Earnings release
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Exhibit 99.1 Procore Announces Third Quarter 2026 Financial Results CARPINTERIA, CA – November 3, 2026 – Procore Technologies, Inc. (NYSE: PCOR), the leading global provider of construction management software, today announced financial results for the third quarter ended September 30, 2026. “Q3 was another outstanding quarter, with revenue and margins above the high end of our guidance,” said Ajei Gopal, President and CEO of Procore. “We delivered new capabilities across our flagship products and made Procore AI’s digital coworkers generally available. We are well on our way to becoming a next-generation, AI-native construction management platform and a true system of intelligence for construction.” “Our Q3 performance reflects continued excellent execution across our core business, with revenue up 19%, including 2 percentage points from DroneDeploy,” said Rachel Pyles, CFO of Procore. “Driven by that underlying momentum, we are raising our full-year revenue and margin outlook, reinforcing our commitment to durable, profitable growth and compounding free cash flow per share.” Third Quarter 2026 Financial Highlights: • Revenue was $402 million, an increase of 19% year-over-year. • GAAP gross margin was 80% and non-GAAP gross margin was 84%. • GAAP operating margin was (2%) and non-GAAP operating margin was 23%. • Operating cash inflow for the third quarter was $96 million, an increase of 8% year-over-year. • Free cash inflow for the third quarter was $73 million, an increase of 8% year-over-year. • Basic and diluted WASO used for GAAP net loss per share was 150,382,584, relatively flat year-over-year. Diluted WASO used for non-GAAP earnings per share was 151,685,003, a change of (1%) year-over-year. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” Recent Business Highlights: • Achieved a gross revenue retention rate of 95% in the third quarter. • Number of organic customers contributing more than $100,000 of annual recurring revenue totaled 2,968 as of September 30, 2026, an increase of 14% year-over-year. • Acquired DroneDeploy and its 3D ground/aerial reality capture technology to expand Procore's visual intelligence and AI capabilities. • Introduced Asset Register to continuously capture asset data and streamline contractor-to-owner project handovers. • Launched Ground Pro via DroneDeploy to help turn everyday mobile site captures into actionable, measurable 3D records. • Hosted Groundbreak 2026 and announced a new voice-first mobile experience, Procore AI Go, and strategic collaborations with NVIDIA and IBM, among other platform innovations.
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Fourth Quarter, Full Year, and FY’27 Outlook: Procore is providing the following guidance for the fourth quarter 2026, the full year 2026, and the full year 2027: • Fourth Quarter 2026 Outlook: ◦ Revenue is expected to be in the range of $420 million to $422 million, including inorganic revenue from DroneDeploy of $19 million, representing year-over-year growth of 20.3% to 20.9%. ◦ Non-GAAP operating margin is expected to be in the range of 15.5% to 16.0%. • Full Year 2026 Outlook: ◦ Revenue is expected to be in the range of $1,557.0 million to $1,559.0 million, including inorganic revenue from DroneDeploy of $24 million, representing year-over-year growth of 17.7% to 17.9%. ◦ Non-GAAP operating margin is expected to be in the range of 19.0% to 19.5%. ◦ Free cash flow margin is expected to be 18.0%, including 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%. • Full Year 2027 Outlook: ◦ Non-GAAP operating margin is expected to be 25%. 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. Stock Repurchase Program On November 3, 2025, Procore’s Board of Directors authorized a stock repurchase program to repurchase up to $300 million of Procore’s outstanding common stock. That program expired on November 3, 2026. On October 30, 2026, the Board of Directors authorized a new stock repurchase program to repurchase up to $300 million of Procore's outstanding common stock. As was the case with the previous stock repurchase program, Procore intends to opportunistically repurchase shares based on market conditions through the open market (including via pre-set trading plans) or other transactions in accordance with applicable law. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities. The new program does not obligate Procore to acquire any particular amount of common stock, or any common stock at all, and may be suspended or discontinued at any time at Procore’s discretion. The program will be funded using Procore’s working capital and will expire on October 30, 2027. Quarterly Conference Call Procore Technologies, Inc. will hold a conference call to discuss its third quarter results at 8:30 a.m., Eastern Time, on Wednesday, November 4, 2026. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Procore and its industry, including our outlook for the fourth quarter 2026, the full fiscal year 2026, and the full fiscal year 2027, our expectations regarding the performance of our business and product offerings, and our ability to drive durable, profitable growth, that involve substantial risks and uncertainties. All statements in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events, future financial or operating performance, or new, planned, or upgraded products, services, or features, and 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, or other similar terms or expressions that concern Procore’s expectations, strategy, plans, or intentions.
