Snapshot
Procore Technologies, Inc. reported $339M of revenue in Q3 2025, up 14.5% year over year, with diluted EPS of $-0.06 and an operating margin of -4.4%.
- Revenue
- $339M
- YoY growth
- +14.5%
- Diluted EPS
- $-0.06
- Operating margin
- -4.4%
What management said
- •Before I begin today's call, I wanted to share that Howard Fu, our CFO, is unexpectedly out of the country attending to a sudden family emergency and will not be joining today's earnings call.
- •Comments made on this call include forward-looking statements regarding, among other things, our financial outlook, go-to-market model, CEO transition, platform and products, customer demand, operations, stock repurchase program, and macroeconomic and geopolitical conditions.
- •Revenue growth was 14.5% year-over-year, which is consistent with last quarter's growth and reflects our underlying business momentum and performance that we've seen this year.
- •We had another strong quarter for large deals, with the number of six and seven-figure deals accelerating to 31% year-over-year growth, and the number of $100,000 plus ARR customers now totals more than 2,600.
- •He has relevant vertical software experience, most recently serving as the CEO at Ansys.
- •Ajay's track record is clearly impressive, but his deep passion for transforming the physical world through digital innovation is what ultimately convinced me that he was the right choice.
- •He recognizes and values the privilege of leading software companies that help its customers build things that are lasting, tangible, and impactful.
- •Since this is my last earnings call at the helm, I want to take a moment and leave you with why I am so optimistic and confident about the future of Procore.
- •With Procore as the clear category leader, I believe that this market is ours for the taking, offering tremendous opportunity for durable long-term growth.
- •Non-residential and multifamily construction has gone from growing 25% year-over-year in Q1 2023 to negative growth of 2% for the last two quarters, as reported by the U.S.
- •We look forward to continuing to build on this partnership in the years ahead." My confidence in Procore's future is further bolstered by our commitment to improving our margin profile.
- •While we have achieved 1,900 basis points of non-GAAP operating margin improvement since the start of 2023, this only scratches the surface of our profitability potential.
What went well
- •Q3 revenue grew 14.5% year-over-year to $339 million, consistent with the prior quarter and a premium of 16.5 percentage points over the negative 2% growth in combined U.S. non-residential and multifamily sectors.
- •Non-GAAP operating margin increased quarter-over-quarter to 17%, with operating income of $59 million.
- •Six- and seven-figure deals accelerated to 31% year-over-year growth, and $100,000+ ARR customers totaled more than 2,600.
- •Procore surpassed $1 trillion in annual construction volume contracted to the platform across all global stakeholders, up from roughly $900 billion a year earlier.
- •Current RPO grew 23% year-over-year, described as the highest growth in seven quarters.
- •The company announced Ajei Gopal as its next CEO and authorized a new $300 million one-year share repurchase program.
What went wrong
- •The construction macro environment remained challenging, with combined U.S. non-residential and multifamily sectors at negative 2% growth and management reporting no change in the headwinds.
- •CFO Howard Fu was unexpectedly absent due to a sudden family emergency, with SVP of Finance Matt Puljiz filling in on a one-time basis.
- •Some one-time benefits in G&A (facility and tax reimbursements) contributed to the quarter's margin improvement.
Guidance changes
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| Revenue | Q4 2025 | None | $339 million-$341 million (12%-13% YoY growth) | new |
| Non-GAAP operating margin | Q4 2025 | None | 14.4% | new |
| Revenue | Full-year 2025 | None | $1.312 billion-$1.314 billion (14% YoY growth) | raised |
| Non-GAAP operating margin | Full-year 2025 | None | 14% (400 bps expansion) | raised |
| Fiscal 2026 revenue | FY2026 | None | Comfortable with Street's FactSet estimate; no formal guide pending new CEO onboarding | no update |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| Total revenue | +14.5% to $339 million | Outperformance from owner and specialty contractor motions, strong mid-market growth, and continued North America execution. |
| Non-GAAP operating margin | 17% (up 380 bps QoQ) | Continued efficiency improvement, including some one-time G&A benefits from facility and tax reimbursements. |
| International revenue | +14% (+15% constant currency) | Approximately one point of FX headwind. |
| Current RPO | +23% | Strong quarter plus a further increase in average contract duration. |
| Six- and seven-figure deals | +31% | Strong large-deal quarter and go-to-market model benefits. |
Earnings call themes & trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| CEO transition | Tooey Courtemanche as CEO | Ajei Gopal announced as next CEO, stepping in November 10th; Tooey moving to Chair of the Board after nearly 25 years | transition |
| Construction macro environment | Challenging / down cycle | No notable change; steady headwind expected to eventually turn into a tailwind | stable but challenged |
| Go-to-market operating model | Transition underway | Yielding benefits — higher pipeline conversion, improved expansion rates, lower voluntary sales attrition, stronger customer intimacy | improving |
| cRPO vs revenue convergence | Benefiting from longer contract duration | Duration increased further in Q3; disparity expected to shrink as early as Q4 as the longer-duration impact anniversaries | normalizing |
| AI / agentic roadmap | Early data and AI positioning | Agentic roadmap announced at Groundbreak leveraging proprietary construction data; customers interacted with agents on the expo floor | building |
Q&A summary
Is the owners segment still the place to look for a turning point in end-market demand, and what are you seeing there?
CEO Tooey Courtemanche said the macro is pretty much the same as recent quarters with no big change in headwinds. Owners are where projects begin, so it is a good place to look, but he cautioned the eventual turn will take time to flow through permitting and construction volume before hitting Procore revenue.
What did you mean that net new ARR growth came in notably faster than revenue growth — does it portend revenue acceleration?
Matt Puljiz reiterated it was another strong quarter on pace for a strong year, with all prior base-case growth commentary reaffirmed; Q3 increased confidence. They are operating well within the base case with high optimism.
Has your thinking on the data center opportunity evolved given the flurry of announcements?
Courtemanche said data centers, while exciting, do not make up a large portion of the overall construction economy, but Procore has done very well there and is everywhere in the space. It is one sector doing particularly well while others like multifamily struggle.
How did renewals trend, and are you seeing more stable or growing ACV commitments?
Puljiz said the reported cRPO reflected the quarter's strength (including healthy renewals) plus the contract duration ticking up; underlying business health is stable to positive and trending in the right direction. Courtemanche highlighted reaching $1 trillion of committed annual construction volume, up from ~$900 billion a year prior.
On NRR trends and which products are driving improvement?
Puljiz said NRR is disclosed each Q4; qualitatively churn is stable and expansion is improving (tailwinds), while longer contract duration and pooled models carrying 100% NRR through the term are a headwind, so NRR may look similar to last Q4. He singled out financials and Resource Management as drivers; Courtemanche added analytics.
Can Procore remain committed to margin expansion while giving the new CEO room to improve growth?
Puljiz said yes — the range and exact quantification will be determined, and their job is to give Ajei as many options and paths as possible. They are guiding to 400 bps of non-GAAP operating expansion this year and view that as a doable, likely slightly higher number next year.