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ServiceTitan, Inc. Class A (TTAN)
:TTAN
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ServiceTitan, Inc. Class A
(NASDAQ:TTAN)
Rating:47Neutral
Price Target:
$105.00
▲(22.76%Upside)
Positive Factors
Earnings
ServiceTitan reported strong first-quarter results, with all key metrics ahead of expectations.
Revenue Growth
Total revenue growth came in at 27%, driven by a balanced mix across existing customer expansion and new customer activity.
Negative Factors
Growth Challenges
Further acceleration in growth may be required for shares to push higher, but accelerating growth again likely proves challenging.
Investor Expectations
Shares down double-digits in the after-markets, suggesting either higher buy-side expectations or trading dynamics ahead of lock-up expiration.
ServiceTitan, Inc. Class A (TTAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.66B
Dividend YieldN/A
Average Volume (3M)637.83K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth26.08%
EPS Growth-62.42%
CountryUS
Employees3,049
SectorTechnology
Sector Strength83
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.18
Shares Outstanding77,236,430
10 Day Avg. Volume1,016,377
30 Day Avg. Volume637,832
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)5.40
Price to Sales (P/S)0.00
P/FCF Ratio406.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$116.55Price Target Upside36.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
ServiceTitan, Inc. Class A Business Overview & Revenue Model
Company DescriptionServiceTitan, Inc. Class A (TTAN) is a leading software platform dedicated to serving the trades industry, including HVAC, plumbing, electrical, and other service-based sectors. The company provides a comprehensive suite of cloud-based business management solutions designed to streamline operations, enhance customer service, and improve overall business efficiency. ServiceTitan's platform integrates various features such as scheduling, dispatching, invoicing, and customer relationship management, enabling trades businesses to manage their operations effectively from a centralized system.
How the Company Makes MoneyServiceTitan makes money primarily through a subscription-based revenue model. Businesses in the trades industry pay recurring subscription fees to access and use ServiceTitan's software platform. These fees vary based on the size of the business, the number of users, and the specific features or modules they choose to implement. Additionally, the company generates revenue through transaction fees for payment processing services integrated into their platform. ServiceTitan may also engage in strategic partnerships with industry stakeholders, equipment manufacturers, and financial service providers to further enhance its offerings and potentially create additional revenue streams.
ServiceTitan, Inc. Class A Earnings Call Summary
Earnings Call Date:Jun 05, 2025
(Q4-2025)
| % Change Since: -25.33%|
Next Earnings Date:Jul 09, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, positive incremental operating margins, and a milestone achievement in becoming free cash flow positive. The company demonstrated resilience and momentum across its core and emerging markets, particularly in commercial and roofing segments. However, some growth was attributed to external factors like weather, and there are anticipated seasonal headwinds in the upcoming fiscal quarter. Overall, the company's performance and strategic initiatives indicate a positive outlook.Q4-2025 Updates
Positive Updates
Strong Revenue Growth
ServiceTitan reported $772 million in total revenue for fiscal year 2025, growing 26% year-over-year, with subscription revenue up 28% year-over-year. Q4 total revenue was $209.3 million, up 29% year-over-year.
Positive Incremental Operating Margins
The company achieved 27% incremental operating margins, with an improvement of over 600 basis points in operating margin.
First-Time Free Cash Flow Positive
ServiceTitan was free cash flow positive for the first time with Q4 free cash flow reaching $10.8 million, up from negative $2.2 million in the prior year fourth quarter.
Commercial and Roofing Growth
Investments in commercial and roofing segments delivered strong results, contributing to overall growth.
Record Gross Transaction Volume
Q4 gross transaction volume was $17 billion, up 26% year-over-year, surpassing growth rates from prior quarters.
Negative Updates
Impact of Weather on GTV
Weather patterns contributed roughly 150 basis points to year-over-year GTV growth, indicating some reliance on external factors.
