"We uniquely have both the trade-specific workflows that they need as well as the enterprise capabilities that the largest customers need."
— Ara Mahdessian
03Detailed Report
TTAN
Company TTAN
Period
Q2 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 20, 2026
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Executive Summary
- ServiceTitan reported solid QQ2 2026 results with strong top-line momentum and meaningful margin expansion as the company leverages higher-value usage revenue, a robust subscription base, and automation-driven cost efficiencies. Total revenue reached $242.1 million, up 25% year over year (YoY), with subscription revenue up 27% YoY to $174.8 million and usage revenue up 23% YoY to $58.0 million. GTV was $22.9 billion, representing 19% YoY growth, underscoring durable activity across commercial and non-HVAC residential trades. Net dollar retention exceeded 110%, highlighting robust expansion within the installed base. Platform gross margin registered 80.7%, up 280 bps YoY (driven in part by reclassification of some customer success costs to sales/marketing, about 200 bps), and total gross margin rose 330 bps to 74.4%. Operating income was $29.2 million, delivering a record operating margin of 12.1% (an improvement of 510 bps YoY). Free cash flow was $34.3 million in QQ2, with year-to-date free cash flow turning positive versus the prior year. Management reaffirmed a disciplined outlook and highlighted strong year-to-date overperformance.
Key Performance Indicators
Revenue
Increasing
242.12M
QoQ: 12.25% | YoY: 33.28%
Gross Profit
Increasing
171.35M
70.77% margin
QoQ: 15.47% | YoY: 51.57%
Operating Income
Increasing
-34.77M
QoQ: -170.20% | YoY: 19.17%
Net Income
Increasing
-32.23M
QoQ: 30.50% | YoY: 29.71%
EPS
Increasing
-0.35
QoQ: 31.37% | YoY: 76.19%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $242.1 million in QQ2 2026, +25% YoY; Subscription revenue: $174.8 million, +27% YoY; Usage revenue: $58.0 million, +23% YoY; Total platform revenue: $232.7 million, +26% YoY; Q2 gross profit: $171.3 million, gross margin 74.4%; Platform gross margin: 80.7% (+280 bps YoY, ~200 bps from reallocation of customer success costs to S&M); Q2 operating income: $29.2 million, operating margin 12.1% (+510 bps YoY); Net dollar retention: >110%; Q2 free cash flow: $34.3 million; Year-to-date FCF: $12 million (FY ’26 YTD reference); Guidance: Q3 revenue $237–$239 million, Q3 operating income $14–$15 million; FY2026 revenue guidance $935–$940 million, FY2026 operating income guidance $74–$76 million; RTX: management targets 25% long-term incremental margins; Pantheon/Ignite events expected to bolster demand and product adoption.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
242.12M
33.28%
12.25%
Gross Profit
171.35M
51.57%
15.47%
Operating Income
-34.77M
19.17%
-170.20%
Net Income
-32.23M
29.71%
30.50%
EPS
-0.35
76.19%
31.37%
Key Financial Ratios
Management Insights Available for Members
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