Financial Data and Key Metrics Changes - In Q2 FY2026, gross transaction volume (GTV) reached $22.9 billion, reflecting a 19% year-over-year growth, driven primarily by commercial customers and non-HVAC residential trades [19] - Total revenue for Q2 was $242.1 million, a 25% increase year-over-year, with subscription revenue growing 27% to $174.8 million [19][20] - Platform gross margin improved to 80.7%, an increase of 280 basis points year-over-year, while total gross margin rose to 74.4%, up 330 basis points [20][21] - Operating income for Q2 was $29.2 million, resulting in a record operating margin of 12.1%, an improvement of 510 basis points year-over-year [21] - Free cash flow for Q2 was $34.3 million, up from $18.7 million in the prior year [21] Business Line Data and Key Metrics Changes - Subscription revenue growth was led by faster-than-expected growth from new customers and healthy expansion trends [20] - Usage revenue grew 23% year-over-year to $58 million, driven by higher GTV and a greater mix of on-platform payment solutions [20] - Professional services revenue for Q2 was $9.4 million, with net dollar retention exceeding 110% [20] Market Data and Key Metrics Changes - The commercial customer segment outperformed expectations, contributing significantly to GTV growth [19] - Non-HVAC residential trades showed a pickup in job growth, contributing positively to GTV [78] Company Strategy and Development Direction - The company aims to deliver automation to the trades, leveraging AI capabilities to enhance customer operations and drive revenue growth [14][15] - A partnership with Roto-Rooter was announced, expected to enhance the company's presence in the commercial market [13][14] - The focus remains on becoming the operating system for the trades, with an emphasis on product development and market expansion [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong results, citing the resilience of customers and the effectiveness of their platform [12][19] - The company anticipates continued growth in subscription and usage revenue, with a commitment to achieving long-term margin targets [22] - Management acknowledged challenges in the HVAC segment due to difficult year-over-year comparisons but noted overall strong performance [74][89] Other Important Information - The introduction of AI, specifically Titan Intelligence, has enabled significant automation for customers, exemplified by the Gulf Shore case study [6][10] - The company is focused on enhancing its product offerings in the commercial sector, particularly in project management capabilities [15][16] Q&A Session Summary Question: What was the business objective for Roto-Rooter in choosing ServiceTitan? - Management highlighted that Roto-Rooter seeks revenue growth through lead generation, lower customer acquisition costs, and back-office automation [26][27] Question: What percentage of the customer base is hybrid, spanning across residential and commercial? - Management noted that most customers have a mix of both residential and commercial services, which provides a competitive advantage [32][33] Question: Is there anything underperforming that the company is working on? - Management acknowledged the desire for continuous improvement across all areas, including product delivery and service levels [35] Question: How long has the company been investing in the commercial side? - The company has been investing in the commercial market for about three years, focusing on construction capabilities [39] Question: What is the impact of AI on gross margins? - Management indicated that AI is expected to drive efficiencies, but it is still early in the AI journey for both internal operations and customer operations [78] Question: What products are being used by Gulf Shore? - Gulf Shore utilizes several Pro products, including Scheduling Pro, Dispatch Pro, and Marketing Pro, which enhance automation and ROI [57] Question: What is the expected impact of the Roto-Rooter partnership? - The partnership is expected to enhance the company's capabilities in both residential and commercial sectors, aligning well with ServiceTitan's strengths [26][72]

