ServiceTitan, Inc.

Previous wording

Our platform enables impactful outcomes for our customers, including accelerating revenue and driving operational efficiency, all while improving the experience for both end customers and contractors. As customers experience the significant business acceleration benefits of our platform, we have often observed our customers hire more technicians, increase gross transaction volume (“GTV”), representing total dollars invoiced by our customers to end customers through our platform, and adopt more add-on products. Increased customer adoption of our platform leads to further data and insights, allowing us to build more differentiated features and address opportunities in new trades, use cases and customer subsegments. All of this allows us to drive more growth and efficiency for customers, delivering outsized return on investment (“ROI”), in our products. For the three months ended April 30, 2025 and 2024, we processed $17.7 billion and $14.5 billion of GTV, respectively.

Current wording

Our platform enables impactful outcomes for our customers, including accelerating revenue and driving operational efficiency, all while improving the experience for both end customers and contractors. As customers experience the significant business acceleration benefits of our platform, we have often observed our customers hire more technicians, increase gross transaction volume (“GTV”), representing total dollars invoiced by our customers to end customers through our platform, and adopt more add-on products. Increased customer adoption of our platform leads to further data and insights, allowing us to build more differentiated features and address opportunities in new trades, use cases and customer subsegments. All of this allows us to drive more growth and efficiency for customers, delivering outsized return on investment (“ROI”), in our products. For the three and six months ended July 31, 2025, we processed $22.9 billion and $40.7 billion of GTV, respectively, and for the three and six months ended July 31, 2024, we processed $19.2 billion and $33.7 billion of GTV, respectively.

Previous wording

We empower technicians with the tools and training necessary to drive better end-customer outcomes that, in turn, can generate higher ticket sizes and more repeatable work orders. As our customers grow on our platform and expand into additional locations, generating more sales, hiring more technicians and automating more workflows, they can also significantly increase GTV, and, in turn, drive our growth and financial success.

Current wording

Grow with Our Customers. Our long-term revenue growth is correlated with the success of customers on our platform, and we strive to support the growth of their businesses. We can improve outcomes for our customers across every stage of the go-to-market funnel, from determining which end customers to target, marketing to those end customers effectively and converting and retaining end customers. We empower technicians with the tools and training necessary to drive better end-customer outcomes that, in turn, can generate higher ticket sizes and more repeatable work orders. As our customers grow on our platform and expand into additional locations, generating more sales, hiring more technicians and automating more workflows, they can also significantly increase GTV, and, in turn, drive our growth and financial success.

Previous wording

We offer tiered subscription plans for our Core and Pro products with varying contract lengths. Pursuant to these subscription contracts our customers do not have the ability to take possession of our proprietary software. For new customers, we primarily enter into either annual or multi-year subscription agreements with contract terms typically ranging from 12 to 36 months; however, certain Pro product and legacy customers are on month-to-month contracts. In nearly all cases, these contracts (monthly, annual, or multi-year) are renewed automatically unless cancelled in advance. We generally bill our customers on a monthly basis in advance of services, regardless of contract term. In some cases for certain products, the customer is billed in arrears. Pricing for these subscriptions are driven by the features included in the package and are linked to the size of the customer’s business, generally based on the number of field technicians at the customer but in some cases directly tied to the number of end customers or the customer’s revenue. In this way, our success is linked to the growth of our customers.

Current wording

We offer tiered subscription plans for our Core and Pro products with varying contract lengths. Pursuant to these subscription contracts our customers do not have the ability to take possession of our proprietary software. For new customers, we primarily enter into either annual or multi-year subscription agreements with contract terms typically ranging from 12 to 36 months; however, certain Pro product and legacy customers are on month-to-month contracts. In nearly all cases, these contracts (monthly, annual, or multi-year) are renewed automatically unless cancelled in advance, and the majority of our auto-renewing contracts renew for one-year terms rather than multi-year commitments. We generally bill our customers on a monthly basis in advance of services, regardless of contract term. In some cases for certain products, the customer is billed in arrears. Pricing for these subscriptions are driven by the features included in the package and are linked to the size of the customer’s business, generally based on the number of field technicians at the customer but in some cases directly tied to the number of end customers or the customer’s revenue. In this way, our success is linked to the growth of our customers.

