ServiceTitan, Inc.
For the period ended Apr 30, 2026. Filed Jun 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 30, 2026 · Filed Jun 5, 2026
TTAN$81.77-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-10-31; filed 2025-12-09.
0001193125-25-312847
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-04-30; filed 2026-06-05.
0001638826-26-000047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 130 previous paragraphs and 128 current paragraphs.
65 unchanged; 41 reworded; 20 added; 23 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 27 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
We serve customers ranging from family-owned businesses with a few employees to large enterprises with a national footprint, some of which are an aggregation of multiple customers through a franchise network or other common buying partners. We define a customer as a parent organization, which may have multiple locations, brands or subsidiaries, that has been billed in the prior three months, and of those customers we define “Active Customers” as customers with over $10,000 of annualized billings. As of January 31, 2026, we had approximately 10,800 Active Customers representing over 97% of our annualized billings for fiscal 2026. As of April 30, 2026, we have surpassed 2,000 total customers with annualized billings greater than $100,000, which represents more than 60% of our total annualized billings as of April 30, 2026.
Current report
Cost of Revenue
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Operating Expenses
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Sales and Marketing Expense
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Research and Development Expense
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General and Administrative Expense
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Other Income (Expense), Net
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Cost of Revenue
Current report
Professional services and other cost of revenue increased by $2.3 million, or 13%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. The increase was primarily due to an increase of $2.4 million in personnel-related costs driven by an increase in headcount.
Current report
Operating Expenses
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Sales and Marketing Expense
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Sales and marketing expense increased by $3.8 million, or 6%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. The increase in sales and marketing expense was primarily driven by an increase of $5.2 million in personnel-related costs, which included an increase of $3.3 million driven by an increase in headcount, $1.1 million in stock-based compensation expense, and $0.6 million in sales commissions. 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 office spaces that we ceased to use.
Current report
Research and Development Expense
Current report
Research and development expense increased by $18.9 million, or 27%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. The increase in research and development expense was primarily driven by an increase of $16.7 million in personnel-related costs due to increased headcount, including hiring of senior level personnel to support the engineering function as we continue to scale our team. The increase in personnel-related costs also includes an $8.4 million increase in stock-based compensation expense associated with the increased headcount. There was an additional increase of $2.5 million in technology spend as a result of our continued investment in AI. These increases were partially offset by a decrease of $1.7 million of impairment losses on operating lease assets and related property and equipment for office spaces that we ceased to use.
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General and Administrative Expense
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Other Income, Net
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(1) Effective February 1, 2026, we adopted a fixed long-term projected non-GAAP tax rate of 18%, which reflects currently available information as well as other factors and assumptions that may change over time.
Current report
Our primary cash needs are for personnel-related expenses, costs related to the provisioning of our platform services, and sales and marketing expenses. The first quarter of our fiscal year is typically the largest operating cash outflow quarter due to the payout of our annual bonuses.
Current report
In January 2023, we entered into a secured credit agreement (the “Original Credit Agreement”) with Wells Fargo Bank N.A., as administrative agent and collateral agent, and certain lenders. In September 2024, we amended the Original Credit Agreement (the “First Amendment”) to, among other things, convert our existing term loan to a new term loan balance and a revolving credit facility. On January 30, 2026, we entered into a second amendment (the “Second Amendment”) to the Original Credit Agreement (as amended by the First Amendment and the Second Amendment, the “Amended Credit Agreement”) that increased the total borrowing capacity of the revolving credit facility made available under the Amended Credit Agreement from $140.0 million to $250.0 million and extended the term of the Amended Credit Agreement through January 30, 2031.
Current report
In addition, the Second Amendment (i) modified pricing and unused commitment fees payable under the Amended Credit Agreement to be based on total net leverage rather than recurring revenue, (ii) replaced the recurring revenue and liquidity financial covenants in the Original Credit Agreement with a total net leverage financial covenant, and (iii) modified certain negative covenants, including liens, indebtedness, investments, dispositions, restricted payments and restricted debt payments, to provide us with more flexibility thereunder. Prior to entering into the Second Amendment we voluntarily repaid, in full, the approximately $107.0 million term loan that was outstanding under the Original Credit Agreement. As of April 30, 2026, no loans were outstanding under the Amended Credit Agreement.
Removed paragraphs (23)
Previous report
Included in U.S. H.R. 1 (119th Congress), which was signed into law in July 2025, are certain changes to the Internal Revenue Code including, but not limited to, deductions for domestic research and development expenditures and federal bonus depreciation. As the legislation was enacted within the nine months ended October 31, 2025, the Company has considered and reflected the impacts on the condensed consolidated financial statements. Due to our current year loss before income taxes and valuation allowance, the legislation did not have a material impact on the condensed consolidated financial statements for the nine months ended October 31, 2025, nor is it expected to have a material impact on the condensed consolidated financial statements for the full fiscal year 2026.
Previous report
Professional services and other cost of revenue increased by $1.2 million, or 7%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. The increase was primarily due to an increase of $1.6 million in personnel-related costs driven by an increase in headcount. This increase was partially offset by 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. Professional services and other gross margin improved to (91.0)% for the three months ended October 31, 2025, compared to (111.8)% for the three months ended October 31, 2024, primarily due to cost savings from reduced third-party professional services fees.
Previous report
Sales and marketing expense increased by $10.5 million, or 15%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. The increase in sales and marketing expense was primarily driven by an increase of $8.1 million in personnel-related costs, which included an increase of $2.4 million in stock-based compensation expense and an increase of $1.9 million in commissions. This increase in personnel-related costs was primarily 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.
Previous report
Research and development expense increased by $12.6 million, or 19%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. The increase in research and development expense was primarily driven by an increase of $10.4 million in personnel-related costs, which included a $4.0 million increase in stock-based compensation expense, driven by an increase in headcount, and an increase of $2.0 million in infrastructure and server costs. These increases were partially offset by a decrease of $1.5 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.
