Procore Technologies, Inc. (PCOR) Business Profile

What it does

Procore Technologies sells construction management software to owners, general contractors and specialty contractors. Its cloud platform gives project participants a place to share information and coordinate work from the office or the job site. Customers can use it on computers, smartphones and tablets.

The software covers stages of a construction project, from estimating and bidding before work begins to managing schedules, workers, equipment, costs and payments during construction. For example, a general contractor can use it to distribute drawings and track project progress, while a specialty contractor can use it to manage crews and document completed work. Owners can use it to monitor costs and progress across their projects.

Procore also offers tools that connect its software to customers’ other applications, including accounting and scheduling systems. Its AI products include digital coworkers that can carry out tasks such as checking subcontractor submissions against project specifications and drafting responses. A voice-first mobile app, Procore AI Go, is in beta.

In Q3 2026, Procore completed its acquisition of DroneDeploy, whose software captures visual information from construction sites using devices such as drones and cameras. Procore is integrating the two product suites.

Procore was incorporated in 2002 and is headquartered in Carpinteria, California. Ajei S. Gopal is its president and chief executive officer.

How it makes money

Procore generates substantially all its revenue from subscriptions to its software. It generally charges a fixed fee based on the products a customer selects and the dollar volume of construction work the customer contracts to run on the platform. It earns more when customers subscribe to additional products or commit more construction volume.

Contracts can run for one year or multiple years. Some multi-year contracts measure construction volume over successive one-year periods; others pool a fixed volume over multiple years, typically two- or three-year periods, while charging flat annual fees. Procore does not refund customers for unused construction volume and generally does not charge by project or by consumption.

The usual subscription permits unlimited users rather than charging for each seat. A paying customer can invite employees and other project participants to collaborate without additional user fees. Some owner customers instead purchase access on a per-user basis. Multiple participants on the same project can each be paying customers, with their own workflows and continued access to project information during their subscriptions.

Procore organizes its software into preconstruction, project execution, resource management and financial management products. Since February 2026, customers have also been able to choose bundled packages with different tiers, in addition to buying products individually. Procore offers optional implementation and guidance services for an extra charge. Its AI agents are priced on usage.

Revenue was $1.3 billion in 2025. Revenue in Q3 2026 included $5 million from DroneDeploy.

Customers and how it sells

Procore serves customers from small businesses to global enterprises, across residential and non-residential construction. Its core buyers are owners, general contractors and specialty contractors. Owners initiate and finance projects, general contractors coordinate the work, and specialty contractors perform trades such as electrical, plumbing and concrete work.

As of December 31, 2025, Procore had 17,850 customers. Customers contributing more than $100,000 of annual recurring revenue represented 66% of total annual recurring revenue at that date. Procore plans to discontinue its total customer count disclosure starting in 2026 and continue reporting the number of customers above the $100,000 threshold.

General contractors were about 60% of the business in Q3 2026. During that quarter, longtime customer Suffolk signed a new contract to use Procore across more projects, and Schneider Electric Secure Power expanded its use of the platform. Procore also added a U.S. government agency as a customer.

Procore sells primarily through a direct sales team organized by geography, customer size and type. In FY2025, U.S. revenue was $1.1 billion, or 85.3% of revenue; revenue from the rest of the world was $194.8 million, or 14.7%. Procore services its sales teams regionally through offices in the U.S., Canada, Australia, England, the UAE and Ireland.

Suppliers and costs

Procore’s principal cash requirements include operating expenses, particularly personnel-related costs, as well as hosting and software-license commitments, other services, office leases and capital expenditures for employees and offices. It also spends on acquisitions and investments. As of December 31, 2025, it had 4,421 full-time employees.

Its research and development teams build new features and products and maintain existing software and cloud infrastructure. Sales and marketing spending supports customer acquisition and expansion, while customer support is available to users at no additional charge. Procore has invested in sales headcount, training and product and technical specialists as it changed its sales operating model.

