[8-K] ServiceTitan, Inc. Reports Material Event
Rhea-AI Filing Summary
ServiceTitan, Inc. reported strong growth for its fiscal fourth quarter and full fiscal year 2026, while remaining GAAP unprofitable but delivering solid non-GAAP profitability and cash generation.
For fiscal 2026, total revenue reached $960.965 million, up 24% year over year, with platform revenue of $925.418 million, up 25%. Gross transaction volume was $82.1 billion, a 20% increase. Despite a GAAP loss from operations of $169.205 million and a GAAP net loss of $159.853 million, non-GAAP income from operations improved to $94.058 million and non-GAAP operating margin to 9.8%. Non-GAAP net income was $101.695 million, with non-GAAP diluted EPS of $1.02.
Operating cash flow strengthened to $110.131 million, and non-GAAP free cash flow increased to $85.073 million. As of January 31, 2026, cash and cash equivalents were $428.769 million and the company had no long-term debt. For fiscal 2027, ServiceTitan guides total revenue to $1,110–$1,120 million and non-GAAP income from operations to $128–$133 million, indicating continued growth and margin expansion.
Positive
- None.
Negative
- None.
Insights
ServiceTitan combines strong growth with a clear turn to non-GAAP profitability and rising cash flow.
ServiceTitan is scaling rapidly, with fiscal 2026 revenue of
Profitability metrics improved sharply. GAAP loss from operations narrowed to
Cash generation also strengthened, with operating cash flow of
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On March 12, 2026, ServiceTitan, Inc. (the “Company”) issued a press release announcing its financial results for the fiscal fourth quarter and full fiscal year ended January 31, 2026. In the press release, the Company also announced that it would hold a conference call to discuss these financial results on March 12, 2026 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A copy of the press release is furnished hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The Company makes reference to non-GAAP financial information in the press release. A reconciliation of these non-GAAP financial measures to their nearest GAAP equivalents is provided in the press release.
The information in this Item 2.02, including Exhibit 99.1 furnished hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information contained in this Item 2.02 and in the accompanying Exhibit 99.1 shall not be incorporated by reference into any other filing under the Exchange Act or under the Securities Act of 1933, as amended, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) The following exhibits are being filed herewith:
Exhibit No. |
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Description |
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99.1 |
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Press Release, dated March 12, 2026. |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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SERVICETITAN, INC. |
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Date: March 12, 2026 |
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By: |
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/s/ Dave Sherry |
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Dave Sherry |
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Chief Financial Officer |
Exhibit 99.1
ServiceTitan Announces Fiscal Fourth Quarter and Full Fiscal Year 2026 Financial Results
LOS ANGELES – March 12, 2026 – ServiceTitan (NASDAQ: TTAN), the software platform that powers the trades, today announced financial results for the fiscal fourth quarter and full fiscal year ended January 31, 2026.
“Our vision and mission from the beginning have been simple: to inflect our customers' revenue and margins by automating their operations” said Ara Mahdessian, Co-Founder and CEO. “I am deeply proud to surpass a $1B annualized revenue run rate and to see our vision unfold faster than we ever could have imagined.”
“In FY27, we're planning to continue executing on our multi-year growth opportunities, to bring the Agentic Operating System for the trades to life, and to make a step function change in the velocity at which we execute,” said Vahe Kuzoyan, Co-Founder and President, “Behind compelling results from our pilot, we are doubling the capacity of Max this quarter, with plans to further expand over the course of the year.”
Fiscal Fourth Quarter and Full Fiscal Year 2026 Financial and Operational Highlights:
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Fiscal Fourth Quarter 2026 |
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Fiscal Fourth Quarter 2025 |
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Full Fiscal Year 2026 |
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Full Fiscal Year 2025 |
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(in millions, except percentages, GTV and active customers) |
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Gross transaction volume (“GTV”) (in billions)(1) |
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$19.8 |
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$17.0 |
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$82.1 |
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$68.5 |
YOY GTV growth |
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16% |
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26% |
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20% |
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23% |
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Total revenue |
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$254.0 |
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$209.3 |
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$961.0 |
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$771.9 |
YOY revenue growth |
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21% |
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29% |
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24% |
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26% |
Platform revenue |
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$245.1 |
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$200.1 |
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$925.4 |
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$739.5 |
YOY platform revenue growth |
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23% |
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30% |
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25% |
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27% |
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GAAP loss from operations |
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($42.7) |
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($99.9) |
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($169.2) |
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($230.0) |
Non-GAAP income from operations(2) |
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$27.1 |
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$6.9 |
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$94.1 |
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$25.2 |
Non-GAAP operating margin(2) |
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10.7% |
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3.3% |
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9.8% |
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3.3% |
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GAAP net cash provided by operating activities |
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$40.6 |
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$15.4 |
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$110.1 |
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$37.1 |
Non-GAAP free cash flow(2) |
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$35.4 |
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$10.8 |
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$85.1 |
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$15.5 |
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Net dollar retention |
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> 110% |
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> 110% |
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Total active customers |
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~10,800 |
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~9,500 |
Gross dollar retention |
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> 95% |
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> 95% |
_________________________
(1) 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.
