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ServiceTitan, Inc. Class A (TTAN)
NASDAQ:TTAN
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ServiceTitan, Inc. Class A
(NASDAQ:TTAN)
Select Model
Select Model
Rating:52Neutral
Price Target:
$94.00
▲(4.32% Upside)
ServiceTitan, Inc. demonstrates strong revenue growth and improving cash flow, which are significant strengths. However, challenges in profitability and valuation weigh on the overall score. The positive sentiment from the earnings call, driven by strategic initiatives and innovation, provides a favorable outlook, but technical indicators suggest caution due to bearish trends.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.
Cash Flow Improvement
Improving cash flow enhances financial flexibility and supports reinvestment in growth initiatives, strengthening the company's financial health.
Strategic Innovation
Innovative product developments and AI integration can drive efficiency and competitive advantage, fostering long-term growth and market leadership.
Negative Factors
Profitability Challenges
Ongoing profitability issues may hinder sustainable growth, requiring focus on cost management and operational efficiency to achieve financial stability.
Dependency on Partnerships
Reliance on external partnerships poses risks if partners underperform, potentially impacting strategic initiatives and market positioning.
Integration Challenges
Integration hurdles in commercial sectors may delay growth and limit ServiceTitan's ability to capitalize on new market opportunities.
ServiceTitan, Inc. Class A (TTAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.08B
Dividend YieldN/A
Average Volume (3M)1.06M
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth26.49%
EPS Growth-44.77%
CountryUS
Employees3,049
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.24
Shares Outstanding80,718,544
10 Day Avg. Volume764,346
30 Day Avg. Volume1,057,792
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)2.98
Price to Sales (P/S)5.61
P/FCF Ratio280.29
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue9.24
Enterprise Value/Gross Profit13.46
Enterprise Value/Ebitda-66.86
Forecast
1Y Price Target
$136.31Price Target Upside51.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)0.93
Revenue Forecast (FY)$952.47M
ServiceTitan, Inc. Class A Business Overview & Revenue Model
Company DescriptionServiceTitan, Inc. engages in the collection of field service activities required to install, maintain, and service the infrastructure and systems of residences and commercial buildings. The company was founded by Ara Mahdessian and Vahe Kuzoyan on June 8, 2008 and is headquartered in Glendale, CA.
How the Company Makes MoneyServiceTitan generates revenue primarily through its subscription-based software model. The company charges its clients a monthly fee for access to its platform, which is tiered based on the size of the business and the features utilized. Key revenue streams include software licensing fees, transaction fees for payment processing, and additional charges for premium features and services. Furthermore, ServiceTitan has formed strategic partnerships with various industry organizations and service providers, enhancing its market presence and contributing to its growth. These collaborations often lead to cross-promotional opportunities and increased customer acquisition, further bolstering the company's earnings.
ServiceTitan, Inc. Class A Key Performance Indicators (KPIs)
ServiceTitan, Inc. Class A Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 19, 2026
Earnings Call Sentiment Positive
ServiceTitan reported strong financial performance with significant revenue growth and record free cash flow, driven by successful product innovations and positive customer feedback. The company is expanding into commercial and new trade sectors, although challenges in integration and dependency on partnerships were noted. Overall, the company's outlook remains positive with strategic focus on AI and automation.Q3-2026 Updates
Positive Updates
Strong Revenue Growth
ServiceTitan reported a 25% year-over-year growth in total revenue, reaching $249.2 million, with subscription revenue growing by 26% and usage revenue by 24%.
Record Free Cash Flow
The company achieved a record free cash flow of $38 million in Q3, up from $11 million in the prior year.
Successful Product Innovation
Introduction of FieldPro, expansion of AI capabilities, and a strong focus on automation through the MAX program, with positive early results.
Positive Customer Feedback
The Wrench Group, a long-term customer, expressed strong satisfaction with ServiceTitan's platform, highlighting its role in enhancing operational efficiency and strategic growth.
Commercial and New Trade Expansion
ServiceTitan made progress in commercial sectors with new CRM and construction management capabilities, aiming to become a market standard.
Negative Updates
Potential Challenges in Commercial Sector
Although there has been strong growth, there is an acknowledgment that the commercial segment requires further integration and standardization.
Macroeconomic Uncertainties
Concerns about macroeconomic factors were discussed, although current indicators within the company show stability.
Dependency on External Partnerships
The success of new initiatives like roofing depends on partnerships with companies like Verisk, which could pose a risk if partnerships do not perform as expected.
Company Guidance
During the third quarter of fiscal year 2026, ServiceTitan, Inc. reported a 26% year-over-year growth in subscription revenue and a 25% increase in total revenue, with the gross transaction volume (GTV) reaching $21.7 billion, reflecting a 22% growth. The company achieved a platform gross margin of 80.2% and a total gross margin of 74.3%, marking improvements of 310 and 390 basis points, respectively, from the previous year. Operating income for the quarter was $21.5 million, yielding an 8.6% operating margin, which was a 780 basis point enhancement year-over-year. Free cash flow hit a record $38 million for the quarter. Guidance for the fourth quarter anticipates total revenue between $244 million and $246 million, with operating income ranging from $16 million to $17 million. For the full fiscal year 2026, ServiceTitan projects total revenue between $951 million and $953 million, with operating income expected in the range of $83 million to $84 million. The company's strategy emphasizes the integration of AI to enhance customer operations and maximize revenue and profitability, with a strong focus on expanding their commercial CRM and construction management capabilities.ServiceTitan, Inc. Class A Financial Statement Overview
Summary
ServiceTitan, Inc. shows strong revenue growth and improving cash flow, yet faces challenges in achieving 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 will be crucial for translating growth into 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 | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 771.88M | 614.34M | 467.73M |
| Gross Profit | 500.93M | 376.63M | 266.02M |
| EBITDA | -141.04M | -93.58M | -170.38M |
| Net Income | -239.09M | -195.15M | -269.52M |
Balance Sheet | |||
| Total Assets | 1.77B | 1.52B | 1.60B |
| Cash, Cash Equivalents and Short-Term Investments | 441.80M | 146.71M | 202.49M |
| Total Debt | 165.41M | 245.96M | 253.12M |
| Total Liabilities | 314.06M | 366.11M | 385.85M |
| Stockholders Equity | 1.45B | 1.15B | 1.21B |
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 Technical Analysis
Negative
90.11
Price Trends
98.53
Negative
101.12
Negative
106.10
Negative
Market Momentum
-0.65
Positive
33.53
Neutral
14.06
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTAN, the sentiment is Negative. The current price of 90.11 is below the 20-day moving average (MA) of 104.83, below the 50-day MA of 98.53, and below the 200-day MA of 106.10, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 33.53 is Neutral, neither overbought nor oversold. The STOCH value of 14.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTAN.
ServiceTitan, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $7.64B | 35.46 | 20.42% | ― | 13.30% | 2.80% | |
69 Neutral | $7.65B | 39.43 | 44.69% | ― | 18.88% | 54.44% | |
66 Neutral | $6.62B | 108.32 | 5.81% | ― | 28.62% | 186.67% | |
65 Neutral | $7.64B | -70.48 | -12.84% | ― | 16.98% | -265.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $4.30B | 137.90 | 5.68% | ― | 13.93% | ― | |
52 Neutral | $9.08B | -27.41 | -36.41% | ― | 26.49% | -44.77% |
* Technology Sector Average
TTAN
ServiceTitan, Inc. Class A
90.11
-8.01
-8.16%
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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.