Core Insights - FieldRoutes, a ServiceTitan company, continues its partnership with the National Pest Management Association (NPMA) as a Strategic Partner at the 2025 PestWorld conference, highlighting its commitment to innovation and growth in the pest control industry [1][3] Company Overview - FieldRoutes is a leading cloud-based and mobile SaaS provider for field service businesses, offering a platform that automates various aspects of field service operations, including office management, route optimization, payment processing, and customer acquisition [6] Conference Participation - FieldRoutes will showcase its latest platform updates at Booth 1213 during the PestWorld conference from October 21–24, allowing attendees to learn how top-performing pest control companies enhance operations and customer experiences through its technology [2][5] Industry Impact - According to the 2025 Pest Control Technology (PCT) Top 100 list, FieldRoutes customers grew at a median rate 1.5 times faster than non-FieldRoutes companies, with 40 of the Top 100 pest control companies using FieldRoutes or ServSuite platforms, indicating the company's significant impact on industry leaders [4] Educational Sessions - The conference will feature a breakout session led by ServiceTitan Co-Founder and President, Vahe Kuzoyan, focusing on AI and the future of field services, emphasizing how Titan Intelligence can enhance back-office productivity for field service companies [3]

Group 1: Artisan Mid Cap Fund Performance - Artisan Mid Cap Fund's Investor Class fund ARTMX returned 8.80%, Advisor Class fund APDMX also posted a return of 8.80%, and Institutional Class fund APHMX returned 8.83% in Q3 2025, significantly outperforming the Russell Midcap Growth Index which returned 2.78% [1] - The strong performance was primarily driven by holdings in the health care sector [1] Group 2: ServiceTitan, Inc. Overview - ServiceTitan, Inc. (NASDAQ:TTAN) provides a cloud-based software platform for managing business workflows in the trades sector, which has been historically underserved by technology [3] - The stock of ServiceTitan, Inc. had a one-month return of 14.90% and a year-to-date gain of 5.70%, closing at $97.01 per share with a market capitalization of $9.017 billion on October 14, 2025 [2] - In Q2 2025, ServiceTitan reported total revenue of $242.1 million, reflecting a 25% year-over-year increase [4] Group 3: Investment Strategy and Market Position - Artisan Mid Cap Fund initiated new positions in ServiceTitan, Woodward, and Teledyne Technologies during the quarter, viewing ServiceTitan as a leading vertical software provider with multiple growth opportunities [3] - Despite recognizing ServiceTitan's potential, the company believes that certain AI stocks may offer greater upside potential and less downside risk [4] - At the end of Q2 2025, ServiceTitan was held by 51 hedge fund portfolios, an increase from 25 in the previous quarter [4]

Core Insights - ServiceTitan has announced a strategic partnership with Galaxy Service Partners, focusing on empowering commercial contractors through advanced technology solutions [1][2] - Galaxy Service Partners aims to differentiate itself from traditional private equity firms by fostering a people-first platform that emphasizes strong leadership and company culture [2][3] - The partnership will leverage ServiceTitan's comprehensive technology suite to enhance operational efficiency and support long-term growth for Galaxy's portfolio of brands [4][5] Company Overview - ServiceTitan is a cloud-based software platform designed to support trades businesses by providing tools for business management, customer experience, and operational efficiency [7] - Galaxy Service Partners is a newly formed alliance of companies specializing in commercial doors, automatic gates, and access control, focusing on maintaining unit-level ownership for its partners [8] Technology Utilization - Galaxy will utilize ServiceTitan's technology for property intelligence, AI-driven project controls, modern customer experiences, flexible estimating tools, streamlined workflows, and integrated technology stacks [4] - The technology suite aims to improve decision-making, enhance customer transparency, and boost productivity for contractors [4][5] Leadership and Vision - Galaxy was founded by industry veterans who previously established Guild Garage Group, which has become one of ServiceTitan's fastest-growing enterprise customers [3] - The leadership emphasizes a disciplined approach to scaling while preserving company culture and driving consistent performance across its brands [3][5]