Financial Data and Key Metrics Changes - Q2 gross transaction volume (GTV) was $22.9 billion, representing a 19% year-over-year growth, led by commercial customers and non-HVAC residential trades [19] - Total revenue for Q2 was $242.1 million, growing 25% year-over-year, with subscription revenue at $174.8 million, up 27% year-over-year [19][20] - Q2 platform gross margin improved to 80.7%, an increase of 280 basis points year-over-year, while total gross margin was 74.4%, up 330 basis points year-over-year [20][21] - Operating income for Q2 was $29.2 million, resulting in a record operating margin of 12.1%, an improvement of 510 basis points year-over-year [21] - Free cash flow for Q2 was $34.3 million, up from $18.7 million in the prior year's second quarter [21] Business Line Data and Key Metrics Changes - Subscription revenue growth was driven by faster-than-expected growth from new customers and healthy expansion trends [20] - Usage revenue grew 23% year-over-year to $58 million, outpacing prior guidance due to higher GTV and a greater mix of on-platform payment solutions [20] - Professional services revenue for Q2 was $9.4 million, with net dollar retention exceeding 110% for the quarter [20] Market Data and Key Metrics Changes - Residential HVAC growth was slower than in prior periods due to challenging comparisons from last year, but overall, residential HVAC customers continued to grow well in Q2 [19][21] - Non-HVAC residential trades saw a pickup across the board, primarily driven by job growth [77] Company Strategy and Development Direction - The company aims to deliver real ROI to customers, helping them grow their businesses, which in turn drives higher subscription and usage revenue [6] - The introduction of AI, specifically Titan Intelligence, is enabling customers to automate their operations, leading to significant efficiency gains [7][10] - The company is focusing on becoming the operating system for the trades, with a commitment to delivering high ROI solutions and expanding its ecosystem [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to transform the lives of contractors through automation and AI [6][12] - The partnership with Roto-Rooter is expected to enhance the company's market position and drive further growth [14][26] - Management acknowledged the need for continuous improvement in product delivery and customer service [35] Other Important Information - The company expects total revenue for Q3 to be in the range of $237 to $239 million and for the full fiscal year 2026 to be between $935 to $940 million [22] - The company is committed to maintaining a long-term growth target of 25% [22] Q&A Session Summary Question: What was the business objective for Roto-Rooter in choosing ServiceTitan? - Management highlighted that Roto-Rooter seeks revenue growth through generating more leads, converting leads into booked appointments, and increasing close rates, which aligns with ServiceTitan's strengths [26][27] Question: What percentage of the customer base is hybrid, spanning both residential and commercial? - Management noted that most customers have some degree of both residential and commercial operations, with a focus on becoming world-class for both segments [32][33] Question: Is there anything underperforming that the company is working on? - Management expressed satisfaction with progress but emphasized the desire for continuous improvement across all areas [35] Question: How long has the company been investing in the commercial side? - The company has been investing in the commercial side for about three years, with recent traction attributed to delivering on construction capabilities [39] Question: How is the company leveraging AI to drive efficiency? - Management indicated that AI is being used to improve customer experience and streamline operations, with ongoing efforts to enhance these capabilities [78] Question: What is the expected impact of Pro products on gross margins? - The impact of Pro products on gross margins will depend on the specific products, with some expected to contribute positively to the top line [80]

Financial Data and Key Metrics Changes - In Q2 FY2026, total revenue reached $242.1 million, reflecting a 25% year-over-year growth [18] - Subscription revenue grew by 27% year-over-year to $174.8 million, driven by faster growth from new customers [19] - Gross transaction volume (GTV) was $22.9 billion, representing a 19% year-over-year increase [18] - Platform gross margin improved to 80.7%, an increase of 280 basis points year-over-year [19] - Operating income was $29.2 million, resulting in a record operating margin of 12.1%, an improvement of 510 basis points year-over-year [20] - Free cash flow for Q2 was $34.3 million, up from $18.7 million in the prior year [20] Business Line Data and Key Metrics Changes - The company reported strong performance across its pro products, which are the fastest-growing area of the business [13] - Professional services revenue for Q2 was $9.4 million, contributing to overall revenue growth [19] - The introduction of AI capabilities has allowed customers to automate workflows, leading to increased efficiency and revenue growth [10][14] Market Data and Key Metrics Changes - Commercial customers and non-HVAC residential trades led the overperformance in GTV growth [18] - Residential HVAC growth was slower compared to previous periods due to challenging year-over-year comparisons [19][75] - The partnership with Roto-Rooter is expected