ServiceTitan 2026 Q1 Earnings Strong Performance as Net Income Narrows 17%
Daily EarningsFriday, Jun 13, 2025 5:04 am ET
9min readServiceTitan (TTAN) reported its fiscal 2026 Q1 earnings on Jun 12th, 2025. The total revenue of increased by 26.6% to $215.69 million in 2026 Q1, up from $170.33 million in 2025 Q1, with specific segment revenue listed as follow: Platform revenue: $207.98 million, Usage: $45.27 million, Subscription: $162.72 million, Professional services and other: $7.71 million and Total revenue: $215.69 million. ServiceTitan’s results surpassed expectations, driven by robust revenue growth and an impressive reduction in net losses. The company maintained its guidance, projecting steady revenue and operating income growth for the upcoming quarters.
Revenue
ServiceTitan's revenue for Q1 2026 reached $215.69 million, showcasing a significant 26.6% increase from the previous year's Q1. Platform revenue led the way, generating $207.98 million, while Usage added $45.27 million. Subscription services contributed $162.72 million and Professional services and other segments brought in $7.71 million. This impressive growth is attributed to the company's expanding customer base and increased software adoption.
Earnings/Net Income
ServiceTitan managed to narrow its losses significantly, with earnings per share improving from a loss of $2.02 in 2025 Q1 to a loss of $0.51 in 2026 Q1, a substantial 74.8% improvement. Net losses decreased by 17.3%, down to $-46.36 million from $-56.04 million in the previous year. This marks a record high for fiscal Q1 net income in the past two years. The EPS improvement signifies a positive trend toward financial health.
Price Action
The stock price of ServiceTitan declined by 0.18% during the latest trading day, fell by 10.20% over the most recent full trading week, and dropped 15.60% month-to-date.
Post-Earnings Price Action Review
The strategy of buying when revenues miss and holding for 30 days resulted in slight underperformance compared to the benchmark. Despite this, the strategy achieved an excess return of 0.89%, outperforming the benchmark in this instance. However, the overall compound annual growth rate was -0.83%, and the strategy experienced a maximum drawdown of -29.19%, highlighting vulnerability to significant losses during the backtested period. The Sharpe ratio stood at -0.01, reflecting unfavorable risk-adjusted returns, while volatility was high at 57.16%, contributing to the strategy's risk profile. These metrics suggest that while the strategy occasionally outperforms, it generally carries considerable risk and volatility, making it less appealing for risk-averse investors.
CEO Commentary
Ara Mahdessian, CEO of ServiceTitan, expressed optimism regarding the company’s performance, highlighting strong revenue growth driven by an expanding customer base and increased adoption of their software solutions. He acknowledged challenges from macroeconomic factors but emphasized a commitment to innovation and strategic partnerships, particularly in the roofing sector, to enhance market positioning. Mahdessian noted the importance of customer success management in driving product utilization, which is expected to bolster expansion opportunities. He conveyed confidence in the company's trajectory, stating that while they anticipate fluctuations in growth rates, their foundational strategies remain robust.
Guidance
ServiceTitan projects Q1 2026 revenue between $207 million and $209 million, with an operating income guidance of $12 million to $13 million. For the full fiscal year 2026, the company expects revenue to be in the range of $895 million to $905 million and operating income between $48 million and $53 million. This guidance reflects a cautious outlook, taking into account anticipated external challenges and the impact of having one fewer business day compared to the previous year.
Additional News
ServiceTitan recently announced a strategic partnership with EagleView, a leading aerial roofing measurement provider. This integration combines EagleView's precise aerial property data with ServiceTitan's estimating and proposal tools, streamlining operations for roofing and exterior contractors. In another significant development, ServiceTitan has teamed up with Cobalt Service Partners to enhance growth and efficiency across Cobalt's commercial contractor portfolio using ServiceTitan's business management platform. Additionally, recent research by ServiceTitan highlights that 76% of exterior contractors are aiming for revenue growth and profitability in 2025, focusing on optimization strategies to navigate economic uncertainties.
Revenue
ServiceTitan's revenue for Q1 2026 reached $215.69 million, showcasing a significant 26.6% increase from the previous year's Q1. Platform revenue led the way, generating $207.98 million, while Usage added $45.27 million. Subscription services contributed $162.72 million and Professional services and other segments brought in $7.71 million. This impressive growth is attributed to the company's expanding customer base and increased software adoption.
Earnings/Net Income
ServiceTitan managed to narrow its losses significantly, with earnings per share improving from a loss of $2.02 in 2025 Q1 to a loss of $0.51 in 2026 Q1, a substantial 74.8% improvement. Net losses decreased by 17.3%, down to $-46.36 million from $-56.04 million in the previous year. This marks a record high for fiscal Q1 net income in the past two years. The EPS improvement signifies a positive trend toward financial health.
Price Action
The stock price of ServiceTitan declined by 0.18% during the latest trading day, fell by 10.20% over the most recent full trading week, and dropped 15.60% month-to-date.
Post-Earnings Price Action Review
The strategy of buying when revenues miss and holding for 30 days resulted in slight underperformance compared to the benchmark. Despite this, the strategy achieved an excess return of 0.89%, outperforming the benchmark in this instance. However, the overall compound annual growth rate was -0.83%, and the strategy experienced a maximum drawdown of -29.19%, highlighting vulnerability to significant losses during the backtested period. The Sharpe ratio stood at -0.01, reflecting unfavorable risk-adjusted returns, while volatility was high at 57.16%, contributing to the strategy's risk profile. These metrics suggest that while the strategy occasionally outperforms, it generally carries considerable risk and volatility, making it less appealing for risk-averse investors.
CEO Commentary
Ara Mahdessian, CEO of ServiceTitan, expressed optimism regarding the company’s performance, highlighting strong revenue growth driven by an expanding customer base and increased adoption of their software solutions. He acknowledged challenges from macroeconomic factors but emphasized a commitment to innovation and strategic partnerships, particularly in the roofing sector, to enhance market positioning. Mahdessian noted the importance of customer success management in driving product utilization, which is expected to bolster expansion opportunities. He conveyed confidence in the company's trajectory, stating that while they anticipate fluctuations in growth rates, their foundational strategies remain robust.
Guidance
ServiceTitan projects Q1 2026 revenue between $207 million and $209 million, with an operating income guidance of $12 million to $13 million. For the full fiscal year 2026, the company expects revenue to be in the range of $895 million to $905 million and operating income between $48 million and $53 million. This guidance reflects a cautious outlook, taking into account anticipated external challenges and the impact of having one fewer business day compared to the previous year.
Additional News
ServiceTitan recently announced a strategic partnership with EagleView, a leading aerial roofing measurement provider. This integration combines EagleView's precise aerial property data with ServiceTitan's estimating and proposal tools, streamlining operations for roofing and exterior contractors. In another significant development, ServiceTitan has teamed up with Cobalt Service Partners to enhance growth and efficiency across Cobalt's commercial contractor portfolio using ServiceTitan's business management platform. Additionally, recent research by ServiceTitan highlights that 76% of exterior contractors are aiming for revenue growth and profitability in 2025, focusing on optimization strategies to navigate economic uncertainties.
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