ServiceTitan Announces Fiscal Second Quarter Financial Results
ServiceTitan (NASDAQ: TTAN), the software platform for trades, reported strong fiscal Q2 2026 results with significant growth across key metrics. Total revenue reached $242.1 million, up 25% year-over-year, while platform revenue grew 26% to $232.7 million.
The company's Gross Transaction Volume (GTV) increased 19% to $22.9 billion, and non-GAAP operating income improved to $29.2 million with a 12.1% margin. Free cash flow strengthened to $34.3 million, and net dollar retention remained above 110%.
Looking ahead, ServiceTitan projects Q3 2026 revenue of $237-239 million and full fiscal year 2026 revenue of $935-940 million. The company is seeing promising results in the large enterprise Commercial market following multi-year investments.
ServiceTitan (NASDAQ: TTAN), la piattaforma software per i mestieri, ha pubblicato solidi risultati per il fiscale Q2 2026 con una crescita significativa nelle metriche chiave. I ricavi totali hanno raggiunto $242,1 milioni, in aumento del 25% su base annua, mentre i ricavi della piattaforma sono cresciuti del 26% a $232,7 milioni.
Il Gross Transaction Volume (GTV) dell’azienda è salito del 19% a $22,9 miliardi e l’utile operativo non GAAP è migliorato a $29,2 milioni con un margine del 12,1%. Il free cash flow è salito a $34,3 milioni e la retention netta per dollaro è rimasta sopra il 110%.
Per il futuro, ServiceTitan prevede ricavi per il Q3 2026 tra $237-239 milioni e ricavi per l’intero esercizio 2026 tra $935-940 milioni. L’azienda sta ottenendo risultati promettenti nel mercato Commerciale enterprise dopo anni di investimenti.
ServiceTitan (NASDAQ: TTAN), la plataforma de software para oficios, presentó sólidos resultados del 2.º trimestre fiscal de 2026 con un crecimiento notable en métricas clave. Los ingresos totales alcanzaron $242,1 millones, un 25% más interanual, mientras que los ingresos de la plataforma crecieron un 26% hasta $232,7 millones.
El Gross Transaction Volume (GTV) de la compañía aumentó un 19% hasta $22,9 mil millones, y el resultado operativo non-GAAP mejoró hasta $29,2 millones con un margen del 12,1%. El flujo de caja libre se fortaleció hasta $34,3 millones y la retención neta de ingresos por cliente se mantuvo por encima del 110%.
De cara al futuro, ServiceTitan proyecta ingresos para el 3.º trimestre de 2026 entre $237-239 millones y para todo el año fiscal 2026 entre $935-940 millones. La compañía está registrando resultados prometedores en el mercado Comercial para grandes empresas tras años de inversiones.
ServiceTitan (NASDAQ: TTAN), 트레이드용 소프트웨어 플랫폼이 주요 지표 전반에서 의미 있는 성장과 함께 강력한 2026 회계연도 2분기 실적을 발표했습니다. 총매출은 전년 대비 25% 증가한 $2억4210만에 달했으며, 플랫폼 매출은 26% 늘어난 $2억3270만을 기록했습니다.
회사의 총거래액(GTV)은 19% 증가한 $229억을 기록했고, 비GAAP 영업이익은 $2920만으로 개선되며 12.1%의 마진을 보였습니다. 잉여현금흐름은 $3430만으로 강화되었고 순 달러 리텐션은 110%를 상회했습니다.
앞으로 ServiceTitan은 2026 회계연도 3분기 매출을 $237–239백만, 연간 매출을 $935–940백만으로 전망하고 있습니다. 다년간의 투자 후 대형 엔터프라이즈 상업 시장에서 유망한 성과가 나타나고 있습니다.
ServiceTitan (NASDAQ: TTAN), la plateforme logicielle pour les métiers, a annoncé de solides résultats pour le 2e trimestre fiscal 2026 avec une croissance marquée sur les indicateurs clés. Le chiffre d’affaires total a atteint 242,1 M$, en hausse de 25% sur un an, tandis que le chiffre d’affaires de la plateforme a progressé de 26% pour s’établir à 232,7 M$.
