Second Quarter 2026
Filed Jul 29, 2026Procore reported 16% year-over-year revenue growth, GAAP operating profitability, and $65 million of free cash inflow in the second quarter of 2026.
The company delivered 16% revenue growth, a 1% GAAP operating margin, 21% non-GAAP operating margin, and substantial operating and free cash inflows, while guiding to continued revenue growth and higher full-year non-GAAP operating-margin performance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $375 million | – | 16% |
| Gross marginGAAP | 80% | – | – |
| Gross marginnon-GAAP | 84% | – | – |
| Operating marginGAAP | 1% | – | – |
| Operating marginnon-GAAP | 21% | – | – |
| Operating cash inflowGAAP | $88 million | – | 185% |
| Free cash inflowother | $65 million | – | 507% |
| Basic WASO used for earnings per shareGAAP | 151,355,834 | – | 1% |
| Diluted WASO used for earnings per shareGAAP | 152,793,490 | – | 0% |
| Gross revenue retention rateother | 95% | – | – |
| Organic customers contributing more than $100,000 of annual recurring revenueother | 2,871 | – | 14% |
Third Quarter 2026, Full Year 2026, and Full Year 2027 outlook
- RevenueThird Quarter 2026: $382 million to $384 million; Full Year 2026: $1,510 million to $1,514 million
- NoteThird Quarter 2026 non-GAAP operating margin: 19% to 19.5%
- NoteThird Quarter 2026 revenue year-over-year growth: 13.3%
- NoteFull Year 2026 revenue year-over-year growth: 14.5% at the high end
- NoteFull Year 2026 non-GAAP operating margin: 18.5% to 19.0%
- NoteFull Year 2026 free cash flow margin: 19.5%
- NoteFull Year 2027 non-GAAP operating margin: 25%
What drove it
- Achieved a gross revenue retention rate of 95% in the second quarter.
- Number of organic customers contributing more than $100,000 of annual recurring revenue totaled 2,871 as of June 30, 2026, an increase of 14% year-over-year.
- Announced new portfolio management and capital planning capabilities.
- Launched a connected Common Data Environment to unify and verify project data.
- Introduced an expanded Procore AI experience featuring AI agents powered by embedded Datagrid intelligence.
Concerns
- Third Quarter 2026 revenue guidance represents year-over-year growth of 13.3%, compared with reported second-quarter revenue growth of 16%.
- The filing cites risks related to construction-management-software adoption, economic and industry trends, inflation, interest rates, tariffs, geopolitical or macroeconomic conditions, competition, customer retention, international expansion, acquisitions, product adoption, and litigation or disputes.
- The company states that a reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort.
What to watch
- Third Quarter 2026 revenue delivery against the $382 million to $384 million outlook.
- Third Quarter 2026 non-GAAP operating margin delivery against the 19% to 19.5% outlook.
- Full Year 2026 revenue delivery against the $1,510 million to $1,514 million outlook.
- Full Year 2026 non-GAAP operating margin delivery against the 18.5% to 19.0% outlook and free cash flow margin delivery against 19.5%.
- Progress toward the Full Year 2027 non-GAAP operating margin outlook of 25%.
- Retention performance and growth in organic customers contributing more than $100,000 of annual recurring revenue.
Balance sheet and cash flow
- Operating cash inflow for the second quarter was $88 million, an increase of 185% year-over-year.
- Free cash inflow for the second quarter was $65 million, an increase of 507% year-over-year.
Analysis
Procore reported $375 million of revenue for the second quarter ended June 30, 2026, up 16% year-over-year. The company paired that growth with a 95% gross revenue retention rate and 2,871 organic customers contributing more than $100,000 of annual recurring revenue, up 14% year-over-year. These operating metrics point to continued retention and expansion within the higher-value customer cohort.
Profitability was positive on both reported margin measures. GAAP gross margin was 80%, non-GAAP gross margin was 84%, GAAP operating margin was 1%, and non-GAAP operating margin was 21%. Management specifically highlighted achievement of GAAP operating profitability, making the reported 1% GAAP operating margin a central development in the period.
Cash generation was also strong. Operating cash inflow was $88 million, an increase of 185% year-over-year, while free cash inflow was $65 million, an increase of 507% year-over-year. The release does not provide cash balances, debt, capital expenditures, repurchase activity, dividends, or the underlying reconciliations and income-statement amounts in the supplied text, limiting assessment of balance-sheet capacity and the detailed sources of cash-flow improvement.
The outlook calls for third-quarter revenue of $382 million to $384 million, representing 13.3% year-over-year growth, and a 19% to 19.5% non-GAAP operating margin. For full-year 2026, Procore expects $1,510 million to $1,514 million of revenue, 18.5% to 19.0% non-GAAP operating margin, and 19.5% free cash flow margin. Management also introduced a full-year 2027 non-GAAP operating-margin outlook of 25%, which establishes a longer-term profitability target.
Product activity centered on new portfolio management and capital planning capabilities, a connected Common Data Environment, and an expanded Procore AI experience with embedded Datagrid intelligence. The key reported tension is that the third-quarter revenue-growth outlook of 13.3% is below the second-quarter reported 16% growth rate, while the company continues to guide for improving profitability and cash-flow execution over the full year.
Management, verbatim
Our outstanding Q2 results demonstrate the continued value our platform provides to the construction industry.
Ajei Gopal, President and CEO of Procore
We had strong Q2 performance, including achieving GAAP operating profitability.
Rachel Pyles, CFO of Procore
Not in the filing
stated, not guessed- GAAP gross profit
- non-GAAP gross profit
- GAAP operating income
- non-GAAP income from operations
- GAAP net income or loss
- non-GAAP net income
- GAAP basic earnings per share
- GAAP diluted earnings per share
- non-GAAP basic earnings per share
- non-GAAP diluted earnings per share
- Revenue prior-year dollar amount
- Revenue prior-quarter amount
- Gross-margin prior-year and prior-quarter comparisons
- Operating-margin prior-year and prior-quarter comparisons
- Operating cash inflow prior-year dollar amount
- Free cash inflow prior-year dollar amount
- Segment revenue and segment comparisons
- Cash and cash equivalents
- Debt
- Capital expenditures
- Stock repurchases
- Dividends
- Deferred revenue or remaining performance obligations
- Prior guidance for comparison
- Guidance for gross margin, operating expenses, and tax rate
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.