ServiceTitan, Inc. Q4 FY2025 earnings call

• Ara Mahdessian highlighted that fiscal year 2025 was transformative, with 26% revenue growth and being free cash flow positive. The mission is to create value for customers, driving growth through subscription and usage revenue. Focus areas for fiscal 2026 include enterprise capabilities, Pro-product adoption, commercial expansion, and roofing growth.
• Vahe Kuzoyan expanded on the four priorities: enterprise with focus on large customer tech stack consolidation using standard operating guidelines and automation; Pro products with acceleration in penetration by improving functionality and investing in new products; commercial with development of end-to-end project management and dedicated CRM for specialty trade subcontractors; roofing with partnerships like GAF and SRS Distribution, and technology investments in insurance reimbursement and workflow automation.

In fiscal year 2025, ServiceTitan delivered $772 million in total revenue, growing 26% year-over-year, with subscription revenue growing 28% year-over-year. For Q4 2025, total revenue was $209.3 million, up 29% year-over-year. GTV was $17 billion, up 26% year-over-year. Platform gross margin was 76.7%, an improvement of 30 basis points year-over-year. Total gross margin was 70.2%, up 80 basis points year-over-year. Operating income was $6.9 million, leading to an operating margin of 3.3%, an improvement of 200 basis points year-over-year. Q4 free cash flow was $10.8 million, up from negative $2.2 million in the prior year's Q4.

For the first quarter of fiscal 2026, total revenue is expected in the range of $207 million to $209 million, and operating income is expected in the range of $12 million to $13 million. For the full fiscal year 2026, total revenue is expected in the range of $895 million to $905 million, and operating income is expected in the range of $48 million to $53 million. The long-term non-GAAP operating margin target is 25%.

• Macro-economic uncertainties that could impact average ticket sizes. - Weather patterns affecting GTV. - External factors that may influence the performance of the business, though no significant impacts observed yet.

Q: Michael Turrin asked about guidance and AI impacts.

A: Dave Sherry discussed guidance prudence and Vahe Kuzoyan talked about near-term AI impacts from pure-play AI products like Dispatch Pro, Ads Optimizer, and Sales Pro