Le Gross Transaction Volume (GTV) de la société a augmenté de 19% pour atteindre 22,9 Md$, et le résultat d’exploitation non-GAAP s’est amélioré à 29,2 M$ avec une marge de 12,1%. Les flux de trésorerie disponibles se sont renforcés à 34,3 M$ et la rétention nette par dollar est restée au-dessus de 110%.
Perspectives : ServiceTitan prévoit un chiffre d’affaires pour le T3 2026 de 237–239 M$ et pour l’exercice 2026 de 935–940 M$. L’entreprise observe des résultats prometteurs sur le marché Commercial des grandes entreprises après des investissements pluriannuels.
ServiceTitan (NASDAQ: TTAN), die Softwareplattform für Handwerksbetriebe, meldete starke Geschäftsergebnisse für das Fiskalquartal Q2 2026 mit deutlichem Wachstum bei wichtigen Kennzahlen. Der Gesamtumsatz belief sich auf $242,1 Mio., ein Plus von 25% gegenüber dem Vorjahr, während der Plattformumsatz um 26% auf $232,7 Mio. stieg.
Das Gross Transaction Volume (GTV) des Unternehmens wuchs um 19% auf $22,9 Mrd., und das non-GAAP-Betriebsergebnis verbesserte sich auf $29,2 Mio. bei einer Marge von 12,1%. Der Free Cashflow stärke sich auf $34,3 Mio. und die Net Dollar Retention blieb über 110%.
Ausblick: ServiceTitan erwartet für Q3 2026 einen Umsatz von $237–239 Mio. und für das gesamte Geschäftsjahr 2026 $935–940 Mio.. Das Unternehmen erzielt nach mehrjährigen Investitionen vielversprechende Ergebnisse im großen Enterprise-Commercial-Markt.
- Revenue growth accelerated to 25% YoY, reaching $242.1 million
- Non-GAAP operating margin improved significantly to 12.1% from 7.0% YoY
- Free cash flow increased 83% YoY to $34.3 million
- Strong net dollar retention rate maintained at over 110%
- Platform revenue grew 26% YoY to $232.7 million
- GAAP operating loss widened to $34.8 million from $32.6 million YoY
- GTV growth decelerated to 19% from 23% in the previous year
Insights
ServiceTitan shows strong 25% revenue growth with improving profitability metrics despite slowing GTV growth, demonstrating operational leverage.
ServiceTitan delivered a solid fiscal Q2 with total revenue of
What's particularly impressive is the substantial improvement in profitability metrics. Non-GAAP operating income more than doubled to
The
The company maintains strong customer retention with net dollar retention remaining above
LOS ANGELES, Sept. 04, 2025 (GLOBE NEWSWIRE) -- ServiceTitan (NASDAQ: TTAN), the software platform that powers the trades, today announced financial results for the fiscal second quarter ended July 31, 2025.
“I am grateful for the way our team empowered our customers to perform during the seasonally strongest quarter for the trades,” said Ara Mahdessian, Co-Founder and CEO. “The quality and breadth of execution underscore our opportunity to transform the lives of every hardworking contractor in the trades.”
“This is an exciting time in the trades,” said Vahe Kuzoyan, Co-Founder and President, “We’re making progress on each of our goals this year. Most notably, we are experiencing a change in the large enterprise Commercial market where our multi-year investments are beginning to yield results.”
Fiscal Second Quarter 2026 Financial and Operational Highlights:
| Fiscal Second Quarter 2026 | Fiscal Second Quarter 2025 | |||||||
| (in millions, except percentages and GTV) | ||||||||
| Gross transaction volume (“GTV”) (in billions) | $ | 22.9 | $ | 19.2 | ||||
| YOY GTV growth | 19 | % | 23 | % | ||||
| Total revenue | $ | 242.1 | $ | 193.0 | ||||
| YOY revenue growth | 25 | % | 24 | % | ||||
| Platform revenue | $ | 232.7 | $ | 185.0 | ||||
| YOY platform revenue growth | 26 | % | 25 | % | ||||
| GAAP loss from operations | $ | (34.8 | ) | $ | (32.6 | ) | ||
| Non-GAAP income from operations(1) | $ | 29.2 | $ | 13.5 | ||||
| Non-GAAP operating margin(1) | 12.1 | % | 7.0 | % | ||||
| GAAP net cash provided by operating activities | $ | 40.3 | $ | 25.3 | ||||
| Non-GAAP free cash flow(1) | $ | 34.3 | $ | 18.7 | ||||
| Net dollar retention | > | > | ||||||
_________________________
(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.
