WK

Workiva stock has logged a steep decline over the past five years, yet the current market pricing still screens as expensive on broad valuation checks. After a recent rebound, the key question is whether investors are paying a premium for Workiva's growth profile despite that longer term share price drop. Over the past 5 years, Workiva shares have fallen about 48%, which raises questions about how much long term value has been created for shareholders so far. The investment case can be helped by confidence in Workiva's ability to grow recurring software revenue and improve profitability, while the main risk is that high operating costs or slower customer adoption keep cash generation weaker than investors expect. Workiva currently screens with a low value score, 2 out of 6 checks, which points to a stock that leans expensive rather than a clear bargain on the broader metrics. The issue now is whether Workiva's recent share price recovery leaves enough potential reward to justify paying up for the stock on these valuation measures. Balance Workiva's valuation risk by scanning a curated list of companies that combine stronger value scores with solid fundamentals through the 50 high quality undervalued stocks. The P/E ratio fits Workiva because investors often focus on earnings-based metrics for mature, subscription-heavy software businesses. Workiva currently trades on a P/E of about 88.7x, which is well above the wider software industry average of 30.7x and higher than the peer group average of 59.2x. The Fair Ratio model, which blends factors such as growth, margins, size and risk, points to a P/E of around 42.7x for Workiva. The current 88.7x multiple sits far above that level, which implies investors are paying a substantial premium to what this framework suggests might be reasonable for the stock. On the P/E yardstick, Workiva stock screens as overvalued, with the current earnings multiple sitting significantly above both sector peers and the modelled fair level. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Workiva pick up where the valuation puzzle leaves off and focus on what would need to be true about Workiva's growth, margins and earnings for the stock to end up worth materially more or less than it is today. Instead of stopping at a single ratio or model output, they describe the future that number assumes. This gives you something concrete to monitor over time on the Community page. The community is sharply split on Workiva, with one camp leaning into the long term growth story and the other focused on execution and regulatory risk. Bull case: roughly fairly valued Read the full Bull Case to see why Workiva could be undervalued Bear case: 18% overvalued Read the full Bear Case to see why Workiva could be overvalued Do you think there's more to the story for Workiva? Head over to our Community to see what others are saying! Workiva appears overvalued on current earnings multiples, which already reflect a demanding outlook for growth and margin progress. With broader checks pointing to a relatively weak value profile, the stock does not screen as a clear bargain on today’s numbers. For you as an investor, the key question is whether Workiva can expand recurring revenue and improve profitability enough to make that premium seem justified rather than stretched. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WK. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Workiva’s second quarter results were met with a negative market reaction, as shares declined modestly despite the company surpassing Wall Street’s revenue and non-GAAP profit expectations. Management pointed to continued demand for its cloud reporting platform, especially among large enterprise customers, and highlighted the company’s significant improvement in operating margin. CEO Julie Iskow credited disciplined execution and ongoing operational changes, stating, “This was a reflection of the operating model that we continue to improve as we grow.” Is now the time to buy WK? Find out in our full research report (it’s free). Revenue: $255.3 million vs analyst estimates of $251.1 million (18.6% year-on-year growth, 1.7% beat) Adjusted EPS: $0.77 vs analyst estimates of $0.63 (21.3% beat) Adjusted Operating Income: $42.99 million vs analyst estimates of $37.04 million (16.8% margin, 16.1% beat) The company slightly lifted its revenue guidance for the full year to $1.04 billion at the midpoint from $1.04 billion Management raised its full-year Adjusted EPS guidance to $3.39 at the midpoint, a 16.7% increase Operating Margin: 4.6%, up from -10.3% in the same quarter last year Customers: 6,750 Net Revenue Retention Rate: 111% Annual Recurring Revenue: $945.2 million (19.2% year-on-year growth, beat) Billings: $272.3 million at quarter end, up 14.7% year on year Market Capitalization: $3.66 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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. Alexander Sklar (Raymond James) pressed CEO Julie Iskow about sales cycle dynamics and whether more scrutiny or longer approval times were emerging; Iskow noted deal cycles actually shortened this quarter, though legal and procurement rigor had increased. Nicholas Dannewitz (BTIG) asked what supports management’s confidence in sustained 17%+ subscription growth through 2030; Iskow cited broad-based demand, product expansion, and a strong partner ecosystem, while Larson pointed to international growth as an additional lever. Andrew DeGasperi (BNP Paribas) questioned the pace of fund reporting adoption in financial services; Iskow highlighted strong sales momentum in both private and public fund reporting, especially at the enterprise level, but noted that public fund reporting is still in early stages. Brett Huff (Stephens Inc.) inquired about the sustainability of margin improvement and if long-term margin targets would be raised; Larson said the focus remains on disciplined scaling and that current 2030 targets are unchanged, but acknowledged ongoing productivity gains. Steven Enders (Citi) sought early customer feedback on new AI agent products and their monetization potential; Iskow reported “excellent traction” in premium tiers, with customers adopting advanced features both at renewal and mid-cycle. Looking ahead, the StockStory team will monitor (1) adoption rates of AI-powered agents and premium solution tiers, (2) continued momentum in large enterprise contract expansion across key verticals, and (3) international sales execution and the onboarding of new strategic hires. The ability to maintain high net revenue retention and drive multi-solution upsell will also be important indicators of sustained growth. Workiva currently trades at $67.37, up from $61.25 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 5:00 p.m. ET Senior Director of Investor Relations - Katie White President and Chief Executive Officer - Julie Iskow Chief Financial Officer - Barbara Larson Operator: Good afternoon, ladies and gentlemen. Welcome to Workiva's Q2 2026 Earnings Call. My name is Harmony, and I will be your host operator on this call. Please note, this call is being recorded on August 4, 2026, at 5:00 p.m. Eastern Time. I would now like to turn the meeting over to your host for today's call, Katie White, Senior Director of Investor Relations. Katie White: Good afternoon, and thank you for joining Workiva's Q2 2026 Conference Call. During today's call, we will review our second quarter results and discuss our guidance for the third quarter and full year 2026. Today's call will include comments from our Chief Executive Officer, Julie Iskow, followed by our Chief Financial Officer, Barbara Larson. We will then open up the call for a Q&A session. After market close today, we issued a press release, which is available on our Investor Relations website, along with our quarterly investor presentation. This conference call is being webcast live, and following the call, an audio replay will be available on our website. During today's call, we will be making forward-looking statements regarding future events and financial performance, including guidance for the third quarter and full fiscal year 2026. These forward-looking statements are based on our assumptions as to the macroeconomic, political and regulatory environment as of today, reflect management's current expectations and beliefs based on factors currently known to us and are subject to significant risks and uncertainties. Workiva cautions that these forward-looking statements are not guarantees of future performance. We undertake no