ServiceTitan, Inc. is revolutionizing the way field service operations are managed, enhancing the daily lives of consumers and businesses alike. With its cutting-edge software solutions, ServiceTitan has emerged as a key player in the application software industry, streamlining processes for home service professionals. Known for its commitment to innovation and quality, the company’s robust platform supports a thriving ecosystem of service providers. As we analyze ServiceTitan’s fundamentals, the question arises: does its current market valuation reflect its growth potential?
Table of contents
Company Description
ServiceTitan, Inc. is a prominent player in the software application industry, specializing in providing comprehensive field service management solutions. Founded on June 8, 2008, by Ara Mahdessian and Vahe Kuzoyan, the company is headquartered in Glendale, CA. ServiceTitan empowers businesses in the residential and commercial service sectors with tools to enhance operational efficiency, from installation to maintenance. With a market capitalization of approximately $9.82B and a robust workforce of 3,049 employees, it operates primarily across the United States. Its strategic focus on innovation positions ServiceTitan as a key influencer in the digital transformation of service industries, driving efficiency and enhancing customer experiences.
Fundamental Analysis
In this section, I will analyze ServiceTitan, Inc. by examining its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table illustrates the Income Statement for ServiceTitan, Inc. (TTAN) over the fiscal years from 2023 to 2025, providing key insights into the company’s financial performance.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 468M | 614M | 772M |
| Cost of Revenue | 202M | 238M | 271M |
| Operating Expenses | 488M | 559M | 731M |
| Gross Profit | 266M | 377M | 501M |
| EBITDA | -170M | -94M | -141M |
| EBIT | -228M | -175M | -221M |
| Interest Expense | 55M | 16M | 15M |
| Net Income | -270M | -195M | -239M |
| EPS | -3.44 | -2.93 | -8.53 |
| Filing Date | 2023-01-31 | 2024-01-31 | 2025-04-02 |
Interpretation of Income Statement
Over the period from 2023 to 2025, ServiceTitan, Inc. experienced a notable increase in revenue, rising from 468M in 2023 to 772M in 2025, reflecting a growth trend. However, net income remained negative, worsening from -270M in 2023 to -239M in 2025, highlighting persistent operational challenges. The gross profit margin showed some resilience, but overall operating expenses surged, leading to negative EBIT and EBITDA figures. The latest year reveals a decline in EPS to -8.53, indicating further financial strain, suggesting that while revenue growth is positive, the company must address its cost structure to improve profitability moving forward.
Financial Ratios
The table below summarizes the financial ratios for ServiceTitan, Inc. (TTAN) over the years 2023, 2024, and 2025.
| Financial Ratios | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Margin | -57.62% | -31.76% | -30.98% |
| ROE | -22.19% | -16.95% | -16.44% |
| ROIC | -14.36% | -13.30% | -14.25% |
| P/E | -30.86 | -42.63 | -18.12 |
| P/B | 6.85 | 7.22 | 2.98 |
| Current Ratio | 2.06 | 1.99 | 3.74 |
| Quick Ratio | 2.06 | 1.99 | 3.74 |
| D/E | 0.21 | 0.21 | 0.11 |
| Debt-to-Assets | 15.82% | 16.21% | 9.35% |
| Interest Coverage | -4.07 | -11.13 | -14.82 |
| Asset Turnover | 0.29 | 0.40 | 0.44 |
| Fixed Asset Turnover | 3.27 | 4.37 | 9.57 |
| Dividend Yield | 0 | 0 | 0 |
Interpretation of Financial Ratios
Analyzing ServiceTitan, Inc. (TTAN) for the fiscal year 2025 reveals some concerning financial ratios. The liquidity ratios indicate strong short-term financial health, with a current ratio of 3.74 and a cash ratio of 2.89, suggesting ample liquidity to cover short-term obligations. However, the solvency ratio is negative at -0.51, indicating potential long-term viability issues. Profitability metrics are weak, with a net profit margin of -30.98% and significant negative margins across various profitability ratios. The efficiency ratios are mixed, with a receivables turnover of 8.54, but an alarming inventory turnover of 0. These factors raise concerns regarding operational efficiency and profitability sustainability.
