CARPINTERIA, Calif.--(BUSINESS WIRE)--May 05, 2026-- 

Procore Technologies, Inc. (NYSE: PCOR), the leading global provider of construction management software, today announced financial results for the first quarter ended March 31, 2026.

"We delivered strong Q1 financials," said Ajei Gopal, President and CEO of Procore. "That performance, which exceeded the high end of our guidance, gives us even more confidence in the future, enabling us to increase our full-year outlook. I am particularly pleased that we have also strengthened our flagship platform, as well as our agentic AI capabilities."

"I am thrilled to join Procore at such a transformative moment," said Rachel Pyles, CFO of Procore. "We are well positioned to deliver durable and profitable growth to ultimately compound our north star metric: free cash flow per share."

First Quarter 2026 Financial Highlights:

   --  Revenue was $359 million, an increase of 16% 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 first quarter was $77 million. 
 
   --  Free cash inflow for the first quarter was $56 million, an increase of 
      20% year-over-year. 
 
   --  Basic and diluted WASO used for GAAP net loss per share was 
      150,950,902, an increase of 1% year-over-year. Diluted WASO used for 
      non-GAAP earnings per share was 152,841,588, a decrease 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 first quarter. 
 
   --  Number of organic customers contributing more than $100,000 of annual 
      recurring revenue totaled 2,795 as of March 31, 2026, an increase of 16% 
      year-over-year. 
 
   --  Announced Procore Platform integration with the NVIDIA Omniverse DSX 
      Blueprint to accelerate the building of AI factories. 
 
   --  Recognized by G2 as a Top 100 Global Software Company for 2026. 
 
   --  Appointed distinguished AI and academic leader Vishal Misra to 
      Procore's Board of Directors. 
 
   --  Repurchased approximately 1.8 million shares of common stock for 
      approximately $100 million in the first quarter as part of our authorized 
      stock repurchase program. 

Second Quarter and Full Year Outlook:

Procore is providing the following guidance for the second quarter 2026 and the full year 2026:

   --  Second Quarter 2026 Outlook: 
 
          --  Revenue is expected to be in the range of $364 million to $366 
             million, representing year-over-year growth of 12% to 13%. 
 
          --  Non-GAAP operating margin is expected to be in the range of 
             17.5% to 18.5%. 
 
 
 
   --  Full Year 2026 Outlook: 
 
          --  Revenue is expected to be in the range of $1,499 million to 
             $1,503 million, representing year-over-year growth of 13.6% at the 
             high end. 
 
          --  Non-GAAP operating margin is expected to be in the range of 18% 
             to 18.5%. 
 
          --  Free cash flow margin is expected to be 19%. 
 
 

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.

Quarterly Conference Call

Procore Technologies, Inc. will hold a conference call to discuss its first quarter results at 7:30 a.m., Central Time, on Tuesday, May 5, 2026. 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 second quarter 2026 and the full fiscal year 2026 and our expectations regarding artificial intelligence, 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 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, 2025, filed on February 24, 2026. 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, acquisition-related expenses, and impacts of income tax effects. 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.

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