Fiscal Third Quarter and Fiscal Year 2026 Financial Outlook:
For fiscal third quarter 2026 and for the full fiscal year 2026, the Company currently expects:
| Fiscal Third Quarter 2026 | Full Fiscal Year 2026 | |||
| (in millions) | ||||
| Total revenue | ||||
| Non-GAAP income from operations(2) | ||||
_________________________
(2) 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 income loss from operations for fiscal third quarter 2026 or for the full fiscal year 2026 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 Thursday, September 4, 2025. Online registration for this event 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.
Following completion of the events, a webcast replay will also be available at http://investors.servicetitan.com for 12 months.
About ServiceTitan
ServiceTitan is the software platform that powers trades businesses. The company’s cloud-based, end-to-end solution gives contractors the tools they need to run and grow their business, manage their back office, and provide a stellar customer experience. By bringing an integrated SaaS platform to an industry historically underserved by technology, ServiceTitan is equipping tradespeople with the technology they need to keep the world running.
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,” “intend,” “may,” “plan,” “potential” “predict,” “project,” “should,” “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 2026 ending October 31, 2025 and the full fiscal year ending January 31, 2026. 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 2025 ended April 30, 2025 as filed with the SEC on June 12, 2025, 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 fiscal second quarter 2026 ended July 31, 2025. 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.
press@servicetitan.com
Investor Contact
Jason Rechel
ServiceTitan, Inc.
investors@servicetitan.com
© 2025 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).
| ServiceTitan, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited) | ||||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue: | ||||||||||||||||
| Platform | $ | 232,726 | $ | 184,997 | $ | 440,708 | $ | 348,222 | ||||||||
| Professional services and other | 9,397 | 7,997 | 17,107 | 15,100 | ||||||||||||
| Total revenue | 242,123 | 192,994 | 457,815 | 363,322 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Platform | 51,991 | 49,236 | 102,028 | 96,993 | ||||||||||||
| Professional services and other | 18,783 | 16,932 | 36,042 | 33,523 | ||||||||||||
| Total cost of revenue | 70,774 | 66,168 | 138,070 | 130,516 | ||||||||||||
| Gross profit | 171,349 | 126,826 | 319,745 | 232,806 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 69,544 | 58,218 | 138,767 | 115,819 | ||||||||||||
| Research and development | 73,065 | 62,449 | 142,205 | 121,062 | ||||||||||||
| General and administrative | 63,512 | 38,769 | 123,081 | 81,963 | ||||||||||||
| Total operating expenses | 206,121 | 159,436 | 404,053 | 318,844 | ||||||||||||
| Loss from operations | (34,772 | ) | (32,610 | ) | (84,308 | ) | (86,038 | ) | ||||||||
| Other income (expense), net | ||||||||||||||||
| Interest expense | (2,057 | ) | (4,222 | ) | (4,092 | ) | (8,350 | ) | ||||||||
| Interest income | 4,783 | 1,654 | 9,723 | 3,350 | ||||||||||||
| Other income (expense), net | 185 | (17 | ) | 686 | 210 | |||||||||||
| Total other income (expense), net | 2,911 | (2,585 | ) | 6,317 | (4,790 | ) | ||||||||||
| Loss before income taxes | (31,861 | ) | (35,195 | ) | (77,991 | ) | (90,828 | ) | ||||||||
| Provision for income taxes | 364 | 457 | 598 | 863 | ||||||||||||
| Net loss | (32,225 | ) | (35,652 | ) | (78,589 | ) | (91,691 | ) | ||||||||
| Accretion of non-convertible preferred stock | — | (13,969 | ) | — | (26,956 | ) | ||||||||||