Previous wording

Platform revenue increased by $44.8 million, or 27%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. This increase was primarily driven by subscription revenue, which increased by $36.7 million, or 29%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. In addition, revenue from our usage-based products increased by $8.1 million, or 22%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. This increase was primarily driven by increases in both the volume and types of payment transactions processed using our FinTech offerings.

Current wording

Platform revenue increased by $47.7 million, or 26%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. This increase was primarily driven by subscription revenue, which increased by $37.1 million, or 27%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. In addition, revenue from our usage-based products increased by $10.7 million, or 23%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. This increase was primarily driven by increases in gross transaction volume and higher earn rate generated on that volume.

Previous wording

Professional services and other revenue increased by $0.6 million, or 9%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. This increase was primarily driven by a higher volume of services performed.

Current wording

Professional services and other revenue increased by $1.4 million, or 18%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. This increase was primarily driven by a higher volume of services performed.

Previous wording

Platform cost of revenue increased by $2.3 million, or 5%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. The increase was primarily due to a $4.1 million increase in costs to deliver our Core, Pro, and FinTech products driven by the increase in our subscription and usage-based revenue and a $1.6 million increase in amortization of capitalized internally developed software. These increases were partially offset by a decrease of $1.9 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use. In addition, personnel-related costs decreased $1.2 million due to the shift in the roles of our customer success function to sales and marketing activities at the beginning of fiscal 2026. Platform gross margin increased to 75.9% for the three months ended April 30, 2025, compared to 70.7% for the three months ended April 30, 2024, primarily due to the shift of certain customer success costs to sales and marketing, a decrease in impairment losses on operating lease assets and related property and equipment, and improved efficiencies in delivering our platform at scale.

Current wording

Platform cost of revenue increased by $2.8 million, or 6%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The increase was primarily due to a $3.4 million increase in costs to deliver our Core, Pro, and FinTech products driven by the increase in our subscription and usage-based revenue and a $1.4 million increase in amortization of capitalized internally developed software. These increases were partially offset by a decrease of $1.4 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use. In addition, personnel-related costs decreased $0.4 million primarily due to the shift in the roles of our customer success function to sales and marketing activities at the beginning of fiscal 2026. Platform gross margin increased to 77.7% for the three months ended July 31, 2025, compared to 73.4% for the three months ended July 31, 2024, primarily due to the shift of certain customer success costs to sales and marketing, a decrease in impairment losses on operating lease assets and related property and equipment and improved efficiencies in delivering our platform at scale.

Previous wording

Professional services and other cost of revenue increased by $0.7 million, or 4%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. The increase was primarily due to an increase of $2.4 million in personnel-related costs driven by an increase in headcount. This increase was partially offset by a decrease of $0.7 million in third-party consulting costs, a decrease of $0.6 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use, and a decrease of $0.5 million of amortization of acquired intangible assets. Professional services and other gross margin improved to (123.9)% for the three months ended April 30, 2025, compared to (133.6)% for the three months ended April 30, 2024, due to the increase in revenue.

Current wording

Professional services and other cost of revenue increased by $1.9 million, or 11%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The increase was primarily due to an increase of $2.8 million in personnel-related costs driven by an increase in headcount. This increase was partially offset by a decrease of $0.7 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use and a decrease of$0.5 million in third-party consulting costs. Professional services and other gross margin improved to (99.9)% for the three months ended July 31, 2025, compared to (111.7)% for the three months ended July 31, 2024, primarily due to cost savings from reduced third-party professional services fees.