(2) 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.
1
Fiscal First Quarter and Fiscal Year 2027 Financial Outlook:
For fiscal first quarter 2027 and for the full fiscal year 2027, the Company currently expects:
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Fiscal First Quarter 2027 |
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Full Fiscal Year 2027 |
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(in millions) |
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Total revenue |
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$255- $257 |
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$1,110 - $1,120 |
Non-GAAP income from operations(3) |
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$27 - $28 |
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$128 - $133 |
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(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 first 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 Thursday, March 12, 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.
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,” “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 first quarter 2027 ending April 30, 2026 and the full fiscal year ending January 31, 2027, and statements regarding our operating 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 third quarter 2026 ended October 31, 2025 as filed with the SEC on December 9, 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 Annual Report on Form 10-K for fiscal year ended January 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.
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Press Contact
Max Wertheimer
ServiceTitan, Inc.
press@servicetitan.com
Investor Contact
Jason Rechel
ServiceTitan, Inc.
investors@servicetitan.com
© 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).
3
ServiceTitan, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)
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Three Months Ended January 31, |
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Fiscal |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenue: |
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Platform |
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$ |
245,129 |
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$ |
200,074 |
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$ |
925,418 |
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$ |
739,486 |
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Professional services and other |
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8,858 |
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9,207 |
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35,547 |
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32,392 |
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Total revenue |
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253,987 |
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209,281 |
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960,965 |
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771,878 |
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Cost of revenue: |
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Platform |
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56,990 |
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53,785 |
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213,544 |
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202,982 |
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Professional services and other |
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19,343 |
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17,320 |
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73,682 |
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67,969 |
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Total cost of revenue |
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76,333 |
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71,105 |
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287,226 |
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270,951 |
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Gross profit |
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177,654 |
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138,176 |
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673,739 |
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500,927 |
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Operating expenses: |
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Sales and marketing |
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73,848 |
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69,735 |
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290,885 |
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253,349 |
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Research and development |
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81,862 |
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76,057 |
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302,589 |
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263,054 |
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General and administrative |
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64,615 |
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92,250 |
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249,470 |
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214,476 |
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Total operating expenses |
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220,325 |
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238,042 |
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842,944 |
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730,879 |
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Loss from operations |
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(42,671 |
) |
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(99,866 |
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(169,205 |
) |
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(229,952 |
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Other expense, net |
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Interest expense |
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(1,094 |
) |
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(3,193 |
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(7,227 |
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(15,517 |
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Interest income |
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4,432 |
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3,637 |
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19,279 |