| Net loss attributable to common stockholders | $ | (32,225 | ) | $ | (49,621 | ) | $ | (78,589 | ) | $ | (118,647 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.35 | ) | $ | (1.43 | ) | $ | (0.86 | ) | $ | (3.44 | ) | ||||
| Weighted-average shares used in computing net loss per share, basic and diluted | 91,687,907 | 34,789,424 | 91,041,726 | 34,485,622 | ||||||||||||
| Disaggregated Revenue | ||||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Subscription | $ | 174,753 | $ | 137,697 | $ | 337,470 | $ | 263,731 | ||||||||
| Usage | 57,973 | 47,300 | 103,238 | 84,491 | ||||||||||||
| Platform revenue | 232,726 | 184,997 | 440,708 | 348,222 | ||||||||||||
| Professional services and other | 9,397 | 7,997 | 17,107 | 15,100 | ||||||||||||
| Total revenue | $ | 242,123 | $ | 192,994 | $ | 457,815 | $ | 363,322 | ||||||||
| ServiceTitan, Inc. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (unaudited) | ||||||||
| As of | ||||||||
| July 31, | January 31, | |||||||
| 2025 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 471,485 | $ | 441,802 | ||||
| Restricted cash | 210 | 711 | ||||||
| Accounts receivable, net of allowance of January 31, 2025, respectively | 51,894 | 44,469 | ||||||
| Deferred contract costs, current | 12,966 | 11,554 | ||||||
| Contract assets | 49,452 | 45,926 | ||||||
| Prepaid expenses | 31,980 | 24,791 | ||||||
| Other current assets | 4,976 | 3,513 | ||||||
| Total current assets | 622,963 | 572,766 | ||||||
| Restricted cash, noncurrent | 417 | 333 | ||||||
| Deferred contract costs, noncurrent | 12,419 | 10,608 | ||||||
| Property and equipment, net | 45,644 | 56,667 | ||||||
| Operating lease right-of-use assets | 18,860 | 24,025 | ||||||
| Internal-use software, net | 37,982 | 35,775 | ||||||
| Intangible assets, net | 192,188 | 214,952 | ||||||
| Goodwill | 845,836 | 845,836 | ||||||
| Other assets | 7,572 | 7,686 | ||||||
| Total assets | $ | 1,783,881 | $ | 1,768,648 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and other accrued expenses | $ | 43,227 | $ | 40,182 | ||||
| Accrued personnel related expenses | 57,379 | 80,160 | ||||||
| Deferred revenue, current | 17,277 | 16,803 | ||||||
| Operating lease liabilities, current | 12,848 | 12,996 | ||||||
| Short-term debt | 1,073 | 1,073 | ||||||
| Other current liabilities | 6,923 | 1,902 | ||||||
| Total current liabilities | 138,727 | 153,116 | ||||||
| Operating lease liabilities, noncurrent | 40,823 | 47,327 | ||||||
| Long-term debt, net | 103,725 | 104,014 | ||||||
| Other noncurrent liabilities | 11,192 | 9,607 | ||||||
| Total liabilities | 294,467 | 314,064 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Equity | ||||||||
| Preferred stock, par value and January 31, 2025. No shares issued and outstanding as of July 31, 2025 and January 31, 2025 | — | — | ||||||
| Class A common stock, par value July 31, 2025 and January 31, 2025. 79,465,080 shares and 76,644,240 shares issued and outstanding as of July 31, 2025 and January 31, 2025, respectively | 80 | 77 | ||||||
| Class B common stock, par value July 31, 2025 and January 31, 2025. 13,365,549 shares and 13,404,097 shares issued and outstanding as of July 31, 2025 and January 31, 2025, respectively | 13 | 13 | ||||||
| Class C common stock, par value July 31, 2025 and January 31, 2025. No shares issued and outstanding as of July 31, 2025 and January 31, 2025 | — | — | ||||||
| Additional paid-in capital | 2,673,640 | 2,560,224 | ||||||
| Accumulated deficit | (1,184,319 | ) | (1,105,730 | ) | ||||
| Total stockholders' equity | 1,489,414 | 1,454,584 | ||||||
| Total liabilities and stockholders' equity | $ | 1,783,881 | $ | 1,768,648 | ||||
| ServiceTitan, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | ||||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Cash flows provided by operating activities | ||||||||||||||||
| Net loss | $ | (32,225 | ) | $ | (35,652 | ) | $ | (78,589 | ) | $ | (91,691 | ) | ||||
| Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||||||||||
| Depreciation and amortization expense | 20,035 | 19,876 | 39,990 | 39,607 | ||||||||||||
| Amortization of deferred contract costs | 3,604 | 2,806 | 6,940 | 5,393 | ||||||||||||
| Non-cash operating lease expense | 1,406 | 1,635 | 2,758 | 3,407 | ||||||||||||
| Stock-based compensation expense | 49,307 | 23,685 | 93,056 | 43,624 | ||||||||||||
| Loss on impairment and disposal of assets | 200 | 10,143 | 8,260 | 30,274 | ||||||||||||
| Change in valuation of contingent consideration | — | (105 | ) | — | (135 | ) | ||||||||||
| Deferred income taxes | 679 | 383 | 1,325 | 1,121 | ||||||||||||
| Amortization of debt issuance costs | 128 | 69 | 248 | 127 | ||||||||||||
| Provision for credit losses | 1,544 | 1,117 | 5,267 | 1,840 | ||||||||||||
| Changes in operating assets and liabilities, net of effect of business acquisition: | ||||||||||||||||
| Accounts receivable | (7,422 | ) | (6,522 | ) | (12,692 | ) | (11,083 | ) | ||||||||
| Prepaid expenses and other current assets | (10,217 | ) | (5,278 | ) | (8,546 | ) | (3,354 | ) | ||||||||
| Deferred contract costs | (4,425 | ) | (3,562 | ) | (10,164 | ) | (5,709 | ) | ||||||||
| Contract assets | (2,185 | ) | (1,378 | ) | (3,526 | ) | (2,449 | ) | ||||||||
| Other assets | 177 | 63 | 685 | 343 | ||||||||||||
| Accounts payable and other accrued expenses | (1,068 | ) | (4,053 | ) | 2,933 | 283 | ||||||||||
| Accrued personnel related expenses | 18,959 | 23,827 | (21,673 | ) | (3,386 | ) | ||||||||||
| Operating lease liabilities | (3,013 | ) | (2,832 | ) | (6,166 | ) | (3,877 | ) | ||||||||
| Other liabilities | 3,953 | (399 | ) | 5,190 | 496 | |||||||||||
| Deferred revenue | 903 | 1,493 | 474 | 1,261 | ||||||||||||
| Net cash provided by operating activities | 40,340 | 25,316 | 25,770 | 6,092 | ||||||||||||
| Cash flows used in investing activities | ||||||||||||||||
| Capitalized internal-use software | (4,930 | ) | (5,415 | ) | (11,402 | ) | (10,200 | ) | ||||||||
| Purchase of property and equipment | (1,110 | ) | (1,173 | ) | (2,402 | ) | (1,801 | ) | ||||||||
| Acquisition of business, net of cash acquired | — | — | — | (1,184 | ) | |||||||||||
| Net cash used in investing activities | (6,040 | ) | (6,588 | ) | (13,804 | ) | (13,185 | ) | ||||||||
| Cash flows provided by (used in) financing activities | ||||||||||||||||
| Payment of contingent consideration | — | (135 | ) | — | (300 | ) | ||||||||||
| Proceeds from exercise of stock options | 17,255 | 1,774 | 18,436 | 3,214 | ||||||||||||
| Payment of debt arrangements | (269 | ) | (450 | ) | (537 | ) | (900 | ) | ||||||||
| Payment of deferred initial public offering costs | (66 | ) | (216 | ) | (599 | ) | (843 | ) | ||||||||
| Shares repurchased for tax withholding for the settlement of restricted stock units | — | (8,259 | ) | — | (13,565 | ) | ||||||||||
| Net cash provided by (used in) financing activities | 16,920 | (7,286 | ) | 17,300 | (12,394 | ) | ||||||||||
| Net change in cash, cash equivalents, and restricted cash | 51,220 | 11,442 | 29,266 | (19,487 | ) | |||||||||||
| Cash, cash equivalents, and restricted cash | ||||||||||||||||
| Beginning of period | 420,892 | 117,934 | 442,846 | 148,863 | ||||||||||||
| End of period | $ | 472,112 | $ | 129,376 | $ | 472,112 | $ | 129,376 | ||||||||
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 RSU’s 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.
- Restructuring charges. To better align our strategic priorities with our investments, we implemented workforce reductions in fiscal 2025. In connection with these reductions, we incurred employee-related expenses including severance and other termination benefits. We excluded these charges when assessing our actual performance and when budgeting, planning and forecasting future periods.