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Procore has based the forward-looking statements contained in this press release 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 Procore’s current expectations. Such factors include, but are not limited to, our expectations regarding our financial performance (including revenues, expenses, and margins, and our ability to achieve or maintain future profitability), our ability to effectively manage our growth, and challenges in our business and in the markets in which we operate or anticipate 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), our ability to successfully identify and complete acquisitions, joint ventures, or investments (including our ability to successfully integrate and realize the expected benefits of the foregoing, as applicable), our ability to realize the expected benefits of our go-to-market model, our ability to attract new customers and retain and increase sales to existing customers, our ability to expand internationally, the effects of increased competition in our markets and our ability to compete effectively, our estimated total addressable market, our ability to execute, and realize benefits from, our stock repurchase program, our ability to develop and integrate new products, platform capabilities, services, and features in an efficient and timely manner and get our customers and prospective customers to adopt such new products, platform capabilities, services, and features, our ability to successfully incorporate AI into our products, services, and platform, and deploy AI in our business operations, our ability to manage our debt, the impact of litigation or other disputes on our business, and other factors as set forth in Procore’s filings with the Securities and Exchange Commission, including in the section titled “Risk Factors” in Procore’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed on July 31, 2026. You should not rely on Procore’s 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 In addition to Procore’s results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Procore believes certain non-GAAP measures, as described below, are useful in evaluating Procore’s 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. These non-GAAP financial measures are not prepared in accordance with GAAP, and are presented for supplemental purposes only. 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, and Non-GAAP Net Income per Share: 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. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Non- GAAP diluted earnings per share is computed by giving effect to all potential weighted average dilutive common stock equivalents outstanding for the period, including options to purchase common stock, restricted stock units, and shares to be issued pursuant to the employee stock purchase plan. The dilutive effect of outstanding awards is reflected in non-GAAP diluted earnings per share by application of the treasury stock method. 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 Procore's 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 company’s 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
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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 Procore’s 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, we place 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 Procore's control, and unrelated to Procore’s 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 these non-GAAP measures provides investors with a better understanding of the performance of its core business in a manner that is consistent with management’s view of the business. 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 Procore's 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. In the first quarter of FY26, Procore began utilizing a non-GAAP annual effective tax rate for the computation of non-GAAP income tax effects to provide better consistency across interim reporting periods. In projecting the non-GAAP tax rate, we utilize a financial projection that excludes the impact of other non-GAAP adjustments, including the current tax structure, Procore's existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. We periodically re- evaluate the non-GAAP effective tax rate, as necessary, for significant events based on relevant tax law changes and material changes in Procore's geographic profile. When evaluating the transition to using a non-GAAP annual effective tax rate, Procore considered financial projections paired with the three-year history of positive non-GAAP net income results. Procore believes that it is useful to utilize a non-GAAP annual effective rate prospectively in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. 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. 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. 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. 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 below, and not rely on any single financial measure to evaluate Procore's business. Free Cash Flow: 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 Procore’s 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.
