ServiceTitan shares edge higher after beat on Q3 earnings

Investing.com -- ServiceTitan Inc (NASDAQ: TTAN) shares rose 2.5% in after-hours trading Thursday after the vertical SaaS provider for trades professionals delivered better-than-expected third-quarter earnings and lifted its revenue guidance for the year. The company also posted double-digit year-over-year growth across several key operational metrics, underscoring strong adoption of its core software and FinTech suite.

For the fiscal third quarter ended October 31, ServiceTitan reported adjusted earnings per share of $0.24, surpassing analyst estimates of $0.15. Revenue reached $249.2 million, a 25% increase from $199.3 million a year ago and ahead of the $238.3 million consensus forecast.

Gross transaction volume processed through the platform climbed to $21.7 billion, representing a 22% increase and reflecting continued expansion in payments and other integrated FinTech features. Platform revenue, which includes subscription and usage-based income, totaled $239.6 million, up from $191.2 million the prior year.

Adjusted operating income came in at $21.5 million, yielding a margin of 8.6%, a significant improvement compared to just 0.8% margin in the same period last year. Free cash flow also strengthened materially, reaching $37.7 million compared to $10.6 million a year ago, signaling improving operational leverage.

“I am deeply humbled by how much progress we’ve made during our first year as a public company,” said Ara Mahdessian, Co-Founder and CEO. “While we’ve come a long way together, I have never been more confident that our opportunity to build the operating system for the trades is only just beginning.”

ServiceTitan highlighted a net dollar retention rate above 110%, suggesting solid customer engagement and upsell performance across its HVAC, plumbing, and electrical segments. Gross margin performance and overall customer growth figures were not disclosed in detail but implied strong momentum given the positive cash flow and earnings results.

Looking ahead, the company guided to fourth quarter revenue between $244 million and $246 million, above consensus estimates of $242.6 million. Full-year 2026 revenue is now expected to land between $951 million and $953 million, up from prior consensus of $938.6 million, indicating confidence in sustaining demand despite macroeconomic headwinds.

Investors appeared buoyed by the company’s outperformance and profit path as ServiceTitan builds scale within a niche trades vertical that has historically lacked modern software tools. With improved margins, growing transaction volume, and a recurring revenue model, the company seems to be consolidating its position.