Slides
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Investor Presentation THIRD QUARTER | FISCAL 2026 EARNINGS
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Safe Harbor This presentation contains forward-looking statements about Procore Technologies, Inc. (“Procore”), which include, but are not limited to, statements about Procoreʼs financial and operating results and guidance (including, but are not limited to, expected GAAP and non-GAAP financial and other operating results), and Procoreʼs plans, objectives, goals, strategies, future revenues, financial position, and capital expenditures. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” or the negative of these words. All statements in this presentation, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Procore has based the forward-looking statements contained in this presentation primarily on its current expectations and projections about future events and trends that Procore believes may affect its business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors that could cause results to differ materially from Procoreʼs current expectations. Such factors include, but are not limited to, Procoreʼs expectations regarding its financial performance (including revenues, expenses, and margins, and its ability to achieve or maintain future profitability), Procoreʼs ability to effectively manage its growth and challenges in its business and in the markets in which Procore operates or anticipates entering into, economic and industry trends (in particular, the rate of adoption of construction management software and digitization of the construction industry, inflation, interest rates, tariffs, and challenging geopolitical or macroeconomic conditions), Procoreʼs ability to successfully identify and complete acquisitions, joint ventures, or investments (including its ability to successfully integrate and realize the expected benefits of the foregoing, as applicable), Procoreʼs ability to realize the expected benefits of its go-to-market model, Procoreʼs ability to attract new customers and retain and increase sales to existing customers, Procoreʼs ability to expand internationally, the effects of increased competition in Procoreʼs markets and Procoreʼs ability to compete effectively, Procoreʼs estimated total addressable market, Procoreʼs ability to execute, and realize benefits from, its stock repurchase program, Procoreʼs ability to develop and integrate new products, platform capabilities, services, and features in an efficient and timely manner and to get its customers and prospective customers to adopt such new products, platform capabilities, services, and features, the impact of litigation or other disputes on Procoreʼs business, risks associated with Procoreʼs acquisition of DroneDeploy and transactions in connection therewith, Procoreʼs failure to successfully integrate DroneDeploy into its business or realize the anticipated benefits from the acquisition on the anticipated timing or at all, costs related to the transactions, diversion of management attention from ongoing business operations, Procore's ability to manage its debt, and other factors as set forth in Procoreʼs filings with the Securities and Exchange Commission, including in the section titled “Risk Factors” in Procoreʼs Quarterly Report on Form 10-Q for the year ended June 30, 2026, filed on July 31, 2026. You should not rely on Procoreʼs forward-looking statements. Procore assumes no obligation to update any forward-looking statements to reflect events or circumstances that exist or change after the date on which they were made, except as required by law. Non-GAAP Financial Measures This presentation includes non-GAAP financial measures, which are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Refer to the Appendix to this presentation for additional information regarding the non-GAAP financial measures used in this presentation and a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.
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Q3 FY26 Highlights $402M Q3 Revenue +19% YoY (2%) GAAP Operating Margin +270 bps YoY 23% Non-GAAP Operating Margin +620 bps YoY $96M Operating Cash Flow +8% YoY 152M Non-GAAP Diluted Shares Outstanding -1% YoY 2,968 $100k+ ARR Customers +14% YoY $73M Free Cash Flow +8% YoY 95% Gross Revenue Retention +0 bps YoY Note: All data as of September 30, 2026. Free cash flow is a non-GAAP metric. Refer to the appendix for definitions of free cash flow, annual recurring revenue (ARR), and gross revenue retention, and for a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Refer to the Revenue Growth and Guidance Bridges slide for more information about the impact of our recent DroneDeploy acquisition on our Q3'26 revenue. 150M GAAP Basic Shares Outstanding +0% YoY
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Revenue International Constant Currency YoY % Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 15% 15% 15% 19% 26% In Millions, except percentages
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$100K + ARR Customers ARR Composition Stakeholder ARR Mix Note: Stakeholder ARR mix excludes customers acquired from business combinations that do not have standard Procore annual contracts.
