TaskUs, Inc. 10-K

Item 8. Financial Statements and Supplementary Data TASKUS, INC. Index to Consolidated Financial Statements Page(s) Report of Independent Registered Public Accounting Firm ( KPMG LLP ; Los Angeles, California ; PCAOB ID 185 ) 62 Consolidated Balance Sheets 63 Consolidated Statements of Income 64 Consolidated Statements of Comprehensive Income 65 Consolidated Statements of Shareholders’ Equity 66 Consolidated Statements of Cash Flows 67 Notes to Consolidated Financial Statements 68 61 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors TaskUs, Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of TaskUs, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024 , the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025 , and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024 , and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025 , in conformity with U.S. generally accepted accounting principles. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ KPMG LLP We have served as the Company’s auditor since 2015. Los Angeles, California March 5, 2026 62 Table of Contents TASKUS, INC. Consolidated Balance Sheets (in thousands, except share data) December 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 211,676 $ 192,166 Accounts receivable, net of allowance for credit losses of $ 911 and $ 1,299 , respectively 254,053 198,996 Income tax receivable 524 912 Prepaid expenses and other current assets 42,994 43,278 Total current assets 509,247 435,352 Noncurrent assets: Property and equipment, net 95,426 66,775 Operating lease right-of-use assets 53,167 47,334 Deferred tax assets 12,366 8,431 Intangibles 153,490 172,525 Goodwill 219,533 216,791 Other noncurrent assets 7,536 6,090 Total noncurrent assets 541,518 517,946 Total assets $ 1,050,765 $ 953,298 Liabilities and Shareholders’ Equity Liabilities: Current liabilities: Accounts payable and accrued liabilities $ 45,242 $ 53,403 Accrued payroll and employee-related liabilities 64,549 54,160 Current portion of debt 21,559 14,809 Current portion of operating lease liabilities 19,284 16,087 Current portion of income tax payable 9,354 9,839 Deferred revenue 3,273 3,727 Total current liabilities 163,261 152,025 Noncurrent liabilities: Income tax payable 9,752 6,496 Long-term debt 219,798 241,357 Operating lease liabilities 37,086 32,946 Accrued payroll and employee-related liabilities 6,575 6,425 Deferred tax liabilities 14,304 17,046 Other noncurrent liabilities — 84 Total noncurrent liabilities 287,515 304,354 Total liabilities 450,776 456,379 Commitments and Contingencies (See Note 10) Shareholders’ equity: Class A common stock, $ 0.01 par value. Authorized 2,500,000,000 ; 50,899,239 issued and 35,463,015 outstanding and 33,215,441 issued and 19,891,464 outstanding, respectively 509 332 Class B convertible common stock, $ 0.01 par value. Authorized 250,000,000 ; 55,032,694 and 70,032,694 shares issued and outstanding, respectively 550 700 Additional paid-in capital 754,773 726,917 Retained earnings (Accumulated deficit) 58,161 ( 44,114 ) Accumulated other comprehensive loss ( 24,695 ) ( 25,389 ) Treasury stock, at cost with 15,436,224 and 13,323,977 shares, respectively ( 189,309 ) ( 161,527 ) Total shareholders’ equity 599,989 496,919 Total liabilities and shareholders’ equity $ 1,050,765 $ 953,298 See accompanying notes to consolidated financial statements. 63 Table of Contents TASKUS, INC. Consolidated Statements of Income (in thousands, except share and per share data) Year ended December 31, 2025 2024 2023 Service revenue $ 1,183,547 $ 994,985 $ 924,365 Operating expenses: Cost of services 736,361 602,898 538,745 Selling, general, and administrative expense 244,888 239,585 228,523 Depreciation 41,164 40,223 40,391 Amortization of intangible assets 19,983 19,935 20,346 Loss (gain) on disposal of assets 525 ( 80 ) 1,322 Total operating expenses 1,042,921 902,561 829,327 Operating income 140,626 92,424 95,038 Other income, net ( 14,433 ) ( 3,306 ) ( 1,711 ) Financing expenses 18,385 21,549 21,717 Income before income taxes 136,674 74,181 75,032 Provision for income taxes 34,399 28,311 29,342 Net income $ 102,275 $ 45,870 $ 45,690 Net income per common share: Basic $ 1.14 $ 0.52 $ 0.49 Diluted $ 1.10 $ 0.50 $ 0.48 Weighted-average number of common shares outstanding: Basic 90,026,126 88,912,835 93,938,931 Diluted 93,025,189 92,304,270 96,173,071 See accompanying notes to consolidated financial statements. 64 Table of Contents TASKUS, INC. Consolidated Statements of Comprehensive Income (in thousands) Year ended December 31, 2025 2024 2023 Net income $ 102,275 $ 45,870 $ 45,690 Unrealized gain (loss) on derivative contracts, net 1,985 ( 3,333 ) — Retirement benefit reserves, net 1,222 ( 551 ) 790 Foreign currency translation adjustment ( 2,513 ) ( 11,954 ) 306 Comprehensive income $ 102,969 $ 30,032 $ 46,786 See accompanying notes to consolidated financial statements. 65 Table of Contents TASKUS, INC. Consolidated Statements of Shareholders’ Equity (in thousands, except share data) Capital stock and additional paid-in capital Retained earnings (Accumulated deficit) Accumulated other comprehensive loss Total shareholders’ equity Class A common stock Class B convertible common stock Additional paid-in capital Treasury stock Shares Amount Shares Amount Shares Amount Balance as of December 31, 2022 29,257,651 $ 293 70,032,694 $ 700 $ 631,908 $ ( 135,674 ) $ ( 10,647 ) 1,649,931 $ ( 30,967 ) $ 455,613 Issuance of common stock for settlement of equity awards 1,453,010 13 — — 618 — — — — 631 Shares withheld related to net share settlement ( 188,091 ) ( 1 ) — — ( 2,168 ) — — — — ( 2,169 ) Repurchase of common stock — — — — — — — 10,146,692 ( 112,909 ) ( 112,909 ) Stock-based compensation expense — — — — 52,759 — — — — 52,759 Net income — — — — — 45,690 — — — 45,690 Other comprehensive income — — — — — — 1,096 — — 1,096 Balance as of December 31, 2023 30,522,570 $ 305 70,032,694 $ 700 $ 683,117 $ ( 89,984 ) $ ( 9,551 ) 11,796,623 $ ( 143,876 ) $ 440,711 Issuance of common stock for settlement of equity awards 3,008,312 30 — — 6,231 — — — — 6,261 Shares withheld related to net share settlement ( 315,441 ) ( 3 ) — — ( 4,252 ) — — — — ( 4,255 ) Repurchase of common stock — — — — — — — 1,527,354 ( 17,651 ) ( 17,651 ) Stock-based compensation expense — — — — 41,821 — — — — 41,821 Net income — — — — — 45,870 — — — 45,870 Other comprehensive loss — — — — — — ( 15,838 ) — — ( 15,838 ) Balance as of December 31, 2024 33,215,441 $ 332 70,032,694 $ 700 $ 726,917 $ ( 44,114 ) $ ( 25,389 ) 13,323,977 $ ( 161,527 ) $ 496,919 Issuance of common stock for settlement of equity awards 3,382,721 33 — — 8,555 — — — — 8,588 Shares withheld related to net share settlement ( 698,923 ) ( 6 ) — — ( 10,358 ) — — — — ( 10,364 ) Conversion from Class B to Class A Common Stock 15,000,000 150 ( 15,000,000 ) ( 150 ) — — — — — — Repurchase of common stock — — — — — — — 2,112,247 ( 27,782 ) ( 27,782 ) Stock-based compensation expense — — — — 29,659 — — — — 29,659 Net income — — — — — 102,275 — — — 102,275 Other comprehensive income — — — — — — 694 — — 694 Balance as of December 31, 2025 50,899,239 $ 509 55,032,694 $ 550 $ 754,773 $ 58,161 $ ( 24,695 ) 15,436,224 $ ( 189,309 ) $ 599,989 See accompanying notes to consolidated financial statements. 66 Table of Contents TASKUS, INC. Consolidated Statements of Cash Flows (in thousands) Year ended December 31, 2025 2024 2023 Cash flows from operating activities: Net income $ 102,275 $ 45,870 $ 45,690 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 41,526 40,223 40,391 Amortization of intangibles 19,983 19,935 20,346 Amortization of debt financing fees 596 596 596 Loss (gain) on disposal of assets 525 ( 80 ) 1,322 Provision (benefit) for credit losses 1,016 ( 15 ) 103 Unrealized foreign exchange losses (gains) on forward contracts — ( 689 ) 2,485 Deferred taxes ( 7,473 ) ( 10,889 ) ( 7,959 ) Stock-based compensation expense 29,659 41,821 52,759 Changes in operating assets and liabilities: Accounts receivable ( 55,124 ) ( 22,758 ) 1,861 Prepaid expenses and other current assets 4,225 ( 20,949 ) ( 2,015 ) Operating lease right-of-use assets 21,050 16,109 14,314 Other noncurrent assets ( 1,540 ) ( 63 ) ( 132 ) Accounts payable and accrued liabilities ( 12,785 ) 23,529 ( 9,825 ) Accrued payroll and employee-related liabilities 10,510 18,251 ( 7,877 ) Operating lease liabilities ( 19,613 ) ( 17,312 ) ( 13,823 ) Income tax payable 2,935 5,801 4,910 Deferred revenue ( 469 ) ( 347 ) 592 Other noncurrent liabilities ( 81 ) ( 145 ) ( 68 ) Net cash provided by operating activities 137,215 138,888 143,670 Cash flows from investing activities: Purchase of property and equipment ( 63,500 ) ( 39,104 ) ( 30,995 ) Investment in loan receivable — — ( 1,000 ) Net cash used in investing activities ( 63,500 ) ( 39,104 ) ( 31,995 ) Cash flows from financing activities: Payments for deferred business acquisition consideration ( 150 ) ( 144 ) ( 1,875 ) Payments on long-term debt ( 15,189 ) ( 8,438 ) ( 3,713 ) Proceeds from employee stock plans 8,588 6,261 631 Payments for taxes related to net share settlement ( 9,679 ) ( 4,255 ) ( 2,169 ) Payments for stock repurchases ( 27,782 ) ( 18,600 ) ( 111,959 ) Net cash used in financing activities ( 44,212 ) ( 25,176 ) ( 119,085 ) Increase (decrease) in cash and cash equivalents 29,503 74,608 ( 7,410 ) Effect of exchange rate changes on cash ( 9,993 ) ( 8,218 ) ( 806 ) Cash and cash equivalents at beginning of period 192,166 125,776 133,992 Cash and cash equivalents at end of period $ 211,676 $ 192,166 $ 125,776 Supplemental cash flow information: Cash paid for interest $ 17,808 $ 21,094 $ 21,557 Cash paid for taxes, net of refunds $ 35,673 $ 34,200 $ 31,747 Noncash operating, investing and financing activities: Accrued capital expenditures $ 9,811 $ 6,024 $ 4,451 Loan receivable exchanged for software $ — $ — $ 2,182 See accompanying notes to consolidated financial statements. 67 Table of Contents TASKUS, INC. Notes to Consolidated Financial Statements 1. Description of Business and Organization TaskUs, Inc. (“TaskUs,” together with its subsidiaries, the “Company,” “we,” “us” or “our”) was formed by investment funds affiliated with Blackstone Inc. (“Blackstone”) as a vehicle for the acquisition of TaskUs Holdings, Inc. (“TaskUs Holdings”) on October 1, 2018 (the “Blackstone Acquisition”). Prior to the Blackstone Acquisition, TaskUs had no operations and TaskUs Holdings operated as a standalone entity. TaskUs, Inc. was incorporated in Delaware in July 2018, and is headquartered in New Braunfels, Texas. The Company delivers outsourced digital services that power the companies shaping the future. By combining specialized human talent and intelligent technology, the Company solves complex operational challenges for global category leaders within AI, autonomous vehicles, robotics, social media, financial services, healthcare, and beyond. The Company enables its clients to elevate their customer experience, protect their platforms, and grow their brands. The Company’s global, omnichannel delivery model is focused on providing its clients three key services - Digital Customer Experience, Trust & Safety and Artificial Intelligence (“AI”) Services. The Company has designed its platform to enable it to rapidly scale and benefit from its clients’ growth. Through its agile and responsive operational model, the Company delivers services from multiple delivery sites that span globally from the United States, Philippines, India and other parts of the world. The Company’s major service offerings are described in more detail below: • 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. 