Procore Technologies, Inc. (PCOR): Business Model Canvas [Dec-2025 Updated]

You're digging into the financials of Procore Technologies, Inc. because their shift to efficient scale is clearly paying off, with 2025 revenue guidance hitting over $1.31 billion and their customer stickiness-that gross revenue retention-holding strong at 95%. Honestly, understanding how they lock in that kind of recurring revenue while investing heavily in R&D for things like AI is key to valuing this construction software giant right now. If you want the full picture of how they generate those billions, from their App Marketplace partnerships to their subscription fees, check out the complete Business Model Canvas breakdown below. It shows exactly where the money comes from and where it goes.

Procore Technologies, Inc. (PCOR) - Canvas Business Model: Key Partnerships

You're looking at how Procore Technologies, Inc. (PCOR) builds out its platform value, and honestly, the partnership strategy is where a lot of that value comes from. It's not just about what Procore builds internally; it's about connecting to the entire construction ecosystem. As of late 2025, with the company guiding for full-year revenue between $1.299 billion and $1.302 billion, these alliances are crucial for scale and depth.

Extensive App Marketplace for Hundreds of Integrations

The Procore App Marketplace is the engine for extending platform capabilities. As of the February 2025 Annual Report, Procore Technologies, Inc. offered over 500 integrations. This breadth lets customers connect Procore's core platform with their existing internal systems, which is key to making Procore the industry's system of record. This ecosystem approach helps drive platform stickiness, a major factor when you consider Procore ended Q2 2025 with 17,501 organic customers.

The marketplace supports:

• Accounting and financial software connections.
• Document management system links.
• Scheduling software interoperability.

Strategic Technology Partners like AWS, Sage, and DocuSign

Procore Technologies, Inc. has formalized major strategic relationships to drive innovation, especially around data and AI. In August 2025, Procore signed a multi-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS). This means Procore's platform is now available in AWS Marketplace for customers in North America and Europe, allowing them to use existing AWS spend commitments for purchases. Procore will also leverage Amazon Bedrock large language models (LLMs) to power its AI agents for document analytics and task automation.

For financial data flow, Procore Technologies, Inc. maintains an out-of-the-box integration with Sage 100 Contractor, which is a big deal for field teams needing untethered access to job costing. While the native Procore Pay tool handles invoice signatures, the DocuSign integration is available optionally through certain partner apps.

Integration Partners for Specialized Workflows, e.g., Built for Lien Waivers

Specialized workflows, like managing compliance and cash flow, rely on deep integrations with niche players. Built Technologies is a prime example here, offering its Lien Waiver Management solution directly within Procore. This allows users to create, send, and track lien waivers alongside project documents, whether using Procore Financial Management or an external accounting system. Built's solution integrates directly with systems like QuickBooks Desktop, QuickBooks Online, Xero, Sage 100 Contractor, and Sage 300 CRE.

Another key partner in this space is Levelset. Their integration automates waiver request and collection for approved requisitions and payments in Procore. A nice perk is that Levelset offers this service for unlimited lien waivers and documents received with a standard subscription.

Solution Partners for Implementation and Tailored Configurations

Beyond direct software integration, solution partners help customers actually implement and configure the platform for complex needs. While specific implementation partner revenue figures aren't public, the existence of these partners is vital for onboarding the large enterprise clients Procore is winning, such as the customer that expanded its adoption nearly 10x in Q4 2024. These partners often specialize in connecting Procore to Enterprise Resource Planning (ERP) systems.

You can see how these different partnership types layer on top of the core platform:

Partnership Type	Example Partner/Platform	Key Metric/Data Point
Strategic Technology	Amazon Web Services (AWS)	Platform available in AWS Marketplace for North America and Europe.
Specialized Workflow	Built Technologies	Integrates with Sage 100 Contractor and Sage 300 CRE for lien waivers.
Specialized Workflow	Levelset	Offers unlimited lien waivers and documents received with subscription.
Core Integration	Sage 100 Contractor	Procore offers an out-of-the-box integration.
Marketplace Scale	App Marketplace	Features over 500 integrations as of early 2025.