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Remaining Performance Obligations Deferred Revenue Revenue Backlog Note: Reported cRPO continues to benefit from longer average contract duration, which increased in Q3'26. However, as our average contract duration continues to lengthen due to increased purchases of multi-year subscriptions, our cRPO growth rate may not directly correlate with our actual or expected revenue growth in current or future periods. As of September 30, 2026, cRPO increased by $263.0 million, or 29%, year-over-year. Approximately 39% of the increase was attributable to existing customers, 40% was attributable to new customers, and 21% was attributable to DroneDeploy customers acquired during the twelve months ended September 30, 2026. We expect RPO to change from period to period primarily due to the size, timing, and duration of new customer contracts and customer renewals.
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Gross Retention Rate Net Retention Rate Retention Rates Note: Refer to the Appendix for definitions of gross retention rate and net retention rate.
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● Operating Margins ● Two lines on the graph ○ NG Op Margins ○ GAAP Op Margins ● Gross Margins ● Two lines on the graph ○ NG Gross Margins ○ GAAP Gross Margins Gross Margins Operating Margins Margins
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Operating Cash Flow Free Cash Flow Cash Flow
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Diluted Weighted Shares Outstanding (QTD) SBC as % of Revenue 7.64 Shares in Millions $’s in Millions Share Count & Stock Based Compensation Note: Our Q4ʼ25 SBC was impacted by a one-time charge of unvested equity related to our former CEO, who transitioned to the role of Chairman of the Board of Directors in November 2025. This charge only impacted the P&L, and was not an acceleration of equity compensation payout. Excluding this one time charge, SBC would have been 17% of revenue. When we are in a GAAP net loss position, diluted weighted shares outstanding is a non-GAAP metric. Refer to the appendix for a reconciliation of non-GAAP measures to the most directly comparable GAAP measures.
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Guidance Summary Total Revenue Revenue Growth % Non-GAAP Operating Margin % Q4‘26 FY'26 FCF Margin % $420M - $422M 20.3% to 20.9% YoY $1,557M - $1,559 17.7% to 17.9% YoY 15.5% - 16.0% 19.0% - 19.5% 18.0%*N/A *Includes approximately $23 million in one-time cash payments related to our acquisition of DroneDeploy. Excluding these one-time cash payments, free cash flow margin is expected to be 19.5%. Note: A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Procore's future GAAP financial results. Reiterating FY27 Non-GAAP Operating Margin % guidance of 25%
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Revenue Growth and Guidance Bridges Q3'26 Revenue Bridge FY26 Revenue Guidance Bridge $s in Millions $s in Millions Note: A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Procore's future GAAP financial results.
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Appendix
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Non-GAAP Reconciliation In addition to Procoreʼs GAAP results, Procore believes certain non-GAAP measures are useful in evaluating Procoreʼs operating performance. Procore uses this non-GAAP financial information, collectively, to evaluate its ongoing operations as well as for internal planning and forecasting purposes. Procore believes that non-GAAP financial information, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, and may assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. However, non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in Procore's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on Procore's reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included on the following sides, and not rely on any single financial measure to evaluate Procore's business. A reconciliation of non- GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Procoreʼs future GAAP financial results. Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Income from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income: Procore defines these non-GAAP financial measures as the respective GAAP measures, excluding stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax related to employee stock transactions, acquisition-related expenses, and impacts of income tax effects on non-GAAP net income and non-GAAP net income per share. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenue. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP income from operations by total revenue. Stock-based compensation expense includes the net effects of capitalization and amortization of stock-based compensation expense related to capitalized software and cloud-computing arrangement implementation costs. Stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in Procoreʼs business and an important part of the compensation provided to its employees. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a companyʼs non-cash expenses, Procore believes that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is a non-cash expense and is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, Procore believes non-GAAP measures that adjust for the amortization of acquired intangible assets provide investors a consistent basis for comparison across accounting periods. The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Procoreʼs control and that do not correlate to the operation of the business. When evaluating the performance of its business and making operating plans, Procore does not consider these items (for example, when considering the impact of equity award grants, it places a greater emphasis on overall stockholder dilution than the accounting charges associated with such grants). Since the amount of employer payroll tax-related items on employee stock transactions is highly variable due to factors outside Procoreʼs control, and unrelated to its core operations, operating results, revenue-generating activities, business strategy, industry, or regulatory environment, management does not consider employer payroll tax on employee stock transactions in the evaluation of the business or in making operating plans. Accordingly, Procore believes this adjustment in arriving at our non-GAAP measures provides investors with a better understanding of the performance of its core business in a manner that is consistent with managementʼs view of the business. Unlike stock-based compensation expense, employer payroll tax related to employee stock transactions is a cash expense that we will continue to incur in the future. Acquisition-related expenses include external and incremental transaction costs, such as legal and due diligence costs and retention or other compensation payments. These expenses are unpredictable and generally would not have otherwise been incurred in the periods presented as part of Procoreʼs continuing operations. In addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition-related expenses, may not be indicative of such future costs. Procore believes that excluding acquisition-related expenses facilitates the comparison of its financial results to its historical operating results and to other companies in its industry. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Procore's own operating results over different periods of time.
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Definitions CUSTOMER COUNT Customer count excludes customers acquired from business combinations that do not have standard Procore annual contracts. FREE CASH FLOW (FCF) Procore defines free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized software development costs. Procore believes free cash flow is an important liquidity measure of the cash (if any) that is available, after our operating activities and capital expenditures. Procore uses free cash flow in conjunction with traditional GAAP measures to assess its liquidity and evaluate the effectiveness of its business strategies. Once Procoreʼs business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth, and execute our stock repurchase program. GROSS REVENUE RETENTION RATE, ANNUAL RECURRING REVENUE, AND CURRENT AND NON-CURRENT REMAINING PERFORMANCE OBLIGATION For information on how we calculate these metrics, refer to our most recent Quarterly Report on Form 10-Q. NET RETENTION RATE For information on how we calculate this metric, refer to our most recent Annual Report on Form 10-K.
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GAAP to Non-GAAP Reconciliation FY'23 FY'24 FY'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 (dollars in thousands) Revenue $ 950,010 $ 1,151,708 $ 1,322,509 $ 338,841 $ 349,107 $ 359,283 $ 375,207 $ 402,313 Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin: GAAP gross profit $ 775,548 $ 946,096 $ 1,051,677 $ 270,089 $ 279,695 $ 287,790 $ 299,796 $ 323,618 Stock-based compensation expense 11,491 15,478 23,489 6,155 6,198 5,942 6,196 6,207 Amortization of acquired technology intangible assets 22,396 25,437 29,820 7,659 6,544 7,708 8,311 9,466 Employer payroll tax on employee stock transactions 540 612 804 181 162 174 129 140 Acquisition-related expenses — — — — — — — 307 Non-GAAP gross profit $ 809,975 $ 987,623 $ 1,105,790 $ 284,084 $ 292,599 $ 301,614 $ 314,432 $ 339,738 GAAP gross margin 82% 82% 80% 80% 80% 80% 80% 80% Non-GAAP gross margin 85% 86% 84% 84% 84% 84% 84% 84% Note: Fiscal year ends on December 31 of each respective year. Numbers may not foot due to rounding.