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8,765 |
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Loss on extinguishment of debt |
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(1,488 |
) |
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— |
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(1,488 |
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— |
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Other income (expense), net |
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625 |
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(467 |
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1,528 |
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(72 |
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Total other income (expense), net |
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2,475 |
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(23 |
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12,092 |
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(6,824 |
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Loss before income taxes |
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(40,196 |
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(99,889 |
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(157,113 |
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(236,776 |
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Provision for income taxes |
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1,541 |
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1,054 |
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2,740 |
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2,318 |
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Net loss |
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(41,737 |
) |
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(100,943 |
) |
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(159,853 |
) |
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(239,094 |
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Adjustments to net loss attributable to common stockholders |
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— |
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(79,023 |
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— |
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(120,631 |
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Net loss attributable to common stockholders |
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$ |
(41,737 |
) |
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$ |
(179,966 |
) |
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$ |
(159,853 |
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$ |
(359,725 |
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Net loss per share, basic and diluted |
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$ |
(0.44 |
) |
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$ |
(2.80 |
) |
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$ |
(1.73 |
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$ |
(8.53 |
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Weighted-average shares used in computing net loss per share, |
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94,113,302 |
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64,361,825 |
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92,378,699 |
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42,148,552 |
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Disaggregated Revenue |
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Three Months Ended January 31, |
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Fiscal |
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2026 |
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2025 |
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2026 |
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2025 |
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Subscription |
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$ |
192,044 |
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$ |
156,674 |
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$ |
712,292 |
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$ |
565,687 |
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Usage |
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53,085 |
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|
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43,400 |
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|
|
213,126 |
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|
|
173,799 |
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Platform revenue |
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245,129 |
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200,074 |
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925,418 |
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|
739,486 |
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Professional services and other |
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8,858 |
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9,207 |
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35,547 |
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32,392 |
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Total revenue |
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$ |
253,987 |
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$ |
209,281 |
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$ |
960,965 |
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$ |
771,878 |
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4
ServiceTitan, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
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As of January 31, |
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2026 |
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2025 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
428,769 |
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$ |
441,802 |
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Restricted cash |
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166 |
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711 |
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Accounts receivable, net of allowance of $11,963 and $4,698 as of January 31, 2026 and |
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55,974 |
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44,469 |
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Deferred contract costs, current |
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14,964 |
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11,554 |
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Contract assets |
