Summary
Procore reported revenue of $323.9 million for the second quarter of fiscal 2025, up 13.9% from $284.3 million in the prior-year quarter. Revenue for the first six months of the fiscal year reached $634.6 million, up 14.6%. Management said existing customers drove about 82% of the quarterly increase, with new customers accounting for roughly 18%. Gross revenue retention was 95% as of June 30, 2025, compared with 94% a year earlier. Customers contributing more than $100,000 of annual recurring revenue totaled 2,517, up 15% year over year, and the company added 195 net new organic customers to end the quarter with 17,501, up 4%.
Margins and the bottom line moved the other way. Gross profit of $256.2 million rose 8.4%, yet gross margin fell to 79.1% from 83.1%. Amortization of capitalized software development costs, third-party cloud hosting and personnel costs all climbed, and cost of revenue headcount was up 22% since June 30, 2024. Operating loss widened to $30.3 million from $14.8 million, and operating margin fell to -9.3% from -5.2%. Net loss widened to $21.1 million from $6.3 million. Diluted EPS came in at -$0.14, compared with -$0.04. Research and development headcount rose 49% since June 30, 2024, sales and marketing headcount rose 7%, and general and administrative headcount fell 2%. The spending is aimed at the go-to-market rebuild and platform development, but it is landing ahead of the revenue it supports.
The non-GAAP picture shows the same squeeze. Non-GAAP operating margin was 13%, compared with 18% a year earlier, non-GAAP net income was $52.9 million, compared with $58.5 million, and non-GAAP diluted net income per share was $0.35, compared with $0.39. Operating cash flow for the quarter was $30.8 million, down 47.5% from $58.7 million. Operating cash flow for the six months was $96.9 million, down 24.2%. Free cash flow, a non-GAAP measure that also subtracts property purchases and capitalized software development costs, was $10.6 million for the quarter, compared with $46.6 million a year earlier. Capital expenditures were $2.98 million, up 58.8%.
Backlog held up better than the income statement. Current remaining performance obligations were $879.5 million as of June 30, 2025, up 21% year over year, and total remaining performance obligations were $1.30 billion, up 30.0%. Deferred revenue, current portion, was $560.6 million, up 13.3%. Management attributed 36% of the cRPO increase to existing customers and 64% to new customers. The company announced acquisitions of Novorender and Flypaper Technologies to deepen its building information modeling work, and it received FedRAMP In Process Designation and now appears on the FedRAMP marketplace.
Guidance for the third quarter of fiscal 2025 points to year-over-year growth of 10% to 11%, with non-GAAP operating margin of 13% to 13.5%. For the full fiscal year 2025, growth is guided to 13%, with non-GAAP operating margin also at 13% to 13.5%. The company keeps pointing to inflation, tariffs, higher interest rates and geopolitical conditions. It said cautious customer spending and pricing sensitivity contributed to a decline in the cRPO annual growth rate. The general manager model brings new investment and near-term disruption. Procore also carries an accumulated deficit of $1.3 billion and said it may not achieve profitability in the foreseeable future.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $323.9M | $310.6M | +4.3% | $284.3M | +13.9% |
| Gross profit | $256.2M | $245.7M | +4.3% | $236.2M | +8.4% |
| Gross margin | 79.1% | 79.1% | -0.0 pp | 83.1% | -4.0 pp |
| Research & development | $88.9M | $87.6M | +1.5% | $72.3M | +22.9% |
| Sales & marketing | $141.9M | $138.7M | +2.3% | $127.9M | +10.9% |
| General & administrative | $55.7M | $55.7M | -0.0% | $50.8M | +9.6% |
| Total operating expenses | $286.5M | $282.0M | +1.6% | $251.0M | +14.1% |
| Operating income (loss) | -$30.3M | -$36.2M | +16.5% | -$14.8M | -104.8% |
| Operating margin | -9.3% | -11.7% | +2.3 pp | -5.2% | -4.1 pp |
| Net income (loss) | -$21.1M | -$33.0M | +36.1% | -$6.3M | -234.2% |
| Net margin | -6.5% | -10.6% | +4.1 pp | -2.2% | -4.3 pp |
| Diluted EPS | -$0.14 | -$0.22 | +$0.08 | -$0.04 | -$0.10 |
Risks
The filing adds an expanded AI risk factor: failure to incorporate AI or comply with evolving AI laws could materially harm results. It cites EU AI Act fines of up to 35 million euros or 7% of worldwide annual turnover, plus risks of flawed or hallucinated outputs, third-party data leaks, and higher operating costs to develop and deploy resource-intensive AI.
MD&A says the evolved GTM operating model, including the general manager structure and new product and technical specialists, requires new investment and is expected to cause continuing disruptions and adverse near-term financial impacts. It reports sales and marketing headcount up 7% since June 30, 2024, cost of revenue headcount up 22%, and research and development headcount up 49%, driving operating expense growth.
Gross margin in FY2025 Q2 was 79.1%, down 4.0 pp from FY2024 Q2, while operating loss widened to $30.3 million from $14.8 million and net loss widened to $21.1 million from $6.3 million. MD&A notes accumulated deficit of $1.3 billion as of June 30, 2025 and that the company may not achieve profitability in the foreseeable future and may require additional capital. Operating cash flow for FY2025 year to date was $96.9 million, down 24.2% from prior-year year to date.
MD&A highlights macroeconomic and geopolitical factors, including tariffs and trade wars, higher interest rates, inflation, recession risk, and capital-market volatility, that have caused cautious customer spending and increased pricing sensitivity. It states these factors contributed to the decline in the cRPO annual growth rate, though cRPO still increased by $154.7 million, or 21%, as of June 30, 2025.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Non-GAAP Operating Margin
Total Organic Customers
Net New Organic Customers
Customers > $100K ARR
Non-GAAP Free Cash Flow
Current RPO (cRPO)
Total Remaining Performance Obligations
Summary, forecast, risks and KPIs are extracted from PROCORE TECHNOLOGIES, INC.'s SEC filings for Q2 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.