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Other Metrics Customer Count: The aforementioned customer count excludes customers acquired from business combinations that do not have standard Procore annual contracts. Gross Revenue Retention Rate and Annual Recurring Revenue: For information on how we calculate gross revenue retention rate and annual recurring revenue, refer to Procore's most recent Quarterly Report on Form 10-Q. About Procore Procore Technologies, Inc. (NYSE: PCOR) is a leading technology partner for every stage of construction. Built for the industry, Procore’s unified technology platform drives efficiency and mitigates risk through AI & data-driven insights and decision making. Over three million projects have run on Procore across 150+ countries. For more information, visit www.procore.com. Media Contact press@procore.com Investor Contact ir@procore.com
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Procore Technologies, Inc. Condensed Consolidated Statements of Operations (unaudited) Three Months Ended September30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands, except share and per share amounts) Revenue $ 402,313 $ 338,851 $ 1,136,803 $ 973,402 Cost of revenue 78,695 68,762 225,599 201,420 Gross profit 323,618 270,089 911,204 771,982 Operating expenses Sales and marketing 149,971 144,290 444,937 424,871 Research and development 108,481 88,049 287,395 264,560 General and administrative 72,348 52,780 197,398 164,093 Total operating expenses 330,800 285,119 929,730 853,524 Loss from operations (7,182) (15,030) (18,526) (81,542) Interest income 7,573 4,826 16,517 15,838 Interest expense (4,962) (276) (5,409) (859) Accretion income, net 391 2,068 2,102 6,542 Other income (expense), net 492 (210) 5,815 2,204 (Loss) income before provision for (benefitfrom) income taxes (3,688) (8,622) 499 (57,817) Provision for (benefit from) income taxes 901 479 (2,738) 5,362 Net (loss) income $ (4,589) $ (9,101) $ 3,237 $ (63,179) Net (loss) income per share attributable tocommon stockholders, basic $ (0.03) $ (0.06) $ 0.02 $ (0.42) Net (loss) income per share attributable tocommon stockholders, diluted $ (0.03) $ (0.06) $ 0.02 $ (0.42) Weighted-average shares used in computingnet (loss) income per share attributable tocommon stockholders, basic 150,382,584 150,278,399 150,894,359 149,978,697 Weighted-average shares used in computingnet (loss) income per share attributable tocommon stockholders, diluted 150,382,584 150,278,399 152,649,473 149,978,697 (1)(2)(3)(4) (1)(2)(3)(4) (1)(2)(3)(4) (1)(3)(4)
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(1) Includes stock-based compensation expense and amortization of capitalized stock-based compensation as follows: Three Months EndedSeptember 30, Nine Months Ended September30, 2026 2025 2026 2025 (in thousands) Cost of revenue $ 6,207 $ 6,155 $ 18,345 $ 17,291 Sales and marketing 18,672 16,658 57,420 49,197 Research and development 23,624 20,969 64,173 60,630 General and administrative 13,822 15,491 43,436 41,591 Total stock-based compensation expense* $ 62,325 $ 59,273 $ 183,374 $ 168,709 *Includes amortization of capitalized stock-based compensation of $3.7 million and $3.1 million, respectively, for the three months ended September 30, 2026 and 2025; and $11.0 million and $8.7 million, respectively, for the nine months ended September 30, 2026 and 2025, which was initially capitalized as capitalized software and cloud-computing arrangement implementation costs. (2) Includes amortization of acquired intangible assets as follows: Three Months EndedSeptember 30, Nine Months Ended September30, 2026 2025 2026 2025 (in thousands) Cost of revenue $ 9,466 $ 7,659 $ 25,486 $ 23,276 Sales and marketing 1,577 3,346 3,603 9,998 Research and development — 661 883 1,951 Total amortization of acquired intangible assets $ 11,043 $ 11,666 $ 29,972 $ 35,225 (3) Includes employer payroll tax on employee stock transactions as follows: Three Months EndedSeptember 30, Nine Months Ended September30, 2026 2025 2026 2025 (in thousands) Cost of revenue $ 140 $ 181 $ 443 $ 642 Sales and marketing 558 560 1,882 2,439 Research and development 668 629 2,405 3,458 General and administrative 324 294 1,141 1,639 Total employer payroll tax on employee stocktransactions $ 1,690 $ 1,664 $ 5,871 $ 8,178
