Comments made on this call include forward-looking statements regarding, among other things, our financial outlook, go-to-market transition, platform and products, customer demand, operations, and macroeconomic and geopolitical conditions. Some highlights include revenue grew 14% year-over-year, non-GAAP operating margins increased quarter-over-quarter to 13%. We saw continued progress with our go-to-market transition, positioning Procore for efficient growth as we build deeper and lasting partnerships with our customers. egg producer and one of the nation's largest barn builders experiencing significant CapEx growth.
In Q2, they selected Procore to standardize operations and enable their aggressive growth targets. In that time, HITT scaled its business from $800 million to more than $8 billion in revenue with Procore as a constant in their technology stack supporting their impressive growth. In Q2, they expanded their Procore footprint with additional ACV driven by a growing backlog, primarily due to their leadership position building data centers across the country. FedRAMP applies to certain federal agencies and contractors, and this designation is an important milestone towards enhancing our ability to serve this segment of the federal market more broadly.
The main topics I would like to cover today are our Q2 financial results, additional color on the quarter, and our outlook. Our Q2 international revenue grew 13% year-over-year and was impacted by currency headwinds. On a year-over-year basis, FX contributed approximately 3 points of headwind to international revenue growth. Q2 non-GAAP operating income was $44 million, representing a non-GAAP operating margin of 13%.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | Q3 2025 | $326 million-$328 million (10%-11% YoY growth) (new) |
| Non-GAAP operating margin | Q3 2025 | 13%-13.5% (new) |
| Revenue | Full-year 2025 | $1.299 billion-$1.302 billion (13% YoY growth) (raised) |
| Non-GAAP operating margin | Full-year 2025 | 13%-13.5% (300-350 bps expansion) (maintained) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +14% to $324 million | Strong new logo ARR growth led by general contractor, owner, and public sector motions, plus improved expansion mix. |
| Non-GAAP operating margin | 13% (up 300 bps QoQ) | Continued profitability improvement, with operating margin guide maintained for conservatism around items like FX. |
| International revenue | +13% (+16% constant currency) | Approximately 3 points of FX headwind. |
| Current RPO | +21% | Solid quarter benefiting primarily from longer average contract duration; normalized growth in the mid-teens. |
| Six- and seven-figure deals | +21% | Strong large-deal quarter. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AI innovation | Earlier AI positioning | Procore Helix intelligence layer introduced (Assist, Agent Builder, Developer Studio) with out-of-the-box agents in limited release; customer hackathon demonstrated demand | Building |
| Go-to-market transition | Announced a year prior with pulled-forward investments | On track and going about as planned; through the peak of disruption with improving conversion, deal cycles, and low attrition | Progressing |
| Construction macro environment | Depressed / challenging | Surprisingly the same as last quarter; customers resilient and optimistic despite tariff noise | Stable but challenged |
| Cross-sell mix | Roughly 80/20 volume-to-cross-sell | Shifted to 70/30 with cross-sell increasing, primarily from higher financials suite attach | Improving |
| Rule of 40 / FCF margin path | Investor day targets of 25% medium-term and 40% long-term FCF margins | Fiscal 2026 Rule of 40 improvement expected to be driven by higher profitability; increased confidence in milestones | On track |