Sep 8, 2026 earnings call — Focus on Max AI platform and Q2 results
ServiceTitan reported 21% year-over-year revenue growth and Q2 free cash flow of $50.5 million.
Revenue $0.3B (est $0.3B) · EPS $0.40 (est $0.35) · Next-quarter revenue outlook $0.3B–$0.3B
Key quotes
"I'm excited to share that our strong momentum delivering the Agentic operating system for the trades resulted in 21% year-over-year revenue growth and record free cash flow this quarter."
"At its core, we envision that the software factory will be the growth engine behind our platform."
"Q2 operating income of $44.4 million resulted in operating margin of 15.2%, an improvement of 310 basis points year-over-year."
Analyst Q&A 15
lead volumes and pause on new trades
Q (David Hynes · Canaccord): They asked what happened to lead volumes after quarter end and whether Q2 was a temporary moderation in GTV. They also asked how much future growth is being deferred by delaying expansion into new commercial trades and what milestones would restart those investments.
A: They said July was affected by an observed holiday and seasonal timing shifts that mostly offset each other, and that lead volumes stabilized in July so they rolled Q2 aggregate forward into the rest-of-year forecast rather than assume a July bounce. They also said they are concentrating incremental resources on Max and on the software factory, prioritizing those initiatives over expanding into new trades for now and accepting trade-offs like revenue recognition and professional services timing.
"From what we could see, the core challenge our customers face was the lead volume, and we did see that stabilize in the month of July." — Dave Sherry (CFO)
prioritizing Max over trade expansion
Q (Michael Turrin · Wells Fargo): They asked the team to walk through the thought process for prioritizing Max over previously planned trade expansion, why now, and what gives confidence this is right short- and long-term.
A: They said Max has expanded from about 8 to 30-plus Agentic capabilities that automate marketing, lead conversion, scheduling and field decisions, which is increasing customer revenue and CLTV and gives confidence to prioritize Max now. They added this is a prioritization not permanent, and moving deals to Max creates an approximately $4 million to $5 million near-term headwind across subscription and professional services that affects the back half of the year.
"All these things are very meaningfully increasing revenue for our customers and meaningfully increasing profitability." — Ara Mahdessian (CEO)
extending Max and virtual agent growth
Q (Dylan Becker · William Blair): They asked whether Max's ability to capture more value early increases confidence to extend it to adjacent trades over time. They also asked how customers are deploying virtual agents and scaling use cases from trials to broader deployments.
A: They said early customers introduced to Max are often willing to adopt it earlier in the sales cycle, which is promising for extending Max, though exact speed and revenue-recognition implications are still unclear. For virtual agents they said many customers start with overflow and after-hours use, and as agents book well and sound human, customers let them handle more volume, especially where CSR attrition is high.
"Nearly all of our customers face situations where they have a sudden influx of calls that overwhelm their office staff as well as calls that come in after hours." — Dave Sherry (CFO)
scaling Max implementations
Q (William Fitzsimmons · Piper Sandler): They asked whether implementation time for Max can come down over time and whether there's an upper limit on the number of Max customers that can be added per quarter.
A: They described a two-step process: first achieve product-market fit, then scale with efficient implementations. They pointed out ServiceTitan's core product implementations shortened from several months to a fraction of that for the same cohort and said they expect Max implementation effort will follow a similar trajectory as they improve efficiency.
"And so if you look at what it took to implement ServiceTitan as a whole, the core product, it went from taking several months for even the simplest use case to a fraction of that today for that same cohort." — Ara Mahdessian (CEO)
why some customers delay transforming
Q (Christopher Quintero · Morgan Stanley): They asked why some customers are not ready to fully transform their businesses and requested details on the new on-ramp packages and capabilities.
A: They said this is a normal diffusion pattern: some customers are early adopters and others watch from the sidelines, and readiness is largely a function of 'seeing is believing.' They focused on driving success in the initial cohort but did not provide specific technical details on the new on-ramp package capabilities in this answer.
"The process we're going through is either somebody is ready to jump on board and see the results and success or they're being closely watched by everybody else." — Dave Sherry (CFO)
implementation team capacity
Q (Scott Berg · Needham): They asked if the company has the right implementation-team capacity to deploy the increased number of customers, or if they need to add staff quickly.
A: They said they are not planning meaningful increases in staffing and are assuming improved implementation efficiency—less time and effort on both sides—will enable them to hit rollout targets. They also noted this will lead to lower professional services revenue.
"We're not planning on any meaningful increases in our staffing." — Ara Mahdessian (CEO)
trade differences in GTV performance
Q (Tyler Radke · Citi): They asked whether different trades diverged in order volumes and GTV performance and whether that influenced the decision to allocate resources away from expanding into additional trades.