2. Summary of Significant Accounting Policies (a) Basis of Presentation The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). (b) Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the determination of useful lives and impairment of fixed assets; allowances for credit losses; the valuation of deferred tax assets; the measurement of lease liabilities and right-of-use assets; valuation of forward contracts; valuation of stock-based compensation; valuation of acquired intangible assets and goodwill, as well as related impairment assessments, and reserves for income tax uncertainties and other contingencies. (c) Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company has no variable interest entities in its corporate structure. 68 Table of Contents (d) Segments Operating segments are components of a company for which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”) in deciding on how to allocate resources and in assessing performance. The Company’s CODM is the chief executive officer (“CEO”). The CEO reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance based on factors including client demand and capacity and consolidated net income. Therefore, the Company has determined that it operates in a single operating and reportable segment. (e) Concentration Risk Most of the Company’s clients are located in the United States. Clients outside of the United States are concentrated in Europe. For the years ended December 31, 2025, 2024 and 2023, the following client represented greater than 10% of the Company’s service revenue: Year ended December 31, Customer 2025 2024 2023 A 26 % 22 % 19 % For the years ended December 31, 2025 and 2024, the following clients represented greater than 10% of the Company’s accounts receivable: Customer December 31, 2025 December 31, 2024 A 19 % 19 % B Less than 10 % 11 % The Company’s principal operations, including the majority of its employees and the fixed assets owned by its wholly owned subsidiaries, are located in the Philippines. (f) Business Combinations The Company accounts for business combinations in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. The purchase price of the acquisition is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives and market multiples, among other items. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of income. (g) Leases At inception of a contract, the Company determines whether an arrangement is, or contains, a lease based on the substance of the arrangement. In determining whether a contract contains a lease, the Company considers whether it has (1) the right to obtain substantially all of the economic benefits from the use of the asset throughout the term of the contract, (2) the right to direct how and for what purpose the asset is used throughout the term of the contract and (3) the right to operate the asset throughout the term of the contract without the lessor having the right to change the terms of the contract. If a lease is identified, the Company determines whether it should be classified as an operating or finance lease at commencement. The Company does not apply the short-term lease exception and therefore recognizes a right-of-use asset and lease liability for all leases. 69 Table of Contents The Company has various leases for office spaces under operating lease agreements which have a range of periods remaining from one to five years, and often include a renewal option for an additional term. Lease terms include the base, non-cancelable lease term, and any options to extend or terminate the lease when it is reasonably certain at commencement that the Company will exercise such options. Right-of-use (“ROU”) lease assets represent the Company’s right to use an underlying asset for the lease term and may include any advance lease payments made. ROU lease liabilities represent the Company’s obligation to make lease payments arising from the contractual terms of the lease. ROU lease assets and lease liabilities are recognized at the commencement of the lease and are calculated using the present value of lease payments over the lease term. Typically, lease agreements do not provide sufficient detail to arrive at an implicit interest rate. Therefore, the Company uses its estimated incremental borrowing rates (“IBR”) based on information available at the commencement date of the lease to calculate the present value of the lease payments. In estimating its IBR, the Company considers it credit rating, the lease term, the currency of the lease payments and market rates of comparable collateralized borrowings for similar terms. The Company remeasures its lease liability and related ROU lease asset upon the occurrence of the following: lease modifications not accounted for as a separate contract; a triggering event that changes the certainty of the Company exercising an option to renew or terminate the lease, or purchase the underlying asset; or the resolution of a contingency upon which any variable lease payments are based such that those payments become fixed. (h) Translation of Non-U.S. Currency Amounts The Company is subject to foreign currency exposure due to its principal operations being located in the Philippines and operations in various other international locations. Assets and liabilities of non-U.S. subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at fiscal year-end exchange rates. Revenue and expense items are translated at weighted average foreign currency exchange rates prevailing during the fiscal year. Translation adjustments are included in other comprehensive income (loss). Realized and unrealized gains and losses arising from foreign currency transactions are recognized in other expense (income), net. For the years ended December 31, 2025, 2024 and 2023, realized and unrealized foreign currency losses (gains) were $( 8.0 ) million, $( 4.0 ) million and $ 0.5 million, respectively, recognized in other expense (income), net. (i) Cash and Cash Equivalents Cash and cash equivalents consist of cash on deposit with banks and highly liquid investments with maturities of 90 days or less from the date of purchase. For the years ended December 31, 2025, 2024 and 2023, interest income was $ 5.8 million, $ 5.5 million and $ 1.6 million, respectively, recognized in other expense (income), net. (j) Accounts Receivable Accounts receivable are recorded as revenue and are recognized in accordance with the Company’s revenue recognition policy. The Com pany maintains an allowance for credit losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. The Company reviews its allowance for losses quarterly. Past-due balances over 30 days and over a specified amount are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. (k) Debt Financing Fees Debt financing fees include costs incurred in connection with obtaining debt financing and are amortized using the straight-line method over the term of the related credit agreement. Straight line amortization approximates amortization under the effective interest method. The amortization is included in financing expenses in the consolidated statements of income. On the consolidated balance sheets, the debt financing fees related to the term loan and revolver loan are classified as a discount against the associated debt. In instances when the revolver loan is undrawn, associated debt financing fees are included in other noncurrent assets. (l) Derivative Instruments and Hedging Activities ASC Topic 815, Derivatives and Hedging, establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and hedging activities. It requires measurement of all derivative instruments at fair value, recognized as assets (prepaid expenses and other) or liabilities ( accounts payable and accrued liabilities ) on the consolidated balance sheets. The cash flow effects of all of the Company’s derivative instruments are reflected in operating activities on the consolidated statements of cash flows. The accounting treatment of changes in fair value is dependent upon whether or not a derivative instrument is designated as a hedge and if so, the type of hedge. 70 Table of Contents Cash Flow Hedges The Company performs an assessment, on the designation date and on an ongoing basis, to determine whether cash flow hedges are expected to be highly effective at offsetting changes in the hedged item. For the effective portion, changes in fair values of derivative instruments designated as cash flow hedges are recorded in accumulated other comprehensive loss and reclassified into earnings when the hedged transactions occur. Derivatives Not Designated as Hedging Instruments Changes in fair value of derivative instruments not designated as hedges are included in other expense (income), net in the consolidated statements of income. (m) Revenue Recognition The Company recognizes revenue from its services in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company recognizes revenues for services for which control has transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. To determine revenue recognition for arrangements that are determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies its performance obligations. The Company accounts for a contract with a customer when the contract is legally enforceable and when collectability is probable. The Company has executed contracts with customers which detail, among others, the contract terms, obligations and rights of both parties and payment terms. Certain of the Company’s contracts include termination clauses, which the Company evaluates when determining the contract term (generally one to three years ) over which the parties have enforceable rights and obligations. A performance obligation is the unit of account under ASC 606 and represents the distinct services that are promised to the customer. Performance obligations are identified when the contract is created and based on agreed terms and business practices. The transaction price reflects the amount the Company expects to receive in exchange for services to the customer. The expected dollar amount is allocated to each performance obligation based on the standalone selling price agreed with the customer. The Company determines the standalone selling price based on the overall pricing objectives, taking into consideration market conditions, cost of performance obligations, and other factors including geographic locations. The Company’s performance obligations are related to providing services to its customers and its customers simultaneously receive and consume the benefits of those services. Therefore, revenue is recognized over time as performance obligations are satisfied and we have a “right to invoice.” We do not allocate transaction price to unsatisfied performance obligations. Differences in timing between the delivery of services, billings, and receipt of payment from customers can result in the recognition of certain contract assets and contract liabilities. Revenue recognized in excess of billings is recorded as accrued revenue, and is reported under accounts receivable, net of allowance for credit losses on the consolidated balance sheets. Billings in excess of revenue recognized is recorded as deferred revenue until revenue recognition criteria are met. Client prepayments (even if nonrefundable) are recorded as deferred revenue on the consolidated balance sheets and recognized over future periods as services are delivered or performed. ASC 340-40, Other Assets and Deferred Costs—Contracts with customers (“ASC 340”), provides guidance for incremental costs of obtaining a contract with a customer or costs incurred in fulfilling a contract with a customer. Incremental costs to obtain a contract with a customer are required to be capitalized if an entity expects to recover those costs. Signing commissions that are paid to sales employees are considered incremental costs of obtaining a contract with a customer. These commissions are deferred and then amortized on a straight-line basis over the contract period, which is typically one year. Amortization expense is included in selling, general, and administrative expense on the consolidated statements of income. The Company determines the period of benefit by taking into consideration its customer contracts, its technology, and other factors. Commissions paid to non-sales staff are also required to be capitalized if directly attributable to, and incremental from, obtaining a contract. (n) Advertising Expense Advertising costs are expensed as incurred and are included in selling, general, and administrative expense in the consolidated statements of income. Advertising expense for the years ended December 31, 2025, 2024 and 2023 was $ 1.4 million , $ 1.7 million and $ 1.6 million, respectively. 