LOS ANGELES, Sept. 04, 2025 (GLOBE NEWSWIRE) -- ServiceTitan $(TTAN)$, the software platform that powers the trades, today announced financial results for the fiscal second quarter ended July 31, 2025.
"I am grateful for the way our team empowered our customers to perform during the seasonally strongest quarter for the trades," said Ara Mahdessian, Co-Founder and CEO. "The quality and breadth of execution underscore our opportunity to transform the lives of every hardworking contractor in the trades."
"This is an exciting time in the trades," said Vahe Kuzoyan, Co-Founder and President, "We're making progress on each of our goals this year. Most notably, we are experiencing a change in the large enterprise Commercial market where our multi-year investments are beginning to yield results."
Fiscal Second Quarter 2026 Financial and Operational Highlights:
Fiscal Second Quarter Fiscal Second Quarter
2026 2025
------------------------ ---------------------
(in millions, except percentages and GTV)
Gross transaction
volume ("GTV")
(in billions) $ 22.9 $ 19.2
YOY GTV growth 19% 23%
Total revenue $ 242.1 $ 193.0
YOY revenue
growth 25% 24%
Platform revenue $ 232.7 $ 185.0
YOY platform
revenue growth 26% 25%
GAAP loss from
operations $ (34.8) $ (32.6)
Non-GAAP income
from
operations(1) $ 29.2 $ 13.5
Non-GAAP
operating
margin(1) 12.1% 7.0%
GAAP net cash
provided by
operating
activities $ 40.3 $ 25.3
Non-GAAP free
cash flow(1) $ 34.3 $ 18.7
Net dollar > 110% > 110%
retention
_________________________
(1) This press release uses non-GAAP financial measures that adjust GAAP financial measures for the impact of various items. See the section titled "Non-GAAP Financial Measures" and the tables entitled "GAAP to Non-GAAP Reconciliation" below for additional information.
Fiscal Third Quarter and Fiscal Year 2026 Financial Outlook:
For fiscal third quarter 2026 and for the full fiscal year 2026, the Company currently expects:
Fiscal Third Quarter
2026 Full Fiscal Year 2026
(in millions)
Total revenue $237 - $239 $935 - $940
Non-GAAP income from
operations(2) $14 - $15 $74 - $76
_________________________
(2) ServiceTitan is not able, at this time, to provide an outlook for GAAP loss from operations or a reconciliation of expected non-GAAP income from operations to GAAP income loss from operations for fiscal third quarter 2026 or for the full fiscal year 2026 because of the difficulty of estimating certain items excluded from non-GAAP income from operations that cannot be reasonably calculated or predicted without unreasonable efforts. For example, charges related to stock-based compensation expense require additional inputs, such as the number and value of awards granted, that are not currently ascertainable.
Conference Call Information:
The financial results and business highlights will be discussed on a conference call and webcast scheduled at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Thursday, September 4, 2025. Online registration for this event conference call can be found here. The live webcast of the conference call can be accessed from ServiceTitan's investor relations website at http://investors.servicetitan.com.
Following completion of the events, a webcast replay will also be available at http://investors.servicetitan.com for 12 months.
About ServiceTitan
ServiceTitan is the software platform that powers trades businesses. The company's cloud-based, end-to-end solution gives contractors the tools they need to run and grow their business, manage their back office, and provide a stellar customer experience. By bringing an integrated SaaS platform to an industry historically underserved by technology, ServiceTitan is equipping tradespeople with the technology they need to keep the world running.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue, " "could," "estimate," "expect," "intend," "may," "plan," "potential" "predict," "project," "should," "target," or "will," or the negative of these words or other similar terms or expressions that concern ServiceTitan's expectations, strategy, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding ServiceTitan's financial outlook for total revenue and non-GAAP income from operations for fiscal third quarter 2026 ending October 31, 2025 and the full fiscal year ending January 31, 2026. ServiceTitan's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for fiscal first quarter 2025 ended April 30, 2025 as filed with the SEC on June 12, 2025, which should be read in conjunction with this press release and the financial results included herein. Additional information will be set forth in our Quarterly Report on Form 10-Q for fiscal second quarter 2026 ended July 31, 2025. The forward-looking statements in this release are based on information available to ServiceTitan as of the date hereof, and ServiceTitan undertakes no obligation to update any forward-looking statements, except as required by law.
