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ServiceTitan's AI Product Is Now a Reported Revenue Headwind: Max Contracts Go Unbilled for a Full Quarter, and the Stock Fell 30% in One Session
ServiceTitan reported fiscal Q2 2027 revenue of $292.8M, up 21%, with usage revenue up 24%, free cash flow up 47% to $50.5M, and NDR above 110%, then lost more than $2B of market cap in one day on back-half guidance of roughly 15% growth against 25% a year prior. The company does not bill for the first quarter of a Max agentic-platform contract, creating a stated $4M-$5M near-term revenue drag spread across four to six quarters, and it deferred expansion into commercial and residential exterior trades to fund Max, with R&D up 38% while sales and marketing grew 10.7%. This is the clearest public example yet of an incumbent's AI transition showing up as a growth deceleration rather than an expansion story.
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