ServiceTitan Off to Strong Start in FY '26, Delivering 29% Subscription Revenue Growth and Record Operating Margins
ServiceTitan, a leading provider of business management software for the service trades industry, has reported a strong start to its fiscal year 2026 (FY '26), with significant growth in subscription revenue and record operating margins. In its first quarter FY '26 earnings conference call transcript released on June 5, 2025, the company highlighted several key achievements, demonstrating its commitment to delivering real return on investment (ROI) to customers and driving business success.
Ara Mahdessian, Co-Founder and CEO of ServiceTitan, noted that the company's growth formula is simple: deliver real ROI to customers, helping them further their success and reach greater financial outcomes. This allows them to grow their businesses, which drives more technicians and gross trade value (GTV) on the platform and leads to higher subscription and usage revenue for ServiceTitan.
The company reported a 29% year-over-year growth in subscription revenue, as well as 27% total revenue growth, during the first quarter of FY '26. This achievement is all the more impressive given the backdrop of economic uncertainty. ServiceTitan's operating margins also improved by a significant 560 basis points, reaching record levels.
ServiceTitan's sales team delivered consistent performance, while its product and engineering teams executed well on the company's roadmap. Several large and strategic accounts, both residential and commercial, went live this quarter, further demonstrating the company's ability to transform the lives of hard-working contractors in the trades.
Ara Mahdessian shared two customer success stories that exemplify how ServiceTitan's focus on delivering ROI extends from sales to implementation and ongoing customer success. One story is about A1 Garage Door, a business that doubled its revenue to almost $20 million in its first year on the ServiceTitan platform. With the full capabilities of ServiceTitan, A1 Garage has expanded into 22 states with hundreds of technicians and reached 9-digit revenues.
Another example cited by Mahdessian is A1's recent deployment of Dispatch Pro, which allowed them to add another 150 technicians to the platform without adding a single additional dispatcher. This resulted in a nearly doubling of their tech-to-dispatch ratio from around 10:1 to 20:1, while also improving lead conversion at the same time.
Ara Mahdessian expressed his appreciation for the way the ServiceTitan team and its customers performed this quarter, noting that it's a testament to the company's opportunity to transform the lives of every hard-working contractor in the trades. With this strong start to FY '26, ServiceTitan is poised to continue delivering exceptional results and driving growth for its customers.
As reported in the conference call transcript, ServiceTitan has also highlighted its commitment to delivering ROI through various metrics and customer successes. The company's focus on delivering high-ROI solutions is evident throughout its business model and operations.
