Procore Announces Third Quarter 2025 Financial Results

Procore Technologies, Inc. (NYSE: PCOR), the leading global provider of construction management software, today announced financial results for the third quarter ended September 30, 2025. “With this quarter’s strong results, I am pleased to be giving Ajei Gopal a strong foundation as he steps into the CEO role next week,” said Tooey Courtemanche, Founder, President, and CEO of Procore. “We are the clear market leader in one of the largest industries in the world, we have built an unrivaled platform that we believe is well-positioned to harness the power of AI for our customers, and our go-to-market model is yielding positive returns. And now, with Ajei’s proven operational expertise and leadership, we will be even better positioned to drive durable growth while unlocking further shareholder value.” “Q3 represented another strong quarter, marked by consistent revenue growth and improved operating leverage,” said Howard Fu, CFO of Procore. “I am proud of the performance we delivered in the quarter and these results reinforce our ability to drive efficient growth and strong per share improvements over the long-term.” Third Quarter 2025 Financial Highlights: Revenue was $339 million, an increase of 15% year-over-year.GAAP gross margin was 80% and non-GAAP gross margin was 84%.GAAP operating margin was (4%) and non-GAAP operating margin was 17%.Operating cash inflow for the third quarter was $88 million.Free cash inflow for the third quarter was $68 million, an increase of 194% year-over-year.Basic and diluted WASO used for GAAP net loss per share was 150,278,399, an increase of 1% year-over-year. Diluted WASO used for non-GAAP earnings per share was 153,555,556, an increase of 1% 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 third quarter.Number of organic customers contributing more than $100,000 of annual recurring revenue totaled 2,602 as of September 30, 2025, an increase of 15% year-over-year.Added 122 net new organic customers in the third quarter, ending with a total of 17,623 organic customers.Hosted Groundbreak 2025 and announced new AI innovations, including expanded features for Procore Assist and Open Beta release for Procore Agent Builder, among many more.Achieved Federal Risk and Authorization Management Program (FedRAMP®) “Moderate Equivalency” Designation.Announced Strategic Collaboration Agreement with AWS to accelerate AI product innovation and establish Procore availability in the AWS Marketplace. Fourth Quarter and Full Year Outlook: Procore is providing the following guidance for the fourth quarter 2025 and the full year 2025: Fourth Quarter 2025 Outlook:Revenue is expected to be in the range of $339 million to $341 million, representing year-over-year growth of 12% to 13%.Non-GAAP operating margin is expected to be 14.4%.Full Year 2025 Outlook:Revenue is expected to be in the range of $1,312 million to $1,314 million, representing year-over-year growth of 14%.Non-GAAP operating margin is expected to be 14%. 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. Stock Repurchase Program On October 29, 2024, Procore’s Board of Directors authorized its first stock purchase program; that stock repurchase program expired on October 29, 2025. On November 3, 2025, Procore’s Board of Directors authorized a new stock repurchase program to repurchase up to $300 million of Procore’s outstanding common stock. As with its first stock repurchase program, Procore intends to opportunistically repurchase shares based on market conditions through the open market (including via pre-set trading plans), or other transactions in accordance with applicable securities laws. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities. The new program does not obligate Procore to acquire any particular amount of common stock, and may be suspended or discontinued at any time at Procore’s discretion. The program will be funded using Procore’s working capital and will expire on November 3, 2026. Quarterly Conference Call Procore Technologies, Inc. will hold a conference call to discuss its third quarter results at 2:00 p.m., Pacific Time, on Wednesday, November 5, 2025. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Procore and its industry, including our outlook for fourth quarter 2025 and the full fiscal year 2025, that involve substantial risks and uncertainties. All statements in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events, future financial or operating performance, or new, planned, or upgraded products, services, or features, and may be identified by the use of 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 Procore’s expectations, strategy, plans, or intentions. Procore has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that Procore believes may affect its business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors that could cause results to differ materially from Procore’s current