ServiceTitan — Fiscal Second Quarter 2027 Earnings Summary

Financial Performance

• Total revenue for the fiscal second quarter ended July 31, 2026, was $292.8 million, representing 21% year-over-year growth compared to $242.1 million in the prior year period.
• Platform revenue was $284.5 million, up 22% year-over-year from $232.7 million.
• Gross transaction volume (GTV) reached $26.8 billion, a 17% increase year-over-year from $22.9 billion.
• GAAP loss from operations was $27.6 million, an improvement from a loss of $34.8 million in the prior year period; GAAP operating margin improved to -9.4% from -14.4%.
• Non-GAAP income from operations was $44.4 million, up from $29.2 million in the prior year period; non-GAAP operating margin was 15.2% compared to 12.1%.
• GAAP net cash provided by operating activities was $58.0 million, compared to $40.3 million in the prior year period.
• Non-GAAP free cash flow was $50.5 million, an increase from $34.3 million in the prior year period.
• Net dollar retention remained above 110% for the quarter.
• Cash and cash equivalents were $479.5 million as of July 31, 2026, compared to $428.8 million as of January 31, 2026.
• Total assets were $1.80 billion as of July 31, 2026, compared to $1.75 billion as of January 31, 2026.

Guidance and Future Outlook

• For fiscal third quarter 2027, total revenue is expected to be between $285 million and $287 million.
• For fiscal third quarter 2027, non-GAAP income from operations is expected to be between $29 million and $30 million.
• For the full fiscal year 2027, total revenue is expected to be between $1,139 million and $1,144 million.
• For the full fiscal year 2027, non-GAAP income from operations is expected to be between $152 million and $154 million.
• The company does not provide GAAP loss from operations guidance or reconciliation for the outlook periods due to the difficulty in estimating certain excluded items, such as stock-based compensation expense.
• Management expects to end the fiscal year with over 700 enrolled Max locations.

Business Segments and Product Lines

• The company is delivering its "Agentic Operating System" to the trades.
• Investments in AI are being leveraged to enhance organizational velocity.
• The company exceeded its goal of doubling Max locations during the second quarter.
• Subscription revenue for the quarter was $212.4 million, while usage revenue was $72.1 million.

Market and Competitive Landscape

• The company serves the trades, including enterprise commercial construction, residential field service, and exteriors.
• The Agentic Operating System is designed to automate workflows for contractors.

Risks and Challenges

• Forward-looking statements regarding financial outlook, AI strategy, and Max plans are subject to risks and uncertainties that could cause actual results to differ materially from projections.
• Specific risks include the inability to estimate certain items excluded from non-GAAP income from operations, such as stock-based compensation expense, without unreasonable efforts.
• Actual results may be affected by factors described in the company's Quarterly Report on Form 10-Q for the fiscal first quarter 2027.

Management Commentary and Tone

• Ara Mahdessian, Co-Founder and CEO, stated that strong momentum in delivering the Agentic Operating System resulted in 21% revenue growth and over $50 million of non-GAAP free cash flow.
• Mahdessian described delivering the Agentic Operating System and leveraging AI as "once in a lifetime opportunities to execute against."
• Vahe Kuzoyan, Co-Founder and President, noted that organizational velocity is improving and investments in AI are delivering.
• Kuzoyan highlighted strong execution with existing customers and progress with select new customers as drivers for the Max location enrollment outlook.

Other Key Points

• The company adopted a fixed long-term projected non-GAAP tax rate of 18% effective February 1, 2026.
• Non-GAAP financial measures exclude stock-based compensation expense, amortization of acquired intangible assets, loss on operating lease assets, and acquisition-related items.
• Free cash flow is defined as GAAP net cash provided by operating activities less cash used for investing activities for capitalized internal-use software and purchases/deposits for property and equipment.
• A conference call and webcast regarding the results were scheduled for September 8, 2026, at 2:00 p.m. Pacific Time.
• The company has Class A and Class B common stock outstanding, with no Class C stock issued or outstanding as of July 31, 2026.