to enhance the company's presence in both residential and commercial markets [12][13] Company Strategy and Development Direction - The company aims to become the operating system for the trades, focusing on delivering automation and AI solutions to enhance customer operations [11][12] - There is a strong emphasis on expanding capabilities in the commercial sector, particularly in construction project management [15][39] - The company is committed to improving product offerings and customer service to maintain competitive advantages [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong ROI to customers, which in turn drives growth [4][5] - The management team highlighted the importance of automation and AI in transforming the trades industry [10][14] - Future growth is expected to be driven by continued investment in R&D and capital deployment towards high ROI opportunities [22][48] Other Important Information - The company has posted an updated investor presentation and earnings release on its website [3] - The management team is focused on executing their strategy with a long-term view of sustainable growth and margin improvement [22] Q&A Session Summary Question: What was the business objective for Roto-Rooter in choosing ServiceTitan? - Management highlighted that Roto-Rooter seeks revenue growth through lead generation, lower customer acquisition costs, and back-office automation [25][26] Question: What percentage of the customer base is hybrid, spanning across residential and commercial? - Management noted that most customers have both residential and commercial operations, which provides a competitive advantage [32][33] Question: Is there anything underperforming that the company is working on? - Management acknowledged the desire for continuous improvement across all areas, including product delivery and service levels [35] Question: How long has the company been investing in the commercial side? - The company has been investing in the commercial side for about three years, focusing on construction capabilities [39] Question: How is the company leveraging AI for efficiency? - Management indicated that AI is being used to improve customer experience and operational efficiency, with ongoing developments in this area [79] Question: What is the expected impact of Pro products on gross margins? - The impact on gross margins will depend on the specific Pro products, with some expected to contribute positively [80]

Financial Highlights - Q2'FY26总交易额(GTV)达230亿美元[7] - Q2'FY26总收入为2.42亿美元[7] - Q2'FY26非美国通用会计准则(Non-GAAP)运营利润率为12.1%[7] - Q2'FY26平台毛利率为80.7%[7] - Q2'FY26收入同比增长25%[7] - Q2'FY26平台收入同比增长26%[7] - Q2FY26净留存率超过110%[7] Market Opportunity - 公司服务的行业市场规模约为6500亿美元[18] - 所有潜在行业和市场规模约为1.5万亿美元[19] - 公司当前客户产生的收入机会为130亿美元[22] Customer Base - 公司拥有约9500个活跃客户[39] - 超过1000个客户的年度账单超过10万美元[39] - 来自年度账单超过10万美元的客户的总年度账单占比超过50%[39]

Company Overview and Executive Summary [Introduction and Management Commentary](index=1&type=section&id=1.1%20Introduction%20and%20Management%20Commentary) ServiceTitan announced its fiscal second quarter 2026 financial results, with management highlighting strong performance in the seasonally strongest quarter for the trades and progress in the large enterprise Commercial market due to multi-year investments - CEO Ara Mahdessian expressed gratitude for the team's empowerment of customers and emphasized the opportunity to transform the lives of contractors[2](index=2&type=chunk) - President Vahe Kuzoyan noted progress on company goals, particularly a positive change in the large enterprise Commercial market where multi-year investments are yielding results[2](index=2&type=chunk) [About ServiceTitan](index=2&type=section&id=1.2%20About%20ServiceTitan) ServiceTitan is a software platform providing cloud-based, end-to-end solutions for trades businesses, enabling contractors to manage and grow their operations, handle back-office functions, and enhance customer experience - ServiceTitan offers a cloud-based, end-to-end SaaS platform that powers trades businesses[8](index=8&type=chunk) - The platform provides contractors with tools to run and grow their business, manage back-office, and deliver a stellar customer experience[8](index=8&type=chunk) - The company aims to equip tradespeople with technology in an industry historically underserved by technology[8](index=8&type=chunk) Financial Performance and Outlook [Fiscal Second Quarter 2026 Financial and Operational Highlights](index=1&type=section&id=2.1%20Fiscal%20Second%20Quarter%202026%20Financial%20and%20Operational%20Highlights) ServiceTitan reported strong fiscal Q2 2026 results, with significant year-over-year growth in Gross Transaction Volume (GTV), total revenue, and platform revenue. Non-GAAP income from operations and operating margin also saw substantial improvements Fiscal Second Quarter 