Procore 2025 Q2 Earnings Misses Targets as Net Income Worsens

Procore reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Procore's financial results for Q2 2025 showed a notable miss against analysts' expectations, with earnings per share widening beyond forecasts. The company's guidance for Q3 suggests a cautious outlook, maintaining a revenue target between $326 million and $328 million and projecting a non-GAAP operating margin of 13% to 13.5%. Overall, Procore's fiscal year 2025 revenue outlook was raised, indicating growth despite current challenges.

Revenue
The total revenue of Procore increased by 13.9% to $323.92 million in 2025 Q2, up from $284.35 million in 2024 Q2.

Earnings/Net Income
Procore's losses deepened to $0.14 per share in 2025 Q2 from a loss of $0.04 per share in 2024 Q2 (250.0% wider loss). Meanwhile, the company's net loss widened to $-21.09 million in 2025 Q2, representing a 234.2% increase from the $-6.31 million loss recorded in 2024 Q2. The Company has sustained losses for 6 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. The earnings per share figures indicate a challenging financial performance.

Price Action
The stock price of Procore has edged down 2.87% during the latest trading day, has dropped 3.61% during the most recent full trading week, and has climbed 4.69% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Procore (PCOR) shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days has yielded poor performance over the past three years. This approach resulted in a return of -15.95%, significantly underperforming the benchmark return of 47.57%. The excess return was -63.52%, while the compounded annual growth rate (CAGR) stood at -4.09%. These results reflect substantial losses and a lack of growth in the strategy, highlighting its ineffectiveness as a viable investment approach. The strategy's negative performance emphasizes the importance of considering alternative investment tactics.

CEO Commentary
Craig F. Courtemanche, CEO & President, highlighted a strong Q2 performance with revenue growth of 14% year-over-year, driven by large deal activity and an increase in 6- and 7-figure deals by 21%. He emphasized the importance of Procore's innovations, particularly in AI, as pivotal for transforming the construction industry. Courtemanche expressed optimism about customer engagement, noting their increasing demand for automation and streamlined processes. He reinforced the company's commitment to efficient growth and market leadership, stating, "We are the category leader and one of the world's largest and most under-digitized industries," affirming a positive outlook for Procore's future.

Guidance
For Q3 2025, Procore expects revenue between $326 million and $328 million, reflecting a year-over-year growth of 10% to 11%. The non-GAAP operating margin is projected to be between 13% and 13.5%. For the full fiscal year 2025, Procore has raised its revenue guidance to a range of $1.299 billion to $1.302 billion, indicating total year-over-year growth of 13%, while maintaining a non-GAAP operating margin guidance of 13% to 13.5%, implying margin expansion of 300 to 350 basis points.

Additional News
In recent developments, Procore Technologies announced plans to relocate to a new 13,000 square foot location in Carpinteria on December 28th, showcasing its ongoing expansion efforts. Additionally, Procore's construction bidding tool is now available as a stand-alone application, reflecting the company's focus on product diversification. The company also made headlines with a survey indicating that Canadian construction managers could save up to 4.5 hours a week and CAD$446K annually through real-time data access, emphasizing Procore's role in driving efficiency and innovation in the construction industry. These initiatives highlight Procore's commitment to enhancing its market presence and operational effectiveness.