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what it is
Procore sells cloud software that keeps owners, contractors, architects, and engineers working from the same project playbook.
how it gets paid
Last year Procore Tech made $1.3B in revenue. project management was the main engine at $0.52B, or 40% of sales.
why it's growing
Revenue grew 14.8% last year. The top line was supported by strong revenue retention rates and an uptick in customers with annual revenues greater than $100.
what just happened
Procore's last report was a classic software contradiction: $0.37 EPS beat estimates, while the annual model still points to thin profitability.
At a glance
B+ balance sheet — decent shape, but not bulletproof
3.5% return on capital — nothing to write home about
xvary composite: 46/100 — below average
-$0.20 fy2026 eps est
$2B fy2028 rev est
What they do
Procore sells cloud software that keeps owners, contractors, architects, and engineers working from the same project playbook.
Construction is chaos with invoices, drawings, schedules, and field updates flying at different people at once. Procore wins because it puts those groups in one system, and leaving means your team has to retrain, rewire workflows, and drag years of project habits elsewhere. That pain shows up in the numbers: gross margin was 79.3% in 2025, which means every $100 of software revenue left about $79 before overhead.
How they make money
$1.3B
annual revenue · their business grew +14.8% last year
project management
$0.52B
financial management
$0.33B
quality and safety
$0.20B
owners and preconstruction
$0.16B
analytics and other
$0.09B
The products that matter
construction workflow software
Construction Management Platform
$1.3B revenue · roughly 80% subscription-backed
it's the engine of the entire business. That 80% recurring mix is why investors still price Procore like a software company rather than a cyclical construction vendor.
core engine
financial and workflow coordination
Embedded job-site workflow
the page gives no segment breakout
the data here is thin, and that matters. What you can say from the page is that the value comes from being embedded in day-to-day construction work, where switching systems is annoying, expensive, and operationally risky.
sticky if adopted
cross-sell and account expansion
Subscription base
roughly 80% of revenue repeats
this is less a separate product than a business model fact. If customers keep adding users and modules, growth stays healthy. If they pause expansion, you find out very quickly how much of the story was new demand versus deeper adoption.
growth hinge
Key numbers
79.3%
gross margin
Gross margin → money left after delivering the software → so what: the product itself is excellent business, even if the company still overspends below that line.
9.4%
operating margin
Operating margin → profit after paying to run the business → so what: Procore still has a cost-control problem.
$2.0B
2028 revenue
That is the revenue estimate for fiscal 2028, up from $1.3 billion now, which is the growth story you are paying for.
3.5%
return on capital
Return on capital → profit generated from money invested in the business → so what: this is still low for a software company.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- long-term debt $27M (0% of capital)
- net profit margin 3.3% — keeps 3 cents of every dollar in revenue
- return on equity 4% — $0.04 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for PCOR right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Procore's last report was a classic software contradiction: $0.37 EPS beat estimates, while the annual model still points to thin profitability.
Revenue rose to about $1.3 billion for the year, up 14.8%. Management also benefited from stronger gross margins and tighter operating expenses in the latest reported period.
$325M
revenue
$0.37
eps
79.3%
gross margin
the number that mattered
79.3% gross margin is the tell. The software economics are strong enough that if spending discipline improves, earnings can move fast.
-
procore technologies delivered solid results for the third quarter of 2025.the provider of cloud-based construction management solutions reported revenues of $339 million and a share deficit of $0.06 for the september period.
-
both figures logged impressive improvements from a year ago.the top line was supported by strong revenue retention rates and an uptick in customers with annual revenues greater than $100,000.
-
meanwhile, the bottom line was boosted by stronger gross margins and narrower operating expenses, namely lower administrative costs.in line with management’s recent outlook, we are adding $15 million to our full-year 2025 revenue estimate, to $1.315 billion.
-
likewise, we are shaving a nickel from our share-deficit expectation, to a loss of $0.50.
-
the company is buying back stock at a fairly aggressive clip.following the recent expiration of its previous repurchase program, the board of directors announced a fresh $300-million buyback authorization. procore can opportunistically repurchase shares in the open market until the program expires in november of this year.
source: company earnings report, 2026
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What could go wrong
the real risk is not "software has risks." It is more specific: construction spending cools or customer expansion slows before Procore's margin profile looks unmistakably software-like.
med
construction activity softens and account expansion loses speed
Procore sells into construction workflows. If project starts or project budgets weaken, customers do not need to cancel the platform for growth to disappoint. They only need to add less.
With roughly 80% of revenue tied to subscriptions, retention helps. It does not fully protect you if expansion within existing accounts slows at the same time.
med
workflow stickiness proves less powerful than investors assume
The argument for Procore is not monopoly power. It is that construction teams, once trained and embedded, do not want to switch core systems. If that proves overstated, pricing gets harder and selling costs matter more.
That matters a lot with a 5.5% operating margin. Thin margins mean even modest commercial pressure shows up quickly in earnings.
med
the profit inflection keeps moving one more year out
The page shows a fy2026 EPS estimate of -$0.20 and a full-year loss of -$0.50. Investors forgive losses when they look temporary. They stop forgiving them when the finish line keeps moving.
If revenue stays healthy while EPS stays below zero, the stock can look expensive and unfinished at the same time. That's not a fun combination.
Roughly 80% recurring revenue helps. A 5.5% operating margin means the company still needs growth and profitability to improve together, not one at a time.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
subscription mix holding near 80%
That recurring base is the reason investors still give this name software-style patience. If that mix slips, the whole framing changes.
trend
revenue growth versus the 35.9% pace
Growth built the story. If that number cools before margins move higher, the market stops paying up for future improvement and starts grading what exists today.
risk
operating margin above 5.5%
You do not need perfection. You do need proof that scale is becoming profit and not just a bigger revenue base with similar economics.
capital return
execution on the $300M buyback
Repurchases matter more when earnings are still negative. They can support per-share math, but they do not substitute for a better operating profile.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think the stock has near-term work to do even if the longer story still has believers.
risk profile
average
stability score 3 — a normal risk bucket, not a bunker stock and not a demolition derby.
chart momentum
top 5%
technical score 1 — the chart looks stronger than the 46/100 composite. Welcome to growth stocks: price can look better than fundamentals for a while.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 213 buyers vs. 165 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$49
$130
$68
current price
$90
target midpoint · +32% from current · 3-5yr high: $115 (+70% · 14% ann'l return)
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