Procore Narrows Q3 Loss Amid Strong Revenue Growth
Ticker: PCOR · Form: 10-Q · Filed: 2025-11-06T00:00:00.000Z
Sentiment: mixed
Topics: Software, Construction Tech, SaaS, Earnings Report, Net Loss, Revenue Growth, Cash Flow, Stock Repurchase
TL;DR
**Procore's Q3 loss narrowed significantly, but watch that cash burn from buybacks – profitability is still a long game.**
AI Summary
Procore Technologies, Inc. (PCOR) reported a net loss of $9.101 million for the three months ended September 30, 2025, a significant improvement from the $26.388 million net loss in the same period of 2024. Revenue increased by 14.5% to $338.851 million for the quarter, up from $295.885 million year-over-year. For the nine months ended September 30, 2025, the net loss widened to $63.179 million from $43.665 million in 2024, despite revenue growing to $973.402 million from $849.660 million. Operating expenses for the quarter increased to $285.119 million from $277.428 million, driven by higher sales and marketing and research and development costs. The company's cash and cash equivalents decreased to $350.496 million at September 30, 2025, from $437.722 million at December 31, 2024, primarily due to $128.815 million in common stock repurchases and $71.173 million in tax withholding for net share settlement during the nine-month period. Strategic outlook includes continued investment in product development, including artificial intelligence, and global expansion, while managing macroeconomic conditions.
Why It Matters
Procore's ability to significantly reduce its quarterly net loss while growing revenue by 14.5% suggests improving operational efficiency, which is crucial for investor confidence in a competitive construction software market. This performance could signal a stronger path to profitability, potentially attracting new institutional investors and stabilizing its stock price against rivals like Autodesk. For employees, continued revenue growth and R&D investment in AI could mean job security and opportunities in innovation. Customers benefit from an expanding platform, but the company's cash burn from stock repurchases warrants attention, as it could impact future investment capacity if not managed carefully.
Risk Assessment
Risk Level: medium — The company reported a net loss of $63.179 million for the nine months ended September 30, 2025, and experienced a net decrease in cash and cash equivalents of $81.522 million during the same period. While the quarterly net loss improved, the overall nine-month loss and substantial cash outflow from financing activities, including $128.815 million in stock repurchases, indicate ongoing financial risks despite revenue growth.
Analyst Insight
Investors should monitor Procore's next few quarters closely for sustained improvements in net loss and positive cash flow from operations, especially given the significant stock repurchases. Consider holding if already invested, but new investors might wait for clearer signs of consistent profitability and reduced cash burn before taking a large position.
Financial Highlights
- revenue
- $338.851M
- total Assets
- $2,058.483M
- net Income
- -$9.101M
- cash Position
- $350.496M
- revenue Growth
- +14.5%
Key Numbers
- $338.851M — Revenue for Q3 2025 (Increased from $295.885M in Q3 2024, a 14.5% growth.)
- $9.101M — Net Loss for Q3 2025 (Improved from a net loss of $26.388M in Q3 2024.)
- $63.179M — Net Loss for Nine Months 2025 (Widened from $43.665M in Nine Months 2024.)
- $350.496M — Cash and Cash Equivalents at Sep 30, 2025 (Decreased from $437.722M at Dec 31, 2024.)
- $128.815M — Repurchases of Common Stock (Cash used in financing activities for the nine months ended Sep 30, 2025.)
- $71.173M — Payment of Tax Withholding for Net Share Settlement (Cash used in financing activities for the nine months ended Sep 30, 2025.)
- 14.5% — Quarterly Revenue Growth (Percentage increase in revenue from Q3 2024 to Q3 2025.)
- $81.522M — Net Decrease in Cash and Cash Equivalents (For the nine months ended September 30, 2025.)
Key Players & Entities
- PROCORE TECHNOLOGIES, INC. (company) — Registrant
- Bloomberg (company) — Publisher
- SEC (regulator) — Filing authority
- $338,851 (dollar_amount) — Q3 2025 Revenue
- $9,101 (dollar_amount) — Q3 2025 Net Loss
- $63,179 (dollar_amount) — Nine Months 2025 Net Loss
- $128,815 (dollar_amount) — Common stock repurchases
- $71,173 (dollar_amount) — Tax withholding for net share settlement
- Autodesk (company) — Competitor
- New York Stock Exchange (regulator) — Exchange where PCOR is listed
FAQ
What were Procore Technologies' key financial results for the third quarter of 2025?
