ServiceTitan reported fiscal third‑quarter 2026 results for the period ending Oct. 31, 2025, posting total revenue of $249.2 million, a 25 % year‑over‑year increase driven by 26 % growth in subscription revenue and 24 % growth in usage revenue. The company’s net dollar retention remained above 110 %, underscoring continued customer expansion.
Non‑GAAP earnings per share rose to $0.24, beating the consensus estimate of $0.15 by $0.09 or 60 %. The beat was largely attributable to disciplined cost management and a favorable mix shift toward higher‑margin subscription contracts, which offset the impact of a 150‑basis‑point compression in gross transaction volume expected in Q4.
Gross margin expanded to 74.3 %, up 390 basis points from the prior year, while platform gross margin climbed to 80.2 %, a 310‑basis‑point gain. The margin lift reflects both pricing power in the subscription segment and the successful reallocation of operating expenses toward higher‑margin product development.
Management guided for Q4 revenue of $244 million to $246 million and operating income of $16 million to $17 million, slightly above the previous guidance range. For the full fiscal year, ServiceTitan projected total revenue of $951 million to $953 million and operating income of $83 million to $84 million, a modest upward revision that signals confidence in sustained growth despite a one‑day reduction in Q4 business days.
CEO Ara Mahdessian highlighted the company’s progress as a public entity, noting that the quarter’s results validate the “operating system for the trades” strategy and the expanding role of AI‑driven solutions. CFO Dave Sherry emphasized that the strong fintech product utilization contributed to usage revenue growth, while acknowledging the upcoming headwind of a shorter Q4 calendar.
The results were met with a positive market reaction, with analysts citing the earnings and revenue beat, margin expansion, and reassuring guidance as key drivers of investor confidence.
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