Previous wording

Sales and marketing expense increased by $11.6 million, or 20%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. The increase in sales and marketing expense was primarily driven by an increase of $10.5 million in personnel-related costs resulting from an increase in headcount and, beginning in fiscal 2026, we shifted the roles of our customer success function to focus on both customer retention and customer expansion, and as a result, certain customer success costs are now being recorded in sales and marketing. In addition, marketing and advertising costs increased $2.9 million for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. These increases were partially offset by a decrease of $1.9 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Current wording

Sales and marketing expense increased by $11.3 million, or 19%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The increase in sales and marketing expense was primarily driven by an increase of $12.3 million in personnel-related costs, which included a $2.8 million increase in stock-based compensation expense, driven by an increase in headcount and, beginning in fiscal 2026, we shifted the roles of our customer success function to focus on both customer retention and customer expansion, and as a result, certain customer success costs are now being recorded in sales and marketing. In addition, there was an increase in marketing and advertising costs of $1.0 million for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. These increases were partially offset by a decrease of $1.8 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Previous wording

Research and development expense increased by $10.5 million, or 18%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. The increase in research and development expense was primarily driven by an increase of $11.2 million in personnel-related costs, which included $3.6 million increase in stock-based compensation expense driven by an increase in headcount. These increases were partially offset by a decrease of $1.8 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Current wording

Research and development expense increased by $10.6 million, or 17%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The increase in research and development expense was primarily driven by an increase of $12.5 million in personnel-related costs, which included $2.2 million increase in stock-based compensation expense, driven by an increase in headcount. These increases were partially offset by a decrease of $1.8 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Previous wording

General and administrative expense increased by $16.4 million, or 38%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. The increase in general and administrative expense was primarily driven by a $20.6 million increase in personnel-related costs primarily driven by an increase of $18.0 million in stock-based compensation. The increase in stock-based compensation includes $13.1 million related to performance-based RSUs granted to our Co-Founders in October 2024. In addition, our allowance for credit losses increased $2.9 million for the three months ended April 30, 2025, compared to the three months ended April 30, 2024 as we further integrated acquired businesses and aligned our processes. These increases were partially offset by a decrease of $5.9 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use. Additionally, the three months ended April 30, 2024 included acquisition-related costs of $2.1 million.

Current wording

General and administrative expense increased by $24.7 million, or 64%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The increase in general and administrative expense was primarily driven by a $24.5 million increase in personnel-related costs primarily driven by an increase of $20.5 million in stock-based compensation. The increase in stock-based compensation includes $13.5 million related to performance-based RSUs granted to our Co-Founders in October 2024. Additionally, there was an increase of $3.0 million in third-party consulting costs related to legal, consulting and audit services. These increases were partially offset by a decrease of $4.5 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.

Previous wording

Other income, net, was $3.4 million for the three months ended April 30, 2025, compared to other expense, net, of $2.2 million for the three months ended April 30, 2024. The increase was primarily due to a $3.2 million increase in interest income due to a higher cash balance as well as a decrease in interest expense of $2.1 million due to a lower debt balance in the three months ended April 30, 2025 resulting from the repayment of all amounts outstanding under our Revolver Facility that occurred in January 2025.

Current wording

Other income, net, was $2.9 million for the three months ended July 31, 2025, compared to other expense, net, of $2.6 million for the three months ended July 31, 2024. The increase was primarily due to a $3.1 million increase in interest income due to a higher cash balance as well as a decrease in interest expense of $2.2 million due to a lower debt balance in the three months ended July 31, 2025 resulting from the repayment of all amounts outstanding under our Revolver Facility that occurred in January 2025.

Previous wording

Our provision for income taxes decreased by $0.2 million, or 42%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. The change was primarily driven by a decrease in certain state taxes for the three months ended April 30, 2025.

Current wording

Our provision for income taxes decreased by $0.3 million, or 31%, for the six months ended July 31, 2025 compared to the six months ended July 31, 2024. The change was primarily driven by a decrease in certain state taxes for the six months ended July 31, 2025.

Previous wording

Restructuring charges. To better align our strategic priorities with our investments, we have periodically implemented workforce reductions. In connection with these reductions, we incurred employee-related expenses including severance and other termination benefits. We excluded these charges when assessing our actual performance and when budgeting, planning and forecasting future periods.

Current wording

Restructuring charges. To better align our strategic priorities with our investments, we have periodically implemented workforce reductions. In connection with these reductions, we have incurred employee-related expenses including severance and other termination benefits. We excluded these charges when assessing our actual performance and when budgeting, planning and forecasting future periods.

Previous wording

We define free cash flow, a non-GAAP measure, as 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.

Current wording

We define free cash flow, a non-GAAP measure, as GAAP net cash provided by 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.

