Workiva (WK) AI Stock Analysis

• Market Cap: $5.18B
• Dividend Yield: N/A
• Average Volume (3M): 655.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 19.86%
• EPS Growth: 8.58%
• Country: US
• Employees: 2,873
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.55
• Shares Outstanding: 52,432,465
• 10 Day Avg. Volume: 541,847
• 30 Day Avg. Volume: 655,372
• PEG Ratio: 1.90
• Price to Book (P/B): -145.41
• Price to Sales (P/S): 8.21
• P/FCF Ratio: 70.20
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 5.85
• Enterprise Value/Gross Profit: 7.54
• Enterprise Value/Ebitda: -173.30
• 1Y Price Target: $105.13
• Price Target Upside: 13.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.61
• Revenue Forecast (FY): $880.08M

• Rating: 57 Neutral
• Price Target: $92.00 ▼(-0.40% Downside)

Workiva's overall stock score is driven by strong earnings call results and positive technical indicators, which are offset by significant financial performance challenges and valuation concerns. The company's strategic focus on large contracts and improved margins are positive, but high leverage and negative equity remain critical risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Workiva's solutions, enhancing its market position and providing a solid foundation for future expansion.

Product Innovation

Continuous innovation and AI integration strengthen Workiva's competitive edge, ensuring its offerings remain relevant and attractive to customers.

Leadership Appointment

The appointment of an experienced CRO can drive strategic growth initiatives and improve sales execution, supporting long-term revenue objectives.

Negative Factors

Negative Equity

Negative equity indicates financial instability, potentially limiting Workiva's ability to invest in growth and weather economic downturns.

Leadership Changes

Leadership transitions can disrupt strategic initiatives and sales momentum, posing risks to Workiva's operational stability and growth trajectory.

Macroeconomic Uncertainty

Macroeconomic challenges can affect customer budgets and demand for Workiva's solutions, potentially impacting revenue and profitability.

Workiva Business Overview & Revenue Model

Company Description

Workiva Inc. is a leading provider of cloud-based solutions for financial reporting, compliance, and data management. The company operates primarily in the sectors of financial technology and enterprise software, offering a comprehensive platform that enables organizations to streamline their reporting processes, improve collaboration, and enhance data transparency. Workiva's core products include Wdesk, which facilitates the creation and management of financial documents, and Wdata, which allows businesses to connect, manage, and analyze their data in real-time.

How the Company Makes Money

Workiva generates revenue primarily through subscription-based services, charging customers for access to its cloud platform on a recurring basis. The company offers various pricing tiers based on the size of the organization and the features required, allowing it to cater to a diverse client base that includes public and private companies, as well as government entities. Additionally, Workiva may earn revenue from professional services, such as implementation support, training, and consulting, which help clients maximize the value of their software solutions. Key revenue streams are bolstered by a growing customer base and long-term contracts, providing predictable income. Partnerships with other technology providers and integrations with popular financial and enterprise resource planning systems enhance its market presence and contribute to customer retention, further supporting its revenue model.

Workiva Financial Statement Overview

Summary

Workiva shows strong revenue growth and efficient cost management, evidenced by a high gross profit margin. However, persistent net losses and negative equity present significant financial risks. The company must improve profitability and strengthen its balance sheet to enhance financial stability. Positive cash flows provide some comfort, but maintaining liquidity amidst declining operating cash flow is essential.

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	845.52M	738.68M	630.04M	537.88M	443.29M	351.59M
Gross Profit	655.57M	566.63M	475.82M	407.99M	339.45M	261.42M
EBITDA	-28.53M	-25.57M	-59.32M	-72.75M	-19.84M	-30.43M
Net Income	-46.80M	-55.04M	-127.53M	-90.95M	-37.73M	-48.40M
Balance Sheet
Total Assets	1.41B	1.37B	1.22B	819.62M	786.76M	707.01M
Cash, Cash Equivalents and Short-Term Investments	856.79M	816.42M	813.72M	430.79M	530.45M	530.04M
Total Debt	792.95M	793.28M	793.18M	373.17M	337.74M	329.61M
Total Liabilities	1.45B	1.41B	1.31B	813.64M	713.78M	642.73M
Stockholders Equity	-36.93M	-41.68M	-89.39M	5.98M	72.98M	64.28M
Cash Flow
Free Cash Flow	130.28M	86.15M	68.52M	7.72M	46.09M	31.07M
Operating Cash Flow	133.08M	87.71M	70.88M	11.33M	49.84M	33.24M
Investing Cash Flow	-10.28M	-45.25M	-357.25M	-68.01M	-68.63M	-103.75M
Financing Cash Flow	-56.61M	6.74M	301.26M	-1.59M	-3.39M	11.12M

Workiva Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 92.37 is above the 20-day moving average (MA) of 91.04, above the 50-day MA of 88.63, and above the 200-day MA of 77.81, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 74.90 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	79 Outperform	$4.46B	17.56	130.93%	2.30%	17.83%	118.70%
BL	71 Outperform	$3.45B	52.95	21.85%	―	7.36%	-40.62%
GTM	71 Outperform	$3.10B	31.38	6.51%	―	1.47%	1077.70%
FRSH	71 Outperform	$3.62B	―	-2.98%	―	18.18%	70.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMP	61 Neutral	$5.80B	―	-9.39%	―	24.27%	73.11%
WK	57 Neutral	$5.18B	―	―	―	19.86%	8.58%

Workiva Corporate Events

Workiva Inc. Reports Strong Q3 2025 Earnings

Workiva Inc. recently held its Q3 2025 earnings call, which showcased a strong financial performance marked by significant revenue growth and improved margins. The company reported successful customer expansions, although it acknowledged concerns about macroeconomic uncertainty and challenges in sustainability demand.

Workiva Inc. Reports Strong Q3 2025 Results

Workiva Inc., a leading AI-powered platform, specializes in providing solutions for transparency, accountability, and trust, primarily serving finance, accounting, sustainability, risk, and audit teams across various organizations. In its latest earnings report for the third quarter of 2025, Workiva Inc. reported a total revenue of $224 million, marking a 21% increase compared to the same period last year. The company also saw a significant rise in subscription and support revenue by 23% year-over-year.