BIM/3D Model Partners Following Acquisitions like Novorender

Procore Technologies, Inc. significantly boosted its BIM capabilities in May 2025 by acquiring Novorender and FlyPaper Technologies. This move directly addresses the need to handle complex model data. Novorender's patented technology can process and combine models at 25x the speed of current industry standards. Before the acquisition, Novorender was already integrated with over 50 systems and data formats, including ArcGIS, Autodesk BIM360/ACC, IFS, and SAP. This acquisition is designed to deliver the most performant model-based construction management platform, especially important as BIM mandates rise across Europe.

The integration of Novorender and FlyPaper's tools supercharges Procore's ability to offer automated 3D design coordination and clash detection, moving construction management beyond 2D limitations.

Finance: draft 13-week cash view by Friday.

Procore Technologies, Inc. (PCOR) - Canvas Business Model: Key Activities

You're looking at the core engine driving Procore Technologies, Inc.'s value in late 2025. The Key Activities section of the Business Model Canvas is all about the doing-what Procore must execute exceptionally well to deliver its value proposition.

Core platform software development and maintenance

This is the foundation, the continuous engineering effort to keep the unified platform robust and scalable. Procore Technologies, Inc. is clearly prioritizing investment here, as evidenced by its financial commitment to R&D. For the twelve months ending September 30, 2025, research and development expenses totaled $0.354B, representing an 18.62% increase year-over-year. This spend fuels the core platform that supports over three million projects across 150+ countries. The platform's stickiness is reflected in its strong customer loyalty metrics.

Here are some key operational metrics supporting the platform's health as of September 30, 2025:

• Gross Revenue Retention rate achieved was 95% in the third quarter.
• Total organic customers reached 17,623.
• The volume of construction work managed on the platform surpassed $1 trillion in annual contracted volume.

Driving AI innovation with Procore Helix and Agent Builder

Procore Technologies, Inc. is embedding intelligence directly into the platform via its Procore Helix intelligence layer, aiming to solve the industry-wide problem where 55% of construction leaders report losing 18% of project time searching for data. The key activity here is the rapid development and deployment of these AI tools. Procore Agent Builder entered Open Beta, allowing customers to create custom AI agents using natural language prompts without needing coding experience. This is a significant shift toward democratizing automation for the field teams.

The development focus includes enhancing Procore Assist, the conversational AI assistant, with new capabilities:

• Photo intelligence for summarizing progress and safety insights from jobsite photos.
• Multilingual support, enabling Spanish and Polish speakers to query data in their native language.
• Mobile support for search, reporting, and voice capabilities directly on mobile devices.
• Pre-built agents like the RFI Creation Agent, designed to reduce information retrieval time from days to seconds.

Executing the go-to-market transition for sales efficiency

Management commentary points to a successful execution of the go-to-market model, which is yielding positive returns and driving customer acquisition efficiency. This activity focuses on optimizing how Procore Technologies, Inc. sells and expands its footprint, particularly within larger accounts. The results show this focus is working, as the company is seeing strong growth in its most valuable customer segment.

The focus on larger, more committed customers is clear when you look at the high-value segment growth:

Metric	As of September 30, 2025	Year-over-Year Growth
Customers contributing >$100k ARR	2,602	15%
Net New Organic Customers (Q3 2025)	122	N/A
Non-GAAP Operating Margin (Q3 2025)	17%	Improvement from Q3 2024

Strategic acquisitions to expand platform capabilities (e.g., BIM)

Procore Technologies, Inc. actively acquires companies to immediately integrate specialized technology and secure market leadership in adjacent, high-value areas like Building Information Modeling (BIM). In May 2025, the company executed a double acquisition, bringing Novorender and FlyPaper Technologies into the fold. This activity is about supercharging the platform's ability to handle complex data visualization and coordination, which is increasingly mandated in large global projects.

The integration of Novorender specifically targets speed and model handling:

• Novorender's patented BIM technology can process and combine models at 25 times the speed of current construction industry standards.
• FlyPaper Technologies brings advanced algorithms for AI-Model Detection and streamlined 3D design coordination/clash detection.

Global sales and customer success management

This activity is about maintaining high customer satisfaction and driving expansion revenue from the existing base, which is a hallmark of a strong SaaS model. The gross revenue retention rate of 95% in Q3 2025 is a direct result of effective customer success management. This high retention, combined with upselling, fuels the overall revenue performance. The company is projecting full-year 2025 revenue in the range of $1,312 million to $1,314 million, representing 14% year-over-year growth.

