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Sep 30
Procore Q3 2025 Earnings Report
Procore Technologies, Inc. announced strong financial results for the third quarter ended September 30, 2025, marked by consistent revenue growth and improved operating leverage.
Key Takeaways
Procore delivered a strong third quarter in 2025, with revenue reaching $339 million, a 15% increase year-over-year. The company also significantly improved its free cash flow, which surged by 194% year-over-year to $68 million. Non-GAAP operating margin improved to 17%, demonstrating efficient growth and strong per share improvements.
Revenue for Q3 2025 was $339 million, marking a 15% increase year-over-year.
Free cash flow for the third quarter was $68 million, a substantial 194% increase compared to the previous year.
Non-GAAP operating margin improved to 17% in Q3 2025, up from 9% in Q3 2024.
The company achieved a gross revenue retention rate of 95% and increased customers with over $100k ARR by 15% year-over-year.
Procore
Procore
Forward Guidance
Procore provided guidance for the fourth quarter and full year 2025, expecting continued revenue growth and strong non-GAAP operating margins.
Positive Outlook
- Fourth quarter 2025 revenue is projected to be between $339 million and $341 million, indicating 12% to 13% year-over-year growth.
- Full year 2025 revenue is expected to be in the range of $1,312 million to $1,314 million, representing 14% year-over-year growth.
- Non-GAAP operating margin for Q4 2025 is anticipated to be 14.4%.
- Non-GAAP operating margin for the full year 2025 is expected to be 14%.
- The Board of Directors authorized a new stock repurchase program of up to $300 million, demonstrating confidence in future performance and commitment to shareholder value.
Challenges Ahead
- A reconciliation of non-GAAP guidance to GAAP measures is not available on a forward-looking basis without unreasonable effort, due to the uncertainty of future expenses.
- The stock repurchase program does not obligate Procore to acquire any particular amount of common stock and may be suspended or discontinued at any time.
- The forward-looking statements are subject to substantial risks and uncertainties that could cause actual results to differ materially from current expectations.
- Economic and industry trends, such as inflation, interest rates, and geopolitical conditions, could impact future performance.
- The ability to attract new customers and retain existing ones, as well as expand internationally, remains a factor influencing future growth.