10-K: ServiceTitan Reports Strong Revenue Growth Amid Continued Losses

ServiceTitan, Inc. announced a 24% increase in total revenue to $961.0 million for fiscal 2026, while reporting a net loss of $159.9 million as it invests in platform expansion and AI.

Summary

• Total revenue increased by 24% to $961.0 million in fiscal 2026, up from $771.9 million in fiscal 2025.
• Platform revenue grew by 25% to $925.4 million, driven by a 26% increase in subscription revenue and a 23% increase in usage-based revenue.
• The net loss for fiscal 2026 was $159.9 million, an improvement from a net loss of $239.1 million in fiscal 2025.
• Gross profit increased to $673.7 million in fiscal 2026, resulting in a gross margin of 70%, up from 65% in fiscal 2025.
• Operating expenses rose across all categories: Sales and marketing increased by 15% to $290.9 million, Research and development by 15% to $302.6 million, and General and administrative by 16% to $249.5 million.
• Net cash provided by operating activities significantly increased to $110.1 million in fiscal 2026 from $37.1 million in fiscal 2025.
• Free cash flow was $85.1 million in fiscal 2026, compared to $15.5 million in fiscal 2025.
• The company processed $82.1 billion in Gross Transaction Volume (GTV) in fiscal 2026, an increase from $68.5 billion in fiscal 2025.
• As of January 31, 2026, the company had approximately 10,800 Active Customers, accounting for over 97% of its annualized billings.
• The gross dollar retention rate was over 95% and the net dollar retention rate was over 110% for fiscal years 2026, 2025, and 2024.
• The company amended its credit agreement, increasing its revolving credit facility to $250.0 million and fully repaying an approximately $107.0 million term loan, with no outstanding loans as of January 31, 2026.
• Acquired Conduit Tech in October 2025 for $19.8 million (net of cash acquired) and Convex Labs Inc. in April 2024 for $25.8 million.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a mixed but strategically focused report. Strong revenue growth and improved operating cash flow are positive, but continued net losses and significant investment in a competitive, evolving market warrant a cautious outlook.

Positives

• Total revenue increased by 24% year-over-year to $961.0 million in fiscal 2026, demonstrating strong top-line growth.
• Net loss improved to $159.9 million in fiscal 2026 from $239.1 million in fiscal 2025, indicating progress towards profitability.
• Gross profit margin expanded to 70% in fiscal 2026 from 65% in fiscal 2025, reflecting improved efficiency in platform operations.
• Net cash provided by operating activities significantly increased to $110.1 million in fiscal 2026, up from $37.1 million in fiscal 2025, showing stronger operational cash generation.
• Free cash flow improved substantially to $85.1 million in fiscal 2026 from $15.5 million in fiscal 2025.
• Gross Transaction Volume (GTV) grew to $82.1 billion in fiscal 2026, indicating increased adoption and usage of the platform by customers.
• High customer retention rates, with gross dollar retention over 95% and net dollar retention over 110% for the past three fiscal years, highlight strong customer loyalty and expansion within the existing base.
• Strategic acquisitions of Conduit Tech and Convex Labs Inc. enhance platform capabilities and market reach.
• Remediation of previously identified material weaknesses in internal control over financial reporting as of January 31, 2026, strengthens financial reporting integrity.
• The revolving credit facility was increased to $250.0 million, and the previous term loan of $107.0 million was fully repaid, providing enhanced liquidity and financial flexibility with no outstanding loans as of January 31, 2026.

