ServiceTitan, Inc. (TTAN)

Price$89.05Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkThe shares look expensive because today’s price assumes years of strong growth and much higher cash profits.

The equity value is about $9.6 billion and enterprise value, the business value after subtracting roughly $422 million of net cash, is about $9.2 billion. Against about $1.01 billion of trailing revenue, that is roughly 9 times sales. Using the supplied cash history, trailing operating cash less listed capital spending is about $119 million, putting the equity near 81 times that cash measure. The company’s stricter free cash flow measure, meaning cash left after running and investing in the business, pushes the multiple closer to 100 times.

Big pictureGrowth remains strong, but management’s own outlook points to a meaningful slowdown this year.

Revenue rose 24.5% in fiscal 2026 and 24.6% in the latest quarter, while gross profit as a share of revenue improved from 64.9% to 70.1% for the year and reached 72.1% in the quarter. The operating loss also narrowed sharply. However, full-year fiscal 2027 revenue guidance of $1.13-$1.14 billion implies only about 18% growth. Results also have real seasonality: hot summer weather boosts customer activity and usage-based revenue, while first-quarter bonus payments typically depress cash flow. Strong growth remains visible, but it is not smooth.

Business strengthThe balance sheet is strong, but heavy share-based pay makes the cash improvement less clean.

ServiceTitan ended April with about $422 million of cash and no debt, while current assets were more than four times current liabilities. That provides substantial financial flexibility. Existing customers also collectively spent more year over year, with net dollar retention above 110%. The offset is dilution. Share-based employee compensation was $197 million in fiscal 2026 and $54.6 million in the latest quarter; weighted-average shares rose about 5% year over year. More than $600 million of disclosed unrecognized share-based compensation also remains to be recorded over future periods.

What could change the storyThe valuation works only if growth stays high and cash margins expand far beyond today’s level.

The strongest bull case is successful expansion of Max, Pro products and larger customers: Max locations more than doubled in the first quarter, and management expected another doubling in the second. The bear case is growth slowing toward roughly 18% while share-based pay remains near 20% of revenue. As a simple valuation test, paying 30 dollars for each dollar of annual free cash flow would require roughly $320 million of yearly free cash flow to support today’s equity value, nearly three times the supplied trailing measure. Faster growth and lower dilution could close that gap.

AI: News

First-quarter outlook raisedFirst-quarter results beat expectations and management raised its full-year sales and profit outlook.

On June 4, ServiceTitan reported first-quarter revenue of $268.8 million, up 25%, and cut its operating loss almost in half. Management raised full-year revenue guidance from $1.11-$1.12 billion to $1.13-$1.14 billion and lifted adjusted operating-income guidance from $128-$133 million to $142-$147 million. Barron’s reported the shares rose 7.4% the next session even as the Nasdaq fell 1.2%. The mechanism is straightforward: stronger expected growth and margins increase the future cash investors can plausibly value.

Fiscal 2026 cash improvementFiscal 2026 showed sharply better cash generation and set the first growth expectations for the new year.

On March 12, ServiceTitan reported fiscal 2026 revenue of $961.0 million, up 24%, and company-defined free cash flow of $85.1 million versus $15.5 million a year earlier. Active customers reached about 10,800 from roughly 9,500, while gross customer retention remained above 95%. Management initially guided fiscal 2027 revenue to $1.11-$1.12 billion. The event established the baseline for the profitable-growth expectations later upgraded in June; no comparably reliable evidence supported attribution of a specific same-day stock move.

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Revenue

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2024

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2026

Net income

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Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2026	2025	2024	2023
Revenue	$961.0M	$771.9M	$614.3M	$467.7M
Gross profit	$673.7M	$500.9M	$376.6M	$266.0M
Gross margin	70.11%	64.90%	61.31%	56.88%
Research & development	$302.6M	$263.1M	$203.5M	$158.9M
Operating expenses	$842.9M	$730.9M	$559.5M	$487.9M
Operating income	−$169.2M	−$230.0M	−$182.9M	−$221.9M
Operating margin	−17.61%	−29.79%	−29.77%	−47.43%
EBITDA	−$86.0M	−$149.7M	−$101.9M	−$164.2M
EBITDA margin	−8.95%	−19.40%	−16.58%	−35.11%
Net income	−$159.9M	−$239.1M	−$195.1M	−$269.5M
Net profit margin	−16.63%	−30.98%	−31.76%	−57.62%
Basic EPSper basic share	-$1.73	-$8.53	-$7.24	-$9.31
Diluted EPSper diluted share	-$1.73	-$8.53	-$7.24	-$9.31

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Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)366$351.96M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 29, 2026Form 4	Deeter Byron BDirector,TenPercentOwner	SellClass A Common Stock · indirect	0	$0.00	$0.00	0
Jun 26, 2026Form 4	Deeter Byron BDirector,TenPercentOwner	SellClass A Common Stock · indirect	0	$0.00	$0.00	0
Jun 24, 2026Form 4	Deeter Byron BDirector,TenPercentOwner	SellClass A Common Stock	8.8K	$65.26	$577.2K	4.9K
Jun 23, 2026Form 4	Deeter Byron BDirector,TenPercentOwner	SellClass A Common Stock	8.8K	$63.35	$560.3K	13.8K
Jun 23, 2026Form 4	Griffith William J.G.Director,TenPercentOwner	SellClass A Common Stock · indirect	791	$64.18	$50.8K	594.4K

Review ownership filings at SEC.gov ↗

Community posts

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@tickerstat4 days ago
ServiceTitan grows revenue 21% and outlines next-quarter outlook
ServiceTitan ($TTAN) reported fiscal second-quarter revenue of $292.8 million, up 21%, while its non-GAAP operating profit increased to $44.4 million from $29.2 million. Free cash flow on the company’s non-GAAP measure reached $50.5 million ...
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ServiceTitan, Inc. (TTAN)

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Financial statements

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ServiceTitan grows revenue 21% and outlines next-quarter outlook