The chart below shows how TTAN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TTAN sees a +7.96% change in stock price 10 days leading up to the earnings, and a +7.77% change 10 days following the report. On the earnings day itself, the stock moves by -2.42%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue and Subscription Growth: ServiceTitan achieved $772 million in total revenue for fiscal year 2025, representing a 26% year-over-year growth, with subscription revenue growing by 28%.
Operating Margin Improvement: The company delivered 27% incremental operating margins, showing over 600 basis points of improvement, and was free cash flow positive for the first time.
Gross Transaction Volume Growth: ServiceTitan's gross transaction volume (GTV) for Q4 was $17 billion, up 26% year-over-year, indicating strong performance particularly among existing residential customers.
Q4 Revenue Surge: Total revenue for Q4 was $209.3 million, a 29% increase year-over-year, driven by a 31% growth in subscription revenue and a 26% increase in usage revenue.
Customer Retention Success: Net dollar retention exceeded 110% for the quarter, and gross dollar retention was greater than 95% for fiscal year 2025, indicating strong customer loyalty and expansion.
Customer Base Expansion: The company ended Q4 with approximately 9,500 active customers, an 18% increase year-over-year, reflecting successful customer acquisition strategies.
Gross Margin Improvement: ServiceTitan's platform gross margin improved to 76.7%, and total gross margin increased to 70.2%, showcasing operational efficiency and profitability.
New Product Launch Success: The launch of new products like Sales Pro and Contact Center Pro has shown early success, contributing positively to the overall growth strategy.
Enterprise Expansion Strategy: The company is focused on expanding its enterprise capabilities and pro product adoption, which are expected to drive future growth and customer value.
Strategic Industry Partnerships: ServiceTitan's partnership with major players in the roofing industry, such as GAF, is expected to enhance its market position and drive further growth in that segment.
Negative
Business Day Impact on Growth: Q1 of FY 2026 will have one fewer business day compared to Q1 of FY 2025, which is expected to be a 150 basis points headwind to reported year over year GTV and usage revenue growth.
Prudent Guidance Outlook: The company is early in its journey as a public company and is being prudent in its guidance, indicating that the strong performance in Q4 may not be sustainable going forward.
Q4 Performance Influenced by Tailwinds: The CFO noted that while Q4 showed strong performance, it was influenced by several tailwinds that may not continue, including weather impacts and excitement from the IPO.
Job Impact Monitoring: The company has not yet observed an impact on jobs performed or average ticket due to macroeconomic conditions, but they are monitoring the situation closely.
Future Volatility Expected: The CFO indicated that the success seen in Q4 new deals is not expected to lead to a new norm going forward, suggesting potential volatility in future quarters.
Cautious Future Outlook: The company is cautious about extrapolating Q4's performance into the future, indicating that they are prepared for potential fluctuations in GTV due to external factors.
Cautious Growth Expectations: The CFO mentioned that while they are excited about new products, they are not expected to be significant drivers of revenue in the near term, indicating a cautious approach to growth expectations from these products.
Earnings call transcript: ServiceTitan Q4 2025 reveals revenue growth
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