Procore Technologies Reports Strong Q2 Financial Results

News Summary

Procore Technologies has revealed impressive financial results for the second quarter, reporting a 14% revenue increase to $323.9 million. Despite a decline in non-GAAP operating margin, the company has focused on significant investments in R&D and customer retention, adding 195 new customers. Procore’s efforts in strategic acquisitions and achieving cloud security compliance are indicative of its commitment to future growth. The company projects continued revenue growth for the upcoming quarters, emphasizing its market presence even amid macroeconomic challenges.

Procore Technologies Reports Solid Growth in Q2 2025 Financial Results

Procore Technologies, Inc. has announced its financial performance for the second quarter of fiscal year 2025, showcasing significant revenue growth and strategic movements in the market. The company reported a GAAP revenue of $323.9 million, marking a 14% increase compared to $284.3 million in the same period last year. This revenue figure also surpassed analysts’ expectations, which were anticipated to be around $312.4 million.

Operating Margins and Cash Flow Insights

Despite the impressive revenue growth, the company experienced a decrease in its non-GAAP operating margin, which fell to 13% in Q2 2025 from 18% the previous year. This decline indicates increased investments in operations aimed at fueling growth and enhancing service delivery. In addition, free cash flow saw a significant drop to $10.6 million during Q2, a staggering decline of approximately 77.2% from $46.6 million recorded in Q1 2025.

For the quarter, Procore revealed a non-GAAP earnings per share (EPS) of $0.35, surpassing the estimated $0.26 and reflecting the company’s robust performance overall. Operating expenses rose as the company focused on investments in both research and development (R&D) and sales initiatives, with R&D costs up by 23% to $88.9 million.

Customer Growth and Retention Rates

During this quarter, Procore added 195 new organic customers, increasing its total organic customer base to 17,501. Notably, customers contributing over $100,000 in annual recurring revenue grew by 15% year-over-year, totaling 2,517 such customers. The company’s gross revenue retention rate remained strong at 95%, indicating effective customer relationship management and service delivery.

Strategic Acquisitions and Compliance Milestones

Procore also pursued strategic acquisitions, successfully acquiring Novorender and Flypaper Technologies. These acquisitions aim to enhance its capabilities in Building Information Modeling (BIM), which is crucial for modern construction practices. Additionally, the company achieved a significant milestone by receiving the “In Process” designation for the Federal Risk and Authorization Management Program (FedRAMP), which underscores its commitment to meeting cloud security compliance standards.

Financial Position and Projections for Q3 2025

As of the end of Q2 2025, Procore reported cash and cash equivalents totaling $324.3 million, despite returning approximately $100 million to shareholders through stock repurchases in early 2025. Furthermore, the remaining performance obligations (RPO) showed promising double-digit growth, demonstrating ongoing sales engagement, particularly with larger clients.

Looking ahead, Procore’s management projects a revenue forecast for Q3 2025 of between $326 million and $328 million, signaling a yearly growth of 10–11%. For the entirety of 2025, revenue expectations are set between $1,299 million and $1,302 million, indicating an overall year-over-year growth of 13%.

Outlook and Considerations for Investors

Procore has anticipated a non-GAAP operating margin for the full year 2025 to remain between 13% and 13.5%. However, the company’s leadership has emphasized a cautious approach toward forecasting, considering potential slower activity in the construction sector and various macroeconomic risks. Investors are encouraged to monitor trends related to margins, cash flow stability, and the pace of acquiring larger customers as the company continues to navigate the uncertainties in the construction industry.

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Additional Resources

• AOL Finance: Procore Q2 Revenue Jumps
• Wikipedia: Procore Technologies
• Business Wire: Procore Announces Q2 2025 Financial Results
• Google Search: Procore Technologies Q2 2025
• Seeking Alpha: Procore Q2 Earnings Preview
• Encyclopedia Britannica: Procore Technologies