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ServiceTitan, Inc. (TTAN)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 2025 revenue was $209.3M (+29% YoY) with platform revenue at $200.1M (+30% YoY); non-GAAP operating income was $6.9M (3.3% margin), exceeding Q4 guidance ($3–$4M) and revenue guidance ($199–$201M) .
  • GTV reached $17.0B (+26% YoY); management attributed ~150 bps of YoY lift to weather and highlighted stronger subscription growth and ~$1.5M of one-time catch-up items and earlier deal linearity as tailwinds .
  • FY 2025 finished ahead of prior guidance (revenue $771.9M vs $761.6–$763.6; non-GAAP op income $25.2M vs $21.4–$22.4). FY 2026 guide: revenue $895–$905M; non-GAAP op income $48–$53M. Q1 2026 guide: revenue $207–$209M; non-GAAP op income $12–$13M .
  • Catalysts: visible outperformance vs Q4 and FY guidance, improving gross margins, Pro product momentum (Contact Center Pro, Sales Pro), roofing/commercial expansion, and reiterated long-term non-GAAP operating margin target of 25% .

What Went Well and What Went Wrong

What Went Well

  • Subscription revenue accelerated to $156.7M (+31% YoY) on stronger new bookings, elevated customer expansion, earlier deal closings, and ~$1.5M catch-up items. “The stars fully aligned” in Q4 sales with Pantheon and IPO momentum supporting subscription strength .
  • Margins improved: platform non-GAAP gross margin ~76.7% (+30 bps YoY) and total non-GAAP gross margin ~70.2% (+80 bps YoY), with non-GAAP operating margin at 3.3% (+200 bps YoY). Free cash flow turned positive at $10.8M; revolver balance ($70M) was repaid; cash ended at $442M .
  • Strategic progress in Pro products, commercial, and roofing. “Our goal and growth strategy is to become the operating system for the trades” and “investments in roofing and commercial continue to deliver,” including the first-ever core software endorsement by North America’s largest roofing manufacturer .

What Went Wrong

  • GAAP losses widened: Q4 GAAP loss from operations ($99.9M) and GAAP net loss ($100.9M), reflecting heavy stock-based compensation including co-founder performance RSUs and lease impairments; GAAP G&A also increased (public company costs) .
  • Professional services gross margin remained negative on GAAP (–88% in Q4 2025), though non-GAAP improved; pro services revenue is a small contributor, but remains a margin drag .
  • Management cautioned Q4 tailwinds (weather, IPO momentum, earlier linearity) are unlikely to persist; prudence in FY26 guide emphasizes variability in GTV (macro/weather) and deceleration vs Q4 growth pace .

Financial Results

MetricQ4 2024Q3 2025Q4 2025
Total Revenue ($USD Millions)$161.8 $199.3 $209.3
Platform Revenue ($USD Millions)$154.0 $191.2 $200.1
Subscription Revenue ($USD Millions)$119.4 $145.3 $156.7
Usage Revenue ($USD Millions)$34.6 $45.9 $43.4
Professional Services and Other ($USD Millions)$7.8 $8.1 $9.2
GAAP Gross Margin %62% 65% 66%
Non-GAAP Gross Margin % (Total)69% 70% ~70%
Non-GAAP Operating Income ($USD Millions)$2.1 $1.6 $6.9
Non-GAAP Operating Margin %1% 1% 3.3%
GAAP Net Loss ($USD Millions)($51.4) ($46.5) ($100.9)
GAAP EPS (Basic/Diluted) ($)($1.88) ($1.74) ($2.80)

Segment breakdown and disaggregated revenue:

SegmentQ4 2024Q3 2025Q4 2025
Subscription ($USD Millions)$119.4 $145.3 $156.7
Usage ($USD Millions)$34.6 $45.9 $43.4
Platform Total ($USD Millions)$154.0 $191.2 $200.1
Professional Services & Other ($USD Millions)$7.8 $8.1 $9.2

KPIs and operational metrics:

KPIQ3 2025Q4 2025
Gross Transaction Volume (GTV, $USD Billions)$17.8 $17.0
Net Dollar Retention>110% >110%
Gross Dollar RetentionN/A>95% (FY 2025)
Total Active CustomersN/A~9,500
Cash & Cash Equivalents ($USD Millions)$135.1 $441.8
Free Cash Flow ($USD Millions, Non-GAAP)$10.6 $10.8

Notes:

  • Management indicated platform non-GAAP gross margin 76.7% and total non-GAAP gross margin ~70.2% in Q4 2025; press release non-GAAP total shown as 70% (rounding) .

