$TTAN · ServiceTitan, Inc.

ServiceTitan filed its 10-Q for the quarter ended July 31, 2026. Total revenue grew 20.9% YoY to $292.8M, driven by platform revenue of $284.5M (+22% YoY). Gross margin was 71.4%. Net loss narrowed to $24.9M from $32.2M a year ago. Operating loss improved to $27.6M from $34.8M. Stock-based compensation expense rose to $60.6M (vs. $49.3M), with R&D SBC alone at $23.8M. The company held $1.6B in total stockholders' equity against an accumulated deficit of $1.31B.

TTAN dropped 7.21% in the regular session to $81.58, and is down an additional 3.21% since the filing. The selloff suggests investors are weighing the 23% SBC surge and 38% R&D cost jump against the narrowing losses and 21% top-line growth.

ServiceTitan's improving operating leverage is offset by ballooning stock-based compensation and aggressive R&D spend, creating a tension between GAAP progress and dilution concerns that matters for a $7.8B vertical SaaS name still deeply unprofitable on a cumulative basis.

ServiceTitan's 71.4% gross margin and 21% revenue growth remain strong for vertical SaaS, but SBC at ~21% of revenue is elevated versus peers. The heavy R&D investment mirrors broader software-sector AI arms-race dynamics.

The 10-Q flags history of losses and no assurance of achieving profitability; rapid growth may not be indicative of future trajectory; AI/GenAI integration presents operational and reputational risks; and the multi-class stock structure concentrates voting power with insiders.