ServiceTitan Reports Q2 Revenue Growth of 21% Amid Strategic Shift to AI-Driven Max Platform
ServiceTitan Inc. (NASDAQ:TTAN) reported a strong fiscal second-quarter performance, with revenue rising 21% year over year to $292.8 million and free cash flow increasing by 47% to a record $50.5 million. The company's operating margin expanded to 15.2%, driven primarily by growth in subscription and usage-based revenues. A key focus of the earnings call was ServiceTitan’s AI-powered Max platform, which saw adoption more than double during Q2. Management now expects over 700 locations using Max by fiscal year-end. The company is shifting strategic priorities to prioritize development of this platform and its internal 'Software Factory' initiatives while slowing expansion into new trades. Despite a moderation in gross transaction value (GTV) growth to 17%, ServiceTitan maintained its full-year revenue outlook for fiscal 2027. However, the firm acknowledged that Max's billing ramp-up and free onboarding will create an estimated $4 million to $5 million headwind in revenue over the remainder of the year.
Tickers: $TTAN
Topics: ai_platform_adoption free_cash_flow operating_margin revenue_growth