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    TTAN
    Earnings call· Apr 2026(Q1 FY27)

    ServiceTitan Q1 FY27 earnings call TTAN

    Jun 4, 2026 Source

    Executive summary

    ServiceTitan Q1 FY27 — Strong Revenue Growth and Record Operating Margins Driven by Max Adoption

    ServiceTitan delivered a strong Q1 FY27, driven by robust revenue growth and record operating margins, as the company continues to execute on its vision of building an agentic operating system for the trades. The Max platform is seeing accelerated adoption and delivering significant ROI for early customers, while internal AI tooling is enhancing organizational velocity. Management is focused on scaling Max adoption and maintaining a disciplined approach to investments, leading to an improved full-year outlook despite some Q1 tailwinds.

    Highlights

    5

    • Total revenue grew 25% year-over-year to $268.8 million.

    • Non-GAAP operating margin reached 15.2%, an improvement of 770 basis points year-over-year.

    • Non-GAAP platform gross margin improved by 160 basis points year-over-year to 81.3%.

    • Customers with annualized billings greater than $100,000 surpassed 2,000, representing over 60% of annualized billings and the fastest-growing segment.

    • The number of locations on Max more than doubled in Q1 and is expected to double again in Q2.

    Concerns

    3

    • Q1 GTV benefited from a roughly 150 basis points tailwind due to an additional business day and another 150 basis points from weather.

    • Q1 operating income overperformance was partially driven by the timing of certain expenses, which are expected to normalize.

    • Free cash flow was negative $9.6 million in Q1, though an improvement from negative $22.3 million in the prior year.

    Guidance & targets

    7
    CategoryTargetConfidence
    Total Revenue
    $284 million to $286 million
    high materiality
    High
    Operating Income
    $38 million to $39 million
    high materiality
    High
    Total Revenue
    $1.13 billion to $1.14 billion
    high materiality
    High
    Operating Income
    $142 million to $147 million
    high materiality
    High
    Incremental Operating Margins
    higher than our initial target of 25%
    medium materiality
    High
    Non-GAAP Tax Rate
    18%
    medium materiality
    High
    Usage Revenue Growth vs. GTV
    grow more quickly than GTV
    medium materiality
    Medium

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    Enterprise (>$100K ARR customers)
    This segment is heavily concentrated with private equity partners and is a key growth driver for the company.
    Total customers: >2,000Share of annualized billings: >60%Growth: fastest-growing segment
    		————

    Operational metrics

    14
    Gross Transaction Volume (GTV)
    $21.7 billion23% year-over-year growth
    Q1 FY27

    Q1 benefited from an additional business day and an unusually early start to the cooling season.

    Subscription Revenue
    $202 million24% year-over-year growth
    Q1 FY27

    Led by strong growth in Pro commercial and initial upside for Max.

    Usage Revenue
    $58.5 million29% year-over-year growth
    Q1 FY27

    Fintech revenue driven by higher on-platform monetization and strength in commercial GTV.

    Total Platform Revenue
    $260.6 million25% year-over-year growth
    Q1 FY27

    Sum of subscription and usage revenue.

    Professional Services Revenue
    $8.3 million
    Q1 FY27

    Reported for Q1 FY27.

    Platform Gross Margin (non-GAAP)
    81.3%160 basis points improvement year-over-year
    Q1 FY27

    Improved from prior year.

    Total Gross Margin (non-GAAP)
    75.3%170 basis points improvement year-over-year
    Q1 FY27

    Improved from prior year.

    Operating Income (non-GAAP)
    $40.8 million
    Q1 FY27

    Resulted in a 15.2% operating margin.

    Operating Margin (non-GAAP)
    15.2%770 basis points improvement year-over-year
    Q1 FY27

    Record operating margin, overperformed expectations due to GTV and lower costs.

    E.D.S. Call Booking Rates
    increased roughly 16 points
    Q1 2026 vs Q1 2025

    Improvement seen by a ServiceTitan Max customer.

    E.D.S. Close Rate in the Field
    increased more than 9 points
    Q1 2026 vs Q1 2025

    Improvement seen by a ServiceTitan Max customer.

    E.D.S. Average Ticket Size
    increased more than 30%
    Q1 2026 vs Q1 2025

    Improvement seen by a ServiceTitan Max customer.

    E.D.S. Average Revenue per Technician
    increased more than 50%
    Q1 2026 vs Q1 2025

    Compounding result of other improvements for a ServiceTitan Max customer.

    E.D.S. Jobs Touched by Optimization Engine
    nearly half
    Q1 FY27

    Refers to jobs touched by ServiceTitan Max for E.D.S. Air Conditioning & Plumbing.

