Snapshot
Procore Technologies, Inc. reported $349M of revenue in Q4 2025, up 15.6% year over year, with diluted EPS of $-0.25 and an operating margin of -12.3%.
- Revenue
- $349M
- YoY growth
- +15.6%
- Diluted EPS
- $-0.25
- Operating margin
- -12.3%
What management said
- •Comments made on this call include forward-looking statements regarding, among other things, our financial outlook, platform and products, customer demand, operations, and macroeconomic and geopolitical conditions.
- •As this is my first earnings call as CEO, I want to start by expressing my strong conviction in Procore's future.
- •These initial months have reinforced my belief that Procore possesses the hallmarks of a best-in-class vertical software leader and is building one of the most mission-critical vertical software platforms.
- •As a crucial system of record for the built world, our ability to drive collaboration across all construction stakeholders creates a powerful network effect.
- •Building on four consecutive quarters of strong business momentum, we ended the year with an exceptional Q4 that exceeded the high end of our guidance.
- •For the full year, we delivered 15% revenue growth and 14% non-GAAP operating margin, which represents year-over-year expansion of 400 basis points.
- •From new logos to volume expansion and product cross-sell, I believe this cohort of our business remains a cornerstone of our growth.
- •They partnered with Procore because of our unified enterprise-grade platform and their strong internal demand for our products.
- •They also adopted Procore Pay to automate their manual processes and Procore Resource Management for their growing fleet of capital assets for their self-performed work.
- •We have a track record of displacing incumbent vendors, and we believe this is yet another example of the construction industry realizing that Procore is the gold standard.
- •With Procore, they expect to enhance efficiency, support growth, and anticipate savings of more than 27,000 labor hours per year, the equivalent of adding roughly 13 full-time employees.
- •We see these products as notable expansion opportunities for our global GC customers to drive incremental growth.
What went well
- •Q4 revenue was $349 million, up 15.6% year-over-year, exceeding the high end of guidance.
- •Full-year 2025 delivered 15% revenue growth and a 14% non-GAAP operating margin, representing 400 basis points of year-over-year expansion.
- •The company generated its strongest free cash flow quarter in history at $90 million, bringing full-year free cash flow to $215 million, up 69% year-over-year at a 16% free cash flow margin.
- •Six- and seven-figure deals grew 20% year-over-year, the count of $100,000+ ARR customers surpassed 2,700, and customers spending more than $1 million in ARR reached 115, up 34% year-over-year.
- •Procore Pay ended the year with nearly 450 customers, representing more than 70% year-over-year growth.
- •Current RPO grew 22% year-over-year and Procore for Government achieved FedRAMP Moderate authorization.
What went wrong
- •The company continued to face headwinds from a challenging construction environment, with the U.S. Census reporting negative growth for combined non-residential and multifamily sectors.
- •Q4 SBC increased to 23% of revenue, driven by a one-time charge of unvested equity related to the former CEO's transition (excluding it, SBC would have been 16.6%).
- •Management said international results were not as far along on the top line as desired, facing the same macroeconomic challenges.
Guidance changes
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| Revenue | Q1 2026 | None | $351 million-$353 million (13%-14% YoY growth) | new |
| Non-GAAP operating margin | Q1 2026 | None | 14%-15% | new |
| Revenue | Full-year 2026 | None | $1.489 billion-$1.494 billion (13% YoY growth) | new |
| Non-GAAP operating margin | Full-year 2026 | None | 17.5%-18% (340-390 bps expansion) | new |
| Free cash flow margin | Full-year 2026 | None | 19% (270 bps expansion) | new (first formal FCF margin guide) |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| Total revenue | +15.6% to $349 million | Robust execution across multiple areas, broad-based momentum upmarket, higher pipeline conversion, and improving renewal and churn rates attributed to the go-to-market operating model. |
| International revenue | +14% (+15% constant currency) | Impacted by currency headwinds; still facing macroeconomic challenges. |
| Free cash flow | +69% to $215 million full year | Strong bookings translating into higher billings and collections, plus continued margin expansion. |
| Current RPO | +22% | Very strong Q4 bookings (largest bookings quarter ever) plus an uptick in average contract duration. |
| $1 million+ ARR customers | +34% to 115 | Ability to scale to the largest customers around the world. |
Earnings call themes & trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Procore AI / Datagrid acquisition | AI strategy unveiled at Groundbreak | Tuck-in acquisition of Datagrid combined with Helix to form Procore AI; demonstrated construction-aware multimodal reasoning; ~66,000 unique active users and nearly 700 customers creating thousands of agents | accelerating |
| Construction macro environment | Challenging / down cycle | Still a challenging environment with negative non-residential and multifamily growth per U.S. Census | stable but challenged |
| cRPO vs revenue convergence | Benefiting from longer contract duration | Saw another uptick in contract duration in Q4; normalized cRPO consistent with revenue and ARR growth; convergence likely toward the latter part of fiscal 2026 if duration stabilizes | normalizing |
| Upmarket / enterprise momentum | Growing focus on larger customers | Six- and seven-figure deals up 20%; 115 customers over $1M ARR; final quarter disclosing total customer count, shifting to $100,000+ ARR customer count | strengthening |
| AI monetization | Not yet monetized | Plan to include AI offerings in upcoming bundles plus consumption-based components; first establishing compelling ROI; expect to experiment and evolve | emerging |
Q&A summary
What have customer conversations on AI been like, and do you see customers trying to build Procore-like tools themselves?
CEO Ajei Gopal said the script's example showed how different the construction use case is from horizontal applications; customers lack the time or inclination to become AI experts and want their tech vendor to bring the best technology. Procore has ~66,000 unique active AI users and nearly 700 customers with thousands of agents, and its structural advantages as the system of record and collaboration position it as an AI winner.
What's the glide path for cRPO as the duration benefit normalizes in 2026?
CFO Howard Fu said Q4 cRPO growth includes a very strong Q4 bookings quarter (five quarters of strong execution) plus another uptick in contract duration. Normalized cRPO growth is in line with Q4 revenue and ending ARR growth; if duration stays stable through fiscal 2026, cRPO growth will normalize with revenue growth toward the latter part of the year.
What is the specific monetization strategy for Procore AI — a new SKU, price uplift, or consumption model?
Gopal said the first step is establishing compelling ROI, which customers are already seeing via labor savings. Procore is likely to include AI offerings within upcoming bundles plus consumption-based components, will experiment given it is new to the market, and sees significant incremental upside even monetizing a small fraction of customer labor cost savings.
Is the business sufficiently resourced from a go-to-market perspective for the ~400 bps of margin expansion, especially if the cycle turns?
Fu said yes — fiscal 25 was an investment year and they enter fiscal 26 with largely the go-to-market capacity needed, focusing on productivity. Added resources are largely on the R&D side in lower-cost geos, with continued leverage across OpEx lines and AI as an additional tailwind to scale.
What did you see in volume commitment trends during the Q4 renewal cycle?
Fu declined to give a specific number but noted ACV commitments on the platform crossed $1 trillion last quarter and continued to grow in Q4, evidence the company continues to gain share.
Was the biggest-ever bookings quarter driven by deals pulled forward, and did normalized cRPO uptick versus the prior quarter?
Fu confirmed Q4 was the biggest bookings quarter ever, not from any one or two deals but broad-based across large and commercial segments, building on four quarters of strong execution. Normalized cRPO remains consistent with Q4 revenue and ending ARR growth.