LOS ANGELES, Sept. 08, 2026 (GLOBE NEWSWIRE) -- ServiceTitan (NASDAQ: TTAN), the software platform that powers the trades, today announced financial results for the fiscal second quarter ended July 31, 2026.
“Our strong momentum delivering the Agentic Operating System to the Trades resulted in 21% year-over-year revenue growth and over $50 million of non-GAAP free cash flow this quarter,” said Ara Mahdessian, Co-Founder and CEO. “Delivering this Agentic Operating System to our customers and leveraging AI to further enhance our organizational velocity are once in a lifetime opportunities to execute against.”(1)
“Our organizational velocity is improving and our investments in AI are delivering,” said Vahe Kuzoyan, Co-Founder and President, “We exceeded our goal of doubling Max locations during Q2. As a result of strong execution with existing customers and progress with select new customers, we now expect to end this fiscal year with over 700 enrolled Max locations.”
Fiscal Second Quarter 2027 Financial and Operational Highlights:
Fiscal Second Quarter 2027 Fiscal Second Quarter 2026 (in millions, except percentages and GTV)Gross transaction volume (“GTV”) (in billions)(2) $26.8 $22.9YOY GTV growth 17% 19% Total revenue $292.8 $242.1YOY revenue growth 21% 25%Platform revenue $284.5 $232.7YOY platform revenue growth 22% 26% GAAP loss from operations ($27.6) ($34.8)GAAP operating margin -9.4% -14.4%Non-GAAP income from operations(1) $44.4 $29.2Non-GAAP operating margin(1) 15.2% 12.1% GAAP net cash provided by operating activities $58.0 $40.3Non-GAAP free cash flow(1) $50.5 $34.3 Net dollar retention > 110% > 110%_________________________
(1) This press release uses non-GAAP financial measures that adjust GAAP financial measures for the impact of various items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “GAAP to Non-GAAP Reconciliation” below for additional information.
(2) Gross Transaction Volume (“GTV”) represents the sum of total dollars invoiced by our customers through the ServiceTitan platform in a given period, which is intended to be a proxy for the total revenue our customers generate.
Fiscal Third Quarter and Fiscal Year 2027 Financial Outlook:
For fiscal third quarter 2027 and for the full fiscal year 2027, the company currently expects:
_________________________
(3) ServiceTitan is not able, at this time, to provide an outlook for GAAP loss from operations or a reconciliation of expected non-GAAP income from operations to GAAP loss from operations for the fiscal third quarter 2027 or for the full fiscal year 2027 because of the difficulty of estimating certain items excluded from non-GAAP income from operations that cannot be reasonably calculated or predicted without unreasonable efforts. For example, charges related to stock-based compensation expense require additional inputs, such as the number and value of awards granted, that are not currently ascertainable.
Conference Call Information:
The financial results and business highlights will be discussed on a conference call and webcast scheduled at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Tuesday, September 8, 2026. Online registration for this conference call can be found here. The live webcast of the conference call can be accessed from ServiceTitan’s investor relations website at http://investors.servicetitan.com. Prepared remarks for the conference call have been made available on ServiceTitan’s investor relations website concurrently with this release.
Following completion of the events, a webcast replay will also be available at http://investors.servicetitan.com for 12 months.
About ServiceTitan
ServiceTitan is AI for the trades — a purpose-built agentic operating system designed to automate the workflows that run a contracting business, from enterprise commercial construction to residential field service, exteriors and beyond. The company’s end-to-end solution gives contractors the tools they need to run and grow their business, while providing a stellar customer experience. Learn how ServiceTitan is equipping tradespeople with the AI technology they need to keep the world running at: www.servicetitan.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” or “will,” or the negative of these words or other similar terms or expressions that concern ServiceTitan’s expectations, strategy, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding ServiceTitan’s financial outlook for total revenue and non-GAAP income from operations for fiscal third quarter 2027 ending October 31, 2026 and the full fiscal year ending January 31, 2027, and statements regarding our ability to fully capitalize on bringing AI, including Max, to the trades, our operating and organizational velocity, AI strategy, and plans for Max. ServiceTitan’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for fiscal first quarter 2027 ended April 30, 2026 as filed with the SEC on June 5, 2026, which should be read in conjunction with this press release and the financial results included herein. Additional information will be set forth in our Quarterly Report on Form 10-Q for the fiscal second quarter 2027 ended July 31, 2026. The forward-looking statements in this release are based on information available to ServiceTitan as of the date hereof, and ServiceTitan undertakes no obligation to update any forward-looking statements, except as required by law.
Press Contact
Max Wertheimer
ServiceTitan, Inc.
[email protected]
Investor Contact
Jason Rechel
ServiceTitan, Inc.
