TTAN

The upcoming report from ServiceTitan Inc. (TTAN) is expected to reveal quarterly earnings of $0.36 per share, indicating an increase of 9.1% compared to the year-ago period. Analysts forecast revenues of $285.14 million, representing an increase of 17.8% year over year. Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. Given this perspective, it's time to examine the average forecasts of specific ServiceTitan Inc. metrics that are routinely monitored and predicted by Wall Street analysts. Analysts expect 'Revenue- Platform' to come in at $275.71 million. The estimate indicates a year-over-year change of +18.5%. The collective assessment of analysts points to an estimated 'Revenue- Professional services and other' of $9.43 million. The estimate suggests a change of +0.4% year over year. The consensus among analysts is that 'Revenue- Platform- Subscription' will reach $208.11 million. The estimate indicates a change of +19.1% from the prior-year quarter. It is projected by analysts that the 'Revenue- Platform- Usage' will reach $67.69 million. The estimate indicates a change of +16.8% from the prior-year quarter. Analysts' assessment points toward 'Gross Transaction Volume' reaching $25.90 billion. Compared to the current estimate, the company reported $22.90 billion in the same quarter of the previous year. The combined assessment of analysts suggests that 'Non-GAAP gross profit- Platform' will likely reach $223.22 million. The estimate is in contrast to the year-ago figure of $187.75 million. View all Key Company Metrics for ServiceTitan Inc. here>>> ServiceTitan Inc. shares have witnessed a change of +10.7% in the past month, in contrast to the Zacks S&P 500 composite's +2% move. With a Zacks Rank #2 (Buy), TTAN is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ServiceTitan Inc. (TTAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MongoDB, Inc. MDB delivered second-quarter fiscal 2027 non-GAAP earnings of $1.90 per share, which rose 90% year over year and topped the Zacks Consensus Estimate by 18.75%.Total revenues increased 30.5% year over year to $771.8 million and surpassed the consensus estimate by 5.2%. Results benefited from strength among large enterprise customers, solid Atlas consumption and broad Enterprise Advanced demand.Total company net ARR expansion improved to 122% from 119% a year ago and 121% in the prior quarter. Subscription revenues rose 30.5% year over year to $747.1 million, while services revenues increased 29.3% to $24.6 million. The subscription business remained the primary contributor to the top line. MongoDB, Inc. price-consensus-eps-surprise-chart | MongoDB, Inc. Quote Atlas-related revenues totaled $565.9 million, up 28.9% from $439.0 million a year ago. MongoDB Enterprise Advanced and other revenues reached $181.2 million, rising 35.9% from $133.4 million, reflecting broad strength across financial services, the public sector and technology. MongoDB ended the quarter with more than 70,600 customers, up from 59,900 a year ago, after adding approximately 2,900 customers sequentially. Atlas customers increased to more than 69,300 from 58,500 in the prior-year period.Customers generating at least $100,000 in annual recurring revenues rose 17% year over year to 2,999. Among Atlas customers in this cohort, 48% used two or more platform features, up from 42%, driven largely by Vector Search and text search adoption. Remaining performance obligations climbed 91% to $1.52 billion. In the fiscal second quarter, MongoDB’s non-GAAP gross profit increased to $585.7 million, with the non-GAAP gross margin expanding to 76% from 74% a year ago. Subscription gross margin was 78.3%, up about 70 basis points, primarily reflecting the higher Enterprise Advanced revenue mix.Non-GAAP sales and marketing expenses rose 6.9% year over year to $215.7 million. Research and development expenses increased 30.7% to $137.4 million, while general and administrative expenses advanced 9.6% to $46.7 million.Non-GAAP income from operations rose to $185.9 million from $86.8 million. The corresponding operating margin expanded to 24% from 15%, underscoring stronger operating leverage alongside the quarter's revenue growth. As of July 31, 2026, MongoDB had cash, cash equivalents and short-term investments of $2.4 billion compared with $2.4 billion as of April 30, 2026.During the quarter, the company allocated $100 million toward share repurchases and $59 million to settle taxes on employee restricted stock units.Operating cash flow was $141.9 million in the fiscal second quarter compared with $201.6 million reported in the prior quarter.Free cash flow during the quarter was $137.6 million compared with $197.5 million in the prior quarter. For the third quarter of fiscal 2027, MongoDB expects revenues of $756 million to $761 million. Non-GAAP income from operations is projected between $152 million and $156 million, while non-GAAP earnings are expected between $1.57 and $1.61 per share.For fiscal 2027, revenues are now anticipated between $2.99 billion and $3.03 billion, up from the prior $2.92-$2.96 billion range. Non-GAAP earnings are projected between $6.39 and $6.58 per share compared with the previous $5.95-$6.14 range. Management now expects Atlas growth of approximately 27% and Enterprise Advanced and other revenue growth of about 11% for the year. MongoDB currently carries a Zacks Rank #3 (Hold).Docusign DOCU, Micron Technology MU and ServiceTitan Inc. TTAN are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. DOCU, MU and TTAN each currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Docusign is slated to announce its second-quarter fiscal 2027 results on Sept. 3. Micron Technology is scheduled to report its fourth-quarter fiscal 2026 results on Sept. 30, while ServiceTitan is set to announce its second-quarter fiscal 2027 results on Sept. 8. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MongoDB, Inc. (MDB) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Docusign Inc. (DOCU) : Free Stock Analysis Report ServiceTitan Inc. (TTAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Affirm Holdings (AFRM) came out with quarterly earnings of $4.62 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1,300.00%. A quarter ago, it was expected that this operator of digital commerce platform would post earnings of $0.17 per share when it actually produced earnings of $0.3, delivering a surprise of +76.47%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Affirm Holdings, which belongs to the Zacks Internet - Software industry, posted revenues of $1.17 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.23%. This compares to year-ago revenues of $876.42 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Affirm Holdings shares have added about 2.7% since the beginning of the year versus the S&P 500's gain of 12.1%. While Affirm Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Affirm Holdings was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.33 on $1.16 billion in revenues for the coming quarter and $1.73 on $5.35 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, ServiceTitan Inc. (TTAN), has yet to report results for the quarter ended July 2026. The results are expected to be released on September 8. This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ServiceTitan Inc.'s revenues are expected to be $285.14 million, up 17.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report ServiceTitan Inc. (TTAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cellebrite DI Ltd. (CLBT) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -8.33%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.12, delivering a surprise of +9.09%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Cellebrite DI Ltd., which belongs to the Zacks Internet - Software industry, posted revenues of $131.14 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.3%. This compares to year-ago revenues of $113.28 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Cellebrite DI Ltd. shares have lost about 15.4% since the beginning of the year versus the S&P 500's gain of 13.2%. While Cellebrite DI Ltd. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Cellebrite DI Ltd. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $150.06 million in revenues for the coming quarter and $0.58 on $568.78 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, ServiceTitan Inc. (TTAN), is yet to report results for the quarter ended July 2026. The results are expected to be released on September 8. This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ServiceTitan Inc.'s revenues are expected to be $285.14 million, up 17.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cellebrite DI Ltd. (CLBT) : Free Stock Analysis Report ServiceTitan Inc. (TTAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ServiceTitan (TTAN) shares rose more than 4% on June 4 after the company reported strong fiscal first quarter 2027 results, with revenue up 25% from a year ago and ahead of Wall Street expectations. That move shows investors liked what they saw, especially as the company continues to add AI tools that help contractors run their businesses more effectively and improve profits. ServiceTitan’s own industry research shows that 74% of residential contractors see AI as important for improving efficiency and supporting execution-led growth. Early users are already seeing benefits, with 48% reporting higher productivity and 45% reporting time savings, while 73% said getting in early gives them a competitive edge. Ahead of Oracle Earnings, Here's What Barchart Data Says Comes Next for ORCL Stock Billionaire Jeff Bezos Says America Needs to ‘Fix It at the Root’ Like Amazon Does Instead of Picking Villains — Bottom 50% Should Pay ‘Zero’ Taxes JPMorgan Just Dramatically Reversed Course on Tesla Because TSLA Stock Has Massive Physical AI Potential Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. The same pattern is showing up on the commercial side, where AI adoption has more than doubled as businesses look for better ways to handle cost pressure and improve performance. With investors scanning for promising new names in the AI landscape beyond traditional tech leaders, could ServiceTitan be one of the more interesting long-term stories to watch? Glendale, California-based ServiceTitan delivers cloud-based software that helps home and commercial service contractors manage scheduling, dispatch, invoicing, and customer relationships.  