revenue
285–287 $million
Q3 2027
official guidance
SERVICETITAN, INC.
Last · NasdaqGS$74.85+2.16 (+2.97%)live · yahoo · 16m ago
Market cap$7.22B84.1M sh
P/E · TTM-53.4fwd 45.5 · eps -1.36 · loss
Beta—vs S&P 500
Div yield0.00%annual · TTM
52w range
$53.00$111.36
Volume372.9Ksession
| Revenue | $1.1B |
|---|---|
| Operating income | $-53.3M |
| Net income | $-47.7M |
| Free cash flow | $136.8M |
| Operating margin | -5.0% |
| Net margin | -4.5% |
| Return on equity | -3.0% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong profitability and Max momentum are offset by softer demand and execution uncertainty.
Hold: ServiceTitan delivered strong execution—Q2 revenue rose 21% to $292.8 million, operating margin expanded to 15.2%, and free cash flow increased 47% to $50.5 million—but the underlying GTV slowdown and AI transition create near-term uncertainty. Max adoption is accelerating toward 700 locations and FY2027 incremental-margin guidance rose to 33%, yet the $4 million–$5 million second-half revenue headwind, softer HVAC lead volumes, and unproven implementation scalability make this more of a wait-for-proof story than a clean buy.
Themes
- Max Adoption
- Agentic Ai
- Virtual Agents
- Gtv Slowdown
- Hvac Demand
- Software Factory
Near term
Q3 revenue guidance of $285 million–$287 million and operating income guidance of $29 million–$30 million embed one fewer business day and the more cautious GTV outlook.
Investors should track whether lead volumes remain stable after July, particularly among HVAC customers, where management acknowledged greater weakness.
Max enrollment progress toward more than 700 locations by fiscal year-end and the launch of modular on-ramp packages will determine whether adoption broadens without materially reducing average revenue per customer.
Pantheon product announcements could improve confidence in Max demand, virtual-agent monetization, and implementation efficiency.
The transition of CRO Ross Biestman to an advisory role adds a modest near-term go-to-market execution variable.
Longer term
Max could materially expand customer lifetime value: management said full-ramp subscription revenue roughly doubles prior spend, while Max customers reportedly generate stronger lead conversion, ticket size, and operating ratios.
The software factory may become a meaningful competitive advantage if it reliably compresses feature development from quarters to months while maintaining product quality.
The decision to defer expansion into new commercial and broader residential exterior trades sacrifices some near-term addressable-market expansion in favor of Max and AI execution.
The core moat will depend on whether ServiceTitan's proprietary data, distribution across more than 10,000 contractors, and integrated workflow platform produce better agentic outcomes than competing software and AI vendors.
Virtual-agent growth is encouraging, but its long-term value depends on sustaining adoption beyond early deployments and replacement wins while consumption pricing scales.
Red flags
GTV growth of 17% was approximately 200 basis points below recent quarters, with management unable to identify the underlying cause of weaker lead volumes or explain why customers could not offset them with higher average tickets.
The Max thesis is supported mainly by early cohorts and customer anecdotes; management did not provide cohort economics, churn, conversion rates, or a quantified adoption timeline.
Management expects to hit 700 Max locations without meaningful implementation-team expansion, relying on substantially lower implementation effort and time; this scalability assumption remains unproven.
The Max mix shift creates a $2 million–$3 million subscription-recognition headwind and approximately $2 million of lower professional-services revenue in the second half, while the full revenue and margin payback is deferred.
Management's claims that AI capabilities will strengthen demand generation and protect customers from changing consumer behavior were aspirational and not supported by quantified evidence in Q&A.
Forward outlook
operating margin
—
Q3 2027
official guidance
ebitda
—
Q3 2027
official guidance
revenue
1139–1144 $million
FY 2027
official guidance
ebitda
—
FY 2027
official guidance
operating margin
—
FY 2027
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K/A · 2026-09-08
- Filing Thin
Upcoming earnings
9:00 PM UTC+1
Period
Oct 2026
Est. EPS
$0.26
Est. revenue
286.5M
Earnings transcripts
Press & signals
- GlobeNewswire
ServiceTitan Announces Strategic Partnership with Ramp to Automate Financial Workflows For Contractors with AI-Powered Tools
- GlobeNewswire
ServiceTitan Powers Canopy Services Growth Across the Roofing Industry
- GlobeNewswire
ServiceTitan Announces Fiscal Second Quarter Financial Results
The rest of this company's wire — with summaries and source links — is part of Pro.
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