- 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. We have incurred 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. 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 operating results and those of other peer companies.
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 as GAAP net cash provided by (used in) 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 that provides information to management and investors 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 | Professional Services and Other | Total | ||||||||||||||||||||||
| Three Months Ended July 31, | Three Months Ended July 31, | Three Months Ended July 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| GAAP gross profit | $ | 180,735 | $ | 135,761 | $ | (9,386 | ) | $ | (8,935 | ) | $ | 171,349 | $ | 126,826 | ||||||||||
| Stock-based compensation expense and related employer payroll taxes | 1,484 | 1,385 | 1,364 | 1,137 | 2,848 | 2,522 | ||||||||||||||||||
| Amortization of acquired intangible assets | 5,533 | 5,533 | 334 | 334 | 5,867 | 5,867 | ||||||||||||||||||
| Loss on operating lease assets | — | 1,373 | — | 675 | — | 2,048 | ||||||||||||||||||
| Non-GAAP gross profit | $ | 187,752 | $ | 144,052 | $ | (7,688 | ) | $ | (6,789 | ) | $ | 180,064 | $ | 137,263 | ||||||||||
| Platform | Professional Services and Other | Total | ||||||||||||||||||||||
| Three Months Ended July 31, | Three Months Ended July 31, | Three Months Ended July 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| GAAP gross margin | 77.7 | % | 73.4 | % | (99.9 | )% | (111.7 | )% | 70.8 | % | 65.7 | % | ||||||||||||
| Stock-based compensation expense and related employer payroll taxes | 0.6 | % | 0.7 | % | 14.5 | % | 14.2 | % | 1.2 | % | 1.3 | % | ||||||||||||
| Amortization of acquired intangible assets | 2.4 | % | 3.0 | % | 3.6 | % | 4.2 | % | 2.4 | % | 3.0 | % | ||||||||||||
| Loss on operating lease assets | 0.0 | % | 0.7 | % | 0.0 | % | 8.4 | % | 0.0 | % | 1.1 | % | ||||||||||||
| Non-GAAP gross margin* | 80.7 | % | 77.9 | % | (81.8 | )% | (84.9 | )% | 74.4 | % | 71.1 | % | ||||||||||||
* Totals may not foot due to rounding.
| Platform | Professional Services and Other | Total | ||||||||||||||||||||||
| Six Months Ended July 31, | Six Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| GAAP gross profit | $ | 338,680 | $ | 251,229 | $ | (18,935 | ) | $ | (18,423 | ) | $ | 319,745 | $ | 232,806 | ||||||||||
| Stock-based compensation expense and related employer payroll taxes | 2,882 | 2,527 | 2,748 | 2,006 | 5,630 | 4,533 | ||||||||||||||||||
| Amortization of acquired intangible assets | 11,066 | 10,836 | 668 | 1,118 | 11,734 | 11,954 | ||||||||||||||||||
| Restructuring charges | — | 386 | — | 129 | — | 515 | ||||||||||||||||||
| Loss on operating lease assets | 960 | 4,201 | 751 | 1,993 | 1,711 | 6,194 | ||||||||||||||||||
| Non-GAAP gross profit | $ | 353,588 | $ | 269,179 | $ | (14,768 | ) | $ | (13,177 | ) | $ | 338,820 | $ | 256,002 | ||||||||||
| Platform | Professional Services and Other | Total | ||||||||||||||||||||||
| Six Months Ended July 31, | Six Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| GAAP gross margin | 76.8 | % | 72.1 | % | (110.7 | )% | (122.0 | )% | 69.8 | % | 64.1 | % | ||||||||||||
| Stock-based compensation expense and related employer payroll taxes | 0.7 | % | 0.7 | % | 16.1 | % | 13.3 | % | 1.2 | % | 1.2 | % | ||||||||||||
| Amortization of acquired intangible assets | 2.5 | % | 3.1 | % | 3.9 | % | 7.4 | % | 2.6 | % | 3.3 | % | ||||||||||||
| Restructuring charges | 0.0 | % | 0.1 | % | 0.0 | % | 0.9 | % | 0.0 | % | 0.1 | % | ||||||||||||
| Loss on operating lease assets | 0.2 | % | 1.2 | % | 4.4 | % | 13.2 | % | 0.4 | % | 1.7 | % | ||||||||||||
| Non-GAAP gross margin* | 80.2 | % | 77.3 | % | (86.3 | )% | (87.3 | )% | 74.0 | % | 70.5 | % | ||||||||||||
* Totals may not foot due to rounding.
