Education
About Us
Working with TipRanks
Follow Us
ServiceTitan, Inc. Class A (TTAN)
NASDAQ:TTAN
Top Page
ServiceTitan, Inc. Class A
(NASDAQ:TTAN)
Rating:54Neutral
Price Target:
$116.00
▼(-2.54% Downside)
Positive Factors
Financial Performance
ServiceTitan reported another strong quarter, which was attributed to both strength in usage revenue/GTV against a tough comp as well as faster growth from new customers.
Market Positioning
The stock is considered a category-leading vertical SaaS name that shows durable growth and expanding margins, making it a recommended addition to portfolios.
Strategic Partnerships
A significant customer win with Roto-Rooter is expected to enhance ServiceTitan's commercial presence as the S-curve scales.
Negative Factors
Dependency on Large Customers
ServiceTitan is focusing on larger customers to grow monetization and sustain momentum in the commercial operators' market, a larger and faster-growing sector.
Market Risks
Despite positive demand commentary, any potential over-reliance on specific acquisition channels such as Google paid search could impact future growth.
Valuation Concerns
The combination of the recent pullback in shares with another quarter of outperformance and positive estimate revisions would suggest a valuation too cheap at current levels.
ServiceTitan, Inc. Class A (TTAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.34B
Dividend YieldN/A
Average Volume (3M)854.59K
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth26.45%
EPS Growth-74.34%
CountryUS
Employees3,049
SectorTechnology
Sector Strength81
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.33
Shares Outstanding77,266,754
10 Day Avg. Volume1,212,473
30 Day Avg. Volume854,594
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda-78.65
Forecast
1Y Price Target
$132.44Price Target Upside11.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
ServiceTitan, Inc. Class A Business Overview & Revenue Model
Company DescriptionServiceTitan, Inc. is a leading software company that provides business management solutions for home and commercial service businesses. Operating primarily within the software-as-a-service (SaaS) sector, ServiceTitan offers a comprehensive suite of tools designed to streamline operations for service contractors in industries such as plumbing, HVAC, electrical, and more. The platform includes features for scheduling, dispatching, invoicing, customer relationship management, and business analytics, enabling service companies to enhance efficiency and improve customer satisfaction.
How the Company Makes MoneyServiceTitan generates revenue primarily through its subscription-based SaaS model. Businesses pay a recurring fee to access and utilize the platform's various features and tools. This model provides a consistent revenue stream as long as clients remain subscribed. Additionally, ServiceTitan may earn revenue through integration partnerships with third-party applications and services, which can enhance the functionality of its platform. The company may also offer premium services or modules at an additional cost, further diversifying its income sources. Key factors contributing to its earnings include its large customer base across various service industries and the ongoing demand for digital transformation in business operations.
ServiceTitan, Inc. Class A Earnings Call Summary
Earnings Call Date:Sep 04, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jan 19, 2026
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance and growth driven by significant advancements in AI and automation, alongside strategic partnerships like the one with Roto-Rooter. While some challenges were noted, such as slower HVAC growth and hiring delays, the overall outlook remains positive with robust expansion in pro products and improved margins.Q2-2026 Updates
Positive Updates
Strong Financial Performance and Growth
ServiceTitan reported a 27% subscription revenue growth and a 25% total revenue growth year-over-year. The company achieved record operating margins, improving by 510 basis points.
Successful Use of AI for Business Automation
The introduction of ServiceTitan's AI, Titan Intelligence, enabled the first fully automated job, showcasing significant advancements in automation capabilities for customers like Gulfshore, which saw a 22% increase in close rate and a $370,000 revenue increase from automated marketing campaigns.
Expansion of Pro Products
Pro products continue to be the fastest-growing area of the business, with significant demand for AI-driven automation that enhances operational efficiency and revenue growth for customers.
New Partnership with Roto-Rooter
ServiceTitan announced a partnership with Roto-Rooter, the largest provider of plumbing and drain cleaning services in North America, expected to go live in early calendar year 2026.
Improved Gross Margins
Platform gross margin improved to 80.7%, up 280 basis points year-over-year, driven by infrastructure cost leverage and sales and marketing improvements.
Negative Updates
Slower Growth in Residential HVAC
Residential HVAC showed slower growth compared to prior periods due to challenging comparables from the previous year's hot summer, despite the overall growth in other trades.
Challenges in Catching Up with Hiring
ServiceTitan has been behind in hiring but expects to catch up later in the year, indicating potential challenges in scaling human resources as planned.