Procore Technologies reported revenue of $338.851 million for the three months ended September 30, 2025, an increase from $295.885 million in the prior year. The net loss for the quarter significantly narrowed to $9.101 million, compared to a net loss of $26.388 million in the same period of 2024.
How did Procore's operating expenses change in the nine months ended September 30, 2025?
For the nine months ended September 30, 2025, Procore's total operating expenses increased to $853.524 million from $771.061 million in the prior year. This was primarily driven by increases in sales and marketing expenses to $424.871 million and research and development expenses to $264.560 million.
What was the impact of stock repurchases on Procore's cash flow?
Procore repurchased $128.815 million of common stock during the nine months ended September 30, 2025. This, along with $71.173 million in tax withholding for net share settlement, contributed to a net cash outflow of $171.770 million from financing activities, leading to an overall net decrease in cash and cash equivalents of $81.522 million.
What is Procore's strategic outlook regarding product development and market expansion?
Procore's forward-looking statements indicate a focus on developing new products, platform capabilities, services, and features, including the successful incorporation of artificial intelligence (AI) into its offerings. The company also aims to expand internationally and effectively manage its growth and investments, including through the evolution of its go-to-market operating model.
What are the main risks Procore Technologies faces according to its 10-Q filing?
Key risks include the ability to achieve or maintain future profitability, effectively manage growth and investments, navigate increased competition, and successfully incorporate AI into products. The company also faces risks related to economic and industry trends, such as inflation and challenging macroeconomic conditions, and the ability to attract and retain customers.
How has Procore's net loss per share changed for the three and nine months ended September 30, 2025?
For the three months ended September 30, 2025, Procore's net loss per share was $(0.06), an improvement from $(0.18) in the same period of 2024. However, for the nine months ended September 30, 2025, the net loss per share widened to $(0.42) from $(0.30) in the prior year.
What is Procore's current cash and marketable securities position?
As of September 30, 2025, Procore had cash and cash equivalents of $350.496 million. Current marketable securities stood at $333.480 million, and non-current marketable securities were $43.966 million, totaling $377.446 million in marketable securities.
What is Procore's approach to artificial intelligence (AI) in its business?
Procore explicitly states its intention to successfully incorporate artificial intelligence ("AI") into its products, services, and platform, and to deploy AI in its business operations. This is highlighted as a forward-looking statement concerning its ability to develop new features and capabilities.
What is the significance of Procore's accumulated deficit?
Procore's accumulated deficit increased to $(1,307,972) thousand as of September 30, 2025, from $(1,244,793) thousand at December 31, 2024. This indicates that the company has incurred cumulative net losses since its inception, reflecting ongoing investments in growth and operations that have not yet resulted in sustained profitability.
How does Procore manage its capital structure, specifically regarding common stock?
As of October 31, 2025, Procore had 155,469,860 shares of common stock outstanding. The company engaged in repurchases of common stock totaling $128.815 million during the nine months ended September 30, 2025, and also issued shares through stock option exercises and its employee stock purchase plan, while withholding shares for net share settlement of equity awards.
Risk Factors
- Reliance on Key Personnel and Talent Acquisition [medium — operational]: The company's success depends on its ability to attract and retain highly skilled personnel, particularly in engineering and sales. Competition for such talent is intense, and any failure to do so could adversely affect product development and revenue growth. For the nine months ended September 30, 2025, operating expenses increased, partly driven by higher sales and marketing and R&D costs, indicating ongoing investment in personnel.
- Intense Competition in Construction Software Market [high — market]: The market for construction software is highly competitive, with numerous established players and emerging companies. Procore faces competition from companies offering specialized solutions and broader enterprise resource planning (ERP) systems. Increased competition could lead to pricing pressures and reduced market share, impacting revenue growth.
- Data Privacy and Security Regulations [high — regulatory]: As a cloud-based software provider, Procore handles sensitive customer data. Evolving data privacy laws (e.g., GDPR, CCPA) and cybersecurity threats pose significant risks. Non-compliance or data breaches could result in substantial fines, reputational damage, and loss of customer trust. The company's operations are subject to various global regulations.