For the next 12 months from December 31, 2025, Procore had non-cancelable purchase commitments of $63.0 million. In Q3 2026, it acquired DroneDeploy for $845 million in cash, financed with cash on hand and $950 million of zero-coupon convertible notes due in 2031. Procore expects increased computing expenses for AI workloads to put pressure on gross margin.

Competitive position

Procore competes with providers of construction management tools, accounting software vendors that add project management features, specialized software vendors, and tools or processes developed by customers themselves. It also encounters manual approaches such as paper, email and spreadsheets. Some competing products and point solutions integrate with Procore and are available through its App Marketplace. No competing company is named in the available competition evidence.

Procore’s platform brings project information and workflows together across its product categories. Its integrations connect the platform to other applications, while its unlimited-user model lets paying customers invite other project participants without additional user fees. Those collaborators can use relevant project features but need their own subscriptions to manage their full project portfolios and retain access independently.

Our reading: The combination of project records, connected workflows and integrations offers a meaningful switching barrier, although the evidence does not establish how costly switching is for a typical customer. Our reading: The invitation model can help Procore reach potential customers through existing projects, but it does not ensure that collaborators become paying subscribers. Our reading: Construction-specific products and data support differentiation, while specialized vendors and customer-built tools can still compete for individual workflows.

Procore’s gross retention rate was 95% as of December 31, 2025. That measure reflects customer losses but not expansion or contraction.

Growth opportunities

Procore’s growth strategy includes winning new customers, selling more products and construction volume to existing customers, expanding internationally and making targeted acquisitions. The company also plans to invest in product development and AI capabilities. Collaborators invited onto existing customers’ projects are potential subscribers, while the App Marketplace provides a source of potential acquisition candidates.

Procore’s annual revenue was $1.3 billion in 2025, up 15% from 2024. The number of customers contributing more than $100,000 of annual recurring revenue rose to 2,710 as of December 31, 2025, from 2,333 a year earlier. Its net retention rate was 106% as of both December 31, 2025 and 2024; Procore does not consider that metric a key measure because of the effect of pooled-volume contracts.

The DroneDeploy acquisition adds visual intelligence to the platform. At the time of the acquisition, the two companies shared approximately 600 customers. Procore plans to cross-sell DroneDeploy’s products to its customers and introduce its owner solutions to DroneDeploy customers. Product integration is underway.

Procore’s digital coworkers became generally available in Q3 2026. It is also developing digital-twin capabilities that let teams view projects in three dimensions and understand how disruptions could affect schedules; the solution was in closed beta at the time of the Q3 call. For 2026, Procore expects reported revenue of $1.557 to $1.559 billion, including DroneDeploy.

Structural risks

• Customer acquisition and retention: Procore’s growth depends on acquiring new customers, retaining existing ones and expanding their use of the platform. Its changes to the sales operating model have caused, and may continue to cause, near-term disruption to financial and operating results.

• Profitability and capital: Procore recorded a net loss of $100.8 million in 2025. It may not achieve profitability in the foreseeable future and may need additional capital to fund growth initiatives; financing may not be available on acceptable terms.

• Acquisitions: Procore may be unsuccessful in making, integrating or maintaining acquisitions and other strategic investments. The company is integrating DroneDeploy after completing that acquisition in Q3 2026.

• International operations: Expansion exposes Procore to local regulatory requirements, higher costs, currency fluctuations and potentially longer payment cycles. It also must adapt products to different languages and local requirements.

• Regulation and data: Procore and its partners face changing and potentially inconsistent privacy and security obligations. Government customers can have certification requirements, and changes in funding or procurement policies can affect demand and payment.

• AI costs: Procore expects increased computing expenses to support AI workloads to pressure gross margin. Its ability to protect intellectual property and proprietary information also affects its business.

Bottom line

Our reading

Procore is a subscription software business built around coordinating construction projects, with opportunities to sell more products and contracted construction volume to existing customers. [item1] Its project data, integrations and invitations to collaborators support its position, but those advantages coexist with competition from specialized tools and manual processes. [item1] Growth and the DroneDeploy acquisition expand its offerings, while continuing losses, integration demands and AI computing costs remain important exposures. [item1] [item1a] [facts] [call_qa]