ServiceTitan’s stock fell 35% after earnings, signaling that investors were more concerned about the company’s increased investment and shift toward Max than its reported 21% revenue growth and record free cash flow. The transcript points to broader-than-expected spending on Max and the software factory, with management emphasizing a future transition rather than near-term financial upside.
- Fiscal Q2 revenue grew 21% year over year, while management reported record free cash flow.
- ServiceTitan increased investments in Max and its software factory in both absolute dollars and relative to its initial expectations for the year.
- Management is prioritizing existing trades and accelerating the shift toward Max, which CFO Dave Sherry was expected to discuss in terms of financial implications and mix effects.
- The company highlighted early Max customer results, including Delponte’s revenue growth of more than 45% year over year in Q2 2026 and an improved technician-to-admin ratio from 2:1 to 3:1.
- A leadership transition adds execution risk: CRO Ross Biestman is leaving his operating role after Q3, with Rikus Pretorius set to assume the CRO position in Q4.
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