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Comparison of the Nine Months Ended October 31, 2025 and 2024
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Revenue
Previous report
Professional services and other revenue increased by $3.5 million, or 15%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. This increase was primarily driven by a higher volume of services performed.
Previous report
Platform cost of revenue increased by $7.4 million, or 5%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. The increase was primarily due to a $12.5 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 $4.1 million increase in amortization of capitalized internally developed software. These increases were partially offset by a decrease of $4.4 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 $4.3 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, and depreciation expense decreased by $1.2 million. Platform gross margin increased to 77.0% for the nine months ended October 31, 2025, compared to 72.3% for the nine months ended October 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 report
Professional services and other cost of revenue increased by $3.7 million, or 7%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. The increase was primarily due to an increase of $5.8 million in personnel-related costs driven by an increase in headcount and an increase of $1.7 million in employee benefit expenses primarily related to health insurance. 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 and a decrease of$1.7 million in third-party consulting costs. Professional services and other gross margin improved to (103.6)% for the nine months ended October 31, 2025, compared to (118.5)% for the nine months ended October 31, 2024, primarily due to cost savings from a decrease in impairment loss that was recognized in the prior period and reduced third-party professional services fees.
Previous report
Sales and marketing expense increased by $33.4 million, or 18%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. The increase in sales and marketing expense was primarily driven by an increase of $28.7 million in personnel-related costs, which included a $6.9 million increase in stock-based compensation expense related to new equity granted as part of our annual performance cycle, as well as expense associated with equity awards that began vesting upon the successful completion of our IPO. This increase in personnel-related costs also included an increase of $2.6 million in sales commissions. There was an additional increase of $4.1 million in employee benefit expenses primarily related to health insurance and $3.5 million in marketing and advertising costs. Additionally, 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. These increases were partially offset by a decrease of $5.1 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 report
Research and development expense increased by $33.7 million, or 18%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. The increase in research and development expense was primarily driven by an increase of $32.5 million in personnel-related costs, which included a $9.8 million increase in stock-based compensation expense, driven by an increase in headcount, an increase of $3.7 million in employee benefit expenses primarily related to health insurance and an increase of $3.2 million in infrastructure and server costs. These increases were partially offset by a decrease of $5.0 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 report
General and administrative expense increased by $62.6 million, or 51%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. The increase in general and administrative expense was primarily driven by a $63.9 million increase in personnel-related costs primarily driven by an increase of $56.5 million in stock-based compensation. The increase in stock-based compensation includes $40.1 million related to performance-based RSUs granted to our Co-Founders in October 2024. The remainder of the increase reflected new awards issued as part of our annual performance cycle and expense associated with equity awards that began vesting upon the successful completion of our IPO. Additionally, there was an increase of $5.3 million in third-party consulting costs related to legal, consulting and audit services, and our allowance for credit losses increased $4.5 million for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024 as we further integrated acquired businesses and aligned our processes. There was an additional increase of $2.2 million in corporate insurance and employee benefit expenses primarily related to health insurance. These increases were partially offset by a decrease of $14.1 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 report
Other income, net, was $9.6 million for the nine months ended October 31, 2025, compared to other expense, net, of $6.8 million for the nine months ended October 31, 2024. The increase was primarily due to a $9.7 million increase in interest income due to a higher cash balance, as well as a decrease in interest expense of $6.2 million due to a lower debt balance in the nine months ended October 31, 2025 resulting from the repayment of all amounts outstanding under our Revolver Facility that occurred in January 2025.
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Provision for Income Taxes
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Our provision for income taxes decreased by less than $0.1 million, or 5%, for the nine months ended October 31, 2025 compared to the nine months ended October 31, 2024. The change is primarily driven by the variability in the income (loss) before income taxes of our foreign subsidiaries and their related tax effects and a release of a portion of the Company’s U.S. valuation allowance due to the acquisition of Conduit that occurred during the nine months ended October 31, 2025.
Previous report
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 report
(1) This amount represents adjustments for the current and deferred income tax effects on non-GAAP net income (loss) for the impact of the non-GAAP adjustments above.
Previous report
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.
Previous report
The Term Loan and Revolver Facility will mature in January 2028 and bear interest at a floating rate at our option of either (i) a term Secured Overnight Financing Rate (“SOFR”), based rate for a specified interest period plus an applicable margin, which is initially 2.5% per annum and ranges from 2.25% to 3.00% per annum based on a ratio of outstanding debt to annual recurring revenue, or (ii) a base rate plus an applicable margin, which is initially 1.5% per annum and ranges from 1.25% to 2.0% per annum based on the ratio of total outstanding debt to annual recurring revenue. On the first day of each calendar quarter, we were required to repay an aggregate principal amount equal to 0.25% of the aggregate original principal amount of the Term Loan, which repayment amount became fixed at approximately $0.3 million beginning January 1, 2025. The Revolver Facility will incur a 0.25% annual fee for undrawn amounts.
Previous report
As of October 31, 2025, we had total debt of $104.6 million, consisting of the outstanding principal balance of the Term Loan of $106.2 million, net of unamortized debt issuance costs of $1.6 million. There was no balance drawn under the Revolver Facility.
Previous report
Net cash used in financing activities was $17.3 million for the nine months ended October 31, 2024. This consisted primarily of the repurchase of shares for the tax withholdings upon settlement of RSUs of $19.0 million, the repayment of debt of $1.4 million, and payments related to IPO costs of $0.9 million. These were partially offset by proceeds from the exercise of stock options of $4.3 million.