A: They said the lead-volume weakness was particularly notable in HVAC. They also said commercial remains a meaningful driver of GTV and residential customers continue to grow, though HVAC saw impacts to lead volumes and job growth in the quarter.
"I'll say in terms of the decomposition of the GTV and how it performed relative to one another, this lead volume piece was particularly notable in HVAC." — Dave Sherry (CFO)
a la carte Max on-ramps effect
Q (Nicholas Altmann · BTIG): They asked how offering bite-sized or a la carte on-ramps for Max would change Max's growth curve, balancing faster ramp and volume against potential ASP trade-offs.
A: They said demand for full transformation currently exceeds implementation capacity, so they're making implementations more efficient and offering bite-sized packages like a demand orchestration version for customers wanting quicker results. They said some cohorts will focus on demand first or field operations first, but each 'bite' still represents a material transformation.
"And hence, we want to have a demand orchestration version of Max that allows them to see incredible results quickly before later transforming field operations." — Dave Sherry (CFO)
virtual agent growth source
Q (J. Lane · Stifel): They asked whether virtual agent growth is driven more by customers adopting VA for the first time or by replacing competing solutions.
A: They said it's pretty balanced between first-time adopters and customers replacing existing solutions. They did not provide a detailed split between those groups.
"It's pretty balanced between customers that are adopting VA for the first time as well as customers that are replacing an existing solution." — Dave Sherry (CFO)
Q4 guide acceleration reasons
Q (Jason Celino · KeyBanc): They asked why the Q4 revenue guide implies acceleration versus Q3 and whether that is driven by comps or other dynamics like Max adoption.
A: They said two factors: a comp driver because Q3 has one fewer business day than the prior year, and some initial Max contribution expected in Q4. They emphasized the primary driver of the Q4 acceleration is the business-day comp issue.
"First, one, there's one fewer day in Q3 than there was in the prior year." — Dave Sherry (CFO)
voice/SMS pricing and VA momentum
Q (Terrell Tillman · Truist): They asked how important SMS Agentic is for adoption, whether buying voice and SMS means a higher price point, and whether VA growth could keep doubling off a smaller base.
A: They said voice and SMS are priced separately, so selling both results in higher revenue, and those charges are consumption-based (per call, per outcome or per text) and flow into usage revenue. They said the VA momentum feels solid but did not provide a specific forward forecast.
"And they both flow through as consumption because they're charged either on a per call, per outcome or per text message basis." — Dave Sherry (CFO)
commercial/construction investment focus
Q (Joseph Vruwink · Baird): They asked whether the thinking has changed about going after construction adjacencies or if go-to-market will become more targeted in commercial where the dynamic differs.
A: They clarified that narrowing the aperture does not take resources away from roofing, commercial or construction and that construction remains integral to winning in commercial. The change only affects incremental investments that would have gone to new trades they do not currently serve.
"It is not taking resource away from roofing or commercial and construction." — Ara Mahdessian (CEO)
can Max offset lead declines
Q (Andrew Sherman · TD Cowen): They asked whether AI-driven changes (like searches moving platforms) might explain lead-volume declines, why HVAC was more affected, and whether Max can offset those impacts.
A: They said they don't have clear visibility on drivers and that the lead-volume decline looked broad-based across trades and peers, not specific to their customers. They said Max is designed to improve demand generation via its Agentic capabilities, let customers tailor workflows, interact with consumer agents, and ultimately help customers outperform the market.
"One of the most important premises of Max is that it helps improve demand generation." — Ara Mahdessian (CEO)
leading sales with Max
Q (Daniel Jester · BMO): They asked whether the go-to-market organization is changing to lead with Max beyond packaging, and if leading with Max will be targeted or broadly applied as packages roll out.
A: They said they are seeing strong demand from new logos for Max in target segments and will continue to offer the traditional platform to customers not ready for Max. They also said leading with Max creates efficiencies in implementation and business transformation for both customers and the company, which is why they are leading with it.
"I think we are seeing quite strong demand in these target segments from new logos for Max from the very beginning." — Dave Sherry (CFO)
drivers of upside beyond Max
Q (Yun Suk Kim · Loop): They asked to highlight drivers of the upside in the results beyond Max adoption (which is not yet translating into revenue) and any areas of outperformance to call out.
A: They emphasized conviction in delivering guidance and noted their historical average quarterly beat versus midpoint is in the $9 million to $10 million range, driven primarily by GTV and some professional services. They added that usage revenue generally follows GTV and that had Q2 GTV and the expected business-day benefit been normal, they'd have seen roughly another $1.5 million to $2 million in Fintech revenue, so they rolled Q2 GTV trends into the back half to ensure consistency.
"An average quarterly beat versus the midpoint of our guidance has been in sort of the $9 million to $10 million range with the primary source of variance coming from GTV and a bit from professional services." — Dave Sherry (CFO)