Procore Technologies team working on innovative software solutions.
Procore Technologies has posted impressive financial results for Q2, showcasing a revenue increase of 14% year-over-year, indicating a significant step towards profitability. With an EPS of $0.35, the company exceeded market expectations and demonstrated robust financial metrics. Notable organic customer growth and a high gross revenue retention rate reinforce Procore’s strong position in the construction software sector, poised for future growth amid a competitive landscape.
Procore Technologies (PCOR) has reported impressive earnings for the second quarter of 2025, showcasing a significant year-over-year growth that has exceeded market expectations. The construction software firm generated revenue of $324 million, marking a 14% increase compared to the same period last year. This performance is being hailed as a potential turning point for the company as it signals a shift toward sustained profitability.
The company’s adjusted earnings per share (EPS) for the quarter stood at $0.35, surpassing the consensus forecast of $0.24 per share by an impressive 45.83%. This marks the third time in four quarters that Procore has exceeded Wall Street expectations for EPS, demonstrating an upward trajectory in financial performance. Notably, the revenue of $323.92 million also beat the Zacks Consensus Estimate by 4%.
Procore’s non-GAAP gross margin increased to 83%, growing from 79% in prior periods. The company also turned its non-GAAP operating margin positive at 13%, reflecting its enhanced operational efficiency and successful cost management strategies. Notably, Procore generated $31 million in operating cash flow and $11 million in free cash flow, a stark contrast to its historical trend of negative cash flow.
Customer retention remains strong for Procore, with an impressive 95% gross revenue retention rate. The number of organic customers spending over $100,000 annually has increased by 15% year-over-year, bringing the total count of organic customers to 17,501. This sets a robust foundation for recurring revenue, critical in an industry facing various market uncertainties.
The construction software market is poised for growth, expected to reach $10.76 billion by 2025, with a compound annual growth rate (CAGR) of 10.1% through 2032. Procore holds a 7.4% market share in this sector, making it the second-largest player after Autodesk. The company is further strengthening its position through strategic acquisitions, including Novorender and Flypaper Technologies, which enhance its Building Information Modeling (BIM) capabilities as the sector continues its digital evolution.
In addition to its strong financial performance, Procore has received a FedRAMP “In Process” designation, allowing access to federal contracts valued at $2.41 billion by 2034. However, the company does face competition from major players like Autodesk, Trimble, and Bentley Systems, which are concentrating on AI-driven solutions.
Looking ahead, Procore projects revenues for the third quarter of 2025 to be between $326 million and $328 million, alongside an adjusted EPS forecast of $1.14. Current consensus estimates predict an EPS of $0.31 on $327 million in revenues for the upcoming quarter and $1.14 on $1.29 billion in revenues for the fiscal year. The focus on AI integration, particularly in task tracking and safety monitoring, further positions Procore for long-term sustainability.
Procore’s diverse customer base and its recurring revenue model are viewed as protective factors against potential macroeconomic challenges. With a growing emphasis on digital transformation within the construction sector, the company’s latest earnings reflect a significant balance between growth and profitability that is expected to attract long-term investors interested in this evolving landscape.
News Summary Procopio Companies has completed the structural framework for 57 Main in Marlborough, a…
News Summary Clarke Inc. has implemented a $250 million refinancing and asset repurposing strategy to…
News Summary Victor Hernandez has been promoted to assistant project manager for Skanska on the…
News Summary The Advancing Construction Quality 2025 Conference will convene over 500 leaders in Nashville…
News Summary The global vocational training market is experiencing significant growth due to a surge…
News Summary Tough Commerce, a leader in job management software for the construction industry, has…