
Current wording
United States: AI Services contributed 23.9% of the total increase primarily driven by clients in Social Media and On Demand Travel + Transportation. Trust + Safety contributed 4.9% of the total increase primarily driven by clients in Social Media. The increase was partially offset by a 0.6% decrease contributed by Digital Customer Experience primarily driven by clients in Technology, partially offset by clients in On Demand Travel + Transportation.
Previous wording
India: AI Services contributed 12.0% of the total increase primarily driven by clients in Social Media. Digital Customer Experience contributed 11.5% of the total increase primarily driven by clients in Retail + E-Commerce, partially offset by clients in Financial Services. The increase was partially offset by a 0.9% decrease contributed by Trust + Safety, primarily driven by clients in On Demand Travel + Transportation.
Current wording
India: Digital Customer Experience contributed 20.3% of the total increase primarily driven by clients in Retail + E-Commerce and On Demand Travel + Transportation. AI Services contributed 10.6% of the total increase primarily driven by clients in Social Media. The increase was partially offset by a 5.1% decrease contributed by Trust + Safety primarily driven by clients in On Demand Travel + Transportation.
Previous wording
The increase was primarily driven by higher personnel costs of $27.8 million associated with increased headcount. The remaining increase included facilities and recruiting costs associated with site expansion and increasing headcount associated with accelerating growth.
Current wording
The increase was primarily driven by higher personnel costs of $32.5 million associated with increased headcount. The remaining increase included facilities costs associated with site expansion.
Previous wording
Changes are driven by our exposure to foreign currency exchange risk resulting from our operations in foreign geographies, primarily the Philippines, including economic hedges using foreign currency exchange rate forward contracts, as well as higher interest income. See Part I, Item 3., "Quantitative and Qualitative Disclosures About Market Risk" in this Quarterly Report for additional information on how foreign currency impacts our financial results.
Current wording
Changes are driven by our exposure to foreign currency exchange risk resulting from our operations in foreign geographies, primarily the Philippines, including economic hedges using foreign currency exchange rate forward contracts. See Part I, Item 3., "Quantitative and Qualitative Disclosures About Market Risk" in this Quarterly Report for additional information on how foreign currency impacts our financial results.
Previous wording
The effective tax rate for the three months ended March 31, 2025 and 2024 was 28.9% and 35.7%, respectively. Costs related to the issuance of stock-based compensation, operational efficiency costs, litigation costs and severance 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 $10.3 million and $8.1 million and the effective tax rate would have been 25.7% and 27.5% for the three months ended March 31, 2025 and 2024, respectively.
Current wording
The effective tax rate for the three months ended June 30, 2025 and 2024 was 25.9% and 36.8%, respectively. Costs related to the issuance of stock-based compensation, operational efficiency costs, litigation costs, transactions costs and severance 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 $12.1 million and $8.5 million and the effective tax rate would have been 25.8% and 25.5% for the three months ended June 30, 2025 and 2024, respectively.
Previous wording
Trust + Safety was primarily driven by an increase from existing clients, primarily Social Media, partially offset by On Demand Travel + Transportation.
Current wording
Trust + Safety was primarily driven by an increase from existing clients, primarily in Social Media, partially offset by On Demand Travel + Transportation.
Previous wording
AI Services was primarily driven by an increase from existing clients in Social Media, as well as new clients in Social Media.
Current wording
AI Services was primarily driven by an increase from existing clients, primarily in Social Media, as well as new clients in Social Media.
Previous wording
Philippines: Digital Customer Experience contributed 7.3% of the total increase primarily driven by clients in Financial Services, Technology, and Healthcare, partially offset by clients in Retail + E-Commerce. AI Services contributed 4.3% of the total increase primarily driven by clients in Social Media. Trust + Safety contributed 4.0% of the total increase primarily driven by clients in Social Media.
Current wording
Philippines: Digital Customer Experience contributed 6.5% 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. AI Services contributed 6.3% of the total increase primarily driven by clients in Social Media and On Demand Travel + Transportation. Trust + Safety contributed 2.9% of the total increase primarily driven by clients in Social Media, partially offset by clients in Financial Services.
Previous wording
Rest of World: Trust + Safety contributed 25.4% of the total increase, primarily driven by clients in Social Media. Digital Customer Experience contributed 9.2% of the total increase primarily driven by clients in Technology and Professional Services + Industry, partially offset by clients in On Demand Travel + Transportation. AI Services contributed 2.9% of the total increase, primarily driven by clients in Social Media. Growth in the Rest of World was led by Latin America and Europe.
Current wording
Rest of World: Trust + Safety contributed 29.6% of the total increase primarily driven by clients in Social Media. Digital Customer Experience contributed 7.8% of the total increase primarily driven by clients in Technology and Professional Services + Industry, partially offset by clients in On Demand Travel + Transportation. AI Services contributed 3.2% of the total increase primarily driven by clients in Social Media. Growth in the Rest of World was led by Latin America and Europe.