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GAAP to Non-GAAP Reconciliation (Cont.) FY'23 FY'24 FY'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 (dollars in thousands) Revenue $ 950,010 $ 1,151,708 $ 1,322,509 $ 338,841 $ 349,107 $ 359,283 $ 375,207 $ 402,313 Reconciliation of operating expenses to non-GAAP operating expenses: GAAP sales and marketing $ 494,908 $ 552,019 $ 580,680 $ 144,290 $ 155,809 $ 149,181 $ 145,785 $ 149,971 Stock-based compensation expense (55,162) (58,058) (74,274) (16,658) (25,077) (20,588) (18,160) (18,672) Amortization of acquired technology intangible assets (12,425) (12,700) (11,727) (3,346) (1,729) (1,121) (905) (1,577) Employer payroll tax on employee stock transactions (2,766) (3,227) (3,099) (560) (660) (752) (572) (558) Acquisition-related expenses (2,483) (1,448) (1,077) (139) (144) (154) (166) (4,050) Non-GAAP sales and marketing $ 422,072 $ 476,586 $ 490,503 $ 123,587 $ 128,199 $ 126,566 $ 125,982 $ 125,114 GAAP sales and marketing as a percentage of revenue 52% 48% 44% 43% 45% 42% 39% 37% Non-GAAP sales and marketing as a percentage of revenue 44% 41% 37% 36% 37% 35% 34% 31% GAAP research and development $ 300,571 $ 312,987 $ 362,373 $ 88,049 $ 97,813 $ 85,565 $ 93,349 $ 108,481 Stock-based compensation expense (68,275) (67,961) (89,606) (20,969) (28,976) (18,555) (21,994) (23,624) Amortization of acquired technology intangible assets (2,757) (2,657) (2,603) (661) (652) (663) (221) — Employer payroll tax on employee stock transactions (3,217) (3,535) (3,990) (629) (532) (1,050) (687) (668) Acquisition-related expenses (6,370) (32) (3,134) (695) (695) (2,586) (3,001) (9,416) Non-GAAP research and development $ 219,952 $ 238,802 $ 263,040 $ 65,095 $ 66,958 $ 62,711 $ 67,446 $ 74,773 GAAP research and development as a percentage of revenue 32% 27% 27% 26% 28% 24% 25% 27% Non-GAAP research and development as a percentage of revenue 23% 21% 20% 19% 19% 17% 18% 19% GAAP general and administrative $ 195,746 $ 217,513 $ 232,967 $ 52,780 $ 68,874 $ 68,715 $ 56,335 $ 72,348 Stock-based compensation expense (44,406) (53,336) (62,962) (15,491) (21,371) (15,402) (14,212) (13,822) Employer payroll tax on employee stock transactions (1,910) (2,086) (1,999) (294) (360) (502) (315) (324) Acquisition-related expenses (35) (808) (2,366) (238) (1,587) (1,245) (1,298) (12,788) Non-GAAP general and administrative $ 149,395 $ 161,283 $ 165,640 $ 36,757 $ 45,556 $ 51,566 $ 40,510 $ 45,414 GAAP general and administrative as a percentage of revenue 21% 19% 18% 16% 20% 19% 15% 18% Non-GAAP general and administrative as a percentage of revenue 16% 14% 13% 11% 13% 14% 11% 11% Note: Fiscal year ends on December 31 of each respective year. Numbers may not foot due to rounding.
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GAAP to Non-GAAP Reconciliation (Cont.) FY'23 FY'24 FY'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 (dollars in thousands) Revenue $ 950,010 $ 1,151,708 $ 1,322,509 $ 338,841 $ 349,107 $ 359,283 $ 375,207 $ 402,313 Reconciliation of income (loss) from operations and operating margin to non-GAAP income from operations and non-GAAP operating margin: GAAP income (loss) from operations $ (215,677) $ (136,423) $ (124,343) $ (15,030) $ (42,801) $ (15,671) $ 4,327 $ (7,182) Stock-based compensation expense 179,334 194,833 250,331 59,273 81,622 60,487 60,562 62,325 Amortization of acquired technology intangible assets 37,578 40,794 44,150 11,666 8,925 9,492 9,437 11,043 Employer payroll tax on employee stock transactions 8,433 9,460 9,892 1,664 1,714 2,478 1,703 1,690 Acquisition-related expenses 8,888 2,288 6,577 1,072 2,426 3,985 4,465 26,561 Non-GAAP income from operations $ 18,556 $ 110,952 $ 186,607 $ 58,645 $ 51,886 $ 60,771 $ 80,494 $ 94,437 GAAP operating margin (23%) (12%) (9%) (4%) (12%) (4%) 1% (2%) Non-GAAP operating margin 2% 10% 14% 17% 15% 17% 21% 23% Note: Fiscal year ends on December 31 of each respective year. Numbers may not foot due to rounding.