71 Table of Contents (o) Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization and any impairment in value. The cost of an asset comprises its purchase price and costs directly attributable to bringing the asset to working condition for its intended use. Expenditures for additions, major improvements, and renewals are capitalized, while expenditures for repairs and maintenance are charged to expense as incurred. Depreciation is computed on the straight-line basis over the estimated useful life of the Company’s assets, generally three to five years or, for leasehold improvements, the estimated useful life or the remaining term of the lease, whichever is shorter. Construction in process represents property under construction and is stated at cost, including costs of construction and other direct costs, which is not depreciated until such time that the assets are completed and available for use. Fully depreciated assets are retained in the accounts until they are no longer in use and no further depreciation is recognized. An item of property and equipment, including the related accumulated depreciation and amortization and any impairment losses, is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in profit or loss in the period the item is derecognized. Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are grouped for recognition and measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. (p) Intangibles Intangible assets consist of finite-lived intangible asset s acquired through the Company’s business combinations. Such amounts are initially recorded at fair value and subsequently amortized over their useful lives using the straight-line method, which reflects the pattern of benefit, and assumes no residual value. Finite-lived intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Finite-lived intangibles are grouped for recognition and measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. If circumstances require an asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset group to its carrying amount. If the carrying amount of the asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. (q) Goodwill Goodwill is the amount by which the cost of the acquired net assets in a business combination exceeds the fair value of the identifiable net assets on the date of purchase. Goodwill is not amortized. The Company reviews goodwill for impairment annually on October 1, or more frequently when events or circumstances indicate goodwill may be impaired. Management may initially assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount (“Step 0”). If determined that it is more-likely-than-not the estimated fair value of a reporting unit is less than its carrying amount, a quantitative assessment is performed (“Step 1”). Under ASC Topic 350 Intangibles—Goodwill and Other , entities have an unconditional option to bypass the qualitative assessment described in the preceding sentences for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. We have determined that we have a single reporting unit. We consider our market capitalization (calculated as total common shares outstanding multiplied by the common equity price per share), as adjusted for a control premium factor, as necessary, to represent fair value. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If the carrying amount of the reporting unit exceeds its fair value, an impairment charge is recorded in an amount equal to that excess, but not more than the carrying value of goodwill. 72 Table of Contents (r) Prepaid Expenses and Other Assets Prepaid expenses and ot her current assets consists primarily of receivables from insurance, VAT and goods and services taxes, prepayments for software and implementation costs capitalized for hosting arrangements, advances to suppliers, refundable security deposits and forward contracts. Other noncurrent assets consists primarily of refundable security deposits, implementation costs capitalized for hosting arrangements and deferred financing costs on the undrawn revolver loan. (s) Share Repurchases The Company records its repurchases of Class A common stock at cost, including direct and incremental costs, as treasury stock within shareholders' equity on the consolidated balance sheets. (t) Share-based Compensation The Company accounts for its stock-based awards in accordance with ASC Topic 718, Compensation - Stock Compensation (“ASC 718”). For equity awards total compensation cost is based on the grant date fair value. For liability awards, total compensation cost is based on the fair value of the award on the date the award is granted and is remeasured at each reporting date until settlement. Awards to employees may contain service, performance, market conditions, or a combination thereof, that affect vesting. The Company recognizes expense over the requisite service period using a graded vesting model. For unvested awards with performance conditions, the Company assesses the probability of attaining the performance conditions at each reporting period. Awards that are deemed probable of attainment are recognized in expense over the requisite service period. The Company accounts for forfeitures as they occur. (u) Employee Benefits Defined benefit plans The Company has certain defined benefit plans that provide eligible employees with retirement income based primarily o n years of service and compensation during specific periods. Expense recognized for the years ended December 31, 2025, 2024 and 2023 was $ 2.5 million, $ 1.9 million and $ 1.7 million, respectively. The net obligations under our benefit plans as of December 31, 2025 and 2024 were $ 6.8 million and $ 6.5 million, respectively, nearly all of which is noncurrent. The retirement benefit reserve, which represents the cumulative amount of remeasurement of the defined benefit liability arising from actuarial gains and losses due to experience and demographic assumptions, is included in accumulated other comprehensive loss. Defined contribution plans The Company has certain defined contribution plans, including a 401(k) retirement plan in the U.S., whereby contributions made by eligible employees may be matched by the Company with certain limitations. Employer matching contributions recognized in expense for the years ended December 31, 2025, 2024 and 2023 was $ 3.4 million, $ 2.9 million and $ 3.5 million, respectively. (v) Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable t hat a liability has been incurred and the amount can be reasonably estimated. The Company uses third-party insurance to cover liabilities for certain risks and generally recognizes a receivable when a loss event has occurred and recovery is probable. Insurance recoveries are recorded separately from the liability on the consolidated balance sheets, since insurance generally does not relieve the Company from its obligation to make payments, and recorded within the same line as the loss on the consolidated statements of income. Legal costs incurred in connectio n with loss contingencies are expensed as incurred. (w) Earnings per share The computation of basic net income per share of common stock (“EPS”) is based on the weighted average number of shares that were outstanding during the period, including shares of common stock that are issuable at the end of the reporting period. The computation of diluted EPS is based on the number of basic weighted-average number of shares outstanding plus the weighted-average number of common shares that would be issued assuming the exercise of all potentially dilutive common stock equivalents using the treasury stock method. Common stock equivalents consist of shares issuable upon the exercise of stock options and vesting of RSUs and PSUs . Common stock equivalents with performance or market conditions are included as potentially dilutive if the conditions for vesting would have been met if the last day of the period was the end of the contingency period. 73 Table of Contents (x) Income Taxes Current tax liabilities and assets are recognized for the estimated taxes payable or refundable, respectively, on the tax returns for the current year. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The carrying value of the Company’s net deferred tax assets is based on whether it is more likely than not that the Company will generate sufficient future taxable income to realize the deferred tax assets. A valuation allowance is established for deferred tax assets, which the Company does not believe meet the “more likely than not” threshold. The Company’s judgments regarding future taxable income may change over time due to changes in market conditions, changes in tax laws, tax planning strategies, or other factors. If the Company’s assumptions and, consequently, its estimates, change in the future, the valuation allowance may materially increase or decrease, resulting in a decrease or increase, respectively, in income tax benefit and the related impact on the Company’s reported net income. The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than likely of being realized and effectively settled. