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Jun 30, 2025
Procore Q2 2025 Earnings Report
Procore reported solid second quarter 2025 financial results, with revenue increasing by 14% year-over-year and strong non-GAAP gross and operating margins.
Key Takeaways
Procore Technologies, a leading global provider of construction management software, announced strong financial results for the second quarter of 2025. The company reported a 14% year-over-year increase in revenue, reaching $324 million, alongside healthy GAAP and non-GAAP gross and operating margins. Procore also demonstrated positive operating and free cash flow, indicating efficient growth and a commitment to profitability improvement.
Revenue for Q2 2025 reached $324 million, marking a 14% increase compared to the previous year.
The company achieved a non-GAAP gross margin of 83% and a non-GAAP operating margin of 13% in the second quarter.
Procore generated $31 million in operating cash inflow and $11 million in free cash inflow during Q2 2025.
Key business highlights include a 95% gross revenue retention rate and an increase in high-value customers, totaling 2,517 with annual recurring revenue over $100,000.
Forward Guidance
Procore provided optimistic guidance for Q3 and the full year 2025, projecting continued revenue growth and stable non-GAAP operating margins.
Positive Outlook
- Q3 2025 revenue is expected to be between $326 million and $328 million, indicating 10% to 11% year-over-year growth.
- Full year 2025 revenue is projected to be in the range of $1,299 million to $1,302 million, representing 13% year-over-year growth.
- Non-GAAP operating margin for Q3 2025 is expected to be strong, ranging from 13% to 13.5%.
- Non-GAAP operating margin for the full year 2025 is also anticipated to be between 13% and 13.5%, showing consistent profitability.
- The company remains committed to profitability improvement and sees opportunities for continued margin expansion.
Challenges Ahead
- A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort.
- Uncertainty of future expenses could materially impact Procore’s future GAAP financial results.
Historical Earnings Impact
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