Company Guidance
During the ServiceTitan Second Quarter Fiscal Year 2026 earnings call, the company provided robust guidance for the fiscal third quarter and full fiscal year 2026. They anticipate total revenue for the third quarter to range between $237 million and $239 million, with an operating income forecast of $14 million to $15 million. For the full fiscal year 2026, ServiceTitan projects total revenue to be between $935 million and $940 million, alongside an operating income of $74 million to $76 million. The company reported a 19% year-over-year growth in gross transaction volume (GTV) to $22.9 billion and a 25% increase in total revenue, reaching $242.1 million for the second quarter. Subscription revenue grew by 27% year-over-year to $174.8 million, while usage revenue saw a 23% increase, amounting to $58 million. Additionally, the second quarter marked a record operating margin of 12.1%, improving by 510 basis points year-over-year, with a notable free cash flow of $34.3 million. The firm emphasized its commitment to leveraging AI and automation to enhance customer value, as shown by their case study with Gulfshore, which realized significant financial gains through ServiceTitan's platform.ServiceTitan, Inc. Class A Financial Statement Overview
Summary
ServiceTitan, Inc. shows strong revenue growth and improving cash flow, yet struggles with profitability and operational efficiency. The balance sheet reflects a robust equity position with low leverage, providing financial stability. Continued focus on reducing operating losses and improving cost management is crucial.Income Statement
ServiceTitan, Inc. shows consistent revenue growth with a 25.63% increase from 2024 to 2025, following a robust 31.34% rise from 2023 to 2024. However, the company struggles with profitability, as evidenced by negative EBIT, EBITDA, and net income margins. The gross profit margin is relatively strong at 64.93% for 2025, but the high operating losses indicate significant challenges in cost management and achieving economies of scale.40
Negative
Balance Sheet
The balance sheet shows a strong equity position with a positive stockholders' equity of $1.45 billion in 2025, recovering from negative equity in previous years. The debt-to-equity ratio stands at a low 0.11, indicating low leverage and reduced financial risk. However, the equity ratio of 82.22% suggests a high reliance on equity financing, which might be unsustainable without profitability improvements.45
Neutral
Cash Flow
ServiceTitan demonstrates a positive turnaround in cash flow with an operating cash flow of $37.05 million in 2025, up from negative values in prior years. Free cash flow is also positive at $15.45 million, marking a significant improvement. The free cash flow to net income ratio remains challenging due to negative net income, but the positive cash flow trajectory indicates better cash management and operational efficiencies.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 458.22B | 771.88M | 614.34M | 467.73M |
| Gross Profit | 320.01B | 500.93M | 376.63M | 266.02M |
| EBITDA | -132.08M | -141.04M | -93.58M | -170.38M |
| Net Income | -225.99M | -239.09M | -195.15M | -269.52M |
Balance Sheet | ||||
| Total Assets | 1.78T | 1.77B | 1.52B | 1.60B |
| Cash, Cash Equivalents and Short-Term Investments | 471.49B | 441.80M | 146.71M | 202.49M |
| Total Debt | 54.74B | 165.41M | 245.96M | 253.12M |
| Total Liabilities | 294.47B | 314.06M | 366.11M | 385.85M |
| Stockholders Equity | 1.49T | 1.45B | -477.86M | -335.15M |
Cash Flow | ||||
| Free Cash Flow | 24.68B | 15.45M | -84.32M | -212.72M |
| Operating Cash Flow | 25.80B | 37.05M | -39.70M | -120.75M |
| Investing Cash Flow | -23.40M | -22.78M | -40.35M | -681.18M |
| Financing Cash Flow | 309.41M | 279.71M | 24.27M | 889.03M |
ServiceTitan, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $10.89B | 227.27 | 1.89% | ― | 13.46% | 2.06% | |
69 Neutral | $16.34B | 68.75 | 23.69% | 0.48% | 10.45% | -32.43% | |
68 Neutral | $9.21B | 192.75 | -9.65% | ― | 17.42% | -228.98% | |
63 Neutral | $18.51B | ― | -13.62% | ― | -13.74% | 48.10% | |
63 Neutral | $10.53B | ― | -11.54% | ― | 16.08% | -51.78% | |
61 Neutral | $35.56B | 9.00 | -10.49% | 1.86% | 8.45% | -8.32% | |
54 Neutral | $10.34B | ― | -37.28% | ― | 26.45% | -74.34% |
* Technology Sector Average
Performance Comparison
TTAN
ServiceTitan, Inc. Class A
119.02
19.02
19.02%
DAY
Dayforce Inc
69.34
12.53
22.06%
ESTC
Elastic
92.30
21.20
29.82%
U
Unity Software
45.50
28.33
165.00%
BSY
Bentley Systems
54.28
8.20
17.80%
PCOR
Procore Technologies
70.87
16.57
30.52%
ServiceTitan, Inc. Class A Corporate Events
Executive/Board ChangesShareholder Meetings
ServiceTitan Holds Annual Stockholders Meeting on June 18
Positive
Jun 23, 2025
On June 18, 2025, ServiceTitan, Inc. held its Annual Meeting of Stockholders, where stockholders voted on two key proposals. The first proposal involved the election of three Class I directors, who will serve until the 2028 Annual Meeting. The second proposal ratified the appointment of PricewaterhouseCoopers LLP as the company’s independent registered public accounting firm for the fiscal year ending January 31, 2026. These decisions are expected to impact the company’s governance and financial oversight positively.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.