2026 Financial and Operational Highlights | Metric | FY26 Q2 (Millions) | FY25 Q2 (Millions) | YOY GTV Growth (FY26 Q2) | YOY GTV Growth (FY25 Q2) | | :-------------------------------- | :----------------- | :----------------- | :----------------------- | :----------------------- | | Gross Transaction Volume ("GTV") (in billions) | $22.9 | $19.2 | 19% | 23% | | Total revenue | $242.1 | $193.0 | 25% | 24% | | Platform revenue | $232.7 | $185.0 | 26% | 25% | | GAAP loss from operations | $(34.8) | $(32.6) | - | - | | Non-GAAP income from operations | $29.2 | $13.5 | - | - | | Non-GAAP operating margin | 12.1% | 7.0% | - | - | | GAAP net cash provided by operating activities | $40.3 | $25.3 | - | - | | Non-GAAP free cash flow | $34.3 | $18.7 | - | - | | Net dollar retention | > 110% | > 110% | - | - | [Fiscal Third Quarter and Fiscal Year 2026 Financial Outlook](index=1&type=section&id=2.2%20Fiscal%20Third%20Quarter%20and%20Fiscal%20Year%202026%20Financial%20Outlook) ServiceTitan provided financial guidance for fiscal Q3 2026 and the full fiscal year 2026, projecting continued revenue growth and non-GAAP income from operations Fiscal Third Quarter and Fiscal Year 2026 Financial Outlook | Metric | Fiscal Third Quarter 2026 (Millions) | Full Fiscal Year 2026 (Millions) | | :-------------------------------- | :--------------------------------- | :------------------------------- | | Total revenue | $237 - $239 | $935 - $940 | | Non-GAAP income from operations | $14 - $15 | $74 - $76 | - The company is unable to provide a GAAP loss from operations outlook or reconciliation due to the difficulty of estimating certain excluded items like stock-based compensation expense[4](index=4&type=chunk) Condensed Consolidated Financial Statements (GAAP) [Condensed Consolidated Statements of Operations](index=4&type=section&id=3.1%20Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended July 31, 2025, ServiceTitan reported a total revenue of $242.1 million, an increase from $193.0 million in the prior year, but still incurred a net loss of $32.2 million Condensed Consolidated Statements of Operations (Three Months Ended July 31) | Metric | 2025 (Thousands) | 2024 (Thousands) | | :-------------------------------- | :--------------- | :--------------- | | Total revenue | $242,123 | $192,994 | | Gross profit | $171,349 | $126,826 | | Loss from operations | $(34,772) | $(32,610) | | Net loss | $(32,225) | $(35,652) | | Net loss per share, basic and diluted | $(0.35) | $(1.43) | - For the six months ended July 31, 2025, total revenue was **$457.8 million**, with a net loss of **$78.6 million**[14](index=14&type=chunk) [Disaggregated Revenue](index=4&type=section&id=3.1.1%20Disaggregated%20Revenue) Platform revenue, comprising subscription and usage fees, continues to be the primary revenue driver, showing strong growth for both the three and six months ended July 31, 2025 Disaggregated Revenue (Three Months Ended July 31) | Revenue Type | 2025 (Thousands) | 2024 (Thousands) | | :-------------------------- | :--------------- | :--------------- | | Subscription | $174,753 | $137,697 | | Usage | $57,973 | $47,300 | | Platform revenue | $232,726 | $184,997 | | Professional services and other | $9,397 | $7,997 | | Total revenue | $242,123 | $192,994 | - For the six months ended July 31, 2025, subscription revenue was **$337.5 million** and usage revenue was **$103.2 million**[15](index=15&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=3.2%20Condensed%20Consolidated%20Balance%20Sheets) As of July 31, 2025, ServiceTitan maintained a strong financial position with total assets of $1.78 billion, a slight increase from January 31, 2025, and a decrease in total liabilities Condensed Consolidated Balance Sheets (As of) | Metric | July 31, 2025 (Thousands) | January 31, 2025 (Thousands) | | :-------------------------------- | :------------------------ | :------------------------- | | Total assets | $1,783,881 | $1,768,648 | | Total liabilities | $294,467 | $314,064 | | Total stockholders' equity | $1,489,414 | $1,454,584 | | Cash and cash equivalents | $471,485 | $441,802 | - Current assets increased to **$622.9 million** from **$572.8 million**, primarily driven by an increase in cash and cash equivalents and accounts receivable[17](index=17&type=chunk) - Total liabilities decreased by approximately **$19.6 million**, mainly due to a reduction in accrued personnel related expenses[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=3.