ServiceTitan, Inc.

Thank you for standing by, and welcome to Service Titans, fourth quarter and full fiscal year 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. To remove yourself from the queue, you may press star 1 1 again. I would now like to hand the call over to Jason Reckle, Vice President, Investor Relations. Please, go ahead.

Thank you, Operator. Welcome, everyone, to ServiceTitan's fiscal fourth quarter and full fiscal year 2025 earnings conference call. With me are ServiceTitan's co-founder and CEO, Ara Madesian, co-founder and president, Vahey Kazilyan, and CFO, Dave Sherry. During today's call, we will review our fourth quarter and fiscal year 2025 results. We will also discuss our guidance for the first fiscal quarter and full fiscal year 2026. Before we get started, we want to draw your attention to the safe harbor statement included in today's press release and emphasize that information discussed on this call, including our guidance, is based on information as of today and contains forward-looking statements that involve risks, uncertainties, and assumptions. All statements other than statements of historical fact could be deemed to be forward-looking. Forward-looking statements reflect our views as of today only and except as required by law, we undertake no obligation to update or revise these forward-looking statements. Please take a look at our filings with the SEC for a discussion of the factors that could cause our results to differ. We also want to point out that we present non-GAAP measures in addition to and not as a substitute for financial measures prepared in accordance with generally accepted accounting principles. Definitions of these non-GAAP financial measures, along with reconciliation to our GAAP financial measures, are included in our earnings release, which we have furnished with the SEC, and is available on our website at investors.servicetitan.com. Unless otherwise stated, all references on this call to platform gross margin, gross margin, operating income, operating margin, free cash flow, and related growth rates are on a non-GAAP basis. Finally, we've posted an updated investor presentation that can be found on the investor relations website at investors.servicetitan.com, along with a replay of this call. And with that, let me turn the call over to Ara. Ara?

Thank you, Jason. And thank you for joining us today as we update you on our progress and plans for the new fiscal year. Our mission and growth formula are simple. We deliver enormous ROI to our customers, helping them further their success and reach even higher financial outcomes. And this allows them to grow their businesses, which drives more technicians and GTV onto our platform and leads to higher subscription and usage revenue for us. As they realize the ROI of our software, they buy more pro products, which continues to drive our growth and ultimately allows us to reinvest in even more high ROI solutions. Fundamentally, we've seen time and again that creating value for our customers is the right thing for our customers and for the financial success of our own business. It is because of this durable growth formula that the new public market era for the trades, for our customers, and for Service Titan is off to a good start. I am humbled by the way that our team, in partnership with our customers, capped off a transformative year. During fiscal year 2025, we delivered $772 million in total revenue, growing 26% year-over-year, led by 28% year-over-year subscription revenue growth. We achieved this while delivering 27% incremental operating margins, greater than 600 basis points of operating margin improvement, and we were free cash flow positive for the first time. Our goal is to be synonymous with the trades by addressing a large and durable market. And customers in North America spend roughly $1.5 trillion annually on services in the trades. There are 6 million people employed by the trades in the U S alone. And the jobs, these men and women complete every day are primarily immediate preventative or non-discretionary in nature. People don't go without air conditioning or heat. They need functional plumbing, even in the worst of times. And so the trades keeps our society running. We didn't always address the scope of the opportunity that we serve today. In fact, When we first built Service Titan to solve the problems our dad faced and to deliver exceptional ROI to our early customers, we started by addressing only the residential service plumbing market, and more specifically, only small residential service plumbing businesses. Over time, we deepened our plumbing capabilities for larger businesses. We were pulled into new trades in partnership with our customers, We expanded to serving commercial contractors. We matured our product portfolio, and we emerged as the market standard in many of the trades that we serve today. We now address more than 10 trades, both in the residential and commercial markets. We have a portfolio of pro and fintech products, and we've earned the right to support the largest and most sophisticated customers in the trades. The deep enterprise-grade features we built tailored specifically for the trades, has empowered the largest businesses to grow with us. By partnering deeply with these customers, we have become the market standard in these trades and earned the right to increase pro-product attach rates while also acquiring new customers. The most successful contractors have then pulled us into new trades, which is the core of our new market's expansion. This solid business foundation grounded in unique customer ROI is why I am proud of our Q4 performance. Our core trades performed well with a healthy combination of growth from both new and existing customers. Our customers are leveraging AI and automation across many key workflows, and our investments in commercial and roofing continue to deliver strong results. setting the stage for this cycle to compound into the future, all while we deliver high incremental margins and free cash flow resulting from focused execution. Looking into fiscal 2026, our goal is to build on this foundation. To execute against this goal, we have four primary areas of focus. To further expand our enterprise capabilities, to further expand pro-product adoption, to go deeper in commercial and to continue to grow in roofing. Thank you to our customers and our team for an amazing close to this transformative year for Service Titan and for the trades. We are on a mission to help every contractor further their success with Service Titan while building a generational business that becomes the operating system for the trades. I'll now pass it to my co-founder, our president, and my better half at work, who will provide you with more clarity on how we intend to execute on each of our four priorities this year. Vahe.