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(4) Includes acquisition-related expenses as follows: Three Months EndedSeptember 30, Nine Months Ended September30, 2026 2025 2026 2025 (in thousands) Cost of revenue $ 307 $ — $ 307 $ — Sales and marketing 4,050 139 4,370 933 Research and development 9,416 695 15,003 2,439 General and administrative 12,788 238 15,331 779 Total acquisition-related expenses $ 26,561 $ 1,072 $ 35,011 $ 4,151
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Procore Technologies, Inc. Condensed Consolidated Balance Sheets (unaudited) September 30,2026 December 31,2025 (in thousands) Assets Current assets Cash and cash equivalents $ 540,017 $ 480,684 Marketable securities, current 73,852 287,802 Accounts receivable, net 260,845 287,805 Contract cost asset, current 65,235 55,384 Prepaid expenses and other current assets 97,629 55,157 Total current assets 1,037,578 1,166,832 Marketable securities, non-current — 42,529 Capitalized software development costs, net 156,320 142,228 Property and equipment, net 52,205 48,624 Right of use assets - finance leases 11 19,619 Right of use assets - operating leases 50,548 36,024 Contract cost asset, non-current 93,582 79,004 Intangible assets, net 389,490 105,364 Goodwill 1,254,948 574,083 Other assets 37,548 24,758 Total assets $ 3,072,230 $ 2,239,065 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 45,387 $ 25,168 Accrued expenses 136,847 130,280 Deferred revenue, current 717,895 687,062 Other current liabilities 83,217 42,047 Total current liabilities 983,346 884,557 Deferred revenue, non-current 3,759 6,041 Finance lease liabilities, non-current — 26,557 Operating lease liabilities, non-current 62,082 45,855 Convertible notes, non-current 927,940 — Other liabilities, non-current 10,261 13,793 Total liabilities 1,987,388 976,803 Stockholders’ equity Common stock 15 15 Additional paid-in capital 2,429,555 2,609,093 Accumulated other comprehensive loss (2,389) (1,270) Accumulated deficit (1,342,339) (1,345,576) Total stockholders’ equity 1,084,842 1,262,262 Total liabilities and stockholders’ equity $ 3,072,230 $ 2,239,065
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Remaining performance obligation: The following table presents our current and non-current remaining performance obligations at the end of each period: September 30, Change 2026 2025 Dollar Percent (dollars in thousands) Remaining performance obligations Current $ 1,174,246 $ 911,220 $ 263,026 29% Non-current 635,467 498,314 137,153 28% Total remaining performance obligations $ 1,809,713 $ 1,409,534 $ 400,179 28%
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Procore Technologies, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Operating activities Net (loss) income $ (4,589) $ (9,101) $ 3,237 $ (63,179) Adjustments to reconcile net (loss) income to net cash provided by operating activities Stock-based compensation 58,593 56,153 172,349 160,023 Depreciation and amortization 33,520 29,196 93,492 83,288 Accretion of discounts on marketable debt securities, net (390) (1,868) (2,102) (6,163) Abandonment of long-lived assets 1,768 413 3,652 2,868 Convertible note interest 673 — 673 — Gain on lease modifications — — (5,775) — Noncash operating lease expense 2,011 1,382 5,486 4,311 Unrealized foreign currency (gain) loss, net (128) 628 3,008 (1,522) Deferred income taxes (2,020) 623 (6,212) 2,191 Provision for (benefit from) credit losses 245 (118) 151 (1,084) (Increase) decrease in fair value of