Workiva Inc.

What they do

Workiva sells subscriptions to a unified, audit-ready cloud platform that connects data from hundreds of ERP, HCM, CRM and other systems so customers can create, review and publish data-linked documents and reports. Customers use it for more than 100 use cases, and sales and marketing are organized around three purpose-built solution groups: financial reporting, sustainability management, and GRC. The company sells primarily through a direct sales force, augmented by advisory, service and technology partners, under a solution-based licensing model priced on expected use of each solution.

Revenue drivers

• Subscription and support — The core SaaS business, roughly 92% of 2025 revenue, billed through annual and multi-year contracts under solution-based licensing; Q2 2026 subscription and support revenue was $236 million, up 19% year-over-year.
• Financial reporting — One of three purpose-built solution groups, aimed at the office of the CFO; the 10-K risk factors note that more than 35% of total revenue comes from customers using the platform for SEC filings.
• Sustainability management — Solution group serving the Chief Sustainability Officer; the 10-Q states sales of these solutions have been and may continue to be materially impacted by domestic and global policy uncertainty.
• GRC and professional services — Governance, risk and compliance solutions serve the Chief Audit Executive, while professional services (mostly document setup and XBRL tagging) contributed $19 million of Q2 2026 revenue, up 12% year-over-year.

Recent performance

Q2 2026 total revenue was $255.3 million, up 19% from $215.2 million a year earlier, with subscription and support revenue of $236 million also up 19%. GAAP operating margin was 4.6% versus (10.2)% in Q2 2025, and non-GAAP operating margin was 16.8% versus 3.8%. GAAP net income was $13.4 million, or $0.24 per diluted share, compared with a $19.4 million net loss a year earlier; non-GAAP net income was $45 million. Operating cash flow was $78 million, and the company repurchased about 2.5 million shares for $123 million under its repurchase plan during the quarter. Full-year 2025 revenue was $884.6 million with a net loss of $26.2 million.

Strategy

Management is transforming the platform to be 'agentic-first,' saying agents will let customers in advanced solution tiers accelerate reporting and compliance outcomes with Workiva's control and traceability. Stated growth drivers are the connected audit-ready platform, fit-for-purpose solutions, global expansion, and the partner ecosystem, which management notes may require upfront costs to win and expand customers. The company continues to invest in solutions, infrastructure and sales and marketing, while emphasizing operational discipline and margin expansion. On the Q2 2026 call, CFO Barbara Larson said the margin outperformance positions Workiva to reach its 2027 medium-term non-GAAP operating margin target of 18% a full year early. Workiva also returned capital, repurchasing $123 million of Class A stock in Q2 2026 after the board added $250 million to the repurchase authorization in February 2026.

Risks

• SEC-filing revenue concentration — The 10-K states Workiva derives more than 35% of total revenue from customers using the platform for SEC filings, and proposed SEC reporting changes could affect that demand.
• Sustainability policy uncertainty — The 10-Q says the EU Omnibus Directive (in force March 18, 2026) and variability in member-state implementation have created customer uncertainty and influenced the pace of adoption of sustainability solutions.
• Limited profitability history — The 10-K states Workiva has not been profitable historically and may not achieve or maintain profitability; it reported net losses of $26.2 million, $55.0 million and $127.5 million in 2025, 2024 and 2023.
• Renewal and competition pressure — The 10-K lists inability to accurately predict subscription renewal or upgrade rates and intense competition as risks; gross retention was 97% and net retention 111% at June 30, 2026.

Outlook

Management said Q2 2026 revenue beat the high end of guidance with 19% growth in both subscription and total revenue, and that non-GAAP operating margin beat the high end of guidance by 180 basis points. Larson said the outperformance positions Workiva to hit its 2027 medium-term 18% non-GAAP operating margin target a full year ahead of schedule. The company continues to flag that policy and regulatory uncertainty, especially around sustainability rules, makes the growth impact difficult to predict accurately.