obligation to update or revise these statements. If the call is reviewed after today, the information presented during this call may not contain current or accurate information. Please refer to the company's annual report on Form 10-K and subsequent filings with the SEC for factors that may cause our actual results to differ materially from those contained in our forward-looking statements. Also during the course of today's call, we will refer to certain non-GAAP financial measures. Reconciliations of GAAP and non-GAAP measures are included in today's press release. With that, we'll begin by turning the call over to Workiva's CEO, Julie Iskow. Julie Iskow: Thank you, Katie, and thank you all for joining us today. Q2 2026 delivered another quarter of strong financial performance and continued demand for our trusted platform. We beat the high end of our revenue guidance with 19% growth in both subscription revenue and total revenue. We also continue to execute on our commitment to profitable growth, achieving a Q2 non-GAAP operating margin of 16.8%. This was a 180 basis point beat on the high end of our guide and a 1,300 basis point improvement compared to Q2 of last year. Our Q2 results once again reflect broad-based durable demand across our entire portfolio of solutions. It also reflects our unwavering commitment to operational efficiency as we scale our business. Because of our strong operating margin performance in the first half of the year, we're raising our full year 2026 non-GAAP operating margin guidance to 18%. This 18% operating margin target is an important milestone for Workiva. This was the target communicated in our 2027 operating model. And with this updated 2026 guide, we will be delivering on that operating margin target a full year early. This margin milestone reflects disciplined execution across every part of our business, and it reflects deliberate changes to how we're organized to how we deploy resources and to where we direct those resources. This isn't a one quarter result. It's a reflection of the operating model that we continue to improve as we grow. And our growth continues to be supported by the opportunities that we're seeing in the market. The office of the CFO is undergoing one of its most significant transformations in decades. Finance leaders are being asked to do far more than close books and report results. Today, they're also responsible for the data that their businesses rely on and how AI is governed and they're helping their organization navigate a more complex regulatory and risk environment, but that's only part of the story. AI is also changing what's expected of the people that are doing the work. CFOs and their teams are expected to deliver insights in hours instead of days. They're expected to automate more of the work that's still manual, answer more questions with greater confidence and respond faster as regulations and business conditions continue to change. They're also no longer expected to simply use enterprise software. There's now an expectation that they'll extend it and build upon it. Users are becoming builders. They're creating AI agents. They're automating complex processes. They're connecting trusted business data with the rest of their technology ecosystem. They're extending the platforms they already rely on every day. And they're expected to do all of this while maintaining the governance, the security, the accuracy and the auditability that the office of the CFO demands. And as AI becomes more embedded in more business processes, trusted, connected and traceable data matters more than ever. This is exactly where Workiva can make the biggest difference. Our customers shouldn't have to assemble AI models and agents and enterprise systems and governance tools just to meet these new expectations. And they shouldn't have to choose between adopting the latest AI capabilities and maintaining the trust that their organization depend on. They should be able to do both. That's why we're building intelligent capabilities that customers can put to work immediately. Some customers will use these capabilities as they are. Others will want to go further. They'll connect Workiva with more of their systems, build their own agents, extend workflows or use Workiva as part of a broader AI ecosystem. Our approach supports both. We deliver the AI capabilities that our customers need today while giving them the flexibility to build, to connect and to extend those capabilities. Inside Workiva and beyond it, all grounded in the trusted data, governance and controls that they already manage within the Workiva platform. We believe this combination will help finance organizations meet the rapidly rising expectations of the office of the CFO. It's what our customers are asking for, and it's what we're building. And we believe no one is better positioned to deliver it than Workiva. This value proposition is resonating at the highest levels of the enterprise. Our largest customers are standardizing on Workiva, and it shows in our large contract cohorts. In Q2, contracts valued over $300,000 annually grew 34% and contracts above $500,000 annually grew 33%, both compared to Q2 of 2025. This growth reflects both continued expansion within our existing customer base and the landing of larger multi-solution new logos. I'd like to highlight a few of our Q2 deals that demonstrate how our platform is winning in the market to solve our customers' most complex reporting challenges. First, we signed a mid-6-figure account expansion deal with a global digital banking and fintech leader for private company reporting, multi-entity reporting, connected bank reporting and sustainability. The bank is on a multiyear private to public journey while expanding globally and transitioning to a full-service regulated bank. The investment in Workiva as a core financial and regulatory reporting platform is central to supporting this transformation across tax reporting, sustainability disclosures and Basel Pillar 3 regulatory compliance. Second, we signed a multi 6-figure new logo deal with a U.S.-based global material science company. The customer purchased 4 solutions: SEC reporting, management reporting, controls management and sustainability. Following a highly competitive process, they chose Workiva over a multiple point solution vendor approach because of our ability to serve as their definitive system of truth. They recognized that no combination of disparate vendors could replicate our platform without sacrificing data connectivity, collaboration and trust. Workiva will support this company's rapid expansion through acquisition and their increased focus on global distribution. The deal was a co-sell and will be delivered by a regional advisory firm. I'll turn now to financial reporting. Demand continues to build as companies modernize complex global operating models, and the bar for what that requires keeps rising. Organizations need continuous access to accurate and traceable data to stay report ready and audit-ready not just at quarter end, but continuously throughout the quarter. Here are a few of the many Q2 wins worth highlighting. First, we signed a mid-6-figure new logo deal with a U.S.-based global government and defense technology services company. This customer purchased SEC reporting, multi-entity reporting, management reporting and sustainability. The primary driver for this opportunity was a global enterprise reporting transformation initiative that spans the company's operations in more than 90 countries. With complex and evolving reporting requirements across numerous jurisdictions, the customer sought a single platform capable of supporting global governance and local compliance. They selected Workiva because our unified platform enables them to meet the unique reporting mandates in the markets in which they operate, while empowering distributed teams worldwide to modernize and streamline their critical reporting processes. Second, we signed a mid-6-figure expansion deal with the U.S. regional bank. This loyal customer upgraded to our advanced tiers for both SEC reporting and sustainability, and they expanded across 3 additional solutions: tax reporting, living will and stress testing. The primary catalyst for this expansion was the bank's reclassification as a Category 3 institution. This significantly expanded its regulatory reporting obligations. The deal was a co-sell with a regional advisory firm. I'll move on now to one of our key vertical-specific solution categories, financial services. We continue to see strong