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) ServiceTitan generated significant cash from operating activities in fiscal Q2 2026, with net cash provided by operating activities increasing to $40.3 million from $25.3 million in the prior year quarter Condensed Consolidated Statements of Cash Flows (Three Months Ended July 31) | Metric | 2025 (Thousands) | 2024 (Thousands) | | :-------------------------------- | :--------------- | :--------------- | | Net cash provided by operating activities | $40,340 | $25,316 | | Net cash used in investing activities | $(6,040) | $(6,588) | | Net cash provided by (used in) financing activities | $16,920 | $(7,286) | | Net change in cash, cash equivalents, and restricted cash | $51,220 | $11,442 | - For the six months ended July 31, 2025, net cash provided by operating activities was **$25.8 million**, a substantial increase from **$6.1 million** in the prior year period[19](index=19&type=chunk) - Proceeds from the exercise of stock options significantly contributed to financing activities in 2025[19](index=19&type=chunk) Non-GAAP Financial Measures and Reconciliations [Statement Regarding Use of Non-GAAP Financial Measures](index=7&type=section&id=4.1%20Statement%20Regarding%20Use%20of%20Non-GAAP%20Financial%20Measures) ServiceTitan uses non-GAAP financial measures to provide additional insights into its operating performance, believing these measures are useful for evaluating results, future prospects, and comparisons, despite their inherent limitations - Non-GAAP measures are used to adjust GAAP financial measures for the impact of various items, offering a supplementary view of operating performance[20](index=20&type=chunk) - Management acknowledges that non-GAAP measures have limitations and should not be considered substitutes for GAAP results, as they involve judgment and may not be comparable across companies[21](index=21&type=chunk) - The company excludes items like stock-based compensation, amortization of acquired intangibles, restructuring charges, loss on operating lease assets, and acquisition-related items to facilitate meaningful comparisons and internal performance assessment[22](index=22&type=chunk)[23](index=23&type=chunk) [Non-GAAP Definitions](index=8&type=section&id=4.2%20Non-GAAP%20Definitions) This section defines the methodologies for calculating Non-GAAP EPS and Free Cash Flow, emphasizing their purpose in providing a clearer view of the company's core operational and liquidity performance [Non-GAAP EPS Definition](index=8&type=section&id=4.2.1%20Non-GAAP%20EPS%20Definition) Non-GAAP EPS is calculated by dividing non-GAAP net income by weighted-average shares outstanding, with diluted EPS accounting for potentially dilutive common stock equivalents using the treasury method - Non-GAAP basic EPS is non-GAAP net income divided by basic weighted-average shares outstanding[24](index=24&type=chunk) - Non-GAAP diluted EPS includes the dilutive effect of stock options, restricted stock units, and acquisition indemnity shares withheld using the treasury method[24](index=24&type=chunk) [Free Cash Flow Definition](index=8&type=section&id=4.2.2%20Free%20Cash%20Flow%20Definition) Free cash flow is defined as GAAP net cash provided by (used in) operating activities, adjusted for cash used in investing activities related to capitalized internal-use software and property/equipment purchases, serving as an indicator of liquidity - Free cash flow is calculated as GAAP net cash from operating activities minus capitalized internal-use software and purchases of property and equipment[25](index=25&type=chunk) - It is considered a meaningful indicator of liquidity and capital requirements, useful for evaluating cash flow trends and investment in future growth[25](index=25&type=chunk) - Limitations include not reflecting mandatory debt service and potential incomparability with other companies' similarly titled measures[25](index=25&type=chunk) [GAAP to Non-GAAP Reconciliations](index=9&type=section&id=4.3%20GAAP%20to%20Non-GAAP%20Reconciliations) This section provides detailed reconciliations from GAAP to non-GAAP financial measures for various income statement line items, illustrating the impact of adjustments such as stock-based compensation, amortization of acquired intangibles, and other non-recurring charges [Non-GAAP Gross Profit and Gross Margin](index=9&type=section&id=4.3.1%20Non-GAAP%20Gross%20Profit%20and%20Gross%20Margin) Non-GAAP gross profit and gross margin show improvements over GAAP figures, primarily by excluding stock-based compensation, amortization of acquired intangibles, and loss on operating lease assets Non-GAAP Gross Profit and Gross Margin (Three Months Ended July 31) | Metric | 2025 (Thousands) | 2024 (Thousands) | | :-------------------------- | :--------------- | :--------------- | | GAAP gross profit | $171,349 | $126,826 | | Non-GAAP gross profit | $180,064 | $137,263 | | GAAP gross margin | 70.8% | 65.7% | | Non-GAAP gross margin | 74.4% | 71.1% | - Adjustments for Q2 2025 included **$2.8 million** for stock-based compensation and **$5.9 million** for amortization of acquired intangibles[27](index=27&type=chunk) - For the six months