TTAN shares are down 30.81% year-to-date and 30.87% over the past 52 weeks. This pricing is tied to an equity value of about $7.37 billion and a valuation profile that includes a 7.14 times price-to-sales (TTM) multiple versus a sector median of 3.75 times and a 4.73 times price-to-book (TTM) ratio versus a sector median of 4.21 times. Their most recent earnings report on April 26 showed revenue of $268.8 million, up 25% year-over-year (YOY). It highlighted subscription revenue of $202 million, a 24% increase, with growth driven by Pro, commercial customers, and the early lift from Max, the company’s AI-powered suite designed to automate workflows and enhance decision-making. The numbers also captured usage revenue of $58.5 million, up 29%, with fintech activity benefiting from stronger on-platform monetization. That combination fed into platform revenue of $260.6 million, up 25%, with professional services contributing $8.3 million and net dollar retention holding above 110%. Also, TTAN delivered an earnings surprise of 31.25%, with EPS coming in at -$0.11 versus a -$0.16 consensus estimate. TTAN’s profitability profile improved as platform gross margin reached 81.3%, up 160 basis points, and total gross margin moved to 75.3%, up 170 basis points. ServiceTitan translated that margin progress into non-GAAP operating income of $40.8 million and a 15.2% operating margin, a 770-basis-point improvement. The quarter closed with free cash flow at -$9.6 million versus -$22.3 million a year earlier. ServiceTitan’s recent product and business updates give investors a clearer picture of what is driving the story. Earlier in 2026, the company launched Accounts Payable Automation and expanded its fintech suite with Tap to Pay for mobile, AP workflows powered by AI, and integrated financing tools built into the main platform. The AP Automation tool connects bills to jobs, vendors, and purchase orders using three-way matching and OCR, which helps cut manual work and reduce errors in contractor back offices. Another key move highlights ServiceTitan’s ability to win larger customers and then scale with them. SPS PoolCare, described as the largest residential pool services platform in the U.S., decided to expand its enterprise technology platform using ServiceTitan. The deal covers more than 30 branch locations across five states and brings over 1,000 employees onto one software system. Also, the business is on track to complete more than 2,000,000 weekly recurring services in 2026. Leadership changes support the company’s next stage of growth. ServiceTitan recently appointed Abhishek “Abhi” Mathur as Chief Technology and Product Officer, placing him in charge of technology and product strategy across the company. He brings experience from Figma (FIG), Meta (META), and Microsoft (MSFT). His role includes speeding up product development and building what management has called an AI-driven operating system for the trades. ServiceTitan’s next earnings report is due on September 3 and will cover the quarter ending July 2026. For that quarter, the average earnings estimate is -$0.11 per share, compared with -$0.22 per share a year earlier. That points to an expected YOY improvement of about 50%, although the company is still not expected to be profitable yet. The near-term revenue outlook also matters here. For the fiscal second quarter 2027, management expects total revenue of $284 million to $286 million. On the sentiment side, the Street is firmly in the bullish camp for now. The consensus rating from 19 analyst opinions is a “Strong Buy.” Their average 12-month price target is $104.19, which suggests 42.8% upside. ServiceTitan looks like more than a one‑quarter story. Its strong revenue growth, better margins, growing use of its tools, and upbeat analyst targets all point to a stock that could keep drawing interest if the business keeps executing. The higher valuation does mean there is not much room for missteps. That still makes TTAN a name worth watching closely. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

ServiceTitan, Inc. TTAN reported its first-quarter fiscal 2027 earnings call to emphasize a sharper operating story than a simple revenue beat. Management framed the quarter around stronger customer ROI, faster rollout of Max and improving internal execution. That message came with better profitability and a higher full-year outlook. Non-GAAP earnings of 37 cents topped the Zacks Consensus Estimate of 28 cents by 32.14%, whereas revenues of $268.82 million beat the estimate of $255 million by 4.89%. ServiceTitan Inc. price-consensus-eps-surprise-chart | ServiceTitan Inc. Quote Co-founder and CEO Ara Mahdessian centered the call on ServiceTitan’s effort to become what he called an agentic operating system for the trades. Mahdessian tied that strategy to multi-year growth vectors and a push to improve organizational velocity. Mahdessian used customer examples to argue that Max is moving beyond feature bundling into workflow automation across lead generation, booking and field conversion. He said that capabilities introduced in the quarter included speed-to-lead, inbound call booking automation, auto inventory replenishment and invoice protection. That framing mattered because management repeatedly positioned Max as the next leg of platform value creation, rather than an add-on product cycle. The company’s commentary suggested that automation depth, not just seat growth, is becoming the key investor focus. President Vahe Kuzoyan said that the company is still executing against its established priorities in enterprise, commercial and roofing while building out Max. In commercial, Mahdessian pointed to invoicing agents, equipment systems and enhanced CRM capabilities, while roofing work remained focused on trade-specific and insurance workflows. Enterprise remained a standout. Kuzoyan said that ServiceTitan surpassed 2,000 customers with annualized billings above $100,000, and that cohort now accounts for more than 60% of annualized billings while remaining the fastest-growing segment. In the quarter, total revenues rose 25% year over year to $268.8 million. Platform revenues also increased 25% to $260.6 million. The gross transaction volume climbed 23% to $21.7 billion, giving management a financial backdrop that supported its more expansive product narrative. Kuzoyan said that ServiceTitan more than doubled the number of locations on Max in the fiscal first quarter and expects to double that count again in the second quarter. He added that every fully ramped Max customer is now running at least one fully automated job, and that more than 10% of jobs are fully automated on average across those customers. In Q&A, management made clear that demand is not the main constraint. Kuzoyan said the gating factor is a deliberate rollout process focused first on proving ROI, then on making implementation more scalable and efficient before broadening the fit across the customer base. That answer gave investors a clearer read on near-term adoption. ServiceTitan sounded confident in demand, but equally focused on protecting Max’s reputation and long-term durability rather than maximizing short-term bookings. Chief financial officer Dave Sherry described the fiscal first quarter as a quarter of overperformance, driven by stronger-than-expected GTV and lower costs, some of which reflected expense timing. Non-GAAP operating income was $40.8 million, up from $16.2 million a year earlier, and non-GAAP operating margin expanded to 15.2% from 7.5%. Sherry said the company is reinvesting behind the quarter’s strength, especially in Max and AI inference, but still expects the full-year incremental operating margin to come in above its initial 25% target. That was one of the clearest signs of management confidence on the call. The free cash flow remained negative at $9.6 million, though that improved from negative $22.3 million a year ago. Management maintained its view that the annual free cash flow should approximate annual non-GAAP operating income over the full fiscal year. For second-quarter fiscal 2027, ServiceTitan expects revenues of $284 million to $286 million, and non-GAAP income from operations of $38 million to $39 million. For the fiscal year, the company raised the revenue outlook to $1.13-$1.14 billion and projected non-GAAP income from operations of $142 million to $147 million. Sherry kept the underlying assumptions disciplined. He said the company is not carrying forward the fiscal first-quarter GTV overperformance into later quarters and is assuming a normal summer despite weather and business-day benefits in the said quarter. That restraint also showed up in Q&A. Asked to rank the drivers of upside, Sherry said that Max and virtual agents remain small contributors today, while the higher annual outlook rests more on execution across the business than on aggressive assumptions about recent tailwinds. The clearest takeaway from the call was that management wants investors to view ServiceTitan as a company entering a more scaled automation phase while preserving operating discipline. The tone was notably forward-looking, with management returning often to rollout quality, implementation efficiency and internal R&D leverage. The Q&A reinforced that posture. Executives sounded most explicit when discussing Max onboarding discipline, enterprise momentum and the intention to build AI into customer workflows and internal software development. TTAN currently carries a Zacks Rank #3 (Hold), along with a Value Score of F, a Growth Score of A, a Momentum Score of C and a VGM Score of C. Under the Zacks methodology, Zacks Rank #1 (Strong Buy) and 2 (Buy) stocks paired with Style Scores of A or B generally offer the strongest near-term return profile, while a Rank #3 can be appropriate to hold. You can see the complete list of today’s Zacks #1 Rank stocks here. For TTAN, the strong Growth Score stands out more than the Value or Momentum profile. The mixed Style Score setup, alongside a Hold-ranked stock, points to a more balanced signal rather than a clear-cut high-conviction setup, and that Zacks Rank can change as earnings estimate revisions move after the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ServiceTitan Inc. (TTAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, June 4, 2026 at 5 p.m. ET Co-Founder and Chief Executive Officer — Ara Mahdessian Co-Founder and President — Vahe Kuzoyan Chief Financial Officer — Dave Sherry Head of Investor Relations — Jason Rechel Need a quote from a Motley Fool analyst? Email [email protected] Jason Rechel: Thank you, operator, and welcome, everyone, to ServiceTitan's Fiscal First Quarter 2027 Earnings Conference Call. With me are ServiceTitan's Co-Founder and CEO, Ara Mahdessian; Co-Founder and President, Vahe Kuzoyan; and CFO, Dave Sherry. During today's call, we will review our fiscal first quarter 2027 results. We will also discuss our guidance for the second fiscal quarter and full fiscal year 2027. Before we get started, we want to draw your attention to the safe harbor statement included in today's press release and emphasize that information discussed on this call, including our guidance, is based on information as of today and contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact could be deemed to be forward-looking. Forward-looking statements reflect our views as of today only, and except as required by law, we undertake no obligation to update or revise these forward-looking statements. Please take a look at our filings with the SEC for a discussion of the factors that could cause our results to differ. We also want to point out that we present non-GAAP measures in addition to and not as a substitute for financial measures prepared in accordance with generally accepted accounting principles. Definitions of these non-GAAP financial measures, along with reconciliations to