Negatives

• The company continues to incur significant net losses, reporting $159.9 million in fiscal 2026, indicating ongoing unprofitability.
• Operating expenses increased across all categories, including sales and marketing, research and development, and general and administrative, reflecting high investment costs that outpace revenue growth in some areas.
• The multi-class stock structure concentrates voting power with the Co-Founders (approximately 61% as of January 31, 2026, potentially 72% with vested equity awards), limiting the influence of other stockholders.
• A co-founder, Vahe Kuzoyan, has pledged Class B common stock to secure borrowings, which could lead to a forced sale and potential stock price decline if a margin call occurs.
• The company relies on third-party payment processors and cloud infrastructure (Microsoft Azure), introducing dependency and potential service disruption risks.
• The business is subject to seasonality, with demand for customer services typically increasing in the second fiscal quarter, which can lead to quarterly fluctuations in financial results.
• The company does not intend to pay cash dividends for the foreseeable future, meaning investors must rely on stock price appreciation for returns.

Risks

• Rapid growth may not be indicative of future growth and could strain operational and financial resources, potentially harming brand and reputation.
• Inability to achieve or sustain profitability in the future, as the company has a history of net losses and expects continued high investment costs.
• Failure to effectively develop and commercialize new products, enhance the platform, expand supported trades, or adapt to evolving industry practices and technological advances, including AI.
• Operational seasonality and other fluctuations can cause significant variability and unpredictability in quarterly and annual results.
• Adverse factors affecting the trades industry, such as consolidation, increased prevalence of contractor marketplaces, supply chain issues, tariffs, and labor shortages, could negatively impact demand for the platform.
• Challenges and risks associated with engaging team members through various methods (direct hires, professional employer organizations, independent contractors), including compliance with local laws and potential litigation.
• Negative global and regional economic conditions, including inflation, rising interest rates, and reduced consumer spending, could adversely affect customer finances and demand for services.
• The market for software designed for the trades is evolving, and future success depends on market growth and the company's ability to adapt effectively.
• Intense competition from both established and new companies, including those leveraging AI, could negatively impact customer acquisition and retention.
• Risks associated with making, integrating, and maintaining acquisitions, including unforeseen operating difficulties and expenditures.
• Operational and reputational risks, potential liability, or harm to reputation and customers from the incorporation of traditional AI, machine learning, and generative AI solutions, including inaccurate or misleading content and data privacy concerns.
• Failure to offer high-quality customer support, particularly during the implementation process, could harm customer relationships and business.
• Dependence on expanding sales and marketing capabilities to increase the customer base and market acceptance, with significant resource investment and potential regulatory challenges for marketing activities.
• A majority of customers are smalland medium-sized businesses, which can be more difficult and costly to retain and are more susceptible to economic fluctuations.
• Reliance on software and services licensed from other third parties; defects or loss of these could increase costs and affect service quality.
• Dependence on third-party data centers (e.g., Microsoft Azure) for hosting and operating the platform, with risks of service disruptions or increased costs.
• Cybersecurity breaches or other incidents affecting the platform or sensitive information could harm reputation, business, financial condition, and results of operations.
• Inability to guarantee effective internal control over financial reporting or the occurrence of future material weaknesses could affect financial statement reliability.
• Inability to generate sufficient cash flow to satisfy future debt service obligations, potentially leading to reduced strategic investments or forced asset sales.
• The multi-class stock structure concentrates voting power with the Co-Founders, limiting the ability of other stockholders to influence corporate matters.
• The trading price of Class A common stock may be volatile due to various market and company-specific factors.
• Sales of a substantial number of Class A common stock by insiders or through registration rights could depress the trading price.
• Delaware law and provisions in the company's certificate of incorporation and bylaws could deter hostile takeovers, potentially depressing the trading price of Class A common stock.
• No intention to pay cash dividends for the foreseeable future, requiring investors to rely on stock price appreciation.
• An entity affiliated with Co-Founder Vahe Kuzoyan has pledged Class B common stock to secure borrowings, and a decline in stock price could lead to forced sales and further price depreciation.
• Exposure to extensive and evolving government regulation and oversight, including laws related to AI, data privacy, cybersecurity, and international operations, could increase compliance costs and limit business practices.
• Potential involvement in claims, lawsuits, government investigations, and other legal proceedings, which can be costly and divert management attention.
• Inaccuracies in estimates and assumptions relating to critical accounting policies could cause results of operations to fall below expectations.
• Reliance on assumptions and estimates to calculate key metrics, and real or perceived inaccuracies could harm reputation and business.
• Operating as a public company incurs substantial costs and requires significant management attention.
• Limitations on the ability to use net operating losses (NOLs) to offset future taxable income due to ownership changes or tax law changes.
• Risk of being required to collect or pay sales or other taxes in jurisdictions where not historically done, potentially leading to substantial liabilities.
• Changes in tax laws and regulations in the United States and other jurisdictions could adversely affect the business.
• Changes in accounting principles applicable to the company could adversely affect reported results of operations.

