Summary
Procore closed fiscal 2025 with fourth-quarter revenue of $349.11 million, up 15.6% year over year, and full-year revenue of $1.32 billion, up 14.8%. Management traced roughly 49% of the full-year increase to existing customers and 51% to customers acquired during 2025. The company also picked up Datagrid, an agentic AI provider for construction, in January 2026, extending a string of smaller deals that began with Unearth and Intelliwave.
Margins moved in opposite directions. Gross profit was $279.70 million for the quarter, up 14.1%, while gross margin slipped to 80.1%, down 1.1 percentage points from the prior-year quarter. The full-year gross margin landed at 79.5%. Cost of revenue increased 32% for the full year, driven by personnel costs, amortization of capitalized software development costs, third-party cloud hosting, and amortization of developed technology intangibles. Cost of revenue headcount is up 21% since December 31, 2024, a direct result of moving people into support and implementation roles under the evolved go-to-market model.
The bottom line still shows red ink, just less of it. The GAAP operating loss for the quarter narrowed to $42.80 million, and operating margin improved by 9.7 percentage points to -12.3%. Net loss narrowed to $37.60 million. For the full year, net loss was $100.78 million, and diluted loss per share was $0.67, an improvement of $0.05. Stock-based compensation ran at 23% of revenue in the quarter, including a one-time accounting charge tied to the transition of the former chief executive; excluding that charge, SBC was 17% of revenue.
Cash was the standout. Operating cash flow for the quarter was $114.94 million, up 295.6%, and $300.27 million for the full year, up 53.1%. Capital expenditures fell 51.0% to $5.70 million in the quarter. Free cash flow, a non-GAAP measure, was $90 million in the quarter and $215 million for the year, an increase of 69%, which the CFO described as the largest free cash flow quarter in the company's history. Current deferred revenue stood at $687.06 million, up 17.5%, and total remaining performance obligations reached $1.60 billion, up 23.1%. The current portion of RPO rose 22%, and about 59% of the annual increase came from new customers acquired during the year.
Customer metrics held up. Organic customers spending more than $100,000 of annual recurring revenue totaled 2,710, an increase of 16%, and the count above $1 million of ARR reached 115, up 34%. Procore added 227 net new organic customers in the quarter, finishing with 17,850. Gross revenue retention was 95% for 2025 and net revenue retention was 106%. Management said 78% of total ARR came from customers using four or more products and 52% from those using six or more. Headcount ended the year at 4,421 full-time employees, up 5%. Total customer count will no longer be disclosed starting in 2026 because small business accounts represent a small slice of ARR.
Guidance for the first quarter calls for revenue growth of 13% to 14% and a non-GAAP operating margin in the range of 14% to 15%. For the full fiscal year 2026, the company guides to revenue growth of 13%, a non-GAAP operating margin of 17.5% to 18%, and a free cash flow margin of 19%. No GAAP reconciliation was offered for those forward-looking non-GAAP figures.