expectations, including, but not limited to, 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, anticipated performance, trends, growth rates, and challenges in our business and in the markets in which we operate or anticipate entering into, economic and industry trends (in particular, the rate of adoption of construction management software and digitization of the construction industry, inflation, interest rates, tariffs, and challenging geopolitical or macroeconomic conditions), our ability to realize the expected benefits of our go-to-market transition, our ability to attract new customers and retain and increase sales to existing customers, our ability to expand internationally, the effects of increased competition in our markets and our ability to compete effectively, our estimated total addressable market, our ability to execute, and realize benefits from, our stock repurchase program, our ability to effectively manage our CEO transition, our ability to develop and integrate new products, platform capabilities, services, and features in an efficient and timely manner and get our customers and prospective customers to adopt such new products, platform capabilities, services, and features, and as set forth in Procore’s filings with the Securities and Exchange Commission, including in the section titled “Risk Factors” in Procore’s Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 26, 2025, as updated by Procore’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed on August 1, 2025. You should not rely on Procore’s forward-looking statements. Procore assumes no obligation to update any forward-looking statements to reflect events or circumstances that exist or change after the date on which they were made, except as required by law. Non-GAAP Financial Measures In addition to Procore’s results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Procore believes certain non-GAAP measures, as described below, are useful in evaluating Procore’s operating performance. Procore uses this non-GAAP financial information, collectively, to evaluate its ongoing operations as well as for internal planning and forecasting purposes. Procore believes that non-GAAP financial information, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, and may assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. These non-GAAP financial measures are not prepared in accordance with GAAP, and are presented for supplemental purposes only. Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Income from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Net Income per Share: Procore defines these non-GAAP financial measures as the respective GAAP measures, excluding stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax related to employee stock transactions, and acquisition-related expenses. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenue. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP income from operations by total revenue. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Non-GAAP diluted earnings per share is computed by giving effect to all potential weighted average dilutive common stock equivalents outstanding for the period, including options to purchase common stock, restricted stock units, and shares to be issued pursuant to the employee stock purchase plan. The dilutive effect of outstanding awards is reflected in non-GAAP diluted earnings per share by application of the treasury stock method. Stock-based compensation expense includes the net effects of capitalization and amortization of stock-based compensation expense related to capitalized software and cloud-computing arrangement implementation costs. Stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of the compensation provided to our employees. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is a non-cash expense and is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, Procore believes non-GAAP measures that adjust for the amortization of acquired intangible assets provide investors a consistent basis for comparison across accounting periods. The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Procore’s control and that do not correlate to the operation of the business. When evaluating the performance of its business and making operating plans, Procore does not consider these items (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution than the accounting charges associated with such grants). Since the amount of employer payroll tax-related items on employee stock transactions is highly variable due to factors outside our control, and unrelated to Procore’s core operations, operating results, revenue-generating activities, business strategy, industry, or regulatory environment, management does not consider employer payroll tax on employee stock transactions in the evaluation of the business or in making operating plans. Accordingly, Procore believes this adjustment in arriving