Procore Technologies (NYSE:PCOR) closed fiscal 2025 with fourth-quarter results that exceeded the high end of management’s guidance, supported by what executives described as broad-based go-to-market execution, improving renewals, and continued momentum with larger customers. The company also outlined a fiscal 2026 outlook calling for continued revenue growth alongside further non-GAAP operating margin expansion and a higher free cash flow margin.
Leadership transition and Q4 business highlights
President and CEO Ajei Gopal, speaking on his first earnings call in the role, said his early customer and employee meetings reinforced his conviction that Procore is building “one of the most mission-critical vertical software platforms” for construction. Gopal emphasized Procore’s role as a “system of record for the built world” and argued the company is positioned to benefit from AI-driven productivity gains across the construction lifecycle.
In the U.S. general contractor (GC) segment, Gopal highlighted activity with large contractors, noting Procore added three new ENR 400 logos in the quarter and expanded run rate with more than 70 ENR 400 customers. He cited one ENR 400 addition as the company’s largest new logo win of the quarter, describing it as a displacement of an incumbent vendor that also adopted Procore Pay and Procore Resource Management.
Outside the ENR 400 cohort, Gopal said Procore signed more than 30 agreements with more than $100,000 in annual recurring revenue (ARR) in Q4. He also described a win-back of an enterprise GC in Georgia that returned after leaving in 2024 for a cheaper solution, then expanded in Q4 with enterprise-wide adoption and added Pay and Resource Management.
Owners segment growth and government milestone
Beyond contractors, management pointed to opportunities with owners and subcontractors, with Gopal focusing on owners as a diverse segment spanning multiple industries. He said the owners business posted another quarter of consistent growth and that Procore plans to launch a suite of specialized products later in 2026, including portfolio management, planning, funding, and asset management.
Gopal also reported that Procore for Government achieved FedRAMP Moderate authorization during the quarter and is now available in the FedRAMP Marketplace, which he said should unlock additional opportunities with U.S. federal and state government customers.
On end-market exposure, Gopal pointed to data center construction as an area of growing demand driven by AI infrastructure investment. He said data centers represent about 2% of total U.S. construction activity today but described the growth trajectory as compelling. He cited the company’s largest international Q4 deal—at seven figures annually—with a U.K. data center hyperscaler that selected Procore to create a single source of truth across global projects and expanded construction volume within weeks.
AI strategy, Datagrid acquisition, and adoption metrics
Gopal positioned AI as a major technology catalyst for the company and described a shift toward “Agentic AI,” which he said can take actions rather than only provide insights. He said Procore’s tuck-in acquisition of Datagrid is intended to accelerate its AI strategy and that the combination of Procore Helix and Datagrid will be branded “Procore AI.”
In a customer example shared on the call, Gopal described an AI agent analyzing a job site video to identify an issue with a structural column, retrieve relevant drawings and specifications, determine required rework, automatically create a work order, notify stakeholders, and trigger downstream workflows to halt work and schedule rework—tasks he said historically required several hours of manual effort.
During the Q&A, Gopal said Procore is seeing customer adoption of its AI capabilities, citing approximately 66,000 unique active users using Procore AI and nearly 700 customers that have created thousands of agents, which he said skew upmarket. On monetization, he said the company’s first priority is demonstrating ROI, and that Procore expects to include AI offerings in upcoming bundles as part of new packaging, while also considering component- or consumption-based elements. He added the company expects to experiment and evolve its approach.
Financial results: revenue growth, margin expansion, and free cash flow
CFO Howard Fu reported Q4 total revenue of $349 million, up 15.6% year-over-year. International revenue grew 14% year-over-year, and Fu said results were impacted by currency headwinds; on a constant currency basis, international revenue grew 15% year-over-year.
Non-GAAP operating income in Q4 was $52 million, representing a 15% non-GAAP operating margin. Fu also cited backlog-related metrics, noting current remaining performance obligations (RPO) grew 22% year-over-year and current deferred revenue grew 18% year-over-year.
Fu attributed Q4 strength to “robust execution” across multiple areas, including broad-based momentum upmarket, higher pipeline conversion, and improving renewal and churn rates, which he largely credited to the company’s go-to-market operating model. He said the number of six- and seven-figure deals increased 20% year-over-year, and that Procore ended fiscal 2025 with:
- More than 2,700 customers with more than $100,000 in ARR
- 115 customers spending more than $1 million in ARR, up 34% year-over-year
- Nearly 450 Procore Pay customers, up more than 70% year-over-year
Fu also said Procore will stop disclosing total customer count after this earnings report, arguing SMB customer dynamics make that metric less reflective of underlying business performance. The company plans to continue disclosing the number of $100,000+ ARR customers quarterly.
On cash generation, Fu highlighted free cash flow per share as the company’s “north star metric.” He said Procore generated $90 million of free cash flow in Q4—its strongest quarter in history—and $215 million for the full year, up 69% year-over-year, representing a 16% free cash flow margin. Fu added that weighted average diluted share count grew less than 1% in Q4 and said stock-based compensation (SBC) increased to 23% of revenue due to a one-time charge of unvested equity related to the transition of the former CEO. Excluding that charge, he said SBC would have been 16.6% of revenue, in line with Q3.
Fiscal 2026 outlook and key modeling considerations
For Q1 fiscal 2026, Fu guided revenue to $351 million to $353 million (13% to 14% year-over-year growth) and non-GAAP operating margin of 14% to 15%. For the full year fiscal 2026, Procore guided revenue of $1.489 billion to $1.494 billion (13% growth) and non-GAAP operating margin of 17.5% to 18%, implying 340 to 390 basis points of margin expansion year-over-year.
Fu said Procore will now formally guide annual free cash flow margin, expecting 19% in fiscal 2026, which implies 270 basis points of expansion.
In discussion of RPO trends, Fu said Q4 current RPO growth reflected both a strong Q4 bookings quarter and an uptick in contract duration. He added that when normalized for duration, current RPO growth is consistent with Q4 revenue growth and ending ARR growth, and that if contract duration stabilizes, reported and normalized growth should converge with revenue growth later in fiscal 2026.
On resourcing, Fu said the company has sufficient go-to-market capacity for fiscal 2026, characterizing fiscal 2025 as an investment year and saying the focus now is on productivity improvements. He added that incremental headcount additions are expected to be largely on the R&D side, primarily in lower-cost geographies.
About Procore Technologies (NYSE:PCOR)
Procore Technologies, Inc engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company’s platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office.
