ServiceTitan (TTAN) Financials

ServiceTitan’s financial profile is improving, but the company remains unprofitable. Revenue reached $254.0 million in Q4 fiscal 2026, up 21.4% from $209.3 million in Q4 fiscal 2025. Revenue increased from $170.3 million in Q1 fiscal 2025 to between $242 million and $269 million in each quarter of fiscal 2026, indicating strong top-line expansion despite some quarterly volatility.

Gross profit growth has also been favorable. Q4 fiscal 2026 gross profit was $177.7 million, compared with $138.2 million a year earlier. Gross margin improved to approximately 70.0% from 66.0%, although margins have gradually declined from roughly 72.1% in Q1 fiscal 2026 as cost of revenue increased faster than revenue in recent quarters.

Operating losses have narrowed significantly from the prior year. The Q4 fiscal 2026 operating loss was $42.7 million, compared with a $99.9 million loss in Q4 fiscal 2025. However, operating expenses remained elevated at $220.3 million, or approximately 87% of revenue. Research and development, marketing, and selling, general and administrative costs continue to consume most of the company’s gross profit.

ServiceTitan has generated positive operating cash flow in three consecutive fiscal 2026 quarters after reporting negative operating cash flow in Q1. Q4 operating cash flow was $40.6 million, while Q2 and Q3 produced $40.3 million and $43.8 million, respectively. This is a positive sign, although cash generation has been supported substantially by noncash adjustments while net income remains negative.

• Revenue growth remains strong: Q4 fiscal 2026 revenue increased 21.4% year over year, and quarterly revenue has expanded substantially from fiscal 2025 levels.
• Gross profitability is improving: Q4 gross profit rose 28.6% year over year, while gross margin increased to approximately 70.0% from 66.0%.
• Operating losses are narrowing: The Q4 operating loss improved by approximately $57.2 million from the prior-year quarter, suggesting better operating leverage despite continued investment.
• Operating cash flow has turned consistently positive: ServiceTitan generated more than $40 million of operating cash flow in each of Q2, Q3, and Q4 fiscal 2026.
• Liquidity is strong: The Q3 fiscal 2026 balance sheet showed $493.2 million of cash and equivalents versus $104.7 million of total debt, providing flexibility to fund operations and investments.
• Short-term financial risk appears manageable: Q3 current assets of $644.0 million substantially exceeded current liabilities of $155.6 million.
• Cash flow is affected by noncash items: Q4 operating cash flow exceeded the $41.7 million net loss partly because of $61.9 million in noncash adjustments, so investors should monitor whether cash generation remains strong as the business approaches profitability.
• Cash balances may fluctuate: Q4 fiscal 2026 financing outflows of approximately $99.9 million, including $106.2 million of debt repayment, caused cash to decline by $64.5 million during the quarter.
• ServiceTitan remains unprofitable: The company reported a $41.7 million consolidated net loss and negative diluted earnings per share of $0.45 in Q4 fiscal 2026.
• Operating expenses remain heavy: Q4 operating expenses were $220.3 million, exceeding gross profit by $42.7 million. Marketing and research and development spending each exceeded $73 million during the quarter.

The balance sheet is considerably stronger than the historical fiscal 2025 balance sheet, which included negative common equity and a large redeemable noncontrolling interest. By Q3 fiscal 2026, ServiceTitan reported $1.50 billion of common equity and only $311.7 million of total liabilities. Still, goodwill and intangible assets totaled approximately $1.05 billion, or nearly 58% of total assets, leaving the company exposed to potential impairment charges if growth expectations weaken.

Overall, the statements show a high-growth software company moving toward better cash generation and narrower operating losses, but not yet toward sustained GAAP profitability. Investors should focus on whether revenue growth can remain above 20%, whether gross margins stabilize, and whether operating expenses begin growing more slowly than revenue.