0001638826-26-000028
SEC filingServiceTitan's FY2026 revenue grew 24% YoY driven by platform subscription and usage-based revenue, with gross margin expansion and positive free cash flow.
ServiceTitan describes itself as 'the operating system that powers the trades,' modernizing a large and technologically underserved industry comprising field service activities such as plumbing, roofing, landscaping, and HVAC. The company was founded by Ara Mahdessian and Vahe Kuzoyan, sons of trades business owners, to provide a purpose-built technology platform. ServiceTitan's cloud-based software connects, manages, and automates business workflows across what it identifies as five core centers of gravity: CRM (customer relationship management), FSM (field service management), ERP (enterprise resource planning), HCM (human capital management), and FinTech (including payments and consumer financing). The company emphasizes its focus on customer success, believing that its broad platform, close customer proximity, and deep industry connection enable it to improve business outcomes.
ServiceTitan's platform is offered through three main offerings: Core, FinTech, and Pro. Core provides base-level functionality including call tracking, scheduling, dispatching, marketing automation, estimating, job costing, inventory, and payroll integration. FinTech products include payment processing and third-party financing solutions. Pro products offer value-additive capabilities such as AI-driven features. In fiscal 2026, the company introduced Atlas, an agentic AI layer that represents the next evolution of its Titan Intelligence AI engine. Other notable products include TitanAdvisor (data-driven feature recommendations), FieldPro (AI-powered field technician coaching), Convex (sales and marketing platform for commercial buildings), Conduit Tech (HVAC design and sales platform using LiDAR), Pricebook Pro, Dispatch Pro, Scheduling Pro, and Contact Center Pro.
ServiceTitan acquires customers through digital marketing, outbound direct marketing, word-of-mouth referrals, and partnerships with industry associations, OEMs, and distributors. The primary sales channel is a direct sales team that conducts most sales virtually, with a dedicated team for enterprise prospects. Specialized FinTech and Pro product sales teams introduce additional products using insights from TitanAdvisor. The company serves customers ranging from family-owned businesses to large enterprises with national footprints. As of January 31, 2026, ServiceTitan had approximately 10,800 Active Customers (defined as customers with over $10,000 in annualized billings), representing over 97% of annualized billings. No single customer concentration is disclosed. The company had a gross dollar retention rate of over 95% for each of fiscal years 2026, 2025, and 2024.
The filing states that the market for technology solutions catering to the trades is in early stages of development, with many businesses still relying on rudimentary workflows. ServiceTitan competes directly or indirectly with point-specific tools, horizontal solutions, legacy on-premise field service management applications, and narrow bundled solutions. Named competitors include Salesforce, SAP, FieldEdge, Workwave, ServiceTrade, AccuLynx, BuildOps, HouseCall Pro, JobNimbus, and Jobber. The company believes it competes favorably on cloud-based platform connectivity, ease of deployment, user experience, industry expertise, product breadth, customer support, proven success record, mobile capabilities, and innovation in AI.
The company's growth strategy is built on three pillars: (1) increasing GTV (gross transaction value) on the platform by growing with existing customers, serving additional customers in existing and new trades and markets; (2) retaining and expanding existing customer relationships by driving adoption of add-on or bundled products and building new add-on products; and (3) leveraging proprietary data assets and AI to drive customer ROI, exemplified by Atlas. The company also focuses on entering new trades using a proven playbook and expanding geographically outside the United States and Canada over time.
As of January 31, 2026, ServiceTitan had 3,414 Titans (employees) across the United States, Canada, Armenia, and other international locations. The majority are based in the United States, where the executive team and most engineering, product, sales, marketing, customer success, and administrative personnel are located. Employees in Armenia and other international locations primarily consist of engineers and customer success personnel. None of the employees are represented by a labor union, and the company considers its employee relations to be strong.
ServiceTitan's fiscal 2026 results reflect strong execution and scaling. Total revenue grew 24% year-over-year to $960.9 million, driven by platform revenue which increased 25% to $925.4 million. Within platform, subscription revenue rose 26% and usage-based revenue grew 23%, supported by a 20% increase in gross transaction volume (GTV) to $82.1 billion. Gross profit expanded 35% to $673.7 million, with total gross margin improving 520 bps to 70.1%. Platform gross margin increased 410 bps to 77%, benefiting from a shift of customer success costs to sales and marketing. Operating loss narrowed to $169.2 million from $230.0 million, while non-GAAP operating income turned positive at $94.1 million (9.8% margin vs. 3.3% prior year). Net loss improved to $159.9 million from $239.1 million, and non-GAAP net income reached $101.7 million. Free cash flow surged to $85.1 million from $15.5 million, reflecting operating cash flow of $110.1 million.