Previous wording

Since our inception, we have financed our operations, capital expenditures and acquisitions primarily through issuance of redeemable convertible preferred stock, non-convertible preferred stock, and debt as well as through payments received from our customers. As of April 30, 2025, we had cash and cash equivalents of $420.3 million and $140.0 million available under the Credit Agreement, as defined below. Cash and cash equivalents consisted of checking accounts and money market funds with maturities less than 90 days from the date of purchase.

Current wording

Since our inception, we have financed our operations, capital expenditures and acquisitions primarily through issuance of redeemable convertible preferred stock, non-convertible preferred stock, and debt as well as through payments received from our customers. As of July 31, 2025, we had cash and cash equivalents of $471.5 million and $140.0 million available under the Credit Agreement, as defined below. Cash and cash equivalents consisted of checking accounts and money market funds with maturities less than 90 days from the date of purchase.

Previous wording

In January 2023, we entered into a secured credit agreement with Wells Fargo Bank N.A., as administrative agent and collateral agent, and certain lenders. In September 2024, we entered into an amendment to the secured credit agreement, effective October 1, 2024 (as amended, the “Credit Agreement”) that converted our existing term loan balance of $177.3 million and $70.0 million revolver facility to a term loan of $107.3 million (as amended, the“Term Loan”) and a revolver facility of $140.0 million, of which $70.0 million was initially drawn (as amended, the“Revolver Facility”). In January 2025 we repaid all amounts outstanding under the Revolver Facility. The Credit Agreement contains the standard and customary covenants for agreements of this type, including various reporting, affirmative and negative covenants. Among other things, these covenants set forth minimum revenue thresholds, require the maintenance of minimum liquidity and establish certain limits to our and our subsidiaries’ ability to create or incur liens on assets, make acquisitions of or investments in businesses, engage in any material line of business substantially different from our current lines of business, incur additional indebtedness or contingent obligations, sell or dispose of assets, pay dividends and make loans or advances to employees.

Current wording

In January 2023, we entered into a secured credit agreement with Wells Fargo Bank, N.A., as administrative agent and collateral agent, and certain lenders. In September 2024, we entered into an amendment to the secured credit agreement, effective October 1, 2024 (as amended, the “Credit Agreement”) that converted our existing term loan balance of $177.3 million and $70.0 million revolver facility to a term loan of $107.3 million (as amended, the“Term Loan”) and a revolver facility of $140.0 million, of which $70.0 million was initially drawn (as amended, the“Revolver Facility”). In January 2025 we repaid all amounts outstanding under the Revolver Facility.

Previous wording

As of April 30, 2025, we had total debt of $104.9 million, consisting of the outstanding principal balance of the Term Loan of $106.8 million, net of unamortized debt issuance costs of $1.8 million. There was no balance drawn under the Revolver Facility.

Current wording

As of July 31, 2025, we had total debt of $104.8 million, consisting of the outstanding principal balance of the Term Loan of $106.5 million, net of unamortized debt issuance costs of $1.7 million. There was no balance drawn under the Revolver Facility.

Previous wording

Net cash used in operating activities was $14.6 million for the three months ended April 30, 2025. This primarily related to our net loss of $46.4 million and net cash outflows of $49.1 million from changes in our operating assets and liabilities. These were partially offset by non-cash charges of $80.9 million. The primary drivers of the changes in our operating assets and liabilities related to a decrease in accrued personnel related expenses of $40.6 million as annual corporate bonuses are paid in the first fiscal quarter, an increase in deferred contract costs and contract assets of $7.1 million, an increase of $5.3 million in accounts receivable, and a decrease of lease liabilities of $3.2 million. These were partially offset by an increase of $4.0 million in accounts payable and other accrued expenses, a decrease in prepaid expenses and other assets of $2.2 million and an increase in other liabilities of $1.2 million.

Current wording

Net cash provided by operating activities was $25.8 million for the six months ended July 31, 2025. This primarily related to our net loss of $78.6 million and net cash outflows of $53.5 million from changes in our operating assets and liabilities. These were partially offset by non-cash charges of $157.8 million. The primary drivers of the changes in our operating assets and liabilities related to a decrease in accrued personnel related expenses of $21.7 million, an increase in deferred contract costs and contract assets of $13.7 million, an increase of $12.7 million in accounts receivable, and a decrease of lease liabilities of $6.2 million. These were partially offset by an increase of $2.9 million in accounts payable and other accrued expenses, an increase in prepaid expenses and other current assets of $8.5 million and an increase in other liabilities of $5.2 million.

