ServiceTitan Reports Strong Q2 Results but Faces Near-Term Revenue Headwinds
On September 8, ServiceTitan (NASDAQ:TTAN) reported strong fiscal second-quarter results with a 21% year-over-year revenue increase to $292.8 million and record non-GAAP free cash flow of $50.5 million. The company also improved its non-GAAP operating margin to 15.2%. A key focus was the rapid adoption of ServiceTitan's AI-powered Max package, with locations more than doubling during the quarter. Despite these positive results, GTV growth slowed from 23% in Q1 to 17%, attributed mainly to lower lead volumes among customers and a strategic shift toward its Max offering. This focus is expected to create near-term revenue headwinds of $4 million to $5 million due to changes in subscription recognition timing and the absence of onboarding fees for transitioning users. Analysts remain largely positive, with 88% rating ServiceTitan as a Buy and a median price target of $103. However, short interest remains high at 15.34%, reflecting some market skepticism.
Tickers: $TTAN
Topics: AI adoption free cash flow GTV slowdown revenue growth strategic focus