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments, and that may not accurately forecast actual outcomes. The Company recognizes interest and penalties accrued related to unrecognized tax benefits as additional income taxes. (y) Recent Accounting Pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private compani es. The Company will lose its status as an emerging growth company on December 31, 2026, the last day of the fiscal year following the fifth anniversary of its initial public offering. As a result, the Company will no longer be entitled to take advantage of specified reduced reporting requirements after that date. Recently adopted accounting pronouncements There were no new accounting pronouncements adopted during the year ended December 31, 2025, that had a material impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This standard improves the transparency of rate reconciliation and income taxes paid disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The standard also improves the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (loss) and income tax expense (benefit) and (2) removing disclosures that no longer are considered cost beneficial or relevant. This ASU will be effective for the Company for fiscal years beginning after December 15, 2025. Early adoption is permitted. This ASU will be applied prospectively, with retrospective application permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expense. The amendments in this Update require (1) disclosure of employee compensation, depreciation and intangible asset amortization included in each expense caption presented on the face of the income statement within continuing operations (“relevant expense captions”); (2) certain amounts that are already required to be disclosed under current GAAP to be included in the same disclosure as the other disaggregation requirements; (3) a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively; and (4) disclosure of the total amount of selling expenses and, in annual reporting periods, the Company’s definition of selling expenses. This ASU will be effective for the Company for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. This ASU should be applied either prospectively or retrospectively. The Company is currently reviewing this ASU. 74 Table of Contents In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this Update simplify the measurement of credit losses by providing a practical expedient which permits an entity, when estimating expected credit losses for current accounts receivable and contract assets, to make an election to assume that current conditions as of the balance sheet date will remain unchanged for the asset's remaining life. This ASU will be effective for the Company for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years. Early adoption is permitted. This ASU should be applied prospectively. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This standard modernizes the accounting for internal-use software by (1) removing the previous stage-based development model, (2) requiring capitalization to begin when management commits to funding and it is probable the project will be completed, and (3) clarifying that the probability threshold is not met if significant development uncertainty exists. The amendments also supersede the separate guidance for website development costs, incorporating those requirements into the internal-use software subtopic. This ASU will be effective for the Company for fiscal years beginning after December 15, 2027, and interim periods within those years. Early adoption is permitted. This ASU may be applied on either a prospective or retrospective basis. The Company is currently reviewing this ASU. In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. This standard establishes authoritative guidance for the recognition, measurement, and presentation of government grants received by business entities. The amendments require that a government grant not be recognized until (1) it is probable that the entity will comply with the conditions attached to the grant and (2) the grant will be received. The amendment also requires that a grant related to an asset be recognized on the balance sheet as a business entity incurs the related costs for which the grant is intended to compensate, either as deferred income or an adjustment to the carrying amount of the asset. This ASU will be effective for the Company for fiscal years beginning after December 15, 2028, and interim periods within those years, consistent with the timeline for public business entities since the Company will lose emerging growth company status. Early adoption is permitted. This ASU will be applied using either a modified prospective, modified retrospective, or retrospective approach. The Company is currently reviewing this ASU. 3. Business Combination On April 15, 2022 (the “Closing Date”), the Company completed the acquisition of 100 % of the equity interests of Parsec d.o.o. and Q Experience d.o.o. (collectively, “heloo”) for $ 35.4 million. The former shareholders of heloo were also eligible to receive contingent earn-out payments not to exceed € 20.0 million, based on performance compared to prescribed EBITDA targets outlined in the purchase agreement during each of the one year periods ending April 30, 2023 and 2024, respectively. Since these payments were contingent on future service conditions, they were recognized as compensation expense ratably over the required service period. The Company recognized compensation expense related to the contingent earn-out payments within selling, general, and administrative expenses of $ 7.9 million for the year ended December 31, 2023. The Company paid $ 18.3 million related to the contingent earn-out during the year ended December 31, 2023, which is included in net cash provided by operating activities. The second earn-out period expired as of April 30, 2024, with no additional amount paid. The Company paid $ 0.2 million, $ 0.1 million and $ 1.9 million related to holdback cash consideration during the years ended December 31, 2025, 2024 and 2023 , respectively, which is included in payments for deferred business acquisition consideration. All holdback consideration has been paid as of December 31, 2025. 4. Revenue from Contracts with Customers Disaggregation of Revenue The Company’s revenues are derived from contracts with customers related to business outsourcing services that it provides. The following table presents the breakdown of the Company’s revenues by service offering: Year ended December 31, (in thousands) 2025 2024 2023 Digital Customer Experience $ 661,899 $ 611,837 $ 605,943 Trust & Safety 307,430 248,041 186,742 AI Services 214,218 135,107 131,680 Service revenue $ 1,183,547 $ 994,985 $ 924,365 75 Table of Contents The majority of the Company’s revenues are derived from contracts with customers who are located in the United States. However, the Company delivers its services from geographies outside of the United States. The following table presents the breakdown of the Company’s revenues by geographical location, based on where the services are provided from: Year ended December 31, (in thousands) 2025 2024 2023 Philippines $ 638,042 $ 563,032 $ 511,298 United States 132,058 117,773 148,708 India 153,766 123,804 115,777 Rest of World 259,681 190,376 148,582 Service revenue $ 1,183,547 $ 994,985 $ 924,365 Contract Balances Accounts receivable, net of allowance for credit losses includes $ 122.4 million and $ 92.7 million of unbilled revenues as of December 31, 2025 and 2024, respectively. Activity in the Company’s allowance for doubtful accounts consisted of the following: Year ended December 31, (in thousands) 2025 2024 2023 Balance, beginning of year $ 1,299 $ 1,978 $ 3,422 Provision for credit losses 1,016 ( 15 ) 103 Uncollectible receivables written-off ( 1,404 ) ( 664 ) ( 1,547 ) Balance, end of year $ 911 $ 1,299 $ 1,978 5. Forward Contracts The Company transacts business in various foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency exchange rate risk. During 2025 and 2024, the Company entered into foreign currency exchange rate forward contracts, with six commercial banks as the counterparties, with maturities of generally 12 months or less, to reduce the volatility of cash flows, primarily related to forecasted costs denominated in Philippine pesos, Indian rupees, Mexican pesos, Colombian pesos and euros. In addition, the Company utilizes foreign currency exchange rate contracts to mitigate foreign currency exchange rate risk associated with foreign currency-denominated assets and liabilities, primarily intercompany balances. The Company does not use foreign currency exchange rate contracts for trading purposes. Cash Flow Hedges The following table presents the Company's realized gains associated with our cash flow hedges reclassified from accumulated other comprehensive loss ("AOCL") to earnings: Year ended December 31, (in thousands) 2025 2024 2023 Cost of services $ ( 4,093 ) $ — $ — Selling, general, and administrative expense ( 640 ) — — Depreciation expense ( 361 ) — — Total amount reclassified from AOCL $ ( 5,094 ) $ — $ — 76 Table of Contents The following table presents the Company's settled forward contracts designated as cash flow hedges: Year ended December 31, (in thousands) 2025 2024 2023 Notional amount of settled forward contracts in Philippine pesos $ 190,670 $ — $ — Notional amount of settled forward contracts in Indian rupees 55,263 — — Notional amount of settled forward contracts in Mexican pesos 17,869 — — Notional amount of settled forward contracts in Colombian pesos 45,653 — — Notional amount of settled forward contracts in euros 6,822 — — Total notional amount of settled forward contracts designated as cash flow hedges $ 316,277 $ — $ — The following table presents the Company's outstanding forward contracts designated as cash flow hedges: Year ended December 31, (in thousands) 2025 2024 2023 Notional amount of outstanding forward contracts in Philippine pesos $ 168,959 $ 152,803 $ — Notional amount of outstanding forward contracts in Indian rupees 56,806 41,819 — Notional amount of outstanding forward contracts in Mexican pesos 16,065 14,380 — Notional amount of outstanding forward contracts in Colombian pesos 41,961 35,141 — Notional amount of outstanding forward contracts in euros 20,641 — — Total notional amount of outstanding forward contracts designated as cash flow hedges $ 304,432 $ 244,143 $ — All cash flow hedges were determined to be highly effective, with no component of any gain or loss excluded from the assessment of hedge effectiveness, for the periods presented. Net unrealized losses (gains) on cash flow hedges for the years ended December 31, 2025 and 2024 was $ 7.6 million and $ 4.2 million, respectively. As of December 31, 2025, the net accumulated loss on our foreign currency cash flow hedges expected to be reclassed from accumulated other comprehensive loss into earnings within the next 12 months was $ 1.8 million. See Note 15, “Accumulated Other Comprehensive Loss” for additional information regarding changes in accumulated other comprehensive loss. Derivatives Not Designated as Hedging Instruments The following table presents the Company’s settled and outstanding forward contracts and realized and unrealized losses (gains) associated with derivative contracts not designated as hedging instruments: Year ended December 31, (in thousands) 2025 2024 2023 Notional amount of settled forward contracts in Philippine pesos $ — $ 169,029 $ 221,014 Notional amount of settled forward contracts in Indian rupees — 45,193 30,950 Total notional amount of settled forward contracts $ — $ 214,222 $ 251,964 Realized losses (gains) from settlement of forward contracts $ — $ 5,956 $ ( 2,577 ) Notional amount of outstanding forward contracts in Philippine pesos $ — $ — $ 169,029 Notional amount of outstanding forward contracts in Indian rupees — — 45,193 Total notional amount of outstanding forward contracts $ — $ — $ 214,222 Unrealized foreign exchange losses (gains) on forward contracts $ — $ ( 689 ) $ 2,485 Fair Value Measurements The Company has implemented the fair value accounting standard for those assets and liabilities that are re-measured and reported at fair value at each reporting period. This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value based on inputs used, and requires additional disclosures about fair value measurements. This standard applies to fair value measurements already required or permitted by existing standards. By entering into derivative contracts, the Company is exposed to counterparty credit risk, or the failure of the counterparty to perform under the terms of the derivative contract. For the periods presented, the non-performance risk of the Company and the counterparties did not have a material impact on the fair value of the derivative instruments. 