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.
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: $5.24 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Workiva’s Q3 Earnings Call
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Robert Oliver (Baird) asked if consolidation trends in the office of the CFO are accelerating. CEO Julie Iskow explained that both efficiency and the need for integrated data are driving more buyers toward unified platforms, with this trend expected to continue.
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Steven Enders (Citi) questioned the trajectory of margin expansion into 2026. CFO Jill Klindt replied that margins are expected to improve gradually, with stronger performance in the second half of next year, driven by operational productivity.
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John Messina (Raymond James) inquired about international momentum and multiproduct adoption. Iskow shared that international revenue now exceeds 19% of total sales and that demand for multi-solution deals remains broad-based in Europe and other regions.
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Jacob Roberge (William Blair) sought clarity on the demand environment amid macro uncertainty. Iskow acknowledged ongoing uncertainty but stressed that Workiva’s diverse product portfolio supports resilience and continued growth.
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Andrew DeGasperi (BNP Paribas) asked about the appointment of Michael Pinto as Chief Revenue Officer. Iskow stated that the move is aimed at scaling sales and partnerships for the company’s next stage of growth, with a focus on efficiency and global expansion.
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 $93.31, up from $82.20 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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