Procore Technologies, Inc., the leading global provider of construction management software, announced financial results for the second quarter ended June 30, 2026.
"Our outstanding Q2 results demonstrate the continued value our platform provides to the construction industry," said Ajei Gopal, President and CEO of Procore. “Customers are embracing our solutions, giving us more confidence in our direction, our ability to execute, and our future success. Procore offers users a system of collaboration that creates a powerful network effect across the industry, helping our customers achieve their business needs.”
"We had strong Q2 performance, including achieving GAAP operating profitability," said Rachel Pyles, CFO of Procore. “This achievement, alongside our 16% revenue growth and free cash flow generation, underscores our commitment to driving durable, profitable growth in FY26 and the long term.”
Second Quarter 2026 Financial Highlights:
- Revenue was $375 million, an increase of 16% year-over-year.
- GAAP gross margin was 80% and non-GAAP gross margin was 84%.
- GAAP operating margin was 1% and non-GAAP operating margin was 21%.
- Operating cash inflow for the second quarter was $88 million, an increase of 185% year-over-year.
- Free cash inflow for the second quarter was $65 million, an increase of 507% year-over-year.
- Basic WASO used for earnings per share was 151,355,834, an increase of 1% year-over-year. Diluted WASO used for earnings per share was 152,793,490, a change of 0% year-over-year.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Recent Business Highlights:
- Achieved a gross revenue retention rate of 95% in the second quarter.
- Number of organic customers contributing more than $100,000 of annual recurring revenue totaled 2,871 as of June 30, 2026, an increase of 14% year-over-year.
- Announced new portfolio management and capital planning capabilities to transform the way owners manage capital projects.
- Launched a connected Common Data Environment to unify and verify project data.
- Introduced an expanded Procore AI experience, featuring a new suite of AI agents powered by embedded Datagrid intelligence and built directly into Procore.
Third Quarter, Full Year, and FY’27 Outlook:
Procore is providing the following guidance for the third quarter 2026, the full year 2026, and the full year 2027:
- Third Quarter 2026 Outlook:
- Revenue is expected to be in the range of $382 million to $384 million, representing year-over-year growth of 13.3%.
- Non-GAAP operating margin is expected to be in the range of 19% to 19.5%.
- Full Year 2026 Outlook:
- Revenue is expected to be in the range of $1,510 million to $1,514 million, representing year-over-year growth of 14.5% at the high end.
- Non-GAAP operating margin is expected to be in the range of 18.5% to 19.0%.
- Free cash flow margin is expected to be 19.5%.
- Full Year 2027 Outlook:
- Non-GAAP operating margin is expected to be 25%.
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Procore’s future GAAP financial results.
