Key Highlights

  • Revenue was USD 402.3 million, up 19% year over year, including 2 percentage points from the DroneDeploy acquisition.
  • Non-GAAP Operating Margin was 23% and GAAP operating margin was negative 2%, with a net loss of USD 4.6 million.
  • Operating cash inflow was USD 96 million and free cash inflow was USD 73 million, each up 8%.
  • Full-year Revenue guidance is USD 1,557.0 million to USD 1,559.0 million, with a non-GAAP operating margin of 19.0% to 19.5%.

Revenue Ahead of the Guided Range

Procore Technologies, Inc. (NYSE:PCOR), the Carpinteria, California provider of construction management software, reported third-quarter 2026 revenue of USD 402.3 million, up 19% from USD 338.9 million. President and Chief Executive Officer Ajei Gopal said revenue and margins came in above the high end of the company's guidance.

GAAP gross margin was 80% and non-GAAP gross margin was 84%. Gross Profit was USD 323.6 million. Operating expenses rose to USD 330.8 million from USD 285.1 million, with Research and Development at USD 108.5 million against USD 88.0 million and general and administrative at USD 72.3 million against USD 52.8 million. The loss from operations narrowed to USD 7.2 million from USD 15.0 million, and the net loss was USD 4.6 million, or USD 0.03 per share, compared with USD 9.1 million, or USD 0.06.

Analyst estimates were EPS of USD 0.46 against reported EPS of USD 0.51, and revenue of USD 384.4 million against reported revenue of USD 402.3 million.

Customers and Cash Generation

Gross revenue retention was 95% in the quarter. The number of organic customers contributing more than USD 100,000 of annual Recurring Revenue reached 2,968, up 14% year over year. The company completed the Acquisition of DroneDeploy, adding three-dimensional ground and aerial reality capture to its visual intelligence and AI capabilities, and made its Procore AI digital coworkers generally available. At its Groundbreak 2026 event it announced a voice-first mobile experience called Procore AI Go and collaborations with NVIDIA and IBM. Gopal described the aim of becoming an AI-native construction platform.

Operating cash inflow was USD 96 million and free cash inflow was USD 73 million, each up 8%. Cash and cash equivalents were USD 540.0 million at September 30, 2026, against USD 480.7 million at December 31, 2025, and current marketable securities were USD 73.9 million versus USD 287.8 million. Weighted average diluted shares used for the GAAP loss were 150.4 million, flat year over year.

Guidance Through 2027

For the fourth quarter the company guides to revenue of USD 420 million to USD 422 million, including USD 19 million from DroneDeploy, for year-over-year growth of 20.3% to 20.9%, and a non-GAAP operating margin of 15.5% to 16.0%. For the full year it guides to revenue of USD 1,557.0 million to USD 1,559.0 million, including USD 24 million from DroneDeploy, for growth of 17.7% to 17.9%, and a non-GAAP operating margin of 19.0% to 19.5%.

Free Cash Flow margin is guided to 18.0%, which includes USD 23 million of one-time cash payments tied to the DroneDeploy acquisition, and to 19.5% excluding those payments. For 2027 the company targets a non-GAAP operating margin of 25%.

The chief financial officer said underlying momentum was behind the 19% growth, of which DroneDeploy contributed 2 percentage points.

Items to Follow

Delivery against the fourth-quarter margin guidance, retention and the integration of DroneDeploy are the items to follow.