$TTAN · ServiceTitan, Inc.

ServiceTitan filed an 8-K with its fiscal Q2 FY2027 earnings press release (quarter ended July 31, 2026). Total revenue grew 21% YoY to $292.8M, with platform revenue up 22% to $284.5M. GAAP net loss narrowed to $24.9M (-$0.26/share) from -$32.2M a year ago. Non-GAAP operating income reached $44.4M (15.2% margin), and non-GAAP free cash flow was $50.5M. The company guided Q3 FY2027 revenue to $285M-$287M — a sequential decline from Q2 — and full-year revenue to $1,139M-$1,144M. Full-year non-GAAP operating income guidance is $152M-$154M.

Stock fell 7.21% in the regular session to $81.58 and is down an additional 3.21% since filing in after-hours trading. The sequential revenue decline guide for Q3 is the likely driver of the selloff, overshadowing improved profitability metrics.

A SaaS company guiding for sequential quarterly revenue decline is a red flag that overrides strong profitability improvement, especially when the stock was already down 7% before the print.

ServiceTitan's revenue deceleration from 25% to 21% YoY and guided sequential decline mirrors broader SaaS slowdown concerns, though its 15.2% non-GAAP operating margin and $50.5M free cash flow show improving unit economics that peers like Procore and Toast have also prioritized.

The Q3 guidance implies negative sequential revenue growth, which could signal slowing demand or churn in the contractor end-market. R&D expense jumped 38% YoY to $100.6M, and if AI investments don't convert to sustained revenue growth, margin expansion may stall.