Titan Company Ltd. (TTAN, Financial) anticipates reporting an operating income ranging from $17 million to $18 million for the second quarter. This projection highlights the company's confidence in its financial performance and potential market resilience. Investors may find value in companies like TTAN that show strong operational results, indicating steady growth prospects. Tracking such key financial indicators can assist in making informed investment decisions.
TTAN Key Business Developments
Release Date: March 13, 2025
- Total Revenue (FY 2025): $772 million, 26% year-over-year growth.
- Subscription Revenue Growth (FY 2025): 28% year-over-year.
- Incremental Operating Margins (FY 2025): 27%, over 600 basis points improvement.
- Free Cash Flow (FY 2025): Positive for the first time.
- Gross Transaction Volume (Q4 2025): $17 billion, 26% year-over-year growth.
- Total Revenue (Q4 2025): $209.3 million, 29% year-over-year growth.
- Usage Revenue (Q4 2025): $43.4 million, 26% year-over-year growth.
- Subscription Revenue (Q4 2025): $156.7 million, 31% year-over-year growth.
- Net Dollar Retention (Q4 2025): Greater than 110%.
- Gross Dollar Retention (FY 2025): Greater than 95%.
- Total Active Customers (FY 2025): Approximately 9,500, 18% year-over-year growth.
- Platform Gross Margin (Q4 2025): 76.7%, 30 basis points improvement year-over-year.
- Total Gross Margin (Q4 2025): 70.2%, 80 basis points improvement year-over-year.
- Operating Income (Q4 2025): $6.9 million, 3.3% operating margin, 200 basis points improvement year-over-year.
- Free Cash Flow (Q4 2025): $10.8 million, up from negative $2.2 million in the prior year.
- Cash and Cash Equivalents (End of Q4 2025): $442 million.
- Debt (End of Q4 2025): $105 million.
- Q1 2026 Revenue Guidance: $207 million to $209 million.
- Q1 2026 Operating Income Guidance: $12 million to $13 million.
- FY 2026 Revenue Guidance: $895 million to $905 million.
- FY 2026 Operating Income Guidance: $48 million to $53 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ServiceTitan Inc (TTAN, Financial) reported a strong fiscal year 2025 with total revenue of $772 million, marking a 26% year-over-year growth.
- The company achieved a 28% year-over-year increase in subscription revenue, contributing significantly to overall growth.
- ServiceTitan Inc (TTAN) was free cash flow positive for the first time, indicating improved financial health.
- The company expanded its market presence by addressing more than 10 trades in both residential and commercial markets.
- ServiceTitan Inc (TTAN) saw a 29% year-over-year increase in Q4 total revenue, driven by strong growth in subscription and usage revenue.
Negative Points
- The company faces external variables such as macroeconomic conditions and weather patterns that impact Gross Transaction Volume (GTV).
- Q1 of fiscal 2026 is expected to have a 150 basis point headwind due to one fewer business day compared to the previous year.
- There is a shift in customer success metrics, which may impact platform gross margins and sales and marketing expenses.
- Despite strong Q4 performance, the company does not expect the same level of outperformance in GTV to continue consistently.
- ServiceTitan Inc (TTAN) acknowledges that no business is recession-proof, and macroeconomic uncertainties could affect future performance.