Previous report
JOBS Act Accounting Election
Previous report
As of the filing of this Quarterly Report, we are an emerging growth company (“EGC”), as defined in the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”). Under the JOBS Act, EGCs can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We have elected to use this extended transition period until we are no longer an EGC or until we affirmatively and irrevocably opt out of the extended transition period. As a result, our condensed consolidated financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies. As of July 31, 2025, our aggregate worldwide market value of common equity held by non-affiliates exceeded $700 million. As we meet all other applicable criteria under the Exchange Act, we expect that we will lose EGC status and become a large accelerated filer as of January 31, 2026.
Reworded paragraphs (41)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report. This discussion contains forward-looking statements that involve risks and uncertainties and our actual results, events or circumstances could differ materially from those described in forward-looking statements. Factors that could cause or contribute to such differences include those identified below and those discussed in the section titled “Risk Factors” and other parts of this Quarterly Report. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. The last day of our fiscal year is January 31, and our fiscal quarters end on April 30, July 31, October 31 and January 31. Our fiscal years ended January 31, 2025 and 2026 are referred to herein as fiscal 2025 and fiscal 2026, respectively. Unless the context otherwise requires, all references in this Quarterly Report to “we,” “us,” “our,” “our company,” and “ServiceTitan” refer to ServiceTitan, Inc. and its consolidated subsidiaries, and references to our “common stock” include our Class A common stock, Class B common stock and Class C common stock.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report. This discussion contains forward-looking statements that involve risks and uncertainties and our actual results, events or circumstances could differ materially from those described in forward-looking statements. Factors that could cause or contribute to such differences include those identified below and those discussed in the section titled “Risk Factors” and other parts of this Quarterly Report. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. The last day of our fiscal year is January 31, and our fiscal quarters end on April 30, July 31, October 31 and January 31. Our fiscal year ended January 31, 2026 is referred to herein as fiscal 2026. Unless the context otherwise requires, all references in this Quarterly Report to “we,” “us,” “our,” “our company,” and “ServiceTitan” refer to ServiceTitan, Inc. and its consolidated subsidiaries, and references to our “common stock” include our Class A common stock, Class B common stock and Class C common stock.
Previous wording
ServiceTitan was born in the trades and built for the trades. Our founders, Ara Mahdessian and Vahe Kuzoyan (our “Co-Founders”), founded ServiceTitan to provide tradespeople, like their parents, with technology that is purpose built to help trades businesses thrive.
Current wording
ServiceTitan was born in the trades and built for the trades. Our founders, Ara Mahdessian and Vahe Kuzoyan (our “Co-Founders”), are the sons of trades business owners and founded ServiceTitan to provide tradespeople, like their parents, with technology that is purpose built to help trades businesses thrive.
Previous wording
Our software provides an end-to-end, cloud-based software platform that connects and manages a wide array of business workflows such as advertising, job scheduling and management, dispatching, generating estimates and invoices, payment processing and more. Tradespeople spend their days interfacing with the ServiceTitan platform across what we believe to be the five most business-critical functions, or the “core centers of gravity,” inside a trades business: CRM (customer relationship management, including sales enablement, marketing automation and customer service), FSM (field service management, including scheduling and dispatching), ERP (enterprise resource planning, including inventory), HCM (human capital management, including compensation and payroll integration) and FinTech (including payments and third-party consumer financing). By offering interoperable capabilities in all five centers of gravity, we continuously capture comprehensive data insights across key workflows in a trades business.
Current wording
Our software provides an end-to-end, cloud-based software platform that connects, manages, and automates a wide array of business workflows such as advertising, job scheduling and management, dispatching, generating estimates and invoices, payment processing and more. Tradespeople spend their days interfacing with the ServiceTitan platform across what we believe to be the five most business-critical functions, or the “core centers of gravity,” inside a trades business: CRM (customer relationship management, including sales enablement, marketing automation and customer service), FSM (field service management, including scheduling and dispatching), ERP (enterprise resource planning, including inventory), HCM (human capital management, including compensation and payroll integration) and FinTech (including payments and third-party consumer financing). By offering interoperable capabilities in all five centers of gravity, we continuously capture comprehensive data insights across key workflows in a trades business.
Previous wording
Our close customer proximity and deep connection with the industry enable us to make evidence-based recommendations that can improve our customers’ business outcomes by identifying and replicating what works and fixing what does not. Our insights are augmented by the vast amounts of structured and unstructured data that we synthesize into best practices. These insights are then delivered across automated workflows, many of which we enhance with artificial intelligence (“AI”), to address the distinct vertical-specific needs of the trades.
Current wording
Our close customer proximity and deep connection with the industry enable us to make evidence-based recommendations that can improve our customers’ business outcomes by identifying and replicating what works and fixing what does not. Our insights are augmented by the vast amounts of structured and unstructured data that we synthesize into best practices. These insights are then delivered across automated workflows, many of which we enhance with artificial intelligence (“AI”), to address the distinct vertical-specific needs of the trades. In addition, in fiscal 2026, we began a pilot of Max, which packages our most advanced functionality and AI features with expert guidance to unlock AI automation.
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 and nine months ended October 31, 2025, we processed $21.7 billion and $62.4 billion of GTV, respectively, and for the three and nine months ended October 31, 2024, we processed $17.8 billion and $51.5 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 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 considerable return on investment (“ROI”), in our products. For the three months ended April 30, 2026 and 2025, we processed $21.7 billion and $17.7 billion of GTV, respectively.
Previous wording
Increase GTV By Serving Additional Customers in Existing Trades and Markets. Our ability to increase GTV also depends on our ability to serve additional customers in existing trades and markets. As our platform has deepened and expanded in features, we have been able to serve larger customers. The trades industry is also experiencing an influx of professional operators, including private equity owners, who are investing in and consolidating the trades, in many cases on our platform. Because of these dynamics, we focus on increasing the GTV on our platform, rather than new customer count. We believe our market opportunity is substantial, and we expect to continue to make significant investments across all aspects of our business to continue to increase the GTV on our platform.