our GAAP financial measures are included in our earnings release which we've furnished with the SEC and is available on our website at investors.servicetitan.com. Unless otherwise stated, all references on this call to platform gross margin, total gross margin, operating income, operating margin, free cash flow and related growth rates are on a non-GAAP basis. Finally, we've posted an updated investor presentation that can be found on the Investor Relations website at investors.servicetitan.com, along with a replay of this call. And with that, let me turn the call over to Ara. Ara? Ara Mahdessian: Thank you, Jason, and thank you for joining us. Our customers are off to a strong start in fiscal year 2027. We continue to execute on our core multiyear growth vectors. We're delivering the agentic operating system to the trades, and we're improving our organizational velocity. During Q1, our focus on delivering customer ROI resulted in 25% year-over-year revenue growth, healthy efficiency and record operating margins. As I spoke about last quarter, our vision since founding ServiceTitan has been to transform the lives of hard-working contractors by helping them grow revenue and increase margins. From day 1, we imagined the world where technicians focused on serving customers in the field, owners focused on business outcomes and ServiceTitan increasingly handled the operational complexity in between. I outlined the evolution of our platform and opportunity to build Max and the agentic operating system for the trades. Today, I'd like to share the story of E.D.S. Air Conditioning & Plumbing, one of South Florida's premier HVAC and plumbing contractors serving the residential and commercial service and construction markets for decades. They were among the first to adopt Max and E.D.S.' business performance speaks for itself across virtually every aspect of the funnel. While the first quarter has previously been a slower quarter for E.D.S. they delivered striking improvements during Q1 2026 compared with Q1 2025. Year-over-year, call booking rates increased roughly 16 points. Close rate in the field increased more than 9 points, average ticket size increased more than 30%. And as the compounding result of these improvements, average revenue per technician increased more than 50%. These significant revenue outcomes with minimal incremental overhead are powered by agentic workflows across the platform that complement the work that is required to be touched by humans. ServiceTitan's agents are generating leads, booking them into appointments, and helping technicians convert them into revenue at higher average tickets. Of all E.D.S. jobs during Q1 of this year, nearly half were touched by the optimization engine. E.D.S. Founder, Ed Sasso, shared with me, "We can now manage our jobs, our accounting and our overall costs without adding layers of people. And our tradesmen and women are put in the best position to perform their best work every day without worrying about unnecessary clerical work. This improves job performance, job satisfaction, and career development in a way we never thought possible. They have automated workflows that can create dramatic efficiency improvements, and we're now able to significantly scale our business without adding additional overhead." All told, both productivity improved and technician count grew. E.D.S. is using ServiceTitan Max to accelerate the capabilities of their best people and create even greater future growth opportunities with enhanced efficiencies across the business. Proof that Max doesn't just allow for improved operations, it compounds them. The best part Ed Sasso told me is that the technology gets better every single day. The power of Max is amplified beyond merely a collection of underlying pro products because there are 25 agentic capabilities optimizing the platform to generate more leads and a higher conversion rate at higher average tickets, all while orchestrating the back office. During Q1, we introduced speed to lead, inbound call booking automation, auto inventory replenishment and invoice protection, among others, that compound capabilities across the management, the back office and the field. The power that is unlocked with this platform means that what used to require a group of people manually coordinating an operation is now being orchestrated by the system itself with humans and AI agents working together seamlessly where each player does what they do best. This end-to-end orchestration gets worked on in the trades faster, more reliably and more efficiently. We're leveraging this end-to-end platform and massive proprietary data set alongside our expanding ecosystem, brand leadership and distribution across more than 10,000 high-performing contractors to bring the magic of end-to-end automation to life for operators. And our internal leverage of AI tooling is allowing us to accelerate development velocity to create more value for customers faster than ever. We are well on our way to delivering the agentic operating system to the trades. I continue to be inspired watching Titans execute for our customers every day. And now let's hear more about our execution from my co-founder, Vahe. Vahe Kuzoyan: Thanks, Ara. I'm excited about our progress so far this year as we build the agentic operating system for the trades. Last quarter, we talked about our 3 major priorities this year: one, to execute against our multiyear growth vectors in enterprise, commercial and roofing; two, to build out Max and the agentic operating system on top of which it sits. Three, to accelerate our organizational velocity. I'd like to highlight important progress that we made during Q1. I'll begin with a brief update of our primary existing growth vectors. Within commercial, we made significant product enhancements this quarter with the launch of our invoicing agents, equipment systems and enhanced CRM capabilities. In roofing, we continue working to harden roofing-specific and insurance workflows to unlock the next leg of our growth in this trade. Finally, in enterprise, during Q1, we surpassed 2,000 total customers with annualized billings greater than $100,000. Customers in this greater than $100,000 cohort now represent greater than 60% of our annualized billings and remain our fastest-growing segment. The health of this enterprise ecosystem was made clear during our annual private equity symposium. We brought together dozens of the largest operators in the trades and leading sponsors representing more than $3 trillion in AUM to speak about our collective vision for the future evolution of our industry. Shifting to Max and the agentic operating system for the trades, which we continue to intentionally roll out across our customer base to lead this industry evolution. Last quarter, we talked about doubling our Max capacity. During Q1, we more than doubled the number of locations on Max. Behind ongoing strong demand for Max, we're optimizing our internal processes, accelerating our capabilities, automating customer onboarding and expect to again double the number of locations on Max during Q2. Most importantly, every fully ramped Max customer is running at least one fully automated job where the only human intervention is the technician in the field. Across fully ramped Max customers, on average, more than 10% of jobs are now fully automated. And as a result of this end-to-end orchestration, Max customers are overperforming their peers across relevant funnel metrics. An additional pillar of our AI monetization strategy, our virtual agents, are experiencing strong early customer adoption to clear customer ROI and the advantages of a singularly integrated platform. We recently introduced outbound calling and receptionist capabilities which we believe will further expand the addressable opportunity for virtual agents while making it even easier for customers to fully automate a greater proportion of jobs. Closing with our organizational velocity. Our goal at ServiceTitan is to build a software factory where AI agents play a central role in all code developments to accelerate velocity. Over the past quarter, I've worked closely with our new CTPO to hire an industry-leading R&D leadership team that we expect will raise the industry standard of innovation and efficiency. One example of software factory in action, we are using AI through the full life cycle of product development. From collecting user feedback across forums, to design ideation to code-creation and bug detection and prevention across both sandbox environment and live in production. We are accelerating our pace of product development. Stepping back, the continued success that we are seeing on our primary growth vectors, the clear opportunity to deliver the agentic operating system for the trades and the notable improvements I have already seen in our internal velocity are each clear signals. It is inspiring to see our vision come to life, and I want to thank Titans everywhere for delivering value to our customers every day and our customers for your partnership and trust. With that, I'll turn it over to Dave to run through the financials. Dave? Dave Sherry: Thanks, Vahe. Our start to the year underscores the durability of our opportunity. Today, I'll run you through Q1 financial results and provide an update to our guidance for fiscal year 2027. For more detailed financial results, please refer to our press release issued earlier today. Q1 gross transaction volume or GTV was $21.7 billion, representing 23% year-over-year growth. Q1 benefited from 1 additional business day as compared to the year ago period, resulting in a roughly 150 basis points tailwind to GTV. Weather contributed roughly another 150 basis points tailwind due to both January ice storms pushing GTV into our fiscal Q1, an unusually early start to the cooling season. Underlying growth across residential and commercial trades remains healthy. Q1 total revenue of $268.8 million grew 25% year-over-year. Subscription revenue of $202 million grew 24% year-over-year, led by strong growth in Pro commercial and initial upside for Max. Usage revenue grew 29% year-over-year to $58.5 million. Fintech revenue was driven by a combination of higher on-platform monetization and strength in commercial GTV, which, as a reminder, has lower monetization given the mix of payment volume. Beyond Fintech, both ecosystem and virtual agent revenue are growing well, and we continue to believe that growth from these factors will likely lead usage revenue to grow more quickly than GTV in FY '27. Total platform revenue for Q1, the sum of subscription and usage revenue grew 25% year-over-year to $260.6 million. Q1 professional services revenue was $8.3 million. Net dollar retention was greater than 110% for the quarter. Q1 platform gross margin was 81.3%, an improvement of 160 basis points year-over-year. Total gross margin for Q1 was 75.3%, up 170 basis points year-over-year. Q1 operating income of $40.8 million resulted in operating margin of 15.2%, an improvement of 770 basis points year-over-year. We overperformed our expectations during the quarter, primarily due to stronger-than-expected GTV combined with