demand as institutions navigate increasingly complex regulatory requirements. Here are a few highlights from the quarter in this vertical. First, we signed a high 6-figure account expansion deal with a large global private equity firm for fund reporting. This company signed on as a Workiva customer in Q3 of 2024. It first invested in our fund reporting solution in Q4 of 2025. Within 6 months, they have more than tripled the number of funds supported by the platform, and they now spend more than $1 million with Workiva. This deal is a great example of how our metric-based licensing model drives the opportunity for ARR expansion in a single solution. The deal was sourced and will be delivered by a regional advisory firm. Second, a Big Four professional services firm operating in Europe's largest investment fund market, signed a mid-6-figure expansion deal for fund reporting. The firm is expanding its use of Workiva across its fund administration business to support financial statement preparation and other fund reporting for a growing population of fund entities. This expansion enables the firm to consolidate reporting processes on to Workiva, driving greater standardization and scalability as its business grows. Next, I'd like to cover governance, risk and compliance. Risk and audit teams are navigating accelerating AI governance, geopolitical uncertainty and changing regulations, often with leaner teams than ever before. Many are finding that siloed approaches are no longer sustainable. Organizations are choosing Workiva to centralize enterprise risk, transform audit and controls and streamline compliance. With AI embedded across our GRC platform, including our Flowchart Visualizer and GRC Intelligence agents, we help teams identify emerging risks faster, uncover patterns earlier and respond with greater confidence. Let me share a few Q2 GRC deal highlights. First, we signed a mid-6-figure account expansion with a Fortune 500 specialty insurance holding company. This company added multiple solutions, including enterprise risk, compliance management and management reporting. Three years ago, this customer had just 2 Workiva solutions totaling just over $100,000. Today, they have expanded to 9 platform solutions, spending high 6 figures annually with Workiva. The additional GRC expansion was driven by the need to eliminate significant manual effort, consolidate technology across teams and establish a unified enterprise data strategy. The opportunity also displaced a stand-alone GRC point solution, further reinforcing the value of a connected platform. Second, we signed a multi 6-figure expansion deal with the U.S. Farm Credit Bank to build and scale its GRC program across audit management, controls management, compliance management, enterprise risk and operational risk management. This opportunity centered on displacing an incumbent GRC point solution in favor of the more comprehensive Workiva platform. The deal was a co-sell with a regional advisory firm. Another area worth highlighting is sustainability. As sustainability requirements move into implementation, we're seeing an important shift in the market. Organizations are moving beyond preparing for compliance to operationalizing trusted audit-ready reporting. As a result, responsibility is increasingly shifting to the office of the CFO. CFOs expect sustainability disclosures to be held to the same standards as financial reporting with the same traceability, governance, internal controls, assurance and auditability. That's changing buying behavior. Stand-alone sustainability solutions are no longer enough. Increasingly, customers are choosing Workiva as the unified platform to manage financial and nonfinancial reporting together using the same trusted data, governance and reporting processes. Our deal activity reflects this trend. Our largest sustainability wins almost always include one or more financial reporting solutions, whether that's ESEF for integrated reporting, SEC reporting for U.S. filers or increasingly multi-entity reporting. And the business driver is straightforward, companies reporting under CSRD, ISSB, California's SB 253 and other sustainability reporting requirements are often large multinational organizations with complex legal entity structures. They need trusted data, consistent governance and reporting processes that span both financial and nonfinancial information. This is where Workiva is differentiated. We are uniquely positioned to bring these reporting processes together in a single, trusted platform. Let me highlight a few sustainability deals from Q2. First, we signed a mid-6-figure new logo deal with one of Europe's largest state-owned energy companies serving roughly 20 million customers. This company purchased sustainability reporting, ESEF and controls management. The deal was driven by CSRD compliance requirements and was a competitive win over multiple point solutions. Workiva was the only solution to address the financial reporting, GRC and sustainability requirements on a single platform. The deal was a co-sell and will be delivered by a Big Four firm. Second, a global health care technology company signed a mid-6-figure expansion deal, upgrading to sustainability advanced. This customer also extended sustainability across multiple entities and added multi-entity financial reporting. The driver for this opportunity was ISSB compliance and the need to connect financial and nonfinancial data across their global legal entity structure. This was a competitive displacement of a stand-alone sustainability point solution. This is exactly the consolidation dynamic that we're seeing across our customer base. To conclude our customer highlights, let's turn to capital markets. Following the momentum we saw earlier in the year, the IPO market demonstrated continued strength in Q2. We supported a robust slate of public listings this quarter. Three in particular, reflect the breadth and the caliber of organizations that are choosing Workiva as they enter the public markets. SpaceX, one of the most complex and closely watched listings in market history. Cerebras, a leader in AI infrastructure and Quantinuum at the forefront of quantum computing. These aren't just marquee names. They represent exactly the kind of organizations that require a trusted audit-ready platform, before they file and throughout their life as a public company. The capital markets opportunity for us extends well beyond the S-1. We often engage with complex private companies years before they go public. We help them build the reporting infrastructure, controls framework and trusted data foundation that a public company requires. That early engagement matters. When these companies file their S-1, Workiva is already embedded. And when they become SEC registrants, they expand our addressable market for additional solutions, including SEC reporting, controls management and multi-entity reporting, regardless of whether we supported their initial listing. The private to public journey is an entry point. The platform relationship that follows is a long-term durable value driver. I'll turn now to product innovation. Workiva is in the midst of a fundamental transformation with AI. Trusted data has always been at the core of what we sell. And in an AI-driven world, that foundation becomes a structural advantage. Organizations can deploy AI broadly. What they cannot easily replicate is a platform where every data point is traceable, every output is auditable and every disclosure can be defended. That is what we are building on. And we are transforming our platform to be Agentic first, where AI doesn't assist at the margins, but executes directly within the high stakes workflows that define the office of the CFO. Workiva recently announced the release of new AI capabilities to our advanced solution tiers for SEC, for sustainability and for other solution offerings. These new AI capabilities bring regulatory-grade agents for sustainability disclosure, for financial tie-out and for disclosure peer benchmarking. These are not general purpose AI tools. They are purpose-built agents designed for environments where accuracy, auditability and explainability are nonnegotiable and every output produced is built to withstand scrutiny. The new sustainability disclosure agent drafts, checks and improves disclosures directly against sustainability frameworks, moving teams from requirements interpretation to review-ready drafts without leaving Workiva's governed environment. The result is faster cycle times, fewer interpretation