Current wording
Increase GTV By Serving Additional Customers in Existing Trades and Markets. Increasing our GTV also depends on our ability to serve additional customers in existing trades and markets. As our platform has deepened and expanded in features, we have been able to serve larger customers. The trades industry is also experiencing an influx of professional operators, including private equity owners, who are investing in and consolidating trades businesses, in many cases on our platform. Because of these dynamics, we focus on increasing the GTV on our platform, rather than new customer count. We believe our market opportunity is substantial, and we expect to continue to make significant investments across all aspects of our business to continue to increase the GTV on our platform.
Previous wording
We designed our platform to address key workflows within a trades business. In contrast, existing solutions are difficult to adopt and resource-intensive to stitch together in a manner that would address multiple workflows and generate return on investment for trades businesses. This gives us a substantial opportunity to continue to invest in our platform and in our sales and marketing efforts to add more customers in, or help existing customers expand into, the expansive set of trade verticals we have penetrated so far. We also believe that there is further potential to expand our customer base by productizing additional capabilities for these trade verticals.
Current wording
We designed our platform to address key workflows within a trades business. In contrast, existing solutions are difficult to adopt and resource-intensive to stitch together in a manner that would address multiple workflows and generate return on investment for trades businesses. This gives us a substantial opportunity to continue to invest in our platform and in our sales and marketing efforts to add more customers in, or help existing customers expand into, the expansive set of trade verticals we have penetrated so far. We also believe that there is further potential to expand our customer base by productizing additional capabilities for these trade verticals, particularly AI-powered capabilities.
Previous wording
Increase GTV By Entering New Trades and Markets. ServiceTitan began by serving a single trade—plumbing—and focusing on residential homes, and we now serve many trades that serve all sites: homes, businesses and even new construction. As we have penetrated new trades over time, we have significantly expanded our potential customer reach, unlocking new markets to drive future customer growth. We plan to continue to innovate and expand into new trade verticals through our playbook of harnessing common features of the trades industry, while also identifying and building features specific to each new trade vertical. It takes significant time and research and development to identify new trade verticals to enter and build out functionalities on top of our common products, as well as investment in sales and marketing resources, to ensure we can successfully go to market with an end-to-end offering in such new verticals.
Current wording
Increase GTV By Entering New Trades and Markets. ServiceTitan began by serving a single trade—plumbing—and focusing on residential homes, and we now serve many trades that serve all sites: homes, businesses and even new construction. As we have penetrated new trades over time, we have significantly expanded our potential customer reach, unlocking new markets to drive future customer growth. We plan to continue to innovate and expand into new trade verticals through our playbook of harnessing common features of the trades industry, while also identifying and building features specific to each new trade vertical. It takes significant time and research and development to identify new trade verticals to enter and build out functionalities on top of our common products, as well as investment in sales and marketing resources, to ensure we can successfully go to market with an end-to-end offering in such new verticals. We also believe that there is a significant opportunity to strategically expand the usage of our platform outside of the United States and Canada over time based on the current needs of different regions.
Previous wording
Our ability to retain and increase the revenue we earn from existing customers is a key driver of our future business performance and depends on our customers renewing their subscriptions to our platform, expanding their number of users, increasing their usage of existing solutions and adopting additional products, driven by the three key strategies described below. We have observed that as customers experience the significant business acceleration benefits of our platform, they typically not only remain on our platform but also often hire more technicians and adopt more of our products. Our ability to retain and expand customer relationships is evidenced by our net dollar retention rate, which was over 110% for the three months ended October 31, 2025.1
Current wording
Our ability to retain and increase the revenue we earn from existing customers is a key driver of our future business performance and depends on our customers renewing their subscriptions to our platform, expanding their number of users, increasing their usage of existing solutions and adopting additional products, driven by the three key strategies described below. We have observed that as customers experience the significant business acceleration benefits of our platform, they typically not only remain on our platform but also often hire more technicians and adopt more of our products.
Previous wording
Drive More Value to Our Customers through Add-on Product Adoption. As we demonstrate the high ROI of our products to our customers, we are able to sell more add-on products to them and increase our share of wallet, which we measure as the portion of our customers’ GTV that we are able to earn. We efficiently expand our customer relationships over time to serve their additional needs and automate more workflows through our platform. We believe that the more our customers use our platform to power their workflows, the more value we deliver to them, and the higher revenue we can earn from them. As a result, we continue to invest in research and development to improve the functionality of our existing Core and add-on products. Our ability to increase adoption of our add-on products will depend on customer satisfaction with our platform, competition, pricing and our ability to continuously demonstrate the value proposition of our add-on products. We plan to continue investing in sales and marketing, thought leadership, industry resources and leveraging our customer success teams to focus on driving additional expanded value to customers on our platform.
Current wording
Drive More Value to Our Customers through Adoption of Add-on Products and Max. As we demonstrate the high ROI of our products to our customers, and as our customers grow and further professionalize, we are able to sell more add-on products to them and increase our share of wallet, which we measure as the portion of our customers’ GTV that we are able to earn. We efficiently expand our customer relationships over time to serve their additional needs and automate more workflows through our platform. We believe that the more our customers use our platform to power their workflows, the more value we deliver to them, and the higher revenue we can earn from them. As a result, we continue to invest in research and development to improve the functionality of our existing Core and add-on products, including our FinTech and Pro products. We also believe that the power of new AI solutions paired with the existing end-to-end nature of our platform further expands our opportunity to drive significant additional value for our customers, and increase our share of wallet, through adoption of Max. Our ability to increase adoption of our add-on products and Max will depend on customer satisfaction with our platform, competition, pricing and our ability to continuously demonstrate the value proposition of our add-on products and Max. We plan to continue investing in sales and marketing, thought leadership, industry resources and evolving our customer success teams to focus on driving additional expanded value to customers on our platform.