Press Contact
Max Wertheimer
ServiceTitan, Inc.
press@servicetitan.com
Investor Contact
Jason Rechel
ServiceTitan, Inc.
investors@servicetitan.com
(c) 2025 ServiceTitan. All rights reserved. ServiceTitan, the ServiceTitan logo, and all ServiceTitan product and service names mentioned herein are registered trademarks or unregistered trademarks of ServiceTitan, Inc. in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).
ServiceTitan, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)
Three Months Ended July
31, Six Months Ended July 31,
------------------------- -------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
Revenue:
Platform $ 232,726 $ 184,997 $ 440,708 $ 348,222
Professional
services and
other 9,397 7,997 17,107 15,100
---------- ---------- ---------- ----------
Total revenue 242,123 192,994 457,815 363,322
---------- ---------- ---------- ----------
Cost of revenue:
Platform 51,991 49,236 102,028 96,993
Professional
services and
other 18,783 16,932 36,042 33,523
Total cost of
revenue 70,774 66,168 138,070 130,516
---------- ---------- ---------- ----------
Gross profit 171,349 126,826 319,745 232,806
---------- ---------- ---------- ----------
Operating
expenses:
Sales and
marketing 69,544 58,218 138,767 115,819
Research and
development 73,065 62,449 142,205 121,062
General and
administrative 63,512 38,769 123,081 81,963
---------- ---------- ---------- ----------
Total operating
expenses 206,121 159,436 404,053 318,844
---------- ---------- ---------- ----------
Loss from
operations (34,772) (32,610) (84,308) (86,038)
---------- ---------- ---------- ----------
Other income
(expense), net
Interest expense (2,057) (4,222) (4,092) (8,350)
Interest income 4,783 1,654 9,723 3,350
Other income
(expense), net 185 (17) 686 210
---------- ---------- ---------- ----------
Total other income
(expense), net 2,911 (2,585) 6,317 (4,790)
---------- ---------- ---------- ----------
Loss before income
taxes (31,861) (35,195) (77,991) (90,828)
Provision for
income taxes 364 457 598 863
---------- ---------- ---------- ----------
Net loss (32,225) (35,652) (78,589) (91,691)
Accretion of
non-convertible
preferred stock -- (13,969) -- (26,956)
---------- ---------- ---------- ----------
Net loss
attributable to
common
stockholders $ (32,225) $ (49,621) $ (78,589) $ (118,647)
========== ========== ========== ==========
Net loss per share,
basic and diluted $ (0.35) $ (1.43) $ (0.86) $ (3.44)
========== ========== ========== ==========
Weighted-average
shares used in
computing net loss
per share, basic
and diluted 91,687,907 34,789,424 91,041,726 34,485,622
========== ========== ========== ==========
Disaggregated
Revenue
Three Months Ended July
31, Six Months Ended July 31,
------------------------- -------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
Subscription $ 174,753 $ 137,697 $ 337,470 $ 263,731
Usage 57,973 47,300 103,238 84,491
---------- ---------- ---------- ----------
Platform revenue 232,726 184,997 440,708 348,222
Professional
services and
other 9,397 7,997 17,107 15,100
---------- ---------- ---------- ----------
Total revenue $ 242,123 $ 192,994 $ 457,815 $ 363,322
========== ========== ========== ==========
ServiceTitan, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
As of
-------------------------
July 31, January 31,
2025 2025
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 471,485 $ 441,802
Restricted cash 210 711
Accounts receivable, net of
allowance of $8,868 and $4,698 as
of July 31, 2025 and January 31,
2025, respectively 51,894 44,469
Deferred contract costs, current 12,966 11,554
Contract assets 49,452 45,926
Prepaid expenses 31,980 24,791
Other current assets 4,976 3,513
---------- ----------
Total current assets 622,963 572,766
Restricted cash, noncurrent 417 333
Deferred contract costs, noncurrent 12,419 10,608
Property and equipment, net 45,644 56,667
Operating lease right-of-use assets 18,860 24,025
Internal-use software, net 37,982 35,775
Intangible assets, net 192,188 214,952
Goodwill 845,836 845,836
Other assets 7,572 7,686
---------- ----------
Total assets $ 1,783,881 $ 1,768,648
========== ==========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and other accrued
expenses $ 43,227 $ 40,182
Accrued personnel related expenses 57,379 80,160
Deferred revenue, current 17,277 16,803
Operating lease liabilities,
current 12,848 12,996
Short-term debt 1,073 1,073
Other current liabilities 6,923 1,902
---------- ----------
Total current liabilities 138,727 153,116
Operating lease liabilities,
noncurrent 40,823 47,327
Long-term debt, net 103,725 104,014
Other noncurrent liabilities 11,192 9,607
---------- ----------
Total liabilities 294,467 314,064
---------- ----------
Commitments and contingencies
Stockholders' Equity
Preferred stock, par value $0.001,
100,000,000 shares authorized as of
July 31, 2025 and January 31, 2025.