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57,777 |
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45,926 |
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Prepaid expenses |
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25,894 |
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24,791 |
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Other current assets |
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7,314 |
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|
3,513 |
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Total current assets |
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590,858 |
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572,766 |
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Restricted cash, noncurrent |
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417 |
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333 |
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Deferred contract costs, noncurrent |
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14,748 |
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|
10,608 |
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Property and equipment, net |
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38,902 |
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|
56,667 |
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Operating lease right-of-use assets |
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18,627 |
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24,025 |
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Internal-use software, net |
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39,246 |
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|
35,775 |
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Intangible assets, net |
|
|
176,743 |
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|
|
214,952 |
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Goodwill |
|
|
860,250 |
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|
|
845,836 |
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Other assets |
|
|
5,266 |
|
|
|
7,686 |
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Total assets |
|
$ |
1,745,057 |
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$ |
1,768,648 |
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Liabilities and Stockholders' Equity |
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Current liabilities: |
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Accounts payable and other accrued expenses |
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$ |
52,262 |
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$ |
40,182 |
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Accrued personnel related expenses |
|
|
83,095 |
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|
|
80,160 |
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Deferred revenue, current |
|
|
18,676 |
|
|
|
16,803 |
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Operating lease liabilities, current |
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|
14,052 |
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|
|
12,996 |
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Short-term debt |
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— |
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|
|
1,073 |
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Other current liabilities |
|
|
1,367 |
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|
|
1,902 |
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Total current liabilities |
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169,452 |
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|
153,116 |
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Operating lease liabilities, noncurrent |
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37,322 |
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|
47,327 |
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Long-term debt, net |
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— |
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|
|
104,014 |
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Other noncurrent liabilities |
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|
13,049 |
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|
|
9,607 |
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Total liabilities |
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219,823 |
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|
|
314,064 |
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Commitments and contingencies |
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Stockholders' Equity |
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Preferred stock, par value $0.001, 100,000,000 shares authorized as of January 31, 2026 |
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— |
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— |
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Class A common stock, par value $0.001, 1,000,000,000 shares authorized as of |
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|
82 |
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|
77 |
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Class B common stock, par value $0.001, 100,000,000 shares authorized as of |
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13 |
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13 |
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Class C common stock, par value $0.001, 100,000,000 shares authorized as of |
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— |
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— |
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Additional paid-in capital |
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2,790,722 |
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2,560,224 |
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Accumulated deficit |
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(1,265,583 |
) |
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(1,105,730 |
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Total stockholders' equity |
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1,525,234 |
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|
|
1,454,584 |
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Total liabilities and stockholders' equity |
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$ |
1,745,057 |
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$ |
1,768,648 |
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5
ServiceTitan, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
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Three Months Ended January 31, |
|