Previous wording

Net cash used in operating activities was $19.2 million for the three months ended April 30, 2024. This primarily related to our net loss of $56.0 million, adjusted for non-cash charges of $65.6 million and net cash outflows of $28.8 million for changes in our operating assets and liabilities. The primary drivers of the changes in our operating assets and liabilities related to a decrease in accrued personnel related expenses of $27.2 million as annual corporate bonuses are paid in the first fiscal quarter, an increase in accounts receivable of $4.6 million, an increase in deferred contract costs and contract assets of $3.2 million, and a decrease in lease liabilities of $1.0 million. These were partially offset by an increase of $4.3 million in accounts payable and other accrued expenses, a decrease in prepaid expenses and other assets of $2.2 million and an increase in other liabilities of $0.9 million.

Current wording

Net cash provided by operating activities was $6.1 million for the six months ended July 31, 2024. This primarily related to our net loss of $91.7 million and net cash outflows of $27.5 million from changes in our operating assets and liabilities, adjusted for non-cash charges of $125.3 million. The primary drivers of the changes in our operating assets and liabilities relate to an increase in accounts receivable of $11.1 million, a decrease in deferred contract costs and contract assets of $8.2 million, a decrease in accrued personnel-related expenses of $3.4 million, a decrease of lease liabilities of $3.9 million, and an increase in prepaid expenses and other current assets of $3.4 million. These were partially offset by an increase in deferred revenue of $1.3 million. The changes in our operating assets and liabilities were primarily due to the growth of our business, timing of cash receipts from customers, timing of cash payments to our vendors and timing of payroll.

Previous wording

Net cash used in investing activities was $7.8 million for the three months ended April 30, 2025. This consisted of cash outflows of $6.5 million for the investments in capitalized internal-use software and $1.3 million for the purchase of property and equipment.

Current wording

Net cash used in investing activities was $13.8 million for the six months ended July 31, 2025. This consisted of cash outflows of $11.4 million for the investments in capitalized internal-use software and $2.4 million for the purchase of property and equipment.

Previous wording

Net cash used in investing activities was $6.6 million for the three months ended April 30, 2024. This consisted of cash outflows of $4.8 million for the investments in capitalized internal-use software and $0.6 million for the purchase of property and equipment, and $1.2 million of cash paid, net of cash acquired for the acquisition of Convex.

Current wording

Net cash used in investing activities was $13.2 million for the six months ended July 31, 2024. This consisted of cash outflows of $10.2 million for the investments in capitalized internal-use software and $1.8 million for the purchase of property and equipment, and $1.2 million of cash paid, net of cash acquired for the acquisition of Convex.

Previous wording

Net cash provided by financing activities was $0.4 million for the three months ended April 30, 2025. This consisted primarily of proceeds from the exercise of stock options of $1.2 million. This was partially offset by payments related to IPO costs of $0.5 million and the repayment of debt of $0.3 million.

Current wording

Net cash provided by financing activities was $17.3 million for the six months ended July 31, 2025. This consisted primarily of proceeds from the exercise of stock options of $18.4 million. This was partially offset by payments related to IPO costs of $0.6 million and the repayment of debt of $0.5 million.

Previous wording

Net cash used in financing activities was $5.1 million for the three months ended April 30, 2024. This consisted primarily of the repurchase of shares for the tax withholdings upon settlement of RSUs of $5.3 million, the payment of deferred offering costs of $0.6 million, and the repayment of debt of $0.5 million. These were partially offset by proceeds of $1.4 million from the exercise of stock options.

Current wording

Net cash used in financing activities was $12.4 million for the six months ended July 31, 2024. This consisted primarily of the repurchase of shares for the tax withholdings upon settlement of RSUs of $13.6 million, payments related to initial public offering costs of $0.8 million and the repayment of debt of $0.9 million. These were partially offset by proceeds from the exercise of stock options of $3.2 million.