Core Insights - The IPO market is experiencing a resurgence, with several companies going public to meet growing investor demand for newly listed shares [1] Company Summaries ServiceTitan - ServiceTitan completed its IPO late last year, providing cloud-based software for contractors in the trades industry, which generates an estimated $1.5 trillion in annual revenue in the U.S. [3][4] - The company currently serves a market that produces about $75 billion in revenue, indicating significant room for expansion as it aims to capture more businesses and extend services into additional trades [5] - ServiceTitan generates less than $900 million in annual revenue, with potential revenue from existing customers estimated to reach $1.5 billion. The company sees a $13 billion opportunity with its current platform and over $30 billion as it expands [6] - Revenue grew 25% in the fiscal second quarter of 2026 to $242 million, driven by strong customer retention and expansion, with a net dollar revenue retention rate exceeding 110% [7] - The company has substantial untapped market potential and an expanding customer base, suggesting a long path for revenue growth [8] Klarna Group - Klarna Group recently completed its IPO, focusing on buy now, pay later (BNPL) services and leveraging AI to enhance productivity and services [9] - The addressable market for Klarna's payments offering is $520 billion, of which it currently holds only 0.6%, indicating significant growth potential [10] - Management estimates over $100 billion of growth in existing markets and more than $400 billion in potential new markets, with the digital advertising market valued at $570 billion, where Klarna holds a mere 0.03% [11] - The company serves 790,000 merchants (a 34% year-over-year increase) and supports 111 million active customers (a 31% increase), contributing to a 20% revenue boost to $823 million [12] - Klarna's small market share in both payments and digital advertising suggests ample opportunity for rapid revenue growth as it expands into new sectors [13] Investment Outlook - Both ServiceTitan and Klarna are positioned to capitalize on their respective market opportunities through proprietary technology, indicating potential for game-changing returns [14]

Core Insights - The initiative by ServiceTitan connects contractors with The Home Depot's Path to Pro program to address the skilled trades labor gap in the U.S. [1][3] - The skilled trades industry is currently facing a significant labor shortage, with over 400,000 open construction jobs [2][7] - The partnership aims to create a sustainable future for the trades by investing in the next generation of skilled professionals [3] Company Overview - ServiceTitan is a software platform designed to support trades businesses with a cloud-based, end-to-end solution that helps contractors manage operations and enhance customer experience [6] - The Home Depot's Path to Pro program connects skilled tradespeople with job opportunities and offers free virtual classes to educate individuals about careers in the trades [7] Program Details - Contractors can join the Path to Pro program by registering for Home Depot's Pro Xtra loyalty program, gaining access to a hiring network and free training resources [4][8] - The Path to Pro Skills Program provides free, on-demand training and educational content to prepare future trades and construction professionals [8] - The Path to Pro Network allows ServiceTitan contractors to post job openings, review candidate portfolios, and connect with skilled tradespeople [8]

Core Insights - Aspire Software's 2026 Commercial Landscape Industry Report highlights the resilience of contractors amid labor shortages, economic pressures, and rising costs, focusing on customer retention, operational efficiency, and technology adoption [1][9]. Contractor Focus - 79% of contractors aim to grow revenue in 2025, prioritizing customer acquisition and retention over adding new services, with 59% earning most revenue from recurring maintenance services [2][3]. - Word-of-mouth and repeat business are crucial, with 35% of revenue attributed to repeat clients and 26% from referrals [3]. Labor Market Challenges - Labor shortages are a significant concern, with 70% of contractors planning to raise wages in 2025, 44% by at least 4%, due to pay disparities between maintenance and construction crews [4][5]. - Hiring challenges extend beyond headcount to finding quality talent, prompting wage increases as a competitive strategy [5]. Cash Flow Issues - Cash flow delays hinder stability, with 76% of contractors billing within four days of job completion, yet only half receive payments on time, and over 60% report payments being at least one week late [5][6]. Technology Investment - There is significant fragmentation in software usage, with 62% of contractors using seven or more solutions, leading to a shift towards integrated platforms [7]. - Currently, 55% of contractors use end-to-end business management solutions, with 31% planning to invest in these platforms in 2025 [8]. Future Outlook - As contractors face ongoing economic uncertainty and staffing challenges, those adapting by tightening processes and investing in technology are positioned for resilience [9].

