Company: PCOR
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050149
Chunk: 43

Company: PROCORE TECHNOLOGIES, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 four-year period. In the event where the Company’s absolute TSR is negative over the four-year performance period, the total payout will be capped at 100% of the target award, regardless of the Company’s relative TSR performance. The Eligible Tranche 1 PSUs and Eligible Tranche 2 PSUs, if any, will vest on the next quarterly company vesting date (each February 20, May 20, August 20, and November 20, each a “Company Vesting Date”) following the date that the number of Eligible Tranche 1 PSUs or Eligible Tranche 2 PSUs, as applicable, is determined by the Board or an authorized committee thereof, in each case, subject to Dr. Gopal’s continuous service through the applicable Company Vesting Date. The fair value of the 2025 CEO Designate PSUs was determined using a Monte Carlo simulation valuation model on the date of grant, as described below. The related stock- based compensation is recognized on a straight-line basis over the applicable vesting term of each respective tranche, with no changes for final projected payout of the awards. If the required service period for the 2025 CEO Designate PSUs is not completed, the award will be forfeited, and compensation expense will be adjusted. We account for forfeitures as they occur. The fair value of the CEO Designate PSUs determined based on the Monte Carlo simulation is $47.5 million.

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Table of ContentsProcore Technologies, Inc.Notes to Condensed Consolidated Financial Statements (unaudited)

To determine the fair value of the 2025 CEO Designate PSUs, the Company utilized a Monte Carlo simulation with the following assumptions:Risk-free interest rate3.56% to 3.68%Expected term (in years)3.0 to 4.0Estimated dividend yield0.00%Procore estimated weighted-average volatility49.21%The term of the 2025 CEO Designate PSUs is the term of the award. The Company estimates volatility for the 2025 CEO Designate PSUs based on the historical volatility of its own common stock price. The interest rate is derived from government bonds with a term equal to the longest simulation term. The Company has not declared, nor does it expect to declare, dividends in the foreseeable future. Consequently, an expected dividend yield of zero was utilized.In March 2025, the Company granted its CEO an aggregate target number of 93,438 PSUs (