One-glance verdict
Undervalued
$96.23 our estimate vs market $52.65
Wall Street consensus: $68.38 (-28.9% lower than our fair-value estimate)
45% below our estimate, below the bear case
Fundamentals snapshot
Procore Technologies, Inc.
PCOR · NYQ · Technology · Software - Application
Current price
$52.65
52-week range
$38.03 - $82.31
Market cap
$8.00B
Balance sheet
Healthy
-107.84x Concerning
Net cash $588.39M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 7.6% last year.
- Reward Free cash flow was positive in 5/10 years.
- Risk Return on equity was -3.1% last year — the company lost money on shareholders' equity.
What this company does
Procore Technologies, Inc.
Procore Technologies sells subscription software that acts as a single command center for large construction projects, used by everyone from architects to on-site workers. The company makes money from these subscriptions, which provides a steady source of recurring revenue (income that is expected to continue in the future). This is important because construction is a massive industry, and Procore's tools help make complex projects more efficient and less costly to manage.
How the company got here
Procore was founded in 2002 by Craig "Tooey" Courtemanche, who had a background in both construction and technology. While building his own home, he became frustrated with the disconnected and inefficient ways construction projects were managed using paper, spreadsheets, and email. He created a software solution to bring all project communication and tasks into one central online hub. The company grew slowly for its first decade but saw rapid growth with the rise of mobile internet on job sites, eventually going public in May 2021.
What it actually does
Procore provides a cloud-based software platform specifically designed for the construction industry. Think of it as a master toolkit for a building project, accessible from a computer or smartphone, that connects everyone involved—from the property owner and main contractor to the specialized workers on site. The software helps manage everything from the initial plans and budget to day-to-day schedules, safety checklists, and financial tracking. Instead of using separate, disconnected tools, teams can collaborate and share information in real-time on Procore's single system. Customers pay a subscription fee to access the platform, with the price based on the total value of the construction projects being managed, not the number of users.
Preconstruction
This part of the business focuses on the critical planning stages before any ground is broken. It provides tools that help with tasks like estimating project costs, managing bids from different suppliers and specialty contractors, and collaborating on the design. This helps ensure that a project is well-planned and financially sound from the very beginning. This is a key area of expansion for the company as it aims to cover the entire lifecycle of a construction project.
Project Execution
This is the core of Procore's original business, designed to manage the actual building process. It connects the teams in the office with the workers on the job site, allowing them to share project drawings, track daily progress, and manage safety procedures. This constant flow of information helps reduce mistakes and rework, which saves both time and money. This segment is a major contributor to the company's revenue (the money it brings in from sales).
Resource Management
This business line helps construction companies manage their most important assets: their people and equipment. The software allows managers to schedule their workforce, track hours, and monitor the productivity of their teams and machinery. By optimizing how labor and equipment are used, companies can improve their efficiency and better control their costs. This is a growing part of Procore's all-in-one platform strategy.
Financial Management
This segment provides tools to keep track of the money side of a construction project. It helps customers manage their project budgets, handle invoices (bills from suppliers), and connect with their main accounting systems. This gives them a real-time view of the financial health of their projects, helping them stay on budget and manage payments effectively. This is a significant part of Procore's offering, as it ties directly into a project's profitability.
What management is betting on now
Procore's main strategy is to become the single, indispensable platform for the entire construction industry, from start to finish. They are heavily investing in expanding their product offerings to cover every phase of a project's life, including areas like financial management and resource planning. The company is also focused on international growth and integrating artificial intelligence (AI) to provide smarter, data-driven insights that can help predict risks and improve efficiency on projects.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$35.73M
FY2024 Q4
$17.42M
FY2025 Q1
$61.99M
FY2025 Q2
$27.85M
FY2025 Q3
$83.08M
FY2025 Q4
$109.24M
FY2026 Q1
$73.83M
FY2026 Q2
$80.86M
Revenue
$375.21M
Net income
$16.92M
Diluted EPS
0.11
Operating cash flow
$87.87M
Free cash flow
$80.86M
Fetching…
Sources
Revenue
$359.28M
Net income
$-9.10M
Diluted EPS
-0.06
Operating cash flow
$76.76M
Free cash flow
$73.83M
Fetching…
Sources
Revenue
$349.11M
Net income
$-37.60M
Diluted EPS
-0.25
Operating cash flow
$114.94M
Free cash flow
$109.24M
Fetching…
Sources
Revenue
$338.85M
Net income
$-9.10M
Diluted EPS
-0.06
Operating cash flow
$88.47M
Free cash flow
$83.08M
Fetching…
Sources
Revenue
$323.92M
Net income
$-21.09M
Diluted EPS
-0.14
Operating cash flow
$30.83M
Free cash flow
$27.85M
Fetching…
Sources
Revenue
$310.63M
Net income
$-32.99M
Diluted EPS
-0.22
Operating cash flow
$66.03M
Free cash flow
$61.99M
Fetching…
Sources
Revenue
$302.05M
Net income
$-62.29M
Diluted EPS
-0.42
Operating cash flow
$29.06M
Free cash flow
$17.42M
Fetching…
Sources
Revenue
$295.88M
Net income
$-26.39M
Diluted EPS
-0.18
Operating cash flow
$39.28M
Free cash flow
$35.73M
Fetching…
Sources
Is it cheap or expensive?
Fair value $96.23 vs current price $52.65
Wall Street consensus is the average analyst price target: $68.38 (-28.9% lower than our fair-value estimate).
Our most-likely fair value is $96.23 a share — about 82.8% above today's price of $52.65, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $588.4M - more cash than debt. Interest coverage -107.8x.
Net debt
$-588.39M
Interest coverage
-107.84x
Procore Technologies, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
PCOR
BASELINE
Procore Technologies, Inc.
Total debt $67.53M Interest coverage -107.84x This is the baseline the peer rows are being compared against.
Total debt $3.70B Interest coverage 25.27x This peer still has a real interest-payment cushion, while PCOR does not.
Total debt $1.46B Interest coverage 8.22x This peer still has a real interest-payment cushion, while PCOR does not.
Total debt $1.27B Interest coverage 23.67x This peer still has a real interest-payment cushion, while PCOR does not.
Total debt $169.14B Interest coverage 4.88x This peer still has a real interest-payment cushion, while PCOR does not.
Total debt $11.32B Interest coverage 6.88x This peer still has a real interest-payment cushion, while PCOR does not.
What you should know
The case for and against PCOR
2 Rewards
1 Risk
Rewards
-
Revenue grew 7.6% last year.
-
Free cash flow was positive in 5/10 years.
Risks
-
Return on equity was -3.1% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
22.17x
P/B
6.25x
P/S
5.62x
EV/EBITDA
113.49x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
80.1%
Operating margin
2.3%
Net margin
-2.7%
ROE
-3.1%
ROA
-1.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.05x
Current ratio
1.17x
Quick ratio
1.01x
Total debt
$67.53M
Total cash
$655.91M
Growth
How the business has been compounding
Revenue TTM
$1.42B
Revenue 5Y CAGR
26.6%
EPS TTM
-0.26
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$368.04M
Free CF TTM
$282.17M
FCF margin
19.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—