Previous wording
Build New Products to Extend Our Platform. We have a culture of significant innovation evidenced by the extension of our platform’s capabilities over time, producing new workflows across trades. We intend to continue to judiciously invest in research and development to expand the functionality of our platform, to develop new add-on products and to broaden our capabilities to address new market opportunities across trades. Powering key workflows of our customers through our Core product positions us to deliver value-added Pro and FinTech products that complement our Core product. We build Pro and FinTech products as an integrated add-on to our expansive Core product offering to deliver our customers business outcomes in a way that we believe no individual, standalone point solution can. As we continue to innovate and execute on our product roadmap, we believe customers will continue to find our new products additive and therefore continue to adopt them. We believe that there is further potential to expand our market opportunity by building new products to earn an even greater potential share of our customers’ GTV in the future. While our ingrained industry position and exposure to the trades facilitate efficient product development opportunities, innovating new products will continue to require substantial time and research and development resources.
Current wording
Build New Products to Extend Our Platform. We have a culture of significant innovation evidenced by the extension of our platform’s capabilities over time, producing new workflows across trades. We intend to continue to judiciously invest in research and development to expand the functionality of our platform, to develop and bundle new add-on products and to broaden our capabilities to address new market opportunities across trades. Powering key workflows of our customers through our Core product positions us to deliver value-added Pro, FinTech and other AI-powered products that complement our Core product. We build Pro and FinTech products as an integrated add-on to our expansive Core product offering to deliver our customers business outcomes in a way that we believe no individual, standalone point solution can. As we continue to innovate and execute on our product roadmap, we believe customers will continue to find our new products additive and therefore continue to adopt them. We believe that there is further potential to expand our market opportunity by building new products, particularly those powered by AI, to earn an even greater potential share of our customers’ GTV in the future. While our ingrained industry position and exposure to the trades facilitate efficient product development opportunities, innovating new products will continue to require substantial time and research and development resources.
Previous wording
Generally, demand for our customers’ services tends to increase during the second quarter of our fiscal year, as hot weather in the summer months typically results in higher demand for trades businesses. Given that our revenue model allows our customers to scale as needed (processing more GTV through our platform and adding technicians), our sequential revenue growth has historically been strongest in the second quarter of each fiscal year. This is especially true for our usage-based revenue, which is directly tied to the amount of GTV processed through our platform.
Current wording
Generally, demand for our customers’ services tends to increase during the second quarter of our fiscal year, as hot weather in the summer months typically results in higher demand for trades businesses. Given that our revenue model allows our customers to scale as needed (processing more GTV through our platform and adding technicians), our sequential revenue growth has historically been strongest in the second quarter of each fiscal year. This is especially true for our usage-based revenue, which is directly tied to the amount of GTV processed through our platform. Our historical growth—including through the acquisition of new customers and the launch of new products, particularly subscription-based products that are less seasonally impacted than our usage-based products—may have made it more difficult to evaluate the impact of seasonality on our business by masking the full impact of the heightened quarter-over-quarter growth we have generally experienced in the second quarter of each fiscal year. Going forward, we believe seasonality may continue to impact our quarterly results, potentially becoming more pronounced, or evolving to reveal novel seasonal trends.
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, 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.
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. 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, which we measure through our net dollar retention rate. Our net dollar retention rate 1 was over 110% for the three months ended April 30, 2026.
Previous wording
Usage-based services primarily consist of payment processing where we connect to third-party processors to allow our customers to accept payments, primarily credit and debit cards, and also includes end-customer financing solutions and other forms of payment. The third-party processor determines the eligibility of the end customer to participate in the programs, provides the payment settlement and financing options to the end customer and is responsible for the provision of the payment or financing services. We receive a fee from the third-party processors, depending on the size and type of the transaction, which we recognize net of interchange and other direct expenses which are passed onto the customer. Revenue from financing and processing payments is recognized at the time of the transaction. In addition to payment processing revenue, we have a number of Pro products that generate revenue depending on the level of usage, which we recognize monthly in arrears based on consumption.
Current wording
Usage-based services primarily consist of payment processing where we connect to third-party processors to allow our customers to accept payments, primarily credit and debit cards, and also includes end-customer financing solutions and other forms of payment. The third-party processor determines the eligibility of the end customer to participate in the programs, provides the payment settlement and financing options to the end customer and is responsible for the provision of the payment or financing services. We receive a fee from the third-party processors, depending on the size and type of the transaction, which we recognize net of interchange and other direct expenses which are passed onto the customer. Revenue from financing and processing payments is recognized at the time of the transaction. In addition to payment processing revenue, we have a number of Pro products that generate revenue depending on the level of usage, which we recognize monthly in arrears based on consumption. Usage revenue also includes fees we earn from third-party partners based on transactions or customer activity facilitated through our platform, which we recognize in the period in which the underlying activity occurs. In addition, usage-based revenue also includes revenue from our Virtual Agents, which is consumption-based and recognized in the period in which the underlying usage occurs.
Previous wording
Cost of platform revenue consists of personnel-related costs and costs related to the provisioning of our platform services. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation related to our customer support team and certain customer success personnel. Costs related to the provisioning of our platform services primarily comprises of fees paid to third-party service providers associated with delivery of Pro and FinTech products, platform infrastructure and server costs, call tracking fees, and payment processing fees. In addition, cost of platform revenue includes amortization of certain acquired intangible assets, amortization of capitalized internal-use software costs directly related to our cloud-based software solution and allocated overhead, which we define as costs such as depreciation, rent, utilities, and other facilities-related costs that are allocated across our expense categories based on headcount.