lower costs, which is partially driven by the timing of certain expenses. As always, we're managing against a full year incremental margin plan by reinvesting behind strength we saw in the quarter. Looking ahead, we expect the timing of expense growth to normalize as well as incremental investments in Max and inference. We expect investments in these areas to precede the benefits and reduce our future hiring needs over time. In total, we now expect our incremental operating margins for the full fiscal year 2027 to be higher than our initial target of 25%. Q1 free cash flow was negative $9.6 million, an improvement compared to negative $22.3 million for the prior year first quarter. We pay our annual cash bonuses during Q1 and continue to expect the annual free cash flow will roughly approximate annual non-GAAP operating income over the course of the full fiscal year. Two quick model notes before shifting to formal guidance. First, we have conducted an analysis of our appropriate non-GAAP tax rate moving forward. Beginning this fiscal year, we will adopt a long-term non-GAAP tax rate of 18% to be applied for fiscal 2027 through fiscal 2030. Second, I'd like to remind you of business day seasonality this year. Compared to the prior year, GTV and usage revenue will benefit from 1 additional business day in Q2. Q3 will have 1 fewer business day and Q4 will have a comparable number of business days. Now shifting to formal guidance. For the second quarter, we expect total revenue in the range of $284 million to $286 million. We expect to generate operating income in the range of $38 million to $39 million. For the full fiscal 2027, we expect total revenue in the range of $1.13 billion to $1.14 billion, and we expect to generate operating income in the range of $142 million to $147 million. Underpinning our outlook is a sustainably high ROI that we deliver our customers who operate in the resilient trades that keep our economy running. We're excited by the progress we're seeing as we build the agentic operating system for the trades with greater operational velocity than ever before. With that, I'll turn the call back to the operator for Q&A. Operator? Operator: [Operator Instructions] Our first question comes from the line of Josh Baer of Morgan Stanley. Josh Baer: I was hoping that you could provide some insights and key takeaways from your private equity symposium to start. Ara Mahdessian: Great question. As you know, our job as the operating system for the trades is to help our operators thrive and, of course, to help sponsors earn even higher returns. And that is our mandate, and our mandate is to deliver AI for the trades, particularly for the largest operators. And those operators and sponsors are standardizing their operations on ServiceTitan. We believe the reason for this is where the vast majority of the work happens in the trades, and it's done by technicians and others that are already working inside of our -- inside ServiceTitan across all the end-to-end workflows. And that is where we get to leverage data and ecosystem advantages. I think, in particular, being the end-to-end platform makes us the natural destination for, like, the execution layer, the orchestration layer and the interaction layer. Because ultimately, ServiceTitan is not some small piece of our customers tech-stack. It's the primary platform. It's where the work has been done historically for a decade. And so it's natural for us to automate this work now as the execution layer. It's where all the workflows have been coordinated for a decade. And so it's natural for us to coordinate now as the orchestration layer. And of course, for the parts that continue to be manual is very natural for us to remain as the interaction layer. And our PE companies continue to do well. They continue to be a very fast-growing part of our business, and the PE symposium just reiterated the excitement for how far we've all come together. But more importantly, how much further we have yet to go with AI on the frontier. Josh Baer: That's great. And just to follow up on that point, is there any way to provide context for the contribution to growth from private equity or how to think about the durability of that tailwind and this great trend for you? Dave Sherry: Josh, I'll take this one. I think in the quarter, we announced a big milestone of crossing 2,000 customers, north of $100,000 ARR each. I think that you can assume is pretty heavily concentrated with private equity partners, and that represents north of 60% of our ARR today, and it's probably the fastest-growing component of the business. Operator: Our next question comes from the line of DJ Hynes of Canaccord. David Hynes: And I'll echo Josh's congrats. Great quarter. Ara, for customers that have moved to Max, what kind of usage are you seeing of Pro products that they didn't previously have access to? I guess I'm curious how much of that is natural experimentation versus led by a ServiceTitan customer success team? I'm sort of getting at, like, scalability of the rollout and utilization as a leading indicator of retention. Ara Mahdessian: Great. Maybe I'll provide some context if I can comment on the scalability pieces. We have customers that start from different places, some with little to no Pro products, others with more meaningful access to Pro products before switching to Max. I want to remind ourselves that Max is far more than simply the aggregation of Pro products. Max represents 25 different agentic capabilities. Of those 25 before Max, about 7 of them were available in the form of Pro products. The rest have been net new since Max. And they span the, call it, the 3 most important areas of our customers' businesses that are correlated to revenue. These are the direct drivers of revenue, how they generate demand or leads, how they convert that demand into booked appointments and then ultimately, what is the close rate and average ticket on those booked appointments. And so for example, on the demand side, whether it's optimizing ads on Google and Meta, it's e-mail marketing to the customer base, it's things like speed to lead. On the conversion into booked appointments, it's the voice agents that field voice calls, it's the SMS agents that field text messages and automatically book them. Or it's for the calls that are handled by CSRs, it's the AI that scores how well they perform and coaches them to improve performance. And then, of course, on the average ticket size, things like assigning the right technician to the right job to maximize close rates in average tickets or follow up on unsold estimate. For folks who've spent time building agents in real life like production businesses, there's a lot of work that's necessary to be done to truly automate everything and drive the types of results that we're seeing with Max. And it's been incredibly exciting to see the outcomes. I shared E.D.S.'s in the prepared remarks. But to see the level of performance from the Max customers makes us very excited for the future. Vahe Kuzoyan: And I'll just add on in terms of the scalability portion of that answer. For us, the focus has been maniacally emphasizing the ROI that our customers get. And we're doing that primarily through making sure that we've got all hands on deck. And to the extent that we've got an executive sponsor, including myself and Ara, on every single Max customer right now. And so this first cohort, we're not focusing on the automation and the scalability of the setup. Secondly, we started with a lot of customers that had some of the Pro products already. And so there was less set up to do than a greenfield customer. All that being said, the focus right now is exactly on the scalability aspect and being able to deliver the type of ROI we're seeing, but without having to have all the various manual work that's involved today. And so as we think about how we scale Max, the ability to automatically get everything dialed in without needing work either from the customer or from us or I should say, minimize that work as much as possible is where the focus is now. And we expect to see the benefits of that scalability to show up throughout the rest of the year. David Hynes: Yes. Yes. Okay. Very helpful. And Dave, maybe a follow-up for you on a separate topic. Q1 GTV as a percent of the full year, would you expect that ratio to be similar to what we've seen over the past couple of years? Or could Q1 skew a little heavier given some of the dynamics you talked about, demand push out from Q4, the extra day? Like, how should we think about that as we set our models? Dave Sherry: Thanks for getting me involved, DJ. I'll say -- it's going to really depend on what happens during the peak season this summer. If the summer is hot, I'd expect it to be sort of a normal pattern. If the summer is more mild, then I expect it to be maybe a little bit higher in Q1. It's hard for us to know to develop a real conviction on what it's going to be because it's impacted by factors outside of our control, principally weather. But I don't think we see very much that's driving an unusual trend in terms of seasonality this year. Operator: Our next question comes from the line of Scott Berg of Needham & Company. Scott Berg: Really nice quarter here. I guess 2 questions. Let's start off with on the Max deployments that you've done so far. I guess, have most of the deployments gone pretty much as expected and very consistently? Are you seeing any sort of variations from deployment to deployment that would be maybe interesting to call out? Vahe Kuzoyan: So overall, we're incredibly proud of like the results that we've been able to drive for customers. And I would say are generally on the optimistic end of the spectrum. We are, of course, learning some of the subtleties around how previous configurations affect future configurations, how the different products work together and generally, the ability of customers to change and go through that process, which is exactly what this first cohort was intended to produce. That being said, we are focusing on those customers that have the best fit for Max today. And as we start to scale it out across our entire customer base, I'm sure there's a lot more learnings to be had. If we go to your question, we've been very happy with the ability for our customers to both use Max and get the value out of it. Ara Mahdessian: I think their needs are largely homogenous. At the same time, building agents for production use cases, there are a lot of such use cases to manage. I think, for example, thinking about something like voice agent might seem as simple as handling the call and booking the appointment. But there are dozens of additional related use cases. You need to handle from things like prioritizing capacity for high-value jobs or having receptionist capabilities to connect the caller to, for example, billing, if it's a billing question, to being able to support rescheduling deployments to, I don't know, notifying on-call text when calls are booked after hours. So there are these dozens of additional use cases that you must support in order to turn it into a real production grade system that a customer running