gaps and disclosures that arrive at the review stage already grounded in the applicable standard. Workiva's newly enhanced tie-out agent performs comprehensive consistency checks across financial reports. It automatically flags discrepancies and surfaces AI-generated explanations for each variance. With this agent, teams can catch errors earlier, close faster and finish with a fully documented auditable trail that supports both internal review and external examination. And the new benchmarking agent brings peer analysis directly into the platform, enabling financial reporting teams to build custom peer groups, identify disclosure gaps and draft market-aligned disclosures with every insight traceable back to the source filing. Peer Intelligence is no longer a separate work stream. It's embedded in the location where the disclosures are built. Alongside these purpose-built agents, we recently introduced the Workiva MCP Gateway, a governed connectivity layer that extends the Workiva platform to the enterprise AI tools that organizations already use. Whether customers work with the leading frontier models or work with other custom-built agents, every AI connection through the Workiva MCP gateway inherits Workiva's identity, permissions, governance and data lineage. AI-generated work remains fully traceable back to its underlying source data, regardless of which model produced it. The MCP gateway creates a universal integration layer between enterprise AI and Workiva. Customers' preferred AI tools can securely interact with the live data and workflows in the platform rather than relying on manual exports or static document uploads. Instead of working from stale snapshots, AI can retrieve real-time governed context directly from the Workiva platform. The result is that organizations no longer need to choose between adopting best-of-breed AI and maintaining enterprise-grade governance. With the Workiva MCP gateway, they can use the AI of their choice while preserving the security, traceability and control that's required for business-critical reporting. We've also expanded AI capabilities at the platform level. Last week, we introduced persistent custom knowledge bases, allowing organizations to build a centralized repository from their own content and reference it across every AI interaction on the platform. Here are a few representative examples of how customers are using this capability. First, a financial reporting team can draft new disclosures grounded in prior filings and earnings documents already living in Workiva, maintaining consistency in language, structure and disclosure across quarters. Second, a regulatory reporting team at a bank can produce examiner-ready stress testing narratives by drawing on past DFAST and CCAR filings and a continuously updated library of regulatory guidance. And third, an internal controls team can execute audit workflows and reference their own policy and procedure library, so every AI output reflects the organization's standards, not generic assumptions. In each case, the output is grounded in content the organization has already vetted and stands behind. That distinction matters when the work product will be reviewed by auditors, regulators and investors. This is AI that makes outcomes traceable and defensible, built for the scrutiny that defines this space. We look forward to showcasing more product innovations at our upcoming Amplify Conference and our 2026 Investor Day in September. I'll close with one final thought. The demands on the office of the CFO will continue to grow in both scope and complexity. And we believe Workiva is differentiated by our ability to meet these demands. Our commitment is to keep earning that differentiation through disciplined execution and rapid innovation. I'd like to thank our customers for their trust and our partners for continuing to expand our reach. I'd also like to thank our employees for their dedication, their relentless focus and everything they do to serve our customers and move Workiva forward. With that, I'll turn the call over to Barbara to take you through our financial results and our outlook for the rest of the year. Barbara Larson: Thanks, Julie. I'll start with an overview of our Q2 financial and key metric highlights, followed by our guidance for the third quarter and the full year 2026. Q2 once again delivered broad-based demand across our portfolio of solutions. Second quarter total revenue was $255 million, up 19% year-over-year and beating the high end of our guidance range by $3 million. In line with expectations, foreign currency fluctuations had a minimal impact on our reported top line growth rate. This was a departure from the prior 4 quarters where reported results included a 1- to 2-point tailwind from foreign currency fluctuations. Subscription revenue was $236 million, up 19% year-over-year. Both new customers and account expansions continue to contribute to our revenue growth with new customers added in the last 12 months accounting for approximately 45% of the increase in Q2 subscription revenue, consistent with our expectations. As of quarter end, our current remaining performance obligations were $789 million, up 18% over the prior year. This growth, which reflects the revenue we expect to recognize in the next 12 months includes an approximately 1 percentage point negative impact due to foreign currency. Professional services revenue was $19 million, up 12% over the prior year due to an outperformance in XBRL services. On to productivity. As Julie mentioned, our non-GAAP operating margin for the quarter was 16.8%. This beat the high end of our guidance by 180 basis points and was a 1,300 basis point improvement over Q2 of last year. This was driven by the revenue outperformance and our continued focus on operational rigor and productivity as we scale the business. I'll talk more about the significance of this in just a moment. Moving on to our performance metrics for the quarter. We had 6,750 customers at the end of Q2 2026, an increase of 283 customers year-over-year. Our gross retention rate was 97%, exceeding our 96% target. And our net retention rate was 111% for the quarter. Consistent with our reported revenue growth, the impact from foreign currency was minimal. In line with our expectations, both our reported and constant currency NRR exceeded our target of 110%. In Q2 2026, 76% of our subscription revenue was generated from customers with multiple solutions, up from 71% in Q2 2025. Growth in our large contract customer cohorts also reflected strong momentum. As of the end of the first quarter, we had 2,690 contracts valued at over $100,000 per year, up 20% from the prior year. The number of contracts valued at over $300,000 totaled 656, up 34% year-over-year. And the number of contracts valued at over $500,000 totaled 276, up 33% from Q2 2025. Turning now to the balance sheet and cash flows. As of June 30, 2026, cash, cash equivalents and marketable securities were $815 million, a decrease of $48 million from the prior quarter. This was primarily driven by our opportunistic repurchase of 2,492,000 shares of our Class A common stock for $123 million. As of quarter end, we have repurchased a total of $244 million under our $350 million share repurchase program with $106 million remaining as of quarter end. Moving on to guidance. For the third quarter of 2026, we expect total revenue to range from $260 million to $262 million. We expect services revenue to be up slightly compared to Q3 2025, and we expect non-GAAP operating margin to be in the range of 17% to 17.5%. For the full year 2026, we expect total revenue to range from $1.040 billion to $1.044 billion. For the back half of the year, our guidance assumes foreign currency rates remain roughly in line with June 2026 levels, which would result in a minimal year-over-year FX impact to projected revenue growth for both Q3 and Q4. We continue to expect subscription revenue to grow approximately 19% year-over-year, and we expect total services revenue to be up slightly year-over-year. We are raising our non-GAAP operating margin outlook by 150 basis points versus the high end of our prior guidance and now expect it to be approximately 18%. This over 800 basis point year-over-year improvement reflects our ongoing commitment to drive operating leverage as we scale the business. This is a significant milestone that reflects operational rigor across the company to become more productive faster. There are many examples, including in sales, where we are refining our go-to-market around