Workiva (NYSE:WK) Releases Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Key Points

• Workiva’s third-quarter revenue rose 17.3% year over year to $262.96 million, slightly exceeding estimates, but EPS of $0.72 missed the $0.80 consensus.
• The company raised its full-year non-GAAP operating-margin outlook to 18.2%–18.3%, while warning that fading sustainability tailwinds and foreign-exchange headwinds are tempering its outlook.
• Weaker-than-expected fourth-quarter and full-year EPS guidance weighed on sentiment; shares fell 14.8% to $72.83 after the results.

Workiva (NYSE:WK - Get Free Report) announced its quarterly earnings data on Thursday. The software maker reported $0.72 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.80 by ($0.08), FiscalAI reports. The firm had revenue of $262.96 million during the quarter, compared to the consensus estimate of $261.37 million. Workiva had a net margin of 4.87% and a negative return on equity of 140.17%. The business's revenue was up 17.3% compared to the same quarter last year. During the same period last year, the business earned $0.55 earnings per share.

Here are the key takeaways from Workiva's conference call:

• Workiva reported Q3 revenue of $263 million, up 17% year over year, beating the high end of guidance. Non-GAAP operating margin reached 18.3%, expanding 560 basis points year over year.
• Large-customer growth remained strong: contracts above $300,000 annually rose 31%, while those above $500,000 rose 20%. Gross retention was 97%, and multi-solution customers accounted for 77% of subscription revenue.
• The company launched Agent Studio, automated GRC testing, and new regulatory offerings, and highlighted customer wins involving its agentic solutions. Management sees AI as an opportunity to expand the platform’s role in complex, high-stakes reporting and compliance work.
• Management said prior sustainability and foreign-exchange tailwinds have faded, with FX now a modest headwind, contributing to a more measured Q4 outlook. Full-year revenue guidance is $1.041 billion–$1.044 billion, while subscription revenue growth is expected to be approximately 19%.
• Workiva raised its full-year non-GAAP operating margin outlook to 18.2%–18.3%, and continues to expect a free cash flow margin of about 21%. Management said the company remains on track with its 2026 plan and confident in its longer-term targets.

Workiva Stock Down 14.8%

Shares of NYSE:WK traded down $12.67 during midday trading on Friday, hitting $72.83. The stock had a trading volume of 2,535,831 shares, compared to its average volume of 860,844. The company has a market cap of $4.09 billion, a P/E ratio of 65.03 and a beta of 0.46. The business's 50-day simple moving average is $75.83 and its 200-day simple moving average is $63.07. Workiva has a 12 month low of $43.34 and a 12 month high of $95.00.

Analysts Set New Price Targets

A number of brokerages have weighed in on WK. BTIG Research set a $85.00 price objective on shares of Workiva in a report on Wednesday, September 16th. Stifel Nicolaus set a $95.00 price objective on Workiva in a report on Thursday, August 27th. Citigroup reissued a "buy" rating on shares of Workiva in a research report on Thursday, August 6th. UBS Group set a $70.00 price target on Workiva in a report on Wednesday, August 5th. Finally, Weiss Ratings downgraded Workiva from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday. Nine investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $87.00.

More Workiva News

Here are the key news stories impacting Workiva this week:

• Positive Sentiment: Third-quarter revenue rose 17.3% year over year to $262.96 million, topping analysts’ $261.37 million estimate. Quarterly results
• Neutral Sentiment: Coverage highlighted Workiva’s AI expansion, while noting moderating business tailwinds; the available reports do not quantify the potential financial contribution from AI. Q3 deep dive
• Negative Sentiment: Q3 EPS was $0.72, below the roughly $0.79–$0.80 consensus, despite increasing from $0.55 a year earlier. The earnings shortfall is a likely drag on sentiment. Q3 earnings miss
• Negative Sentiment: Workiva’s Q4 EPS outlook of $0.78–$0.80 is below the $0.92 consensus, and its $275 million–$278 million revenue range is just shy of the $278.1 million estimate. Full-year EPS guidance of $2.80–$2.83 also trails the $2.95 consensus, putting the outlook at the center of investor concern. Why shares are falling

Insider Activity at Workiva

In other news, EVP Brandon Ziegler sold 6,571 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $75.97, for a total transaction of $499,198.87. Following the completion of the transaction, the executive vice president owned 126,216 shares in the company, valued at approximately $9,588,629.52. This represents a 4.95% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 4.77% of the stock is currently owned by insiders.

About Workiva

Workiva Inc NYSE: WK provides cloud-based software designed to help organizations manage reporting, compliance, risk and other complex business processes. Its platform connects financial, operational and environmental, social and governance (ESG) data so teams can collaborate on information used for internal and external reporting.

The company's products support financial reporting, regulatory filings, audit and compliance workflows, investor communications, and sustainability reporting.

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