Core Viewpoint - The article emphasizes the importance of fundamental analysis in identifying undervalued companies with long-term growth potential, advocating for a value investing approach that focuses on purchasing quality companies at a discount to their intrinsic value and holding them for extended periods to maximize earnings and shareholder returns. Group 1 - The investment strategy combines value investing principles with a focus on long-term growth [1] - The approach involves buying quality companies at a discount to their intrinsic value [1] - The goal is to allow companies to compound their earnings and shareholder returns over time [1]

Core Insights - 57% of commercial contractors spend nearly half of their time on non-selling activities, indicating a significant opportunity loss for performance improvement and growth [1] - The report emphasizes the importance of integrating AI with CRM systems to enhance efficiency and drive revenue growth [2] Sales and Marketing Challenges - 44% of businesses experience sales cycles of four months or longer, with 10% having cycles of 4-6 months, 11% of 7-12 months, and 23% exceeding 12 months, leading to difficulties in generating new leads [3] - 71% of businesses rely on referrals and repeat business from existing customers, and 71% also depend on paid advertising as key revenue sources [4] Account Management and CRM Insights - 63% of businesses have a clear, structured approach to account ownership, while 37% operate on an ad hoc basis, indicating a gap in account management [5] - Despite 78% adoption of CRMs, only 41% of contractors report satisfaction, with 37% citing a lack of industry-specific features as a primary challenge [6] AI Adoption and Efficiency - Only 29% of respondents currently use AI in sales processes, with applications focused on sales content creation (58%), lead scoring (43%), and automating CRM data entry (43%) [7] - Higher-performing businesses are more likely to adopt AI, which can enhance efficiency and reduce overhead work [7]

Core Insights - ServiceTitan released its 2025 Consumer Trends in the Trades Report, highlighting evolving homeowner preferences and spending behaviors, which can help contractors enhance customer satisfaction and loyalty [1][3] Industry Trends - Homeowners are increasingly seeking a five-star experience, emphasizing the importance of brand presence, digital convenience, and flexible payment options when selecting contractors [4] - The demand for convenience, personalization, and trust is growing, with homeowners expecting tailored communication and payment methods [2][4] Consumer Behavior - Checks as a payment method have declined from 59% in 2015 to 36% in 2024, indicating a shift towards modern payment experiences [4] - 80% of homeowners start their search for services online, yet many express dissatisfaction with the availability of trustworthy reviews and financing information [6] - 41% of consumers actively seek financing options, and contractors offering financing see 12% higher close rates and 13% higher average ticket sizes [6] Demographic Insights - Women are the primary decision-makers in 65% of remodeling projects, valuing trust, branding, and clear pricing [6] - Households earning over $100K annually are more likely to invest in home improvements, presenting growth opportunities for contractors [6] - The next generation of homeowners is more diverse, with 48% of Gen Z identifying as non-white, which is projected to influence future homeownership trends [6] Payment Preferences - 94% of home service customers own a credit card, with 90% using them regularly, reflecting a shift towards online payments and SMS-based invoicing [6] - The number of limited English proficiency households has nearly doubled from 1980 to 2021, indicating a need for contractors to cater to diverse linguistic backgrounds [6]

Core Insights - The 2025 Consumer Trends in the Trades Report by ServiceTitan highlights the need for contractors to adapt to rising consumer expectations regarding convenience, payment options, and brand trust to enhance business growth and customer loyalty [1][6]. Group 1: Consumer Expectations - Homeowners are increasingly demanding a five-star experience, which includes brand presence, digital convenience, and flexible payment options [4][5]. - Communication preferences are shifting, with homeowners wanting options such as phone calls, text messages, and real-time job updates [2][5]. Group 2: Payment Trends - The use of checks for home-service payments has significantly declined from 59% in 2015 to 36% in 2024, indicating a shift towards modern payment methods [4]. - 94% of home service customers now own a credit card, and 90% use them regularly, with younger consumers favoring online payments and SMS-based invoicing [5]. Group 3: Demographic Insights - Women are the primary decision-makers in 65% of remodeling projects in the U.S., emphasizing the importance of trust, branding, and clear pricing options [5]. - Households earning over $100K annually are more likely to invest in home improvements, presenting growth opportunities for contractors [5]. - The next generation of homeowners is more diverse, with 48% of Gen Z customers identifying as non-white, which is projected to influence future homeownership trends [5]. Group 4: Digital Engagement - 80% of homeowners start their search for contractors online, yet many express dissatisfaction with the availability of trustworthy reviews and financing information [5]. - Contractors offering financing options see 12% higher close rates and 13% higher average ticket sizes, highlighting the importance of flexible payment solutions [5].