higher-value platform opportunities. In R&D, where we have embedded AI across our teams and accelerated our speed of innovation and company-wide, where we have improved productivity and embedded AI into workflows that previously required significant manual effort. The resulting outperformance means we now expect to achieve our 2027 medium-term operating margin target a full year early. And our improved productivity extends to cash flow as well. We are raising our 2026 free cash flow margin outlook by 100 basis points to approximately 21% for the year. To wrap up, Q2 was a strong proof point that growth and profitability are not a trade-off at Workiva. Our results reflect an operating model that is working and a platform that continues to earn the trust of the most sophisticated finance organizations in the world. We're entering the second half of 2026 from a position of strength with the financial flexibility to keep investing in growth and innovation. We look forward to sharing more at our Investor Day in September. With that, I'll turn the call over to the operator for Q&A. Operator: Your first question comes from Alex Sklar from Raymond James. Alexander Sklar: Julie, maybe first one for you. Just on the overall demand environment and budgets broadly. Can you talk about what you saw in the second quarter from a sales cycle and customer budget or deal size perspective relative to some of the prior quarters? And then also, as you spoke about the growing complexities your customer base and prospects are facing, any change to how you're setting up the go-to-market organization to kind of meet that value prop? Julie Iskow: Sure. Thank you for the question. Appreciate it. I think it's top of mind, of course, what's going on in the demand environment. I will say, overall, the demand environment really has remained relatively consistent throughout the year. Still a dynamic environment, we're still seeing changing complex regulatory requirements. We're seeing the evolving expectations around AI and AI governance. But for us, these trends really reinforce the need for what we do. In fact, we've continued to perform well across the portfolio in Q2 and second half. And it's actually for us a really good proof point for our relevance in the market. I will say, though, maybe worth mentioning that our field team has highlighted a trend that deals do have more scrutiny and there are maybe more approvers and more rigor at the legal level. But we're very much aware of this, prepared and being aware and being prepared makes a real difference in our execution. So it's not just in the field, but in operations, including our legal team who is very sales focused and commercially and customer focused. So we are prepared for that next level of rigor. But I do want to mention that our team is seeing that out in the field. But overall demand environment is very consistent over the prior quarters. So you also asked about our go-to-market motion. Look, that's very consistent with prior quarters. For us, it's all about the platform. It is multi-solution. It's multi-category, leveraging our partners for influenced and sourced deals, pushing on those larger account expansions and so forth. So not -- those motions for us are how we've been we're executing on our strategy. So not a whole lot different there, we have a broad portfolio of solutions that we continue to work with our customers to bring value. And on the deal cycles, and you asked about that, too. And it ebbs and flows up and down. But actually, last quarter, this quarter, we saw shortened deal cycles. So that's very encouraging for us. So thanks for highlighting that. Alexander Sklar: Okay. Great color there, Julie. And maybe just a follow-up for you or for Barbara. Just in terms of the packaging and the advanced bundle opportunity you've spoken to in the past, any change in adoption of those advanced packages on renewal through the second quarter or where you stand on penetration of those advanced packages across the base? Julie Iskow: Yes. We are very encouraged with the traction of the premium tiers and our good, better, best pricing. Still early days. We just began rolling those out over the past year or so. So still watching the uptick. But as I'd mentioned, we're getting a decent price premium on those, and we've talked about that being north of 20%. We're encouraged and watching more and more of our base move into those and selling them as we land as well. So very encouraged by that monetization framework. Thanks for highlighting that, too. Operator: Your next question comes from Allan Verkhovski from BTIG. Nicholas Dannewitz: This is Nicholas Dannewitz on for Allan Verkhovski. Just one on our end here. So we thought the subscription revenue of 19% is pretty strong for a company of your size. What's giving you guys the confidence in your growth durability given you need about a 17% subscription revenue CAGR to reach the midpoint of your 2030 total revenue target? Julie Iskow: I can start the ball here and just say, as I mentioned, we have a very broad portfolio of solutions, Nick. And I like that you asked the question because it's a chance to talk about that. I mean, again, every quarter, it may be a few of them are stronger then, others dominate. But for the most part, it is very broad-based across the portfolio of solutions that we offer. And we're seeing a lot of traction. Our partner ecosystem is continuing to get stronger. Our expansion motion is very healthy and continues to get stronger, multi-solution, multi-category, I mean we're just -- we're executing, and it's moving in the right direction for us, and we feel very strong in terms of our execution. Our go-to-market machine is getting stronger. So it really the broad-based platform, the need -- the customer need in the market, as I highlighted in my prepared remarks and of course, just our own execution getting stronger. And Barbara, do you want to comment? Barbara Larson: Yes. I'll just add one more thing in there. So international is an additional growth lever for us. So like Julie said, very broad-based. We're not dependent on any single lever, deep portfolio, new logos expansion and then international as well. Thanks for the question. Operator: Your next question comes from Andrew DeGasperi from BNP Paribas. Andrew DeGasperi: I wanted to ask a question, Julie, on the financial services opportunity in particular the fund reporting product. You highlighted for 2 large deals. And I'm just wondering, can you elaborate a little more in terms of how that's progressing? Are you seeing ramped up adoption? Is there anything that's accelerating that? And I also noticed that you mentioned North America and Europe as driving that demand. So I would love to have additional color on that. Julie Iskow: Sure. Another area we're very encouraged is our financial services vertical. We have a strong sales organization there. We've been increasing in our footprint there, both in U.S. but also in Europe as you mentioned. The fund reporting, we had private funds and we rolled out a public fund reporting capability over the past year. And we've been out in the market selling and we're encouraged by the traction. A lot of large deal sizes around it. But I will say that particular one public fund still early, but again, very encouraged. And it does play into the area that we play best in, which is, of course, large enterprise. Andrew DeGasperi: That's helpful. And then I just wanted to ask a question on net retention rate. So if my math is right, it did improve versus last quarter modestly. So just wondering, was there anything in particular that helped drive that? And obviously, if we exclude foreign FX in that number. Is it -- was it something specific? Any products? Or was it broad-based? Barbara Larson: So NRR was 111% for the quarter. And just one thing to keep in mind is we did have a 2-point tailwind to NRR in Q1 from FX. And in Q2, so this quarter, that tailwind went away. So if you look at NRR on a constant currency basis, it was relatively steady on a quarter-over-quarter basis and was again above our 110% target. Operator: Your next question comes from Brett Huff from Stephens Inc. Brett Huff: Two questions. One, just kind of a derivative of the NRR. Can you talk a little bit about, I think you said there were some XBRL benefits. And I wanted to also understand what kind of the SEC reporting IPO benefits you might have seen in the quarter? And if the expectations for the annual growth guide now include some more that weren't in there before? And then my second