Platform revenue constitutes 96% of total revenue and is the primary growth engine. Subscription fees (core and pro products) increased 26% due to net dollar retention above 110% for the third consecutive year. Usage-based revenue, largely payment processing, rose 23% as GTV grew and earn rates improved. Professional services and other revenue grew 10% to $35.5 million, though gross margin remained deeply negative at (107)% (slightly better than (110)% prior year). Cost of revenue increased only 6%, with platform costs rising just 5% despite 25% revenue growth, driving margin expansion.
Management expects continued investment in sales and marketing, R&D, and product innovation to drive GTV growth across existing and new trade verticals. Seasonality is noted with strongest sequential growth in Q2 (fiscal quarter ending July 31) due to summer demand, and higher sales/marketing costs in Q3 from annual user conferences. No specific quantitative guidance was provided. Key strategic priorities include increasing customer retention, expanding add-on product adoption, and entering new trades. The company's liquidity position is strong with $428.8 million cash and a $250 million undrawn revolver. Capital allocation focuses on organic growth and potential acquisitions.
As of January 31, 2026, the Company had no outstanding debt after voluntarily repaying the entire $107.0 million term loan under the Amended Credit Agreement. A new $250.0 million revolving credit facility remains undrawn. The Company’s cash and cash equivalents include $411.6 million in money market funds, though the total cash balance is not explicitly disclosed in the Notes. Restricted cash of $0.6 million is pledged under letters of credit. Goodwill increased to $860.3 million, primarily from the Conduit Tech acquisition, with no impairment recorded.
Long-term noncancellable purchase commitments total $97.8 million, predominantly for cloud hosting arrangements, with estimated payments of $61.6 million in fiscal 2027, $32.4 million in fiscal 2028, and $3.8 million in fiscal 2029. Operating lease liabilities amount to $51.4 million (present value), with remaining terms ranging from one to six years. The current portion of lease liabilities is $14.1 million. Additionally, the Company has $2.5 million in asset retirement obligations.
No share buybacks or dividends were authorized or disclosed. The Company’s capital allocation focus is on debt repayment and growth investments. The full $107.0 million term loan repayment in January 2026 eliminated all interest-bearing debt. The Company also capitalized $24.7 million in internal-use software development costs and $4.7 million in property and equipment during fiscal 2026, though these figures are from the cash flow statement and not explicitly repeated in the Notes. The acquisition of Conduit Tech for $19.8 million net of cash was financed with cash on hand.
The Company operates as a single reportable segment. Disaggregated revenue in the Notes shows platform revenue of $925.4 million (subscription $712.3 million, usage $213.1 million) and professional services of $35.5 million. Revenue from customers outside the United States is less than 5% of total revenue. Long-lived assets are concentrated in the U.S. No geographic segment data is provided.
ServiceTitan faces significant regulatory uncertainty around AI, given the rapid evolution of laws like the EU AI Act and various U.S. state laws (California, Colorado, Utah). The filing also highlights geopolitical risk from its workforce in Armenia, near the Russia-Ukraine conflict. Any disruption to these operations could impact development and growth.
Heavy reliance on Microsoft Azure for cloud hosting poses a single point of failure; service interruptions or unfavorable contract renewals could harm the business. The company also depends on third-party payment processors and open-source software, each with associated risks.
The filing notes that competitors are increasingly using generative AI to replicate platform functionality, lowering barriers to entry. ServiceTitan's own AI integration (e.g., Atlas) may produce inaccurate outputs or face IP challenges, potentially harming its competitive position.
Despite 24% revenue growth to $961M, the company continues to incur net losses ($159.9M in fiscal 2026) and has an accumulated deficit of $1.3B. The rapid growth in headcount (from 840 to 3,414) strains management and operational controls. Seasonality in trades (e.g., HVAC demand in summer) causes quarterly volatility.
The customer base is predominantly SMBs, which are more vulnerable to economic downturns. Any failure to provide high-quality support or to manage the complex sales cycle for larger customers could hinder growth.
Third-party IP infringement claims could be costly, and the use of open-source code may require disclosure of proprietary source code. Cybersecurity risks are elevated due to remote work and AI-powered attacks; while past incidents were not material, future breaches could be significant.
The provided excerpt does not contain the actual cash flow statement figures. Only the auditor's report and index were included.