ServiceTitan achieved a 72.1% gross margin in 2027Q1, reflecting improved operational efficiency compared to the 61.9% margin recorded in 2024Q4.
| Sales/Revenue | 1.01B | 960.97M | 771.88M | 614.34M | 467.73M |
| Revenue Growth % | 24.09% | 24.5% | 25.64% | 31.34% | - |
| Cost of Goods Sold | 294.96M | 287.23M | 270.95M | 237.71M | 201.71M |
| COGS % of Revenue | - | 29.89% | 35.1% | 38.69% | 43.12% |
| Gross Profit | 719.13M | 673.74M | 500.93M | 376.63M | 266.02M |
| Gross Margin % | 70.91% | 70.11% | 64.9% | 61.31% | 56.88% |
| Gross Profit Growth % | - | 34.5% | 33% | 41.58% | - |
| Operating Expenses | 862.84M | 836.58M | 730.88M | 559.49M | 487.88M |
| OpEx % of Revenue | - | 87.06% | 94.69% | 91.07% | 104.31% |
| Selling, General & Admin | 530.65M | 512.25M | 420.39M | 327.53M | 306.25M |
| SG&A % of Revenue | - | 53.31% | 54.46% | 53.31% | 65.47% |
| Research & Development | 321.47M | 302.59M | 263.05M | 203.53M | 158.87M |
| R&D % of Revenue | - | 31.49% | 34.08% | 33.13% | 33.97% |
| Other Operating Expenses | 2M | 21.74M | 47.44M | 28.43M | 22.76M |
| Operating Income | -143.7M | -162.84M | -229.95M | -182.86M | -221.86M |
| Operating Margin % | -14.17% | -16.95% | -29.79% | -29.77% | -47.43% |
| Operating Income Growth % | - | 29.19% | -25.75% | 17.58% | - |
| EBITDA | -76.39M | -79.64M | -149.73M | -101.88M | -164.2M |
| EBITDA Margin % | -7.53% | -8.29% | -19.4% | -16.58% | -35.11% |
| EBITDA Growth % | 69.18% | 46.81% | -46.98% | 37.96% | - |
| D&A (Non-Cash Add-back) | 63.24M | 83.19M | 80.22M | 80.99M | 57.65M |
| EBIT | -127.47M | -149.89M | -221.26M | -174.57M | -228.04M |
| Net Interest Income | 12.69M | 12.05M | -6.75M | -9.37M | -52.92M |
| Interest Income | 18.07M | 19.28M | 8.77M | 7.07M | 1.62M |
| Interest Expense | 5.38M | 7.23M | 15.52M | 16.44M | 54.54M |
| Other Income/Expense | 10.85M | 5.72M | -6.82M | -8.14M | -60.72M |
| Pretax Income | -132.85M | -157.11M | -236.78M | -191.01M | -282.58M |
| Pretax Margin % | -13.1% | -16.35% | -30.68% | -31.09% | -60.41% |
| Income Tax | 3.46M | 2.74M | 2.32M | 4.14M | -13.06M |
| Effective Tax Rate % | -2.6% | -1.74% | -0.98% | -2.17% | 4.62% |
| Net Income | -136.31M | -159.85M | -239.09M | -195.15M | -269.52M |
| Net Margin % | -13.44% | -16.63% | -30.98% | -31.76% | -57.62% |
| Net Income Growth % | 40.59% | 33.14% | -22.52% | 27.6% | - |
| Net Income (Continuing) | -136.31M | -159.85M | -239.09M | -195.15M | -269.52M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.43 | -1.73 | -8.53 | -2.93 | -3.44 |
| EPS Growth % | 73.21% | 79.72% | -191.13% | 14.83% | - |
| EPS (Basic) | - | -1.73 | -8.53 | -2.93 | -3.44 |
| Diluted Shares Outstanding | 95M | 94.11M | 42.15M | 82.36M | 82.36M |
| Basic Shares Outstanding | 95M | 94.11M | 42.15M | 82.36M | 82.36M |
| Dividend Payout Ratio | - | - | - | - | - |
Persistent Operating Margin Deficit
According to the latest quarterly financial data, ServiceTitan maintained a 24.6% year-over-year revenue growth rate, suggesting that the company continues to successfully capture market share within the residential service contractor vertical despite the increasing maturity of its core HVAC and plumbing customer base.
The consistent revenue expansion appears to be driven by the successful attachment of high-value modules and fintech services to the existing customer base. Investors should monitor whether this growth trajectory can be sustained as the company expands into secondary trades where the competitive landscape may be more fragmented.
As reported in recent income statements, ServiceTitan has achieved a gross margin of 72.1%, representing a notable improvement from the 61.9% levels observed in late 2024, which suggests increasing operational efficiency in delivering its integrated software and payment processing services to its core customer base.
This margin expansion indicates that the company is likely benefiting from economies of scale within its cloud infrastructure and payment processing layers. Continued improvement in this metric is essential to offset the high fixed costs associated with R&D and customer acquisition.
Based on the provided financial figures, ServiceTitan's operating margin of -9.6% in 2027Q1 indicates that while the company is narrowing its losses, it has yet to achieve the operating leverage necessary to scale operating income faster than its substantial investment in sales and marketing.
The persistent negative operating margin suggests that the company remains in a heavy investment phase to secure its market position. Investors should evaluate whether the current pace of SG&A spending is yielding sufficient long-term customer lifetime value to justify the ongoing operational burn.
Analysis of the reported income statements reveals that stock-based compensation remains a significant factor, with $54.6 billion recorded in 2027Q1, which complicates the assessment of true GAAP profitability and suggests that reported net income figures may not fully reflect the underlying cash-based operational performance.
The reliance on equity-based incentives warrants further investigation to determine the extent to which these costs dilute shareholder value. A clearer picture of the company's path to profitability will require distinguishing between non-cash compensation expenses and the core cash-generating capabilities of the business.
While revenue growth remains robust, the company's reliance on fintech-related transaction fees may introduce risks of margin compression if competitive pressures force a reduction in take rates or if the mix shifts toward lower-margin services, as suggested by the historical volatility in quarterly operating margins.
Short-term investors should be wary of the potential for cyclicality in the residential services market to impact transaction volumes. If the company's growth is increasingly tied to discretionary consumer financing, any macro-driven slowdown in high-ticket repairs could disproportionately impact the top-line and profitability metrics.
Quick answers to the most common questions about buying TTAN stock.
For fiscal year 2026, ServiceTitan, Inc. (TTAN) reported total revenue of $961.0M. This represents a 105.5% increase compared to $467.7M in 2023.
ServiceTitan, Inc. (TTAN) reported a net loss of $159.9M for the fiscal year ending 2026.
ServiceTitan, Inc. (TTAN) reported an operating income of $-162.8M, resulting in an operating profit margin of -16.9%. This margin reflects the operational efficiency of the business before interest and taxes.
ServiceTitan, Inc. (TTAN) generated $673.7M in gross profit for the year, representing a gross profit margin of 70.1%. This demonstrates the company's core pricing power and production efficiency.