Current wording
Cost of platform revenue consists of personnel-related costs and costs related to the provisioning of our platform services. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation related to our customer support team and certain customer success personnel. Costs related to the provisioning of our platform services are primarily comprised of fees paid to third-party service providers associated with delivery of Pro and FinTech products, platform infrastructure and server costs, call tracking fees, and payment processing fees. In addition, cost of platform revenue includes amortization of certain acquired intangible assets, amortization of capitalized internal-use software costs directly related to our cloud-based software solution and allocated overhead, which we define as costs such as depreciation, rent, utilities, and other facilities-related costs that are allocated across our expense categories based on headcount.
Previous wording
We expect our cost of platform revenue to increase in absolute dollars as the adoption and usage of our platform and product offerings increase. 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 expense.
Current wording
We expect our cost of platform revenue to increase in absolute dollars as the adoption and usage of our platform and product offerings increase.
Previous wording
Operating expenses consist of sales and marketing, research and development and general and administrative expenses. For each of these categories of expense, personnel-related costs consisting primarily of salary, employee benefits, bonuses and stock-based compensation are the most significant components.
Current wording
Operating expenses consist of sales and marketing, research and development and general and administrative expenses.
Previous wording
Sales and marketing expense consists primarily of personnel-related costs, consulting costs and other costs incurred in connection with our sales and marketing and certain customer success efforts. Personnel-related costs primarily include salary, commissions, employee benefits, bonuses and stock-based compensation for our outbound sales personnel that focus on new customer acquisition and for our customer success personnel that focus on expanding adoption of our products at existing customers. Sales and marketing expense also includes marketing and advertising expenses, such as our annual customer conferences, Pantheon and Ignite, and travel and trade show expenses, amortization of acquired customer intangible assets and allocated overhead. As our annual customer conferences are significant sales and marketing events, we expect an increase in sales and marketing expense during the respective quarter in which they occur. We expect that sales and marketing expense will increase on an absolute dollar basis as we invest to grow our business. We plan to continue to expand sales and marketing efforts to attract new customers, retain existing customers and increase revenue from both new and existing customers by adding outbound sales personnel and expanding our customer success team activities. In addition, 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 expense.
Current wording
Sales and marketing expense consists primarily of personnel-related costs, consulting costs and other costs incurred in connection with our sales and marketing and certain customer success efforts. Personnel-related costs primarily include salary, commissions, employee benefits, bonuses and stock-based compensation for our outbound sales personnel that focus on new customer acquisition and for our customer success personnel that focus on expanding adoption of our products at existing customers. Sales and marketing expense also includes marketing and advertising expenses, such as our annual customer conferences, Pantheon and Ignite, and travel and trade show expenses, amortization of acquired customer intangible assets and allocated overhead. Our annual customer conferences are significant sales and marketing events, so we therefore expect an increase in sales and marketing expense during the fiscal third quarter when they occur. We expect that sales and marketing expense will increase on an absolute dollar basis as we invest to grow our business. We plan to continue to expand sales and marketing efforts to attract new customers, retain existing customers and increase revenue from both new and existing customers by adding sales personnel.
Previous wording
Research and development expense consists primarily of personnel-related and other costs incurred in connection with product management and development efforts. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation. Research and development expense also includes fees to third-party product development resources, infrastructure and server costs, and allocated overhead costs. We expect that research and development expense will increase on an absolute dollar basis as we invest to build, enhance, maintain and scale our products.
Current wording
Research and development expense consists primarily of personnel-related and other costs incurred in connection with product management and development efforts. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation. Research and development expense also includes fees to third-party product development resources, infrastructure and server costs, inference costs, and allocated overhead costs. We expect that research and development expense will increase on an absolute dollar basis as we invest to build, enhance, maintain and scale our products.
Previous wording
General and administrative expense consists primarily of personnel-related costs for our executive, finance, legal, information systems, operations and human resource teams. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation. General and administrative expense also includes professional fees, other outside consulting expenses, acquisition-related expenses and allocated overhead. We expect that general and administrative expense will increase on an absolute dollar basis, but over time decrease as a percentage of total revenue, as we focus on the efficiency of our processes and systems to enable our internal support functions to scale with the growth of our business. We expect increases to general and administrative expense to support our growth and as we incur the costs of compliance associated with being a public company, including increased accounting and legal expenses.
Current wording
General and administrative expense consists primarily of personnel-related costs for our executive, finance, legal, information systems, operations and human resource teams. Personnel-related costs primarily include salary, employee benefits, bonuses and stock-based compensation. General and administrative expense also includes professional fees, other outside consulting expenses, acquisition-related expenses and allocated overhead. We expect that general and administrative expense will increase on an absolute dollar basis, but over time decrease as a percentage of total revenue, as we focus on the efficiency of our processes and systems that will enable our internal support functions to scale with the growth of our business. We expect increases to general and administrative expense to support our growth and as we continue to incur the costs of compliance associated with being a public company, including increased accounting and legal expenses.
Previous wording
Other income (expense), net consists primarily of interest expense related to our debt arrangements with financial institutions, interest income earned on our cash and cash equivalents, gains or losses on foreign currency transactions and miscellaneous other income and expense.
Current wording
Other income (expense), net consists primarily of interest expense related to our debt arrangements with financial institutions, interest income earned on our cash and cash equivalents, gains or losses on foreign currency transactions and miscellaneous other income.
Previous wording
Platform revenue increased by $48.4 million, or 25%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. This increase was primarily driven by subscription revenue, which increased by $37.5 million, or 26%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. In addition, revenue from our usage-based products increased by $10.9 million, or 24%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. This increase was primarily driven by increases in gross transaction volume and higher earn rate generated on that volume.
Current wording
Platform revenue increased by $52.6 million, or 25%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily driven by subscription revenue, which increased by $39.3 million, or 24%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. In addition, revenue from our usage-based products increased by $13.3 million, or 29%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. 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 $1.5 million, or 19%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. This increase was primarily driven by a higher volume of services performed.