No shares issued and outstanding as
of July 31, 2025 and January 31,
2025 -- --
Class A common stock, par value
$0.001, 1,000,000,000 shares
authorized as of July 31, 2025 and
January 31, 2025. 79,465,080 shares
and 76,644,240 shares issued and
outstanding as of July 31, 2025 and
January 31, 2025, respectively 80 77
Class B common stock, par value
$0.001, 100,000,000 shares authorized
as of July 31, 2025 and January 31,
2025. 13,365,549 shares and
13,404,097 shares issued and
outstanding as of July 31, 2025 and
January 31, 2025, respectively 13 13
Class C common stock, par value
$0.001, 100,000,000 shares authorized
as of July 31, 2025 and January 31,
2025. No shares issued and
outstanding as of July 31, 2025 and
January 31, 2025 -- --
Additional paid-in capital 2,673,640 2,560,224
Accumulated deficit (1,184,319) (1,105,730)
---------- ----------
Total stockholders' equity 1,489,414 1,454,584
---------- ----------
Total liabilities and
stockholders' equity $ 1,783,881 $ 1,768,648
========== ==========
ServiceTitan, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended Six Months Ended July
July 31, 31,
------------------- ----------------------
2025 2024 2025 2024
-------- -------- -------- -----------
Cash flows provided
by operating
activities
Net loss $(32,225) $(35,652) $(78,589) $ (91,691)
Adjustments to
reconcile net loss
to net cash
provided by
operating
activities
Depreciation and
amortization
expense 20,035 19,876 39,990 39,607
Amortization of
deferred contract
costs 3,604 2,806 6,940 5,393
Non-cash operating
lease expense 1,406 1,635 2,758 3,407
Stock-based
compensation
expense 49,307 23,685 93,056 43,624
Loss on impairment
and disposal of
assets 200 10,143 8,260 30,274
Change in
valuation of
contingent
consideration -- (105) -- (135)
Deferred income
taxes 679 383 1,325 1,121
Amortization of
debt issuance
costs 128 69 248 127
Provision for
credit losses 1,544 1,117 5,267 1,840
Changes in
operating assets
and liabilities,
net of effect of
business
acquisition:
Accounts
receivable (7,422) (6,522) (12,692) (11,083)
Prepaid expenses
and other
current assets (10,217) (5,278) (8,546) (3,354)
Deferred
contract costs (4,425) (3,562) (10,164) (5,709)
Contract assets (2,185) (1,378) (3,526) (2,449)
Other assets 177 63 685 343
Accounts payable
and other
accrued
expenses (1,068) (4,053) 2,933 283
Accrued
personnel
related
expenses 18,959 23,827 (21,673) (3,386)
Operating lease
liabilities (3,013) (2,832) (6,166) (3,877)
Other
liabilities 3,953 (399) 5,190 496
Deferred revenue 903 1,493 474 1,261
------- ------- ------- ----------
Net cash
provided by
operating
activities 40,340 25,316 25,770 6,092
------- ------- ------- ----------
Cash flows used in
investing
activities
Capitalized
internal-use
software (4,930) (5,415) (11,402) (10,200)
Purchase of property
and equipment (1,110) (1,173) (2,402) (1,801)
Acquisition of
business, net of
cash acquired -- -- -- (1,184)
------- ------- ------- ----------
Net cash used
in investing
activities (6,040) (6,588) (13,804) (13,185)
------- ------- ------- ----------
Cash flows provided
by (used in)
financing
activities
Payment of
contingent
consideration -- (135) -- (300)
Proceeds from
exercise of stock
options 17,255 1,774 18,436 3,214
Payment of debt
arrangements (269) (450) (537) (900)
Payment of deferred
initial public
offering costs (66) (216) (599) (843)
Shares repurchased
for tax withholding
for the settlement
of restricted stock
units -- (8,259) -- (13,565)
------- ------- ------- ----------
Net cash
provided by
(used in)
financing
activities 16,920 (7,286) 17,300 (12,394)
------- ------- ------- ----------
Net change in
cash, cash
equivalents,
and
restricted
cash 51,220 11,442 29,266 (19,487)
Cash, cash
equivalents, and
restricted cash
Beginning of period 420,892 117,934 442,846 148,863
------- ------- ------- ----------
End of period $472,112 $129,376 $472,112 $ 129,376
======= ======= ======= ==========
Statement Regarding Use of Non-GAAP Financial Measures