strategic investments (69) 54 (6,659) 237 Changes in operating assets and liabilities, net of effect of asset acquisitions and businesscombinations Accounts receivable (8,354) (12,007) 38,451 42,611 Deferred contract cost assets (8,731) (11,592) (24,430) (31,767) Prepaid expenses and other assets (17,867) (7,263) (24,440) (16,499) Accounts payable 10,027 8,782 18,215 (4,191) Accrued expenses and other liabilities 26,447 18,536 4,667 30,168 Deferred revenue 4,770 12,996 (10,969) (15,313) Operating lease liabilities (213) 1,658 (2,472) (651) Net cash provided by operating activities 95,693 88,472 260,322 185,328 Investing activities Purchases of property and equipment (4,147) (5,392) (14,090) (12,400) Capitalized software development costs (18,551) (15,343) (52,668) (47,900) Purchases of strategic investments (1,349) (739) (1,715) (1,641) Sales of strategic investments 83 — 455 — Purchases of marketable securities — (59,207) — (277,813) Maturities of marketable securities 87,264 63,365 150,375 287,024 Sales of marketable securities — 2,698 106,731 2,698 Business combinations, net of cash acquired (790,460) — (949,356) (41,515) Asset acquisitions, net of cash acquired — — — (3,533) Net cash (used in) provided by investing activities (727,160) (14,618) (760,268) (95,080) Financing activities Proceeds from stock option exercises 2,336 1,172 6,752 8,779 Proceeds from employee stock purchase plan — — 13,007 14,404 Repurchases of common stock (175,000) (25,655) (275,035) (128,815) Proceeds from issuance of convertible notes 950,000 — 950,000 — Payment of capped call transactions (59,090) — (59,090) — Payment of debt issuance costs (22,734) — (22,734) — Payment of tax withholding for net share settlement (18,711) (21,318) (49,224) (71,173) Payment of deferred asset acquisition consideration (300) — (600) — Principal payments under finance lease agreements, net of proceeds from lease incentives (18) (416) (746) (1,216) Net increase in funds held for customers (3,555) 6,251 18,584 6,251 Net cash provided by (used in) financing activities 672,928 (39,966) 580,914 (171,770) Net increase (decrease) in cash and cash equivalents 41,461 33,888 80,968 (81,522) Effect of exchange rate changes on cash 598 (790) (3,083) 1,160 Cash, cash equivalents, and restricted cash, beginning of period 526,072 324,262 490,246 437,722 Cash, cash equivalents, and restricted cash, end of period $ 568,131 $ 357,360 $ 568,131 $ 357,360
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Procore Technologies, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (dollars in thousands) Revenue $ 402,313 $ 338,851 $ 1,136,803 $ 973,402 Gross profit 323,618 270,089 911,204 771,982 Stock-based compensation expense 6,207 6,155 18,345 17,291 Amortization of acquired technologyintangible assets 9,466 7,659 25,486 23,276 Employer payroll tax on employee stocktransactions 140 181 443 642 Acquisition-related expenses 307 — 307 — Non-GAAP gross profit $ 339,738 $ 284,084 $ 955,785 $ 813,191 Gross margin 80% 80% 80% 79% Non-GAAP gross margin 84% 84% 84% 84%
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Reconciliation of operating expenses to non-GAAP operating expenses: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (dollars in thousands) Revenue $ 402,313 $ 338,851 $ 1,136,803 $ 973,402 GAAP sales and marketing 149,971 144,290 444,937 424,871 Stock-based compensation expense (18,672) (16,658) (57,420) (49,197) Amortization of acquired intangibleassets (1,577) (3,346) (3,603) (9,998) Employer payroll tax on employee stocktransactions (558) (560) (1,882) (2,439) Acquisition-related expenses (4,050) (139) (4,370) (933) Non-GAAP sales and marketing $ 125,114 $ 123,587 $ 377,662 $ 362,304 GAAP sales and marketing as a percentageof revenue 37% 43% 39% 44% Non-GAAP sales and marketing as apercentage of revenue 31% 36% 33% 37% GAAP research and development $ 108,481 $ 88,049 $ 287,395 $ 264,560 