Procore's 1.76% Surge Fueled by 49.89% Volume Jump, Ranks 259th in Active Stocks

On August 5, 2025, Procore (PCOR) surged 1.76% with a trading volume of $460 million, a 49.89% increase from the previous day, ranking 259th among active stocks. The move followed a mixed Q2 performance marked by revenue growth but margin compression.

Second-quarter results showed GAAP revenue rising 13.9% year-on-year to $323.9 million, exceeding expectations. Non-GAAP operating margin, however, fell to 13% from 18% in Q2 2024, reflecting higher R&D and sales expenses. The company also reported a $21.1 million GAAP net loss but delivered a 33.4% beat on non-GAAP earnings per share at $0.35.

Analyst activity fueled optimism, with Baird initiating coverage at Outperform with an $88 target and DA Davidson raising its price target to $70. Recent strategic moves, including acquisitions of Novorender and FlyPaper to enhance BIM capabilities, and a FedRAMP "In Process" designation for government contracts, underscored long-term growth ambitions. These steps aim to strengthen Procore’s position in a fragmented market by improving digital collaboration tools.

Despite strong customer retention (95% gross revenue retention) and 15% year-on-year growth in high-value clients, near-term guidance signaled caution. Q3 revenue is projected at $326–$328 million, implying a slower growth rate compared to Q2’s 14% increase. Management attributed this to macroeconomic headwinds, including construction sector volatility and regulatory uncertainties.

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