ServiceTitan, Inc. Q2 2027 Earnings Recap

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.

Key Takeaways

• 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.