Procore's $375M Revenue Beat & NPK's 20% Growth Signal Construction Tech Boom

For the PropTech sector, Procore's Q2 beat is more than a software success story — it's a proof point that construction firms are investing heavily in digital workflows even as project backlogs swell. With a 23% international revenue jump and a planned DroneDeploy acquisition to embed AI-powered drone data into its platform, Procore is cementing its role as the operating system for the modern jobsite. Meanwhile, NPK International's record $54 million in rental and service revenue underscores a parallel trend: technology isn't just digital. Advanced matting systems and logistics platforms are enabling faster, safer site access for mega-projects, and NPK's ability to turn over 25% of its domestic fleet profitably demonstrates the 'proptech as a service' model in action.

The second quarter of 2026 delivered a strong dose of confidence for the construction technology sector, as both Procore Technologies and NPK International reported results that surpassed expectations and signaled durable growth trajectories. Procore, a cloud-based construction management software provider, posted revenue of $375 million, up 15.8% year over year and roughly 2.5% above the high end of its guidance. The performance was broad-based, fueled by large contract wins, steady domestic demand and a 23% surge in international revenue. Profitability stole the spotlight: non‑GAAP operating income hit $81 million (21.5% margin), an 800‑basis‑point expansion from a year ago, while free cash flow rocketed 507% to $65 million. CEO Tooey Courtemanche and CFO Rachel Pyles marked the quarter as the company’s first to achieve GAAP operating profitability, a symbolic milestone for a high‑growth software name.

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Revenue climbed 20% to $82 million, driven by a 28% jump in product sales to $28 million and a record $54 million in rental and service revenue.

The raised guidance reinforced management’s conviction. Procore now sees full‑year 2026 revenue of $1.51‑$1.514 billion (14.5% growth at the top end), with non‑GAAP operating margin of 18.5‑19% and free‑cash‑flow margin of 19.5%. Third‑quarter revenue is expected between $382 million and $384 million. Most notably, Pyles introduced a fiscal 2027 non‑GAAP operating margin target of 25% — an improvement of nearly 1,100 basis points from 2025 — underscoring a shift toward profitable growth that resonates well with investors weary of cash‑burning software narratives.

NPK International, a provider of ground‑protection mats and site‑access solutions for construction and energy projects, complemented the software story with a hardware‑centric beat. Revenue climbed 20% to $82 million, driven by a 28% jump in product sales to $28 million and a record $54 million in rental and service revenue. Adjusted EBITDA rose 37% to $26 million, yielding a 31.5% margin; adjusted EPS from continuing operations reached $0.15 versus $0.11 a year ago. The rental segment demonstrated organic resilience, growing 4% excluding a $4 million boost from the Grassform acquisition, and the company successfully redeployed assets after completing several large projects that had accounted for more than a quarter of its domestic mat fleet — a testament to its operational scale. On the call, CEO Matthew Lanigan emphasized that the company’s ability to absorb such transitions profitably is a direct benefit of its market position, while CFO Gregg Piontek noted that product sales strength stemmed largely from utility customers and international orders outside the UK. NPK also raised its full‑year adjusted EBITDA outlook.