Previous wording
The increase was primarily driven by higher personnel costs of $3.1 million associated with increased headcount and bonus expense, associated with higher company performance, partially offset by a $1.0 million reduction in stock-based compensation expense. The remaining increase included employee engagement expenses.
Current wording
The increase was primarily driven by higher personnel costs of $59.7 million associated with increased headcount. The remaining increase included facilities costs associated with site expansion.
Previous wording
The table below sets forth the percentage of our total service revenue derived from our largest clients for the three months ended March 31, 2025 and 2024:
Current wording
The table below sets forth the percentage of our total service revenue derived from our largest clients for the three and six months ended June 30, 2025 and 2024:
Previous wording
For the three months ended March 31, 2025 and 2024, we generated 26% and 19%, respectively, of our service revenue from our largest client.
Current wording
For the three months ended June 30, 2025 and 2024, we generated 26% and 20%, respectively, of our service revenue from our largest client. For the six months ended June 30, 2025 and 2024, we generated 26% and 20%, respectively, of our service revenue from our largest client.
Previous wording
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, 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.
Current wording
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, 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.
Previous wording
(6) Represents tax impacts of adjustments to net income which resulted in a tax benefit during the period, including stock-based compensation expense and litigation costs. After these adjustments, we applied a non-GAAP effective tax rate of 25.7% and 27.5% for the three months ended March 31, 2025 and 2024, respectively, to non-GAAP income before income taxes.
Current wording
(7) Represents tax impacts of adjustments to net income which resulted in a tax benefit during the period, including stock-based compensation expense, transaction costs, operational efficiency costs, and litigation costs. After these adjustments, we applied a non-GAAP effective tax rate of 25.8% and 25.5% for the three months ended June 30, 2025 and 2024, respectively, to non-GAAP income before income taxes.
Previous wording
The following table reconciles GAAP diluted EPS, the most directly comparable GAAP measure, to Adjusted EPS for the three months ended March 31, 2025 and 2024:
Current wording
The following table reconciles GAAP diluted EPS, the most directly comparable GAAP measure, to Adjusted EPS for the three and six months ended June 30, 2025 and 2024:
Previous wording
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 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.
Current wording
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.
Previous wording
The following table reconciles net cash provided by operating activities, the most directly comparable GAAP measure, to Free Cash Flow for the three months ended March 31, 2025 and 2024:
Current wording
The following table reconciles net cash provided by operating activities, the most directly comparable GAAP measure, to Free Cash Flow for the six months ended June 30, 2025 and 2024:
Previous wording
As of March 31, 2025, our principal sources of liquidity were cash and cash equivalents totaling $196.9 million, which were held for working capital purposes, as well as the borrowing availability under the 2022 Revolving Credit Facility of $190.0 million.
Current wording
As of June 30, 2025, our principal sources of liquidity were cash and cash equivalents totaling $181.9 million, which were held for working capital purposes, as well as the borrowing availability under the 2022 Revolving Credit Facility of $190.0 million.
Previous wording
As of March 31, 2025, our total indebtedness, net of debt financing fees was $252.9 million. The interest rate in effect for the 2022 Term Loan Facility as of March 31, 2025 was 6.649% per annum. We were in compliance with all debt covenants as of March 31, 2025. See Note 7, "Long-Term Debt" in the Notes to Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our debt.
Current wording
As of June 30, 2025, our total indebtedness, net of debt financing fees was $249.6 million. The interest rate in effect for the 2022 Term Loan Facility as of June 30, 2025 was 6.646% per annum. We were in compliance with all debt covenants as of June 30, 2025. See Note 7, "Long-Term Debt" in the Notes to Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our debt.
Previous wording
During the three months ended March 31, 2025, we repurchased 750,691 shares of our Class A common stock under the share repurchase program for $10.1 million, which we funded principally with available cash. As of March 31, 2025, $29.5 million remained available for share repurchases under our share repurchase program. For additional information about our share repurchase program, see Part II, Item 2., "Unregistered Sales of Equity Securities and Use of Proceeds—Issuer Purchases of Equity Securities" in this Quarterly Report.
Current wording
During the six months ended June 30, 2025, we repurchased 2,112,247 shares of our Class A common stock under the share repurchase program for $27.7 million, which we funded principally with available cash. As of June 30, 2025, $11.9 million remained available for share repurchases under our share repurchase program. In connection with the execution of the Merger Agreement, the Company suspended purchases under its share repurchase program. For additional information about our share repurchase program, see Part II, Item 2., "Unregistered Sales of Equity Securities and Use of Proceeds—Issuer Purchases of Equity Securities" in this Quarterly Report.
Previous wording
Net cash provided by operating activities for the three months ended March 31, 2025 was $36.3 million compared to net cash provided by operating activities of $51.2 million for the three months ended March 31, 2024. Net cash provided by operating activities for the three months ended March 31, 2025 reflects net income of $21.1 million and the add back for non-cash charges totaling $24.2 million, partially offset by changes in operating assets and liabilities of $9.1 million. Non-cash charges primarily consisted of $10.0 million of depreciation, $8.7 million in stock-based compensation expense and $5.0 million of amortization related to intangibles. Net cash provided by operating activities for the three months ended March 31, 2024 reflects net income of $11.7 million, the add back for non-cash charges totaling $26.1 million, as well as changes in operating assets and liabilities of $13.3 million. Non-cash charges primarily consisted of $10.8 million of depreciation, $10.2 million in stock-based compensation expense and $5.0 million of amortization related to intangibles.
