Summary
Procore closed the third quarter of fiscal 2025 with revenue of $338.9 million, up 14.5% from $295.9 million a year earlier. Year-to-date revenue reached $973.4 million, up 14.6%. Management attributed about 77% of the quarterly increase to existing customers, with the rest from customers won during the quarter. Gross profit of $270.1 million rose 12.1%, slower than revenue, and gross margin slipped to 79.7% from 81.4%. Non-GAAP gross margin was 84%. The company said cost of revenue climbed on higher personnel costs, cloud hosting, and amortization, and cost of revenue headcount is up 24% since September 30, 2024.
Profitability improved in the quarter even though the company still loses money. Operating loss was $15.0 million, narrower than the $36.5 million loss a year ago. Net loss was $9.1 million, or $0.06 per diluted share, against $26.4 million and $0.18 in the prior-year quarter. Non-GAAP operating margin was 17%. The year-to-date picture is weaker. Operating loss for the nine months widened to $81.5 million from $70.2 million. Net loss widened to $63.2 million from $43.7 million, and diluted loss per share widened to $0.42 from $0.30. Research and development headcount is up 27% since September 30, 2024, while general and administrative headcount is down 5%.
Cash generation was the quarter's clearest bright spot. Operating cash flow was $88.5 million, up 125.3% from $39.3 million. Free cash flow, which the company defines as operating cash flow less purchases of property and equipment and capitalized software development costs, was $67.7 million, up 194% year over year. Operating cash flow for the nine months was $185.3 million, up 10.9%. Capital expenditures were $5.4 million in the quarter and $12.4 million year to date, up 52.0% and 65.1% respectively.
Backlog and customer metrics held. Current deferred revenue was $572.1 million, up 14.0% from a year earlier, and total remaining performance obligations were $1.40 billion, up 27.3%. The gross revenue retention rate was 95% as of September 30, 2025. Customers contributing more than $100,000 of annual recurring revenue totaled 2,602, up 15% year over year. Procore added 122 net new organic customers in the quarter and ended with 17,623 organic customers, up 4% from 16,975 a year earlier.
Guidance for the fourth quarter of 2025 puts revenue at $339 million to $341 million, growth of 12% to 13%, with a non-GAAP operating margin of 14.4%. For the full fiscal year 2025, management expects revenue of $1,312 million to $1,314 million, growth of 14%, and a non-GAAP operating margin of 14%. Ajei Gopal becomes CEO next week, and founder Tooey Courtemanche framed the quarter as a strong handoff. The board authorized a new $300 million repurchase program on November 3, 2025, after the prior program expired on October 29, 2025. The new program runs through November 3, 2026. Procore repurchased 1,903,527 shares at a weighted average price of $67.67 for $128.8 million during the first nine months of 2025.
Several risks hang over the story. Management points to cautious customer spending and pricing sensitivity, which it says contributed to a decline in the annual growth rate of current remaining performance obligations. The go-to-market model that moved to a general manager structure in July 2024 brought disruption and near-term pressure, even as management expects better efficiency over time. Inflation, tariffs, interest rates, and foreign exchange moves are named as swing factors. The company also warns that it may not achieve profitability in the foreseeable future and continues to carry a full valuation allowance on its U.S. deferred tax assets.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $338.9M | $323.9M | +4.6% | $295.9M | +14.5% |
| Gross profit | $270.1M | $256.2M | +5.4% | $240.9M | +12.1% |
| Gross margin | 79.7% | 79.1% | +0.6 pp | 81.4% | -1.7 pp |
| Research & development | $88.0M | $88.9M | -1.0% | $80.8M | +9.0% |
| Sales & marketing | $144.3M | $141.9M | +1.7% | $141.4M | +2.1% |
| General & administrative | $52.8M | $55.7M | -5.2% | $55.3M | -4.5% |
| Total operating expenses | $285.1M | $286.5M | -0.5% | $277.4M | +2.8% |
| Operating income (loss) | -$15.0M | -$30.3M | +50.3% | -$36.5M | +58.8% |
| Operating margin | -4.4% | -9.3% | +4.9 pp | -12.3% | +7.9 pp |
| Net income (loss) | -$9.1M | -$21.1M | +56.8% | -$26.4M | +65.5% |
| Net margin | -2.7% | -6.5% | +3.8 pp | -8.9% | +6.2 pp |
| Diluted EPS | -$0.06 | -$0.14 | +$0.08 | -$0.18 | +$0.12 |
Risks
MD&A states macroeconomic factors such as elevated inflationary pressures, tariff and trade-war uncertainty, higher interest rates, elevated recession risk, and capital markets volatility have caused cautious customer spending and increased pricing sensitivity, contributing to the decline in cRPO annual growth rate. It also notes some customers continue to face macroeconomic and other pressures that have negatively impacted their spending decisions.
The company began evolving its GTM operating model in July 2024, adding a general manager structure and product and technical specialists, and increased sales and marketing headcount by 4% since September 30, 2024. MD&A says it has seen and anticipates continuing to see disruptions and adverse impacts to financial and operating results in the near term, and failure to realize the benefits of the evolved model would adversely affect the business.
MD&A reports continued losses from operations and an accumulated deficit of $1.3 billion as of September 30, 2025. Net loss widened to $63.2 million for the nine months ended September 30, 2025 from $43.7 million for the nine months ended September 30, 2024, and the company says it may not achieve profitability in the foreseeable future and may require additional capital.
Gross margin was 79.7% in the quarter ended September 30, 2025, down from 81.4% in the prior-year quarter, and year-to-date gross margin was 79.3%, down from 82.5%. MD&A attributes cost of revenue increases to personnel, capitalized software amortization, and third-party cloud hosting, and cost of revenue headcount rose 24% since September 30, 2024.
MD&A identifies international expansion as a major opportunity but says it will require considerable management attention and resources and is subject to challenges from multiple languages, currencies, cultures, legal, tax, regulatory, and alternative dispute systems. Non-U.S. revenue was 15% of total revenue for the nine months ended September 30, 2025 and 2024, and international investments may adversely affect operating results in the near term.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Non-GAAP Operating Margin
Total Organic Customers
Free Cash Flow
Net New Organic Customers
Customers > $100K ARR
Current RPO (cRPO)
Total Remaining Performance Obligations
Summary, forecast, risks and KPIs are extracted from PROCORE TECHNOLOGIES, INC.'s SEC filings for Q3 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.