ServiceTitan (TTAN) Q3 2025 earnings summary

Executive summary

• Achieved 24% year-over-year revenue growth to $199.3M in Q3 FY25, with platform revenue up 26% and net dollar retention exceeding 110%.

• Gross Transaction Volume for Q3 FY25 was $17.8B, up 20% year-over-year.

• Completed IPO in December 2024, raising $672–$679M in net proceeds and retiring $311M in preferred stock.

• Focused on expanding platform, product suite, and customer base, with strong early adoption of new Pro products.

• Addressing a $650Bn–$1.5Tn trades market, leveraging a leadership position and deepening competitive moat.

Financial highlights

• Q3 total revenue reached $199.3M, up 24% YoY; subscription revenue was $145.3M (+27% YoY); usage revenue $45.9M (+23% YoY); professional services revenue $8.1M (-4% YoY).

• Non-GAAP platform gross margin was 77%–77.1%; total non-GAAP gross margin was 70.4%.

• Q3 non-GAAP operating income was $1.6M (margin nearly 1%, +350 bps YoY); free cash flow was $10.6M, up from -$6.2M YoY.

• Cash and equivalents stood at $133.8M as of October 31, 2024.

• Gross profit increased to $129.9M from $102.8M YoY; GAAP gross margin was 65%.

Outlook and guidance

• Q4 revenue guidance: $199–$201M, ~24% YoY growth; non-GAAP operating income: $3–$4M.

• FY25 revenue guidance: $761.6–$763.6M, ~24% YoY growth; non-GAAP operating income: $21.4–$22.4M.

• Long-term non-GAAP operating margin target is 25%; expect incremental margins above 26% for FY25.

• Management expects continued investment in growth, with revenue growth rates expected to fluctuate as the business scales.

• The company believes its cash, cash equivalents, and available credit are sufficient to support operations for at least the next 12 months.