Guidance Changes

Guidance vs actual for Q4 2025 and FY 2025:

MetricPeriodPrevious GuidanceCurrent/ActualChange
Total Revenue ($USD Millions)Q4 2025$199–$201 $209.3 Raised/Beat
Non-GAAP Operating Income ($USD Millions)Q4 2025$3–$4 $6.9 Raised/Beat
Total Revenue ($USD Millions)FY 2025$761.6–$763.6 $771.9 Raised/Beat
Non-GAAP Operating Income ($USD Millions)FY 2025$21.4–$22.4 $25.2 Raised/Beat

Guidance issued at Q4 2025 (and subsequent update for context):

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)Q1 2026N/A$207–$209 New
Non-GAAP Operating Income ($USD Millions)Q1 2026N/A$12–$13 New
Total Revenue ($USD Millions)FY 2026N/A$895–$905 New
Non-GAAP Operating Income ($USD Millions)FY 2026N/A$48–$53 New
Total Revenue ($USD Millions)FY 2026 (Updated)$895–$905 $910–$920 Raised (post-Q4)
Non-GAAP Operating Income ($USD Millions)FY 2026 (Updated)$48–$53 $54–$59 Raised (post-Q4)

Modeling considerations from management:

  • Q1 FY26: one fewer business day (~150 bps headwind to YoY GTV/usage growth); reclassifying some Customer Success costs from cost of revenue to sales & marketing will lift platform gross margin by ~200 bps with no impact to total operating income starting Q1 FY26 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2025)Previous Mentions (Q1 2026)Current Period (Q4 2025)Trend
AI/technology initiatives (Dispatch Pro, Ads Optimizer, Sales Pro)Strong early adoption of Sales Pro and Contact Center Pro noted; Pro is fastest-growing portion Non-GAAP EPS introduced; continued Pro momentum and AI-infused workflows Pro products contributing steadily; near-term AI impact primarily via three Pro products; agentic AI next evolution Building; stacking S-curves with monetization through Pro
Commercial expansionCommercial GTV doubled through mid-2024; segment focus and leadership trajectory Continued investment; commercial CRM on roadmap Deeper project workflows and dedicated commercial CRM; target specialty subcontractors (not GCs) Expanding; product maturation and CRM progress
Roofing partnershipsEarly traction; strategic partnerships announced (e.g., SRS) Continued progress; endorsements building First core software endorsement by GAF; integrations with distributors and measurement providers Strengthening; ecosystem partnerships accelerating
Macro/tariffs/weatherGTV variability; weather ~150 bps contribution; prudence in guidance Seasonality and prudence; cautious on GTV variability 75% nondiscretionary; monitoring macro/tariffs; no observed impact on jobs/average tickets; weather tailwind acknowledged Cautious; resilience but variability persists
R&D execution/mobile appOngoing mobile platform roll-out; strong customer results Continued enhancement of portal, agreements, equipment, Field mobile app Increased utilization of new mobile platform; transition timing TBD Progressing; adoption rising
Private equity consolidation>110% NDR; industry professionalization; consolidation early; interest in standardizing on ServiceTitan and Pro Continued PE-driven rollouts; stable consolidation trend expected Engagement at PE symposium; larger businesses standardizing tech stack; higher TitanScore correlates with faster growth Ongoing; supportive tailwind

Management Commentary

  • “Our goal and growth strategy is to become the operating system for the trades. Our core residential trades are performing well while our investments in roofing and commercial continue to deliver.” – Vahe Kuzoyan, President .
  • “Q4 total revenue was $209.3 million, up 29% YoY… Subscription revenue… up 31% YoY… Together, these amounted to roughly $1.5 million of incremental revenue in the quarter.” – Dave Sherry, CFO .
  • “We… are uniquely positioned to help customers turn insights into action and deliver growth and efficiency.” – Vahe Kuzoyan .
  • “We are on a mission to… build a generational business that becomes the operating system for the trades.” – Ara Mahdessian, CEO .