The financial health derived from these activities shows strong operational leverage:

• Q3 2025 Non-GAAP Gross Margin was 84%.
• Q3 2025 Operating Cash Inflow was $88 million.
• Q3 2025 Free Cash Inflow was $68 million, a 194% increase year-over-year.

Finance: draft 13-week cash view by Friday.

Procore Technologies, Inc. (PCOR) - Canvas Business Model: Key Resources

You're looking at the core assets Procore Technologies, Inc. relies on to keep its market position solid as of late 2025. These aren't just abstract concepts; they are hard numbers backing up their platform's value.

Connected global construction platform (single source of truth)

The platform itself is the primary resource. It's built to handle massive scale, supporting over three million projects that have run across more than 150+ countries. This global reach and project volume feed directly into the data advantage.

Proprietary construction project data for AI/analytics

The sheer volume of data flowing through the platform is a massive resource, especially as Procore Technologies, Inc. pushes its AI strategy. The company announced new AI innovations at Groundbreak 2025, like expanded features for Procore Assist and the Open Beta release for Procore Agent Builder. Plus, they solidified a Strategic Collaboration Agreement with AWS specifically to accelerate this AI product innovation.

Large, sticky customer base with 95% gross revenue retention

Customer stickiness is evident in the retention figures. For the third quarter of 2025, Procore Technologies, Inc. achieved a 95% gross revenue retention rate. That number tells you customers aren't just staying; they're finding enough value to keep paying even if they scale down slightly or don't expand their spend. Honestly, that's the kind of metric that keeps portfolio managers happy.

Here's the quick math on the high-value customer segment as of September 30, 2025:

Metric	Value (Q3 2025)
Total Organic Customers	17,623
Organic Customers with >$100k ARR	2,602
YoY Growth in >$100k ARR Customers	15%
Q3 2025 Revenue	$339 million

What this estimate hides is the total Annual Recurring Revenue (ARR), which was reported at $1.42 billion in Q3 2025, beating estimates by 8%.

Intellectual property related to construction workflows and AI

The IP is embedded in the platform's specialized workflows, which are constantly being enhanced. The focus on AI tools like Procore Agent Builder suggests a growing moat built on proprietary algorithms trained on construction-specific data sets. The non-GAAP gross margin for Q3 2025 held strong at 84%, which helps fund the R&D required to build and protect this IP.

Global cloud infrastructure to support platform scale

Supporting this scale requires significant infrastructure, which is why the collaboration with AWS is a key resource highlight. The platform is designed to handle the data load from those three million-plus projects. For the full year 2025, Procore Technologies, Inc. is guiding revenue between $1,312 million and $1,314 million, which requires a reliable, scalable cloud backbone to process transactions and deliver real-time data.

Finance: draft 13-week cash view by Friday.

Procore Technologies, Inc. (PCOR) - Canvas Business Model: Value Propositions

Single, connected platform for all project stakeholders

Procore Technologies, Inc. provides a unified technology platform that connects all stakeholders on a project. As of late 2025, over three million projects have run on Procore across more than 150+ countries. The stickiness of this platform is evidenced by the gross revenue retention rate, which held at 95% in the third quarter of 2025. The total number of organic customers contributing more than $100,000 of annual recurring revenue reached 2,602 as of September 30, 2025.

Reducing project risk and eliminating rework (28% of time lost)

The platform directly addresses massive industry inefficiencies. Construction professionals report that 28% of project time is wasted due to rework. Furthermore, the industry globally averages a 20% cost overrun on projects. Procore Technologies, Inc. is built to mitigate this risk through data-driven insights. The full-year 2025 revenue guidance reflects the value captured, projected to be between $1,312 million and $1,314 million.

AI-driven insights and automation for enhanced productivity

Procore Technologies, Inc. embeds its intelligence layer, Procore Helix, to drive productivity gains. One major pain point addressed is the 18% of project time lost searching for data. New AI innovations announced at Groundbreak 2025 include expanded features for Procore Assist, which allows users to find information from specs, RFIs, and building codes in seconds. Field Scheduling, embedded in the platform, uses AI to predict delays by analyzing RFIs, observations, and weather data. Over half of construction leaders, specifically 55%, expect automation to disrupt the industry within the next five years.

