ServiceTitan reported fiscal Q2 2027 on September 8 and beat on both revenue and EPS. Revenue hit $292.8M, up 21%, ahead of their own 18% guide. Non-GAAP operating margin expanded to 15.2%. Free cash flow hit $50.5M, up 47%. Net dollar retention held above 110%.
The stock closed down 30% the next session. Over $2B of market cap gone in a day. By Friday it touched a 52-week low of $54.16, down roughly 52% over the past year.
The quarter did not cause that. The back half did. Q3 revenue is guided to $285M-$287M, below Q2's $292.8M in absolute dollars. Management confirmed the back half is planned at roughly 15% growth, against 25% a year ago. Four consecutive quarters of deceleration. Seven firms cut price targets within 24 hours, most by 20-30%, while keeping Buy ratings. They repriced the forward growth rate, which is the only line that got worse.
What happened to growth: Gross transaction volume growth dropped from 23% in Q1 to 17% in Q2. ServiceTitan takes roughly a penny of every dollar its contractor customers bill. When HVAC lead volume softened in May and June, it showed up in the P&L the same quarter. Management called out an early cooling season that likely pulled demand into Q1, plus a July 3 holiday that behaved like a weekend. Leads stabilised in July. They did not declare the slowdown over.
Revenue still grew 21% on 17% GTV because monetisation out-performed volume by four points. Usage revenue grew 24%. That helped, but six points of HVAC volume disappeared in the same three months it happened. A seat-based contract would have carried that wobble into future quarters. ServiceTitan's usage model surfaces end-market softness immediately.
The Max drag: ServiceTitan launched Max, an agentic operating system, and does not bill the first quarter of the contract by design. That suppresses near-term revenue. They also deferred expansion into new trades to concentrate resources on Max. Both decisions are strategic bets on a stronger product and larger deal sizes later. The market is pricing the revenue gap now, not the ROI in 18 months.
Leadership note: Rikus Pretorius, currently SVP of Worldwide Sales, becomes Chief Revenue Officer in fiscal Q4 2026, replacing Ross Biestman, who moves into an advisory role through year-end. Continuity in GTM leadership as the company navigates slower second-half growth and market volatility.
What this means for sales teams: ServiceTitan is still growing at 21%, still profitable on a non-GAAP basis, still generating cash. The stock got hammered because the forward growth rate decelerated by ten points in two quarters. For sales orgs, that is a reminder that usage-based pricing exposes you to customer volume in real time. When HVAC contractors book fewer jobs, ServiceTitan books less revenue, same quarter. Seat-based models smooth that out. Usage models surface it immediately. That is great for transparency and terrible for stock multiples when the end market softens.
ServiceTitan is still one of the best-capitalised vertical SaaS companies in field service management, with $1.1B raised and a leadership position in North American home services. The business is sound. The market just repriced 15% growth instead of 25%. In SaaS, that is the difference between a premium multiple and a punished one.