ServiceTitan, Inc. Leases Disclosure
The Company has operating leases for its corporate offices. The leases have remaining lease terms ranging from to six years, with certain leases having various term extensions available. These options to extend have not been recognized as part of the Company’s ROU assets and lease liabilities as it is not reasonably certain that the Company will exercise these options. The lease agreements do not contain any residual value guarantees or material restrictive covenants. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for as single lease component for all assets. The lease costs are allocated within cost of revenue and operating expenses on the consolidated statements of operations.
Information related to the Company’s leases is as follows (in thousands, except years and percentages):
|
|
As of January 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Assets |
|
|
|
|
|
|
||
Operating lease right of use assets |
|
$ |
18,627 |
|
|
$ |
24,025 |
|
Liabilities |
|
|
|
|
|
|
||
Current lease liabilities |
|
$ |
14,052 |
|
|
$ |
12,996 |
|
Long-term lease liabilities |
|
$ |
37,322 |
|
|
$ |
47,327 |
|
Weighted-average lease term (years) |
|
3.9 |
|
|
4.6 |
|
||
Weighted-average discount rate |
|
|
4.5 |
% |
|
|
3.9 |
% |
|
|
Fiscal |
|
|||||||||
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Lease costs |
|
|
|
|
|
|
|
|
|
|||
Operating lease costs |
|
$ |
7,870 |
|
|
$ |
8,799 |
|
|
$ |
10,178 |
|
Short-term lease costs |
|
|
804 |
|
|
|
320 |
|
|
|
1,269 |
|
Variable lease costs |
|
|
303 |
|
|
|
216 |
|
|
|
378 |
|
Sublease income |
|
|
(3,028 |
) |
|
|
(403 |
) |
|
|
— |
|
|
|
$ |
5,949 |
|
|
$ |
8,932 |
|
|
$ |
11,825 |
|
In fiscal 2026, 2025 and 2024, the Company recorded an impairment of $2.7 million, $13.1 million and $1.1 million of an ROU asset, respectively (See Note 4).
Future minimum lease payments under noncancelable leases included in the calculation of lease liabilities as of January 31, 2026 were as follows (in thousands):
Fiscal |
|
|
|
|
2027 |
|
$ |
14,084 |
|
2028 |
|
|
13,339 |
|
2029 |
|
|
11,728 |
|
2030 |
|
|
10,960 |
|
2031 |
|
|
5,709 |
|
Total future minimum payments |
|
|
55,820 |
|
Less: Interest |
|
|
(4,446 |
) |
Total |
|
$ |
51,374 |
|
There were no noncancelable leases executed, but which have not yet commenced as of January 31, 2026.
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About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.