ServiceTitan Reports Impressive Q3 2025 Revenue Surge

ServiceTitan Financial Overview

ServiceTitan (NASDAQ: TTAN), a leading software platform designed for trade businesses, has released its financial results for the recent fiscal third quarter. The company reported a total revenue of $199.3 million, representing a remarkable increase of 24% compared to the previous year. This growth in revenue underscores the strength and effectiveness of ServiceTitan's business model and the expanding adoption of its innovative solutions within the industry.

Leadership Insights

Ara Mahdessian, the co-founder and CEO of ServiceTitan, expressed his enthusiasm for the company's trajectory, stating, "Building a generational business that is the operating system for the trades is our life’s work. The achievements we've made thus far are exciting, yet the future holds even greater potential for us." His sentiments reflect a confidence in the strategic direction of the company and its ability to capitalize on market opportunities.

Operational Efficiency and Product Adoption

Co-founder and President, Vahe Kuzoyan, echoed this positive outlook in his comments. He noted, "We are pleased to deliver financial performance ahead of the midpoint of our flash results. The expansion of our customer base and the strong early adoption of our new products, Sales Pro and Contact Center Pro, demonstrate our clients' growing trust in our platform." Such product adoption is crucial as it indicates the effectiveness of ServiceTitan's innovations in meeting the needs of its users.

Key Financial Highlights

The financial highlights from ServiceTitan's announcement are particularly noteworthy:

• Total Revenue: Increased by 24% year-over-year to $199.3 million.
• Platform Revenue: Rose by 26% year-over-year to reach $191.2 million.
• Operations Loss: GAAP loss from operations totaled $44.0 million for this quarter, compared to a loss of $36.1 million for the same period last year.
• Net Loss: GAAP net loss was reported at $46.5 million, up from $39.7 million the previous year.
• Cash Reserves: Cash and cash equivalents stood at $133.8 million as of the end of the quarter.
• Net Cash from Operations: Generated $15.5 million, a substantial increase from $0.4 million year-over-year.
• Free Cash Flow: Non-GAAP free cash flow reached $10.6 million, a significant improvement from a negative cash flow of $6.2 million last year.

Business and Operational Highlights

Additional noteworthy points from the report include:

• Net dollar retention exceeded 110% for this quarter, further reflecting customer satisfaction and loyalty.
• The Gross Transaction Volume (GTV) reached $17.8 billion, representing a 20% increase year-over-year.

Future Financial Outlook

Looking ahead, ServiceTitan has outlined its expectations for the forthcoming fiscal fourth quarter and the full fiscal year:

• Total revenue is projected to fall between $199.0 million and $201.0 million for Q4.
• For the entire fiscal year 2025, total revenue is expected to be in the range of $761.6 million to $763.6 million.
• Non-GAAP operating income is projected between $3.0 million to $4.0 million for Q4 and between $21.4 million to $22.4 million for fiscal year 2025.

Investor Engagement Opportunities

ServiceTitan plans to engage with its investors to discuss these results in more detail during an upcoming conference call and webcast. The event will take place at 2:00 p.m. Pacific Time, accessible through the company’s investor relations website. This initiative underscores ServiceTitan's commitment to transparency and communication with its shareholders.

Conclusion

Overall, ServiceTitan's third-quarter performance indicates a solid foundation for continued growth and innovation in the trades industry. Its strategic focus on improving customer experience and operational efficiency positions it uniquely to sustain its upward trajectory. With a solid financial standing, significant cash flow generation, and a growing customer base, ServiceTitan is set to further solidify its market position in the coming months.

Frequently Asked Questions

What were ServiceTitan's total revenues for Q3 2025?

ServiceTitan reported total revenues of $199.3 million for the third quarter of fiscal 2025, a 24% increase from the previous year's results.

How did ServiceTitan's net loss change compared to last year?

The GAAP net loss for Q3 2025 was $46.5 million, compared to $39.7 million for Q3 2024.

What factors contributed to the increase in revenues?

The growth in revenues is primarily attributed to the strong performance of the platform and new product offerings, such as Sales Pro and Contact Center Pro, which have seen early adoption by customers.

What is the forecast for ServiceTitan's total revenue for the full fiscal year 2025?

ServiceTitan expects total revenue for fiscal 2025 to be in the range of $761.6 million to $763.6 million.

When will the conference call to discuss the financial results take place?

The conference call is scheduled for 2:00 p.m. Pacific Time. Investors can access it via ServiceTitan's investor relations website.

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