ServiceTitan Inc. (TTAN) Business Profile

What it does

ServiceTitan sells cloud software to businesses that install, maintain and repair systems in homes and commercial buildings. Its customers include plumbing, heating and air-conditioning, roofing and landscaping businesses. Ara Mahdessian is its co-founder and chief executive officer.

The platform connects work that might otherwise be handled through separate tools. An office can use it to track advertising leads, book jobs, schedule and dispatch technicians, prepare estimates and invoices, and take payments. Field technicians access the platform through a mobile application, while office staff use a web browser. The software also supports inventory management, payroll integration and customer communications.

A typical customer starts with the Core product, which covers basic workflows across the business. Customers can add Pro products for more specialized functions and FinTech products for payment processing and connections to third-party consumer financing. For example, Dispatch Pro uses artificial intelligence to help assign technicians and plan routes, while Virtual Agents handle some calls to book, reschedule or confirm appointments.

ServiceTitan also offers Atlas, an AI layer integrated into its products. It introduced a pilot of Max in fiscal 2026, packaging advanced functionality and AI features with expert guidance. APIs and developer tools let customers connect ServiceTitan with their own systems and certain third-party applications.

How it makes money

ServiceTitan earns revenue from subscriptions, usage, and professional services and other activities. Its Core subscription is the starting point for most customers. Customers can add Pro and FinTech products, increase their number of users as they hire, and process more transactions through the platform as their businesses grow.

Subscription revenue was $712.3 million in fiscal 2026, representing 74.1% of revenue. The Core subscription is recognized over the contract term; revenue from upsell products such as Max and Pro is recognized as billed. ServiceTitan typically does not bill for the first quarter of a Max contract and then ramps billing to the full contract value over roughly the first year. It does not charge existing customers an onboarding fee to transition to Max.

Usage revenue was $213.1 million in fiscal 2026. It consists primarily of payment processing and is tied to activity on the platform. Payment-processing revenue is recognized net of interchange and other direct expenses passed to the customer. Virtual-agent charges also enter usage revenue, with charges based on calls, outcomes or text messages.

Professional services include help with onboarding and configuration, such as data and accounting migrations, telecom setup and custom reporting. ServiceTitan sells Core subscriptions primarily through its direct sales team, while specialized sales teams introduce FinTech and Pro products to existing customers.

Total revenue in the second quarter of fiscal 2027 was $292.8 million.

Customers and how it sells

ServiceTitan serves family-owned businesses with a few employees as well as large enterprises with national footprints. Some larger customers combine multiple businesses through franchise networks or other common buying partners. The business owner is typically the purchase decision maker, although executives and general managers can be involved at larger customers.

As of January 31, 2026, ServiceTitan had approximately 10,800 Active Customers, representing over 97% of its annualized billings for fiscal 2026. It defines an Active Customer as a parent organization billed in the prior three months with over $10,000 of annualized billings; a parent may have multiple locations, brands or subsidiaries.

The company acquires customers through digital and outbound marketing, word-of-mouth referrals and partnerships with industry associations, equipment manufacturers and distributors. Most direct sales are conducted virtually, with a dedicated team also meeting larger prospects in person.

ServiceTitan sees an opportunity to expand platform usage outside the United States and Canada over time. Its workforce is located in the United States, Canada, Armenia and other international locations, with most employees based in the United States.

Suppliers and costs

ServiceTitan relies on third parties for payment processing and consumer financing offered through its platform. A third-party processor accounted for 13.0% of revenue in fiscal 2026. Payment-processing revenue is reported net of interchange and other direct expenses passed to customers.

The company’s primary cash needs include personnel, provision of platform services and marketing. Its research and development organization includes engineering, product management, AI and data science, design, and security teams. ServiceTitan also employs industry specialists and invests in customer onboarding, support and sales.

As of January 31, 2026, ServiceTitan had 3,414 people engaged through direct employment and professional employer organizations. It also uses independent contractors and third-party service providers in certain locations and functions.