Seasonal Fluctuations and Headwinds
Q1 FY2026 is expected to have a 150 basis point headwind to reported year-over-year GTV and usage revenue growth due to one fewer business day.
Company Guidance
During ServiceTitan's earnings call for Q4 and fiscal year 2025, the company provided guidance for fiscal year 2026, projecting total revenue between $895 million and $905 million, alongside an operating income range of $48 million to $53 million. The company achieved $772 million in total revenue for 2025, reflecting a 26% year-over-year growth, with subscription revenue increasing by 28% year-over-year. ServiceTitan also reported a Q4 gross transaction volume (GTV) of $17 billion, up 26% year-over-year. The company's Q4 total revenue was $209.3 million, a 29% increase year-over-year, driven by a 31% rise in subscription revenue and a 26% increase in usage revenue. Platform gross margin for Q4 was 76.7%, and total gross margin was 70.2%. The company achieved free cash flow positivity for the first time, reporting $10.8 million in Q4, a significant improvement from the negative $2.2 million in the previous year's fourth quarter. ServiceTitan's net dollar retention was greater than 110%, and gross dollar retention exceeded 95% for the fiscal year. The company outlined four primary focus areas for 2026: expanding enterprise capabilities, increasing Pro-product adoption, deepening engagement in commercial sectors, and growing in the roofing market.ServiceTitan, Inc. Class A Financial Statement Overview
Summary
ServiceTitan, Inc. demonstrates strong revenue growth and cash flow improvement, but struggles with profitability due to high operating losses. The balance sheet shows strong equity and low leverage, indicating financial stability. Improving cost management is crucial for sustainable profitability.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 | ||
| Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|
| Income Statement | Total Revenue | |
| 771.88M | 614.34M | 467.73M | Gross Profit |
| 500.93M | 376.63M | 266.02M | EBIT |
| -229.95M | -182.86M | -221.86M | EBITDA |
| -141.04M | -93.58M | -170.38M | Net Income Common Stockholders |
| -239.09M | -195.15M | -269.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |
| 441.80M | 146.71M | 202.49M | Total Assets |
| 1.77B | 1.52B | 1.60B | Total Debt |
| 165.41M | 245.96M | 253.12M | Net Debt |
| -276.39M | 99.25M | 50.63M | Total Liabilities |
| 314.06M | 2.00B | 1.94B | Stockholders Equity |
| 1.45B | -477.86M | -335.15M |
| Cash Flow | Free Cash Flow | |
| 15.45M | -84.32M | -212.72M | Operating Cash Flow |
| 37.05M | -39.70M | -120.75M | Investing Cash Flow |
| -22.78M | -40.35M | -681.18M | Financing Cash Flow |
| 279.71M | 24.27M | 889.03M |
ServiceTitan, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $15.09B | 63.25 | 25.20% | 0.50% | 10.71% | -27.64% | |
75 Outperform | $9.66B | 377.86 | 1.03% | ― | 14.97% | -51.02% | |
73 Outperform | $10.45B | ― | -14.15% | ― | -16.74% | 49.75% | |
68 Neutral | $10.12B | ― | -10.78% | ― | 18.59% | 10.73% | |
62 Neutral | $11.80B | 10.37 | -7.29% | 2.91% | 7.39% | -7.96% | |
60 Neutral | $9.02B | 192.75 | -12.98% | ― | 17.04% | -273.13% | |
47 Neutral | $9.66B | ― | ― | 26.08% | -62.42% |
* Technology Sector Average
Performance Comparison
TTAN
ServiceTitan, Inc. Class A
106.60
6.60
6.60%
DAY
Dayforce Inc
60.42
9.74
19.22%
ESTC
Elastic
86.39
-26.38
-23.39%
U
Unity Software
25.13
7.16
39.84%
BSY
Bentley Systems
49.75
1.07
2.20%
PCOR
Procore Technologies
67.86
0.68
1.01%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.