Procore published its third quarter results on 3 November. Revenue was $402.3m, up 19% on the same quarter last year, with about 2 percentage points of that growth coming from DroneDeploy, the reality capture business it bought for $845m in cash and closed on 9 September.
Total remaining performance obligations (RPO, the contracted revenue not yet recognised) reached $1.81bn, up 28%. The number of organic customers paying more than $100k a year rose 14% to 2,968, gross revenue retention held at 95%, and full-year revenue guidance was raised to between $1,557m and $1,559m, of which $24m is DroneDeploy.
Procore's latest results have direct implications for contractors, consultants and clients using the platform. CFO Rachel Pyles said the average contract duration increased again this quarter, with stronger execution on large deals making the biggest contribution to bookings. This suggests that more customers are committing to larger contracts over longer periods.
At the same time, Procore is introducing tiered subscription bundles and usage-based pricing for its AI agents. It also has a newly acquired drone and 3D capture product to offer its existing customers. Taken together, these changes could affect both software costs and the range of tools available to project teams.
So the question for your next renewal is not whether Procore is healthy. It plainly is, and customers are choosing it. The question is what you will be asked to commit to, for how long, and which of the new capabilities you will be paying for, whether or not your sites use them.
The quarter in numbers
Procore delivered a strong quarter, beating its revenue guidance and generating healthy cash flow. International growth was particularly encouraging, while the DroneDeploy acquisition has added to both its growth prospects and financial commitments.
Revenue: Excluding DroneDeploy, revenue reached $397m, up 17.1% year-on-year. This was $13m above the top end of guidance and the company's biggest beat since 2023.
Profitability and cash flow: Non-GAAP operating margin was 23%, although the company reported a GAAP operating loss of $7.2m after accounting for $62m in stock-based compensation and $26.6m in acquisition costs. Free cash flow stood at $73m, including $19m in one-off DroneDeploy closing payments.
International growth and contracts: International revenue grew 30%. Procore has also launched a common data environment (CDE) for the UK, Ireland and Europe. RPO grew 28.9% including DroneDeploy and 22.6% without it.
The cost of expansion: Procore partly financed the DroneDeploy acquisition with $950m in zero-coupon convertible notes due in 2031. Its balance sheet now carries $928m in convertible debt and $1.25bn in goodwill.
The business is generating plenty of cash, so the debt is not an immediate concern. However, the acquisition was a sizeable investment, and Procore will need to generate meaningful additional business from its existing customers to make it pay off.
What Procore says it is building
The strategic language is consistent across the release, the call and CEO Ajei Gopal's blog: a move from a system of record to a 'system of intelligence' that sees the site, understands it and acts. In the release, Gopal said: "We delivered new capabilities across our flagship products and made Procore AI's digital coworkers generally available. We are well on our way to becoming a next-generation, AI-native construction management platform and a true system of intelligence for construction." For the reader, the operative phrase is 'generally available'. The agents, including a Submittal Review Agent that checks subcontractor submittals against the specification and drafts a response, are now products with a price, not a roadmap.
DroneDeploy is the perception layer. Procore says the two companies shared roughly 600 customers at acquisition and that it intends to cross-sell in both directions. Product integration is described as "underway", with early work on connecting data sets and bringing DroneDeploy's AI agents into Procore AI. DroneDeploy's Ground Pro, launched on 22 September, turns phone and 360-camera walks into measurable 3D records inside Procore. Note that Procore's own release describes it as "a premium add-on to DroneDeploy Ground", which tells you how it will be sold.
Bundles, tiers and metered agents
The most useful exchange on the call for anyone holding a Procore contract was about packaging. Asked about the four bundles introduced this year, Pyles described a "good, better, best" structure and said, "In some of the higher tiers, you would have access to more of the AI capabilities that are embedded within our platform."
Gopal added that as AI is introduced into the flagship products, "some of that can happen more at the higher-end tiers within some of these bundles. And so we have an ability to monetise some of those capabilities." Simply put, AI features in the core tools you already use may sit behind a tier upgrade rather than arriving in your current package.
The agents themselves are priced differently again. Asked about gross margin exposure to AI compute, Pyles was direct.
We price our agents on usage. So customers are committing to a level of consumption. Cost is a component when we consider that pricing.
She added that Procore has introduced Control Tower so customers can see team usage and set limits and that "we are not selling an all-you-can-eat AI solution." That is good news if you want certainty, and it is also a third pricing axis to negotiate: Gopal reminded analysts that Procore prices its core platform on annual construction volume, the bundles add tiers on top, and agents add a consumption commitment on top of that.
Procore is not alone. Autodesk's AEC Data Model API pricing took effect on 6 October 2026, charging for 'Data Out' (granular model data pulled from the Autodesk ecosystem) by the megabyte beyond an allowance included with qualifying subscriptions. Platform vendors across the sector are finding ways to meter the parts of their products that cost them compute.
What this means for your renewal
A vendor growing RPO at 28% with 95% gross retention has pricing power, and its sales team is being rewarded for longer, larger contracts. That does not make a multi-year deal wrong; it may buy you price protection. It does mean you should go into the conversation knowing what you want from the bundle, the drone layer and the agents, rather than letting the package define it.
Ask which tier your current functionality maps to under the new bundles, and whether any AI features you already use (the upgraded submittal builder, for instance) are moving to a higher tier at renewal.
Get the agent consumption commitment in writing as a separate line, with the Control Tower limits set before go-live, so an enthusiastic project team cannot run up usage you have not budgeted.
Treat DroneDeploy and Ground Pro as an option, not a default: if your sites do not fly drones or do 360 walks, ask for it to be excluded rather than bundled at a 'discount'.
Check how your annual construction volume figure is being calculated and when it resets, since that remains the base on which everything else is priced.
If you are asked to extend contract length, price the extension against the alternative of a shorter term with a capped annual uplift.
Takeaway
Procore had a very good quarter, and the firms signing longer contracts are doing so because the product works for them. The shift worth watching is structural: a platform priced on construction volume is adding tiers that gate AI features, consumption pricing for agents, and a premium capture layer bought for $845m that now needs selling. Procore says it will not sell all-you-can-eat AI, which is sensible, but it also means your renewal has more moving parts than it did a year ago. Know which ones you need before the account manager tells you.
We track how the platforms your projects run on change their pricing, packaging and AI roadmaps, and what that does to the people paying for them. The Project Flux newsletter puts that analysis in your inbox each week at projectflux.ai.
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