Future Outlook

The company anticipates continued growth by increasing Gross Transaction Volume (GTV) through customer expansion in existing and new trades/markets, and by retaining and expanding existing customer relationships via add-on products and innovation, particularly in AI-powered capabilities like Atlas. Management expects to continue significant investments in product development, sales, and marketing, which may lead to increased costs and ongoing net losses in the short term, as the focus remains on achieving long-term growth and profitability.

Management Comments

• "ServiceTitan is the operating system that powers the trades."
• "Our founders, Ara Mahdessian and Vahe Kuzoyan, are the sons of trades business owners and founded ServiceTitan to provide tradespeople, like their parents, with technology that is purpose-built to help trades businesses thrive."
• "We believe we have the largest proprietary data asset in our industry... and we are the system of record for our customers, solving end-to-end workflows."
• "We are fundamentally able to turn insights into action, a foundation that is accelerated by our growing AI capabilities and that we believe positions us to create the agentic operating system for the trades."
• "We believe that our customers success leads to our success."
• "We expect our revenue growth rate to continue to fluctuate over the short term, and even if our revenue continues to increase, our revenue growth rate may decline in future periods as the size of our business grows and we achieve higher market adoption rates."
• "We have incurred net losses in each year since our inception, and we may not be able to achieve or sustain profitability in the future."
• "We expect our costs will increase over time and our losses to continue as we expect to invest significant additional funds towards growing our business and continue to adjust to operating as a public company."
• "We believe our current corporate culture fosters innovation, teamwork, passion and focus on execution and has contributed to our success."
• "We do not intend to pay cash dividends for the foreseeable future on our capital stock."

Industry Context

StockSavvy.ai notes that ServiceTitan operates within the large and historically underserved 'trades' industry, which is currently undergoing significant professionalization and digitization, partly fueled by private equity investments. The company's strategy of offering an end-to-end, cloud-based platform with integrated AI capabilities positions it to capitalize on this trend, differentiating it from more fragmented or generic software solutions. The industry faces challenges such as consolidation, labor shortages, and supply chain disruptions, which ServiceTitan aims to address for its customers through its comprehensive platform.

Comparison to Industry Standards

• ServiceTitan competes with a diverse set of software vendors, including large horizontal solutions like Salesforce and SAP, as well as specialized field service management providers such as FieldEdge, Workwave, ServiceTrade, AccuLynx, BuildOps, HouseCall Pro, JobNimbus, and Jobber.
• The company asserts its competitive advantages lie in its cloud-based platform connectivity, ease of deployment, user experience, deep industry expertise, broad product suite, customer support, mobile capabilities, and innovation capacity, particularly in industry-specific AI solutions.
• StockSavvy.ai observes that ServiceTitan's high gross dollar retention rate (over 95%) and net dollar retention rate (over 110%) are strong indicators of customer satisfaction and successful upselling, which are favorable metrics compared to many SaaS industry benchmarks.
• Despite robust revenue growth, the company's continued net losses reflect a strategy of aggressive investment in market penetration and product development, a common characteristic of high-growth technology companies, but a contrast to more mature, profitable industry players.

