Workiva (WK) AI Stock Analysis

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Workiva

(NYSE:WK)

Select Model

Neutral 65 (OpenAI - 4o)

Rating:65Neutral

Price Target:

$84.00

▼(-2.09% Downside)

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 due to a negative P/E ratio. The company's ability to maintain growth and improve profitability will be crucial for future performance.

Positive Factors

Revenue Growth

Workiva's consistent revenue growth reflects strong market demand and effective sales strategies, enhancing its competitive position and long-term viability.

Subscription Revenue

Robust subscription revenue growth indicates a successful business model with recurring income, providing financial stability and opportunities for expansion.

Large Contracts Growth

Growth in large contracts suggests strong customer trust and satisfaction, which can lead to sustained revenue and market leadership.

Negative Factors

Negative Equity

Negative equity indicates financial instability, which could limit investment capacity and increase vulnerability to economic fluctuations.

Net Losses

Ongoing net losses challenge profitability, necessitating strategic adjustments to achieve sustainable financial health.

Leadership Transition

The upcoming CFO transition may disrupt financial strategies and execution, impacting operational continuity and investor confidence.

Workiva (WK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$4.81B

Dividend YieldN/A

Average Volume (3M)781.00K

Price to Earnings (P/E)―

Beta (1Y)0.72

Revenue Growth19.02%

EPS Growth27.64%

CountryUS

Employees2,873

SectorTechnology

Sector Strength88

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.19

Shares Outstanding52,170,000

10 Day Avg. Volume841,751

30 Day Avg. Volume780,996

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.79

Enterprise Value/Revenue4.73

Enterprise Value/Gross Profit6.16

Enterprise Value/Ebitda-82.28

Forecast

1Y Price Target

$94.86

Price Target Upside10.57% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering9

Workiva Business Overview & Revenue Model

Company DescriptionWorkiva 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 MoneyWorkiva 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 Key Performance Indicators (KPIs)

Any

Customers Over $100,000 Annual Contract Value

Customers Over $100,000 Annual Contract Value
Highlights the number of high-value clients, indicating the company's ability to attract and retain significant business relationships that drive substantial revenue.

Chart InsightsWorkiva's customer base with contracts over $100,000 has seen robust growth, increasing by 27% year-over-year as of Q2 2025. This aligns with the company's strong financial performance, driven by demand in financial reporting and GRC solutions. Despite some moderation in sustainability demand, high customer retention and notable deals with major firms underscore the company's strategic focus on expanding large contract cohorts. The raised revenue and operating margin guidance for 2025 further highlight management's confidence in sustaining this growth trajectory.

Data provided by:

Main Street Data

Workiva Earnings Call Summary

Earnings Call Date:Jul 31, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

The earnings call reflected strong financial performance with remarkable growth in subscription revenue, large contracts, and net retention rate. However, there were challenges, including a moderation in sustainability demand and leadership changes. Despite these challenges, the company demonstrated robust growth metrics and a positive outlook for operating margins.

Q2-2025 Updates

Positive Updates

Record Growth in Subscription Revenue

Subscription revenue grew by 23% in Q2 of 2025 compared to Q2 of 2024, driven by both new customer acquisitions and expansions within the existing customer base.

Strong Performance in Large Contracts

Contracts valued over $100,000 increased by 27%, those over $300,000 by 37%, and those over $500,000 by 35%, compared to Q2 of 2024.

Positive Non-GAAP Operating Margin

Exceeded non-GAAP operating margin guidance by 380 basis points, and forecasted further improvement in operating margin to 7-8% in Q3 and 7-7.5% for the full year 2025.

Impressive Net Retention Rate

Net retention rate reached 114% in Q2 2025, up from 109% in Q2 2024, driven by upsell and cross-sell within the existing customer base.

Significant Customer Wins

Major deals include a 7-figure expansion with a U.S.-based Fortune 500 bank and a mid-6-figure new logo deal with a large U.K.-based asset management company.

Negative Updates

Moderation in Sustainability Demand

Observed a moderation in demand within the corporate segment in both the U.S. and Europe for sustainability solutions.

Flat Professional Services Revenue

Professional services revenue was flat year-over-year, with a decline in setup and consulting services offset by higher XBRL services.

Leadership Transition

Jill Klindt, Executive Vice President and CFO, announced her departure at the end of 2025, indicating a period of transition in the financial leadership team.

Company Guidance

During Workiva's Q2 2025 conference call, the company reported exceeding its revenue guidance with a 23% growth in subscription revenue and a 21% increase in total revenue. The non-GAAP operating margin outperformed expectations by 380 basis points, driven by strong execution of its growth strategy across solutions like financial reporting, GRC, and sustainability. The number of contracts valued over $100,000, $300,000, and $500,000 saw significant year-over-year growth of 27%, 37%, and 35%, respectively. Workiva raised its operating margin outlook for the second half of 2025, with a commitment to its 2027 and 2030 margin targets. For Q3 2025, revenue is expected to range between $218 million and $220 million, while full-year guidance was increased to $870 million to $873 million, reflecting a focus on profitable growth amidst macroeconomic uncertainties.

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

Positive

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

Neutral

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

Positive

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 Price85.79

Price Trends

50DMA

76.33

Positive

100DMA

72.25

Positive

200DMA

81.52

Positive

Market Momentum

MACD

2.13

Negative

RSI

64.88

Neutral

STOCH

88.62

Negative

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 85.79 is above the 20-day moving average (MA) of 80.10, above the 50-day MA of 76.33, and above the 200-day MA of 81.52, indicating a bullish trend. The MACD of 2.13 indicates Negative momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 88.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WK.

Workiva Risk Analysis

Workiva disclosed 47 risk factors in its most recent earnings report. Workiva reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Workiva Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YOU	82 Outperform	$4.87B	19.63	145.77%	2.10%	19.85%	135.66%
GTM	73 Outperform	$3.68B	44.17	5.75%	―	-0.54%	626.94%
FRSH	67 Neutral	$3.64B	-68.72	-5.58%	―	19.78%	47.51%
WK	65 Neutral	$4.81B	―	99.24%	―	19.02%	27.64%
BL	61 Neutral	$3.27B	42.51	21.25%	―	7.99%	-28.47%
COMP	56 Neutral	$4.26B	-73.54	-7.40%	―	21.23%	78.54%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

Workiva

85.79

6.67

8.43%

BlackLine

52.84

-2.30

-4.17%

GTM

ZoomInfo Technologies

11.56

1.24

12.02%

COMP

Compass

7.95

1.84

30.11%

YOU

Clear Secure

36.63

4.41

13.69%

FRSH

Freshworks

12.48

1.00

8.71%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 12, 2025