Q&A Highlights

  • New-business linearity and Q4 tailwinds: Sales momentum tied to Pantheon and IPO excitement; earlier deal closings drove unusual linearity—management cautioned against extrapolating as a new norm .
  • GTV drivers: Weather contributed ~150 bps; stronger performance among existing residential customers; management will watch several quarters before calling a trend .
  • Pro products and CSM role shift: CSMs will add expansion KPIs; natural segue from performance discussions into Pro solutions (e.g., Ads Optimizer, Marketing Pro, Sales Pro) to improve cost per lead, conversion, and ticket variability .
  • Commercial strategy: Focus on specialty trade subcontractors managing maintenance, service, replacements, and construction projects with end-to-end project workflows and commercial CRM; not targeting general contractors .
  • AI monetization: Near-term impact primarily through Dispatch Pro, Ads Optimizer, and Sales Pro; agentic AI is next evolution; monetization via Pro attach .
  • Guidance prudence and seasonality: FY26 guidance prudent due to GTV variability; Q1 headwind from one fewer business day; free cash flow seasonality explained (bonus payments), with FCF expected roughly in line with non-GAAP operating income over the year .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2025 revenue/EPS was unavailable due to data access limits; comparisons to consensus cannot be provided at this time. Values would normally be retrieved from S&P Global; unavailable in this session.
  • Company results versus company-issued Q4 guidance showed material beats on revenue ($209.3M vs $199–$201M) and non-GAAP operating income ($6.9M vs $3–$4M), implying upward pressure on near-term subscription trajectory; management remains conservative on GTV variability due to macro/weather .

Key Takeaways for Investors

  • Q4 outperformance vs guidance was driven by stronger subscription expansion, earlier deal linearity, and modest weather tailwinds; expect normalization, with prudence embedded in FY26 guide .
  • Margin trajectory is positive: gross margins improved and non-GAAP operating margin expanded to 3.3%; longer-term target remains 25% with focus on incremental margins .
  • Pro products are central to the expansion narrative and AI monetization; watch attach rates for Contact Center Pro, Sales Pro, Dispatch Pro, and Ads Optimizer as leading indicators of ARPU and NRR .
  • Roofing and commercial are key growth vectors; partnerships (GAF, SRS) and commercial CRM roadmap deepen ecosystem integration and should support multi-year share gains .
  • Cash and liquidity strengthened post-IPO (cash $442M; revolver repaid); operational discipline and FCF seasonality noted; management expects FCF roughly in line with non-GAAP operating income over FY26 .
  • Near-term modeling: account for Q1 FY26 one fewer business day headwind (~150 bps to GTV/usage), and a 200 bps uplift to platform gross margin from CSM cost reclassification with offset in sales & marketing, no impact on operating income .
  • Risk watch: GTV variability (macro/weather), pro services margin drag, and GAAP losses driven by stock-based comp and lease impairments; guidance prudence reflects these uncertainties .

Additional supporting documents:

  • Q4 2025 press release with full GAAP and non-GAAP reconciliations and operational metrics .
  • Q4 2025 earnings call transcript with detailed commentary on drivers, guidance, AI, Pro products, and commercial/roofing strategy .
  • Form 8-K furnishing the press release and consolidated financial statements for Q4/FY 2025 .
  • Prior quarter (Q3 2025) 8-K for trend comparisons and Q4/FY25 guidance baseline .
  • Subsequent Q1 2026 press release for post-Q4 trajectory and FY26 guidance update .