In addition to our results prepared in accordance with GAAP, we believe non-GAAP gross profit and non-GAAP gross margin, in total and for platform, and professional services and other, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, and non-GAAP earnings per share ("EPS") are useful in evaluating our operating performance.
These measures, however, have certain limitations in that they reflect the exercise of judgment by our management about which expenses are excluded or included and do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, our financial results determined in accordance with GAAP. We caution investors that amounts presented in accordance with our definition of non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, and non-GAAP EPS may not be comparable to similar measures disclosed by other companies because not all companies and analysts calculate these measures in the same manner.
For the reasons set forth below, we believe that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures.
-- Stock-based compensation expense and related employer payroll taxes. We
exclude stock-based compensation expense, including the performance-based
RSU's granted to our Co-Founders, and related employer payroll taxes to
allow investors to make more meaningful comparisons of our performance
between periods and to facilitate a comparison of our performance to
those of other peer companies. Stock-based compensation may vary between
periods due to various factors unrelated to our core performance,
including as a result of the assumptions used in the valuation
methodologies, timing and amount of grants and other factors. We exclude
employer payroll taxes because the amounts vary based on timing and
settlement or vesting of awards unrelated to our core operating
performance. Moreover, stock-based compensation expense is a non-cash
expense that we exclude from our internal management reporting processes
and when assessing our actual performance, budgeting, planning, and
forecasting future periods.
-- Amortization of acquired intangible assets. We incur amortization expense
for acquired intangible assets in connection with acquisitions of certain
businesses and technologies. Amortization of acquired intangible assets
is a non-cash expense that is significantly affected by the timing and
size of acquisitions, and the inherent subjective nature of purchase
price allocations. Because these costs have already been incurred, we
exclude the amortization expense from our internal management reporting
processes. We exclude these charges when assessing our actual performance
and when budgeting, planning, and forecasting future periods. Investors
should note that the use of intangible assets contributed to our revenues
earned during the periods presented and will contribute to our future
period revenues as well.
-- Restructuring charges. To better align our strategic priorities with our
investments, we implemented workforce reductions in fiscal 2025. In
connection with these reductions, we incurred employee-related expenses
including severance and other termination benefits. We excluded these
charges when assessing our actual performance and when budgeting,
planning and forecasting future periods.
-- Loss on operating lease assets. We have incurred impairments on certain
right-of-use assets and other long-lived assets. We believe that it is
useful to exclude these charges when assessing the level of various
operating expenses and resource allocations when budgeting, planning and
forecasting future periods. In addition, we believe excluding such costs
enhances the comparability between periods.
-- Acquisition-related items. We have incurred costs related to acquisitions,
including legal, third-party valuation and due diligence, insurance costs,
and one-time retention bonuses for employees of acquired companies. In
addition, we periodically record the change to the fair value of
contingent consideration related to past acquisitions. We exclude these
items when assessing our actual performance and when budgeting, planning
and forecasting future periods. We believe excluding these items allows
investors to make meaningful comparisons between our core operating
results and those of other peer companies.