- Sustained Net Losses and Cash Burn [medium — financial]: Procore has historically incurred net losses and continues to do so, with a net loss of $63.179 million for the nine months ended September 30, 2025, compared to $43.665 million in the prior year. While the quarterly loss improved to $9.101 million from $26.388 million, the company's cash and cash equivalents decreased by $81.522 million to $350.496 million as of September 30, 2025. Continued investment in growth, including AI and global expansion, may lead to further cash outflows.
- Dependence on Cloud Infrastructure and Third-Party Providers [medium — operational]: Procore's services are delivered via cloud infrastructure. Any disruptions to these services, whether due to technical failures, cyberattacks, or issues with third-party providers, could lead to service interruptions, impacting customer satisfaction and revenue. The company relies on the stability and security of its underlying cloud platforms.
- Macroeconomic Conditions and Customer Spending [medium — market]: The company's revenue is sensitive to macroeconomic conditions that affect the construction industry, such as interest rates, inflation, and overall economic growth. A slowdown in construction activity or reduced capital spending by customers could negatively impact Procore's sales and revenue. The company acknowledges the need to manage macroeconomic conditions.
- Significant Use of Cash for Share Repurchases and Tax Withholding [low — financial]: During the nine months ended September 30, 2025, Procore used $128.815 million for common stock repurchases and $71.173 million for tax withholding for net share settlement. These significant cash outflows reduce the company's liquidity and could impact its ability to fund operations or strategic initiatives if not managed carefully.
Industry Context
Procore operates in the construction technology sector, a rapidly evolving market driven by the need for digitalization and efficiency in a traditionally fragmented industry. Key trends include the adoption of cloud-based solutions, mobile accessibility, and the integration of artificial intelligence to streamline project management, collaboration, and data analysis. The competitive landscape is characterized by both specialized software providers and larger enterprise solution vendors.
Regulatory Implications
Procore must navigate a complex web of data privacy and security regulations globally, such as GDPR and CCPA, given its handling of sensitive customer data. Compliance failures or data breaches can lead to significant financial penalties and reputational damage. The company's reliance on cloud infrastructure also subjects it to regulations concerning service availability and data integrity.
What Investors Should Do
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Glossary
- Contract cost asset, current
- Costs incurred to obtain or fulfill a contract that are expected to be recovered in the future, recognized as an asset on the balance sheet. (An increase in this asset from $33,922k to $47,793k suggests higher upfront costs related to securing or executing customer contracts.)
- Deferred revenue, current
- Revenue that has been received by the company but not yet earned, typically from subscription services paid in advance. (A decrease from $584,719k to $572,050k in current deferred revenue may indicate a slower pace of new contract bookings or faster revenue recognition compared to the prior period.)
- Accumulated deficit
- The cumulative net losses of a company since its inception, offset by any net income. (The accumulated deficit increased from ($1,244,793k) to ($1,307,972k) for the nine months ended September 30, 2025, reflecting ongoing net losses.)
- Goodwill
- An intangible asset that arises when one company acquires another for a price greater than the fair market value of its identifiable net assets. (An increase in goodwill from $549,651k to $573,933k suggests recent acquisitions or revaluation of acquired businesses.)
- Net share settlement
- A method of settling stock-based compensation awards where the company withholds a portion of the shares to cover the employee's tax obligations. (The company paid $71.173 million in tax withholding for net share settlement, indicating significant stock-based compensation activity.)
Year-Over-Year Comparison
For the three months ended September 30, 2025, Procore Technologies, Inc. demonstrated a positive revenue growth of 14.5% year-over-year, reaching $338.851 million, and significantly reduced its net loss to $9.101 million from $26.388 million in the prior year's quarter. However, for the nine-month period, the net loss widened to $63.179 million from $43.665 million, despite revenue increasing to $973.402 million from $849.660 million. Cash and cash equivalents saw a net decrease of $81.522 million, primarily due to substantial common stock repurchases and tax withholding payments, impacting liquidity compared to the prior period.