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Fiscal |
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||||||||||
|
|
2026 |
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2025 |
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|
2026 |
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|
2025 |
|
||||
Cash flows provided by operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss |
|
$ |
(41,737 |
) |
|
$ |
(100,943 |
) |
|
$ |
(159,853 |
) |
|
$ |
(239,094 |
) |
Adjustments to reconcile net loss to net cash provided by operating |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization expense |
|
|
22,718 |
|
|
|
20,385 |
|
|
|
83,195 |
|
|
|
80,221 |
|
Amortization of deferred contract costs |
|
|
4,052 |
|
|
|
3,107 |
|
|
|
14,854 |
|
|
|
11,471 |
|
Non-cash operating lease expense |
|
|
4,990 |
|
|
|
1,394 |
|
|
|
5,777 |
|
|
|
6,340 |
|
Stock-based compensation expense |
|
|
54,399 |
|
|
|
94,679 |
|
|
|
197,115 |
|
|
|
163,729 |
|
Loss on impairment and disposal of assets |
|
|
2,707 |
|
|
|
772 |
|
|
|
10,985 |
|
|
|
39,358 |
|
Change in valuation of contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(135 |
) |
Deferred income taxes |
|
|
764 |
|
|
|
(72 |
) |
|
|
1,691 |
|
|
|
1,182 |
|
Amortization of debt issuance costs |
|
|
74 |
|
|
|
113 |
|
|
|
457 |
|
|
|
327 |
|
Loss on extinguishment of debt |
|
|
1,488 |
|
|
|
— |
|
|
|
1,488 |
|
|
|
— |
|
Provision for credit losses |
|
|
1,964 |
|
|
|
872 |
|
|
|
9,324 |
|
|
|
3,688 |
|
Changes in operating assets and liabilities, net of effect of business acquisition: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
(5,450 |
) |
|
|
(4,123 |
) |
|
|
(20,829 |
) |
|
|
(17,686 |
) |
Prepaid expenses and other current assets |
|
|
(305 |
) |
|
|
(6,123 |
) |
|
|
(1,885 |
) |
|
|
(2,863 |
) |
Deferred contract costs |
|
|
(6,442 |
) |
|
|
(5,270 |
) |
|
|
(22,405 |
) |
|
|
(15,781 |
) |
Contract assets |
|
|
(3,616 |
) |
|
|
(1,962 |
) |
|
|
(11,851 |
) |
|
|
(6,597 |
) |
Other assets |
|
|
(3,228 |
) |
|
|
3,193 |
|
|
|
(2,197 |
) |
|
|
2,661 |
|
Accounts payable and other accrued expenses |
|
|
5,212 |
|
|
|
(4,546 |
) |
|
|
12,096 |
|
|
|
(8,980 |
) |
Accrued personnel related expenses |
|
|
8,708 |
|
|
|
14,046 |
|
|
|
2,744 |
|
|
|
23,165 |
|
Operating lease liabilities |
|
|
(5,622 |
) |
|
|
(1,588 |
) |
|
|
(12,029 |
) |
|
|
(9,418 |
) |
Other liabilities |
|
|
22 |
|
|
|
712 |
|
|
|
(222 |
) |
|
|
2,133 |
|
Deferred revenue |
|
|
(117 |
) |
|
|
781 |
|
|
|
1,676 |
|
|
|
3,332 |
|
Net cash provided by operating activities |
|
|
40,581 |
|
|
|
15,427 |
|
|
|
110,131 |
|
|
|
37,053 |
|
Cash flows used in investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capitalized internal-use software |
|
|
(4,369 |
) |
|
|
(3,638 |
) |
|
|
(19,877 |
) |
|
|
(17,799 |
) |
Purchase of property and equipment |
|
|
(700 |
) |
|
|
(997 |
) |
|
|
(4,704 |
) |
|
|
(3,800 |
) |
Deposits for property and equipment |
|
|
(106 |
) |
|
|
— |
|
|
|
(477 |
) |
|
|
— |
|
Acquisition of business, net of cash acquired |
|
|
— |
|
|
|
— |
|
|
|
(19,781 |
) |
|
|
(1,184 |
) |
Net cash used in investing activities |
|
|
(5,175 |
) |
|
|
(4,635 |
) |
|
|
(44,839 |
) |
|
|
(22,783 |
) |
Cash flows provided by (used in) financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Payment of contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(300 |
) |
Proceeds from exercise of stock options |
|
|
6,308 |
|
|
|
2,348 |
|
|
|
28,845 |
|
|
|
6,655 |
|
Proceeds from issuance of common stock in initial public offering, net of underwriting costs |
|
|
— |
|
|
|
682,952 |
|
|
|
— |
|
|
|
682,952 |
|
Repayment of non-convertible preferred stock |
|
|
— |
|
|
|
(310,562 |
) |
|
|
— |
|
|
|
(310,562 |
) |
Payment of debt arrangements |
|
|
(106,227 |
) |
|
|
(70,268 |
) |
|
|
(107,032 |
) |
|
|
(71,618 |
) |
Payment of deferred initial public offering costs |
|
|
— |
|
|
|
— |
|
|
|
(599 |
) |
|
|
— |
|
Costs associated with initial public offering |
|
|
— |
|
|
|
(7,502 |
) |
|
|
— |
|
|
|
(8,451 |
) |
Shares repurchased for tax withholding for the settlement of restricted stock units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18,963 |
) |
Net cash provided by (used in) financing activities |
|
|
(99,919 |
) |
|
|
296,968 |
|
|
|
(78,786 |
) |
|
|
279,713 |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
(64,513 |
) |
|
|
307,760 |
|
|
|
(13,494 |
) |
|
|
293,983 |
|
Cash, cash equivalents, and restricted cash |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Beginning of period |
|
|
493,865 |
|
|
|
135,086 |
|
|
|
442,846 |
|
|
|
148,863 |
|
End of period |
|
$ |
429,352 |
|
|
$ |
442,846 |
|
|
$ |
429,352 |
|
|
$ |
442,846 |
|
6
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 (loss) 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 (loss) 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.
7
Non-GAAP EPS
We define non-GAAP basic EPS as non-GAAP net income (loss) 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.
8
ServiceTitan, Inc.
GAAP to Non-GAAP Reconciliations
(unaudited)
Non-GAAP Gross Profit and Non-GAAP Gross Margin
|
|
Platform |
|
|
Professional |
|
|
Total |
|
|||||||||||||||
|
|
Three Months Ended January 31, |
|
|
Three Months Ended January 31, |
|
|
Three Months Ended January 31, |
|
|||||||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||||
|
|
(in thousands) |
|
|||||||||||||||||||||
GAAP gross profit |
|
$ |
188,139 |
|
|
$ |
146,289 |
|
|
$ |
(10,485 |
) |
|
$ |
(8,113 |
) |
|
$ |
177,654 |
|
|
$ |
138,176 |
|
Stock-based compensation expense |
|
|
2,058 |
|
|
|
1,570 |
|
|
|
1,458 |
|
|
|
1,133 |
|
|
|
3,516 |
|
|
|
2,703 |
|
Amortization of acquired intangible |
|
|
5,455 |
|
|
|
5,533 |
|
|
|
334 |
|
|
|
334 |
|
|
|
5,789 |
|
|
|
5,867 |
|
Loss on operating lease assets |
|
|
352 |
|
|
|
102 |
|
|
|
257 |
|
|
|
52 |
|
|
|
609 |
|
|
|
154 |
|
Non-GAAP gross profit |
|
$ |
196,004 |
|
|
$ |
153,494 |
|
|
$ |
(8,436 |
) |
|
$ |
(6,594 |
) |
|
$ |
187,568 |
|
|
$ |
146,900 |
|
|
|
Platform |
|
|
Professional |
|
|
Total |
|
|||||||||||||||
|
|
Three Months Ended January 31, |
|
|
Three Months Ended January 31, |
|
|
Three Months Ended January 31, |
|
|||||||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||||
GAAP gross margin |
|
|
76.8 |
% |
|
|
73.1 |
% |
|
|
(118.4 |
)% |
|
|
(88.1 |
)% |
|
|
69.9 |
% |
|
|
66.0 |
% |
Stock-based compensation expense |
|
|
0.8 |
% |
|
|
0.8 |
% |
|
|
16.5 |
% |
|
|
12.3 |
% |
|
|
1.4 |
% |
|
|
1.3 |
% |
Amortization of acquired intangible |
|
|
2.2 |
% |
|
|
2.8 |
% |
|
|
3.8 |
% |
|
|
3.6 |
% |
|
|
2.3 |
% |
|
|
2.8 |
% |
Loss on operating lease assets |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
|
2.9 |
% |
|
|
0.6 |
% |
|
|
0.2 |
% |
|
|
0.1 |
% |
Non-GAAP gross margin |
|
|
80.0 |
% |
|
|
76.7 |
% |
|
|
(95.2 |
)% |
|
|
(71.6 |
)% |
|
|
73.8 |
% |
|
|
70.2 |
% |
* Totals may not foot due to rounding.
