Procore Announces Fourth Quarter and Full Year 2025 Financial Results

CARPINTERIA, Calif.--( BUSINESS WIRE)-- Procore Technologies, Inc. (NYSE: PCOR), the leading global provider of construction management software, today announced financial results for the fourth quarter and full year ended December 31, 2025.

“We closed out a strong year with exceptional Q4 results,” said Ajei Gopal, President and CEO of Procore. “Procore has built an incredible franchise with amazing technology. We believe AI stands to be the next meaningful catalyst for our industry and that Procore is strongly positioned to be an AI winner as we drive immense efficiency gains across our customers and the entire construction lifecycle.”

“I am proud of our Q4 performance, which delivered consistent revenue growth and the largest free cash flow quarter in the company’s history,” said Howard Fu, CFO of Procore. “We enter 2026 with strong momentum and we are committed to driving durable growth and strong per share improvements over the long-term.”

Fourth Quarter 2025 Financial Highlights:

Full Year 2025 Financial Highlights:

The financial results included in this press release are preliminary and will not be final until Procore files its Annual Report on Form 10-K for the period. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Recent Business Highlights:

First Quarter and Full Year 2026 Outlook:

Procore is providing the following guidance for the first quarter and full year 2026:

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Procore’s future GAAP financial results.

Quarterly Conference Call

Procore Technologies, Inc. will hold a conference call to discuss its fourth quarter and full year results at 2:00 p.m., Pacific Time, on Thursday, February 12, 2026. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Procore and its industry, including our outlook for first quarter 2026 and the full fiscal year 2026 and our vision and expected benefits relating to artificial intelligence, that involve substantial risks and uncertainties. All statements in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events, future financial or operating performance, or new, planned, or upgraded products, services, or features, and may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” or the negative of these words, or other similar terms or expressions that concern Procore’s expectations, strategy, plans, or intentions.

Procore has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that Procore believes may affect its business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors that could cause results to differ materially from Procore’s current expectations, including, but not limited to, our expectations regarding our financial performance (including revenues, expenses, and margins, and our ability to achieve or maintain future profitability), our ability to effectively manage our growth, anticipated performance, trends, growth rates, and challenges in our business and in the markets in which we operate or anticipate entering into, economic and industry trends (in particular, the rate of adoption of construction management software and digitization of the construction industry, inflation, interest rates, tariffs, and challenging geopolitical or macroeconomic conditions), our ability to realize the expected benefits of our go-to-market transition, our ability to attract new customers and retain and increase sales to existing customers, our ability to expand internationally, the effects of increased competition in our markets and our ability to compete effectively, our estimated total addressable market, our ability to execute, and realize benefits from, our stock repurchase program, our ability to develop and integrate new products platform capabilities, services, and features in an efficient and timely manner and get our customers and prospective customers to adopt such new products, platform capabilities, services, and features, and as set forth in Procore’s filings with the Securities and Exchange Commission, including in the section titled “Risk Factors” in Procore’s Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 26, 2025, as updated by Procore’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed on August 1, 2025. You should not rely on Procore’s forward-looking statements. Procore assumes no obligation to update any forward-looking statements to reflect events or circumstances that exist or change after the date on which they were made, except as required by law.

Non-GAAP Financial Measures

In addition to Procore’s results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Procore believes certain non-GAAP measures, as described below, are useful in evaluating Procore’s operating performance. Procore uses this non-GAAP financial information, collectively, to evaluate its ongoing operations as well as for internal planning and forecasting purposes. Procore believes that non-GAAP financial information, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, and may assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. These non-GAAP financial measures are not prepared in accordance with GAAP, and are presented for supplemental purposes only.

Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Income from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Net Income per Share: Procore defines these non-GAAP financial measures as the respective GAAP measures, excluding stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax related to employee stock transactions, and acquisition-related expenses. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenue. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP income from operations by total revenue. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Non-GAAP diluted earnings per share is computed by giving effect to all potential weighted average dilutive common stock equivalents outstanding for the period, including options to purchase common stock, restricted stock units, and shares to be issued pursuant to the employee stock purchase plan. The dilutive effect of outstanding awards is reflected in non-GAAP diluted earnings per share by application of the treasury stock method.

Stock-based compensation expense includes the net effects of capitalization and amortization of stock-based compensation expense related to capitalized software and cloud-computing arrangement implementation costs. Stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of the compensation provided to our employees. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is a non-cash expense and is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, Procore believes non-GAAP measures that adjust for the amortization of acquired intangible assets provide investors a consistent basis for comparison across accounting periods. The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Procore’s control and that do not correlate to the operation of the business. When evaluating the performance of its business and making operating plans, Procore does not consider these items (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution than the accounting charges associated with such grants). Since the amount of employer payroll tax-related items on employee stock transactions is highly variable due to factors outside our control, and unrelated to Procore’s core operations, operating results, revenue-generating activities, business strategy, industry, or regulatory environment, management does not consider employer payroll tax on employee stock transactions in the evaluation of the business or in making operating plans. Accordingly, Procore believes this adjustment in arriving at our non-GAAP measures provides investors with a better understanding of the performance of its core business in a manner that is consistent with management’s view of the business. Acquisition-related expenses include external and incremental transaction costs, such as legal and due diligence costs and retention or other compensation payments. These expenses are unpredictable and generally would not have otherwise been incurred in the periods presented as part of our continuing operations. In addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition-related expenses, may not be indicative of such future costs. Procore believes that excluding acquisition-related expenses facilitates the comparison of its financial results to its historical operating results and to other companies in its industry. Overall, Procore believes it is useful to exclude these expenses in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Procore's own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in Procore's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on Procore's reported financial results. Unlike stock-based compensation expense, employer payroll tax related to employee stock transactions is a cash expense that we will continue to incur in the future. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Procore's business.

Free Cash Flow: Procore defines free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized software development costs. Procore believes free cash flow is an important liquidity measure of the cash (if any) that is available, after our operating activities and capital expenditures. Procore uses free cash flow in conjunction with traditional GAAP measures to assess its liquidity and evaluate the effectiveness of its business strategies. Once Procore’s business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth, and execute our stock repurchase program.

Other Metrics

Customer Count: The aforementioned customer count excludes customers acquired from business combinations that do not have standard Procore annual contracts.

Gross Revenue Retention Rate and Annual Recurring Revenue: For information on how we calculate gross revenue retention rate and annual recurring revenue, refer to our most recent Quarterly Report on Form 10-Q.

About Procore

Procore Technologies, Inc. (NYSE: PCOR) is a leading technology partner for every stage of construction. Built for the industry, Procore’s unified technology platform drives efficiency and mitigates risk through AI & data-driven insights and decision making. Over three million projects have run on Procore across 150+ countries. For more information, visit www.procore.com.

PROCORE-IR

Category: Earnings

Procore Technologies, Inc.

Condensed Consolidated Statements of Operations (unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands, except share and per share amounts)

Revenue

349,107

302,048

1,322,509

1,151,708

Cost of revenue (1)(2)(3)

69,412

56,834

270,832

205,612

Gross profit

279,695

245,214

1,051,677

946,096

Operating expenses

Sales and marketing (1)(2)(3)(4)

155,809

161,733

580,680

552,019

Research and development (1)(2)(3)(4)

97,813

89,289

362,373

312,987

General and administrative (1)(3)(4)

68,874

60,436

232,967

217,513

Total operating expenses

322,496

311,458

1,176,020

1,082,519

Loss from operations

(42,801

)

(66,244

)

(124,343

)

(136,423

)

Interest income

5,103

5,980

20,941

23,694

Interest expense

(294

)

(460

)

(1,153

)

(1,899

)