[email protected]
© 2026 ServiceTitan. All rights reserved. ServiceTitan, the ServiceTitan logo, and all ServiceTitan product and service names mentioned herein are registered trademarks or unregistered trademarks of ServiceTitan, Inc. in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)
Three Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 Revenue: Platform $284,496 $232,726 $545,060 $440,708 Professional services and other 8,260 9,397 16,520 17,107 Total revenue 292,756 242,123 561,580 457,815 Cost of revenue: Platform 60,521 51,991 116,030 102,028 Professional services and other 23,166 18,783 42,690 36,042 Total cost of revenue 83,687 70,774 158,720 138,070 Gross profit 209,069 171,349 402,860 319,745 Operating expenses: Sales and marketing 76,973 69,544 150,045 138,767 Research and development 100,630 73,065 188,654 142,205 General and administrative 59,018 63,512 117,475 123,081 Total operating expenses 236,621 206,121 456,174 404,053 Loss from operations (27,552) (34,772) (53,314) (84,308)Other income (expense), net Interest expense (188) (2,057) (371) (4,092)Interest income 3,924 4,783 7,651 9,723 Other income, net 283 185 634 686 Total other income, net 4,019 2,911 7,914 6,317 Loss before income taxes (23,533) (31,861) (45,400) (77,991)Provision for income taxes 1,388 364 2,339 598 Net loss (24,921) (32,225) (47,739) (78,589)Net loss per share, basic and diluted $(0.26) $(0.35) $(0.50) $(0.86)Weighted-average shares used in computing net loss per share, basic and diluted 95,863,240 91,687,907 95,440,743 91,041,726 Disaggregated Revenue Three Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 Subscription $212,373 $174,753 $414,411 $337,470 Usage 72,123 57,973 130,649 103,238 Platform revenue 284,496 232,726 545,060 440,708 Professional services and other 8,260 9,397 16,520 17,107 Total revenue $292,756 $242,123 $561,580 $457,815
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
As of July 31, January 31, 2026 2026 Assets Current assets: Cash and cash equivalents $479,538 $428,769 Restricted cash — 166 Accounts receivable, net of allowance of $11,151 and $11,963 as of July 31, 2026 and January 31, 2026, respectively 69,883 55,974 Deferred contract costs, current 15,241 14,964 Contract assets 68,267 57,777 Prepaid expenses 30,207 25,894 Other current assets 7,242 7,314 Total current assets 670,378 590,858 Restricted cash, noncurrent 416 417 Deferred contract costs, noncurrent 13,092 14,748 Property and equipment, net 35,835 38,902 Operating lease right-of-use assets 19,409 18,627 Internal-use software, net 40,823 39,246 Intangible assets, net 157,036 176,743 Goodwill 860,250 860,250 Other assets 6,937 5,266 Total assets $1,804,176 $1,745,057 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and other accrued expenses $56,110 $52,262 Accrued personnel-related expenses 52,300 83,095 Deferred revenue, current 17,407 18,676 Operating lease liabilities, current 12,056 14,052 Other current liabilities 9,614 1,367 Total current liabilities 147,487 169,452 Operating lease liabilities, noncurrent 35,708 37,322 Other noncurrent liabilities 15,285 13,049 Total liabilities 198,480 219,823 Commitments and contingencies Stockholders' Equity Preferred stock, par value $0.001, 100,000,000 shares authorized as of July 31, 2026 and January 31, 2026. No shares issued and outstanding as of July 31, 2026 and January 31, 2026 — — Class A common stock, par value $0.001, 1,000,000,000 shares authorized as of July 31, 2026 and January 31, 2026. 83,857,202 shares and 81,956,537 shares issued and outstanding as of July 31, 2026 and January 31, 2026, respectively 83 82 Class B common stock, par value $0.001, 100,000,000 shares authorized as of July 31, 2026 and January 31, 2026. 12,605,018 shares and 12,644,614 shares issued and outstanding as of July 31, 2026 and January 31, 2026, respectively 13 13 Class C common stock, par value $0.001, 100,000,000 shares authorized as of July 31, 2026 and January 31, 2026. No shares issued and outstanding as of July 31, 2026 and January 31, 2026 — — Additional paid-in capital 2,918,922 2,790,722 Accumulated deficit (1,313,322) (1,265,583)Total stockholders' equity 1,605,696 1,525,234 Total liabilities and stockholders' equity $1,804,176 $1,745,057
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 Cash flows provided by operating activities Net loss $(24,921) $(32,225) $(47,739) $(78,589)Adjustments to reconcile net loss to net cash provided by operating activities Depreciation and amortization expense 19,898 20,035 39,448 39,990 Amortization of deferred contract costs 4,045 3,604 8,157 6,940 Non-cash operating lease expense 1,565 1,406 3,077 2,758 Stock-based compensation expense 60,575 49,307 115,149 93,056 Loss on impairment and disposal of assets 5 200 13 8,260 Deferred income taxes 1,138 679 1,952 1,325 Amortization of debt issuance costs — 128 — 248 Provision for credit losses 1,487 1,544 3,160 5,267 Changes in operating assets and liabilities, net of effect of business acquisition: Accounts receivable (8,009) (7,422) (17,069) (12,692)Prepaid expenses and other current assets (1,280) (10,217) (4,244) (8,546)Deferred contract costs (2,990) (4,425) (6,778) (10,164)Contract assets (3,714) (2,185) (10,490) (3,526)Other assets (43) 177 (2,304) 685 Accounts payable and other accrued expenses 421 (1,068) 3,843 2,933 Accrued personnel-related expenses 9,517 18,959 (29,344) (21,673)Operating lease liabilities (3,284) (3,013) (7,469) (6,166)Other liabilities 5,208 3,953 8,331 