|
|
Platform |
|
|
Professional |
|
|
Total |
|
|||||||||||||||
|
|
Fiscal |
|
|
Fiscal |
|
|
Fiscal |
|
|||||||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||||
|
|
(in thousands) |
|
|||||||||||||||||||||
GAAP gross profit |
|
$ |
711,874 |
|
|
$ |
536,504 |
|
|
$ |
(38,135 |
) |
|
$ |
(35,577 |
) |
|
$ |
673,739 |
|
|
$ |
500,927 |
|
Stock-based compensation expense |
|
|
6,423 |
|
|
|
5,731 |
|
|
|
5,563 |
|
|
|
4,298 |
|
|
|
11,986 |
|
|
|
10,029 |
|
Amortization of acquired intangible |
|
|
22,102 |
|
|
|
21,902 |
|
|
|
1,336 |
|
|
|
1,786 |
|
|
|
23,438 |
|
|
|
23,688 |
|
Restructuring charges |
|
|
— |
|
|
|
386 |
|
|
|
— |
|
|
|
129 |
|
|
|
— |
|
|
|
515 |
|
Loss on operating lease assets |
|
|
1,312 |
|
|
|
5,492 |
|
|
|
1,008 |
|
|
|
2,608 |
|
|
|
2,320 |
|
|
|
8,100 |
|
Non-GAAP gross profit |
|
$ |
741,711 |
|
|
$ |
570,015 |
|
|
$ |
(30,228 |
) |
|
$ |
(26,756 |
) |
|
$ |
711,483 |
|
|
$ |
543,259 |
|
|
|
Platform |
|
|
Professional |
|
|
Total |
|
|||||||||||||||
|
|
Fiscal |
|
|
Fiscal |
|
|
Fiscal |
|
|||||||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||||
GAAP gross margin |
|
|
76.9 |
% |
|
|
72.6 |
% |
|
|
(107.3 |
)% |
|
|
(109.8 |
)% |
|
|
70.1 |
% |
|
|
64.9 |
% |
Stock-based compensation expense |
|
|
0.7 |
% |
|
|
0.8 |
% |
|
|
15.6 |
% |
|
|
13.3 |
% |
|
|
1.2 |
% |
|
|
1.3 |
% |
Amortization of acquired intangible |
|
|
2.4 |
% |
|
|
3.0 |
% |
|
|
3.8 |
% |
|
|
5.5 |
% |
|
|
2.4 |
% |
|
|
3.1 |
% |
Restructuring charges |
|
|
— |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
0.4 |
% |
|
|
— |
% |
|
|
0.1 |
% |
Loss on operating lease assets |
|
|
0.1 |
% |
|
|
0.7 |
% |
|
|
2.8 |
% |
|
|
8.1 |
% |
|
|
0.2 |
% |
|
|
1.0 |
% |
Non-GAAP gross margin |
|
|
80.1 |
% |
|
|
77.1 |
% |
|
|
(85.0 |
)% |
|
|
(82.6 |
)% |
|
|
74.0 |
% |
|
|
70.4 |
% |
9
* Totals may not foot due to rounding.
