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 Strong Q2 2025 Results with Revenue Growth and Strategic Acquisitions
Q2 Financial Highlights
Procore Technologies, Inc. has announced impressive financial results for the second quarter of 2025, showcasing strong revenue growth fueled by strategic expansions. The company’s GAAP revenue reached $323.9 million, marking a notable 14% increase from $284.3 million in Q2 2024. This performance surpassed analyst expectations, which projected revenue to hit around $312.4 million.
Operating Margins and Cash Flow
Despite the positive revenue figures, Procore experienced a decline in its non-GAAP operating margin, which decreased to 13% compared to 18% in the same quarter of the previous year. This decline is attributed to the company’s increased investments in operations, particularly in research and development. The company’s free cash flow saw a substantial drop to $10.6 million in Q2 2025, down from $46.6 million in Q1 2025, reflecting a decrease of approximately 77.2%.
Growth in Earnings Per Share
The quarterly earnings per share (EPS) on a non-GAAP basis stood at $0.35, surpassing the expectations set by analysts, which were at $0.26. This achievement highlights the company’s ability to maintain profitability amid increasing expenses.
Investment in Customer Relationships
During Q2, Procore successfully added 195 new organic customers, bringing its total organic customer count to 17,501. Furthermore, customers that contribute over $100,000 in annual recurring revenue rose 15% year-over-year, totaling 2,517 such customers. The company maintained a robust gross revenue retention rate of 95%, reflecting strong customer loyalty and satisfaction.
Strategic Acquisitions
In its ongoing efforts to enhance its offerings, Procore completed the acquisitions of Novorender and Flypaper Technologies during the quarter. These acquisitions are expected to bolster the company’s capabilities in Building Information Modeling (BIM), a crucial aspect of construction management. Additionally, Procore achieved a significant milestone by receiving the “In Process” designation for the Federal Risk and Authorization Management Program (FedRAMP), which pertains to cloud security compliance.
Cash on Hand and Shareholder Returns
At the conclusion of the quarter, Procore reported $324.3 million in cash and cash equivalents, demonstrating financial stability even after returning around $100 million to shareholders via stock buybacks in the first half of 2025.
Future Projections
Looking ahead, Procore’s management has provided projections for the third quarter of 2025, estimating revenue to fall between $326 million and $328 million, which suggests a year-over-year growth of 10–11%. For the full year of 2025, the company expects total revenue to reach between $1,299 million and $1,302 million, indicating an overall growth of 13% compared to the previous year. The non-GAAP operating margin for the entire year is anticipated to remain between 13% and 13.5%.
Market Considerations
Procore’s leadership has adopted a cautious approach in its forecasts, attributing this to potential slowdowns in construction activity and broader macroeconomic risks. Investors are encouraged to keep a close watch on margin trends, cash flow stability, and the pace of large customer acquisitions as the company navigates the uncertain landscape of the construction industry.
Deeper Dive: News & Info About This Topic
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
Author: Construction TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