5,190 Deferred revenue (1,629) 903 (1,269) 474 Net cash provided by operating activities 57,989 40,340 56,424 25,770 Cash flows used in investing activities Capitalized internal-use software (4,761) (4,930) (11,424) (11,402)Purchase of property and equipment (1,108) (1,110) (1,704) (2,402)Deposits for property and equipment (1,665) — (2,421) — Net cash used in investing activities (7,534) (6,040) (15,549) (13,804)Cash flows provided by financing activities Proceeds from exercise of stock options 7,552 17,255 9,727 18,436 Payment of debt arrangements — (269) — (537)Payment of deferred initial public offering costs — (66) — (599)Net cash provided by financing activities 7,552 16,920 9,727 17,300 Net change in cash, cash equivalents, and restricted cash 58,007 51,220 50,602 29,266 Cash, cash equivalents, and restricted cash Beginning of period 421,947 420,892 429,352 442,846 End of period $479,954 $472,112 $479,954 $472,112
Statement Regarding Use of Non-GAAP Financial Measures
In addition to our results prepared in accordance with GAAP, we believe non-GAAP gross profit and non-GAAP gross margin, in total and for platform, and professional services and other, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP earnings per share (“EPS”) are useful in evaluating our operating performance.
These measures, however, have certain limitations in that they reflect the exercise of judgment by our management about which expenses are excluded or included and do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, our financial results determined in accordance with GAAP. We caution investors that amounts presented in accordance with our definition of non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP EPS may not be comparable to similar measures disclosed by other companies because not all companies and analysts calculate these measures in the same manner.
For the reasons set forth below, we believe that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures.
- Stock-based compensation expense and related employer payroll taxes. We exclude stock-based compensation expense, including the performance-based RSUs granted to our Co-Founders, and related employer payroll taxes to allow investors to make more meaningful comparisons of our performance between periods and to facilitate a comparison of our performance to those of other peer companies. Stock-based compensation may vary between periods due to various factors unrelated to our core performance, including as a result of the assumptions used in the valuation methodologies, timing and amount of grants and other factors. We exclude employer payroll taxes because the amounts vary based on timing and settlement or vesting of awards unrelated to our core operating performance. Moreover, stock-based compensation expense is a non-cash expense that we exclude from our internal management reporting processes and when assessing our actual performance, budgeting, planning, and forecasting future periods.
- Amortization of acquired intangible assets. We incur amortization expense for acquired intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of acquired intangible assets is a non-cash expense that is significantly affected by the timing and size of acquisitions, and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred, we exclude the amortization expense from our internal management reporting processes. We exclude these charges when assessing our actual performance and when budgeting, planning, and forecasting future periods. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well.
- Loss on operating lease assets. We have incurred impairments on certain right-of-use assets and other long-lived assets. We believe that it is useful to exclude these charges when assessing the level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. In addition, we believe excluding such costs enhances the comparability between periods.
- Acquisition-related items. From time to time, we may incur costs related to acquisitions, including legal, third-party valuation and due diligence, insurance costs, and one-time retention bonuses for employees of acquired companies. In addition, we periodically record the change to the fair value of contingent consideration related to past acquisitions. When applicable, we exclude these items when assessing our actual performance and when budgeting, planning and forecasting future periods. We believe excluding these items allows investors to make meaningful comparisons between our core results of operations and those of other peer companies.
Change in Non-GAAP Income Tax Rate Presentation
Effective February 1, 2026, the beginning of our first quarter of fiscal 2027, we adopted a fixed long-term projected non-GAAP tax rate in order to provide better consistency across interim reporting periods. When projecting the long-term non-GAAP tax rate, we utilize a financial projection that excludes the direct impact of the items excluded from GAAP income in calculating our non-GAAP income. The projected rate considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. For fiscal 2027, we determined the projected non-GAAP tax rate to be 18%, which reflects currently available information, as well as other factors and assumptions that may change over time. We will periodically re-evaluate this tax rate, as necessary, for significant events, relevant tax law changes, material changes in the forecasted geographic earnings mix, and any significant acquisitions.