Evolution of Financial Ratios
Over the past five years, ServiceTitan’s financial ratios indicate a troubling trend. While liquidity has improved significantly, as seen in the current ratio increase from 2.06 in 2023 to 3.74 in 2025, profitability ratios have consistently remained negative, highlighting ongoing challenges in achieving operational efficiency and profitability.
Distribution Policy
ServiceTitan, Inc. (TTAN) does not pay dividends, reflecting its current focus on reinvestment and growth rather than returning capital to shareholders. The company is in a high-growth phase, prioritizing research and development, which is crucial for long-term value creation. Additionally, TTAN engages in share buybacks, signaling confidence in its future prospects. This strategy, while risky due to the absence of immediate returns, may ultimately support sustainable shareholder value if executed judiciously.
Sector Analysis
ServiceTitan, Inc. operates in the Software – Application industry, providing solutions for field service management with a strong emphasis on home and commercial services. Its competitive edge lies in its comprehensive platform, but it faces competition from established software providers.
Strategic Positioning
ServiceTitan, Inc. (TTAN) occupies a significant position within the software application industry, specifically focusing on field service management. With a market cap of approximately 9.82B USD and a current stock price of 105.6 USD, the company has effectively captured a notable share of the market. However, competitive pressure remains high as rival firms innovate rapidly, pushing for advancements in technology that could disrupt existing solutions. It’s essential to monitor these developments closely to assess potential impacts on ServiceTitan’s market share and overall business strategy.
Revenue by Segment
The following chart illustrates ServiceTitan, Inc.’s revenue by segment for the fiscal year 2025, providing insights into the company’s financial performance and key revenue drivers.
In 2025, ServiceTitan generated $739M from Platform Revenue and $566M from Subscription Revenue. Overall, both segments show strong performance, with Platform Revenue being the primary driver. Notably, while revenue growth remains robust, there are potential margin risks associated with increased competition in the subscription space. The company’s ability to maintain an advantage will be critical as market dynamics evolve.
Key Products
Below is a table detailing the key products offered by ServiceTitan, Inc., which focus on enhancing the efficiency of field service operations.
| Product | Description |
|---|---|
| ServiceTitan Mobile | A mobile application that allows technicians to manage their schedules, access customer information, and process payments on-site, improving service efficiency. |
| ServiceTitan CRM | A customer relationship management tool designed specifically for service businesses, enabling better customer interaction and data tracking for improved service delivery. |
| ServiceTitan Marketing | A marketing platform that helps companies design, implement, and analyze marketing campaigns tailored to the needs of field service industries, driving customer engagement. |
| ServiceTitan Dispatch | A scheduling and dispatching solution that optimizes technician routes and job assignments, enhancing operational efficiency and reducing travel time. |
| ServiceTitan Reporting | A comprehensive reporting tool that provides insights into business performance metrics, enabling data-driven decision-making for service operators. |
These products collectively aim to streamline field service operations, ultimately enhancing customer satisfaction and business growth.
Main Competitors
The competitive landscape for ServiceTitan, Inc. in the software application industry consists of several notable players. Below is a table showcasing the main competitors based on their market capitalization:
| Company | Market Cap |
|---|---|
| ServiceTitan, Inc. | 9.82B |
| Lyft, Inc. | 9.17B |
| AppFolio, Inc. | 8.46B |
| Open Text Corporation | 8.45B |
| Match Group, Inc. | 8.15B |
| Paylocity Holding Corporation | 8.13B |
| Elastic N.V. | 7.87B |
| Sportradar Group AG | 6.75B |
| NICE Ltd. | 6.59B |
| GitLab Inc. | 6.17B |
| SoundHound AI, Inc. | 5.36B |
In summary, the main competitors in the software application market include both established firms and emerging players. This market is primarily focused on the North American region, reflecting a diverse range of solutions tailored for various applications.
