Cloud reporting platform Workiva (NYSE:WK) announced better-than-expected revenue in Q3 CY2025, with sales up 20.8% year on year to $224.2 million. Guidance for next quarter’s revenue was better than expected at $235 million at the midpoint, 1.6% above analysts’ estimates. Its non-GAAP profit of $0.55 per share was 42.7% above analysts’ consensus estimates.
Is now the time to buy WK? Find out in our full research report (it’s free for active Edge members).
Workiva (WK) Q3 CY2025 Highlights:
- Revenue: $224.2 million vs analyst estimates of $219 million (20.8% year-on-year growth, 2.4% beat)
- Adjusted EPS: $0.55 vs analyst estimates of $0.39 (42.7% beat)
- Adjusted Operating Income: $28.5 million vs analyst estimates of $16.83 million (12.7% margin, 69.3% beat)
- Revenue Guidance for Q4 CY2025 is $235 million at the midpoint, above analyst estimates of $231.2 million
- Management raised its full-year Adjusted EPS guidance to $1.67 at the midpoint, a 23.8% increase
- Operating Margin: -1.5%, up from -11.7% in the same quarter last year
- Customers: 6,541, up from 6,467 in the previous quarter
- Net Revenue Retention Rate: 114%, in line with the previous quarter
- Annual Recurring Revenue: $838.2 million vs analyst estimates of $818.8 million (22.5% year-on-year growth, 2.4% beat)
- Billings: $259 million at quarter end, up 20.1% year on year
- Market Capitalization: $4.60 billion
StockStory’s Take
Workiva’s third quarter results were met with a positive market reaction, as the company delivered revenue and non-GAAP earnings per share above Wall Street expectations. Management attributed the outperformance to ongoing demand for its AI-powered platform and broad-based adoption across financial reporting, governance, risk, and compliance (GRC), and sustainability solutions. CEO Julie Iskow highlighted that growth was driven by both new customer wins and significant expansion within the existing customer base, particularly through multi-solution deals and larger contract values. The company also cited operational improvements and disciplined execution as key factors behind improved margins this quarter.
Looking ahead, Workiva’s guidance reflects confidence in continued subscription growth, further margin expansion, and ongoing adoption of new platform capabilities. Management indicated that investments in AI-driven enhancements, expanded go-to-market initiatives, and operational efficiency will be central to sustaining momentum. CFO Jill Klindt noted that the company’s focus on cost discipline and resource optimization is expected to persist, while incoming Chief Revenue Officer Michael Pinto will aim to accelerate sales productivity and global expansion. Iskow added, “We are committed to staying in the lead and going after our growth opportunity, while at the same time, improving productivity within and across our organization.”
Key Insights from Management’s Remarks
Management linked the strong quarter to robust demand for platform solutions, growth in large contract cohorts, and progress in operational efficiency initiatives, while emphasizing the impact of AI-powered features and recent organizational changes.
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Multi-solution adoption accelerates: Growth was fueled by customers consolidating multiple reporting and compliance needs onto Workiva’s platform, with expansion deals across sustainability, GRC, and financial reporting solutions. Iskow noted that “73% of our subscription revenue was generated from customers with multiple solutions.”
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Large contract momentum: The company saw a sharp rise in contracts valued above $100,000, $300,000, and $500,000, driven by both upsells to existing Fortune 100/1000 clients and new large enterprise wins. This expansion was powered by new capabilities and deeper platform integration.
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AI-powered product enhancements: Workiva launched Intelligent Finance, Intelligent Sustainability, and Intelligent GRC at its annual user conference. These offerings use structured, machine-readable data to streamline reporting, improve accuracy, and support regulatory compliance. Management emphasized that “AI can operate without guessing what’s material, how metrics are defined or how to compare them.”
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Operational efficiency gains: The company continued to restructure its organization, streamline processes, and automate routine tasks. Initiatives included shifting low-margin services to partners and optimizing sales territories, contributing to margin improvement and productivity gains.
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Leadership transition: Michael Pinto, formerly a senior leader at Databricks and AWS, was appointed as Chief Revenue Officer, succeeding Mike Hawkins. Management expects Pinto to drive the next phase of growth by scaling global sales and accelerating go-to-market strategies.
Drivers of Future Performance
Management expects revenue growth and profitability to be driven by continued AI platform adoption, operational discipline, and expansion into international and enterprise markets, while acknowledging ongoing macroeconomic uncertainty.
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AI and platform differentiation: The company is prioritizing further integration of AI-driven capabilities, aiming to increase the value proposition for customers facing complex reporting and compliance needs. Management believes these features will support larger deal sizes and improve customer retention.
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Sales productivity and global expansion: Workiva is focused on optimizing its sales structure, upgrading talent, and deepening partnerships, especially in Europe and other growing markets. Incoming Chief Revenue Officer Michael Pinto will lead efforts to modernize go-to-market strategies and increase both new logo and expansion deal momentum.
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Macroeconomic and regulatory headwinds: While management highlighted strong demand, they also noted persistent uncertainty from changing regulations, tariffs, and geopolitical developments. The company’s broad solution set and recurring revenue base are viewed as mitigants, but management remains attentive to evolving market risks.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory analysts will be watching (1) the pace of adoption for Workiva’s new AI-driven product extensions, (2) sustained growth in large multi-solution contracts among enterprise and international clients, and (3) the impact of sales and operational restructuring under new leadership. Execution on further margin improvements and expansion into new regulatory reporting requirements will also be important markers of progress.
Workiva currently trades at $93.80, up from $82.20 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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