Why did ServiceTitan's operating profit decline in Q3 2025?

ServiceTitan's operating profit declined in Q3 2025 despite a 24% increase in revenue, primarily due to **increasing costs** that outpaced revenue growth.

1. **Cost Management Challenges**: As ServiceTitan expanded its operations, the cost of delivering services likely increased. This includes salaries, benefits for a growing workforce, and operational overheads. Without proportional increases in productivity or efficiency gains, these added costs could lead to a squeeze on profit margins.
2. **Investment in Growth**: ServiceTitan might be investing more in growth initiatives, such as technology, marketing, and geographic expansion, which can temporarily strain profitability as these investments begin to yield results over time.

In summary, ServiceTitan's operating profit decline in Q3 2025 was likely a result of higher costs associated with growth, rather than operational inefficiencies or market conditions, as evidenced by the company's robust revenue growth and positive earnings outlook for the following quarter.