PCOR

Procore is the leading software platform for construction project management — a large, underdigitized end-market — and it shows the hallmarks of a quality SaaS franchise. FY2025 revenue grew 14.8% to $1.32B at a 79.5% gross margin, and while the company remains GAAP-unprofitable (-$101M net income, -$124M operating income), the loss is narrowing every year and is overwhelmingly stock-based compensation rather than cash burn. The cash story is what matters: operating cash flow surged 53.1% to $300M on minimal capex ($18.1M), so the business is strongly free-cash-flow positive despite the accounting loss.

The balance sheet supports continued investment: $481M cash (+9.8%), liabilities/equity of 0.77x, and no meaningful debt. Management is investing heavily in product (R&D +15.8% to $362M) to extend its platform lead, and even began returning capital with $129M of buybacks. The trajectory from -$265M net loss in FY2021 to -$101M in FY2025 on more than 2.5x the revenue demonstrates real operating leverage as the model scales toward GAAP profitability.