Filing Stats: 4,552 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2025-11-06 16:05:14
Key Financial Figures
- $0.0001 — ange on which registered Common stock, $0.0001 par value PCOR The New York Stock Excha
Filing Documents
- pcor-20250930.htm (10-Q) — 1524KB
- pcor-q325x10xqxexx311.htm (EX-31.1) — 10KB
- pcor-q325x10xqxexx312.htm (EX-31.2) — 10KB
- pcor-q325x10xqxexx321.htm (EX-32.1) — 6KB
- pcor-q325x10xqxexx322.htm (EX-32.2) — 6KB
- 0001628280-25-050149.txt ( ) — 8017KB
- pcor-20250930.xsd (EX-101.SCH) — 55KB
- pcor-20250930_cal.xml (EX-101.CAL) — 108KB
- pcor-20250930_def.xml (EX-101.DEF) — 248KB
- pcor-20250930_lab.xml (EX-101.LAB) — 753KB
- pcor-20250930_pre.xml (EX-101.PRE) — 503KB
- pcor-20250930_htm.xml (XML) — 1034KB
Financial Statements (Unaudited)
Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations and Comprehensive Loss 4 Condensed Consolidated Statements of Stockholders' Equity 5 Condensed Consolidated Statements of Cash Flows 7 Notes to Condensed Consolidated Financial Statements 9 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 52 Item 4.
Controls and Procedures
Controls and Procedures 53 PART II. OTHER INFORMATION 54 Item 1.
Legal Proceedings
Legal Proceedings 54 Item 1A.
Risk Factors
Risk Factors 54 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 54 Item 5. Other Information 55 Item 6. Exhibits 56
Signatures
Signatures 58 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this Quarterly Report on Form 10-Q are forward-looking statements regarding our future operating results and financial position, our business strategy and plans, market growth and trends, and our objectives for future operations. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. These forward-looking statements include, but are not limited to, statements concerning the following: our expectations regarding our financial performance, including revenues, expenses, and margins, and our ability to achieve or maintain future profitability; our ability to effectively manage our growth and investments, including through the evolution of our go-to-market ("GTM") operating model; anticipated performance, trends, growth rates, and challenges in our business and in the markets in which we currently or may in the future operate; economic and industry trends, in particular the rate of adoption of construction management software and digitization of the construction industry, inflation, and challenging macroeconomic and geopolitica
– FINANCIAL INFORMATION
Part I – FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements Procore Technologies, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands, except number of shares and par value) September 30, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 350,496 $ 437,722 Marketable securities, current (amortized cost of $ 333,058 and $ 337,253 at September 30, 2025 and December 31, 2024, respectively) 333,480 337,673 Accounts receivable, net of allowance for credit losses of $ 3,528 and $ 6,109 at September 30, 2025 and December 31, 2024, respectively 205,812 246,472 Contract cost asset, current 47,793 33,922 Prepaid expenses and other current assets 67,634 44,090 Total current assets 1,005,215 1,099,879 Marketable securities, non-current (amortized cost of $ 43,966 and $ 46,042 at September 30, 2025 and December 31, 2024, respectively) 43,966 46,042 Capitalized software development costs, net 135,650 112,321 Property and equipment, net 45,715 43,592 Right of use assets - finance leases 20,070 31,727 Right of use assets - operating leases 32,012 28,790 Contract cost asset, non-current 66,214 47,505 Intangible assets, net 114,278 120,946 Goodwill 573,933 549,651 Other assets 21,430 20,918 Total assets $ 2,058,483 $ 2,101,371 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 28,887 $ 33,146 Accrued expenses 110,430 88,740 Deferred revenue, current 572,050 584,719 Other current liabilities 42,608 21,427 Total current liabilities 753,975 728,032 Deferred revenue, non-current 5,500 5,815 Finance lease liabilities, non-current 27,002 41,352 Operating lease liabilities, non-current 36,042 32,697 Other liabilities, non-current 11,941 5,122 Total liabilities 834,460 813,018 Commitments and contingencies (Note 9) Stockholders' equity Preferred stock, $ 0.0001 par value, 100,000,000 shares authorized at September 30, 2025 and December 31, 2024; 0 shares issued and outstanding at September 30, 2025 and December 31, 202