ServiceTitan reported second‑quarter fiscal 2027 results on September 8, 2026. Total revenue climbed to $293 million (approximately $292.8 million), a 21% increase from the prior year and 2.4% above the consensus estimate of $285.9 million. Platform revenue grew 22% YoY, with subscription revenue of $212 million and usage‑based revenue of $72 million.
Gross transaction volume (GTV) expanded to $26.8 billion, up 17% year‑over‑year but decelerating by roughly 200 basis points. Non‑GAAP operating margin rose to 15.2%, reversing a negative 1% margin in Q2 FY24, and the company raised its long‑term operating‑margin target to about 25% from 10% for fiscal 2026. Platform gross margin improved to 81.1% (up 40 basis points), while total gross margin stood at 74.6%. Free cash flow increased 47% to $50.5 million, and net dollar retention stayed above 110%.
Adjusted earnings per share recorded a loss of $0.26, marginally deeper than the $0.25 loss expected by analysts. The firm highlighted two near‑term headwinds: a $2‑$3 million subscription‑revenue timing issue linked to its Max product, and roughly $2 million lower professional‑services revenue as resources shifted toward Max and the Software Factory initiative.
Guidance for the next quarter projects revenue of $285‑$287 million, indicating a sequential decline, and operating income of $29‑$30 million. Full‑year FY27 outlook targets revenue of $1.139‑$1.144 billion and operating income of $152‑$154 million.
ServiceTitan serves a broad trades market, addressing an estimated $650 billion in industry spend. Its customers currently generate about $90 billion of GTV, with a total addressable market of over $30 billion and a serviceable addressable market of roughly $13 billion. Over the last twelve months, customers contributed $1.06 billion in revenue across approximately 10,800 active accounts, of which more than 2,000 generate over $100,000 in annual billings, accounting for over 60% of total billings. The Max product expanded to more than 700 locations by fiscal‑year end, up from just over 200 at the end of Q2.
The stock reacted negatively, closing the regular session at $81.58, down 7.21% from $87.92, and slipping another 19.96% in after‑hours trading to $65.30, a cumulative drop of about 25.7% from the prior close.
