Procore Reports $375M Revenue, First GAAP Profit, and $845M DroneDeploy Acquisition

Procore Posts Q2 Results at $1.5B ARR Run Rate

Procore reported Q2 FY26 revenue of $375M, up 16% from the prior year. The result exceeded the company's guide of $364M to $366M by 3%. Growth outpaced the 12.9% rate modeled by the street. The company operates construction software used on 3 million projects across 150+ countries and holds roughly $1.5B in ARR.

GAAP operating margin reached 1%, marking the first positive GAAP operating income in company history and an improvement of 1,080 basis points. Non-GAAP operating margin was 21%, up 800 basis points. Free cash flow totaled $65M, up 507%. Gross revenue retention stood at 95% and net revenue retention at 106%. The number of $100K+ ARR customers rose 14% to 2,871, representing 68% of total ARR. The company guided FY27 non-GAAP operating margin to 25%.

$845M All-Cash Acquisition of DroneDeploy

Procore agreed to acquire DroneDeploy for $845M in cash, subject to adjustments, with the deal expected to close later this year pending regulatory review. DroneDeploy reported TTM revenue of roughly $78M, gross margins above 80%, and cash flow breakeven. The purchase price equates to approximately 10.8x TTM revenue. Procore trades at roughly 4.3x ARR, or about $6.5B enterprise value.

The transaction will be funded largely through a committed bridge facility while the company evaluates permanent capital structure. Procore holds about $656M in cash and marketable securities and is taking on leverage for the first time. The company stated the deal is accretive to organic growth with no material impact to operating margin guidance.

according to SaaStr, Procore also completed an earlier acquisition of Datagrid for about $159M this year as part of its AI-related investments.

Operating Expense Discipline

Total GAAP operating expenses grew 3.1% to $295.5M while revenue grew 15.8%. Sales and marketing expenses rose 2.7% to $145.8M and declined as a percentage of revenue from 44% to 39%. Non-GAAP R&D expenses grew 3.4% and fell from 20% of revenue to 18%. Non-GAAP G&A expenses declined in dollars from $41.3M to $40.5M.

Leadership Transition

Ajei Gopal assumed the CEO role in November 2025, succeeding founder Tooey Courtemanche, who remains Chairman. Rachel Pyles serves as CFO and Walt Hearn as CRO; both joined from Ansys, where Gopal previously served as CEO.

according to SaaStr, Procore trades at 4.3x forward revenue while paying 10.8x TTM revenue for DroneDeploy.