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GAAP to Non-GAAP Reconciliation (Cont.) Note: Fiscal year ends on December 31 of each respective year. Numbers may not foot due to rounding. FY'23 FY'24 FY'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 (dollars in thousands, except share and per share amounts) Revenue $ 950,010 $ 1,151,708 $ 1,322,509 $ 338,841 $ 349,107 $ 359,283 $ 375,207 $ 402,313 Reconciliation of net income (loss) and net income (loss) per share to non-GAAP net income and non-GAAP net income per share: GAAP net income (loss) $ (189,694) $ (105,956) $ (100,783) $ (9,101) $ (37,604) $ (9,096) $ 16,922 $ (4,589) Stock-based compensation expense 179,334 194,833 250,331 59,273 81,622 60,487 60,562 62,325 Amortization of acquired technology intangible assets 37,578 40,794 44,150 11,666 8,925 9,492 9,437 11,043 Employer payroll tax on employee stock transactions 8,433 9,460 9,892 1,664 1,714 2,478 1,703 1,690 Acquisition-related expenses 8,888 2,288 6,577 1,072 2,426 3,985 4,465 26,561 Provision for income taxes — — — — — (15,628) (20,939) (19,665) Non-GAAP net income $ 44,539 $ 141,419 $ 210,167 $ 64,574 $ 57,083 $ 51,718 $ 72,150 $ 77,365 Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic 141,961,467 147,444,772 150,247,067 150,278,399 151,043,395 150,950,902 151,355,834 150,382,584 Effect of dilutive securities 6,591,783 5,004,643 4,503,351 3,277,157 3,265,524 1,890,686 1,437,656 1,302,419 Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted 148,553,250 152,449,415 154,750,418 153,555,556 154,308,919 152,841,588 152,793,490 151,685,003 GAAP net income (loss) per share, basic $ (1.34) $ (0.72) $ (0.67) $ (0.06) $ (0.25) $ (0.06) $ 0.11 $ (0.03) GAAP net income (loss) per share, diluted $ (1.34) $ (0.72) $ (0.67) $ (0.06) $ (0.25) $ (0.06) $ 0.11 $ (0.03) Non-GAAP net income per share, basic $ 0.31 $ 0.96 $ 1.40 $ 0.43 $ 0.38 $ 0.34 $ 0.48 $ 0.51 Non-GAAP net income per share, diluted $ 0.30 $ 0.93 $ 1.36 $ 0.42 $ 0.37 $ 0.34 $ 0.47 $ 0.51
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Free Cash Flow Bridge Note: Fiscal year ends on December 31 of each respective year. Numbers may not foot due to rounding. FY'23 FY'24 FY'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 (dollars in thousands) Revenue $ 950,010 $ 1,151,708 $ 1,322,509 $ 338,841 $ 349,107 $ 359,283 $ 375,207 $ 402,313 Computation of free cash flow and free cash flow margin: Net cash provided by operating activities 92,015 196,172 300,270 88,472 114,942 76,756 88,055 95,693 Purchases of property and equipment (10,325) (19,143) (18,100) (5,392) (5,700) (2,926) (7,017) (4,147) Capitalized software development costs (34,685) (49,529) (65,663) (15,343) (17,763) (17,788) (16,511) (18,551) Non-GAAP free cash flow $ 47,005 $ 127,500 $ 216,507 $ 67,737 $ 91,479 $ 56,042 $ 64,527 $ 72,995 Non-GAAP free cash flow margin 5% 11% 16% 20% 26% 16% 17% 18%