ServiceTitan Report Finds 75% of Roofing and Exteriors Contractors Expect Revenue Growth in 2026 Despite Tighter Margins

Rhea-AI Summary

Tyree & D’Angelo Partners closed a single-asset secondary transaction to extend its partnership with Western Veterinary Partners and formed a continuation fund that raised new capital to support Western’s organic growth and planned acquisitions.

The fund will be managed by TDP and was anchored by HarbourVest Partners as sole lead investor, with additional commitments from Ares private equity secondaries funds, syndicate investors, and TDP’s existing partners. William Blair served as exclusive financial advisor; Kirkland & Ellis, Winston & Strawn, and Ropes & Gray served as legal advisors.

Positive

• Transaction closed: continuation fund executed to extend partnership with Western
• Anchor investor: HarbourVest acted as sole lead investor
• New capital: raised to support organic growth and upcoming acquisitions
• Advisors engaged: William Blair served as exclusive financial advisor

Negative

• None.

Market Reality Check

Price: $66.54 Vol: Volume 1,203,232 vs 20-da...

normal vol

$66.54 Last Close

Volume Volume 1,203,232 vs 20-day average 811,313, indicating elevated trading activity ahead of this neutral third-party transaction news. normal

Technical Shares at 101.51, trading below 200-day MA of 106.12, reflecting a weaker intermediate trend before this announcement.

Peers on Argus

Core software peers PCOR, APPF, DAY, PAYC, and MANH all showed smaller declines ...

Core software peers PCOR, APPF, DAY, PAYC, and MANH all showed smaller declines (from -0.14% to -1.78%) versus TTAN’s -4.54%, pointing to a more stock-specific move rather than a broad sector rotation.

Historical Context

5 past events · Latest: 2026-01-08 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
2026-01-08	Product expansion	Positive	-1.5%	Launch of AP Automation and fintech features to streamline contractor workflows.
2025-12-22	Customer win	Positive	+1.5%	Azureon selected ServiceTitan as core platform across multi‑state operations.
2025-12-16	Industry report	Positive	+1.9%	AI adoption report highlighting efficiency gains and contractor revenue growth.
2025-12-12	Brand/community	Positive	-1.9%	Day of the Trades initiative spotlighting community and workforce efforts.
2025-12-04	Customer win	Positive	+2.4%	TIMEPROOFUSA and Master Roofing adopt platform for nationwide expansion.

Pattern Detected

Recent product and customer wins have often led to positive reactions, but there are notable instances where upbeat operational news coincided with short-term share weakness.

Recent Company History

Over the past months, ServiceTitan has focused on product expansion and high‑profile customer wins. On 2025-12-04, new nationwide roofing customers and expansion plans coincided with a 2.4% gain. The 2025-12-16 AI report also saw a 1.95% increase, while Azureon’s selection as a core platform on 2025-12-22 added 1.54%. In contrast, community branding efforts and the recent AP Automation launch saw modest negative reactions. Against this backdrop, today’s third‑party private equity transaction involving another company provides limited direct linkage to prior value‑driven product or customer catalysts.

Market Pulse Summary

This announcement centers on a private equity continuation fund around a veterinary services company...

Analysis

This announcement centers on a private equity continuation fund around a veterinary services company, with no explicit operational changes disclosed for ServiceTitan. The context of recent product launches, customer wins, and industry reports suggests investors often focus more on direct platform expansion and adoption metrics. Observers may therefore watch for future updates tied to ServiceTitan’s own product roadmap, large enterprise deployments, or regulatory filings to better gauge the company’s fundamental trajectory.

Key Terms

single-asset secondary transaction, continuation fund

2 terms

single-asset secondary transaction financial

"announced it has closed a single-asset secondary transaction to extend its partnership"

A single-asset secondary transaction is a sale where an investor sells its ownership stake in one specific asset to another investor on the secondary market, rather than as part of a new public offering or whole fund sale. It matters because the deal provides liquidity and reveals what buyers are willing to pay for that exact asset — like selling one house from a landlord’s rental portfolio so the market sets a clear price and shows how easy it is to trade that holding.

continuation fund financial

"The executed transaction formed a continuation fund that also raised new capital"

A continuation fund is a new investment vehicle created by a fund manager to buy one or more assets from an older private investment fund, giving existing investors the option to sell their stake and receive cash or stay invested under the new vehicle while the manager continues running the asset. It matters to investors because it provides a way to get liquidity before a full exit, similar to transferring a house to a new mortgage so some owners can sell while others remain, but it also requires careful review of the sale price, fees and potential conflicts of interest to ensure fair treatment.

AI-generated analysis. Not financial advice.

Roofing & Exteriors Contractors Are Doubling Down on Efficiency to Cut Costs, but with 79% Not Using AI or External LLMs, A Key Link in Their Strategy is Missing

LOS ANGELES, Jan. 14, 2026 (GLOBE NEWSWIRE) -- ServiceTitan (Nasdaq: TTAN), the software platform that powers the trades, today released its 2026 Roofing & Exterior Market Report, a study of more than 1,000 residential and commercial roofing-focused companies offering gutters, siding, windows, metal roofing, doors, garage doors, and restoration services. The report finds that 75% of contractors expect revenue growth in 2026 and 74% anticipate higher profits, yet profitability remains constrained, with one-third reporting EBITDA margins between 6% and 15%. These findings highlight the need to unlock efficiencies that support scalable growth and combat cost pressures. The report showed that most contractors have yet to adopt the AI and external LLMs that could help.

