Procore Technologies Reports 14% Revenue Growth to $323.9 Million in Q2 2025

Procore Technologies, Inc. reported a revenue of $323.9 million for the second quarter of 2025, marking a 14% increase from $284.3 million in the same period last year. For the first half of 2025, the company generated $634.6 million in revenue, a 15% rise compared to $553.8 million in the first half of 2024. Despite this growth, Procore recorded a net loss of $21.1 million for the quarter, up from a loss of $6.3 million in Q2 2024, and a total net loss of $54.1 million for the first half of 2025, compared to a loss of $17.3 million in the prior year.

The increase in revenue was primarily driven by existing customers, which accounted for approximately 82% of the growth in Q2 2025. The number of customers contributing over $100,000 in annual recurring revenue rose by 15% year-over-year, from 2,191 to 2,517. Overall, the total customer count increased from 16,750 to 17,501, reflecting a 4% growth. The company’s gross retention rate improved slightly to 95% as of June 30, 2025, compared to 94% a year earlier, indicating strong customer loyalty.

Procore's operating expenses also increased significantly, totaling $286.5 million for Q2 2025, up from $251.0 million in Q2 2024. This rise was attributed to higher personnel-related costs across sales and marketing, research and development, and general and administrative functions. The company expanded its workforce, particularly in research and development, which saw a 49% increase in headcount since June 2024. The cost of revenue also surged by 41% to $67.7 million, driven by increased personnel expenses and third-party hosting costs.

Strategically, Procore has made significant investments in technology and product development, including the acquisition of Novorender AS for $44.3 million in January 2025, aimed at enhancing its capabilities in construction management. The company also launched Procore Pay, a payment solution designed to streamline financial transactions between contractors and subcontractors. These initiatives are part of Procore's broader strategy to expand its product offerings and capture a larger share of the construction management market.

Looking ahead, Procore anticipates continued growth, although it acknowledges potential challenges from macroeconomic factors such as inflation and geopolitical uncertainties that may affect customer spending. The company remains focused on its long-term growth strategy, which includes evolving its go-to-market operating model and expanding its international presence. Procore's cash and marketable securities totaled $706.7 million as of June 30, 2025, providing a solid foundation for its ongoing investments and operational needs.