Real-time collaboration across the construction lifecycle

The unified platform supports real-time data sharing, which is crucial for design and execution. Procore Technologies, Inc. announced acquisitions in mid-2025 to double down on Building Information Modeling (BIM), which 49% of construction professionals anticipate increased use of for design collaboration and clash detection. The platform now has 17,623 total organic customers as of Q3 2025. The high gross revenue retention rate of 95% in Q3 2025 shows customers are realizing ongoing collaborative value.

Streamlining financial processes and budget management

Procore Technologies, Inc. automates and clarifies financial workflows. Quick-Start Workflows designed to streamline financial processes automatically appeared in the Workflows tool starting April 1, 2025. Enhancements to the Owner Invoice feature now include columns for Gross Amount, Net Amount, along with Previous and Current Changes to improve data visibility. Similarly, the Commitment Invoice feature now includes Gross Amount, Net Amount, and Commitment Value. The non-GAAP gross margin for Q3 2025 was 84%, underpinning the efficiency of the software delivery model.

Value Proposition Area	Key Metric/Data Point	Context/Timeframe
Platform Scale	17,623 organic customers	As of September 30, 2025
Platform Stickiness	95% gross revenue retention rate	Third Quarter 2025
Rework Impact Addressed	28% of project time wasted on rework	Industry statistic
Data Search Inefficiency Addressed	18% of project time lost searching for data	Industry statistic
AI Adoption Expectation	55% of construction leaders expect automation disruption	Within the next five years
Financial Visibility	Owner Invoice includes Gross Amount, Net Amount, and Previous and Current Changes columns	August 2025 update
Financial Efficiency	84% non-GAAP gross margin	Third Quarter 2025

• Procore Assist provides contextually relevant answers on-demand from specs, RFIs, submittals, and building codes in seconds.
• Procore Pay enhancements include Joint Check Management to automate compliance.
• The company is projecting full-year 2025 revenue between $1,312 million and $1,314 million.
• The Debt-to-Equity ratio stood at approximately 0.02 as of late 2025.
• The company added 122 net new organic customers in the third quarter of 2025.

Procore Technologies, Inc. (PCOR) - Canvas Business Model: Customer Relationships

You're looking at how Procore Technologies, Inc. (PCOR) keeps its construction customers locked in and growing with the platform. It's a relationship game built on high-value contracts and continuous platform expansion, which is why the numbers look the way they do.

Focus on a high gross revenue retention rate of 95%

This metric tells you how sticky the platform is. For the third quarter of 2025, Procore Technologies, Inc. achieved a gross revenue retention rate of exactly 95%. That means, even after accounting for churn and downgrades, the revenue retained from the existing customer base was 95% of what it was the prior year for that cohort. This high rate is the bedrock of their financial stability, especially as they focus on larger, more complex projects.

High-touch enterprise sales and account management

The focus on high-value customers is clear when you look at the enterprise segment growth. As of September 30, 2025, the number of organic customers contributing more than $100,000 of annual recurring revenue reached 2,602. That specific segment grew year-over-year by 15%. Overall, Procore Technologies, Inc. ended Q3 2025 with a total of 17,623 organic customers, having added 122 net new organic customers in that quarter alone. This suggests a sales and account management structure geared toward landing and expanding within larger firms, which is consistent with their self-assessment as a premium product.

The platform's reach is global, with over three million projects having run on Procore across more than 150+ countries. The primary customer segments driving this relationship are General Contractors, Specialty Contractors, and Project Owners/Developers.

Dedicated professional services for implementation and training

For customers with more complex needs or specific project requirements, Procore Technologies, Inc. offers professional services. These services can include strategic consulting to optimize platform utilization, custom workflow development, and assistance with data migration. The commitment to customer success, which drives that 95% retention, is supported by these tailored post-sales engagements. If onboarding takes 14+ days, churn risk rises, so efficient deployment is key.

Self-service support via the Procore Community and knowledge base

To support the massive user base of over 17,623 organic customers, Procore Technologies, Inc. maintains resources for self-service. The company points to its Community, the Procore Construction Network, and its various educational resources, including webinars and product updates, as part of its connected global platform. The focus on community engagement is a trend in 2025, with many brands moving toward dedicated platforms to improve self-service and quick issue resolution.