Non-GAAP EPS
We define non-GAAP basic EPS as non-GAAP net income divided by weighted-average shares outstanding used in computing net loss per share attributable to common stockholders, basic. We define non-GAAP diluted EPS as non-GAAP net income divided by weighted-average shares outstanding giving effect to the weighted average of all potentially dilutive common stock equivalents outstanding for the period including options to purchase common stock, restricted stock units, and acquisition indemnity shares withheld. The dilutive effect of outstanding awards is reflected in non-GAAP diluted earnings per share by application of the treasury method.
Free Cash Flow
We define free cash flow as GAAP net cash provided by (used in) operating activities less cash used for investing activities for capitalized internal use software and less cash paid for purchases of, and deposits for, property and equipment. We believe that free cash flow is a meaningful indicator of our sources of liquidity and capital requirements that provides information to management and investors in evaluating the cash flow trends of our business. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Free cash flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Other companies may calculate free cash flow or similarly titled non-GAAP measures differently, which could reduce the usefulness of free cash flow as a tool for comparison. In addition, free cash flow does not reflect mandatory debt service and other non-discretionary expenditures that are required to be made under contractual commitments and does not represent the total increase or decrease in our cash balance for any given period.
ServiceTitan, Inc.
GAAP to Non-GAAP Reconciliations
(unaudited)
Non-GAAP Gross Profit and Non-GAAP Gross Margin
Professional
Platform Services and Other Total
------------------- --------------------- ------------------
Three Months Ended Three Months Ended Three Months Ended
July 31, July 31, July 31,
------------------- --------------------- ------------------
2025 2024 2025 2024 2025 2024
-------- --------- ------- ----------- -------- --------
(in thousands)
GAAP gross profit $180,735 $ 135,761 $(9,386) $ (8,935) $171,349 $126,826
Stock-based
compensation
expense and
related
employer
payroll
taxes 1,484 1,385 1,364 1,137 2,848 2,522
Amortization
of acquired
intangible
assets 5,533 5,533 334 334 5,867 5,867
Loss on
operating
lease assets -- 1,373 -- 675 -- 2,048
Non-GAAP gross
profit $187,752 $ 144,052 $(7,688) $ (6,789) $180,064 $137,263
======= ======== ====== ========== ======= =======
Professional
Platform Services and Other Total
------------------- ----------------------- ---------------
Three Months Ended Three Months Ended July Three Months
July 31, 31, Ended July 31,
------------------- ----------------------- ---------------
2025 2024 2025 2024 2025 2024
----- -------- ----- ------------ ---- -----
GAAP gross margin 77.7% 73.4% (99.9)% (111.7)% 70.8% 65.7%
Stock-based
compensation
expense and
related
employer
payroll taxes 0.6% 0.7% 14.5% 14.2% 1.2% 1.3%
Amortization of
acquired
intangible
assets 2.4% 3.0% 3.6% 4.2% 2.4% 3.0%
Loss on
operating
lease assets 0.0% 0.7% 0.0% 8.4% 0.0% 1.1%
Non-GAAP gross
margin* 80.7% 77.9% (81.8)% (84.9)% 74.4% 71.1%
==== ======== ===== ============ ==== =====
* Totals may not foot due to rounding.
