Grade History
| Quarter | Disclosure Quality | Financial Quality |
|---|---|---|
| Q1'25 → | B+ | B- |
| Q2'25 → | B- | B |
| Q3'25 → | B+ | B |
| Q4'25 → | B | B+ |
| Q1'26 → | C+ | C |
Promise Ledger · All Quarters
| Marked | Promise | Status | |
|---|---|---|---|
| Q1'26 | ⏳ | Much of our sales organization to be selling Procore AI in Q3 New promise - timeline pushed from current quarter to Q3 | pending |
| Q1'26 | ⏳ | We will monetize the value and ROI of Procore AI agents Still in pilot phase with tiny sales team - monetization pushed to Q3 at earliest | pending |
| Q1'26 | ❌ | Capturing just a small fraction of that ROI represents an incremental market opportunity No AI revenue disclosed despite multiple customer pilots and use cases | missed |
| Q1'26 | ⏳ | We believe customers will materially increase their output without corresponding labor growth No quantified customer productivity gains disclosed this quarter | pending |
| Q1'26 | ❌ | Notable product synergies due to our highly complementary capabilities Admitted they're still learning the commercial motion instead of realizing synergies | missed |
| Q1'26 | ⏳ | We expect our solution to continue to improve with every layer we unlock Still working on product roadmap integration - no specific improvements delivered this quarter | pending |
| Q4'25 | ✅ | Continued investment in AI capabilities Completed Datagrid acquisition, launched Procore AI, disclosed 66K active AI users | delivered |
| Q4'25 | ✅ | Go-to-market model yielding benefits and improved execution Showed higher pipeline conversion, improved expansion rates, lower sales attrition per Q3 commentary | delivered |
| Q4'25 | ✅ | Free cash flow per share as North Star metric Generated $215M FCF for full year, 69% YoY growth, now formally guiding FCF margin | delivered |
| Q4'25 | ✅ | Revenue guidance for fiscal 2025: $1.312B to $1.314B raised from prior guidance Implied achievement based on Q4 results and maintained guidance | delivered |
| Q4'25 | ✅ | Margin expansion for fiscal 2025 - guided to 14% non-GAAP operating margin Achieved exactly 14% for full year, representing 400 bps expansion | delivered |
| Q3'25 | ⏳ | cRPO disparity with revenue growth to shrink as early as Q4 Still seeing longer contract duration impact, expects to anniversary in Q4 | pending |
| Q3'25 | ✅ | Free cash flow margins roughly in line with operating margins Maintained guidance that free cash flow margins align with operating margins | delivered |
| Q3'25 | ✅ | Go-to-market transition benefits in retention, expansion, and sales efficiency Higher pipeline conversion, improved expansion rates, lower voluntary sales attrition reported | delivered |
| Q3'25 | ✅ | Cross-sell to become larger contributor to expansion mix from technical specialists Mix shifted to 70-30 from historical 80-20, with cross-sell increasing from financials suite | delivered |
| Q3'25 | ✅ | Continued profitability improvement and margin expansion Delivered 17% non-GAAP operating margin vs 13% prior quarter, raised full year to 14% | exceeded |
| Q3'25 | ⏳ | Rule of 40 improvement in fiscal '26 driven by higher profitability No formal FY26 guidance given, deferred until new CEO onboards | pending |
| Q2'25 | ❌ | Free cash flow margins in line with operating margins FCF came in light, Howard called it 'noise' but no specific guidance hit | missed |
| Q2'25 | ❌ | International constant currency growth acceleration Decelerated to 16% constant currency vs 20% in Q1 | missed |
| Q2'25 | ✅ | First round of agent testing with customers Daily log and RFI agents in limited release with largest customers | delivered |
| Q2'25 | ⏳ | Margin expansion of 300-350 bps for full year On track with 300 bps QoQ improvement in Q2 | pending |
| Q2'25 | ⏳ | Current RPO normalization by Q4 Still seeing contract duration benefits, expects Q4 anniversary | pending |
| Q2'25 | ✅ | Go-to-market transition providing benefits by Q2 Cross-sell mix improved to 30%, customer feedback positive per management | delivered |
| Q1'25 | ⏳ | 25% free cash flow margins medium term Reaffirmed target but no specific timeline updates | pending |
| Q1'25 | ⏳ | Launch first round of AI agents for customer testing Still described as 'early stage' with customer pilots ongoing | pending |
| Q1'25 | ✅ | Continued margin expansion in 2025 Confirmed 13-13.5% operating margin guidance | delivered |
| Q1'25 | ✅ | Most go-to-market roles filled by end of Q1 Management confirmed ahead of hiring targets | delivered |
| Q1'25 | ⏳ | Complete go-to-market transition by H2 2025 Extended disruption timeline to 'at least Q2' - still on track but more cautious | pending |
| Q1'25 | ❌ | Flow through quarterly revenue beats to full year guidance Explicitly broke this policy in Q1 - beat but didn't raise full year | missed |
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