Is ServiceTitan (NASDAQ:TTAN) Using Debt In A Risky Way?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We can see that ServiceTitan, Inc. (NASDAQ:TTAN) does use debt in its business. But is this debt a concern to shareholders?

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When Is Debt Dangerous?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.

What Is ServiceTitan's Debt?

The image below, which you can click on for greater detail, shows that ServiceTitan had debt of US$104.8m at the end of July 2025, a reduction from US$175.6m over a year. However, it does have US$471.5m in cash offsetting this, leading to net cash of US$366.7m.

A Look At ServiceTitan's Liabilities

The latest balance sheet data shows that ServiceTitan had liabilities of US$138.7m due within a year, and liabilities of US$155.7m falling due after that. On the other hand, it had cash of US$471.5m and US$101.3m worth of receivables due within a year. So it can boast US$278.4m more liquid assets than total liabilities.

This short term liquidity is a sign that ServiceTitan could probably pay off its debt with ease, as its balance sheet is far from stretched. Succinctly put, ServiceTitan boasts net cash, so it's fair to say it does not have a heavy debt load! The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if ServiceTitan can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.

Check out our latest analysis for ServiceTitan

Over 12 months, ServiceTitan reported revenue of US$866m, which is a gain of 26%, although it did not report any earnings before interest and tax. With any luck the company will be able to grow its way to profitability.

So How Risky Is ServiceTitan?

Although ServiceTitan had an earnings before interest and tax (EBIT) loss over the last twelve months, it generated positive free cash flow of US$33m. So taking that on face value, and considering the net cash situation, we don't think that the stock is too risky in the near term. We think its revenue growth of 26% is a good sign. There's no doubt fast top line growth can cure all manner of ills, for a stock. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. Be aware that ServiceTitan is showing 2 warning signs in our investment analysis , you should know about...

If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.

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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.