Accretion income, net

1,723

2,918

8,265

13,583

Other income (expense), net

105

(3,110

)

2,309

(3,136

)

Loss before provision for income taxes

(36,164

)

(60,916

)

(93,981

)

(104,181

)

Provision for income taxes

1,440

1,375

6,802

1,775

Net loss

(37,604

)

(62,291

)

(100,783

)

(105,956

)

Net loss per share attributable to common stockholders, basic and diluted

(0.25

)

(0.42

)

(0.67

)

(0.72

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

151,043,395

149,202,684

150,247,067

147,444,772

(1)

Includes stock-based compensation expense and amortization of capitalized stock-based compensation as follows:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Cost of revenue

6,198

4,422

23,489

15,478

Sales and marketing

25,077

15,333

74,274

58,058

Research and development

28,976

18,277

89,606

67,961

General and administrative

21,371

13,734

62,962

53,336

Total stock-based compensation expense*

81,622

51,766

250,331

194,833

*Includes amortization of capitalized stock-based compensation of $3.2 million and $2.5 million, respectively, for the three months ended December 31, 2025 and 2024; and $11.9 million and $8.0 million, respectively, for the years ended December 31, 2025 and 2024, which was initially capitalized as capitalized software and cloud-computing arrangement implementation costs, and was primarily amortized in cost of revenue.

(2)

Includes amortization of acquired intangible assets as follows:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Cost of revenue

6,544

6,698

29,820

25,437

Sales and marketing

1,729

3,224

11,727

12,700

Research and development

652

650

2,603

2,657

Total amortization of acquired intangible assets

8,925

10,572

44,150

40,794

(3)

Includes employer payroll tax on employee stock transactions as follows:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Cost of revenue

162

126

804

612

Sales and marketing

660

360

3,099

3,227

Research and development

532

446

3,990

3,535

General and administrative

360

266

1,999

2,086

Total employer payroll tax on employee stock transactions

1,714

1,198

9,892

9,460

(4)

Includes acquisition-related expenses as follows:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Sales and marketing

144

—

1,077

1,448

Research and development

695

3,134

General and administrative

1,587

194

2,366

808

Total acquisition-related expenses

2,426

226

6,577

2,288

Procore Technologies, Inc.

Condensed Consolidated Balance Sheets (unaudited)

December 31,

2025

2024

(in thousands)

Assets

Current assets

Cash and cash equivalents

480,684

437,722

Marketable securities, current

287,802

337,673

Accounts receivable, net

287,805

246,472

Contract cost asset, current

55,384

33,922

Prepaid expenses and other current assets

55,157

44,090

Total current assets

1,166,832

1,099,879

Marketable securities, non-current

42,529

46,042

Capitalized software development costs, net

142,228

112,321

Property and equipment, net

48,624

43,592

Right of use assets - finance leases

19,619

31,727

Right of use assets - operating leases

36,024

28,790

Contract cost asset, non-current

79,004

47,505

Intangible assets, net

105,364

120,946

Goodwill

574,083

549,651

Other assets

24,758

20,918

Total assets

2,239,065

2,101,371

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

25,168

33,146

Accrued expenses

130,280

88,740

Deferred revenue, current

687,062

584,719

Other current liabilities

42,047

21,427

Total current liabilities

884,557

728,032

Deferred revenue, non-current

6,041

5,815

Finance lease liabilities, non-current

26,557

41,352

Operating lease liabilities, non-current

45,855

32,697

Other liabilities, non-current

13,793

5,122

Total liabilities

976,803

813,018

Stockholders’ equity

Common stock

Additional paid-in capital

2,609,093

2,535,868

Accumulated other comprehensive loss

(1,270

)

(2,737

)

Accumulated deficit

(1,345,576

)

(1,244,793

)

Total stockholders’ equity

1,262,262

1,288,353

Total liabilities and stockholders’ equity

2,239,065

2,101,371

December 31,

Change

2025

2024

Dollar

Percent

(dollars in thousands)