    Industry KPIs

    8
    MetricValueDetails
    Revenue growth$268.8 millionUSD
    Arr net new arr>2,000 customerscount
    Customer account count>2,000count
    Large customer cohorts>2,000 customerscount
    Operating FCF margin rule of 4015.2%%
    Ai product adoption monetizationmore than doubledcount
    Net revenue net dollar retention>110%%
    Headcount internal ai productivityincreasedcount

    Product announcements

    9
    ProductTypeDetails
    Speed to Leadlaunch
    Inbound Call Booking Automationlaunch
    Auto Inventory Replenishmentlaunch
    Invoice Protectionlaunch
    Invoicing Agentslaunch
    Equipment Systemslaunch
    Enhanced CRM Capabilitieslaunch
    Outbound Calling (Virtual Agents)launch
    Receptionist Capabilities (Virtual Agents)launch

    Risks & headwinds

    3
    Timing of expenses normalizingThroughout FY27

    Q1 overperformance partially due to lower costs from timing

    Mitigation: Company plans to reinvest behind strength, but expects timing of expense growth to normalize and incremental investments in Max and inference.

    Weather impact on GTV seasonalityQ2 FY27 and summer months

    Q1 benefited from ~150 basis points tailwind due to unusually early start to cooling season

    Mitigation: Management is not taking a differentiated view on weather for guidance, assuming a consistent summer with prior years, but acknowledges potential pull-forward from Q2 if summer is milder.

    Labor disruptions from data center build-outsMedium to long-term

    Huge tidal wave of work coming in from data centers for commercial segment

    Mitigation: Not anticipating meaningful impact to business or customers' businesses for the foreseeable future, but monitoring closely as it's a fast-moving situation.

    Q&A highlights

    8

    What were the key insights from your private equity symposium regarding ServiceTitan's role and future, especially with AI?

    Ara highlighted ServiceTitan's mandate to help operators thrive and sponsors earn higher returns by delivering AI for the trades, particularly for large operators. He emphasized the platform's end-to-end nature (execution, orchestration, interaction layer) as the natural destination for automation, leveraging data and ecosystem advantages, and reiterated excitement for AI's future impact.

    “our job as the operating system for the trades is to help our operators thrive and, of course, to help sponsors earn even higher returns. And that is our mandate, and our mandate is to deliver AI for the trades, particularly for the largest operators.”

    asked by Josh Baer · answered by Ara Mahdessian

    2 min read6 chapters

    Detailed Narrative

    01

    Building the Agentic Operating System for Trades

    ServiceTitan is actively developing an 'agentic operating system' for the trades, aiming to transform contractor operations. This system leverages AI to automate complex workflows, allowing technicians to focus on customer service and owners on business outcomes. The platform orchestrates lead generation, appointment booking, and conversion into revenue, with AI agents and humans working seamlessly together to enhance efficiency and job satisfaction.

    02

    Max Platform Driving Significant Customer ROI

    The ServiceTitan Max platform is demonstrating substantial value for early adopters. For instance, E.D.S. Air Conditioning & Plumbing, a Max customer, reported a 16-point increase in call booking rates, a 9-point increase in field close rates, and a 30% increase in average ticket size year-over-year. These improvements compounded to a 50% increase in average revenue per technician, with nearly half of their Q1 jobs touched by the optimization engine, enabling significant scaling without additional overhead.

    03

    Strategic Growth Vectors and Enterprise Momentum

    ServiceTitan continues to execute on its multiyear growth strategies in the enterprise, commercial, and roofing segments. The company achieved a significant milestone by surpassing 2,000 customers with annualized billings exceeding $100,000. This enterprise cohort now accounts for over 60% of ServiceTitan's annualized billings and remains its fastest-growing customer segment, highlighting strong adoption among larger operators.

    04

    Accelerated Internal Velocity Through AI in R&D

    The company is focused on accelerating its organizational velocity by building a 'software factory' where AI agents play a central role in code development. This involves leveraging AI across the entire product development lifecycle, from collecting user feedback and ideation to code creation, bug detection, and prevention. This approach aims to deliver more value to customers faster and accelerate the pace of product development.

    05

    Rapid Max Rollout and Virtual Agent Adoption

    ServiceTitan more than doubled the number of locations on Max in Q1 and anticipates doubling them again in Q2, driven by strong demand. Every fully ramped Max customer is utilizing at least one fully automated job, with over 10% of jobs fully automated on average. Additionally, virtual agents, including newly introduced outbound calling and receptionist capabilities, are experiencing strong early customer adoption, expanding the addressable opportunity for job automation.

    06

    Q1 Financial Performance and Expense Management

    ServiceTitan's Q1 financial results exceeded expectations, with strong revenue and operating income. This overperformance was primarily due to higher-than-expected Gross Transaction Volume (GTV), which benefited from an additional business day and favorable weather, combined with lower costs due to timing. The company plans to reinvest these gains into Max and AI inference, while still expecting full-year incremental operating margins to exceed initial targets.

    AI-generated summary of the company’s earnings call. Not investment advice.