Procore Technologies (PCOR) Stock Forecast & Price Target

Procore Technologies Inc. is projected to achieve FY25 revenue between $1.299 billion and $1.302 billion, reflecting a year-over-year growth of approximately 13%. The company has experienced a notable increase in large deals, with six- and seven-figure contracts rising by 21% year-over-year, contributing to a growth in customers generating over $100,000 in annual recurring revenue (ARR) to 2,517, a 15% increase year-over-year. Additionally, Procore's total remaining performance obligations (RPO) reached $1.344 billion, marking a 30% increase year-over-year, significantly surpassing earlier consensus estimates.

Procore Technologies Inc. has demonstrated a decline in key financial metrics, evidenced by a significant drop in stock repurchase activities from approximately $100 million in 1Q25 to only $3.1 million in 2Q25, indicating potential cash flow constraints. The company's non-GAAP gross margin of 83.4% fell short of both market expectations and internal estimates, while operating cash flow and free cash flow were also notably below consensus forecasts, suggesting ongoing operational challenges. Additionally, the company faces considerable competition in a fragmented market, alongside concerns regarding macroeconomic conditions and the success of its international expansion efforts, which may hinder future growth prospects.