8-K: ServiceTitan Soars: Q2 Revenue Up 25%, Non-GAAP Profit Doubles

ServiceTitan, Inc. announced strong fiscal second quarter 2026 financial results, with significant revenue growth and a doubling of non-GAAP operating income.

Summary

• ServiceTitan reported total revenue of $242.1 million for fiscal Q2 2026, a 25% increase year-over-year.
• Platform revenue grew 26% year-over-year to $232.7 million.
• Non-GAAP income from operations more than doubled to $29.2 million, up from $13.5 million in the prior year quarter.
• Non-GAAP operating margin expanded to 12.1% in Q2 2026, compared to 7.0% in Q2 2025.
• GAAP net cash provided by operating activities increased to $40.3 million from $25.3 million year-over-year.
• Non-GAAP free cash flow nearly doubled to $34.3 million, up from $18.7 million in Q2 2025.
• Gross transaction volume (GTV) reached $22.9 billion, representing 19% year-over-year growth.
• Net dollar retention remained strong at over 110%.

Sentiment

Score: 8

Explanation: ServiceTitan delivered robust Q2 2026 results with strong revenue growth and significant improvements in non-GAAP profitability and free cash flow, indicating effective operational leverage. The positive outlook for the remainder of fiscal year 2026 further reinforces a strong performance trajectory, despite continued GAAP losses.

Positives

• Total revenue increased 25% year-over-year to $242.1 million in Q2 2026, demonstrating robust top-line growth.
• Platform revenue, the core business, grew 26% year-over-year to $232.7 million, indicating strong product adoption.
• Non-GAAP income from operations more than doubled to $29.2 million in Q2 2026, showcasing improved operational efficiency and profitability.
• Non-GAAP operating margin significantly expanded to 12.1% from 7.0% in the prior year, reflecting better cost management relative to revenue.
• GAAP net cash provided by operating activities increased to $40.3 million, indicating healthy cash generation from core operations.
• Non-GAAP free cash flow nearly doubled to $34.3 million, providing ample liquidity for future investments and financial flexibility.
• Net dollar retention remained strong at over 110%, highlighting high customer satisfaction and expansion within the existing customer base.
• Management noted progress in the large enterprise Commercial market, where multi-year investments are beginning to yield results, suggesting future growth avenues.

Negatives

• GAAP loss from operations increased to $(34.8) million in Q2 2026 from $(32.6) million in Q2 2025, indicating continued unprofitability under GAAP accounting.
• GAAP net loss was $(32.225) million in Q2 2026, although an improvement from $(35.652) million in Q2 2025, the company is still reporting a net loss.
• Year-over-year GTV growth decelerated to 19% in Q2 2026 from 23% in Q2 2025, suggesting a slight slowdown in transaction volume expansion.

Risks

• Actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, as more fully described under the caption 'Risk Factors' in the Quarterly Report on Form 10-Q for fiscal first quarter 2025.

Future Outlook

ServiceTitan expects total revenue for fiscal third quarter 2026 to be between $237 million and $239 million, with non-GAAP income from operations projected between $14 million and $15 million. For the full fiscal year 2026, the company anticipates total revenue in the range of $935 million to $940 million and non-GAAP income from operations between $74 million and $76 million.

Management Comments

• Ara Mahdessian, Co-Founder and CEO: "I am grateful for the way our team empowered our customers to perform during the seasonally strongest quarter for the trades. The quality and breadth of execution underscore our opportunity to transform the lives of every hardworking contractor in the trades."
• Vahe Kuzoyan, Co-Founder and President: "This is an exciting time in the trades. We're making progress on each of our goals this year. Most notably, we are experiencing a change in the large enterprise Commercial market where our multi-year investments are beginning to yield results."

Industry Context

ServiceTitan operates as a leading software platform powering trades businesses, bringing an integrated SaaS solution to an industry historically underserved by technology. The company's focus on empowering contractors with tools to run and grow their businesses positions it at the forefront of digitizing essential service sectors.

Comparison to Industry Standards

• No specific comparable companies, projects, or industry benchmarks are provided within the filing to assess performance against global standards.

Stakeholder Impact

• Shareholders are likely to view the strong revenue growth, significant increase in non-GAAP profitability, and positive outlook favorably, potentially leading to increased investor confidence.
• Customers (contractors) are benefiting from the platform, as indicated by management's comments on empowering customers, suggesting continued value and potentially higher retention.
• Employees are recognized for empowering customers, which could foster a positive internal culture, though no direct impact on compensation or roles is mentioned.

Next Steps

• A conference call and webcast to discuss the financial results will be held on September 4, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
• A webcast replay will be available on ServiceTitan's investor relations website for 12 months following the event.
• Additional information will be provided in the Quarterly Report on Form 10-Q for fiscal second quarter 2026 ended July 31, 2025.

Key Dates

Recommendation

The company demonstrated strong operational execution with significant year-over-year growth in revenue, non-GAAP operating income, and free cash flow. The expansion of non-GAAP operating margin and consistent net dollar retention above 110% highlight efficient business scaling and customer loyalty. The positive guidance for the full fiscal year 2026, coupled with strategic progress in the large enterprise Commercial market, indicates a robust growth trajectory and increasing profitability, making it an attractive investment.

Keywords

ServiceTitan, Software platform, Trades businesses, SaaS, Financial results, Q2 2026, Revenue growth, Non-GAAP operating income, Free cash flow, Gross transaction volume, TTAN