ServiceTitan, Inc. (TTAN) - 10-K Summary
Business Context and Reporting Period
Company: ServiceTitan, Inc.
Filing Type: Form 10-K (Annual Report)
Fiscal Year Ended: January 31, 2026 (Fiscal 2026)
Business Overview: ServiceTitan provides an end-to-end, cloud-based software platform ("operating system") for the trades industry (plumbing, HVAC, landscaping, etc.). The platform covers CRM, Field Service Management (FSM), ERP, Human Capital Management (HCM), and FinTech. The company recently completed its Initial Public Offering (IPO) in December 2024.
Key Financial Metrics (Fiscal 2026 vs. Fiscal 2025)
| Metric (in millions) | Fiscal 2026 | Fiscal 2025 | Change |
|---|---|---|---|
| Total Revenue | $961.0 | $771.9 | +24% |
| Platform Revenue | $925.4 | $739.5 | +25% |
| Gross Profit | $673.7 | $500.9 | +34% |
| Gross Margin (Total) | 70.1% | 64.9% | +520 bps |
| Net Loss (GAAP) | $(159.9) | $(239.1) | Improvement |
| Non-GAAP Net Income | $101.7 | $16.5 | Significant Improvement |
| Operating Cash Flow | $110.1 | $37.1 | +197% |
| Free Cash Flow (Non-GAAP) | $85.1 | $15.5 | +449% |
| Cash & Equivalents (End of Period) | $428.8 | $441.8 | -3% |
| Debt Outstanding | $0 | $105.1 | Repaid in Full |
Note: Non-GAAP adjustments primarily exclude stock-based compensation ($197.1M in FY2026), amortization of acquired intangibles, and lease impairments.
Material Changes and Drivers
- Revenue Growth: Driven by a 26% increase in subscription revenue and a 23% increase in usage-based revenue. Gross Transaction Volume (GTV) processed on the platform grew to $82.1 billion from $68.5 billion.
- Profitability: GAAP net loss narrowed significantly due to revenue growth outpacing expense increases. Non-GAAP metrics turned profitable, driven by operating leverage and improved gross margins (Platform gross margin improved to 77% from 73%).
- Debt Restructuring: The company voluntarily repaid its entire term loan (~$107 million) in January 2026. It simultaneously amended its credit agreement to increase the revolving facility to $250 million and extend the maturity to 2031.
- Acquisitions: Acquired Conduit Tech (HVAC design platform) in October 2025 for ~$19.8 million net of cash. Acquired Convex Labs in April 2024.
- Stock-Based Compensation (SBC): SBC expense increased to $197.1 million (from $163.7 million), largely due to the recognition of performance-based RSUs granted to Co-Founders in October 2024 following the IPO.
Outlook, Risks, and Management Commentary
- Strategy: Focus remains on increasing GTV on the platform by growing with existing customers (Net Dollar Retention >110%) and expanding into new trades and markets. The company is heavily investing in AI (Atlas) to drive automation and insights.
- Seasonality: Business is seasonal, with demand typically peaking in the second fiscal quarter (summer months) for trades like HVAC and landscaping.
- Risks:
- AI Regulation & Liability: Risks associated with the integration of Generative AI, including potential hallucinations, data privacy issues, and evolving regulatory frameworks (e.g., EU AI Act).
- Competition: Competition from established enterprise software vendors (Salesforce, SAP) and niche point-solution providers.
- Customer Concentration: Majority of customers are Small and Medium-sized Businesses (SMBs), which are more susceptible to economic downturns and higher churn risk than enterprise clients.
- Geopolitical: Operations in Armenia, Poland, and Macedonia expose the company to regional instability and sanctions risks.
- Capital Allocation: The company intends to retain earnings for growth and does not anticipate paying dividends. It has a $250 million undrawn credit facility available.
Investor Verification Checklist
- Non-GAAP Reconciliation: Verify the magnitude of stock-based compensation exclusions ($197M) and their impact on future cash burn vs. GAAP losses.
- Debt Covenants: Review the new "total net leverage" covenant in the amended credit agreement to ensure compliance flexibility.
- Retention Metrics: Confirm the sustainability of the >110% Net Dollar Retention rate as the customer base matures.
- AI Monetization: Assess the specific revenue contribution from new AI features (Atlas, Max) versus the cost of developing and maintaining them.
- Acquisition Integration: Monitor the integration progress and revenue contribution of the Conduit Tech acquisition.