Remaining performance obligations

Current

1,009,293

829,666

179,627

22 %

Non-current

581,570

456,801

124,769

27 %

Total remaining performance obligations

1,590,863

1,286,467

304,396

24 %

Procore Technologies, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(37,604

)

(62,291

)

(100,783

)

(105,956

)

78,402

49,348

238,425

186,880

27,288

24,626

110,576

89,753

(1,719

)

(2,699

)

(7,882

)

(12,830

)

672

610

3,540

1,428

1,528

3,196

5,839

11,102

(340

)

2,009

(1,862

)

2,304

(9,011

)

(885

)

(6,820

)

(881

)

570

(57

)

(514

)

591

(361

)

(124

)

(454

)

(82,428

)

(73,797

)

(39,817

)

(39,501

)

(20,198

)

(5,776

)

(51,965

)

(8,993

)

10,801

8,803

(5,698

)

(3,318

)

(3,982

)

8,700

(8,173

)

19,729

32,812

(7,026

)

62,980

(15,501

)

115,412

85,359

100,099

79,091

1,700

(1,067

)

1,049

(7,272

)

113,542

29,056

298,870

196,172

(5,700

)

(11,633

)

(18,100

)

(19,143

)

(17,763

)

(17,076

)

(65,663

)

(49,529

)

(510

)

(450

)

(2,151

)

(2,367

)

(73,652

)

(80,856

)

(351,465

)

(491,475

)

122,206

68,819

409,230

440,537

2,698

1,605

(41,515

)

(25,945

)

(3,533

)

(3,792

)

24,581

(41,162

)

(70,499

)

(150,109

)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Financing activities

Proceeds from stock option exercises

3,030

3,366

11,809

15,737

Proceeds from employee stock purchase plan

11,928

10,882

26,332

24,069

Repurchases of common stock

(23

)

—

(128,838

)

—

Payment of tax withholding for net share settlement

(22,947

)

—

(94,120

)

—

Payment of deferred business combination consideration

—

(1,470

)

Payment of deferred asset acquisition consideration

—

(81

)

Principal payments under finance lease agreements, net of proceeds from lease incentives

(420

)

(450

)

(1,636

)

(2,019

)

Net increase in funds held for customers

2,700

—

8,951

—

Net cash (used in) provided by financing activities

(5,732

)

13,798

(177,502

)

36,236

Net increase in cash, cash equivalents and restricted cash

132,391

1,692

50,869

82,299

Effect of exchange rate changes on cash

495

(3,268

)

1,655

(2,367

)

Cash, cash equivalents and restricted cash, beginning of period

357,360

439,298

437,722

357,790

Cash, cash equivalents and restricted cash, end of period

490,246

437,722

490,246

437,722

Procore Technologies, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)

Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(dollars in thousands)

Revenue

349,107

302,048

1,322,509

1,151,708

Gross profit

279,695

245,214

1,051,677

946,096

Stock-based compensation expense

6,198

4,422

23,489

15,478

Amortization of acquired technology intangible assets

6,544

6,698

29,820

25,437

Employer payroll tax on employee stock transactions

162

126

804

612

Non-GAAP gross profit

292,599

256,460

1,105,790

987,623

Gross margin

Non-GAAP gross margin

Reconciliation of operating expenses to non-GAAP operating expenses:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(dollars in thousands)

Revenue

349,107

302,048

1,322,509

1,151,708

GAAP sales and marketing

155,809

161,733

580,680

552,019

Stock-based compensation expense

(25,077

)

(15,333

)

(74,274

)

(58,058

)

Amortization of acquired intangible assets

(1,729

)

(3,224

)

(11,727

)

(12,700

)

Employer payroll tax on employee stock transactions

(660

)

(360

)

(3,099

)

(3,227

)

Acquisition-related expenses

(144

)

—

(1,077

)

(1,448

)