Current wording
Professional services and other revenue increased by $0.6 million, or 7%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily driven by a higher volume of services performed.
Previous wording
Platform cost of revenue increased by $2.3 million, or 4%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. The increase was primarily due to a $4.3 million increase in costs to deliver our Core, Pro, and FinTech products driven by the increase in our subscription and usage-based revenue. This increase was partially offset by a decrease in personnel-related costs, which decreased $2.1 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 77.2% for the three months ended October 31, 2025, compared to 72.7% for the three months ended October 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.
Current wording
Platform cost of revenue increased by $5.5 million, or 11%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily due to a $2.8 million increase in the costs related to the provisioning of our platform services products and an increase of $2.3 million in personnel-related costs, driven by an increase in headcount. Platform gross margin increased to 78.7% for the three months ended April 30, 2026, compared to 75.9% for the three months ended April 30, 2025, primarily due to improved efficiencies in delivering our platform at scale.
Previous wording
General and administrative expense increased by $21.5 million, or 53%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024. The increase in general and administrative expense was primarily driven by a $19.7 million increase in personnel-related costs primarily driven by an increase of $17.9 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. There was an additional increase of $1.6 million in third-party consulting costs related to legal, consulting and audit services. These increases were partially offset by a decrease of $3.7 million of impairment losses on operating lease assets and related property and equipment for a portion of our headquarters space that weceased to use.
Current wording
General and administrative expense decreased by $1.1 million, or 2%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. The decrease in general and administrative expense was primarily driven by a decrease of $2.9 million of impairment losses on operating lease assets and related property and equipment for office spaces that we ceased to use. This decrease was offset by an increase of $1.6 million in third-party consulting costs related to legal, and other consulting services.
Previous wording
Other income, net, was $3.3 million for the three months ended October 31, 2025, compared to other expense, net, of $2.0 million for the three months ended October 31, 2024. The increase was primarily due to a $3.3 million increase in interest income due to a higher cash balance as well as a decrease in interest expense of $1.9 million due to a lower debt balance in the three months ended October 31, 2025 resulting from the repayment of all amounts outstanding under our Revolver Facility that occurred in January 2025.
Current wording
Other income, net, was $3.9 million for the three months ended April 30, 2026, compared to other income, net, of $3.4 million for the three months ended April 30, 2025. The increase was primarily due to a $1.9 million decline in interest expense resulting from the repayment, in full, of our term loan in fiscal 2026, partially offset by a $1.2 million decrease in interest income.
Previous wording
Our provision for income taxes increased by $0.2 million, or 50%, for the three months ended October 31, 2025 compared to the three months ended October 31, 2024. The change is primarily driven by the variability in the income (loss) before income taxes of our foreign subsidiaries and their related tax effects and a release of a portion of the Company’s U.S. valuation allowance due to the acquisition of Conduit that occurred during the three months ended October 31, 2025.
Current wording
Our provision for income taxes increased by $0.7 million for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. The change is primarily driven by the variability in the income (loss) before income taxes of our foreign subsidiaries and their related tax effects for the three months ended April 30, 2026.
Previous wording
Amortization of acquired intangible assets. We incur amortization expense for acquired intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of acquired intangible assets is a non-cash expense that is significantly affected by the timing and size of acquisitions, and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred, we exclude the amortization expense from our internal management reporting processes. We exclude these charges when assessing our actual performance and when budgeting, planning, and forecasting future periods. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well.
Current wording
Because these costs have already been incurred, we exclude the amortization expense from our internal management reporting processes. We exclude these charges when assessing our actual performance and when budgeting, planning, and forecasting future periods. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well.
Previous wording
We define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, restructuring charges, and loss on operating lease assets. Total non-GAAP gross margin represents total non-GAAP gross profit as a percentage of total revenue. Non-GAAP platform gross margin represents non-GAAP platform gross profit as a percentage of platform revenue and non-GAAP professional services and other gross margin represents non-GAAP professional services and other gross profit as a percentage of professional services and other revenue.
Current wording
We define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, and loss on operating lease assets. Total non-GAAP gross margin represents total non-GAAP gross profit as a percentage of total revenue. Non-GAAP platform gross margin represents non-GAAP platform gross profit as a percentage of platform revenue and non-GAAP professional services and other gross margin represents non-GAAP professional services and other gross profit as a percentage of professional services and other revenue.
Previous wording
We define non-GAAP sales and marketing expense as GAAP sales and marketing expense excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, restructuring charges and loss on operating lease assets.
Current wording
We define non-GAAP sales and marketing expense as GAAP sales and marketing expense excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, and loss on operating lease assets.
Previous wording
We define non-GAAP research and development expense as GAAP research and development expense excluding stock-based compensation expense and related employer payroll taxes, acquisition-related items, restructuring charges and loss on operating lease assets.
Current wording
We define non-GAAP research and development expense as GAAP research and development expense excluding stock-based compensation expense and related employer payroll taxes, acquisition-related items, and loss on operating lease assets.
Previous wording
We define non-GAAP general and administrative expense as GAAP general and administrative expense excluding stock-based compensation expense and related employer payroll taxes, acquisition-related items, restructuring charges, and loss on operating lease assets.
Current wording
We define non-GAAP general and administrative expense as GAAP general and administrative expense excluding stock-based compensation expense and related employer payroll taxes, acquisition-related items, and loss on operating lease assets.
Previous wording
We define non-GAAP income from operations and non-GAAP operating margin as GAAP loss from operations and GAAP operating margin, respectively, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, restructuring charges, acquisition-related items, and loss on operating lease assets. Non-GAAP operating margin represents non-GAAP income from operations as a percentage of total revenue.
Current wording
We define non-GAAP income from operations and non-GAAP operating margin as GAAP loss from operations and GAAP operating margin, respectively, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, acquisition-related items, and loss on operating lease assets. Non-GAAP operating margin represents non-GAAP income from operations as a percentage of total revenue.