“Persistent cost inflation and labor constraints continue to challenge contractors as they look ahead to the new year, and they likely won’t go away any time soon," said Vishal Laddha, Senior Director of Exterior Strategy at ServiceTitan. "To grow profitably in this environment, contractors have to adjust their playbook and focus on efficiency, smarter resource allocation, and technology that helps them do more with less. AI is a practical tool and when natively embedded into software, it provides contractors with a frictionless way to mitigate the day-to-day challenges that limit revenue growth and key business wins."

AI is a priority, but mostly still sitting on the sidelines
While AI and automation capabilities are increasingly prioritized in tech purchasing decisions for 21% of surveyed contractors, only a minority are actively using them. Businesses 15 years and older, as well as mid-market contractors, show the fastest adoption of AI large-language-model (LLM) tools such as ChatGPT or Gemini. Still, broader usage remains limited, with only 4% using AI features built directly into their CRM, and 25% use external LLM tools. This gap highlights a significant opportunity for contractors to adopt CRMs with embedded, native AI that can leverage contextualized business data. The underutilization of AI highlights a significant opportunity to improve productivity at a time when margins are under pressure.

Cost pressures threaten business growth and profitability
According to more than one-third of contractors (39%) surveyed, rising labor and overhead costs are the primary business threats to these businesses. For 34% of contractors, these challenges are further exacerbated by sustained skilled-labor shortages, while one quarter are concerned about an economic recession. In light of these challenges, 60% are focused on optimizing labor costs, 45% on material costs, and 41% are also focused on marketing efficiency.

Differentiation, speed, and professionalism are defining competitive advantages
Under current market pressures, differentiation is no longer optional. According to survey respondents, the top three differentiators are reputation (59%), transparent communication (47%) and exceptional customer service (43%).

The market is redefining what exceptional customer service looks like, with speed and professionalism becoming table stakes. Only 16% of contractors follow up with homeowners the same day for unsold estimates, despite most leads expecting rapid re-engagement. While most contractors (67%) have adopted this approach, nearly one-third (32%) have not, highlighting both a clear technology gap and a significant opportunity.

Technology adoption is accelerating signaling a move toward full workflow orchestration
The report shows that contractors are prioritizing minimal friction, automation and efficiency, with technology investments shifting toward platforms that support production management and operational scale. The top three decision drivers for technology purchases include robust production features (47%), ease of use (29%), and workflow configurability (24%).

Diversification is reshaping growth across the sector
Next year, contractors surveyed see the biggest opportunities in customization (40%), expanding into new trades (36%), and digital transformation (34%). Together, these trends signal a move toward more personalized offerings, diversified services, and tech-forward business models.

Additionally, insurance work remains a large but challenging part of the roofing industry with 40% of contractors participating in insurance work, but claims complexity (47%) and adjuster delays (36%) creating real operational drag. This underscores another opportunity for contracting businesses to leverage AI-enabled tooling to speed up estimates, cut manual entry, and keep projects on track from inspection to invoice.

To view the full findings and key takeaways, download ServiceTitan’s 2026 Roofing & Exterior Market Report here.

About the research
The survey was conducted on behalf of ServiceTitan by Thrive Analytics, an independent third-party research provider and a leading digital marketing research firm, polling more than 1,000 residential and commercial roofing-focused companies. For the purposes of this survey, an “exterior and roofing business” is defined as diversified exterior providers offering gutters, siding, windows, metal roofing, doors, and restoration services with revenue exceeding $5 million. This research is for informational purposes only and ServiceTitan provides no assurances (express or implied) with respect to the accuracy of the survey data. Forward-looking economic and industry outlooks represent the views of the survey respondents, and may not represent the view of ServiceTitan or its affiliates. Forward-looking statements are subject to risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied.

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.

© 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).

Press Contact
Max Wertheimer
ServiceTitan, Inc.
Press@servicetitan.com

FAQ

What did Tyree & D’Angelo Partners announce on January 14, 2026 regarding Western Veterinary Partners?

TDP announced it closed a single-asset secondary transaction forming a continuation fund to extend its partnership with Western Veterinary Partners and raised new capital to support growth.

Who anchored the continuation fund for Western Veterinary Partners on Jan 14, 2026?

HarbourVest Partners anchored the fund as the sole lead investor.

What is the purpose of the new capital raised in the continuation fund for Western Veterinary Partners?

The capital is intended to support Western’s ongoing organic growth and planned acquisitions.

Which advisors worked on the TDP continuation fund transaction announced Jan 14, 2026?

William Blair was exclusive financial advisor; Kirkland & Ellis advised TDP; Winston & Strawn advised Western; Ropes & Gray advised HarbourVest.

Will the continuation fund change Western Veterinary Partners' leadership or operations?

The announcement states the fund is managed by TDP to support Western’s growth; it does not indicate any leadership changes.