at our non-GAAP measures provides investors with a better understanding of the performance of its core business in a manner that is consistent with management’s view of the business. Acquisition-related expenses include external and incremental transaction costs, such as legal and due diligence costs and retention or other compensation payments. These expenses are unpredictable and generally would not have otherwise been incurred in the periods presented as part of our continuing operations. In addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition-related expenses, may not be indicative of such future costs. Procore believes that excluding acquisition-related expenses facilitates the comparison of its financial results to its historical operating results and to other companies in its industry. Overall, Procore believes it is useful to exclude these expenses in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Procore's own operating results over different periods of time. Non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in Procore's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on Procore's reported financial results. Unlike stock-based compensation expense, employer payroll tax related to employee stock transactions is a cash expense that we will continue to incur in the future. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Procore's business. Free Cash Flow: Procore defines free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized software development costs. Procore believes free cash flow is an important liquidity measure of the cash (if any) that is available, after our operating activities and capital expenditures. Procore uses free cash flow in conjunction with traditional GAAP measures to assess its liquidity and evaluate the effectiveness of its business strategies. Once Procore’s business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth, and execute our stock repurchase program. Other Metrics Customer Count: The aforementioned customer count excludes customers acquired from business combinations that do not have standard Procore annual contracts. Gross Revenue Retention Rate and Annual Recurring Revenue: For information on how we calculate gross revenue retention rate and annual recurring revenue, refer to our most recent Quarterly Report on Form 10-Q. About Procore Procore Technologies, Inc. (NYSE: PCOR) is a leading technology partner for every stage of construction. Built for the industry, Procore’s unified technology platform drives efficiency and mitigates risk through AI & data-driven insights and decision making. Over three million projects have run on Procore across 150+ countries. For more information, visit www.procore.com. PROCORE-IR Category: Earnings Procore Technologies, Inc. Condensed Consolidated Statements of Operations (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands, except share and per share amounts) Revenue $ 338,851 $ 295,885 $ 973,402 $ 849,660 Cost of revenue(1)(2)(3) 68,762 54,954 201,420 148,778 Gross profit 270,089 240,931 771,982 700,882 Operating expenses Sales and marketing(1)(2)(3)(4) 144,290 141,370 424,871 390,286 Research and development(1)(2)(3)(4) 88,049 80,791 264,560 223,698 General and administrative(1)(3)(4) 52,780 55,267 164,093 157,077 Total operating expenses 285,119 277,428 853,524 771,061 Loss from operations (15,030 ) (36,497 ) (81,542 ) (70,179 ) Interest income 4,826 5,962 15,838 17,714 Interest expense (276 ) (488 ) (859 ) (1,439 ) Accretion income, net 2,068 3,816 6,542 10,665 Other income (expense), net (210 ) 466 2,204 (26 ) Loss before provision for (benefit from) income taxes (8,622 ) (26,741 ) (57,817 ) (43,265 ) Provision for (benefit from) income taxes 479 (353 ) 5,362 400 Net loss $ (9,101 ) $ (26,388 ) $ (63,179 ) $ (43,665 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.06 ) $ (0.18 ) $ (0.42 ) $ (0.30 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 150,278,399 148,134,585 149,978,697 146,854,541 (1) Includes stock-based compensation expense and amortization of capitalized stock-based compensation as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands) Cost of revenue $ 6,155 $ 4,188 $ 17,291 $ 11,056 Sales and marketing 16,658 14,034 49,197 42,725 Research and development 20,969 18,321 60,630 49,684 General and administrative 15,491 13,912 41,591 39,602 Total stock-based compensation expense* $ 59,273 $ 50,455 $ 168,709 $ 143,067 *Includes amortization of capitalized stock-based compensation of $3.1 million and $2.3 million, respectively, for the three months ended September 30, 2025 and 2024; and $8.7 million and $5.5 million, respectively, for the nine months ended September 30, 2025 and 2024; which was initially capitalized as capitalized software and cloud-computing arrangement implementation costs. (2) Includes amortization of acquired intangible assets as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands) Cost of revenue $ 