Non-GAAP sales and marketing

128,199

142,816

490,503

476,586

GAAP sales and marketing as a percentage of revenue

Non-GAAP sales and marketing as a percentage of revenue

GAAP research and development

97,813

89,289

362,373

312,987

Stock-based compensation expense

(28,976

)

(18,277

)

(89,606

)

(67,961

)

Amortization of acquired intangible assets

(652

)

(650

)

(2,603

)

(2,657

)

Employer payroll tax on employee stock transactions

(532

)

(446

)

(3,990

)

(3,535

)

Acquisition-related expenses

(695

)

(32

)

(3,134

)

(32

)

Non-GAAP research and development

66,958

69,884

263,040

238,802

GAAP research and development as a percentage of revenue

Non-GAAP research and development as a percentage of revenue

GAAP general and administrative

68,874

60,436

232,967

217,513

Stock-based compensation expense

(21,371

)

(13,734

)

(62,962

)

(53,336

)

Employer payroll tax on employee stock transactions

(360

)

(266

)

(1,999

)

(2,086

)

Acquisition-related expenses

(1,587

)

(194

)

(2,366

)

(808

)

Non-GAAP general and administrative

45,556

46,242

165,640

161,283

GAAP general and administrative as a percentage of revenue

Non-GAAP general and administrative as a percentage of revenue

Reconciliation of loss from operations and operating margin to non-GAAP income (loss) from operations and non-GAAP operating margin:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(dollars in thousands)

Revenue

349,107

302,048

1,322,509

1,151,708

Loss from operations

(42,801

)

(66,244

)

(124,343

)

(136,423

)

Stock-based compensation expense

81,622

51,766

250,331

194,833

Amortization of acquired intangible assets

8,925

10,572

44,150

40,794

Employer payroll tax on employee stock transactions

1,714

1,198

9,892

9,460

Acquisition-related expenses

2,426

226

6,577

2,288

Non-GAAP income (loss) from operations

51,886

(2,482

)

186,607

110,952

Operating margin

(12

(22

(12

Non-GAAP operating margin

Reconciliation of net loss and net loss per share to non-GAAP net income and non-GAAP net income per share:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands, except share and per share amounts)

Revenue

349,107

302,048

1,322,509

1,151,708

Net loss

(37,604

)

(62,291

)

(100,783

)

(105,956

)

Stock-based compensation expense

81,622

51,766

250,331

194,833

Amortization of acquired intangible assets

8,925

10,572

44,150

40,794

Employer payroll tax on employee stock transactions

1,714

1,198

9,892

9,460

Acquisition-related expenses

2,426

226

6,577

2,288

Non-GAAP net income

57,083

1,471

210,167

141,419

Numerator:

Non-GAAP net income

57,083

1,471

210,167

141,419

Denominator:

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic

151,043,395

149,202,684

150,247,067

147,444,772

Effect of dilutive securities: Employee stock awards

3,265,524

4,192,863

4,503,351

5,004,643

Weighted-average shares used in computing net income per share attributable to common stockholders, diluted

154,308,919

153,395,547

154,750,418

152,449,415

GAAP net loss per share, basic

(0.25

)

(0.42

)

(0.67

)

(0.72

)

GAAP net loss per share, diluted

(0.25

)

(0.42

)

(0.67

)

(0.72

)

Non-GAAP net income per share, basic

0.38

0.01

1.40

0.96

Non-GAAP net income per share, diluted

0.37

0.01

1.36

0.93

Computation of free cash flow:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(in thousands)

Net cash provided by operating activities

113,542

29,056

298,870

196,172

Purchases of property, plant, and equipment

(5,700

)

(11,633

)

(18,100

)

(19,143

)

Capitalized software development costs

(17,763

)

(17,076

)

(65,663

)

(49,529

)

Non-GAAP free cash flow

90,079

347

215,107

127,500

Operating cash flow margin

Non-GAAP free cash flow margin