Workiva (WK) AI Stock Analysis

• Market Cap: $4.48B
• Dividend Yield: N/A
• Average Volume (3M): 901.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 19.02%
• EPS Growth: 27.64%
• Country: US
• Employees: 2,873
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 0.19
• Shares Outstanding: 52,170,000
• 10 Day Avg. Volume: 831,442
• 30 Day Avg. Volume: 901,498
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 4.73
• Enterprise Value/Gross Profit: 6.16
• Enterprise Value/Ebitda: -82.28
• 1Y Price Target: $93.71
• Price Target Upside: 17.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 65 Neutral
• Price Target: $83.00 ▲(3.84% Upside)

Workiva's overall stock score is driven by strong earnings call performance and positive technical indicators. However, financial performance is hindered by persistent net losses and negative equity, and valuation concerns arise from a negative P/E ratio. The company's ability to sustain revenue growth and improve profitability will be crucial for enhancing its financial health.

Positive Factors

Earnings

Workiva reported solid first-quarter results that outperformed consensus estimates on most key metrics.

ESG Solutions

Management highlighted solid demand for its ESG solutions from customers in the EU.

Market Valuation

Workiva shares trade at a lower multiple compared to the peer group median, with strong retention rates and improving ability to cross-sell.

Negative Factors

Macro Environment

Increased macro uncertainty in the U.S. market is driven by recent macro/tariff volatility.

Regulatory Complexity

Macro and regulatory headwinds have introduced some complexity to the story.

Regulatory Environment

Workiva noted that the macro and broader regulatory environment remains uncertain and that the company saw tempered demand for its sustainability suite.

Workiva Business Overview & Revenue Model

Company Description

Workiva Inc., together with its subsidiaries, provides cloud-based compliance and regulatory reporting solutions worldwide. The company offers Workiva platform that offers controlled collaboration, data linking, data integrations, granular permissions, process management, and full audit trail services; and provides tools that enables customers to connect data from enterprise resource planning, governance risk and compliance, human capital management, and customer relationship management systems, as well as from other third-party cloud and on-premise applications. It serves public and private companies, government agencies, and higher-education institutions. The company was founded in 2008 and is headquartered in Ames, Iowa.

How the Company Makes Money

Workiva generates revenue primarily through subscription fees for its cloud-based software solutions. Customers pay for access to its platform on a recurring basis, which provides a stable and predictable income stream. The company has a diverse customer base that includes publicly traded companies, private enterprises, and government entities, which broadens its market reach. Additionally, Workiva benefits from upselling and cross-selling opportunities as clients often expand their use of the platform to include more features or additional users. Significant partnerships with other technology providers and consultants also contribute to its earnings, as they help enhance the functionality of Workiva's offerings and broaden its customer base.

Workiva Financial Statement Overview

Summary

Workiva shows strong revenue and cash flow growth, but struggles with profitability and negative equity. The company must improve its net profit margin and strengthen its balance sheet to ensure long-term financial stability.

Income Statement

Workiva has shown consistent revenue growth over the years, with a notable increase from $351.6M in 2020 to $769.3M in TTM 2025. However, profitability remains a challenge as indicated by negative EBIT and net income margins. The gross profit margin is strong at 76.7% for TTM, reflecting efficient cost management. Despite revenue growth, the company needs to address its negative net profit margin of -8.4% to improve overall financial health.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity of -$75.7M in TTM, indicating potential financial instability. The debt-to-equity ratio is not meaningful due to negative equity, but the high total debt of $794.2M suggests significant leverage. The equity ratio is negative, reflecting the company's reliance on debt financing. Addressing these issues is crucial for long-term sustainability.

Cash Flow

Workiva's cash flow situation is relatively stable, with a positive operating cash flow of $55.5M in TTM and a free cash flow of $53.4M. The free cash flow to net income ratio is strong, indicating effective cash management despite net losses. However, the decline in operating cash flow from $87.7M in 2024 to $55.5M in TTM warrants attention to ensure continued liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	806.98M	738.68M	630.04M	537.88M	443.29M	351.59M
Gross Profit	619.73M	566.63M	475.82M	407.99M	339.45M	261.42M
EBITDA	-46.40M	-25.57M	-59.32M	-72.75M	-19.84M	-30.43M
Net Income	-66.58M	-55.04M	-127.53M	-90.95M	-37.73M	-48.40M
Balance Sheet
Total Assets	1.35B	1.37B	1.22B	819.62M	786.76M	707.01M
Cash, Cash Equivalents and Short-Term Investments	813.71M	816.42M	813.72M	430.79M	530.45M	530.04M
Total Debt	793.71M	793.28M	793.18M	373.17M	331.73M	329.61M
Total Liabilities	1.41B	1.41B	1.31B	813.64M	713.78M	642.73M
Stockholders Equity	-66.53M	-41.68M	-89.39M	5.98M	72.98M	64.28M
Cash Flow
Free Cash Flow	102.92M	86.34M	68.52M	7.72M	46.09M	31.07M
Operating Cash Flow	105.83M	87.71M	70.88M	11.33M	49.84M	33.24M
Investing Cash Flow	-49.80M	-45.25M	-357.25M	-68.01M	-68.63M	-103.75M
Financing Cash Flow	-35.46M	6.74M	301.26M	-1.59M	-3.39M	11.12M

Workiva Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WK, the sentiment is Positive. The current price of 79.93 is above the 20-day moving average (MA) of 76.98, above the 50-day MA of 72.56, and below the 200-day MA of 82.72, indicating a neutral trend. The MACD of 1.80 indicates Positive momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 32.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WK.

Workiva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YOU	78 Outperform	$4.64B	18.70	128.70%	2.13%	19.85%	135.66%
GTM	69 Neutral	$3.26B	39.09	5.22%	―	-0.54%	626.94%
FRSH	67 Neutral	$3.74B	―	-5.23%	―	19.78%	47.51%
WK	65 Neutral	$4.48B	―	99.24%	―	19.02%	27.64%
BL	65 Neutral	$3.32B	43.13	23.79%	―	7.99%	-28.47%
COMP	64 Neutral	$5.17B	―	-9.57%	―	21.23%	78.54%
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%

Workiva Corporate Events

Workiva Confirms Key Decisions at Annual Meeting

On May 29, 2025, Workiva Inc. held its Annual Meeting of Stockholders where several key decisions were made. The election of three Class II directors, Astha Malik, Suku Radia, and Martin J. Vanderploeg, was confirmed for terms expiring in 2028. Stockholders approved the compensation of named executive officers and decided to hold advisory votes on this compensation annually. An amendment to the Certificate of Incorporation for officer exculpation was approved, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.