Continuous product innovation and feature releases (e.g., Groundbreak 2025)

Customer relationships are reinforced by continuous platform evolution, often showcased at their annual event. Procore Technologies, Inc. hosted Groundbreak 2025 in Houston, which drew nearly 6,000 attendees. At this event, the company announced significant AI innovations, including expanded features for Procore Assist and the Open Beta release for Procore Agent Builder. These releases focus on turning static project data into dynamic intelligence, with new features like Photo Intelligence and multilingual support (Spanish and Polish).

Here's a quick look at the recent product focus:

• Procore Helix: The intelligence layer powering AI and analytics.
• Procore Agent Builder: Now in Open Beta, for custom AI workflow automation.
• Procore Assist Upgrades: Including Photo Intelligence and mobile access.
• Integrated Scheduling: Released in Open Beta, shifting focus to proactive risk management.

The company is clearly embedding AI directly into day-to-day workflows, which is a strategic inflection point for their customers.

Procore Technologies, Inc. (PCOR) - Canvas Business Model: Channels

You're looking at how Procore Technologies, Inc. gets its software platform in front of construction firms, which is a mix of direct selling, digital reach, and partner enablement. Here's the data on those routes as of late 2025.

Direct sales force targeting large and mid-market construction firms

Procore Technologies, Inc. has been actively scaling its direct sales capacity, transitioning its structure to better support global go-to-market initiatives. The company has been meeting its weekly hiring targets for sales team expansion, which analysts previously estimated could contribute 3% growth from sales force expansions alone.

The focus remains on capturing larger customers, evidenced by key customer metrics:

• Number of organic customers contributing more than $100,000 of Annual Recurring Revenue (ARR) totaled 2,602 as of September 30, 2025.
• This figure represented a 15% year-over-year increase as of the third quarter of 2025.
• In the fourth quarter of 2024, the number of customers contributing more than $1M in ARR increased by 39% year-over-year.
• Total organic customers reached 17,623 as of September 30, 2025.

Procore App Marketplace for third-party software distribution

The Procore App Marketplace acts as a crucial channel by extending platform functionality through integrations. This ecosystem is a gateway to hundreds of solutions that enhance workflows across areas like accounting, BIM, and scheduling. The platform aims to create a fully connected construction ecosystem through these third-party applications.

The value of this channel is seen in the platform's overall stickiness, with a reported gross revenue retention rate of 95% in the third quarter of 2025.

International expansion efforts in key global markets

International growth is a stated priority, with the platform running on projects across 150+ countries. While the core market remains strong, international performance shows distinct growth rates:

Reporting Period	International Revenue Growth (YoY)	Constant Currency Growth (YoY)
Q1 FY2025	18%	20%
Q2 FY2025	13%	16%
Q4 2024	19%	N/A

One analyst estimate suggested that international markets could contribute 4% to Procore Technologies, Inc.'s annual revenue growth.

Digital marketing and industry events (e.g., Groundbreak)

Industry events serve as major touchpoints for customer engagement, partner networking, and product announcements. Procore Technologies, Inc.'s annual conference, Groundbreak, has seen significant scale:

• Groundbreak 2025 wrapped with nearly 6,000 attendees.
• Groundbreak 2024 hosted more than 4,500 attendees from 35 countries.
• The 2025 event featured over 200 speakers and more than 70 breakout sessions.
• The Groundbreak 2025 expo hall included 149 exhibitors.

These events are used to showcase major platform updates, such as the announcements around Procore Assist and the Open Beta release for Procore Agent Builder at Groundbreak 2025.

Referral network from satisfied customers and partners

While specific referral revenue percentages aren't public, customer satisfaction metrics point to strong organic advocacy. The company achieved a gross revenue retention rate of 95% in the third quarter of 2025. This high retention, coupled with the growth in high-value customers, suggests strong product-market fit that fuels word-of-mouth and partner-driven expansion.

Procore Technologies, Inc. (PCOR) - Canvas Business Model: Customer Segments

You're looking at the core of Procore Technologies, Inc.'s revenue engine-who actually pays for the platform. Honestly, the customer base is intentionally broad because construction is a massive, fragmented industry. Procore Technologies, Inc. targets the entire project lifecycle ecosystem, which means they aren't just selling to one type of company; they are selling to everyone who touches a project.