Non-GAAP Sales and Marketing Expense
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands) | ||||||||||||||||
| GAAP sales and marketing expense | $ | 69,544 | $ | 58,218 | $ | 138,767 | $ | 115,819 | ||||||||
| Stock-based compensation expense and related employer payroll taxes | (7,694 | ) | (4,069 | ) | (13,262 | ) | (7,644 | ) | ||||||||
| Amortization of acquired intangible assets | (5,515 | ) | (5,606 | ) | (11,030 | ) | (11,056 | ) | ||||||||
| Restructuring charges | — | — | — | (292 | ) | |||||||||||
| Loss on operating lease assets | — | (1,784 | ) | (1,765 | ) | (5,433 | ) | |||||||||
| Non-GAAP sales and marketing expense | $ | 56,335 | $ | 46,759 | $ | 112,710 | $ | 91,394 | ||||||||
Non-GAAP Research and Development Expense
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands) | ||||||||||||||||
| GAAP research and development expense | $ | 73,065 | $ | 62,449 | $ | 142,205 | $ | 121,062 | ||||||||
| Stock-based compensation expense and related employer payroll taxes | (12,703 | ) | (9,851 | ) | (24,966 | ) | (17,609 | ) | ||||||||
| Acquisition-related items | — | (250 | ) | — | (250 | ) | ||||||||||
| Restructuring charges | — | — | — | (991 | ) | |||||||||||
| Loss on operating lease assets | — | (1,765 | ) | (1,679 | ) | (5,243 | ) | |||||||||
| Non-GAAP research and development expense | $ | 60,362 | $ | 50,583 | $ | 115,560 | $ | 96,969 | ||||||||
Non-GAAP General and Administrative Expense
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands) | ||||||||||||||||
| GAAP general and administrative expense | $ | 63,512 | $ | 38,769 | $ | 123,081 | $ | 81,963 | ||||||||
| Stock-based compensation expense and related employer payroll taxes | (15,830 | ) | (7,964 | ) | (28,477 | ) | (15,192 | ) | ||||||||
| Stock-based compensation expense - Co-Founders performance based RSUs | (13,518 | ) | — | (26,589 | ) | — | ||||||||||
| Acquisition-related items | — | 127 | — | (1,927 | ) | |||||||||||
| Restructuring charges | — | — | — | (698 | ) | |||||||||||
| Loss on operating lease assets | — | (4,490 | ) | (2,877 | ) | (13,298 | ) | |||||||||
| Non-GAAP general and administrative expense | $ | 34,164 | $ | 26,442 | $ | 65,138 | $ | 50,848 | ||||||||
Non-GAAP Income from Operations and Non-GAAP Operating Margin
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands) | ||||||||||||||||
| GAAP loss from operations | $ | (34,772 | ) | $ | (32,610 | ) | $ | (84,308 | ) | $ | (86,038 | ) | ||||
| Stock-based compensation expense and related employer payroll taxes | 39,075 | 24,406 | 72,335 | 44,978 | ||||||||||||
| Stock-based compensation expense - Co-Founders performance based RSUs | 13,518 | — | 26,589 | — | ||||||||||||
| Amortization of acquired intangible assets | 11,382 | 11,473 | 22,764 | 23,010 | ||||||||||||
| Restructuring charges | — | — | — | 2,496 | ||||||||||||
| Acquisition-related items | — | 123 | — | 2,177 | ||||||||||||
| Loss on operating lease assets | — | 10,087 | 8,032 | 30,168 | ||||||||||||
| Non-GAAP income from operations | $ | 29,203 | $ | 13,479 | $ | 45,412 | $ | 16,791 | ||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| GAAP operating margin | (14.4 | )% | (16.9 | )% | (18.4 | )% | (23.7 | )% | ||||||||
| Stock-based compensation expense and related employer payroll taxes | 16.1 | % | 12.6 | % | 15.8 | % | 12.4 | % | ||||||||
| Stock-based compensation expense - Co-Founders performance based RSUs | 5.6 | % | 0.0 | % | 5.8 | % | 0.0 | % | ||||||||
| Amortization of acquired intangible assets | 4.7 | % | 5.9 | % | 5.0 | % | 6.3 | % | ||||||||
| Restructuring charges | 0.0 | % | 0.0 | % | 0.0 | % | 0.7 | % | ||||||||
| Acquisition-related items | 0.0 | % | 0.1 | % | 0.0 | % | 0.6 | % | ||||||||
| Loss on operating lease assets | 0.0 | % | 5.2 | % | 1.8 | % | 8.3 | % | ||||||||
| Non-GAAP operating margin* | 12.1 | % | 7.0 | % | 9.9 | % | 4.6 | % | ||||||||
* Totals may not foot due to rounding.
