ServiceTitan’s Q1 2025 results demonstrate impressive growth, highlighting its expanding influence in the trades software sector. sector. As demand for end-to-end digital solutions among contractors continues to climb, the company leveraged its platform strength and customer engagement to deliver notable top-line growth and improving margins. CEO Ara Mahdessian praised the team’s execution, emphasizing their role in transforming how contractors run their businesses.
Key Financial Highlights
ServiceTitan’s Q1 2025 performance demonstrated both growth and efficiency:
Total revenue surged 27% year-over-year to $215.7 million, fueled by strong subscription and usage-based revenue.
Gross transaction volume (GTV) grew 22% to $17.7 billion.
Platform revenue reached $208.0 million, a 27% increase from Q1 2024.
Non-GAAP income from operations jumped to $16.2 million, up from $3.3 million the prior year.
Non-GAAP operating margin expanded to 7.5%, compared to 1.9% last year.
Net dollar retention remained above 110%, reflecting consistent value delivery to existing customers.
Although ServiceTitan posted a GAAP net loss of $46.4 million, this included significant non-cash charges such as stock-based compensation and amortization of intangible assets.
Strategic Initiatives and Market Performance
Throughout the quarter, ServiceTitan advanced its four strategic priorities:
Platform Depth and Breadth – The company continued to expand product capabilities to better serve technicians, office staff, and business owners across verticals.
Customer Success – ServiceTitan’s investment in onboarding and support enhanced user satisfaction, contributing to its strong net retention metrics.
Operational Discipline – Sales, R&D, and administrative spending were aligned with growth, with non-GAAP expenses showing improved efficiency.
Innovation and Expansion – The team focused on layering “stacking S-curves,” allowing the platform to continuously deliver value across trades businesses of all sizes.
Notably, subscription revenue accounted for $162.7 million, while usage-based revenue hit $45.3 million—illustrating the platform’s increasing integration into customer workflows.
Challenges and Outlook
While momentum remains strong, several challenges persist:
GAAP operating loss totaled $49.5 million, highlighting the impact of high non-cash expenses and ongoing investments in growth.
Free cash flow stood at negative $22.3 million, though this marks a modest improvement from the prior year’s $24.6 million outflow.
Macroeconomic uncertainties could affect contractor spending and hiring in the near term.
Despite these headwinds, ServiceTitan issued a confident outlook:
Q2 2025 revenue is projected between $228–$230 million.
Full-year revenue guidance stands at $910–$920 million, with operating income expected between $54–$59 million on a non-GAAP basis.
The company remains committed to long-term profitability while continuing to innovate for its growing customer base.