77 Table of Contents In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset and include situations where there is little, if any, market activity for the asset. For financial statement presentation purposes, the Company does not offset assets and liabilities under master netting arrangements. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2025 and 2024 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: December 31, 2025 Fair value measurements using Total Gross Fair Value Effect of Master Netting Arrangements Net Amounts (in thousands) Level 1 inputs Level 2 inputs Level 3 inputs Assets Money market funds $ 121,293 $ — $ — $ 121,293 $ — $ 121,293 Derivatives designated as hedging instruments: Forward contracts receivable $ — $ 2,317 $ — $ 2,317 $ ( 2,097 ) $ 220 Liabilities Derivatives designated as hedging instruments: Forward contracts payable $ — $ 4,075 $ — $ 4,075 $ ( 2,097 ) $ 1,978 December 31, 2024 Fair value measurements using Total Gross Fair Value Effect of Master Netting Arrangements Net Amounts (in thousands) Level 1 inputs Level 2 inputs Level 3 inputs Assets Money market funds $ 60,346 $ — $ — $ 60,346 $ — $ 60,346 Derivatives designated as hedging instruments: Forward contracts receivable $ — $ 2 $ — $ 2 $ ( 2 ) $ — Liabilities Derivatives designated as hedging instruments: Forward contracts payable $ — $ 4,221 $ — $ 4,221 $ ( 2 ) $ 4,219 T he Company’s derivatives are carried at fair value using various pricing models that incorporate observable market inputs, such as interest rate yield curves and currency rates, which are Level 2 inputs. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or by the Company. 6. Property and Equipment, net The components of Property and equipment, net at December 31, 2025 and 2024 were as follows: (in thousands) December 31, 2025 December 31, 2024 Leasehold improvements $ 106,515 $ 76,171 Technology and computers 127,227 115,816 Furniture and fixtures 13,224 8,480 Construction in process 9,681 5,476 Other property and equipment 24,443 16,260 Property and equipment, gross 281,090 222,203 Accumulated depreciation ( 185,664 ) ( 155,428 ) Property and equipment, net $ 95,426 $ 66,775 78 Table of Contents The Company’s principal operations are in the Philippines where the majority of property and equipment resides under its wholly owned subsidiaries. The table below presents the Company’s total property and equipment by geographic location as of December 31, 2025 and 2024: (in thousands) December 31, 2025 December 31, 2024 Philippines $ 34,205 $ 22,888 United States 6,620 7,116 India 24,549 11,830 Colombia 18,667 12,950 Rest of World 11,385 11,991 Property and equipment, net $ 95,426 $ 66,775 During the years ended December 31, 2025, 2024 and 2023, no impairment charges were recorded. 7. Goodwill and Intangibles The changes in the carrying amount of goodwill during the period were as follows: (in thousands) Balance as of December 31, 2023 $ 218,108 Foreign currency translation ( 1,317 ) Balance as of December 31, 2024 216,791 Foreign currency translation 2,742 Balance as of December 31, 2025 $ 219,533 As of October 1, 2025, 2024 and 2023, the Company opted to bypass the qualitative assessment under Step 0 and proceeded directly to performing a quantitative goodwill impairment test under Step 1. Based on the quantitative assessments for the years ended December 31, 2025, 2024 and 2023, the Company determined that the carrying value of the reporting unit did not exceed its fair value and no impairment charges were recorded. Intangible assets consisted of the following as of December 31, 2025 and 2024: December 31, 2025 December 31, 2024 (in thousands) Weighted-Average Years Remaining Intangibles, Gross Accumulated Amortization Intangibles, Net Intangibles, Gross Accumulated Amortization Intangibles, Net Customer relationships 7.7 $ 252,607 $ ( 120,765 ) $ 131,842 $ 251,245 $ ( 103,162 ) $ 148,083 Trade name 7.7 41,900 ( 20,252 ) 21,648 41,900 ( 17,458 ) 24,442 Other intangibles 0.0 105 ( 105 ) — 158 ( 158 ) — Total 7.7 $ 294,612 $ ( 141,122 ) $ 153,490 $ 293,303 $ ( 120,778 ) $ 172,525 During the years ended December 31, 2025, 2024 and 2023, no impairment charges were recorded. Future amortization expense for intangible assets subject to amortization was: (in thousands) 2026 $ 20,027 2027 20,027 2028 20,027 2029 20,027 2030 20,027 Thereafter 53,355 Total $ 153,490 79 Table of Contents 8. Long-Term Debt The balances of current and non-current portions of debt consist of the following as of December 31, 2025 and 2024: December 31, 2025 December 31, 2024 (in thousands) Current Noncurrent Total Current Noncurrent Total Term Loan $ 21,938 $ 220,050 $ 241,988 $ 15,188 $ 241,988 $ 257,176 Less: Debt financing fees ( 379 ) ( 252 ) ( 631 ) ( 379 ) ( 631 ) ( 1,010 ) Total $ 21,559 $ 219,798 $ 241,357 $ 14,809 $ 241,357 $ 256,166 2022 Credit Agreement On September 7, 2022, the Company entered into a credit agreement (the “2022 Credit Agreement”) with both new and existing lenders which amended and restated its credit agreement entered into on September 25, 2019 (the “2019 Credit Agreement”). The 2022 Credit Agreement includes a $ 270.0 million term loan (the "2022 Term Loan Facility") and a $ 190.0 million revolving credit facility (the "2022 Revolving Credit Facility" and, together with the 2022 Term Loan Facility, the “2022 Credit Facilities”). The proceeds of the 2022 Term Loan Facility were used to repay all borrowings under the 2019 Credit Agreement, to pay related fees and expenses and for general corporate purposes (the “Refinancing”). The Refinancing was accounted for as a debt modification for existing lenders and new debt for new lenders, resulting in debt issuance costs, including amounts allocated from the 2019 Credit Agreement, of $ 1.9 million associated with the 2022 Term Loan Facility and $ 1.1 million associated with the undrawn 2022 Revolving Credit Facility. The 2022 Term Loan Facility matures on September 7, 2027, and commencing with the fiscal quarter ending December 31, 2022, requires quarterly principal payments of 0.25 % of the original principal amount through September 30, 2023, 0.625 % of the original principal amount through September 30, 2024, 1.25 % of the original principal amount through September 30, 2025, 1.875 % of the original principal amount through September 30, 2026 and 2.50 % of the original principal amount thereafter, with the remaining principal due in a lump sum at the maturity date. Voluntary principal prepayments are permitted. The 2022 Revolving Credit Facility provides the Company with access to a $ 15.0 million letter of credit facility and a $ 15.0 million swing line facility, each of which, to the extent used, reduces borrowing availability under the 2022 Revolving Credit Facility. The 2022 Revolving Credit Facility terminates on September 7, 2027. As of December 31, 2025, we had no balance outstanding and $ 190.0 million of borrowing available under the 2022 Revolving Credit Facility. Borrowings under the 2022 Credit Agreement, with the exception of swing line borrowings, bear interest, at our option, either at (i) an adjusted Term Secured Overnight Financing Rate (“SOFR rate”) plus a margin of 2.25 % per annum, subject to a SOFR rate floor of 0.00 % or (ii) an alternative base rate plus a margin of 1.25 % per annum, subject to an alternative base rate floor of 1.00 %, Any borrowings under the swing line will be subject to the base rate. The 2022 Revolving Credit Facility also requires a commitment fee of 0.40 % per annum of undrawn commitments to be paid quarterly in arrears. We have elected to pay interest on borrowings under the 2022 Term Loan Facility based on the SOFR rate. The interest rate in effect for the 2022 Term Loan Facility as of December 31, 2025 was 6.022 % per annum. Due to its variable interest rates, the carrying amount of debt approximates fair value based on the present value of future cash flows using Level 2 inputs. The 2022 Credit Agreement contains a financial covenant requiring compliance with a maximum total net leverage ratio and certain other covenants, including, among other things, covenants restricting additional borrowings, investments (including acquisitions) and distributions. We were in compliance with all debt covenants as of December 31, 2025. Substantially all assets of our direct wholly owned subsidiary TU MidCo, Inc., its wholly owned subsidiary TU BidCo, Inc. and its material wholly owned domestic subsidiaries are pledged as collateral under the 2022 Credit Agreement, subject to certain customary exceptions. Principal maturities of the outstanding debt as of December 31, 2025 are as follows: (in thousands) 2026 $ 21,938 2027 220,050 Total $ 241,988 80 Table of Contents 9. Leases The following table presents operating lease costs recorded to cost of service: Year ended December 31, (in thousands) 2025 2024 2023 Operating lease costs - Cost of services $ 25,306 $ 19,177 $ 17,314 Operating lease costs recorded to selling, general, and administrative expense were immaterial during the years ended December 31, 2025, 2024, and 2023. The following table presents the weighted average remaining lease term and weighted average discount rate for the Company's operating leases as of December 31, 2025 and December 31, 2024: December 31, 2025 December 31, 2024 Weighted average remaining lease term 3.3 years 3.5 years Weighted average discount rate 7.0 % 6.6 % The following table presents supplemental cash flow information related to the Company's operating leases: (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 23,289 $ 19,733 $ 16,825 ROU assets obtained in exchange for operating lease liabilities 24,806 24,023 18,938 The future lease payments on the Company’s operating lease liabilities as of December 31, 2025 were as follows: (in thousands) 2026 $ 22,418 2027 17,196 2028 12,405 2029 9,241 2030 1,741 Thereafter 97 Total lease payments 63,098 Less: interest ( 6,728 ) Total lease liabilities $ 56,370 10. Commitments and Contingencies Legal Proceedings The Company is subject to various legal proceedings, claims, and litigation arising in the ordinary course of business. Although the outcomes of such matters cannot be predicted with certainty, the Company believes that resolution of all such pending matters will not, either individually or in the aggregate, have a material adverse effect on its business, operating results, cash flows, or financial condition. However, given the inherent unpredictability of litigations, arbitrations, claims, inquiries, investigations and proceedings, it is possible that an adverse outcome in certain matters could have a material adverse effect on our business, operating results, cash flows, or financial condition in any future period. In addition, there can be no assurance that material losses will not be incurred from claims where potential losses have not yet been determined to be probable or possible and reasonably estimable. 