ServiceTitan (TTAN) investor relations material

Executive summary

• Achieved 21% year-over-year revenue growth in Q2 FY2027, driven by strong adoption of the Max Agentic Operating System and AI initiatives, with organizational velocity and execution contributing to results.

• Gross transaction volume (GTV) reached $26.8 billion, up 17% year-over-year.

• Net dollar retention rate exceeded 110% for the quarter, reflecting strong customer expansion.

• Leadership transition announced: CRO Ross Biestman to step down, with Rikus Pretorius taking over in Q4.

• Exceeded goal of doubling Max locations, expecting over 700 enrolled by fiscal year-end.

Financial highlights

• Q2 total revenue reached $293 million, up 21% year-over-year; platform revenue grew 22% to $284.5 million.

• Subscription revenue was $212.4 million; usage revenue $72.1 million for the quarter.

• Non-GAAP platform gross margin was 81.1%; total non-GAAP gross margin 74.6%; GAAP gross margin was 71.4%.

• Non-GAAP operating income was $44.4 million (15.2% margin); GAAP operating loss was ($27.6 million) (-9.4% margin).

• Free cash flow for Q2 was $50.5 million, up from $34.3 million a year ago.

Outlook and guidance

• Q3 2027 revenue guidance: $285–$287 million; non-GAAP income from operations: $29–$30 million.

• FY2027 revenue guidance: $1.139–$1.144 billion; non-GAAP income from operations: $152–$154 million.

• Incremental margins expected to be at least 25% annually, with FY2027 incremental margins now forecast at 33%.

• Long-term non-GAAP gross margin target revised to ~77%; operating margin target set at ~25%.

• Guidance reflects more moderate GTV growth and a mix shift toward Max, creating near-term revenue headwinds but positioning for higher quality growth.