mission-critical operations can rely on for effectively 100% of their calls, but those needs are homogenous across our customer base. Scott Berg: Understood. And then for me, follow-up perspective, Dave, there's a lot of concern around some of the initial AI usage amongst the application software vendors and how it has a chance maybe in early stages to gross margins as customers maybe use more functionality that has token use than maybe what some of us are expected or what vendors are expected. As these customers have ramped their usage of tokens, et cetera, has it been within your realm of expectation? Has it been maybe more or less? And should we expect any real impact to gross margins as we think about more and more customers ramping over the next year? Dave Sherry: I think a couple of things to say. First, our usage of AI for the customer end is not code creation, video creation. And so it's not as token-intensive. With regards to the margins from Max, I think both Max and virtual agents are additive to gross profit dollars. And while this may change over time so far, what we've seen is the combination of the 2 to be roughly consistent with our total gross margins at scale. Operator: Our next question comes from the line of Jason Celino of KeyBanc Capital Markets. Jason Celino: Just a couple for Dave. The incremental margin improvement is very, very good in Q1. I heard you on the incremental margins for the full year up ticking to 29%. And I understand like the timing differences, but where are you -- do you think you're getting like more efficiency? Because the alternative would be it'll be reinvesting that back. So help me kind of understand where you saw some upside and kind of your process there? Dave Sherry: Absolutely. With regard to incremental this year, 3 key things. First and foremost, as I mentioned in the script, in the prepared remarks, it's important to remember, we manage the business on a full year basis. not quarterly, and I encourage investors to not look at incremental margins on any given quarter. Second, in Q1 we saw strong performance. That was driven both by the outperformance from high GTV, which drove usage revenue, which is high margin and lower expenses. Part of that was in regards to timing. Looking forward, I expect that timing to normalize. Third, behind the strength of Q1, we are increasing our investments in both Max and AI inference inside the business. This will roll out throughout the year. Now that said, despite these increased investments, factoring both the Q1 strength and those investments, we do expect to overperform our full year incremental targets this year. Jason Celino: Wonderful. And then if we look at the usage take rates, they improved quite a bit on a year-over-year basis for Q1. I think in the past, you've talked about driving better payments utilization. Was that the same driver here? Or was there something more at play? Dave Sherry: Yes, absolutely, Jason. Usage take rate performed really well this quarter. We were able to maintain our take rate relative to Q4, even with the GTV overperformance. A couple of things, first, as I mentioned in my prepared remarks, Fintech is driven by 2 really opposing forces. The first is on-platform payment monetization. It inched up this quarter. And on the other hand, is a mix shift towards commercial, which has lower monetization due to different mix of pay methods. So that's the first and the second, beyond Fintech, our AI monetization, both ecosystem and virtual agents are growing quite well. Ecosystem is larger, VA is growing faster. As I look forward, I'd expect usage take rates to remain roughly at these levels. We don't foresee further improvements in the on-platform monetization and we do expect GTV mix to continue to shift towards commercial. I'd expect this shift to commercial to be offset by the growth in our AI usage products from an earn rate perspective. Now given the way that usage earn rate has ramped over the last year, this means that we expect usage revenue to continue to outpace GTV throughout the balance of the year. Operator: Our next question comes from Dylan Becker of William Blair. Jackson Bogli: This is Jackson Bogli on for Dylan Becker. Vahe, you noted that more than -- you guys more than doubled Max locations in the first quarter and you expect to double them again in the second quarter. I'm just curious if your thoughts on how sustainable that doubling cadence is beyond the first half? And maybe -- is that a function of being capacity constrained by demand or by onboarding throughput? Just curious to get your thoughts on that cadence going forward? Dave Sherry: Jack, this is Dave. Before Vahe jumps in, I just wanted to send a big congratulations to Dylan and the Becker family for the addition to their family. With that, Vahe can go ahead and answer Jackson's question. Vahe Kuzoyan: Yes. Ultimately, what we really care about is having every customer on Max. And so the sustainability of the growth rate is really around the fastest path for that full coverage. And as we think about how we maintain that growth as much as possible. One of the other exciting things that we've started this quarter is being able to get brand new customers directly on to Max versus just going after the existing customer base. And we're seeing some promising early signals there. And so -- in terms of how long we could keep the doubling over quarter, as you mentioned, that's a pretty aggressive growth rate. But that's what we're trying to orient is, ultimately, we want to be intentional about what expectations we're setting, how we're laying the foundations for a durable growth story and ultimately optimizing for getting all of ServiceTitan onto Max, not necessarily any particular growth rate in the journey. Jackson Bogli: Got it. That's super helpful. And then maybe, Ara, we're talking about the agentic operating system for the trades. And you guys have been improving organizational velocity as well. I know we've talked about what agentic capabilities are live and resonating most with customers today. But really, I'm curious how you're thinking about the improved internal velocity translating into the faster product delivery and ROI? And kind of how this just reinforces your core multiyear growth vectors? Vahe Kuzoyan: Yes. Ultimately, we are a tech company, and our business is predicated on delivering solutions for our customers. And there is no greater driver of that, both in terms of value to customers and revenue to us than the quality of the product and the velocity with which it progresses. And so any time we get even a little bit of an acceleration on the R&D side, there are massive long-term consequences here. And what we're seeing now with the more and more effective utilization of AI is that the signals across the board, whether it's the overarching amount of code and the quality with which it's produced, or the entire life cycle of understanding what to build, how to build it and so on. What we're trying to focus on most is making sure that we're holding a high-quality bar as we see this acceleration materialize. And that we're able to do it in a way that allows sustainable velocity improvements over time. And if we're able to maintain this pace, I think, our ability to deliver outcomes for our existing markets becomes accelerated, our ability to grow into adjacent markets will become accelerated. And ultimately, the value we drive and the revenue we generate is going to be accelerated. So as far as I'm concerned, there is nothing more important than the long-term success of our company than our ability to get the benefits of AI, particularly within our R&D org. Ara Mahdessian: We are excited about what the software factory will do for our future. From scouring all the tens of thousands of live conversations we have with customers to the support tickets to the underlying product utilization data to help figure out and prioritize what to build. And then, of course, for agentic coding to build what we need to build, test it, deploy it, monitor it in production and self-evolve over time. This is the frontier that we are very excited about and what it'll mean for our future. Operator: Our next question comes from the line of Billy Fitzsimmons of Piper Sandler. William Fitzsimmons: Great. You touched on this in your prepared remarks, but it's been a couple of months now since you've had your new Chief Technology and Product Officer. He has a track record at some of the largest software companies. Anything you can provide on either how we should think about some of the processes and procedures he has brought or is able to bring to the engineering organization? Or maybe more broadly, you touched on the use of AI tools internally? And went through some of the use cases. And I got to imagine it's evolving day-to-day. But to kind of double-click on that, are there any additional anecdotes you can talk about it to kind of help us think through things you could not do or can now do faster than you could previously with some of these tools. Vahe Kuzoyan: Yes, absolutely. So I would say, by far, the most important aspect of being able to do what we're talking about is to build a strong team. But there will be no bigger driver of any of those things. And this is the first area that Abhi has been focusing on in terms of increasing the talent density within the team and making sure that we've got the right leaders in the right seats in order to take us to where we need to go. Secondly, in order to get the benefits of AI, particularly around the acceleration, what you need is a foundation that allows you to have resiliency and quality as you gain those benefits. And so his experience at companies at scale that have proven to scale their R&D work and be able to grow their footprint. In terms of the products they create, the value that they deliver, it's what is allowing us to see the benefits in terms of having those foundational quality harnesses, processes and ultimately, the teams that are building the foundation on top of which what the software factory is ultimately going to be able to do. All that being said, we are early days. And so we are very excited to see these early signals start to accelerate ultimately the velocity and quality with which we can serve our customers. William Fitzsimmons: Awesome. And then if I could sneak a second one for Dave. When we think about the revenue upside in 1Q and the increase for the year, there's a few different growth drivers here. Max is ramping, voice agents, roofing and commercial are all ramping. And more broadly, it seems like end customer demand is strong. The GTV line accelerated. Can you just help us rank order or think through the different drivers driving the upside versus kind of initial expectations? Dave Sherry: Yes. I mean I think a couple of things here. First, Max and VA are both really exciting for us long term. And although our expectations are higher today as compared to 90 days ago, these deals generally have meaningful ramps built in to enable customers to align their usage with their bill. So though the contribution is higher today in Max than it was a quarter ago, it does