Procore Technologies Inc Earnings Overview
Procore Technologies Inc, a leader in construction management software, has reported exceptional financial results for the third quarter ending September 30, 2025. The company has shown both substantial revenue growth and operational improvements, setting a robust foundation for incoming CEO Ajei Gopal. Founder and outgoing CEO Tooey Courtemanche expressed confidence in Procore's direction, noting that the company is strategically positioned to leverage artificial intelligence and continue impacting the expansive construction industry positively.
Procore Technologies Inc Financial Results
Procore's financial results illustrate a successful third quarter with significant revenue increases and improved operational margins. Notable financial metrics for the quarter include:
| Financial Metric | Q3 2025 | Year-over-Year Change |
|---|---|---|
| Total Revenue | $339 million | Increase of 15% |
| GAAP Gross Margin | 80% | - |
| Non-GAAP Gross Margin | 84% | - |
| GAAP Operating Margin | -4% | - |
| Non-GAAP Operating Margin | 17% | - |
| Operating Cash Inflow | $88 million | - |
| Free Cash Inflow | $68 million | Increase of 194% |
The impressive year-over-year growth in both revenue and free cash flow underscores Procore's strong operational ethos and the effective implementation of its business strategies.
Revenue Breakdown by Segment
To better understand Procore's financial landscape, it's essential to evaluate the revenue breakdown across the company's major segments. Revenue is primarily driven by its software platform, which offers a suite of tools designed to increase efficiency in construction projects.
| Revenue Segment | Q3 2025 Revenue | Year-over-Year Growth |
|---|---|---|
| Software Platform Revenue | $339 million | 15% |
The consistent growth in Procore's software platform revenue is attributable to the company's ability to enhance its offerings with AI and other innovations, as well as its successful market expansion efforts.
In-depth Segment Performance Analysis
Procore Technologies' revenue growth demonstrates its robust market position and the increasing adoption of its software solutions. The enterprise achieved a gross revenue retention rate of 95%, indicating strong customer loyalty and satisfaction. The number of customers contributing more than $100,000 in annual recurring revenue rose by 15% to 2,602, reflecting substantial traction within key market demographics. Operational highlights from this quarter include significant advancements in AI capabilities offered through Procore Assist and the Procore Agent Builder.
Key Developments and Operational Highlights
This quarter, Procore Technologies managed to sharpen its competitive edge through strategic operational developments, including: - Hosting Groundbreak 2025 and introducing major AI innovations. - Achieving FedRAMP® Moderate Equivalency Designation. - Partnering strategically with AWS to boost AI product development and expand marketplace availability.
Each of these developments positions Procore to better tackle industry challenges and deliver enhanced value to its customer base.
Executive Insights
Howard Fu, CFO of Procore, expressed satisfaction with the company's financial performance, particularly emphasizing the firm's disciplined approach to maintaining operating leverage and efficient growth. The notion of 'efficient growth' combines both revenue augmentation and margin satisfaction, suggesting a well-rounded approach to business scalability.
Dividends and Share Repurchases
In terms of shareholder returns, Procore has been actively managing its capital through strategic share repurchases. Following the expiration of its initial stock repurchase program, a new $300 million repurchase program has been authorized by the Board of Directors. This demonstrates the company's commitment to driving shareholder value sustainably by repurchasing shares as market conditions allow.
Procore Technologies Inc Stock Forecast
Given Procore's impressive financial performance and ongoing strategic initiatives, the stock is positioned for potential appreciation in value. High and low projections for Procore’s stock price are influenced by its robust market presence, pioneering product advancements, and financial stability.
Stock Price Projections:
- High Projection : Assuming continued revenue growth and successful strategic execution, the stock could see an upside of approximately 20% over the next 12 months.
- Low Projection : If faced with market resistance or operational setbacks, the stock might adjust downwards by about 10%, reflecting global market conditions and competitive pressures.
Conclusion
Procore Technologies Inc stands as a formidable entity in the construction technology sphere, poised for sustained growth through its expansive use of modern technologies like AI and its strategic endeavors such as the AWS partnership. With a strong market position and forward-looking strategies, incoming CEO Ajei Gopal is set to drive the company towards enduring success and shareholder value enhancement.