question is more of a leading question, which is congrats on the 18%. I think your long term is 24%. Any thoughts on maybe raising the ceiling on that 24% or even just some qualitative thoughts? Barbara Larson: So I'll take the question on services or XBRL. So in Q2, we did see services revenue come in a bit higher than expected. And some of that was onetime. It was specifically around 11-K filings that happen annually. So we're not expecting it or planning on it repeating in the back half. Julie Iskow: Thanks, Barbara. And I will just talk about cap markets for a moment. It was actually a very fun quarter for us market-wise. We were encouraged to see continued strength of the IPO market. And as I mentioned in my prepared remarks, we supported a very robust slate of public listings this quarter. I mentioned SpaceX and Cerebras and Quantinuum. And these companies really represent exactly the kind of organizations that require a trusted audit-ready platform. So you asked about the revenue and the guidance revenue perspective, it was very much in line with our expectations. Back in February, we said we were optimistic about the IPO momentum going into '26, and we did incorporate that into our guide. So I would say that H1 of this year was better than H1 of last year, but very much in line with our expectations. So we are taking it into account part of the guide and very consistent with what we said in both February and May, in fact. Barbara Larson: And thanks for highlighting that we now expect to achieve our medium-term operating margin target of 18% in 2026. So that's a full year ahead of schedule. Naturally, that shifts our focus to our 2030 framework, which we've outlined in our investor deck. We're not planning to update that at this time. Our 2030 targets remain unchanged, but we continue to remain focused on staying disciplined, scaling efficiently and executing against this plan, that we've laid out. We feel really good about the progress we've made. Brett Huff: Well, congrats to being able to grow and expand margins. Appreciate it. Operator: Your next question comes from Steve Enders from Citi. Steven Enders: Maybe just to start, just would like to ask a little bit about some of the newer agent products that you've been rolling out and wondering kind of what the early feedback has been from customers and how you're viewing the monetization potential for those solutions now that they're just starting to get out into the marketplace. Julie Iskow: Sure. And thanks for highlighting our release -- newly released product capabilities around AI. We did one very recently, as recent as last week, focused on both solutions and our platform. And I'll just -- I'll highlight for everyone, there's really a common thread around all of these announcements and prior releases as well that we're helping our customers just complete work faster with greater confidence by enabling the platform to do more of the work on their behalf. And of course, which is our great differentiator, maintaining the governance and control and traceabilities that our customers really need and expect. So we did introduce a number of agents, purpose-built agents, the tie-out agent, benchmarking agent, sustainability disclosure agent and so forth. And along with Workiva Knowledge, which is core now into the platform. And we put those into our premium tiers and our good, better, best model. And we have seen excellent traction in those premium tiers since we began doing that over the year, 1.5 years that they've been out, and we continue to see that traction, whether we're going back to customers at renewal or even mid-cycle because they would like to adopt some of that AI capability and other premium features that we have available. So again, we're very pleased with the initial traction in the market, and our expectation is that we continue to bring our base up to the higher tiers within that monetization framework, and we will continue to roll out the capabilities to, again, help our customers do more the work using our platform. Steven Enders: Okay. That's helpful context there. And then maybe just on some of the moving pieces with FX rates, and I appreciate you calling those things out. But I guess anything that we should be kind of keeping in mind for what that means for either the rest of the year or anything to keep in mind for like billings or free cash flow dynamics as well? Barbara Larson: Yes. We have assumed for the back half of the year on our top line metrics and our numbers that our currency remains relatively flat with the rates that we saw at the end of June, so the end of the quarter. Steven Enders: Okay. And sorry, just on, I guess, seasonality, anything we should keep in mind for billing or free cash flow timing for the rest of the year? Barbara Larson: Pretty in line with historical trends. Thank you. Operator: Your next question comes from Patrick McIlwee from William Blair. Patrick McIlwee: A nice quarter. So my first question, I understand that your new CRO has been driving a variety of sales and restructuring efforts since he joined kind of moving towards some best practices that he sees within the sales force and notably some deeper account engagement with your sales reps. So my question is now that he's had a few quarters to establish some of those efforts, are you seeing any notable pickup or changes in your sales force execution? And is there anything worth calling out in terms of execution between new logos and then existing customer expansion? Julie Iskow: Yes. I think Michael Pinto, we welcomed him very early in the year, and he is doing exactly what we have asked them to do and what we expect him to do. I mean, clearly, we are holding accountable for delivering bookings, but we're also very focused on the metrics that will lead to long-term durable growth, and he is very well aware of that. So about improving sales efficiency, increasing pipeline quality, growing our large enterprise accounts, accelerating rep productivity, expanding the contribution from our partner ecosystem. So I would say, ultimately, he's very busy building a high-performing go-to-market organization that's for us repeatable and scalable and just executing at a high level. And he has made progress on that, absolutely. That's how we think about his success. In terms of new logos, I will tell you that it was our strongest quarter for net new customer additions in the past 7 quarters. It's a metric that we look at and we disclose consistently, so you can see that. I will also say that our focus is more on just adding those new customers, though you asked about that. We're increasingly winning larger, higher-value customers when we land that are ultimately adopting more of the Workiva platform, but they do so too from the outset, which is important for us. So those lands are often multi-solution 6-figure relationships with significant long-term expansion opportunities. So I will say those new customers are in absolute number are larger, but also the customers themselves are buying more at the outset. We're also seeing average deal size for those customers increase year-over-year as well, which we think is another good indicator of the quality of the business that we're bringing in. Patrick McIlwee: That's all really encouraging, thanks. And then just to follow up while we're on the topic, I wanted to ask if there's anything you can share in terms of your overall go-to-market staffing, if that's growing or relatively steady. And then I understand in the past, you've moved some reps around to kind of the best available opportunity set. So I'm just wondering if at this point, you feel you're structured appropriately across your main product suites? Julie Iskow: We are moving towards that structure. We've been very clear about not wanting to disrupt our go-to-market execution and results. We want to keep the growth going. So that isn't a onetime Michael coming in for a couple of quarters and being done. That continues to evolve and as the market changes and grows, and we get better as a company, too, in our execution. But you mentioned the hiring, we have been hiring and we're going to continue to see that hiring in strategic areas that support our growth and innovation priorities as well. So we will be adding more of the customer-facing roles where we see opportunities to expand. I would expect our hiring to remain very disciplined with the mix of talent continuing to evolve as the strategy evolves. But I do want to make clear, we are bringing in new talent. We are putting them in strategic