81 Table of Contents On February 23, 2022, a purported class action lawsuit captioned Lozada v. TaskUs, Inc. et al. (No. 22-cv-1479-JPC), was filed in the United States District Court for the Southern District of New York against the Company, our Chief Executive Officer, our President, and our Chief Financial Officer. The complaint alleged that the registration statement filed in connection with the Company’s initial public offering (“IPO”) and the Company’s second and third quarter 2021 earnings calls contained materially false and misleading information in violation of the federal securities laws. On October 20, 2022, the court entered an order appointing Humberto Lozada as lead plaintiff in the lawsuit. On December 16, 2022, lead plaintiff filed an amended complaint, alleging additional misstatements in certain of the Company’s 2021 earnings releases filed on Form 8-K and at an investor conference, and asserting additional securities claims, including against members of TaskUs’s Board of Directors as well as BCP FC Aggregator L.P. The complaint sought unspecified damages and an award of costs and expenses, including reasonable attorneys’ fees, as well as equitable relief. On February 17, 2023, TaskUs and the other named defendants filed a motion to dismiss. On October 16, 2023, the plaintiffs voluntarily dismissed with prejudice certain claims based on certain theories of liability. On February 24, 2025, the Company entered into a Stipulation and Agreement of Settlement (the “Settlement Agreement”), which the Court preliminarily approved on June 13, 2025. A settlement hearing took place on October 16, 2025. On December 4, 2025, the Court granted final approval of the settlement and entered a judgment pursuant to the settlement. The Settlement Agreement includes a combined payment by defendants of $ 17.5 million, inclusive of plaintiffs’ attorneys’ fees and expenses, and a full and complete release of all claims. The Company's insurance retention and policies fully funded the settlement amount in July 2025. The defendants entered into the Settlement Agreement solely to eliminate the burden, expense, uncertainty, and risk of further litigation and have denied, and continue to deny, any and all allegations of liability or wrongdoing. On January 15, 2025, putative TaskUs stockholder James Eaton filed a derivative lawsuit in the Court of Chancery of the State of Delaware, captioned Eaton v. Maddock, et al. (C.A. No. 2025-0043-NAC), purportedly on behalf of the Company against certain current and former members of its Board of Directors. Eaton previously delivered a demand pursuant to 8 Del. C. §220 on TaskUs on July 3, 2024, which the Company responded to on September 16, 2024. The Eaton complaint includes allegations similar to those in the Lozada case and asserts a claim for breach of fiduciary duty. In particular, the complaint alleges that TaskUs’s public filings included misstatements regarding its low employee attrition rate and high Glassdoor rating in the lead-up periods to the Company’s IPO and secondary public offering in October 2021 (“SPO”). The complaint includes one count for breach of fiduciary duty and alleges that because of TaskUs’s breach, the Company has suffered damages in the form of: (1) legal fees associated with the Lozada litigation; (2) loss of reputation and goodwill; (3) costs associated with investigations into the misstatement allegations; (4) money used to facilitate the IPO and SPO; (5) insider profits derived from the IPO and SPO; and (6) loss of Company revenue and profits. On June 5, 2025, the parties moved to stay the action, which the Court granted on June 6, 2025. The Company is unable to predict, with a reasonable degree of certainty, the likely outcome of this litigation. On March 6, 2025, putative TaskUs stockholder Kalvin Tucker filed a derivative lawsuit in the United States District Court for the Southern District of New York, captioned Tucker v. Dixit, et al. (No. 25-cv-01875), purportedly on behalf of the Company against certain current and former members of its Board of Directors. The Tucker complaint includes allegations that are substantially similar to those in the Eaton case and asserts claims for contribution, breach of fiduciary duty, aiding and abetting breaches of fiduciary duty, unjust enrichment, and waste. On June 10, 2025, the parties moved to stay the action, which the Court granted on June 11, 2025. The Company is unable to predict, with a reasonable degree of certainty, the likely outcome of this litigation. On May 27, 2025, a purported class action captioned Nelson Estrada, individually and on behalf of all others similarly situated v. TaskUs, Inc., was filed in the United States District Court for the Southern District of New York against the Company. An amended complaint was filed on September 16, 2025 that added additional plaintiffs Allen Joo, Tiba Parsa, Tim Reynolds, and Craig Burson. The amended complaint alleges that plaintiffs’ data was implicated in a Coinbase data breach announced on May 14, 2025, that the breach involved TaskUs employees providing overseas support services to Coinbase who improperly accessed information related to his account, and that a subset of the plaintiffs had cryptocurrency assets stolen in ways that they allege was related to the breach. The amended complaint asserts claims for negligence, negligent hiring/supervision, conversion, fraud, breach of implied contract, unjust enrichment, declaratory and injunctive relief, violation of the unfair and deceptive trade law statutes of various states, and violation of the California Consumer Privacy Act. Plaintiff seeks to certify a class of all persons in the United States whose personally identifiable information was compromised in the Coinbase data breach, as well as a similarly defined California sub-class, and a sub-class of individuals whose cryptocurrency assets were stolen by those who received personally identifiable information as a result of the breach. Plaintiffs request damages, pre- and post-judgment interest, attorneys’ fees, and any other relief allowable under law. On October 30, 2025, the Company filed a motion to dismiss the amended complaint, which is currently pending. The Company is unable to predict, with a reasonable degree of certainty, the likely outcome of this litigation. 82 Table of Contents On October 24, 2025, an amended complaint was filed in the consolidated proceedings captioned In re Coinbase Customer Data Security Breach Litigation in the United States District Court for the Southern District of New York. This action contains multiple proceedings that were originally filed against Coinbase and were subsequently consolidated into a single multi-district litigation. The amended complaint named the Company as a defendant, in addition to Coinbase Global, Inc., Coinbase, Inc., and ten “John Doe” defendants to represent currently unknown other entities, and alleged that plaintiffs’ data was implicated in a Coinbase data breach announced on May 14, 2025 and that the breach involved TaskUs employees providing overseas support services to Coinbase who improperly accessed information related to his account. The amended complaint asserted claims against both the Company and Coinbase for negligence, gross negligence, breach of implied contract, unjust enrichment, violations of the statutes of various states that require timely notice be provided following a data breach, and violations of the consumer protection statutes of various states. The amended complaint also brought claims for breach of fiduciary duty and declaratory judgment that are directed at Coinbase. Plaintiffs sought to certify a class of all persons in the United States whose personally identifiable information was compromised in the Coinbase data breach, as well as similarly defined sub-classes for California, Colorado, Maine, Massachusetts, New York, South Carolina, Texas, Washington, and Wisconsin. Plaintiffs requested damages, pre- and post-judgment interest, attorneys’ fees, and any other relief allowable under law. On January 15, 2026, a Consolidated Class Action Complaint was filed, removing TaskUs as a defendant. Accordingly, no claims against the Company remain in this litigation. On September 16, 2022, a lawsuit captioned My Choice Software, LLC vs. TaskUs, Inc., Tassilo Heinrich, Shopify, Inc., Shopify Holdings (USA) Inc., Shopify (USA) Inc., Does 1-50, No. 22-cv-1710 was filed in the United States District Court, Central District of California. The complaint alleges the defendants profited off of the plaintiff's information in connection with a 2020 Shopify data breach. The complaint seeks unspecified damages and an award of costs and expenses, including reasonable attorneys’ fees, as well as equitable and injunctive relief. On February 13, 2023, the Company filed a motion to dismiss the amended complaint. In May 2023, the Court issued an Order dismissing certain parties, staying the case as to the Company and denying as moot the Company's previously filed motion to dismiss. This case is currently stayed. The Company is unable to predict, with a reasonable degree of certainty, the likely outcome of this litigation. Indemnification In addition, in the ordinary course of business, the Company enters into agreements of varying scope and terms pursuant to which we agree to indemnify clients, vendors and other business partners with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, cybersecurity breach, services to be provided by us or from intellectual property infringement claims made by third parties. Historically, we have not experienced significant losses on these types of indemnification obligations; however, the Company may incur significant losses related to such indemnification obligations in the future. 11. Stock-Based Compensation Stock Plans 2019 Stock Incentive Plan On April 16, 2019, the Company established an equity incentive plan pursuant to which the Company has granted option awards to selected executives and other key employees (the “2019 Plan”) . The option awards contain service, market and performance conditions. Stock options under this plan contingently vest over a period of two years in the event of a change in control and over a period of three years in the event of an initial public offering (“IPO”) (each as defined in such plan), with the vesting period beginning on the date of the performance event so long as the holder remains employed. The amount of options eligible for vesting is contingent upon Blackstone’s return on invested capital in the Company. These options have contractual lives of 10 years . As amended, the Company reserved 7,597,730 common shares for issuance under the 2019 Plan. Following the IPO and establishment of the 2021 Plan, defined below, it is not expected that any additional awards will be issued under the 2019 Plan. 2021 Omnibus Incentive Plan On June 10, 2021, the Company adopted the 2021 Omnibus Incentive Plan (the “2021 Plan” and, together with the 2019 Plan, the “Incentive Plans”), which provides for the issuance of non-qualified stock options, incentive stock options, stock appreciation rights (“SARs”), restricted shares of Class A common stock, restricted stock units (“RSUs”), or other equity-based or cash-based awards. The stock options are subject to service-based vesting conditions and generally vest quarterly or annually ove r three to four years and expire 10 years from the date of the grant. The RSUs are typically subject to service-based vesting conditions and generally vest in quarterly or annual installments over two to four years . As of December 31, 2025, the total number of shares available for future grants under the 2021 Plan was 6,154,841 , subject to automatic annual evergreen increases. 