7,659 $ 6,698 $ 23,276 $ 18,739 Sales and marketing 3,346 3,224 9,998 9,475 Research and development 661 668 1,951 2,008 Total amortization of acquired intangible assets $ 11,666 $ 10,590 $ 35,225 $ 30,222 (3) Includes employer payroll tax on employee stock transactions as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands) Cost of revenue $ 181 $ 113 $ 642 $ 485 Sales and marketing 560 815 2,439 2,867 Research and development 629 521 3,458 3,089 General and administrative 294 281 1,639 1,820 Total employer payroll tax on employee stock transactions $ 1,664 $ 1,730 $ 8,178 $ 8,261 (4) Includes acquisition-related expenses as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands) Sales and marketing $ 139 $ — $ 933 $ 1,448 Research and development 695 — 2,439 — General and administrative 238 51 779 614 Total acquisition-related expenses $ 1,072 $ 51 $ 4,151 $ 2,062 Procore Technologies, Inc. Condensed Consolidated Balance Sheets (unaudited) September 30, 2025 December 31, 2024 (in thousands) Assets Current assets Cash and cash equivalents $ 350,496 $ 437,722 Marketable securities, current 333,480 337,673 Accounts receivable, net 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 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 Stockholders’ equity Common stock 15 15 Additional paid-in capital 2,533,616 2,535,868 Accumulated other comprehensive loss (1,636 ) (2,737 ) Accumulated deficit (1,307,972 ) (1,244,793 ) Total stockholders’ equity 1,224,023 1,288,353 Total liabilities and stockholders’ equity $ 2,058,483 $ 2,101,371 Remaining performance obligation: The following table presents our current and non-current RPO at the end of each period: September 30, Change 2025 2024 Dollar Percent (dollars in thousands) Remaining performance obligations Current $ 911,220 $ 738,856 $ 172,364 23 % Non-current 498,314 334,560 163,754 49 % Total remaining performance obligations $ 1,409,534 $ 1,073,416 $ 336,118 31 % Procore Technologies, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands) Operating activities Net loss $ (9,101 ) $ (26,388 ) $ (63,179 ) $ (43,665 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Stock-based compensation 56,153 48,175 160,023 137,532 Depreciation and amortization 29,196 24,233 83,288 65,127 Accretion of discounts on marketable debt securities, net (1,868 ) (3,382 ) (6,163 ) (10,131 ) Abandonment of long-lived assets 413 238 2,868 818 Noncash operating lease expense 1,382 2,913 4,311 7,906 Unrealized foreign currency (gain) loss, net 628 (419 ) (1,522 ) 295 Deferred income taxes 623 2 2,191 4 (Benefit from) provision for credit losses (118 ) 243 (1,084 ) 648 Decrease (increase) in fair value of strategic investments 54 184 237 (457 ) Changes in operating assets and liabilities, net of effect of asset acquisitions and business combinations Accounts receivable (12,007 ) (14,698 ) 42,611 34,296 Deferred contract cost assets (11,592 ) (1,128 ) (31,767 ) (3,217 ) Prepaid expenses and other assets (7,263 ) (11,931 ) (16,499 ) (12,121 ) Accounts payable 8,782 (2,250 ) (4,191 ) 11,029 Accrued expenses and other liabilities 18,536 21,972 30,168 (8,475 ) Deferred revenue 12,996 4,609 (15,313 ) (6,268 ) Operating lease liabilities 1,658 (3,097 ) (651 ) (6,205 ) Net cash provided by operating activities 88,472 39,276 185,328 167,116 Investing activities Purchases of property and equipment (5,392 ) (3,547 ) (12,400 ) (7,510 ) Capitalized software development costs (15,343 ) (12,721 ) (47,900 ) (32,453 ) Purchases of strategic investments, net (739 ) (845 ) (1,641 ) (1,917 ) Purchases of marketable securities (59,207 ) (86,245 ) (277,813 ) (410,619 ) Maturities of marketable securities 63,365 145,619 287,024 371,718 Sales of marketable securities 2,698 — 2,698 — Customer repayments of materials financing — 88 — 1,571 Business combinations, net of cash acquired — — (41,515 ) (25,945 ) Asset acquisitions, net of cash acquired — — (3,533 ) (3,792 ) Net cash (used in) provided by investing activities (14,618 ) 42,349 (95,080 ) (108,947 ) Financing activities Proceeds from stock option exercises 1,172 2,456 8,779 12,371 Proceeds from employee stock purchase plan — — 14,404 13,187 Repurchases of common stock (25,655 ) — (128,815 ) — Payment of tax withholding for net share settlement (21,318 ) — (71,173 ) — Payment of deferred business combination consideration — (1,470 ) — (1,470 ) Payment of deferred asset acquisition consideration — (81 ) — (81 ) Principal payments under finance lease agreements, net of proceeds from lease incentives (416 ) (900 ) (1,216 ) (1,569 ) Net increase in funds held for customers 6,251 — 6,251 — Net cash (used in) provided by financing activities (39,966 ) 5 (171,770 ) 22,438 Net increase (decrease) in cash and cash equivalents 33,888 81,630 (81,522 ) 80,607 Effect of exchange rate changes on cash (790 ) 1,429 1,160 901 Cash, cash equivalents, and restricted cash, beginning of period 324,262 356,239 437,722 357,790 