Company: PCOR
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050149
Chunk: 155

Company: PROCORE TECHNOLOGIES, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 155
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)832 *

* Percentage not meaningful

During the three months ended September 30, 2025, accretion income, net decreased by $1.7 million due to a decrease both in our purchases of marketable securities and the balance of our marketable securities portfolio.

During the three months ended September 30, 2025, interest income decreased by $1.1 million due to a decrease in the balances of our money market funds, cash savings accounts, and marketable securities.

40

Comparison of the Nine Months Ended September 30, 2025 and 2024

Revenue

Nine Months Ended September 30,Change20252024DollarPercent(dollars in thousands)Revenue$973,402 $849,660 $123,742 15%

During the nine months ended September 30, 2025, our revenue increased by $123.7 million, or 15%, compared to the nine months ended September 30, 2024, of which approximately 56% was attributable to revenue from existing customers and approximately 44% was attributable to revenue from new customers acquired during the nine months ended September 30, 2025. The increase in revenue from existing customers includes the net benefit of a full nine months of subscription revenue in the first nine months of 2025 from customers that were newly acquired or expanded their subscriptions in 2024 and continued or expanded their subscriptions, as applicable, in the first nine months of 2025.

Cost of Revenue, Gross Profit, and Gross Margin

Nine Months Ended September 30,Change20252024DollarPercent(dollars in thousands)Cost of revenue$201,420 $148,778 $52,642 35%Gross profit771,982 700,882 71,100 10%Gross margin79%82%

The increase in cost of revenue during the nine months ended September 30, 2025 was primarily attributable to an increase of $22.9 million in personnel-related expenses, including increases of $19.8 million in salaries and wages and $3.0 million in stock-based compensation expense. The increase in cost of revenue was also attributable to a $14.7 million increase in amortization of capitalized software development costs, a $9.7 million increase in third-party cloud hosting and related services as we grow our customer base, and a $4.5 million increase in amortization of developed technology intangible assets. We increased our cost of revenue headcount by