The platform serves a wide spectrum of construction players. This ranges from smaller operations managing just a few million dollars in annual construction volume right up to the global enterprises managing billions. This breadth is key to their platform strategy, aiming for adoption across all stakeholders on a project.

The primary customer segments Procore Technologies, Inc. focuses on are:

• General Contractors (GPs) of all sizes
• Specialty Contractors (Subs) across various trades
• Project Owners and Developers managing capital projects

Procore Technologies, Inc. has successfully penetrated the market across these groups. As of the third quarter of 2025, the total number of organic customers stood at 17,623. This shows consistent growth in the overall user base.

The real financial weight, however, comes from the larger, more deeply embedded clients. These are the customers you want to watch closely for revenue stability. Procore Technologies, Inc. has 2,602 customers over $100k ARR as of September 30, 2025. That specific cohort grew by 15% year-over-year as of that date.

Drilling down into that high-value group, you see the enterprise focus:

Customer Metric	Count (as of Q3 2025)	Context
Customers with >$100k ARR	2,602	Represents significant platform commitment
Customers with >$1M+ ARR	86	Top-tier enterprise clients

These large enterprise clients represent the goal for many firms seeking standardized operations. Global construction firms are a key target here, as the platform helps drive consistency across disparate geographies. While specific numbers for global firms aren't broken out separately, the international footprint is evident: Non-U.S. revenue accounted for 15% of total revenue in 2024, and over 3 million projects have run on Procore across 150+ countries.

The platform's value proposition is designed to capture these different segments by facilitating collaboration between them. For instance, the focus on Project Owners and Developers is crucial because their adoption drives platform use by their General Contractors and Specialty Contractors. If onboarding takes 14+ days, churn risk rises, especially with smaller subs who need quick value.

The composition of the user base, including general contractors, subcontractors, project managers, architects, engineers, and owners, confirms Procore Technologies, Inc.'s strategy to be the central operating system for construction, not just a tool for one role. Finance: draft 13-week cash view by Friday.

Procore Technologies, Inc. (PCOR) - Canvas Business Model: Cost Structure

You're looking at the cost side of Procore Technologies, Inc.'s business as of late 2025. The structure is typical for a high-growth, enterprise Software-as-a-Service (SaaS) company, meaning significant upfront investment in growth outpaces immediate GAAP profitability, even as non-GAAP operating leverage improves.

The most recent detailed operating expense breakdown we have is from the first quarter of 2025, which shows the scale of investment required to maintain platform leadership and acquire customers. For the three months ended March 31, 2025, total operating expenses reached $281.951 million, resulting in a GAAP Loss from Operations of ($36.245 million) on revenue of $310.632 million.

High cost of research and development (R&D) for platform innovation

Procore Technologies, Inc. must continuously invest heavily in R&D to keep its platform ahead, especially with the stated focus on AI innovations like Procore Assist and Agent Builder. This spending fuels the core value proposition-a unified, modern platform for the construction industry.

• R&D expense for the three months ended March 31, 2025, was $87.609 million.
• This represents approximately 28.2% of the Q1 2025 revenue of $310.632 million.
• The company is investing to maintain its position as the clear market leader in a massive, under-penetrated industry.

Significant sales and marketing (S&M) expenses for customer acquisition

Acquiring and expanding the customer base is a major cost driver, though the high Gross Revenue Retention rate of 95% in Q3 2025 suggests strong long-term value from each customer once onboarded. The go-to-market model is clearly resource-intensive.

Here's a look at the S&M spend relative to other operating costs, using the Q1 2025 data as the most granular view:

Expense Category (Q1 2025, in thousands)	Amount	% of Total Operating Expenses
Sales and Marketing (S&M)	$138,684	49.2%
Research and Development (R&D)	$87,609	31.1%
General and Administrative (G&A)	$55,658	19.7%

The S&M spend of $138.684 million for the quarter was the single largest cost component, underscoring the focus on scaling the customer base, which reached 17,623 organic customers by September 30, 2025.

Stock-based compensation (SBC) driving GAAP net losses

Stock-based compensation is a substantial non-cash expense that directly contributes to the GAAP net loss, even as the business generates positive operating cash flow. Management emphasizes non-GAAP metrics to show the underlying operational performance without this accounting charge.