Competitive Advantages
ServiceTitan, Inc. (TTAN) has established significant competitive advantages in the field service management software market. Its unique platform enhances operational efficiency for service providers in the residential and commercial sectors, streamlining processes from installation to maintenance. With a market cap of approximately 9.82B and a growing customer base, the company is poised for expansion into new markets and product innovations. Future opportunities include the integration of advanced analytics and AI-driven solutions, which could further enhance service delivery and customer satisfaction. This positions ServiceTitan strongly as it navigates the evolving landscape of technology in the service industry.
SWOT Analysis
The SWOT analysis helps identify the strengths, weaknesses, opportunities, and threats related to ServiceTitan, Inc. (TTAN).
Strengths
- Strong market position
- Innovative technology solutions
- Experienced management team
Weaknesses
- High dependency on specific sectors
- Limited international presence
- Recent IPO volatility
Opportunities
- Expanding market for field service software
- Potential for global expansion
- Increasing demand for automation
Threats
- Intense competition in the software sector
- Economic fluctuations affecting customer budgets
- Rapid technology changes
Overall, the SWOT assessment reveals that while ServiceTitan possesses significant strengths and opportunities for growth, it must navigate certain weaknesses and threats effectively to enhance its market position and sustain long-term success. Strategic focus on innovation and market expansion will be crucial.
Stock Analysis
In this analysis, I will evaluate ServiceTitan, Inc. (TTAN) based on its weekly stock price movements and trading dynamics over the past year, highlighting key price changes and trends.
Trend Analysis
Over the past year, ServiceTitan’s stock has experienced a percentage change of +5.6%, indicating a bullish trend. Despite this overall positive movement, the trend shows signs of deceleration, with the highest price recorded at 129.26 and the lowest at 85.07. The standard deviation of 10.19 suggests some level of volatility in its price movements.
Volume Analysis
In the last three months, the total trading volume for ServiceTitan reached approximately 208.78M shares, with buyer-driven volume accounting for 48.72% of the activity. Recently, trading volumes have been increasing. However, in the latest period, the buyer volume was at 29.08M, while seller volume reached 33.71M, indicating a slightly seller-dominant market with a buyer dominance percentage of 46.31%. This suggests a cautious investor sentiment as market participants appear to be more inclined to sell.
Analyst Opinions
Recent analyst recommendations for ServiceTitan, Inc. (TTAN) show a cautious stance. With a current rating of C+ and an overall score of 2, analysts highlight concerns regarding return on equity and price-to-earnings metrics, indicating potential challenges in profitability. Notably, the debt-to-equity score is a more favorable 4, suggesting manageable leverage. Analysts advise a “hold” position for now, as the consensus leans towards caution rather than outright buying or selling. Overall, the sentiment reflects a balanced approach to investment in TTAN for the current year.
Stock Grades
The stock ratings for ServiceTitan, Inc. (TTAN) indicate a consistent outlook from several reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| TD Cowen | Maintain | Buy | 2025-12-05 |
| Piper Sandler | Maintain | Overweight | 2025-12-05 |
| BMO Capital | Maintain | Outperform | 2025-12-05 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-05 |
| BMO Capital | Maintain | Outperform | 2025-11-20 |
| Piper Sandler | Maintain | Overweight | 2025-09-19 |
| Stifel | Maintain | Buy | 2025-09-19 |
| Wells Fargo | Maintain | Overweight | 2025-09-19 |
| Canaccord Genuity | Maintain | Buy | 2025-09-19 |
| Citigroup | Maintain | Neutral | 2025-09-09 |
Overall, the trend in grades shows a stable sentiment toward ServiceTitan, with multiple firms maintaining their positive ratings. The consistent “Buy” and “Overweight” recommendations suggest confidence in the company’s growth potential, although the “Equal Weight” from Morgan Stanley indicates a more cautious stance.
Target Prices
The consensus target prices for ServiceTitan, Inc. (TTAN) show a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 145 | 125 | 135.63 |
Overall, analysts expect ServiceTitan to reach a consensus target price of 135.63, indicating a balanced view between potential highs and lows.