Non-GAAP Net Income
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands) | ||||||||||||||||
| GAAP net loss | $ | (32,225 | ) | $ | (35,652 | ) | $ | (78,589 | ) | $ | (91,691 | ) | ||||
| Stock-based compensation expense and related employer payroll taxes | 39,075 | 24,406 | 72,335 | 44,978 | ||||||||||||
| Stock-based compensation expense - Co-Founders performance based RSUs | 13,518 | — | 26,589 | — | ||||||||||||
| Amortization of acquired intangible assets | 11,382 | 11,473 | 22,764 | 23,010 | ||||||||||||
| Restructuring charges | — | — | — | 2,496 | ||||||||||||
| Acquisition-related items | — | 123 | — | 2,177 | ||||||||||||
| Loss on operating lease assets | — | 10,087 | 8,032 | 30,168 | ||||||||||||
| Income tax effects related to the above adjustments(3) | 1,095 | (420 | ) | (389 | ) | (909 | ) | |||||||||
| Non-GAAP net income | $ | 32,845 | $ | 10,017 | $ | 50,742 | $ | 10,229 | ||||||||
(3) This amount represents adjustments for the current and deferred income tax effects on non-GAAP net income for the impact of the non-GAAP adjustments above.
Non-GAAP EPS
| Three Months Ended July 31, 2025(4) | Six Months Ended July 31, 2025(4) | |||||||
| (in thousands, except share and per share amounts) | ||||||||
| Numerator | ||||||||
| Non-GAAP net income | $ | 32,845 | $ | 50,742 | ||||
| Denominator | ||||||||
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic | 91,687,907 | 91,041,726 | ||||||
| Effect of dilutive securities: Stock-based awards | 7,699,740 | 7,957,233 | ||||||
| Weighted-average shares used in computing non-GAAP net income per share attributable to common stockholders, diluted | 99,387,647 | 98,998,959 | ||||||
| GAAP net loss per share, basic and diluted | $ | (0.35 | ) | $ | (0.86 | ) | ||
| Non-GAAP net income per share, basic | $ | 0.36 | $ | 0.56 | ||||
| Non-GAAP net income per share, diluted | $ | 0.33 | $ | 0.51 | ||||
(4) ServiceTitan has not provided prior year non-GAAP EPS for the comparative three and six month periods ended July 31, 2024 because it does not believe such disclosure would provide meaningful supplemental information regarding an EPS trend due to the redeemable convertible preferred stock that was outstanding prior to our IPO.
Free Cash Flow
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands) | ||||||||||||||||
| GAAP net cash provided by operating activities | $ | 40,340 | $ | 25,316 | $ | 25,770 | $ | 6,092 | ||||||||
| Capitalized internal-use software | (4,930 | ) | (5,415 | ) | (11,402 | ) | (10,200 | ) | ||||||||
| Purchase of property and equipment | (1,110 | ) | (1,173 | ) | (2,402 | ) | (1,801 | ) | ||||||||
| Non-GAAP free cash flow | $ | 34,300 | $ | 18,728 | $ | 11,966 | $ | (5,909 | ) | |||||||
FAQ
What were ServiceTitan's (TTAN) Q2 2026 revenue and growth rate?
How much did ServiceTitan's (TTAN) operating margin improve in Q2 2026?
What is ServiceTitan's (TTAN) revenue guidance for fiscal year 2026?
What was ServiceTitan's (TTAN) Gross Transaction Volume in Q2 2026?
How much free cash flow did ServiceTitan (TTAN) generate in Q2 2026?