areas in go-to-market. So even though you see our new hire numbers are relatively flat, we are managing talent and ensuring we have the right people in the right roles. And I think that's very important to be blending that with our new hires. So it should give you a feel for how we're moving forward with people and talent. Operator: Your next question comes from Rob Oliver from Baird. Robert Oliver: Julie, for you. So I guess not having a seat-based model kind of frees you guys up from the kind of pain here of having to convert customers to a new model, which we're seeing across many players in the financial suite. And it really allows you to focus on this kind of good, better, best opportunity with value you're already delivering. So I'd love to get a better sense from you. I know that some of the Agentic offerings, which you've announced are going to be in the upper tiers rightfully so. But how do you think about stratifying those in a way where customers get a taste for the value and where you can drive greater usage and ultimately higher contract value when you come to these renewal periods? Julie Iskow: You nailed it. Thank you for highlighting that we are not seat-based. And we've been using a value-based pricing model for years. And I say that again because it does play into the tiering, so if we have a customer in an advanced tier, they have been paying that even before AI, they have been paying based on value, whether it's number of controls, number of entities, size of company and so forth. So they would have a different price in that higher more premium tier. So that is how we are capturing that value. And our approach, you got it there, too. I mean really, our monetization isn't changing as we roll out these capabilities right now, and it's quite straightforward using that good, better, best methodology or framework. So that is how we are capturing the benefit. It's not everyone pays the same price in the premium tier. We are still -- it is all about value and usage on the platform, and that is how we're charging those even within the same tier. Robert Oliver: Great. And then, Barbara, just quickly for you. Just on the sales efficiency side where you guys have been making a lot of progress. Just wondering if there's any additional things you could point to in terms of whether it be AI tools or sales efficiency initiatives that you've done in conjunction with your new CRO, where sort of gives you confidence on the continued trajectory to contribute to that margin improvement? Barbara Larson: Yes, Rob, thanks for the question. It continues to be like a work in progress as we move to platform sellers. So that's one of the things that we are working through. Absolutely, AI is part of the efficiency story there. But the one thing I don't want to get lost is we do continue to invest in sales and marketing and a lot of those efficiencies that we also will continue to drive, we will invest back into the business with more feet on the street to really go after that opportunity that we see in front of us. Operator: That does conclude our question-and-answer session, and that does conclude our conference for today. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Workiva, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Workiva wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Workiva. The Motley Fool has a disclosure policy. Workiva (WK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Workiva Inc.? Here are five stocks we like better. Strong Q2 performance: Workiva reported revenue of $255 million, up 19% year over year and above guidance, while non-GAAP operating margin reached 16.8%. The company raised full-year margin guidance to approximately 18%, achieving its 2027 target a year early. Healthy customer and platform momentum: Customers grew to 6,750, gross retention reached 97% and net retention remained above the 110% target. Larger contracts and multi-solution adoption increased, supported by demand for reporting, compliance, sustainability and AI-governance tools. Outlook raised: Workiva projects full-year revenue of $1.040 billion to $1.044 billion, subscription growth of about 19% and free-cash-flow margin of approximately 21%. The company repurchased $123 million of shares in Q2, with $106 million remaining under its authorization. Workiva (NYSE:WK) reported second-quarter 2026 revenue of $255 million, up 19% from a year earlier and $3 million above the high end of its guidance range, as subscription growth and operational efficiency supported higher profitability. Subscription revenue rose 19% year over year to $236 million, while professional services revenue increased 12% to $19 million, driven by stronger-than-expected XBRL services activity. Chief Financial Officer Barbara Larson said foreign exchange had minimal impact on reported growth during the quarter, contrasting with the tailwind experienced in the prior four quarters. → No Hangover: Revisiting Microsoft One Week After Earnings The company reported a non-GAAP operating margin of 16.8%, exceeding the high end of its outlook by 180 basis points and improving 1,300 basis points from the second quarter of 2025. Workiva raised its full-year non-GAAP operating margin forecast to approximately 18%, reaching a target previously included in its 2027 operating model a year ahead of schedule. Workiva ended the quarter with 6,750 customers, an increase of 283 from a year earlier. Gross retention was 97%, above the company’s 96% target, while net retention was 111%. Larson said constant-currency net retention was relatively steady sequentially and remained above Workiva’s 110% target. → MarketBeat Week in Review – 08/03 - 08/07 Current remaining performance obligations, which represent revenue expected to be recognized over the next 12 months, totaled $789 million, up 18% year over year. The figure included an approximately one-percentage-point negative foreign-currency impact. The company also cited continued growth in larger customer relationships. Contracts valued at more than $300,000 annually increased 34% year over year to 656, while contracts above $500,000 rose 33% to 276. Workiva said 76% of subscription revenue came from customers using multiple solutions, compared with 71% a year earlier. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Chief Executive Officer Julie Iskow said demand remained consistent through the year despite a dynamic environment marked by evolving regulations and increased focus on artificial intelligence governance. She said sales teams are seeing more deal scrutiny, additional approvers and more legal review, but added that Workiva has prepared its field, operations and legal teams for that process. “Deals do have more scrutiny, and there are maybe more approvers and more rigor at the legal level,” Iskow said. “We’re very much aware of this, prepared, and being aware and being prepared makes a real difference in our execution.” Iskow also said deal cycles shortened during the past two quarters. The company’s strongest net-new customer addition quarter in the past seven quarters was accompanied by larger initial customer relationships, including more multi-solution and six-figure deals, she said. Management emphasized demand for a unified platform that combines financial reporting, governance, risk and compliance, sustainability reporting and other workflows. Iskow said finance leaders are being asked to govern data and AI, automate manual processes, deliver faster insights and maintain auditability amid a more complex regulatory environment. Workiva highlighted growth across financial reporting, fund reporting, governance risk and compliance, and sustainability offerings. The company cited examples of customers expanding their use of the platform to support regulatory reporting, multi-entity reporting, controls management, tax reporting, enterprise risk and sustainability disclosures. In financial services, Iskow said Workiva has expanded its presence in the U.S. and Europe and is seeing encouraging traction for its Fund Reporting products. She described the public-funds offering as still in its early stages but said the company is encouraged by deal sizes and the product’s fit with large enterprises. The company also said sustainability buyers are increasingly seeking to connect financial and non-financial reporting processes. According to Iskow, larger sustainability wins commonly include financial reporting solutions, as organizations address requirements such as CSRD, ISSB and California’s SB 253. Workiva recently introduced AI