ServiceTitan, Inc. Q1 FY2026 earnings call

• Growth formula: Deliver real ROI to customers, enabling their business growth and driving more revenue for ServiceTitan.
• Customer stories: A1 Garage Door and Guild Garage have seen significant success using ServiceTitan, with A1 doubling revenue and Guild growing rapidly.
• Focus areas: Execution against enterprise, Pro product adoption, commercial, and roofing priorities; several large accounts went live this quarter.
• Product updates: Enhancements in invoicing, dispatch crew scheduling, field assist technology, and Contact Center Pro virtual agents; new AI-native products ramping well.

In Fiscal First Quarter 2026, ServiceTitan reported total revenue of $215.7 million, up 27% year-over-year. Subscription revenue was $162.7 million, up 29% year-over-year, and usage revenue was $45.3 million, up 22% year-over-year. Platform gross margin was 79.7%, an improvement of over 300 basis points year-over-year. Total gross margin was 73.6%, up 390 basis points year-over-year. Operating income was $16.2 million, resulting in a record operating margin of 7.5%, an improvement of 560 basis points year-over-year.

• Q2 2026: Expected total revenue in the range of $228 million to $230 million and operating income in the range of $17 million to $18 million.
• FY 2026: Expected total revenue in the range of $910 million to $920 million and operating income in the range of $54 million to $59 million. Acknowledged seasonality and weather impact on GTV.

• Macro factors such as tariffs and supply chain inflation could affect customers' growth and GTV; ServiceTitan forecasts prudently, especially on GTV.

Q: Congratulations on a fantastic start to the fiscal year. One more of a longer term maybe in the context of tariffs, whatnot. If the tariffs do go through, I'm curious to see how that would perhaps positively and also negatively affect the business.

A: Kash, it's always a pleasure to hear from you, and thank you all for all your continued coverage and support. I think -- most importantly, our customers have proven the ability to execute through various business environments. And this resilience is further enabled by ServiceTitan. There are compound factors from tariffs, which could affect our customers' growth. It's possible that we see a return of supply chain inflation. Although I would say in the past, our customers have proven their ability to pass through rising costs. But I think because the macro is outside of our control, we elect to forecast pretty prudently, especially on GTV.

Q: Congrats on a strong quarter. I was hoping you could shed some light on the stacking S-curve strategy. Should we be thinking about entering new trades, new market segments rolling out new Pro products like on a planned or consistent basis to drive durable growth, what would you change from sort of that line of thinking? Anything else that you'd add there?

A: Yes. For us, we're big proponents of focus, and we live in a very target-rich environment. So we try our best to stay on the ball on what the priorities are. And so today, we're focused on enterprise, commercial, Pro and roofing. And those are the S curves that are attracting kind of the primary source of attention for us. As we mature in these focus areas, there's a pretty long tail of S curves that are beyond that. But right now, we should be focused on those priorities.

Q: Dave, you touched on it a bit, but maybe just remind us in more detail what you typically see from a seasonal perspective in the first half and the visibility you have into various scenarios that could play out. And maybe as a second part, just touch on from the broader team, what you're seeing in terms of Pro product attach, if there are certain product areas you'd point us towards and how we should think about the contribution from those products over time?

A: Yes. I'll hit the first point pretty quickly here. GTV is a bigger factor in Q2 than any other quarter in the year. It's a seasonally strong period for our customers, especially in trades like landscape, pest, HVAC and others. This makes Q2 particularly sensitive to weather, both in terms of absolute temperature but also degree of temperature change because usage is a larger portion of our mix in Q2, there's a slightly wider range of possible outcomes. This year ago period I talked about in the prepared remarks, was pretty hot. And consistent with our approach to be prudent forecasting GTV internally, this is already captured in the guidance. And so I think that's the answer on GTV and the seasonality. The only other part I'd say in the first half is bonuses are paid in Q1 and so as you saw on the free cash flow change in Q1, that's mostly driven by bonus payment. Michael, could you repeat the Pro part of the question?

Q: Nice quarter here. I guess, my question involves moving into new trades. We hosted a customer call with someone from the glass industry, which is not a stated trade that you all are in, but this customer is going to roll your platform out to, I believe, 800 different locations over a period of time, which is kind of fascinating. It's not a stated trade that you're in, but they're able to leverage the platform as is. But how do you think about other opportunities or other trades that you don't have this stated kind of target set of use cases for. Are there more that you can move into there or apply to maybe that you are today? Or just trying to understand if there's more opportunities like that.

A: Sure, absolutely. My assumption is that there's a broader set of verticals that could be using ServiceTitan than there is today. The challenge is because of the end-to-end scope, it's not always obvious who's going to be a fantastic fit and who's going to find certain gaps in their workflow where it's a problem. So our current approach is to spend most of our energy proactively on areas that we're focusing on, along the lines that I mentioned earlier. And so that's where most of our energy goes into. Now when we have an existing relationship and there's a new trade or there's something that comes up that's opportunistic and we have a high degree of conviction that we can make those successful. Then we may take those on. But generally, we try to stay kind of focused on where we're prioritizing debt resources on and making a concentrated effort versus chasing opportunistic deals in kind of areas that may not be in the focus area.