Stock-based compensation expense (23,624) (20,969) (64,173) (60,630) Amortization of acquired intangibleassets — (661) (883) (1,951) Employer payroll tax on employee stocktransactions (668) (629) (2,405) (3,458) Acquisition-related expenses (9,416) (695) (15,003) (2,439) Non-GAAP research and development $ 74,773 $ 65,095 $ 204,931 $ 196,082 GAAP research and development as apercentage of revenue 27% 26% 25% 27% Non-GAAP research and developmentas a percentage of revenue 19% 19% 18% 20% GAAP general and administrative $ 72,348 $ 52,780 $ 197,398 $ 164,093 Stock-based compensation expense (13,822) (15,491) (43,436) (41,591) Employer payroll tax on employee stocktransactions (324) (294) (1,141) (1,639) Acquisition-related expenses (12,788) (238) (15,331) (779) Non-GAAP general and administrative $ 45,414 $ 36,757 $ 137,490 $ 120,084 GAAP general and administrative as apercentage of revenue 18% 16% 17% 17% Non-GAAP general and administrativeas a percentage of revenue 11% 11% 12% 12%
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Reconciliation of income (loss) from operations and operating margin to non-GAAP income from operations and non-GAAP operating margin: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (dollars in thousands) Revenue $ 402,313 $ 338,851 $ 1,136,803 $ 973,402 (Loss) income from operations (7,182) (15,030) (18,526) (81,542) Stock-based compensation expense 62,325 59,273 183,374 168,709 Amortization of acquired intangibleassets 11,043 11,666 29,972 35,225 Employer payroll tax on employeestock transactions 1,690 1,664 5,871 8,178 Acquisition-related expenses 26,561 1,072 35,011 4,151 Non-GAAP income from operations $ 94,437 $ 58,645 $ 235,702 $ 134,721 Operating margin (2%) (4%) (2%) (8%) Non-GAAP operating margin 23% 17% 21% 14%
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Reconciliation of net income (loss) and net income (loss) per share to non-GAAP net income and non-GAAP net income per share: Three Months Ended September30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands, except share and per share amounts) Revenue $ 402,313 $ 338,851 $ 1,136,803 $ 973,402 Net (loss) income (4,589) (9,101) 3,237 (63,179) Stock-based compensation expense 62,325 59,273 183,374 168,709 Amortization of acquired intangible assets 11,043 11,666 29,972 35,225 Employer payroll tax on employee stocktransactions 1,690 1,664 5,871 8,178 Acquisition-related expenses 26,561 1,072 35,011 4,151 Provision for income taxes* (19,665) — (56,231) — Non-GAAP net income $ 77,365 $ 64,574 $ 201,234 $ 153,084 Numerator: Non-GAAP net income $ 77,365 $ 64,574 $ 201,234 $ 153,084 Denominator: Weighted-average shares used in computingnet income (loss) per share attributable tocommon stockholders, basic 150,382,584 150,278,399 150,894,359 149,978,697 Effect of dilutive securities: Employee stockawards 1,302,419 3,277,157 1,755,114 4,428,985 Weighted-average shares used in computingnet income (loss) per share attributable tocommon stockholders, diluted 151,685,003 153,555,556 152,649,473 154,407,682 GAAP net (loss) income per share, basic $ (0.03) $ (0.06) $ 0.02 $ (0.42) GAAP net (loss) income per share, diluted $ (0.03) $ (0.06) $ 0.02 $ (0.42) Non-GAAP net income per share, basic $ 0.51 $ 0.43 $ 1.33 $ 1.02 Non-GAAP net income per share, diluted $ 0.51 $ 0.42 $ 1.32 $ 0.99 *For the three and nine months ended September 30, 2026, management has used an estimated annual effective non-GAAP tax rate of 21%.
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Computation of free cash flow: Three Months Ended September30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Net cash provided by operating activities $ 95,693 $ 88,472 $ 260,322 $ 185,328 Purchases of property and equipment (4,147) (5,392) (14,090) (12,400) Capitalized software development costs (18,551) (15,343) (52,668) (47,900) Non-GAAP free cash flow $ 72,995 $ 67,737 $ 193,564 $ 125,028