Non-GAAP EPS
We define non-GAAP basic EPS as non-GAAP net income divided by weighted-average shares outstanding used in computing net loss per share attributable to common stockholders, basic. We define non-GAAP diluted EPS as non-GAAP net income divided by weighted-average shares outstanding giving effect to the weighted average of all potentially dilutive common stock equivalents outstanding for the period including options to purchase common stock, restricted stock units, and acquisition indemnity shares withheld. The dilutive effect of outstanding awards is reflected in non-GAAP diluted earnings per share by application of the treasury method.
Free Cash Flow
We define free cash flow, a non-GAAP measure, as GAAP net cash provided by operating activities less cash used for investing activities for capitalized internal use software and less cash paid for purchases of, and deposits for, property and equipment. We believe that free cash flow is a meaningful indicator of our sources of liquidity and capital requirements and provides information to management and investors that is useful in evaluating the cash flow trends of our business. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Free cash flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Other companies may calculate free cash flow or similarly titled non-GAAP measures differently, which could reduce the usefulness of free cash flow as a tool for comparison. In addition, free cash flow does not reflect mandatory debt service and other non-discretionary expenditures that are required to be made under contractual commitments and does not represent the total increase or decrease in our cash balance for any given period.
ServiceTitan, Inc.
GAAP to Non-GAAP Reconciliations
(unaudited)
Non-GAAP Gross Profit and Non-GAAP Gross Margin
Platform ProfessionalServices and Other Total Three Months Ended July 31, Three Months Ended July 31, Three Months Ended July 31, 2026 2025 2026 2025 2026 2025 (in thousands) GAAP gross profit $223,975 $180,735 $(14,906) $(9,386) $209,069 $171,349 Stock-based compensation expense and related employer payroll taxes 1,712 1,484 2,397 1,364 4,109 2,848 Amortization of acquired intangible assets 4,933 5,533 334 334 5,267 5,867 Non-GAAP gross profit $230,620 $187,752 $(12,175) $(7,688) $218,445 $180,064
Services and Other Total Three Months Ended July 31, Three Months Ended July 31, Three Months Ended July 31, 2026 2025 2026 2025 2026 2025 GAAP gross margin 78.7% 77.7% (180.5)% (99.9)% 71.4% 70.8%Stock-based compensation expense and related employer payroll taxes 0.6% 0.6% 29.0% 14.5% 1.4% 1.2%Amortization of acquired intangible assets 1.7% 2.4% 4.0% 3.6% 1.8% 2.4%Non-GAAP gross margin* 81.1% 80.7% (147.4)% (81.8)% 74.6% 74.4%
* Totals may not foot due to rounding.
Services and Other Total Six Months Ended July 31, Six Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 2026 2025 (in thousands) GAAP gross profit $429,030 $338,680 $(26,170) $(18,935) $402,860 $319,745 Stock-based compensation expense and related employer payroll taxes 3,440 2,882 3,985 2,748 7,425 5,630 Amortization of acquired intangible assets 9,866 11,066 668 668 10,534 11,734 Loss on operating lease assets — 960 — 751 — 1,711 Non-GAAP gross profit $442,336 $353,588 $(21,517) $(14,768) $420,819 $338,820
Services and Other Total Six Months Ended July 31, Six Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 2026 2025 GAAP gross margin 78.7% 76.8% (158.4)% (110.7)% 71.7% 69.8%Stock-based compensation expense and related employer payroll taxes 0.6% 0.7% 24.1% 16.1% 1.3% 1.2%Amortization of acquired intangible assets 1.8% 2.5% 4.0% 3.9% 1.9% 2.6%Loss on operating lease assets 0.0% 0.2% 0.0% 4.4% 0.0% 0.4%Non-GAAP gross margin* 81.2% 80.2% (130.2)% (86.3)% 74.9% 74.0%
* Totals may not foot due to rounding.
Non-GAAP Sales and Marketing Expense
Three Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 (in thousands) GAAP sales and marketing expense $76,973 $69,544 $150,045 $138,767 Stock-based compensation expense and related employer payroll taxes (8,053) (7,694) (14,672) (13,262)Amortization of acquired intangible assets (4,586) (5,515) (9,173) (11,030)Loss on operating lease assets — — — (1,765)Non-GAAP sales and marketing expense $64,334 $56,335 $126,200 $112,710
Non-GAAP Research and Development Expense
Non-GAAP General and Administrative Expense
Non-GAAP Income from Operations and Non-GAAP Operating Margin
* Totals may not foot due to rounding.
Non-GAAP Net Income
(4) Effective February 1, 2026, we adopted a fixed long-term projected non-GAAP tax rate of 18%, which reflects currently available information, as well as other factors and assumptions that may change over time.
Non-GAAP EPS
Free Cash Flow