Management Changes

Corporate Governance

Legal Proceedings

• No pending legal matters or claims that are believed to have a material adverse effect on the company's financial position, results of operations, or cash flows.
• The company has received one or more claims of violation of California's Invasion of Privacy Act, none of which have resulted in significant liability or expense to date.
• Future litigation may be necessary to defend intellectual property rights, determine the validity and scope of third-party proprietary rights, or for other matters, which could be costly and divert management attention.

Related Party Transactions

• Vahe Kuzoyan, Co-Founder and President, and his spouse, individually and as trustees of the K-A Family Trust, pledged a portion of Class B common stock to secure a loan, with the agreement amended in July 2025. The loan agreement restricts pledging or selling other equity interests held by them.
• Co-Founders Ara Mahdessian and Vahe Kuzoyan were granted 3,241,544 performance-based RSUs each in October 2024, which vest into Class B common stock upon satisfaction of service and stock price hurdles.
• Ara Mahdessian (CEO), Vahe Kuzoyan (President), Tim Cabral (Director), and Dave Sherry (CFO) adopted Rule 10b5-1(c) trading arrangements in January 2026 for selling Class A common stock.

Stakeholder Impact

• **Shareholders**: Potential for long-term value creation through strong revenue growth and strategic investments in AI and market expansion. However, continued net losses, concentrated voting power due to the multi-class stock structure, stock price volatility, and potential dilution from future capital raises pose risks. The pledge of a co-founder's shares could also impact stock price. No cash dividends are expected in the foreseeable future.
• **Employees**: Benefit from equity incentive plans (2024 Incentive Award Plan, 2024 ESPP, Conduit Plan) and a culture that fosters innovation. However, they are subject to potential workforce reductions and face competition for skilled personnel in the industry.
• **Customers**: Benefit from an expanding, AI-powered platform designed to improve business outcomes, operational efficiency, and end-customer service. Risks include potential platform defects, cybersecurity incidents, and possible changes in pricing models.
• **Creditors**: The company's debt obligations are secured by collateral under loan documents. Creditors are exposed to risks related to the company's ability to generate sufficient cash flow to service debt and comply with financial covenants, although the recent debt restructuring and increased revolving credit capacity are positive for liquidity.

Next Steps

• Continue investing in product development, including new core and AI functionality, for existing and adjacent markets.
• Expand sales and marketing efforts to attract new customers and increase revenue from existing ones.
• Further develop and implement AI solutions, including the Atlas agentic AI layer, to drive customer value and operational efficiencies.
• Potentially pursue acquisitions or strategic investments to advance the product roadmap more efficiently.
• Monitor and adapt to evolving regulatory frameworks for AI, data privacy, and cybersecurity.
• Manage growth effectively, including integrating new employees, technologies, and geographies, while preserving corporate culture.
• Address potential challenges from industry consolidation, labor shortages, and supply chain issues.

Key Dates

Recommendation

ServiceTitan demonstrates strong revenue growth and improved cash flow from operations, indicating solid operational momentum and market penetration in the trades industry. However, the company continues to incur significant net losses due to aggressive investments in R&D and sales & marketing, which is typical for a high-growth tech company but introduces uncertainty regarding future profitability. The multi-class stock structure and co-founder share pledges are notable governance and financial considerations. Given the mixed financial performance (growth vs. losses) and the long-term investment strategy, a 'hold' recommendation is appropriate for investors to monitor the company's path to sustained profitability and the effectiveness of its AI and market expansion initiatives.

Keywords

ServiceTitan, Software, Trades Industry, Field Service Management, CRM, FSM, ERP, HCM, FinTech, AI, Machine Learning, Generative AI, Cloud-based Platform, Subscription Revenue, Usage-based Revenue, Gross Transaction Volume, SEC Filing, 10-K, Corporate Governance, Multi-Class Stock, Risk Factors, Financial Performance, Glendale California, Nasdaq, TTAN, Conduit Tech, Convex Labs