remain small. With regard to GTV, our approach, as always, is to not roll forward GTV overperformance in the future periods. And so despite the strength in Q1, we're expecting a normal summer consistent with the last few years. So the raise for the rest of the year is simply just execution of the business. And it's these factors that's the foundation for the improved FY '27 outlook. And I think we're fortunate to be able today to raise our total guidance by $20 million. Operator: Our next question comes from the line of Nick Altmann of BTIG. Nicholas Altmann: Awesome. I wanted to circle back on a prior comment around how some of the net new customers are actually starting on Max and can you just expand on that a bit because it's kind of interesting in the sense of whether Max is actually acting as sort of a front door to ServiceTitan or whether you're seeing more net new logo opportunities because of Max. So just any additional color on that comment would be interesting. Ara Mahdessian: Great question. First and foremost, this is very new and very small. But the thesis is when switching software is a moment of great change management it may make sense that this be the time to switch software and deploy agents at the same time. The other part of the thesis is that in the traditional world where you had software that you manually use, it required a lot of training and coaching and monitoring in order to get utilization. Whereas in the agentic world, when you deploy agents upfront, you naturally get effectively 100% utilization with less -- much less effort on training, monitoring, support and coaching. And so we are excited to do this on a small scale and see the results for these contractors that adopt Max from the beginning. And then depending on the results that we see, to determine how to scale moving forward. Operator: Our next question comes from the line of Parker Lane of Stifel. John McShane: This is Jack McShane on for Parker. I'd be curious with customers in the Max program seeing such strong productivity gains, you mentioned E.D.S., I believe it was 50% average revenue per technician improvement. Are you seeing customers in the Max program start to talk about making plans of hiring more? And do you think that this can be a growth driver towards the back half of the year and into fiscal year '28? Ara Mahdessian: In the E.D.S.' case, they not only saw an increase in revenue per technician, but they also added technicians. Generally, when customers increase the number of leads that they generate or their booking rates increase or both. They end up with more appointments that they need to run and one way of meeting the increased demand for appointments is greater technician efficiency that allows an individual tech to get to more appointments, although there's a pretty strict limit on how much efficiency you can gain there. And so therefore, in almost every case, it ends up in the hiring of additional techs. John McShane: Yes, it's great to hear. And then second question, obviously, headless is a focal point with investors in the space now. I'd be curious to just get your guys' thoughts on its applications to ServiceTitan. Are you seeing technicians on-site or maybe it's back office employees using general purpose models outside of the ServiceTitan platform. And is there an opportunity to build out headless functionalities so you start to capture some of that usage? Vahe Kuzoyan: Yes. So what we're seeing is a pretty broad, let's say, desire to start using all of the AI tools available on the market. And especially with our larger customers, huge amounts of experimentation, whether it's Claude Cowork or tools like that, that are similar. What we're noticing is that part of the main challenge they experience is, in order to do anything useful, they ultimately need to be able to access data in order to get information. And then once something useful is discovered through an insight, they need to take some sort of action into the real world. And this is the role that we think that we can play and we want. This is why it's so important to become that orchestration layer, that end-to-end intelligence both in terms of reads and writes. And so we're still early on in thinking about how we plug into the broader ecosystem of AI tools. Right now, there's so much low-hanging fruit in terms of delivering direct functionality to our customers that, that's what's taking up the majority of our time. But I can very easily see a future where both individually and as businesses, there's all sorts of AI tooling and we want to be able to provide a platform through which customers can get the most out of AI. Ideally, it's solutions that we offer directly, but we also want to become a platform and an orchestration layer that can be leveraged through external tools as well. And this is why we think the ecosystem and having a strong and thriving ecosystem is such a strategic area for us to invest in. Operator: Our next question comes from the line of Andrew Sherman of TD Cowen. Andrew Sherman: Ara, on VA wanted to drill in a little bit more on what you're seeing from early customers and trials. What percentage of your customer base has reached out and expressed a lot of interest. What's the sales motion to target these? And how quickly are the rollouts going wall-to-wall or kind of slower and then ramping and the competitive landscape, any differentiating factors you want to call out? Ara Mahdessian: Very good question. So we gave select customers access to the early version of our voice agents in Q4. And then as I described earlier, for one of the questions. We then built out support for like dozens of additional of these real-life production use cases through Q1. And then we began more expanded go-to-market late Q1. Of course, like given the recency of the more expanded go-to-market, you can imagine the penetration is naturally low today, but ramping quite well. And then to the latter half of your question, I think nearly all of our customers face situations where there's a sudden surge of calls and that surge overwhelms their staff or calls come in after hours and somebody needs to pick those up and especially when each one of these calls might represent thousands of dollars of revenue. Our thesis is that a lot of customers will move in this direction over time. Now naturally, some will start with overflow on after hours, but then others may choose to let voice agents handle incremental volume as they see CSR attrition in their business especially because CSR attrition tends to be fairly high in contracting businesses. But we see this as a very meaningful opportunity for growth. Operator: Our next question comes from the line of Richard Poland of Wells Fargo. Richard Poland: On for Michael Turrin here. I guess when we just think about like the broader let's call it, Pro products suite. How is adoption going there? I know a lot of the focus right now is on Max, and it sounds like that's kind of ramping nicely. But just in this interim period, while that's not fully available to everyone else, how do we think about just kind of where you're seeing strength in certain Pro products and how that's kind of developed over the last 90 days? Dave Sherry: What I'll say here is Pro continues to sell well. We have not seen a headwind from Pro adoption while we're selling Max. I think that over time, our packaging will encourage customers to adopt Max more. And remember, it's really, really important that everyone understands it. Max is more than just a collection of Pro products. It's not just a bundle. It's incremental capabilities. And so while Pro continues to sell, we think customers are going to increasingly have interest in Max or versions of Max. Richard Poland: Great. And then I guess, Dave, just on GTV. When we think about just kind of average ticket size and any differences in just number of jobs in the quarter, some of the core on GTV. Any color there? Dave Sherry: Yes. I mean nothing really stood out this quarter. It was -- we see pretty balanced growth from average ticket and number of jobs. The bigger variants, obviously, the big driver was weather and of course, business days in the period. Operator: Our next question comes from the line Brian Peterson of Raymond James. Brian Peterson: Just on Max, like obviously doubling this quarter and expecting doubling or more than doubling and expected to double next quarter, I'm actually just curious, what is the gating factor on growth at this point? And is there anything that customers are pushing back on? And why should we not see that adoption accelerate from what you're seeing so far? Vahe Kuzoyan: So the primary gating factor is us wanting to go through a very intentional sequential process of first and foremost, nailing the ROI story. We feel very confident that we've done this already. So that has been the first constraint. Now we're in the phase of making sure that we can continue to deliver those same types of results, but with a more scalable and efficient implementation effectively. And so that's where the focus is right now, and that's the gating factor. And then the last phase is really making sure that Max is a fantastic fit across all of our customers, not just the ones that are best fit today. And so going back to your question, it's really around optimizing for the long-term durable success of Max versus selling the most we possibly can today. We have way more demand than what we've been onboarding, and we expect to continue to be in that same state. But we want to be very, very intentional with the success that we deliver, the brand and reputation of Max and the durability of the customers on the program. Operator: Our next question comes from the line of Tyler Radke of Citi. Tyler Radke: There's been a lot of headlines out in terms of the big data center build-out projects, of shortage of workers, electricians, plumbers, HVAC, et cetera. How are you thinking about the medium and long-term impact to ServiceTitan? And obviously, these are workers that are critical to the platform today? Vahe Kuzoyan: Yes. This is where we see mostly affecting the commercial part of our business. As you'd imagine, the residential businesses are not really involved on the data center build-outs. And on the commercial side, we are certainly hearing and seeing from our customers the huge kind of tidal wave of work coming in from data centers. I think it's really hard to predict exactly what the impact is going to be because as you know, these data centers are built typically way off site. And so what I'm hearing from our customers is it's not so straightforward to get -- first of all, just the number of plumbers and electricians needed, much less to get them to move to those areas for the construction period and so on. And so for the foreseeable future, we are not anticipating any meaningful impact to our business or to our customers' businesses in terms of the labor disruptions from the build-out, but it's a fast-moving situation, and we continue to monitor it closely. Tyler Radke: And just a quick follow-up on the weather dynamics that you called out. Given what sounded like kind of a benefit both