Current wording
Net cash provided by operating activities for the six months ended June 30, 2025 was $53.3 million compared to net cash provided by operating activities of $81.2 million for the six months ended June 30, 2024. Net cash provided by operating activities for the six months ended June 30, 2025 reflects net income of $41.2 million and the add back for non-cash charges totaling $44.4 million, partially offset by changes in operating assets and liabilities of $32.3 million. Non-cash charges primarily consisted of $19.9 million of depreciation, $17.1 million in stock-based compensation expense and $10.0 million of amortization related to intangibles. Net cash provided by operating activities for the six months ended June 30, 2024 reflects net income of $24.3 million, the add back for non-cash charges totaling $54.1 million, as well as changes in operating assets and liabilities of $2.8 million. Non-cash charges primarily consisted of $21.4 million in stock-based compensation expense, $20.8 million of depreciation and $10.0 million of amortization related to intangibles.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2025 was $14.5 million compared to net cash used in investing activities of $3.6 million for the three months ended March 31, 2024. Purchase of property and equipment increased primarily due to higher site build-out costs and technology and computer purchases.
Current wording
Net cash used in investing activities for the six months ended June 30, 2025 was $31.5 million compared to net cash used in investing activities of $8.1 million for the six months ended June 30, 2024. Purchase of property and equipment increased primarily due to higher site build-out costs as well as technology and computer purchases due to significant growth.
Previous wording
Net cash used in financing activities for the three months ended March 31, 2025 was $18.0 million compared to net cash used by financing activities of $5.7 million for the three months ended March 31, 2024. The increase was due primarily to the additional shares acquired under our share repurchase program and payments for taxes related to net share settlement.
Current wording
Net cash used in financing activities for the six months ended June 30, 2025 was $33.5 million compared to net cash used by financing activities of $18.6 million for the six months ended June 30, 2024. The increase was due primarily to the additional shares acquired under our share repurchase program and payments for taxes related to net share settlement.
Rearranged current paragraphs (15)
Current report — wording carried from elsewhere
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 Technology.
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
Rest of World: Trust + Safety contributed 33.4% of the total increase primarily driven by clients in Social Media. Digital Customer Experience contributed 6.5% of the total increase primarily driven by clients in Technology and Financial Services, partially offset by clients in On Demand Travel + Transportation. AI Services contributed 3.6% of the total increase primarily driven by Social Media. Growth in the Rest of World was led by Latin America and Europe.
Current report — wording carried from elsewhere
The following tables set forth certain historical consolidated financial information for the six months ended June 30, 2025 and 2024:
Current report — wording carried from elsewhere
The following table presents the breakdown of our service revenue by service offering for each period:
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
The following table presents the breakdown of our service revenue by geographical location, based on where the services are provided, for each period:
Current report — wording carried from elsewhere
Changes are primarily driven by our exposure to foreign currency exchange risk resulting from our operations in foreign geographies, primarily the Philippines, offset by economic hedges using foreign currency exchange rate forward contracts. The remaining increase is associated with higher interest income. See Part I, Item 3., "Quantitative and Qualitative Disclosures About Market Risk" in this Quarterly Report for additional information on how foreign currency impacts our financial results.
Current report — wording carried from elsewhere
Changes in financing expense are primarily driven by payments on long-term debt and the rate of SOFR used to calculate the interest rate of our debt.
Current report — wording carried from elsewhere
The effective tax rate for the six months ended June 30, 2025 and 2024 was 27.5% and 36.3%, respectively. Costs related to the issuance of stock-based compensation, operational efficiency costs, litigation costs, transactions costs and severance 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 $22.3 million and $16.6 million and the effective tax rate would have been 25.7% and 26.4% for the six months ended June 30, 2025 and 2024, respectively.
Current report — wording carried from elsewhere
(7) Represents tax impacts of adjustments to net income which resulted in a tax benefit during the period, including stock-based compensation expense, transaction costs, operational efficiency costs and litigation costs. After these adjustments, we applied a non-GAAP effective tax rate of 25.7% and 26.4% for the six months ended June 30, 2025 and 2024, respectively, to non-GAAP income before income taxes.
Current report — wording carried from elsewhere
(8) Net Income Margin represents net income divided by service revenue and Adjusted Net Income Margin represents Adjusted Net Income divided by service revenue.
Current report — wording carried from elsewhere
The following table reconciles net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA for the six months ended June 30, 2025 and 2024:
Current report — wording carried from elsewhere
(7) Represents interest earned on short-term savings, time-deposits and money market funds.
Current report — wording carried from elsewhere
(8) Net Income Margin represents net income divided by service revenue and Adjusted EBITDA Margin represents Adjusted EBITDA divided by service revenue.