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.