Operating cash outflows are typically higher in the first fiscal quarter because annual corporate bonuses are paid then. The third fiscal quarter typically includes increased sales and marketing expense associated with the company’s user conferences.

Competitive position

ServiceTitan competes with vendors offering tools for individual trade workflows, general-purpose business software, older on-premise field-service applications and narrower bundles for smaller trades businesses. Named competitors include Salesforce, SAP, FieldEdge, Workwave, ServiceTrade, AccuLynx, BuildOps, HouseCall Pro, JobNimbus and Jobber. Some potential customers also continue to use a combination of separate workflows rather than a single platform.

The company expects competition to increase as established and emerging providers enter the market, customer requirements change and new technologies, including AI-enabled products, become available. ServiceTitan identifies product breadth, integration, industry expertise, mobile capabilities and customer support among the criteria on which it competes.

Our reading: The platform’s coverage of scheduling, payments, inventory and other workflows can make it relatively embedded in a customer’s operations, supporting retention, although competing products can address individual parts of those workflows. Our reading: Industry-specific data and AI features may help ServiceTitan develop specialized products, but the evidence does not establish how difficult those capabilities are for competitors to replicate. Our reading: Customer relationships and onboarding support add to the platform’s potential staying power, while the presence of both broad software vendors and trade-focused providers limits certainty about the strength of that advantage.

Growth opportunities

ServiceTitan’s growth strategy centers on increasing the value of transactions its customers invoice through the platform, called gross transaction volume, or GTV. That can come from existing customers growing their businesses, new customers joining, or expansion into additional trades and markets. Customers that grow may add users, process more transactions and adopt more products.

ServiceTitan processed $82.1 billion of GTV in fiscal 2026, compared with $68.5 billion in fiscal 2025. It focuses on GTV rather than new customer count as it serves larger businesses and as trades businesses consolidate. Its gross dollar retention rate was over 95% for each of fiscal 2026, fiscal 2025 and fiscal 2024, measured using customer churn against prior-period annualized billings.

The company also plans to build and bundle add-on products, including AI-powered capabilities. Max is primarily available to residential customers in in-home trades, principally plumbing, HVAC, electrical and garage services. ServiceTitan expects to launch packages that provide an on-ramp to Max for customers not ready for a full transition.

ServiceTitan has broadened investment in Max and its software factory and is prioritizing existing trades. It expects to return to expansion into additional trades over time. It also sees an opportunity to expand platform usage outside the United States and Canada.

Structural risks

• Customer and transaction growth: Results depend on attracting and retaining customers, expanding their use of the platform and the growth of their businesses. Changes in spending on home and commercial services can affect transaction volumes.

• Competition and technology: Established and new providers offer competing products, and the company must continue improving its platform and developing products, including AI-powered tools. Adoption of software for the trades or of AI by customers could develop more slowly than ServiceTitan expects.

• Third-party dependencies: FinTech offerings depend on financial-services and technology partners that meet the needs of the trades. ServiceTitan must maintain those relationships as it expands.

• Security and regulation: Cybersecurity incidents, technical difficulties or service interruptions can affect the platform. Evolving rules on privacy, security, AI and other matters can require changes to products or practices and increase compliance costs.

• Seasonality and customer activity: Demand for customers’ services tends to rise in summer, affecting usage revenue. In the second quarter of fiscal 2027, customer lead-volume growth moderated and job growth among existing customers was lower than in recent quarters.

Bottom line

Our reading

ServiceTitan is a subscription-led software business whose revenue also depends on transactions and other activity by trades customers. [item1, item7] Its broad role in customers’ daily workflows and opportunities to sell add-ons support the business model, while competition and the need to keep developing products remain constraints. [item1, item1a] The shift toward Max adds another route for expansion, but its billing ramp and customers’ willingness to change their operations matter for how quickly that expansion appears in revenue. [call_prepared]