Non-GAAP Sales and Marketing Expense
|
|
Three Months Ended January 31, |
|
|
Fiscal |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
(in thousands) |
|
|||||||||||||
GAAP sales and marketing expense |
|
$ |
73,848 |
|
|
$ |
69,735 |
|
|
$ |
290,885 |
|
|
$ |
253,349 |
|
Stock-based compensation expense |
|
|
(7,262 |
) |
|
|
(12,854 |
) |
|
|
(27,342 |
) |
|
|
(24,630 |
) |
Amortization of acquired intangible assets |
|
|
(5,245 |
) |
|
|
(5,575 |
) |
|
|
(21,741 |
) |
|
|
(22,237 |
) |
Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(292 |
) |
Loss on operating lease assets |
|
|
(612 |
) |
|
|
(123 |
) |
|
|
(2,377 |
) |
|
|
(7,023 |
) |
Non-GAAP sales and marketing expense |
|
$ |
60,729 |
|
|
$ |
51,183 |
|
|
$ |
239,425 |
|
|
$ |
199,167 |
|
Non-GAAP Research and Development Expense
|
|
Three Months Ended January 31, |
|
|
Fiscal |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
(in thousands) |
|
|||||||||||||
GAAP research and development expense |
|
$ |
81,862 |
|
|
$ |
76,057 |
|
|
$ |
302,589 |
|
|
$ |
263,054 |
|
Stock-based compensation expense |
|
|
(16,414 |
) |
|
|
(18,993 |
) |
|
|
(56,255 |
) |
|
|
(47,053 |
) |
Acquisition-related items |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(250 |
) |
Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(991 |
) |
Loss on operating lease assets |
|
|
(582 |
) |
|
|
(126 |
) |
|
|
(2,261 |
) |
|
|
(6,837 |
) |
Non-GAAP research and development expense |
|
$ |
64,866 |
|
|
$ |
56,938 |
|
|
$ |
244,073 |
|
|
$ |
207,923 |
|
Non-GAAP General and Administrative Expense
|
|
Three Months Ended January 31, |
|
|
Fiscal |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
(in thousands) |
|
|||||||||||||
GAAP general and administrative expense |
|
$ |
64,615 |
|
|
$ |
92,250 |
|
|
$ |
249,470 |
|
|
$ |
214,476 |
|
Stock-based compensation expense |
|
|
(15,123 |
) |
|
|
(45,149 |
) |
|
|
(56,778 |
) |
|
|
(68,749 |
) |
Stock-based compensation expense - |
|
|
(13,514 |
) |
|
|
(14,980 |
) |
|
|
(53,618 |
) |
|
|
(14,980 |
) |
Acquisition-related items |
|
|
(34 |
) |
|
|
— |
|
|
|
(1,155 |
) |
|
|
(1,933 |
) |
Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(698 |
) |
Loss on operating lease assets |
|
|
(1,115 |
) |
|
|
(231 |
) |
|
|
(3,992 |
) |
|
|
(17,189 |
) |
Non-GAAP general and administrative expense |
|
$ |
34,829 |
|
|
$ |
31,890 |
|
|
$ |
133,927 |
|
|
$ |
110,927 |
|
10
Non-GAAP Income from Operations and Non-GAAP Operating Margin
|
|
Three Months Ended January 31, |
|
|
Fiscal |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
(in thousands) |
|
|||||||||||||
GAAP loss from operations |
|
$ |
(42,671 |
) |
|
$ |
(99,866 |
) |
|
$ |
(169,205 |
) |
|
$ |
(229,952 |
) |
Stock-based compensation expense and |
|
|
42,315 |
|
|
|
79,699 |
|
|
|
152,361 |
|
|
|
150,461 |
|
Stock-based compensation expense - |
|
|
13,514 |
|
|
|
14,980 |
|
|
|
53,618 |
|
|
|
14,980 |
|
Amortization of acquired intangible assets |
|
|
11,034 |
|
|
|
11,442 |
|
|
|
45,179 |
|
|
|
45,925 |
|
Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,496 |
|
Acquisition-related items |
|
|
34 |
|
|
|
— |
|
|
|
1,155 |
|
|
|
2,183 |
|
Loss on operating lease assets |
|
|
2,918 |
|
|
|
634 |
|
|
|
10,950 |
|
|
|
39,149 |
|
Non-GAAP income from operations |
|
$ |
27,144 |
|
|
$ |
6,889 |
|
|
$ |
94,058 |
|
|
$ |
25,242 |
|
|
|
Three Months Ended January 31, |
|
|
Fiscal |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
GAAP operating margin |
|
|
(16.8 |
)% |
|
|
(47.7 |
)% |
|
|
(17.6 |
)% |
|
|
(29.8 |
)% |
Stock-based compensation expense and |
|
|
16.7 |
% |
|
|
38.1 |
% |
|
|
15.9 |
% |
|
|
19.5 |
% |
Stock-based compensation expense - |
|
|
5.3 |
% |
|
|
7.2 |
% |
|
|
5.6 |
% |
|
|
1.9 |
% |
Amortization of acquired intangible assets |
|
|
4.3 |
% |
|
|
5.5 |
% |
|
|
4.7 |
% |
|
|
5.9 |
% |
Restructuring charges |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.3 |
% |
Acquisition-related items |
|
|
— |
% |
|
|
— |
% |
|
|
0.1 |
% |
|
|
0.3 |
% |
Loss on operating lease assets |
|
|
1.1 |
% |
|
|
0.3 |
% |
|
|
1.1 |
% |
|
|
5.1 |
% |
Non-GAAP operating margin |
|
|
10.7 |
% |
|
|
3.3 |
% |
|
|
9.8 |
% |
|
|
3.3 |
% |
* Totals may not foot due to rounding.