ended July 31, 2025, Non-GAAP gross profit was **$338.8 million** (GAAP: **$319.7 million**) and Non-GAAP gross margin was **74.0%** (GAAP: **69.8%**)[28](index=28&type=chunk)[29](index=29&type=chunk) [Non-GAAP Sales and Marketing Expense](index=10&type=section&id=4.3.2%20Non-GAAP%20Sales%20and%20Marketing%20Expense) Non-GAAP sales and marketing expense is significantly lower than GAAP, reflecting the exclusion of non-cash and non-recurring items like stock-based compensation and amortization of acquired intangibles Non-GAAP Sales and Marketing Expense (Three Months Ended July 31) | Metric | 2025 (Thousands) | 2024 (Thousands) | | :-------------------------------- | :--------------- | :--------------- | | GAAP sales and marketing expense | $69,544 | $58,218 | | Non-GAAP sales and marketing expense | $56,335 | $46,759 | - Adjustments for Q2 2025 included **$(7.7) million** for stock-based compensation and **$(5.5) million** for amortization of acquired intangibles[30](index=30&type=chunk) [Non-GAAP Research and Development Expense](index=10&type=section&id=4.3.3%20Non-GAAP%20Research%20and%20Development%20Expense) Non-GAAP research and development expense is presented after excluding stock-based compensation, acquisition-related items, restructuring charges, and loss on operating lease assets, providing a clearer view of core R&D investment Non-GAAP Research and Development Expense (Three Months Ended July 31) | Metric | 2025 (Thousands) | 2024 (Thousands) | | :-------------------------------- | :--------------- | :--------------- | | GAAP research and development expense | $73,065 | $62,449 | | Non-GAAP research and development expense | $60,362 | $50,583 | - Adjustments for Q2 2025 primarily included **$(12.7) million** for stock-based compensation[31](index=31&type=chunk) [Non-GAAP General and Administrative Expense](index=11&type=section&id=4.3.4%20Non-GAAP%20General%20and%20Administrative%20Expense) Non-GAAP general and administrative expense significantly reduces the GAAP figure by excluding stock-based compensation (including Co-Founders' performance-based RSUs), acquisition-related items, restructuring charges, and loss on operating lease assets Non-GAAP General and Administrative Expense (Three Months Ended July 31) | Metric | 2025 (Thousands) | 2024 (Thousands) | | :-------------------------------- | :--------------- | :--------------- | | GAAP general and administrative expense | $63,512 | $38,769 | | Non-GAAP general and administrative expense | $34,164 | $26,442 | - Adjustments for Q2 2025 included **$(15.8) million** for stock-based compensation and **$(13.5) million** for Co-Founders performance-based RSUs[32](index=32&type=chunk) [Non-GAAP Income from Operations and Operating Margin](index=11&type=section&id=4.3.5%20Non-GAAP%20Income%20from%20Operations%20and%20Operating%20Margin) ServiceTitan achieved positive non-GAAP income from operations and a significantly improved non-GAAP operating margin in fiscal Q2 2026, contrasting with GAAP operating losses, due to the exclusion of various non-cash and non-recurring expenses Non-GAAP Income from Operations and Operating Margin (Three Months Ended July 31) | Metric | 2025 (Thousands) | 2024 (Thousands) | | :-------------------------------- | :--------------- | :--------------- | | GAAP loss from operations | $(34,772) | $(32,610) | | Non-GAAP income from operations | $29,203 | $13,479 | | GAAP operating margin | (14.4)% | (16.9)% | | Non-GAAP operating margin | 12.1% | 7.0% | - Key adjustments for Q2 2025 included **$39.1 million** for stock-based compensation and related payroll taxes, and **$13.5 million** for Co-Founders performance-based RSUs[33](index=33&type=chunk) - For the six months ended July 31, 2025, Non-GAAP income from operations was **$45.4 million** (GAAP loss: **$84.3 million**) and Non-GAAP operating margin was **9.9%** (GAAP: **(18.4)%**)[33](index=33&type=chunk) [Non-GAAP Net Income](index=12&type=section&id=4.3.6%20Non-GAAP%20Net%20Income) ServiceTitan reported positive non-GAAP net income for fiscal Q2 2026, a significant improvement from the GAAP net loss, after adjusting for non-cash and non-recurring items and their tax effects Non-GAAP Net Income (Three Months Ended July 31) | Metric | 2025 (Thousands) | 2024 (Thousands) | | :-------------------------------- | :--------------- | :--------------- | | GAAP net loss | $(32,225) | $(35,652) | | Non-GAAP net income | $32,845 | $10,017 | - Adjustments for Q2 2025 included **$39.1 million** for stock-based compensation, **$13.5 million** for Co-Founders performance-based RSUs, and **$11.4 million** for amortization of acquired intangibles[34](index=34&type=chunk) - For the six months ended July 31, 2025, Non-GAAP net income was **$50.7 million** (GAAP net loss: **$78.6 million**)[34](index=34&type=chunk) [Non-GAAP