Professional
Platform Services and Other Total
------------------- ---------------------- ------------------
Six Months Ended Six Months Ended July Six Months Ended
July 31, 31, July 31,
------------------- ---------------------- ------------------
2025 2024 2025 2024 2025 2024
-------- --------- -------- ----------- -------- --------
(in thousands)
GAAP gross profit $338,680 $ 251,229 $(18,935) $ (18,423) $319,745 $232,806
Stock-based
compensation
expense and
related
employer
payroll taxes 2,882 2,527 2,748 2,006 5,630 4,533
Amortization of
acquired
intangible
assets 11,066 10,836 668 1,118 11,734 11,954
Restructuring
charges -- 386 -- 129 -- 515
Loss on
operating
lease assets 960 4,201 751 1,993 1,711 6,194
------- -------- ------- ---------- ------- -------
Non-GAAP gross
profit $353,588 $ 269,179 $(14,768) $ (13,177) $338,820 $256,002
======= ======== ======= ========== ======= =======
Professional
Platform Services and Other Total
------------------- ---------------------- ---------------
Six Months Ended Six Months Ended July Six Months
July 31, 31, Ended July 31,
------------------- ---------------------- ---------------
2025 2024 2025 2024 2025 2024
----- -------- ------ ---------- ---- -----
GAAP gross margin 76.8% 72.1% (110.7)% (122.0)% 69.8% 64.1%
Stock-based
compensation
expense and
related
employer
payroll taxes 0.7% 0.7% 16.1% 13.3% 1.2% 1.2%
Amortization of
acquired
intangible
assets 2.5% 3.1% 3.9% 7.4% 2.6% 3.3%
Restructuring
charges 0.0% 0.1% 0.0% 0.9% 0.0% 0.1%
Loss on
operating lease
assets 0.2% 1.2% 4.4% 13.2% 0.4% 1.7%
---- -------- ------ ---------- ---- -----
Non-GAAP gross
margin* 80.2% 77.3% (86.3)% (87.3)% 74.0% 70.5%
==== ======== ====== ========== ==== =====
* Totals may not foot due to rounding.
Non-GAAP Sales and Marketing Expense
Three Months Six Months Ended
Ended July 31, July 31,
----------------- -------------------
2025 2024 2025 2024
------- ------- -------- --------
(in thousands)
GAAP sales and
marketing
expense $69,544 $58,218 $138,767 $115,819
Stock-based
compensation
expense and
related
employer
payroll taxes (7,694) (4,069) (13,262) (7,644)
Amortization of
acquired
intangible
assets (5,515) (5,606) (11,030) (11,056)
Restructuring
charges -- -- -- (292)
Loss on
operating
lease assets -- (1,784) (1,765) (5,433)
------ ------ ------- -------
Non-GAAP sales and
marketing
expense $56,335 $46,759 $112,710 $ 91,394
====== ====== ======= =======
Non-GAAP Research and Development Expense
Three Months Ended Six Months Ended
July 31, July 31,
------------------ -------------------
2025 2024 2025 2024
-------- ------- -------- --------
(in thousands)
GAAP research and
development expense $ 73,065 $62,449 $142,205 $121,062
Stock-based
compensation expense
and related employer
payroll taxes (12,703) (9,851) (24,966) (17,609)
Acquisition-related
items -- (250) -- (250)
Restructuring charges -- -- -- (991)
Loss on operating
lease assets -- (1,765) (1,679) (5,243)
------- ------ ------- -------
Non-GAAP research and
development expense $ 60,362 $50,583 $115,560 $ 96,969
======= ====== ======= =======
Non-GAAP General and Administrative Expense
Three Months Ended Six Months Ended
July 31, July 31,
------------------ -------------------
2025 2024 2025 2024
-------- ------- -------- --------
(in thousands)
GAAP general and
administrative expense $ 63,512 $38,769 $123,081 $ 81,963
Stock-based
compensation expense
and related employer
payroll taxes (15,830) (7,964) (28,477) (15,192)
Stock-based
compensation expense
- Co-Founders
performance based
RSUs (13,518) -- (26,589) --
Acquisition-related
items -- 127 -- (1,927)
Restructuring charges -- -- -- (698)
Loss on operating
lease assets -- (4,490) (2,877) (13,298)
------- ------ ------- -------
Non-GAAP general and
administrative expense $ 34,164 $26,442 $ 65,138 $ 50,848
======= ====== ======= =======
Non-GAAP Income from Operations and Non-GAAP Operating Margin
Three Months Ended Six Months Ended
July 31, July 31,
------------------- -------------------
2025 2024 2025 2024
-------- -------- -------- --------
(in thousands)
GAAP loss from
operations $(34,772) $(32,610) $(84,308) $(86,038)
Stock-based
compensation expense
and related employer
payroll taxes 39,075 24,406 72,335 44,978
Stock-based
compensation expense
- Co-Founders
performance based
RSUs 13,518 -- 26,589 --
Amortization of
acquired intangible
assets 11,382 11,473 22,764 23,010
Restructuring charges -- -- -- 2,496
Acquisition-related
items -- 123 -- 2,177
Loss on operating
lease assets -- 10,087 8,032 30,168
------- ------- ------- -------
Non-GAAP income from
operations $ 29,203 $ 13,479 $ 45,412 $ 16,791
======= ======= ======= =======
Three Months Ended Six Months Ended
July 31, July 31,
------------------ -----------------
2025 2024 2025 2024
------ ------ ----- ------
GAAP operating margin (14.4)% (16.9)% (18.4)% (23.7)%
Stock-based
compensation expense
and related employer
payroll taxes 16.1% 12.6% 15.8% 12.4%
Stock-based
compensation expense
- Co-Founders
performance based
RSUs 5.6% 0.0% 5.8% 0.0%
Amortization of
acquired intangible
assets 4.7% 5.9% 5.0% 6.3%
Restructuring charges 0.0% 0.0% 0.0% 0.7%
Acquisition-related
items 0.0% 0.1% 0.0% 0.6%
Loss on operating
lease assets 0.0% 5.2% 1.8% 8.3%
----- ------ ----- ------
Non-GAAP operating
margin* 12.1% 7.0% 9.9% 4.6%
===== ====== ===== ======
* Totals may not foot due to rounding.