83 Table of Contents Employee Stock Purchase Plan The Company adopted the TaskUs, Inc. 2022 Employee Stock Purchase Plan (the “ESPP”) on June 14, 2022. Under the ESPP, eligible employees may purchase a limited number of shares of our Class A common stock at the lesser of 85 % of the market value on the enrollment date or 85 % of the market value on the purchase date. As of December 31, 2025, n o shares were issued through the ESPP. As of December 31, 2025, the total number of shares available for issuance under the ESPP was 5,000,000 . Stock Options The following table summarizes the stock option activity for the year ended December 31, 2025: Number of options Weighted-average exercise price Weighted-average remaining contractual term (years) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2025 4,846,497 $ 18.58 6.4 $ 17,505 Granted — $ — Exercised ( 1,204,184 ) $ 7.13 Forfeited, cancelled or expired ( 42,325 ) $ 37.81 Outstanding at December 31, 2025 3,599,988 $ 22.19 5.7 $ 3,040 Vested and exercisable at December 31, 2025 3,276,634 $ 22.28 5.6 $ 3,040 Vested and exercisable at December 31, 2025 and expected to vest thereafter 3,599,988 $ 22.19 5.7 $ 3,040 There were no stock options granted during the years ended December 31, 2025 and 2024. The weighted-average grant-date fair value of options granted during the year ended December 31, 2023 was $ 8.85 . The total pre-tax intrinsic value of the options exercised during the years ended December 31, 2025, 2024, and 2023 was $ 11.5 million, $ 12.6 million, and $ 1.3 million respectively. Options granted to employees contain service conditions that affect vesting. The Company uses the Black-Scholes option pricing model to estimate the grant date fair value of stock options with service conditions with the following assumptions: Year ended December 31, 2023 Dividend yield (%) 0 % Expected volatility (%) 36 - 45 % Risk-free interest rate (%) 3.6 - 4.2 % Expected term (years) 5.5 - 6.5 The assumptions used in the Black-Scholes model, other than the fair value of the Company’s common stock, are estimated as follows: • Expected dividend yield: Zero percent, as the Company does not anticipate paying dividends on its common stock. • Expected volatility: Based on a blended volatility of the Company’s historic stock price volatility and the historical stock price volatility of comparable publicly-traded companies in its peer group and the implied volatility of its assets and current leverage. • Risk-free interest rate: Based on the U.S. Treasury yield curve in effect at the time of grant. • Expected term: Estimated based on the simplified method as the Company does not have adequate historical data. 84 Table of Contents RSUs The following table summarizes the RSU activity for the year ended December 31, 2025: Number of RSUs Weighted-average grant date fair value Outstanding at January 1, 2025 4,309,358 $ 17.50 Granted 1,861,817 $ 13.37 Released ( 2,098,537 ) $ 20.30 Cancelled ( 501,959 ) $ 15.63 Unvested and Outstanding at December 31, 2025 3,570,679 $ 13.96 The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2024 and December 31, 2023 was $ 12.66 and $ 16.66 , respectively. The total pre-tax intrinsic value of the RSUs released during the years ended December 31, 2025, 2024, and 2023 was $ 31.0 million, $ 23.9 million, and $ 15.4 million, respectively. Performance Stock Units (“PSUs”) The following table summarizes the PSU activity for the year ended December 31, 2025: Number of PSUs Weighted-average grant date fair value Outstanding at January 1, 2025 3,693,417 $ 4.67 Granted 396,198 $ 13.15 Released ( 80,000 ) $ 11.92 Cancelled ( 3,373,417 ) $ 4.02 Unvested and Outstanding at December 31, 2025 (1) 636,198 $ 12.51 (1) Includes PSUs for which the performance period has ended, but remain subject to formal certification and approval by the Compensation Committee of the Board of Directors on December 31, 2025. Upon formal certification of performance targets in the first quarter of 2026, 74,914 PSUs were released and 50,795 PSUs were cancelled. The total pre-tax intrinsic value of the PSUs released during the year ended December 31, 2025 was $ 1.3 million . There were no PSUs released during the years ended December 31, 2024 and 2023. The Company granted 396,198 PSUs during 2025 , which vest contingently over three years subject to continued service and the achievement of certain Revenue and Adjusted EBITDA targets (performance conditions). The Company granted 320,000 PSUs during 2024 with a weighted-average grant date fair value of $ 11.58 . The majority of which vest contingently in annual installments over three years subject to continued service and the achievement of certain stock price CAGR targets (market conditions). The remaining PSUs vest contingently over three years subject to continued service and the achievement of certain New Business Annual Contract Value targets (performance conditions). The grant date fair value of the PSUs with market conditions granted during 2024 were estimated using the Monte Carlo simulation method with the following assumptions: Dividend yield (%) 0 % Expected volatility (%) 75 % Risk-free interest rate (%) 4.7 %- 5.1 % The Company granted 3,307,060 PSUs in June 2021, which vest contingently in annual installments over four years subject to continued service and the achievement of certain enterprise value compound annual growth rate ("CAGR") targets (market conditions). The Company granted 66,357 PSUs in August 2021, which vest contingently in four years subject to continued service and the achievement of certain market capitalization CAGR targets (market conditions). None of these PSUs met their performance targets and all were cancelled during 2025. 85 Table of Contents Stock-Based Compensation Expense The following table summarizes the components of stock-based compensation expense recognized in the Company’s consolidated statements of income for the periods presented: Year ended December 31, (in thousands) 2025 2024 2023 Cost of services $ 1,061 $ 2,182 $ 3,269 Selling, general, and administrative expense 28,598 39,639 49,490 Total $ 29,659 $ 41,821 $ 52,759 For the year ended December 31, 2025, there was $ 0.2 million, $ 17.6 million and $ 0.8 million of unrecognized compensation expense related to the Company’s unvested stock options, RSUs and PSUs, respectively, that is expected to be recognized over a weighted-average period of 0.2 years, 1.4 years and 1.3 years. Certain PSUs contain performance conditions, which may result in a different amount of expense recognized over the term of the awards. The tax benefits recognized in the consolidated statements of income for stock-based compensation expense, including the impact of exercises and releases, were $ 3.6 million, $ 0.5 million, and $ 0.8 million for the years ended December 31, 2025, 2024, and 2023, respectively. 12. Income Taxes The components of income before income taxes consists of the following, for the periods indicated: Year ended December 31, (in thousands) 2025 2024 2023 United States $ 78,622 $ 33,595 $ 25,009 Foreign 58,052 40,586 50,023 Income before income taxes $ 136,674 $ 74,181 $ 75,032 The provision for income taxes consists of the following, for the periods indicated: Year ended December 31, (in thousands) 2025 2024 2023 Current: Federal $ 16,828 $ 16,716 $ 20,676 State 4,750 5,044 6,328 Foreign 20,294 17,440 10,297 Total current tax expense 41,872 39,200 37,301 Deferred: Federal ( 3,725 ) ( 6,706 ) ( 8,377 ) State ( 821 ) ( 386 ) ( 1,060 ) Foreign ( 2,927 ) ( 3,797 ) 1,478 Total deferred tax benefit ( 7,473 ) ( 10,889 ) ( 7,959 ) Total provision for income taxes $ 34,399 $ 28,311 $ 29,342 86 Table of Contents The following table presents the tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of the dates indicated: (in thousands) December 31, 2025 December 31, 2024 Deferred Tax Assets Accruals $ 4,853 $ 8,317 Allowances and reserves 209 307 Intercompany payable 2,539 2,139 State taxes 645 810 Stock-based compensation expense 7,468 7,720 Deferred revenue 740 840 Operating lease liabilities 6,733 1,698 Fixed assets 10,872 7,254 Section 267 - Intercompany Payable 4,283 3,757 Other capitalized costs 3,679 3,147 Other 1,174 1,620 Gross deferred tax assets 43,195 37,609 Valuation allowance ( 907 ) — Total deferred tax assets $ 42,288 $ 37,609 Deferred Tax Liabilities Intangibles ( 36,312 ) ( 40,604 ) Operating lease right-of-use assets ( 5,570 ) ( 1,644 ) Unrealized foreign exchange gain/loss ( 762 ) 147 Other ( 1,582 ) ( 4,123 ) Total deferred tax liabilities $ ( 44,226 ) $ ( 46,224 ) Net deferred tax liabilities $ ( 1,938 ) $ ( 8,615 ) The Company assessed the available positive and negative evidence to estimate whether it was more likely than not that some portion, or all, of the deferred tax assets would be realized. Based on the level of historical taxable income and projections for future taxable income over the periods during which the Company’s deferred tax assets are deductible, management believes that it is more likely than not that the Company will realize the benefits of its deductible temporary differences and carry forwards, net of the existing valuation allowances as of December 31, 2025. As of December 31, 2025 , federal net operating loss carryforwards of subsidiaries in the Philippines and United Kingdom amounted to $ 0.8 million . Our United Kingdom net operating loss can be carried forward for an indefinite period. Our net operating losses in the Philippines can be carried forward until 2028. As of December 31, 2025 , our U.S. federal foreign tax credit of $ 0.2 million will expire between 2031 and 2035. 87 Table of Contents The following is a reconciliation stated as a percentage of pretax income of the U.S. federal statutory income tax rate (21%) to the Company’s effective tax rate: Year ended December 31, 2025 2024 2023 Federal tax rate 21 % 21 % 21 % State taxes, net of federal benefit 2 4 4 Nondeductible officers’ compensation 2 4 6 Global Intangible Low Tax Income (GILTI) 3 5 12 Foreign Derived Intangible Income (FDII) ( 2 ) ( 3 ) ( 2 ) Return to accrual adjustment — 4 1 Nondeductible litigation costs — 4 — Stock-based compensation expense ( 1 ) — 7 Foreign jurisdiction income tax holiday — — ( 2 ) Foreign tax credit ( 3 ) ( 4 ) ( 10 ) Foreign tax rate differential — — ( 4 ) Tax credits — ( 1 ) ( 1 ) Reserves for tax contingencies 2 2 4 Earn-out consideration — — 2 Other adjustments 1 2 1 Effective tax rate 25 % 38 % 39 % The Company operates under tax holidays in the Philippines, which were effective through December 31, 2025, and may be extended for certain sites, if certain additional requirements are satisfied. The tax holidays are conditional upon the Company meeting certain employment and investment thresholds. The impact of these tax holidays decreased foreig n taxes by $ 4.3 million, $ 3.2 million and $ 5.