EPS](index=12&type=section&id=4.3.7%20Non-GAAP%20EPS) ServiceTitan achieved positive non-GAAP diluted EPS of $0.33 in fiscal Q2 2026, reflecting the positive non-GAAP net income and the impact of dilutive securities Non-GAAP EPS (Three Months Ended July 31, 2025) | Metric | 2025 (Thousands, except per share) | | :-------------------------------- | :-------------------------------- | | Non-GAAP net income | $32,845 | | Weighted-average shares (basic) | 91,687,907 | | Weighted-average shares (diluted) | 99,387,647 | | GAAP net loss per share, basic and diluted | $(0.35) | | Non-GAAP net income per share, basic | $0.36 | | Non-GAAP net income per share, diluted | $0.33 | - For the six months ended July 31, 2025, Non-GAAP diluted EPS was **$0.51**[35](index=35&type=chunk) - Prior year non-GAAP EPS is not provided due to the redeemable convertible preferred stock outstanding before the IPO, which would not offer meaningful trend information[35](index=35&type=chunk) [Free Cash Flow](index=12&type=section&id=4.3.8%20Free%20Cash%20Flow) ServiceTitan generated strong non-GAAP free cash flow of $34.3 million in fiscal Q2 2026, a significant increase from the prior year, indicating robust liquidity Free Cash Flow (Three Months Ended July 31) | Metric | 2025 (Thousands) | 2024 (Thousands) | | :-------------------------------- | :--------------- | :--------------- | | GAAP net cash provided by operating activities | $40,340 | $25,316 | | Non-GAAP free cash flow | $34,300 | $18,728 | - For the six months ended July 31, 2025, Non-GAAP free cash flow was **$12.0 million**, a substantial improvement from a negative free cash flow of **$(5.9) million** in the prior year period[36](index=36&type=chunk) Additional Information [Conference Call Information](index=2&type=section&id=5.1%20Conference%20Call%20Information) ServiceTitan scheduled a conference call and webcast for September 4, 2025, to discuss the financial results and business highlights, with replay available online - A conference call and webcast were scheduled for September 4, 2025, at 2:00 p.m. Pacific Time[6](index=6&type=chunk) - The live webcast and replay are accessible via ServiceTitan's investor relations website[6](index=6&type=chunk)[7](index=7&type=chunk) [Forward Looking Statements](index=2&type=section&id=5.2%20Forward%20Looking%20Statements) This section contains standard forward-looking statements regarding ServiceTitan's financial outlook, cautioning that actual results may differ materially due to various risks and uncertainties detailed in SEC filings - The press release includes forward-looking statements concerning financial outlook for fiscal Q3 2026 and full fiscal year 2026[9](index=9&type=chunk) - Actual results may differ materially from projections due to risks and uncertainties, as described in the company's Form 10-Q filings[9](index=9&type=chunk) - ServiceTitan undertakes no obligation to update forward-looking statements, except as required by law[9](index=9&type=chunk) [Press and Investor Contacts](index=3&type=section&id=5.3%20Press%20and%20Investor%20Contacts) Contact information for ServiceTitan's press and investor relations teams is provided for inquiries - Press inquiries can be directed to Max Wertheimer at press@servicetitan.com[11](index=11&type=chunk) - Investor inquiries can be directed to Jason Rechel at investors@servicetitan.com[11](index=11&type=chunk)

Core Insights - ServiceTitan has announced a strategic partnership with Roto-Rooter, enhancing Roto-Rooter's operations with ServiceTitan's technology to drive growth and profitability [1][2] - The partnership aims to unlock new revenue opportunities and improve operational efficiency across Roto-Rooter's extensive network [2][3] - Roto-Rooter, a leader in plumbing and water cleanup services, operates in 121 company-owned territories and over 345 franchise territories in the U.S. and Canada [6] Company Overview - ServiceTitan is a cloud-based software platform designed to support trades businesses, providing tools for business management and customer experience enhancement [5] - Roto-Rooter, founded in 1935, is the largest provider of plumbing, drain cleaning, and water cleanup services in North America, with a strong commitment to technological innovation [6][3] Partnership Impact - The partnership will leverage ServiceTitan's technology across Roto-Rooter's national call centers and branch locations, aiming to set a new standard for service excellence in the industry [4][3] - Roto-Rooter's field employees and office staff will benefit from increased efficiency and automation, allowing them to focus more on customer service [3][2]

