ServiceTitan (TTAN) Q2 2026 Financial Results Summary
QuoteReporter
ServiceTitan (TTAN) Q2 2027: Revenue Growth Continues, Operating Loss Narrows — Positive Outlook
ServiceTitan (NASDAQ: TTAN) reported its fiscal second quarter results for the period ending July 31, 2026, showcasing a solid performance with notable year-over-year growth. The company achieved total revenue of $292.8 million, reflecting an increase of $50.7 million or 21% compared to $242.1 million in the same quarter last year. This growth is a positive indicator for shareholders, as it demonstrates the company's ability to expand its market presence and enhance its revenue streams.
Key Financial Metrics:
- Total Revenue: $292.8 million (up $50.7 million or +21% YoY)
- Gross Transaction Volume (GTV): $26.8 billion (up from $22.9 billion, +17% YoY)
- Platform Revenue: $284.5 million (up from $232.7 million, +22% YoY)
- GAAP Loss from Operations: -$27.6 million (improved from -$34.8 million YoY)
- Non-GAAP Income from Operations: $44.4 million (up from $29.2 million YoY)
- Non-GAAP Free Cash Flow: $50.5 million (up from $34.3 million YoY)
- GAAP Operating Margin: -9.4% (improved from -14.4% YoY)
- Net Dollar Retention: > 110%
Analyst Opinion
This quarter's results are encouraging for shareholders, as the company not only achieved significant revenue growth but also improved its operational efficiency, evidenced by a narrower GAAP loss from operations and a substantial increase in non-GAAP income. The increase in non-GAAP free cash flow to $50.5 million indicates that ServiceTitan is generating cash effectively, which can be reinvested into growth initiatives or used to strengthen its balance sheet.
The company’s focus on delivering its Agentic Operating System and leveraging AI technology appears to be paying off, as highlighted by the CEO's comments on the strong momentum and organizational velocity. The expectation to end the fiscal year with over 700 enrolled Max locations further supports the positive outlook.
Dividend and Share Buyback
There were no announcements regarding dividends or share buybacks in this quarter's report, which may be a consideration for investors looking for immediate returns on their investments.
Guidance and Future Catalysts
Looking ahead, ServiceTitan provided guidance for the fiscal third quarter of 2027, expecting total revenue in the range of $285 million to $287 million and non-GAAP income from operations between $29 million and $30 million. For the full fiscal year 2027, the company anticipates total revenue between $1,139 million and $1,144 million and non-GAAP income from operations of $152 million to $154 million.
Investors should watch for the continued execution of ServiceTitan's growth strategy, particularly in expanding its Max locations and enhancing its AI capabilities. The upcoming quarters will be critical in assessing whether the company can maintain its growth trajectory and improve profitability further.
In summary, ServiceTitan's Q2 2027 results reflect a strong operational performance and a positive outlook for future growth, making it an attractive proposition for investors looking for exposure in the software sector for trades.
Note: All amounts in the following tables are in thousands.
| ServiceTitan, Inc. Condensed Consolidated Statements of Operations (unaudited) | Thr Mon Ended July 31, 2026 | Thr Mon Ended July 31, 2025 | Six Mont Ended July 31, 2026 | Six Mont Ended July 31, 2025 |
|---|---|---|---|---|
| Platform revenue | $ 284,000 | $ 232,000 | $ 545,000 | $ 440,000 |
| Professional services | 8,260 | 9,300 | 16,000 | 17,100 |
| Other revenue | ||||
| Total revenue | $ 292,000 | $ 242,000 | $ 561,000 | $ 457,000 |
| Cost of revenue | ||||
| Platform revenue | 60,500 | 51,000 | 116,000 | 102,000 |
| Professional services | 23,100 | 18,000 | 42,000 | 36,000 |
| Other revenue | ||||
| Total cost of revenue | 83,600 | 70,000 | 158,000 | 138,000 |
| Gross profit | 209,400 | 171,000 | 402,000 | 319,000 |
| Operating expenses | ||||
| Sales and marketing | 76,900 | 69,000 | 150,000 | 138,000 |
| Research and development | 100,000 | 73,000 | 188,000 | 142,000 |
| General and administrative | 59,000 | 63,000 | 117,000 | 123,000 |
| Total operating expenses | 236,900 | 206,000 | 456,000 | 404,000 |
| Loss from operations | (27,600) | (34,800) | (53,000) | (84,000) |
| Other income (expense) | ||||
| Interest expense | (188) | (2,000) | (371) | (4,000) |
| Interest income | 3,924 | 4,700 | 7,600 | 9,723 |
| Other income | 283 | 185 | 634 | 686 |
| Total other income | 4,019 | 2,885 | 7,893 | 6,317 |
| Loss before income tax | (23,581) | (31,915) | (45,107) | (77,131) |
| Provision for income tax | 1,388 | 364 | 2,300 | 598 |
| Net loss | (24,969) | (32,279) | (47,407) | (77,729) |
| Net loss per share, basic | $ (0.26) | $ (0.35) | $ (0.49) | $ (0.86) |
| Weighted-average shares used to compute net loss per share, basic | 95,000 | 91,000 | 95,000 | 91,000 |
| ServiceTitan, Inc. Condensed Consolidated Balance Sheets (unaudited) | As of July 31, 2026 | As of January 31, 2026 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $ 479,538 | $ 428,769 |
| Restricted cash | — | 166 |
| Accounts receivable, net of allowance of $11,151 and $11,963 as of July 31, 2026 and January 31, 2026, respectively | 69,883 | 55,974 |
| Deferred contract costs, current | 15,241 | 14,964 |
| Contract assets | 68,267 | 57,777 |
| Prepaid expenses | 30,207 | 25,894 |
| Other current assets | 7,242 | 7,314 |
| Total current assets | 670,378 | 590,858 |
| Restricted cash, noncurrent | 416 | 417 |
| Deferred contract costs, noncurrent | 13,092 | 14,748 |
| Property and equipment, net | 35,835 | 38,902 |
| Operating lease right-of-use assets | 19,409 | 18,627 |
| Internal-use software, net | 40,823 | 39,246 |
| Intangible assets, net | 157,036 | 176,743 |
| Goodwill | 860,250 | 860,250 |
| Other assets | 6,937 | 5,266 |
| Total assets | $ 1,804,176 | $ 1,745,057 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable and other accrued expenses | $ 56,110 | $ 52,262 |
| Accrued personnel-related expenses | 52,300 | 83,095 |
| Deferred revenue, current | 17,407 | 18,676 |
| Operating lease liabilities, current | 12,056 | 14,052 |
| Other current liabilities | 9,614 | 1,367 |
| Total current liabilities | 147,487 | 169,452 |
| Operating lease liabilities, noncurrent | 35,708 | 37,322 |
| Other noncurrent liabilities | 15,285 | 13,049 |
| Total liabilities | 198,480 | 219,823 |
| Commitments and contingencies | ||
| Stockholders' Equity | ||
| Preferred stock, par value $0.001, 100,000,000 shares authorized as of July 31, 2026 and January 31, 2026. No shares issued and outstanding as of July 31, 2026 and January 31, 2026 | — | — |