ServiceTitan Shares Climb 9.88% After Reporting 25% Revenue Growth and $29.2M Non-GAAP Operating Profit
Revenue Surges 25% Year-over-Year Amid Strong Platform Demand
ServiceTitan (NASDAQ: TTAN) stock surged 9.88% to $110.22 as of 11:37 AM following the company’s latest quarterly results. In the fiscal second quarter ended July 31, 2025, ServiceTitan posted total revenue of $242.12 million, up 25% from $193.0 million a year earlier. Platform revenue accounted for $232.73 million of that, representing a 26% jump from the prior year—a signal of continued customer momentum, especially among larger enterprise clients.
Gross transaction volume (GTV), a critical barometer of customer activity on the platform, rose 19% to $22.9 billion, underscoring how the company’s technology continues to capture more of the fast-growing trades market.
| Key Metrics | Q2 2026 | Q2 2025 | % Change |
|---|---|---|---|
| Revenue ($M) | 242.12 | 193.00 | +25% |
| Platform Revenue ($M) | 232.73 | 185.00 | +26% |
| Gross Transaction Volume ($B) | 22.9 | 19.2 | +19% |
| Non-GAAP Op. Profit ($M) | 29.2 | 13.5 | +116% |
| Non-GAAP Op. Margin | 12.1% | 7.0% | +5.1pp |
Profitability Improves: Non-GAAP Operating Margin Hits 12.1%
Perhaps most notable is ServiceTitan’s move toward greater operating efficiency. Non-GAAP income from operations rose sharply to $29.2 million, more than double the $13.5 million posted in the year-ago quarter. This drove a non-GAAP operating margin of 12.1%, up from 7.0%—a signal the company is balancing rapid top-line growth with disciplined cost management. GAAP loss from operations also remained relatively stable at $(34.8) million, compared to $(32.6) million a year earlier.
Cash generation improved as well. ServiceTitan delivered $40.3 million in GAAP net cash from operating activities, and free cash flow more than doubled to $34.3 million from $18.7 million in Q2 2025. Net dollar retention stayed above 110%, reflecting sustained growth from existing customers.
Third Quarter and Full-Year 2026 Outlook: Cautious Optimism
Looking ahead, ServiceTitan forecasts Q3 2026 revenue in the range of $237 million to $239 million and expects non-GAAP income from operations of $14 million to $15 million. For the full fiscal year, the company projects revenue between $935 million and $940 million, and non-GAAP operating profit of $74 million to $76 million.
| Forecast | Q3 2026 | FY 2026 |
|---|---|---|
| Revenue ($M) | 237 – 239 | 935 – 940 |
| Non-GAAP Op. Profit ($M) | 14 – 15 | 74 – 76 |
Takeaway: Strong Growth and Profit Momentum Amid Ongoing Investments
ServiceTitan’s results offer a compelling look at a company successfully scaling both revenue and profitability, despite heavy ongoing investment in platform innovation and sales expansion. With revenue growth still tracking in the mid-20s and operating margins rising, the company’s formula appears to be resonating, especially with larger commercial customers.
As shares respond positively, the main question for investors is whether ServiceTitan can sustain this dual track of growth and profit improvement as the trades market becomes more competitive. For now, with a stock up nearly 10% and another solid quarter on the books, the momentum looks firmly intact.
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