from the early start to the cooling season, is there any sort of timing issues we should be aware of in terms of that follow-on impact in Q2? Any pull forward from that should take some momentum out of Q2 or would you not associate that directly with Q2? Ara Mahdessian: Great question, Tyler. The warmer spring means our customers' busy season started earlier, how the peak performance will really be driven by the peak summer months. If it's a hot summer, I could see GTV being higher. If it's a milder summer, it's possible that it will appear to be a pull forward from Q2 to Q1. It's hard to know until we really see the quarter evolve. As always, we're not taking a differentiated view on the weather and just as I said before, assuming a consistent summer with the prior years. Operator: Our next question comes from the line of Adam Hotchkiss of Goldman Sachs. Adam Hotchkiss: Dave, I know historically, you've talked a little bit about this dynamic of repair versus replace impacting ticket sizes for your customers. Would just be curious what you're observing on that front and what it tells you about consumers in the space? Dave Sherry: Thanks for the question, Adam. I don't think we saw anything stand out in the quarter. Ticket sizes were up a little bit, but not -- there was no fundamental shift from repair to replace. Adam Hotchkiss: Okay. Super clear. And then on the competitive environment, I appreciate the commentary around the architectural vision when it comes to third-party AI tools. But any changes you're just -- you're seeing more broadly given what AI is doing to product development velocity in the broader competitive environment in your space? Vahe Kuzoyan: Not necessarily in our space. I think as just a technologist, it's a crazy time to be in the game. We're just seeing incredible things being possible, both internally as well as what other companies are doing. But there's nothing particularly special in our corner of the universe. We're kind of seeing the magic of AI continue to play out, and we continue to be super excited about what it means for us. Operator: Our next question comes from the line of Daniel Jester of BMO Capital Markets. Will Hancock: This is Will Hancock on for Dan Jester. And congrats on the quarter. So you're putting a lot of resources into expanding the Max program. Can you talk about how you weigh that opportunity versus investing in entering and scaling new trades? And has that prioritization shifted given the success that you've seen so far in Max? Vahe Kuzoyan: So I would say there's definitely been an increase in the weight in terms of Max and resources we've been putting into it over the last few quarters. The early signals have been promising enough for us to be increasing that level of investment. We're trying very hard not to have a huge pullback in other areas. And so we're being thoughtful about how we're shifting resources in that direction. But generally speaking, I would describe it as increased priority and importance for Max. And that we're trying to be balanced in terms of where we take those resources from in order to increase that investment. Dave Sherry: Fundamentally, we run the business like a marathon, not a sprint. We do continue to believe that we will be the operating system for all the trades. Right now, there is a near-term very exciting opportunity around building out and delivering Max. But over the long term, we continue to believe we will extend beyond the trades. I think today, the focus has, as you said, shifted more towards Max. Operator: Our next question comes from the line of Terry Tillman of Truist Securities. Connor Passarella: This is Connor Passarella on for Terry. Just first on the broader landscape or the broader AI adoption. How does the level of customer interest and urgency around AI digital transformation and commercial compare to residential today? Maybe what's driving that difference as well? Vahe Kuzoyan: Yes, I would say that there's a general similar level of excitement. And I would say both for us and the market in general, there is more maturity on the residential side. And I think a lot of it comes from the fact that residential transactions tend to be simpler. If you have even a booking situation, the systems involved and the dynamics involved are generally less complex to deal with than in a commercial use case. As we think about the longer arc, we see a very similar opportunity in both, but we anticipate that both the market in general and our level of product maturity for residential to lead commercial. Operator: Our next question comes from the line of Yun Kim of Loop Capital Markets. Yun Suk Kim: Following up on a couple of questions on competitive landscape and also the last question. If you can give us just an update on the overall competitive landscape, especially at the low end of the market, just picking up a lot more players in that end of the market, maybe if they're using Vibe coding and such, I don't know. But given that you are seeing faster growth from the enterprise to the larger end of the market, the higher end of the market and more of your go-to-market focus? Ara Mahdessian: Great question. We don't really sell to the lower end of the market. So we haven't seen any dynamics that necessarily materialize in the way that you're describing. Operator: Thank you. I would now like to turn the conference back to Ara Mahdessian for closing remarks. Sir? Ara Mahdessian: I just want to thank everyone for the call today. In particular, a special thank you to our customers who work tirelessly to serve their communities, particularly with the upcoming busy season coming up. A special thank you to our Titans all around the world, who work tirelessly for our customers and especially to our investors who support our mission. We hope to be good stewards of your capital and aspire to build a generational company. Thank you all and look forward to seeing you all soon. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in ServiceTitan, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ServiceTitan wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,632!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,316,532!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of June 5, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends ServiceTitan. The Motley Fool has a disclosure policy. ServiceTitan (TTAN) Q1 2027 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: June 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ServiceTitan Inc (NASDAQ:TTAN) reported a 25% year-over-year revenue growth, demonstrating strong financial performance. The company successfully doubled the number of locations using its MAX platform in Q1 and plans to double it again in Q2, indicating strong demand and adoption. ServiceTitan Inc (NASDAQ:TTAN) achieved a significant milestone with over 2000 customers having annualized billings greater than $100,000, representing over 60% of their ARR. The introduction of new features like speed to lead, inbound call booking automation, and auto inventory replenishment has enhanced the platform's capabilities. The company's focus on AI and automation is driving efficiency and scalability, with virtual agents experiencing strong early customer adoption. Despite strong growth, ServiceTitan Inc (NASDAQ:TTAN) reported a negative free cash flow of $9.6 million in Q1, though it was an improvement from the previous year. The company faces challenges in scaling the MAX platform efficiently, requiring significant manual work and executive involvement in the initial phases. Weather and business day variations contributed to revenue fluctuations, making it difficult to predict future performance accurately. The company is experiencing a mix shift towards commercial operations, which has lower monetization due to different payment methods. There is a potential risk of AI-driven gross margin compression as customers increase their usage of AI functionalities. Warning! GuruFocus has detected 8 Warning Signs with BBCP. Is TTAN fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide insights and key takeaways from your private equity symposium? A: Our role as the operating system for the trades is to help operators thrive and sponsors earn higher returns. The symposium highlighted the standardization of operations on ServiceTitan by large operators and sponsors. This is due to our platform's ability to leverage data and ecosystem advantages, making us the natural destination for execution, orchestration, and interaction layers. The excitement for AI's potential in the trades was reiterated, and private equity remains a fast-growing part of our business. - Ara Medesian, Co-Founder and CEO Q: For customers that have moved to Max, what kind of usage are you seeing of Pro products they didn't previously have access to? A: Customers started from different places, some with little to no Pro products, others with more access before switching to MAX. MAX is more than just Pro products; it includes 25 agentic capabilities. These capabilities drive revenue by optimizing demand generation, conversion to booked appointments, and close rates. The outcomes have been exciting, with significant performance improvements from MAX customers. - Vahe Kazilyan, Co-Founder and President Q: What is the gating factor on growth for MAX, and why should we not see adoption accelerate? A: The primary gating factor is ensuring a strong ROI story. We are now focusing on delivering results with scalable and efficient implementation. The final phase is ensuring MAX is a great fit across all customers. We have more demand than we can onboard, but we are prioritizing long-term success and brand reputation over immediate sales. - Vahe Kazilyan, Co-Founder and President Q: How do you weigh the opportunity of expanding the MAX program versus investing in new trades? A: There has been an increased focus on MAX due to promising early signals, leading to more investment in this area. We are trying to balance resource allocation without pulling back significantly in other areas. While MAX is a near-term priority, we continue to believe in extending our operating system across all trades in the long term. - Dave Sherran, CFO Q: How does the level of customer interest in AI digital transformation compare between commercial and residential sectors? A: There is a similar level of excitement in both sectors, but residential transactions tend to be simpler, leading to more maturity in this area. Over time, we see similar opportunities in both sectors, but residential is currently more mature in terms of product development and market readiness. - Vahe Kazilyan, Co-Founder and President For the complete transcript of the earnings call, please refer to the full earnings call transcript.