Cash, cash equivalents, and restricted cash, end of period $ 357,360 $ 439,298 $ 357,360 $ 439,298 Procore Technologies, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (dollars in thousands) Revenue $ 338,851 $ 295,885 $ 973,402 $ 849,660 Gross profit 270,089 240,931 771,982 700,882 Stock-based compensation expense 6,155 4,188 17,291 11,056 Amortization of acquired technology intangible assets 7,659 6,698 23,276 18,739 Employer payroll tax on employee stock transactions 181 113 642 485 Non-GAAP gross profit $ 284,084 $ 251,930 $ 813,191 $ 731,162 Gross margin 80 % 81 % 79 % 82 % Non-GAAP gross margin 84 % 85 % 84 % 86 % Reconciliation of operating expenses to non-GAAP operating expenses: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (dollars in thousands) Revenue $ 338,851 $ 295,885 $ 973,402 $ 849,660 GAAP sales and marketing $ 144,290 $ 141,370 $ 424,871 $ 390,286 Stock-based compensation expense (16,658 ) (14,034 ) (49,197 ) (42,725 ) Amortization of acquired intangible assets (3,346 ) (3,224 ) (9,998 ) (9,475 ) Employer payroll tax on employee stock transactions (560 ) (815 ) (2,439 ) (2,867 ) Acquisition-related expenses (139 ) — (933 ) (1,448 ) Non-GAAP sales and marketing $ 123,587 $ 123,297 $ 362,304 $ 333,771 GAAP sales and marketing as a percentage of revenue 43 % 48 % 44 % 46 % Non-GAAP sales and marketing as a percentage of revenue 36 % 42 % 37 % 39 % GAAP research and development $ 88,049 $ 80,791 $ 264,560 $ 223,698 Stock-based compensation expense (20,969 ) (18,321 ) (60,630 ) (49,684 ) Amortization of acquired intangible assets (661 ) (668 ) (1,951 ) (2,008 ) Employer payroll tax on employee stock transactions (629 ) (521 ) (3,458 ) (3,089 ) Acquisition-related expenses (695 ) — (2,439 ) — Non-GAAP research and development $ 65,095 $ 61,281 $ 196,082 $ 168,917 GAAP research and development as a percentage of revenue 26 % 27 % 27 % 26 % Non-GAAP research and development as a percentage of revenue 19 % 21 % 20 % 20 % GAAP general and administrative $ 52,780 $ 55,267 $ 164,093 $ 157,077 Stock-based compensation expense (15,491 ) (13,912 ) (41,591 ) (39,602 ) Employer payroll tax on employee stock transactions (294 ) (281 ) (1,639 ) (1,820 ) Acquisition-related expenses (238 ) (51 ) (779 ) (614 ) Non-GAAP general and administrative $ 36,757 $ 41,023 $ 120,084 $ 115,041 GAAP general and administrative as a percentage of revenue 16 % 19 % 17 % 18 % Non-GAAP general and administrative as a percentage of revenue 11 % 14 % 12 % 14 % Reconciliation of loss from operations and operating margin to non-GAAP income from operations and non-GAAP operating margin: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (dollars in thousands) Revenue $ 338,851 $ 295,885 $ 973,402 $ 849,660 Loss from operations (15,030 ) (36,497 ) (81,542 ) (70,179 ) Stock-based compensation expense 59,273 50,455 168,709 143,067 Amortization of acquired intangible assets 11,666 10,590 35,225 30,222 Employer payroll tax on employee stock transactions 1,664 1,730 8,178 8,261 Acquisition-related expenses 1,072 51 4,151 2,062 Non-GAAP income from operations $ 58,645 $ 26,329 $ 134,721 $ 113,433 Operating margin (4 %) (12 %) (8 %) (8 %) Non-GAAP operating margin 17 % 9 % 14 % 13 % Reconciliation of net loss and net loss per share to non-GAAP net income and non-GAAP net income per share: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands, except share and per share amounts) Revenue $ 338,851 $ 295,885 $ 973,402 $ 849,660 Net loss (9,101 ) (26,388 ) (63,179 ) (43,665 ) Stock-based compensation expense 59,273 50,455 168,709 143,067 Amortization of acquired intangible assets 11,666 10,590 35,225 30,222 Employer payroll tax on employee stock transactions 1,664 1,730 8,178 8,261 Acquisition-related expenses 1,072 51 4,151 2,062 Non-GAAP net income $ 64,574 $ 36,438 $ 153,084 $ 139,947 Numerator: Non-GAAP net income $ 64,574 $ 36,438 $ 153,084 $ 139,947 Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders, basic 150,278,399 148,134,585 149,978,697 146,854,541 Effect of dilutive securities: Employee stock awards 3,277,157 3,693,792 4,428,985 5,029,245 Weighted-average shares used in computing net income per share attributable to common stockholders, diluted 153,555,556 151,828,377 154,407,682 151,883,786 GAAP net loss per share, basic $ (0.06 ) $ (0.18 ) $ (0.42 ) $ (0.30 ) GAAP net loss per share, diluted $ (0.06 ) $ (0.18 ) $ (0.42 ) $ (0.30 ) Non-GAAP net income per share, basic $ 0.43 $ 0.25 $ 1.02 $ 0.95 Non-GAAP net income per share, diluted $ 0.42 $ 0.24 $ 0.99 $ 0.92 Computation of free cash flow: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands) Net cash provided by operating activities $ 88,472 $ 39,276 $ 185,328 $ 167,116 Purchases of property, plant, and equipment (5,392 ) (3,547 ) (12,400 ) (7,510 ) Capitalized software development costs (15,343 ) (12,721 ) (47,900 ) (32,453 ) Non-GAAP free cash flow $ 67,737 $ 23,008 $ 125,028 $ 127,153 Source: Procore Technologies Inc.