Non-GAAP Net Income
Three Months Ended Six Months Ended
July 31, July 31,
------------------- -------------------
2025 2024 2025 2024
-------- -------- -------- --------
(in thousands)
GAAP net loss $(32,225) $(35,652) $(78,589) $(91,691)
Stock-based
compensation expense
and related employer
payroll taxes 39,075 24,406 72,335 44,978
Stock-based
compensation expense
- Co-Founders
performance based
RSUs 13,518 -- 26,589 --
Amortization of
acquired intangible
assets 11,382 11,473 22,764 23,010
Restructuring charges -- -- -- 2,496
Acquisition-related
items -- 123 -- 2,177
Loss on operating
lease assets -- 10,087 8,032 30,168
Income tax effects
related to the above
adjustments(3) 1,095 (420) (389) (909)
------- ------- ------- -------
Non-GAAP net income $ 32,845 $ 10,017 $ 50,742 $ 10,229
======= ======= ======= =======
(3) This amount represents adjustments for the current and deferred income tax effects on non-GAAP net income for the impact of the non-GAAP adjustments above.
Non-GAAP EPS
Three Months Ended July Six Months Ended
31, 2025(4) July 31, 2025(4)
----------------------- --------------------
(in thousands, except share and per share
amounts)
Numerator
Non-GAAP net
income $ 32,845 $ 50,742
Denominator
Weighted-average
shares used in
computing net
loss per share
attributable to
common
stockholders,
basic 91,687,907 91,041,726
Effect of dilutive
securities:
Stock-based
awards 7,699,740 7,957,233
----- ---------------- ----------------
Weighted-average
shares used in
computing
non-GAAP net
income per share
attributable to
common
stockholders,
diluted 99,387,647 98,998,959
GAAP net loss per
share, basic and
diluted $ (0.35) $ (0.86)
Non-GAAP net income
per share, basic $ 0.36 $ 0.56
Non-GAAP net income
per share, diluted $ 0.33 $ 0.51
(4) ServiceTitan has not provided prior year non-GAAP EPS for the comparative three and six month periods ended July 31, 2024 because it does not believe such disclosure would provide meaningful supplemental information regarding an EPS trend due to the redeemable convertible preferred stock that was outstanding prior to our IPO.
Free Cash Flow
Three Months Six Months Ended
Ended July 31, July 31,
----------------- -------------------
2025 2024 2025 2024
------- ------- -------- --------
(in thousands)
GAAP net cash
provided by
operating
activities $40,340 $25,316 $ 25,770 $ 6,092
Capitalized
internal-use
software (4,930) (5,415) (11,402) (10,200)
Purchase of
property and
equipment (1,110) (1,173) (2,402) (1,801)
------ ------ ------- -------
Non-GAAP free
cash flow $34,300 $18,728 $ 11,966 $ (5,909)
====== ====== ======= =======
(END) Dow Jones Newswires
September 04, 2025 16:05 ET (20:05 GMT)