Workiva (WK) AI Stock Analysis

• Market Cap: $3.72B
• Dividend Yield: N/A
• Average Volume (3M): 577.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 17.36%
• EPS Growth: 32.19%
• Country: US
• Employees: 2,873
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): 0.14
• Shares Outstanding: 51,888,190
• 10 Day Avg. Volume: 479,611
• 30 Day Avg. Volume: 577,501
• PEG Ratio: -0.37
• Price to Book (P/B): 743.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 576.28
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 7.75
• Enterprise Value/Ebitda: -41.36
• 1Y Price Target: $99.70
• Price Target Upside: 51.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 54 Neutral
• Price Target: ―

Workiva's stock score reflects its strong revenue growth and effective cost management, countered by significant profitability and balance sheet challenges. Technical indicators suggest weak momentum, and valuation metrics are unattractive due to ongoing losses. Despite strong subscription growth and customer retention highlighted in the earnings call, market uncertainties and a cautious buying environment pose risks.

Positive Factors

Financial Performance

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

Market Opportunity

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

Revenue Growth

Workiva finished the year on a generally solid note with the biggest revenue beat in two years and a strong guide for 20% subscription revenue growth during FY25.

Negative Factors

Market Volatility

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

Profitability Challenges

FY25 profitability guidance came in light of expectations, particularly in Q1, but FY27 margin targets remain intact.

Regulatory Concerns

Concern about the fate of sustainability reporting mandates, particularly in Europe, threatens to potentially overshadow the company's reacceleration.

Workiva Business Overview & Revenue Model

Company Description

Workiva Inc. (WK) is a leading provider of cloud-based compliance, regulatory reporting, and data management solutions. The company specializes in offering a unified platform that simplifies complex business processes, enabling organizations to connect data, documents, and teams in a secure environment. Workiva's solutions are utilized across various sectors, including finance, accounting, risk management, and compliance, to enhance transparency, accountability, and data-driven decision-making.

How the Company Makes Money

Workiva generates revenue primarily through a subscription-based model. Customers pay recurring fees to access its cloud platform, which offers a range of integrated applications and services tailored to meet their specific reporting and compliance needs. The company's key revenue streams include subscriptions to its software services, professional services such as consulting and training, and customer support. Workiva also benefits from strategic partnerships with major software and consulting firms, which help to expand its market reach and enhance its service offerings. Additionally, as regulatory requirements continue to evolve and grow more complex, Workiva's solutions become increasingly valuable, driving further adoption and revenue growth.

Workiva Financial Statement Overview

Summary

Workiva demonstrates robust revenue growth and strong gross profit margins, indicating efficient cost management. However, the company faces significant profitability challenges with consistent net losses, impacting its balance sheet strength due to high debt levels and negative stockholders' equity. Operating and free cash flows are managed effectively, providing some financial flexibility, but declining cash flow trends present risks.

Income Statement

Workiva has shown consistent revenue growth with a notable increase over the past years, culminating in a 5.4% revenue growth in the TTM period. However, the company is struggling with profitability, as evidenced by negative EBIT and net income margins. The gross profit margin remains strong at 76.7% for TTM, indicating effective cost management despite overall losses.

Balance Sheet

The balance sheet reveals a challenging financial position with negative stockholders' equity for the recent periods, indicating potential financial instability. The high debt levels lead to a negative equity ratio, and the absence of positive return on equity due to ongoing losses presents concerns about future solvency and leverage management.

Cash Flow

Workiva demonstrates strong cash flow management with positive operating cash flow throughout the periods. The free cash flow to net income ratio is favorable, indicating efficient cash utilization. However, the declining trend in operating cash flow and potential volatility in cash flows from financing activities pose risks.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
769.29M	738.68M	630.04M	537.88M	443.29M	351.59M
	Gross Profit
590.42M	566.63M	475.82M	407.99M	339.45M	261.42M
	EBIT
-81.90M	-76.53M	-94.53M	-88.76M	-29.36M	-37.80M
	EBITDA
-45.10M	-25.57M	-59.32M	-72.75M	-19.84M	-30.43M
	Net Income Common Stockholders
-64.73M	-55.04M	-127.53M	-90.95M	-37.73M	-48.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
767.02M	816.42M	813.72M	430.79M	530.45M	530.04M
	Total Assets
1.29B	1.37B	1.22B	819.62M	786.76M	707.01M
	Total Debt
794.20M	793.28M	793.18M	367.45M	331.73M	325.07M
	Net Debt
552.17M	491.44M	537.08M	127.25M	31.34M	2.23M
	Total Liabilities
1.37B	1.41B	1.31B	813.64M	713.78M	642.73M
	Stockholders Equity
-75.73M	-41.68M	-89.39M	5.98M	72.98M	64.28M
Cash Flow		Free Cash Flow
53.45M	86.34M	68.52M	7.72M	46.09M	31.07M
	Operating Cash Flow
62.86M	87.71M	70.88M	11.33M	49.84M	33.24M
	Investing Cash Flow
-85.08M	-45.25M	-357.25M	-68.01M	-68.63M	-103.75M
	Financing Cash Flow
-36.95M	6.74M	301.26M	-1.59M	-3.39M	11.12M

Workiva Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WK, the sentiment is Negative. The current price of 65.73 is below the 20-day moving average (MA) of 68.24, below the 50-day MA of 68.92, and below the 200-day MA of 84.98, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 37.60 is Neutral, neither overbought nor oversold. The STOCH value of 13.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WK.

Workiva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOX	78 Outperform	$5.19B	27.59	152.34%	―	4.88%	80.94%
FRSH	68 Neutral	$4.62B	―	-6.85%	―	20.46%	39.37%
BILL	68 Neutral	$4.53B	482.28	0.97%	―	14.52%	―
INTA	66 Neutral	$4.33B	―	-4.16%	―	17.70%	61.98%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
WK	54 Neutral	$3.72B	―	99.24%	―	17.36%	32.19%

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.

The most recent analyst rating on (WK) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on Workiva stock, see the WK Stock Forecast page.

Workiva Announces Changes in Board of Directors

On April 2, 2025, Brigid Bonner, a member of Workiva Inc.’s Nominating and Governance Committee and Chair of the Compensation Committee, announced she will not seek re-election as a Class II director at the company’s 2025 annual meeting. Her decision was not due to any disagreements with the company’s operations or management. The Board has approved a slate of nominees for the meeting, including a new nominee, Ms. Astha Malik, Chief Business Officer of Braze, Inc., who is expected to bring valuable skills and experience to the Board.