Previous wording
We define non-GAAP net income (loss) as GAAP net loss, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, restructuring charges, acquisition-related items, and loss on operating lease assets, adjusted for the income tax effects on the difference between GAAP and non-GAAP expenses.
Current wording
We define non-GAAP net income (loss) as GAAP net loss, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, acquisition-related items, and loss on operating lease assets, adjusted for the income tax effects on the difference between GAAP and non-GAAP expenses.
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, debt and through payments received from our customers, as well as the proceeds from our initial public offering. As of October 31, 2025, we had cash and cash equivalents of $493.2 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
As of April 30, 2026, we had cash and cash equivalents of $421.5 million, which excludes restricted cash of $0.4 million, and $250.0 million available under the Amended 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
We believe that our existing cash and cash equivalents, cash available under our Credit Agreement, and cash receipts from our revenue arrangements will be sufficient to support working capital, operating lease payments and capital expenditure requirements for at least the next 12 months from the date of this Quarterly Report. Our future capital requirements and the adequacy of available funds will depend on many factors, including those set forth in the section titled “Risk Factors.” Further, in the future we may enter into arrangements to acquire or invest in businesses, products, services and technologies. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we cannot be sure that any additional financing will be available to us on acceptable terms if at all. If we are unable to raise additional capital when desired, our business, results of operations and financial condition could be adversely affected.
Current wording
We believe that our existing cash and cash equivalents, cash available under our Amended Credit Agreement, and cash receipts from our revenue arrangements will be sufficient to support working capital, operating lease payments and capital expenditure requirements for at least the next 12 months from the date of this Quarterly Report. Our future capital requirements and the adequacy of available funds will depend on many factors, including those set forth in the section titled “Risk Factors.” Further, in the future we may enter into arrangements to acquire or invest in businesses, products, services and technologies. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we cannot be sure that any additional financing will be available to us on acceptable terms if at all. If we are unable to raise additional capital when desired, our business, results of operations and financial condition could be adversely affected.
Previous wording
Net cash provided by operating activities was $69.6 million for the nine months ended October 31, 2025. This primarily related to our non-cash charges of $231.7 million, adjusted for our net loss of $118.1 million and net cash outflows of $44.1 million from changes in our operating assets and liabilities. The primary drivers of the changes in our operating assets and liabilities related to an increase in deferred contract costs and contract assets of $24.2 million, an increase in accounts receivable of $15.4 million, a decrease of lease liabilities of $6.4 million, a decrease in accrued personnel related expenses of $6.0 million, an increase in prepaid expenses and other current assets of $1.6 million. These were partially offset by an increase in accounts payable and other accrued expenses of $6.9 million, and an increase in deferred revenue of $1.8 million.
Current wording
Net cash used in operating activities was $1.6 million for the three months ended April 30, 2026. This primarily related to our non-cash charges of $82.2 million, adjusted for our net loss of $22.8 million and net cash outflows of $61.0 million from 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 $38.9 million as annual corporate bonuses are paid in the first fiscal quarter, an increase of $9.1 million in accounts receivable, an increase of $6.8 million in contract assets, a decrease of lease liabilities of $4.2 million, and an increase of $3.8 million in deferred contract costs. These were partially offset by and increase of $3.4 million in accounts payables and other accrued expenses.
Previous wording
Net cash provided by operating activities was $21.6 million for the nine months ended October 31, 2024. This primarily related to our non-cash charges of $184.9 million, adjusted for our net loss of $138.2 million and net cash outflows of $25.2 million from changes in our operating assets and liabilities. The primary drivers of the changes in our operating assets and liabilities related to an increase in deferred contract costs and contract assets of $15.1 million, an increase in accounts receivable of $13.6 million, a decrease of lease liabilities of $7.8 million, and a decrease in accounts payable and other accrued expenses of $4.4 million. These were partially offset by an increase in accrued personnel related expenses of $9.1 million, a decrease in prepaid expenses and other current assets of $3.3 million, an increase in deferred revenue of $2.6 million, and an increase in other liabilities of $1.4 million.
Current 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.
Previous wording
Net cash used in investing activities was $39.7 million for the nine months ended October 31, 2025. This primarily consisted of $19.8 million of cash paid, net of cash acquired for the acquisition of Conduit, and cash outflows of $15.5 million for the investments in capitalized internal-use software and $4.0 million for the purchase of property and equipment.
Current wording
Net cash used in investing activities was $8.0 million for the three months ended April 30, 2026. This primarily consisted of $6.7 million for the investments in capitalized internal-use software, $0.8 million in deposits for property and equipment, and $0.6 million for the purchase of property and equipment.
Previous wording
Net cash used in investing activities was $18.1 million for the nine months ended October 31, 2024. This consisted of cash outflows of $14.2 million for the investments in capitalized internal-use software and $2.8 million for the purchase of property and equipment, and $1.2 million of cash paid, net of cash acquired for the acquisition of Convex.
Current 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.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Amortization of acquired intangible assets. We incur amortization expense for acquired intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of acquired intangible assets is a non-cash expense that is significantly affected by the timing and size of acquisitions, and the inherent subjective nature of purchase price allocations.
Current report — wording carried from elsewhere
Net cash provided by financing activities was $2.2 million for the three months ended April 30, 2026. This consisted entirely of the proceeds from the exercise of stock options.
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Previous report — wording carried elsewhere
Platform revenue increased by $140.9 million, or 26%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. This increase was primarily driven by subscription revenue, which increased by $111.2 million, or 27%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. In addition, revenue from our usage-based products increased by $29.6 million, or 23%, for the nine months ended October 31, 2025, compared to the nine months ended October 31, 2024. This increase was primarily driven by increases in gross transaction volume and higher earn rate generated on that volume.