• Total stock-based compensation expense for the three months ended March 31, 2025, was $51.024 million.
• This single expense item was larger than the entire G&A expense for that quarter.
• For Q3 2025, the company reported a GAAP Net Loss of $9.1 million, while simultaneously achieving a positive Operating Cash Inflow of $88 million.

Cloud hosting and infrastructure costs for a global SaaS platform

While Procore Technologies, Inc. does not break out cloud hosting as a separate line item, these costs are embedded within Cost of Revenue, which is the primary component of the GAAP Gross Margin calculation. The platform supports over three million projects across 150+ countries, necessitating significant infrastructure spending.

The GAAP Gross Margin for Q3 2025 was 80%, meaning 20% of revenue was consumed by costs directly related to delivering the service, which includes cloud hosting, data center operations, and customer support personnel costs that are not classified under Operating Expenses.

Personnel costs for professional services and customer support

Personnel costs are the largest driver across all operating expense categories (S&M, R&D, G&A) and also contribute to the Cost of Revenue. The commitment to unrivaled customer support, which is included with every contract, requires a large, dedicated team, which is a key part of the cost structure.

The total operating expense in Q1 2025 was $281.951 million, which is overwhelmingly personnel-driven, covering the teams responsible for:

• Developing new features (R&D).
• Acquiring and supporting new customers (S&M).
• Handling day-to-day operations and compliance (G&A).

For the full year 2025, management guides for a 14% non-GAAP operating margin, signaling that while costs are high, they are scaling more efficiently than revenue, which is expected to grow by 14% year-over-year.

Procore Technologies, Inc. (PCOR) - Canvas Business Model: Revenue Streams

You're looking at the financial engine of Procore Technologies, Inc. (PCOR), and the story here is overwhelmingly about recurring revenue, which is what software-as-a-service (SaaS) investors love to see. The primary revenue stream is definitely the subscription-based SaaS fees you charge for platform access and use. This creates that predictable, high-retention income base we track so closely.

For the full fiscal year 2025, Procore Technologies, Inc. is guiding total revenue in the range of $1.312 billion to $1.314 billion. That guidance, raised after Q3 2025 results, represents a solid year-over-year growth rate of 14% over the prior year's actual revenue. To give you a snapshot of the current run rate, Q3 2025 revenue itself hit $339 million, showing consistent execution even as the company focuses on operational leverage.

Expansion revenue is the next big lever, coming from cross-selling additional product modules to the existing customer base. This is where the land-and-expand strategy really pays off. Honestly, the numbers show this is working well; for instance, approximately 83% of the Q1 2025 revenue growth stemmed from existing customers expanding their use of the platform. The average Procore customer buys 3-4 products, and enterprise customers often utilize 5-6 modules, which is a testament to the platform's stickiness and the success of that cross-sell motion.

The quality of that expansion is visible in the growth of your largest customers. Revenue derived from larger deals, specifically those in the 6- and 7-figure Annual Recurring Revenue (ARR) bracket, is reported as growing 21% year-over-year, showing that the biggest construction firms are standardizing on the platform. This is supported by the fact that the number of organic customers contributing over $100,000 in ARR reached 2,602 as of September 30, 2025, marking a 15% increase year-over-year.

Finally, you must account for professional services and implementation fees. While subscription revenue is the core, these fees cover the initial setup, training, and configuration required to get large, complex construction projects onto the platform efficiently. The high non-GAAP gross margin of 84% reported in Q3 2025 suggests that the bulk of the revenue is high-margin software, but these services are a necessary component of the overall customer acquisition and onboarding cost structure.

Here's a quick look at the key metrics underpinning this revenue structure as of late 2025:

Metric	Value/Amount	Period/Context
Full Year 2025 Revenue Guidance (Midpoint)	$1.313 billion	Full Year 2025 Outlook
Q3 2025 Revenue	$339 million	Q3 Ended September 30, 2025
Gross Revenue Retention (GRR)	95%	Q3 2025
Customers with > $100k ARR	2,602	As of September 30, 2025
6- and 7-Figure Deal YoY Growth	21%	As specified for this analysis

You can see the health of the installed base through these expansion indicators:

• Gross Revenue Retention rate was 95% in Q3 2025.
• Total organic customers ended Q3 2025 at 17,623.
• The total Annual Recurring Revenue (ARR) base was reported at $1.42 billion in Q3 2025.
• Non-GAAP Gross Margin for Q3 2025 was 84%.