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. The benefit of the tax holidays on net income per share (diluted) was $ 0.05 , $ 0.03 and $ 0.05 for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, unremitted earnings of the subsidiaries outside of the U.S. were approximately $ 418.6 million, which the Company has not made a provision for U.S. or additional foreign withholding taxes and state taxes. The Company’s practice and intention are to indefinitely reinvest these earnings outside the U.S. Determination of the amount of any unrecognized deferred income tax liability on this temporary difference is not practicable because of the complexities of the hypothetical calculation. Members of the Organisation for Economic Co-operation and Development (the “OECD”) have agreed in principle to a global minimum tax of 15% of reported profits (“Pillar Two”). The OECD have published model rules on Pillar Two. Many countries have now incorporated Pillar Two model rule concepts into their domestic laws. On January 5, 2026, the OECD/G20 announced the Side-by-Side (“SbS”) package, implemented as administrative guidance and modifying the operation of Pillar Two rules. The package introduces simplifications and new safe harbors for U.S. and other multinational companies where domestic and international tax systems meet robust requirements to coexist with Pillar Two which would fully exempt U.S.-parented groups from the application of two of the three Pillar Two top up taxes. We continue to review the impact of Pillar Two in light of legislative changes in multiple countries. For the year ended December 31, 2025, the impact of Pillar Two rules on the effective tax rate of the Company was immaterial. Pursuant to introduction of SbS package, we anticipate that Pillar Two rules will not have any material impact on the tax expense of the Company for future years. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA permanently extends certain elements of the Tax Cuts and Jobs Act of 2017, revises international tax frameworks, and reinstates favorable tax treatment for certain business-related items. The Company has evaluated the provisions of the OBBBA and concluded that its enactment did not have a material impact on its consolidated financial statements or results of operations for the year ended December 31, 2025 . 88 Table of Contents A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows: Year ended December 31, (in thousands) 2025 2024 Uncertain tax benefit balance as of beginning of period $ 6,039 $ 4,229 Gross increases (decreases) - tax positions for current period 2,181 2,021 Gross increases (decreases) - tax position in prior periods 502 ( 211 ) Uncertain tax benefit balance as of end of period $ 8,722 $ 6,039 As of December 31, 2025, the Company had approximately $ 8.7 million of unrecognized tax benefits that if recognized would affect the effective income tax rate. The Company estimates no material changes to its uncertain tax positions within the next 12 months. The Company recognizes interest and penalties related to uncertain tax positions as components of provision for income taxes. As of December 31, 2025, the Company accrued interest and penalties of $ 0.5 million and $ 0.1 million, respectively. The Company files income tax returns in US federal and state jurisdictions, as well as the foreign jurisdictions it operates in, including the Philippines, Canada, India, Greece, Mexico, Taiwan, the United Kingdom, Ireland, Colombia, Japan, Malaysia, Poland, Romania, Croatia, Serbia, Egypt and South Africa. As of December 31, 2025, the tax years 2020 to 2024 are subject to examination by tax authorities. 13. Shareholders’ Equity Conversion from Class B to Class A Common Stock On May 23, 2025, the Co-Founders and Blackstone converted 15,000,000 shares of Class B common stock to Class A common stock. Amendment and Restatement of Certificate of Incorporation The Company’s amended and restated certificate of incorporation authorized three classes of ownership interests: (i) 250,000,000 shares of preferred stock, par value $ 0.01 per share, (ii) 2,500,000,000 shares of Class A common stock, par value $ 0.01 per share, and (iii) 250,000,000 shares of Class B common stock, par value $ 0.01 per share. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, transfer and conversion rights. Voting Rights— Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to ten votes per share and is convertible into one share of Class A common stock at any time or automatically upon certain conditions but no later than June 10, 2028 ( seven years following the filing and effectiveness of the amended and restated certificate of incorporation). Dividend Rights— Subject to any preferential rights of any then outstanding preferred stock, all shares of our common stock are entitled to share equally, on a per share basis, in any dividends our Board of Directors may declare from legally available sources; provided, however, that in the event a dividend is paid in the form of shares of Class A common stock or Class B common stock, then holders of Class A common stock shall be entitled to receive shares of Class A common stock and holders of Class B common stock shall be entitled to receive shares of Class B common stock. The Company has no current plans to pay regular dividends on our common stock. Any decision to declare and pay dividends in the future will be made at the sole discretion of our Board of Directors and will depend on, among other things, our results of operations, cash requirements, financial condition, contractual restrictions and other factors that our Board of Directors may deem relevant. Because we are a holding company and have no direct operations, we will only be able to pay dividends from funds we receive from our subsidiaries. In addition, our ability to pay dividends is limited by covenants in our existing indebtedness and may be limited by the agreements governing any indebtedness we or our subsidiaries may incur in the future. Liquidation Rights— Upon our liquidation, dissolution or winding up, whether voluntary or involuntary, after payment of the debts and other liabilities of the Company and subject to the rights, if any, of the holders of any outstanding series of preferred stock or any class or series of stock having a preference over or the right to participate with the common stock, the holders of all outstanding shares of Class A common stock and Class B common stock shall be entitled to receive the remaining assets of the Company available for distribution to its shareholders ratably in proportion to the number of shares held by each such shareholder. 89 Table of Contents 14. Earnings Per Share The Company has Class A common stock and Class B common stock outstanding. Because the only difference between the two classes of common stock are related to voting, transfer and conversion rights, the Company has not presented earnings per share under the two-class method, as earnings per share are the same for both Class A common stock and Class B common stock. The following table summarizes the computation of basic and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023: Year ended December 31, (in thousands, except share and per share data) 2025 2024 2023 Numerator: Net income available to common shareholders $ 102,275 $ 45,870 $ 45,690 Denominator: Weighted-average common shares outstanding - basic 90,026,126 88,912,835 93,938,931 Effect of dilutive securities 2,999,063 3,391,435 2,234,140 Weighted-average common shares outstanding - diluted 93,025,189 92,304,270 96,173,071 Net income per common share: Basic $ 1.14 $ 0.52 $ 0.49 Diluted $ 1.10 $ 0.50 $ 0.48 The Company excluded 3,149,523 , 3,296,636 and 5,719,465 potential common stock equivalents from the computation of diluted EPS for the years ended December 31, 2025, 2024 , and 2023, respectively, because the effect would have been anti-dilutive. As of December 31, 2025, 2024, and 2023, there were 561,288 , 3,408,972 and 4,296,539 potential common stock equivalents outstanding, respectively, with market or performance conditions which were not met at the relevant date, that were excluded from the calculation of diluted EPS. 15. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following: (in thousands) Foreign Currency Translation Adjustments Retirement Benefit Reserves Unrealized Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Balance as of December 31, 2023 $ ( 9,705 ) $ 154 $ — $ ( 9,551 ) Other comprehensive loss before reclassifications ( 11,954 ) ( 727 ) ( 4,219 ) ( 16,900 ) Income tax effects — 243 886 1,129 Amounts reclassified from accumulated other comprehensive loss — ( 96 ) — ( 96 ) Income tax effects — 29 — 29 Other comprehensive loss ( 11,954 ) ( 551 ) ( 3,333 ) ( 15,838 ) Balance as of December 31, 2024 ( 21,659 ) ( 397 ) ( 3,333 ) ( 25,389 ) Other comprehensive income (loss) before reclassifications ( 2,513 ) 1,816 7,555 6,858 Income tax effects — ( 517 ) ( 1,461 ) ( 1,978 ) Amounts reclassified from accumulated other comprehensive loss — ( 108 ) ( 5,094 ) ( 5,202 ) Income tax effects — 31 985 1,016 Other comprehensive income (loss) ( 2,513 ) 1,222 1,985 694 Balance as of December 31, 2025 $ ( 24,172 ) $ 825 $ ( 1,348 ) $ ( 24,695 ) 90 Table of Contents 16. Segment Information The following table presents the significant expenses for the Company’s single segment: Year ended December 31, 2025 2024 2023 Operating expenses: Personnel costs (Cost of services) (1) $ 615,236 $ 505,448 $ 457,937 Operating costs (Selling, general, and administrative expense) (2) 201,283 183,970 170,517 Stock-based compensation expense (3) 30,404 42,391 53,179 Non-operating costs (Selling, general, and administrative expense) (4) 14,282 15,423 8,108 Other (Cost of services) (5) 120,044 95,251 77,527 Depreciation 41,164 40,223 40,391 Amortization of intangible assets 19,983 19,935 20,346 Loss (gain) on disposal of assets 525 ( 80 ) 1,322 Total operating expenses $ 1,042,921 $ 902,561 $ 829,327 (1) Represents salaries and wages and employee welfare costs, excluding stock-based compensation expense, of employees that can be directly attributed to the delivery of services. (2) Represents operating costs related to sales and marketing and other administrative departments, including personnel costs (excluding stock-based compensation expense), professional fees, travel expenses, cloud-based capabilities, insurance premiums and other corporate expenses. (3) Represents stock-based compensation expense for cost of services and selling, general, and administrative expense, as well as associated payroll tax. (4) Includes operational efficiency costs and transaction costs in 2025, certain litigation costs that are considered non-recurring and outside of the ordinary course of business in 2024 and professional service fees related to non-recurring transactions in 2023. (5) Represents other costs that can be directly attributed to delivery of services, including the costs for sites and technology, recruiting, professional development and employee engagement. 17. Subsequent Events On February 25, 2026, the Board of Directors declared a special cash dividend of $ 3.65 per share, payable on March 25, 2026 (the “Special Dividend”). The Special Dividend, estimated to be approximately $ 333.0 million in the aggregate, will be funded by proceeds of the New Credit Facilities (as defined below) and cash on the Company’s balance sheet. To finance the Special Dividend and address its upcoming 2027 debt maturities, the Company has secured commitments for a comprehensive refinancing of its existing credit facility, which refinancing includes a $ 500.0 million term loan facility and $ 100.0 million revolving credit facility (together, the “New Credit Facilities”), each maturing in March 2031. Borrowings under the New Credit Facilities will bear interest, at the Company’s option, at a rate equal to Term SOFR (with a floor of 0.00 %) plus 2.75 % , or an alternate base rate (with a floor of 1.00 %) plus 1.75 % . 91 Table of Contents Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure None.