LOS ANGELES, June 04, 2026 (GLOBE NEWSWIRE) -- ServiceTitan (NASDAQ: TTAN), the software platform that powers the trades, today announced financial results for the fiscal first quarter ended April 30, 2026. “Our customers are off to a strong start in fiscal year 2027,” said Ara Mahdessian, Co-Founder and CEO. “We continue to execute on our core multi-year growth vectors, we’re delivering the Agentic Operating System to the Trades, and we’re improving our organizational velocity.” “I am excited about our progress so far this year,” said Vahe Kuzoyan, Co-Founder and President, “During Q1, we more than doubled the number of locations on Max; we're optimizing our internal processes, automating customer onboarding and expect to again double the number of locations on Max during Q2.” Fiscal First Quarter 2027 Financial and Operational Highlights: _________________________ (1) Gross Transaction Volume (“GTV”) represents the sum of total dollars invoiced by our customers through the ServiceTitan platform in a given period, which is intended to be a proxy for the total revenue our customers generate.(2) This press release uses non-GAAP financial measures that adjust GAAP financial measures for the impact of various items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “GAAP to Non-GAAP Reconciliation” below for additional information. Fiscal Second Quarter and Fiscal Year 2027 Financial Outlook:For fiscal second quarter 2027 and for the full fiscal year 2027, the company currently expects: _________________________(3) ServiceTitan is not able, at this time, to provide an outlook for GAAP loss from operations or a reconciliation of expected non-GAAP income from operations to GAAP loss from operations for the fiscal second quarter 2027 or for the full fiscal year 2027 because of the difficulty of estimating certain items excluded from non-GAAP income from operations that cannot be reasonably calculated or predicted without unreasonable efforts. For example, charges related to stock-based compensation expense require additional inputs, such as the number and value of awards granted, that are not currently ascertainable. Conference Call Information:The financial results and business highlights will be discussed on a conference call and webcast scheduled at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Thursday, June 4, 2026. Online registration for this conference call can be found here. The live webcast of the conference call can be accessed from ServiceTitan’s investor relations website at http://investors.servicetitan.com. Following completion of the events, a webcast replay will also be available at http://investors.servicetitan.com for 12 months. About ServiceTitan ServiceTitan is the software platform that powers trades businesses. The company’s cloud-based, end-to-end solution gives contractors the tools they need to run and grow their business, manage their back office, and provide a stellar customer experience. By bringing an integrated SaaS platform to an industry historically underserved by technology, ServiceTitan is equipping tradespeople with the technology they need to keep the world running. Forward Looking Statements This press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” or “will,” or the negative of these words or other similar terms or expressions that concern ServiceTitan’s expectations, strategy, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding ServiceTitan’s financial outlook for total revenue and non-GAAP income from operations for fiscal second quarter 2027 ending July 31, 2026 and the full fiscal year ending January 31, 2027, and statements regarding our operating and organizational velocity, AI strategy, and plans for Max. ServiceTitan’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption “Risk Factors” in our Annual Report on Form 10-K for fiscal 2026 ended January 31, 2026 as filed with the SEC on March 25, 2026, which should be read in conjunction with this press release and the financial results included herein. Additional information will be set forth in our Quarterly Report on Form 10-Q for the fiscal first quarter 2027 ended April 30, 2026. The forward-looking statements in this release are based on information available to ServiceTitan as of the date hereof, and ServiceTitan undertakes no obligation to update any forward-looking statements, except as required by law. Press ContactMax WertheimerServiceTitan, [email protected] Investor ContactJason RechelServiceTitan, [email protected] © 2026 ServiceTitan. All rights reserved. ServiceTitan, the ServiceTitan logo, and all ServiceTitan product and service names mentioned herein are registered trademarks or unregistered trademarks of ServiceTitan, Inc. in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). Statement Regarding Use of Non-GAAP Financial Measures In addition to our results prepared in accordance with GAAP, we believe non-GAAP gross profit and non-GAAP gross margin, in total and for platform, and professional services and other, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP earnings per share (“EPS”) are useful in evaluating our operating performance. These measures, however, have certain limitations in that they reflect the exercise of judgment by our management about which expenses are excluded or included and do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, our financial results determined in accordance with GAAP. We caution investors that amounts presented in accordance with our definition of non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP EPS may not be comparable to similar measures disclosed by other companies because not all companies and analysts calculate these measures in the same manner. For the reasons set forth below, we believe that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures. Stock-based compensation expense and related employer payroll taxes. We exclude stock-based compensation expense, including the performance-based RSUs granted to our Co-Founders, and related employer payroll taxes to allow investors to make more meaningful comparisons of our performance between periods and to facilitate a comparison of our performance to those of other peer companies. Stock-based compensation may vary between periods due to various factors unrelated to our core performance, including as a result of the assumptions used in the valuation methodologies, timing and amount of grants and other factors. We exclude employer payroll taxes because the amounts vary based on timing and settlement or vesting of awards unrelated to our core operating performance. Moreover, stock-based compensation expense is a non-cash expense that we exclude from our internal management reporting processes and when assessing our actual performance, budgeting, planning, and forecasting future periods. Amortization of acquired intangible assets. We incur amortization expense for acquired intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of acquired intangible assets is a non-cash expense that is significantly affected by the timing and size of acquisitions, and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred, we exclude the amortization expense from our internal management reporting processes. We exclude these charges when assessing our actual performance and when budgeting, planning, and forecasting future periods. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Loss on operating lease assets. We have incurred impairments on certain right-of-use assets and other long-lived assets. We believe that it is useful to exclude these charges when assessing the level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. In addition, we believe excluding such costs enhances the comparability between periods. Acquisition-related items. We have incurred costs related to acquisitions, including legal, third-party valuation and due diligence, insurance costs, and one-time retention bonuses for employees of acquired companies. In addition, we periodically record the change to the fair value of contingent consideration related to past acquisitions. We exclude these items when assessing our actual performance and when budgeting, planning and forecasting future periods. We believe excluding these items allows investors to make meaningful comparisons between our core operating results and those of other peer companies. Change in Non-GAAP Measures Presentation Effective February 1, 2026, the beginning of our first quarter of fiscal 2027, we adopted a fixed long-term projected non-GAAP tax rate in order to provide better consistency across interim reporting periods. When projecting the long-term non-GAAP tax rate, we utilize a financial projection that excludes the direct impact of the items excluded from GAAP income in calculating our non-GAAP income. The projected rate considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. For fiscal 2027, we determined the projected non-GAAP tax rate to be 18%, which reflects currently available information, as well as other factors and assumptions that may change over time. We will periodically re-evaluate this tax rate, as necessary, for significant events, relevant tax law changes, material changes in the forecasted geographic earnings mix, and any significant acquisitions. Non-GAAP EPS We define non-GAAP basic EPS as non-GAAP net income divided by weighted-average shares outstanding used in computing net loss per share attributable to common stockholders, basic. We define non-GAAP diluted EPS as non-GAAP net income divided by weighted-average shares outstanding giving effect to the weighted average of all potentially dilutive common stock equivalents outstanding for the period including options to purchase common stock, restricted stock units, and acquisition indemnity shares withheld. The dilutive effect of outstanding awards is reflected in non-GAAP diluted earnings per share by application of the treasury method. Free Cash Flow We define free cash flow as GAAP net cash provided by (used in) operating activities less cash used for investing activities for capitalized internal use software and less cash paid for purchases of, and deposits for, property and equipment. We believe that free cash flow is a meaningful indicator of our sources of liquidity and capital requirements that provides information to management and investors in evaluating the cash flow trends of our business. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Free cash flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Other companies may calculate free cash flow or similarly titled non-GAAP measures differently, which could reduce the usefulness of free cash flow as a tool for comparison. In addition, free cash flow does not reflect mandatory debt service and other non-discretionary expenditures that are required to be made under contractual commitments and does not represent the total increase or decrease in our cash balance for any given period. ServiceTitan, Inc.GAAP to Non-GAAP Reconciliations(unaudited) Non-GAAP Gross Profit and Non-GAAP Gross Margin * Totals may not foot due to rounding. Non-GAAP Sales and Marketing Expense Non-GAAP Research and Development Expense Non-GAAP General and Administrative Expense Non-GAAP Income from Operations and Non-GAAP Operating Margin * Totals may not foot due to rounding. Non-GAAP Net Income (4) Effective February 1, 2026, we adopted a fixed long-term projected non-GAAP tax rate of 18%, which reflects currently available information, as well as other factors and assumptions that may change over time. Non-GAAP EPS Free Cash Flow