Core Insights - ServiceTitan reported strong financial results for the fiscal second quarter ended July 31, 2025, with significant growth in gross transaction volume and total revenue, indicating a robust performance in the trades sector [1][2][3] Financial Performance - Gross transaction volume (GTV) reached $22.9 billion, a year-over-year growth of 19% compared to $19.2 billion in the same quarter of 2025 [2] - Total revenue for the quarter was $242.1 million, reflecting a 25% increase from $193.0 million in the same quarter of the previous year [2] - Platform revenue was $232.7 million, up 26% year-over-year from $185.0 million [2] - Non-GAAP income from operations was $29.2 million, compared to $13.5 million in the same quarter of the previous year, resulting in a non-GAAP operating margin of 12.1% [2] - GAAP loss from operations was $34.8 million, slightly higher than the loss of $32.6 million in the same quarter of the previous year [2] Operational Highlights - The company achieved a net dollar retention rate of over 110%, indicating strong customer loyalty and expansion within existing accounts [2] - Cash provided by operating activities was $40.3 million, an increase from $25.3 million in the same quarter of the previous year [2] - Non-GAAP free cash flow was $34.3 million, compared to $18.7 million in the same quarter of the previous year [2] Future Outlook - For the fiscal third quarter of 2026, ServiceTitan expects total revenue between $237 million and $239 million, and non-GAAP income from operations between $14 million and $15 million [3] - The full fiscal year 2026 revenue is projected to be between $935 million and $940 million, with non-GAAP income from operations expected to be between $74 million and $76 million [3] Company Background - ServiceTitan is a cloud-based software platform designed to empower trades businesses, providing tools for contractors to manage operations and enhance customer experiences [7]

Group 1 - The individual investor focuses on undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1] - The investor has over 7 years of personal capital investment experience across a broad range of global companies [1] - The investor holds a Master's degree in Electrical Engineering and works as an automotive battery R&D engineer in Sweden [1] Group 2 - The investor maintains a watchlist of up to 100 companies, aiming to identify asymmetric investment opportunities for market-beating returns [1] - The write-ups on Seeking Alpha serve as a platform for the investor to present investment theses and receive community feedback [1]

Investor Contact LOS ANGELES, Aug. 06, 2025 (GLOBE NEWSWIRE) -- ServiceTitan, Inc. (Nasdaq: TTAN), the software platform that powers the trades, today announced that it will report its financial results for the fiscal second quarter ended July 31, 2025 after market close on Thursday, September 4, 2025. In conjunction with this report, ServiceTitan will host a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day to discuss its fiscal second quarter financial results, as well as ...

Core Insights - The Commercial Service Market Report by ServiceTitan indicates that 66% of commercial contractors entered 2025 with stable or growing revenues despite challenges such as skilled labor shortages, rising costs, and longer material lead times [1][2][4] - Optimism remains prevalent in the market, with 53% of contractors expressing a positive outlook [1] - Key operational challenges include access to warranty data, parts availability, and service history retrieval, which could hinder contractors' performance [3] Revenue and Profitability - 39% of contractors are focused on increasing net profit margins and optimizing existing processes due to rising costs [2] - Nearly three-quarters (73%) of contractors expect material costs to rise, with 54% anticipating lead times to increase by two weeks or more [4] - 59% of contractors are concerned that rising costs will significantly impact profitability [4] Technology and Cash Flow Management - Technology adoption is crucial for safeguarding profits, with contractors averaging two days to issue invoices but taking 28 days to receive payments [5] - The top payment collection methods include ACH (37%), checks (30%), and credit cards (14%) [5] Customer Relationship Management - Repeat customers (65%) and word-of-mouth referrals (60%) are primary revenue drivers for contractors [6] - 70% of contractors utilize CRM systems, with goals focused on increasing customer retention, lead conversions, and close rates [6] Preventative Maintenance Agreements - 63% of contractors report that over half of their customer base is secured through PMAs, contributing to additional revenue from pull-through work [7] AI and Digital Transformation - 39% of contractors recognize the potential of AI, indicating a readiness to adopt AI capabilities [8] - 44% of contractors see improving customer experience through online portals as extremely important, although only 26% use these portals for direct communication [9]