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ServiceTitan (TTAN) Q3 2026: Narrowing TTM Losses Challenge Bearish Profitability Narrative

Simply Wall St · 2d ago

Q3 2026 earnings snapshot and setup

ServiceTitan (TTAN) just posted Q3 2026 results with revenue of about $249 million, a basic EPS loss of $0.42, and trailing twelve month revenue of roughly $916 million alongside a TTM EPS loss of $3.51. This underscores that the company is still in investment mode rather than profit harvesting. The business has seen revenue move from around $199 million in Q2 2025 to $249 million in Q3 2026 on a quarterly basis, and from roughly $685 million to $916 million on a trailing twelve month basis, while EPS stayed negative throughout. Investors will likely focus on whether unit economics and operating efficiency are bending margins toward a more sustainable trajectory.

See our full analysis for ServiceTitan.

With the headline numbers on the table, the next step is to see how this mix of rapid top line expansion and ongoing losses lines up with the most popular narratives around ServiceTitan's growth story and path to profitability.

Curious how numbers become stories that shape markets? Explore Community Narratives

NasdaqGS:TTAN Revenue & Expenses Breakdown as at Dec 2025
NasdaqGS:TTAN Revenue & Expenses Breakdown as at Dec 2025

LTM losses narrow to $298 million

  • Over the last twelve months, ServiceTitan generated about $916 million in revenue but still reported a net loss of roughly $298 million, an improvement from the $360 million loss shown a year ago on a smaller $772 million revenue base.
  • What stands out for a bullish view is that losses are shrinking as the business scales. Bears can point out that profitability is still distant, with:
    • TTM net loss improving by around $62 million over the year while revenue climbed by about $144 million, suggesting some operating leverage but not a break toward profits yet.
    • Quarterly net loss moving from about $180 million in Q4 2025 to $39.5 million in Q3 2026, which heavily supports the bullish case that higher scale is starting to soften the drag from investment spending.

26.5% revenue growth vs ongoing losses

  • Revenue rose from roughly $685 million to $916 million over the past year, a 26.5% increase, while trailing EPS stayed negative at about minus $3.51 and the company is forecast to remain unprofitable for at least the next three years.
  • Critics highlight a bearish tension between strong growth and persistent losses, and the data backs both sides:
    • On one hand, quarterly revenue has climbed from about $193 million in Q2 2025 to $249 million in Q3 2026, underscoring demand for the platform and supporting growth oriented investors.
    • On the other, TTM net losses remain close to $300 million even after that growth, so the bears argument that the model is still heavily in investment mode is consistent with the reported figures.

P/S of 10.8x with 29% implied upside

  • At a share price of $105.60 and a 10.8x price to sales multiple, the stock trades cheaper than its direct peer group on this metric, richer than the broader US software sector, and above a DCF fair value of about $83.23, while analysts overall see upside toward a $136.33 target.
  • Valuation creates a clear push and pull between bullish and bearish narratives, and the numbers give both sides ammunition:
    • Bears point to the gap between the $105.60 price and the $83.23 DCF fair value as evidence that the market is paying up for a company that is still loss making on a TTM basis.
    • Bulls instead focus on the 29.1% implied upside from the same $105.60 price to the $136.33 analyst target, arguing that 26.5% revenue growth and forecasts of roughly 13.9% annual growth justify a premium P/S versus the wider software group.
Analysts watching this quarter will be weighing that premium P/S and DCF gap against the improving loss trend to decide whether growth still justifies paying up at these levels. 📊 Read the full ServiceTitan Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on ServiceTitan's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Explore Alternatives

ServiceTitan is still burning cash, trading at a premium to intrinsic value, and relying on future growth expectations rather than proven, profitable execution today.

If paying up for a still unprofitable story makes you uneasy, use our these 906 undervalued stocks based on cash flows to quickly shift focus toward companies where current valuations already bake in less downside risk.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.