Procore: Sell as 17.5% Stock-Based Compensation Crushes Per-Share Cash Economics
Unlimited-user construction volume pricing builds an enviable jobsite system of record, yet $248.3M in equity grants reduces true Owner FCF margin to 6.94% at 5.11x DCF base value.
Score Locked · Full AccessResearchPublished Nov 9, 2026 · Data as of Jun 30, 2026· 2 min read · 2 exhibits
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Procore generated $1.42B in trailing twelve-month GAAP revenue (+26.60% year over year) and $1.14B in gross profit (79.96% gross margin) across its cloud construction management platform serving Project Owners, General Contractors (GCs), and Specialty Contractors. [1] Consensus sell-side coverage treats Procore as a clean vertical SaaS compounder because upfront annual subscription invoicing generated
Our variant perception exposes the chasm between deferred-revenue cash float and economic earnings accruing to outside shareholders. Even past $1.42B in annual revenue scale, Procore remains unprofitable on a GAAP operating basis, posting -$69.18M in TTM EBIT (-4.86% operating margin) following -$124.34M (-9.40%) in FY2025 and -$136.42M (-11.85%) in FY2024. [1] The primary culprit is $248.31M in trailing stock-based compensation (17.46% of revenue), which consumes 71.56% of every GAAP free cash flow dollar and compresses SBC-burdened Owner FCF to just $98.70M (6.94% of revenue).
[1] Over the past five years, diluted shares surged 64.9% from 92.67M in FY2021 to 152.79M TTM, transferring the bulk of Procore's operational progress from public equity holders to employee grant recipients. [1]
Simultaneously, Procore faces real operational friction from commercial non-residential construction cyclicality and an ambitious go-to-market (GTM) reorganization. Management restructured its field sales organization away from generalist account reps into regional General Manager territories supported by dedicated technical product specialists to cross-sell Preconstruction, Workforce Management, Financial Management, and Procore Pay.
[2] While strategically logical over a decade, sales-territory reassignments elevate near-term rep turnover and elongate enterprise expansion cycles precisely when elevated commercial real estate financing costs constrain customer Annual Construction Volume (ACV) commitments. At $72.90 per share ($11.14B market cap), Procore trades at 112.9x trailing SBC-burdened Owner FCF, leaving severe valuation compression risk (-80.4% downside to our $14.26 base case).
Source: Procore Technologies, Inc. SEC Form 10-K and Q2 2026 Form 10-Q filings.
Exhibit 2Data Exhibit
Revenue crossed $1.42B TTM as upfront billings lifted GAAP FCF margin to 24.4%
Filed GAAP revenue (primary bars) and GAAP free cash flow margin (secondary line) across FY2022-TTM.
Revenue
FCF margin
Source: Procore Technologies, Inc. SEC Form 10-K and Form 10-Q filings.
Fair Isaac: Hold as 51.7% Credit-Scoring Operating Margin Trades at 1.71x Base DCF
FICO converts $2.53B of FY2026 revenue into a 51.7% GAAP operating margin and $884.5M of owner cash on just $2.1M of capex, yet at $1,653.48 shares trade 71.2% above our $965.54 base DCF amid mortgage regulatory scrutiny.
Fair Isaac CorporationNov 8, 2026 · Data as of Sep 30, 2026
