ServiceTitan Raises Fiscal 2027 Profit Outlook
The trades software company lifted full-year non-GAAP operating income to $152 million–$154 million after $50.5 million of second-quarter free cash flow.
ServiceTitan (TTAN) raised its full-year profit outlook after a second quarter in which non-GAAP free cash flow turned positive and operating cash generation reversed a first-quarter outflow, even as year-over-year revenue growth cooled to 21%.
The software platform that powers the trades reported total revenue of $292.8 million for the fiscal second quarter ended July 31, 2026. That growth rate was down from 25% in the fiscal first quarter. Platform revenue was $284.5 million. Gross transaction volume, a proxy for dollars invoiced by customers through the platform, was $26.8 billion, up 17% from a year earlier.
Co-founder and CEO Ara Mahdessian said the company’s momentum delivering what it calls the Agentic Operating System to the trades produced the 21% revenue increase and more than $50 million of non-GAAP free cash flow.
Non-GAAP income from operations was $44.4 million, or a 15.2% non-GAAP operating margin, matching the 15.2% margin recorded in the fiscal first quarter. GAAP loss from operations was $27.6 million, or a -9.4% operating margin. Net dollar retention remained greater than 110%.
Cash generation was the sharper turn. GAAP net cash provided by operating activities was $58.0 million, reversing a $1.6 million use of cash in the fiscal first quarter. Non-GAAP free cash flow was $50.5 million, reversing a $9.6 million outflow. Cash, cash equivalents, and restricted cash ended the quarter at $479.95 million.
Platform revenue of $284.5 million comprised $212.4 million of subscription and $72.1 million of usage. Professional services and other revenue was $8.3 million. GAAP gross profit was $209.1 million. Research and development expense was $100.6 million, sales and marketing was $77.0 million, and general and administrative expense was $59.0 million. GAAP net loss was $24.9 million, or $0.26 a share. Non-GAAP net income was $39.7 million, or $0.40 a share diluted.
Co-founder and President Vahe Kuzoyan said the company exceeded its goal of doubling Max locations during the second quarter. He said that, as a result of execution with existing customers and progress with select new customers, the company now expects to end fiscal 2027 with over 700 enrolled Max locations.
For the fiscal third quarter ending October 31, 2026, ServiceTitan currently expects total revenue of $285 million to $287 million and non-GAAP income from operations of $29 million to $30 million. Those ranges sit above the $284 million to $286 million revenue band and the $38 million to $39 million non-GAAP operating-income band issued after the first quarter.
For the full fiscal year ending January 31, 2027, the company currently expects total revenue of $1,139 million to $1,144 million and non-GAAP income from operations of $152 million to $154 million, versus the prior full-year ranges of $1,130 million to $1,140 million and $142 million to $147 million. The company said it is not able to provide an outlook for GAAP loss from operations or a reconciliation of expected non-GAAP income from operations to GAAP loss from operations for those periods.
Mahdessian said delivering the Agentic Operating System and leveraging AI to enhance organizational velocity are opportunities to execute against. Kuzoyan said organizational velocity is improving and that investments in AI are delivering.
The company described itself as AI for the trades, a purpose-built agentic operating system designed to automate workflows that run a contracting business, from enterprise commercial construction to residential field service.
Net dollar retention above 110% matched the fiscal first quarter. The company did not restate that retention band lower.
The second-quarter cash reversal and the lifted full-year non-GAAP operating-income range are the forward indicators the company put on the table alongside the Max enrollment target of more than 700 locations by year-end.