Non-GAAP Net Income
|
|
Three Months Ended January 31, |
|
|
Fiscal |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
(in thousands) |
|
|||||||||||||
GAAP net loss |
|
$ |
(41,737 |
) |
|
$ |
(100,943 |
) |
|
$ |
(159,853 |
) |
|
$ |
(239,094 |
) |
Stock-based compensation expense and |
|
|
42,315 |
|
|
|
79,699 |
|
|
|
152,361 |
|
|
|
150,461 |
|
Stock-based compensation expense - |
|
|
13,514 |
|
|
|
14,980 |
|
|
|
53,618 |
|
|
|
14,980 |
|
Amortization of acquired intangible assets |
|
|
11,034 |
|
|
|
11,442 |
|
|
|
45,179 |
|
|
|
45,925 |
|
Restructuring charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,496 |
|
Acquisition-related items |
|
|
34 |
|
|
|
— |
|
|
|
1,155 |
|
|
|
2,183 |
|
Loss on operating lease assets |
|
|
2,918 |
|
|
|
634 |
|
|
|
10,950 |
|
|
|
39,149 |
|
Income tax effects related to the above adjustments (4) |
|
|
(939 |
) |
|
|
1,646 |
|
|
|
(1,715 |
) |
|
|
439 |
|
Non-GAAP net income |
|
$ |
27,139 |
|
|
$ |
7,458 |
|
|
$ |
101,695 |
|
|
$ |
16,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(4) 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.
11
Non-GAAP EPS
|
|
Three Months Ended January 31, 2026 (5) |
|
|
Full Fiscal Year 2026 (5) |
|
||
|
|
(in thousands, except share and per share amounts) |
|
|||||
Numerator |
|
|
|
|
|
|
||
Non-GAAP net income |
|
$ |
27,139 |
|
|
$ |
101,695 |
|
|
|
|
|
|
|
|
||
Denominator |
|
|
|
|
|
|
||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic |
|
|
94,113,302 |
|
|
|
92,378,699 |
|
Effect of dilutive securities: Stock-based awards |
|
|
5,667,591 |
|
|
|
7,078,864 |
|
Weighted-average shares used in computing non-GAAP net income per share attributable to common stockholders, diluted |
|
|
99,780,893 |
|
|
|
99,457,563 |
|
|
|
|
|
|
|
|
||
GAAP net loss per share, basic and diluted |
|
$ |
(0.44 |
) |
|
$ |
(1.73 |
) |
Non-GAAP net income per share, basic |
|
$ |
0.29 |
|
|
$ |
1.10 |
|
Non-GAAP net income per share, diluted |
|
$ |
0.27 |
|
|
$ |
1.02 |
|
(5) ServiceTitan has not provided prior year non-GAAP EPS for the comparative three and twelve month periods ended January 31, 2025 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 January 31, |
|
|
Fiscal |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
(in thousands) |
|
|||||||||||||
Net cash provided by operating activities |
|
$ |
40,581 |
|
|
$ |
15,427 |
|
|
$ |
110,131 |
|
|
$ |
37,053 |
|
Capitalized internal-use software |
|
|
(4,369 |
) |
|
|
(3,638 |
) |
|
|
(19,877 |
) |
|
|
(17,799 |
) |
Purchase of property and equipment |
|
|
(700 |
) |
|
|
(997 |
) |
|
|
(4,704 |
) |
|
|
(3,800 |
) |
Deposits for property and equipment |
|
|
(106 |
) |
|
|
— |
|
|
|
(477 |
) |
|
|
— |
|
Non-GAAP free cash flow |
|
$ |
35,406 |
|
|
$ |
10,792 |
|
|
$ |
85,073 |
|
|
$ |
15,454 |
|
12
Filing Exhibits & Attachments
2 documentsPress Releases
