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 announced impressive earnings for the second quarter of 2025, highlighting a notable transition towards profitability amidst a rapidly growing construction software market. The company reported revenue of $324 million, marking a 14% increase year-over-year and exceeding analysts’ expectations.
In terms of profitability, Procore saw its adjusted earnings per share (EPS) reach $0.35, which not only topped Wall Street forecasts but also improved significantly compared to the previous year. This impressive performance marks an earnings surprise of +45.83%, as consensus estimates predicted an EPS of $0.24.
Procore’s non-GAAP gross margin increased from 79% to 83%, indicating enhanced operational efficiency. Moreover, the non-GAAP operating margin turned positive at 13%, showcasing the company’s successful cost management strategies. Historically struggling with cash flow, Procore generated $31 million in operating cash flow and $11 million in free cash flow during the quarter.
The company also achieved a remarkable 95% gross revenue retention rate, with a 15% year-over-year increase in organic customers spending over $100,000 annually. Procore’s total count of organic customers is now at 17,501, establishing a robust foundation for recurring revenue.
In the context of a burgeoning construction software market, which is projected to grow at a 10.1% compound annual growth rate (CAGR) and expected to reach $10.76 billion by 2025, Procore holds a 7.4% market share, ranking as the second-largest player after Autodesk. North America is predicted to represent 42.45% of global demand for construction software solutions.
The company’s recent strategic acquisitions of Novorender and Flypaper Technologies are enhancing its Building Information Modeling (BIM) capabilities, aligning with the industry’s ongoing shift towards digital solutions. Furthermore, Procore received the FedRAMP “In Process” designation, enabling access to federal contracts valued at $2.41 billion by 2034.
Despite its successes, Procore faces stiff competition from industry rivals like Autodesk, Trimble, and Bentley Systems, all of which are investing heavily in AI-driven solutions. Nevertheless, Procore’s guidance for the upcoming quarter and the full fiscal year 2025 indicates confidence in sustainable growth, projecting revenues between $326 million and $328 million alongside an adjusted EPS of $1.14.
Current forecasts suggest an EPS of $0.31 on revenues of $327 million in the near term, and $1.14 on $1.29 billion in revenues by the end of the fiscal year. The recent focus on AI integration has led to enhancements in features such as task tracking and safety monitoring, further solidifying Procore’s competitive edge.
Procore’s diverse customer base, along with its recurring revenue model, offers a cushion against potential macroeconomic challenges, positioning the company as an attractive option for long-term investors. As it stands, Procore is at a critical juncture where its performance reflects a viable balance between growth and profitability in the rapidly evolving construction industry, appealing to stakeholders interested in the digital transformation of the sector.
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