Summary
Procore Technologies started fiscal 2025 with double-digit top-line growth but wider losses. First-quarter revenue was $310.63 million, up 15.3% from $269.43 million in the prior-year quarter. Gross profit rose 9.8% to $245.71 million, yet gross margin slipped to 79.1% from 83.0%. The operating loss widened to $36.24 million from $18.91 million, and operating margin fell to -11.7% from -7.0%. Net loss widened to $32.99 million from $10.97 million, while diluted EPS moved to -$0.22 from -$0.08. On a non-GAAP basis, operating margin was 10%. Non-GAAP gross margin was 83%. The gap between GAAP and non-GAAP results reflects heavy stock-based compensation and amortization charges.
Operational metrics show a customer base that keeps expanding, though growth is not uniform. Gross revenue retention was 95% in the first quarter. Customers contributing more than $100,000 of annual recurring revenue totaled 2,418 as of March 31, 2025, up 14% year over year. The company added 218 net new organic customers in the quarter and ended with 17,306 organic customers. Non-U.S. revenue was 15% of total revenue for the three months ended March 31, 2025, compared with 14% a year earlier. Remaining performance obligations were $1.30 billion, up 30% from $1.00 billion. Deferred revenue, current portion, rose 14.8% to $560.14 million.
Cash generation remains positive but is no longer growing. Operating cash flow was $66.03 million, down 4.5% from $69.14 million in the prior-year quarter. Capital expenditures were $4.03 million, up 93.1% from $2.09 million. Free cash flow, which subtracts property and equipment purchases and capitalized software development costs from operating cash flow, was $47 million in the quarter. The company repurchased approximately 1.5 million shares for approximately $100 million, leaving approximately $200 million available under its existing authorization.
Guidance points to a slower second quarter but a steadier full year. For the second quarter of 2025, management expects revenue of $310 million to $312 million, representing 9% to 10% year-over-year growth, and non-GAAP operating margin of 11% to 11.5%. For the full fiscal year 2025, revenue is expected to be $1,286 million to $1,290 million, representing 12% growth, with non-GAAP operating margin of 13% to 13.5%. Management said it is prepared to manage through an evolving tariff landscape and remains confident in achieving full-year guidance. The company did not provide a reconciliation of non-GAAP guidance to GAAP measures without unreasonable effort.
Margin pressure and macro risks remain central. Cost of revenue increased because of higher personnel costs, amortization of capitalized software development costs, third-party cloud hosting, and amortization of developed technology intangible assets. Gross margin declined 3.9 percentage points year over year. The company also faces cautious customer spending, increased pricing sensitivity, tariffs, higher interest rates, and foreign exchange volatility. It is investing in a general manager-led go-to-market model and expects near-term disruption from that transition. Headcount changes show where investment is going: research and development headcount rose 55% since March 31, 2024, cost of revenue headcount rose 22%, and sales and marketing headcount rose 10%, while general and administrative headcount fell 2%. International expansion and acquisitions add execution risk. The stock repurchase program expires on October 29, 2025, and the company has funded recent repurchases with cash. Despite positive operating cash flow, Procore continues to report operating and net losses, and it may need additional capital for strategic initiatives.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $310.6M | $302.0M | +2.8% | $269.4M | +15.3% |
| Gross profit | $245.7M | $245.2M | +0.2% | $223.7M | +9.8% |
| Gross margin | 79.1% | 81.2% | -2.1 pp | 83.0% | -3.9 pp |
| Research & development | $87.6M | $89.3M | -1.9% | $70.6M | +24.1% |
| Sales & marketing | $138.7M | $161.7M | -14.3% | $121.0M | +14.6% |
| General & administrative | $55.7M | $60.4M | -7.9% | $51.0M | +9.1% |
| Total operating expenses | $282.0M | $311.5M | -9.5% | $242.6M | +16.2% |
| Operating income (loss) | -$36.2M | -$66.2M | +45.3% | -$18.9M | -91.7% |
| Operating margin | -11.7% | -21.9% | +10.3 pp | -7.0% | -4.7 pp |
| Net income (loss) | -$33.0M | -$62.3M | +47.0% | -$11.0M | -200.8% |
| Net margin | -10.6% | -20.6% | +10.0 pp | -4.1% | -6.5 pp |
| Diluted EPS | -$0.22 | -$0.42 | +$0.20 | -$0.08 | -$0.14 |
Risks
Macroeconomic factors and uncertainty have resulted in cautious customer spending and increased customer pricing sensitivity, contributing to the decline in cRPO annual growth rate. The company specifically cites elevated inflationary pressures, tariffs and trade wars, higher interest rates, elevated recession risk, and volatility in capital markets as factors that may impact customers' spending and the company's operating expenses and cash flows.
The company is evolving its GTM operating model, transitioning to a general manager model and adding new product and technical specialists, which involves new investment and increased sales headcount. The company has seen and anticipates continuing to see disruptions and adverse impacts to its financial and operating results in the near-term as it invests in and implements the evolved GTM operating model.
The company sees international expansion as a major opportunity and plans to continue making significant investments in international markets. However, it notes that international operations require considerable management attention and are subject to challenges of supporting a rapidly growing business in an environment of multiple languages, currencies, cultures, customs, and differing legal, tax, regulatory, and alternative dispute systems, and that these investments may adversely affect operating results in the near term.
The company has recently acquired Novorender AS (January 2025) and Intelliwave Technologies Inc. (May 2024) and intends to continue evaluating strategic acquisitions. The company's provision for income taxes increased by $5.0 million in the three months ended March 31, 2025, primarily due to a foreign tax on the transfer of intellectual property from Norway to the U.S. related to Novorender, illustrating the complexity and potential adverse financial impacts of integrating acquisitions.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Non-GAAP Operating Margin
Total Organic Customers
Customers > $100K ARR
Non-GAAP Free Cash Flow
Current Remaining Performance Obligations (cRPO)
Net New Organic Customers Added
Summary, forecast, risks and KPIs are extracted from PROCORE TECHNOLOGIES, INC.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.