Several risks sit beneath the surface. Procore carried an accumulated deficit of $1.3 billion as of December 31, 2025 and said it may not reach profitability in the foreseeable future. The evolved go-to-market model has already caused near-term disruption and could keep doing so, while tariffs, interest rates, and construction cyclicality remain live threats. Pooled volume contracts, where fixed annual fees produce 100% retention, also blunt net revenue retention as a health signal. On capital allocation, the board authorized a $300.0 million repurchase program in November 2025. Between December 31, 2025 and February 24, 2026, the company repurchased 1,765,560 shares for $100.0 million at a weighted average price of $56.66.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $349.1M | $338.9M | +3.0% | $302.0M | +15.6% |
| Gross profit | $279.7M | $270.1M | +3.6% | $245.2M | +14.1% |
| Gross margin | 80.1% | 79.7% | +0.4 pp | 81.2% | -1.1 pp |
| Research & development | $97.8M | $88.0M | +11.1% | $89.3M | +9.5% |
| Sales & marketing | $155.8M | $144.3M | +8.0% | $161.7M | -3.7% |
| General & administrative | $68.9M | $52.8M | +30.5% | $60.4M | +14.0% |
| Total operating expenses | $322.5M | $285.1M | +13.1% | $311.5M | +3.5% |
| Operating income (loss) | -$42.8M | -$15.0M | -184.8% | -$66.2M | +35.4% |
| Operating margin | -12.3% | -4.4% | -7.8 pp | -21.9% | +9.7 pp |
| Net income (loss) | -$37.6M | -$9.1M | -313.2% | -$62.3M | +39.6% |
| Net margin | -10.8% | -2.7% | -8.1 pp | -20.6% | +9.9 pp |
| Diluted EPS | -$0.25 | -$0.06 | -$0.19 | -$0.42 | +$0.17 |
| Customers | 2,026 | — | — | — | — |
| Net retention rate | 106.0% | — | — | 106.0% | ±0.0 pp |
Risks
Construction industry sentiment remains uncertain and could pressure future growth. Procore prices products on annual construction volume, so reduced construction volume, inflation, tariffs, interest rates, or lower government infrastructure spending could reduce customer spend.
The company is investing in AI features and acquired Datagrid in Jan 2026, but competitors may incorporate AI more quickly or general-purpose AI solutions may address construction needs. Failure to bring AI offerings to market effectively could harm competitive position and require significant operating costs.
The evolved GTM operating model, including the general manager model started in July 2024, has caused and may continue to cause near-term disruptions and adverse impacts to financial and operating results. Longer sales cycles for large enterprises, owners, and government entities add unpredictability and higher upfront sales costs.
Effective Nov 10 2025, founder and former CEO Craig Courtemanche resigned and Dr. Ajei Gopal became CEO. Risk factors state that leadership changes may create uncertainty or shifts in priorities and make it harder to preserve culture and retain key personnel.
AI laws are evolving, including the EU AI Act, which imposes compliance obligations and potential fines up to 35 million euros or 7% of total worldwide annual revenue. The company may need to adapt products, contracts, and business practices to comply.
Procore processes sensitive customer data, including building plans and data for regulated industries, across approximately 160 countries. EU GDPR and UK GDPR expose it to parallel regimes with fines up to 20 million euros or 4% of annual revenue and cross-border transfer restrictions.
The construction management software market is highly competitive and rapidly changing, with competitors that may offer lower-priced or free products or bundle broader offerings. Competitive pressure could force price cuts, discounts, or increased marketing spend.
Selling to government entities and customers reliant on government funding brings unique risks, including government shutdowns, changes in administrations, spending reductions, audits, and Executive Orders issued starting Jan 2025. FedRAMP Moderate authorization for Procore for Government in Jan 2026 may not offset compliance costs.
Non-U.S. revenue was 15% of total revenue for both FY2025 and FY2024, and customers ran projects in approximately 160 countries as of Dec 31 2025. International expansion increases compliance, currency, intellectual property, and geopolitical risks and requires significant management attention.
Procore reported net losses of $100.8 million in 2025, $106.0 million in 2024, and $189.7 million in 2023, and had an accumulated deficit of $1.3 billion as of Dec 31 2025. It may not achieve or sustain profitability while continuing to invest in growth.
On Nov 3 2025 the board authorized a new $300.0 million stock repurchase program, after the prior $300.0 million program expired Oct 29 2025. There is no guarantee repurchases will enhance stockholder value or avoid increased stock volatility and reduced cash for working capital.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Non-GAAP Operating Margin
Free Cash Flow
Customers > $100K ARR
Gross Revenue Retention
Total Remaining Performance Obligations
Current Remaining Performance Obligations (cRPO)
Customers > $1M ARR
Total Customers
Summary, forecast, risks and KPIs are extracted from PROCORE TECHNOLOGIES, INC.'s SEC filings for Q4 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.