Consumer Opinions
Consumer sentiment towards ServiceTitan, Inc. (TTAN) reflects a dynamic mix of appreciation and criticism, showcasing the company’s strengths and areas for improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| “ServiceTitan has transformed my business operations.” | “Customer support is often slow to respond.” |
| “The platform is user-friendly and intuitive.” | “Pricing can be high for smaller businesses.” |
| “Excellent integration with other tools!” | “Some features are still lacking or buggy.” |
Overall, consumer feedback indicates that while ServiceTitan excels in usability and operational efficiency, concerns about customer support and pricing persist, particularly among smaller enterprises.
Risk Analysis
In evaluating ServiceTitan, Inc. (TTAN), it’s crucial to understand the potential risks that could affect its performance. Below is a summary of significant risks.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand for home services could affect revenue. | High | High |
| Regulatory Risk | Changes in regulations affecting software solutions in the home service industry. | Medium | High |
| Competitive Risk | Intense competition may pressure profit margins and market share. | High | Medium |
| Cybersecurity Risk | Potential data breaches could harm reputation and lead to financial loss. | Medium | High |
| Operational Risk | Challenges in scaling operations as customer base grows. | Medium | Medium |
Among these risks, market and regulatory risks are particularly notable, given the current climate of economic uncertainty and evolving regulations in the tech space, which can significantly impact revenue and growth potential.
Should You Buy ServiceTitan, Inc.?
ServiceTitan, Inc. (TTAN) has demonstrated negative profitability with a net income of -239.09M in FY 2025, indicating a challenging financial landscape. The company has a debt-to-equity ratio of 0.114, suggesting a conservative debt level relative to its equity. Despite an impressive revenue growth of 25.64%, the fundamentals appear to be under pressure, and the company holds a C+ rating, implying potential concerns in investor confidence. Given that the return on invested capital (ROIC) is -0.142 versus a weighted average cost of capital (WACC) of 4.83, this indicates value destruction. Therefore, it might be prudent to assess the long-term implications before considering exposure to this stock.
Favorable signals
ServiceTitan, Inc. exhibits several favorable elements in its financial performance, including a revenue growth rate of 25.64%, a gross margin of 64.9%, and a gross profit growth of 33.0%. Additionally, the interest expense percentage is a favorable 2.01%, indicating manageable interest costs. The company also maintains a favorable debt-to-equity ratio of 0.11 and shows a favorable quick ratio of 3.74, demonstrating good short-term financial health.
Unfavorable signals
However, there are significant unfavorable signals present as well. The company reports a negative net margin of 30.98% and a negative return on equity (ROE) of 16.44%. Furthermore, its return on invested capital (ROIC) stands at -14.25%, indicating value destruction, while the EBIT margin is also negative at -28.67%. The interest coverage ratio is unfavorable at -14.26, and the earnings per share (EPS) growth is dramatically negative at -191.13%.
Conclusion
Given the unfavorable global opinion on both the income statement and financial ratios, and considering the recent seller volume exceeds the buyer volume, it might be prudent to wait for buyers to return before making any decisions regarding investment in ServiceTitan, Inc.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- ServiceTitan Stock’s Instant Leap: Will It Soar Higher? – StocksToTrade (Dec 06, 2025)
- What To Expect From ServiceTitan Inc (TTAN) Q3 2026 Earnings – Yahoo Finance (Dec 03, 2025)
- ServiceTitan pops as Piper Sandler praises after strong Q3 results, guidance (TTAN:NASDAQ) – Seeking Alpha (Dec 05, 2025)
- Seven Grand Managers LLC Has $28.94 Million Stake in ServiceTitan Inc. $TTAN – MarketBeat (Dec 03, 2025)
- Wall Street Bullish on ServiceTitan (TTAN) Ahead of Its Q3 2026 Results – Insider Monkey (Dec 03, 2025)
For more information about ServiceTitan, Inc., please visit the official website: servicetitan.com