capabilities in advanced solution tiers, including agents for sustainability disclosure, financial tie-out and disclosure peer benchmarking. The company also launched the Workiva MCP Gateway, which it described as a governed connectivity layer for linking Workiva data and workflows with enterprise AI tools. Iskow said the capabilities are designed to preserve identity controls, permissions, governance and data lineage. Management said adoption of premium product tiers remains early but is gaining traction. Iskow said the company has achieved a price premium of more than 20% for the tiers and is seeing customers upgrade at renewal and, in some cases, during contract periods to access AI and other advanced capabilities. For the third quarter, Workiva expects total revenue of $260 million to $262 million and a non-GAAP operating margin of 17% to 17.5%. Services revenue is expected to be slightly higher than in the third quarter of 2025. Full-year revenue is projected at $1.040 billion to $1.044 billion. Full-year subscription revenue is expected to grow about 19% year over year. Full-year services revenue is expected to increase slightly. Full-year non-GAAP operating margin is projected at about 18%. Free cash flow margin guidance was raised by 100 basis points to approximately 21%. Larson said the second-half outlook assumes foreign exchange rates remain roughly in line with June 2026 levels, resulting in minimal year-over-year foreign-currency impact on projected revenue growth in the third and fourth quarters. As of June 30, Workiva had $815 million in cash equivalents and marketable securities, down $48 million from the prior quarter. The company repurchased 2.49 million Class A shares for $123 million during the quarter. Workiva has repurchased $244 million under its $350 million authorization, leaving $106 million available at quarter end. While the company now expects to meet its 2027 operating-margin target early, Larson said Workiva was not updating its 2030 financial framework. She said the company remains focused on disciplined investment, sales productivity, platform selling and growth opportunities across its portfolio and international markets. Workiva, originally founded as WebFilings in 2008, delivers a cloud-native platform designed to streamline and connect data, documents and teams for reporting and compliance. Its flagship Workiva platform supports a range of applications including financial reporting, regulatory filings, internal controls documentation, risk management and environmental, social and governance (ESG) disclosures. By centralizing data and automating workflows, the company helps organizations improve accuracy, transparency and auditability across critical reporting processes. The Workiva platform offers modular solutions that integrate with existing enterprise systems and data sources. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Workiva Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 19% revenue growth driven by broad-based demand across the portfolio, particularly in large enterprise contracts exceeding $300,000 and $500,000 annually. Attributed significant margin expansion to disciplined execution and deliberate organizational changes, reaching the 2027 operating model target a full year early. Observed a fundamental shift in the Office of the CFO, where leaders are transitioning from enterprise software users to builders of AI agents and automated workflows. Positioned the platform as a definitive 'system of truth' for integrated financial and sustainability reporting, displacing point solutions that lack data connectivity. Leveraged a metric-based licensing model to drive ARR expansion, exemplified by a private equity client tripling fund support within six months. Maintained a structural advantage in the AI market by grounding Agentic capabilities in traceable, auditable, and regulatory-grade data environments. Reported the strongest quarter for net new customer additions in seven quarters, with new logos increasingly landing as multi-solution, six-figure relationships. Raised full-year 2026 non-GAAP operating margin guidance to 18%, reflecting accelerated productivity gains from AI embedding and go-to-market refinements. Anticipates consistent demand despite increased legal scrutiny and more rigorous approval processes in the field for large-scale deals. Assumes minimal foreign currency impact for the remainder of 2026, with guidance based on June 2026 exchange rates. Focusing on 'Agentic-first' platform transformation, where AI executes directly within high-stakes workflows rather than just assisting at the margins. Expects continued growth durability through international expansion and the monetization of premium tiers containing advanced AI capabilities. Supported high-profile public listings including SpaceX and Cerebras, reinforcing the platform's role in the private-to-public infrastructure journey. Introduced the Workiva MCP Gateway to allow secure integration of third-party enterprise AI tools while maintaining internal data lineage and governance. Noted a 1300 basis point year-over-year improvement in operating margin, driven by revenue outperformance and operational rigor. Executed an opportunistic repurchase of 2,492,000 shares for $123 million, with $106 million remaining in the current authorization. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while the overall demand environment remains consistent, there is increased rigor and more approvers involved at the legal level. Despite increased scrutiny, deal cycles actually shortened during the quarter, which management viewed as a positive indicator of execution. Workiva is utilizing a 'good, better, best' pricing framework, embedding new AI agents into premium tiers to drive a price premium north of 20%. The model avoids seat-based pricing, instead focusing on value-based metrics like the number of entities or controls managed on the platform. Growth is supported by a broad portfolio where different solutions dominate in different quarters, reducing dependency on any single product. International expansion remains a key secondary lever for maintaining the growth trajectory toward 2030 targets. The new CRO is focusing on shifting reps toward 'platform selling' and increasing the contribution from the partner ecosystem. While overall headcount remains relatively flat, the company is aggressively recycling talent into strategic, customer-facing roles to improve efficiency.

This article first appeared on GuruFocus. Total Revenue: $255 million, up 19% year over year. Subscription Revenue: $236 million, up 19% year over year. Professional Services Revenue: $19 million, up 12% year over year. Non-GAAP Operating Margin: 16.8% for Q2, a 1,300 basis point improvement year over year. Current Remaining Performance Obligations (cRPO): $789 million, up 18% year over year. Customer Count: 6,750 customers, an increase of 283 year over year. Gross Retention Rate: 97%. Net Retention Rate: 111%. Large Contract Cohorts: Contracts over $100,000 grew 20% to 2,690; contracts over $300,000 grew 34% to 656; contracts over $500,000 grew 33% to 276. Cash and Marketable Securities: $815 million as of June 30, 2026. Share Repurchases: Repurchased 2,492,000 shares for $123 million in Q2. Full Year 2026 Revenue Guidance: $1.040 billion to $1.044 billion. Full Year 2026 Non-GAAP Operating Margin Guidance: Approximately 18%. Full Year 2026 Free Cash Flow Margin Guidance: Approximately 21%. Warning! GuruFocus has detected 4 Warning Signs with WK. Is WK fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Workiva Inc (NYSE:WK) delivered strong Q2 2026 results, with total revenue and subscription revenue both growing 19% year-over-year, beating the high end of guidance. The company achieved a non-GAAP operating margin of 16.8% in Q2, a 1,300 basis point improvement year-over-year, and raised its full-year 2026 margin guidance to 18%, hitting its 2027 target a year early. Demand remains broad-based, with strong growth in large contract cohorts: contracts over $300,000 grew 34% and contracts over $500,000 grew 33% year-over-year. The company is seeing strong traction with its new AI capabilities and premium tiers, which are driving higher-value deals and expansion opportunities. Workiva Inc (NYSE:WK) is capitalizing on a strong IPO market, supporting high-profile listings like SpaceX, and sees the private-to-public journey as a long-term durable growth driver. The company is successfully displacing standalone point solutions in GRC and sustainability, as customers consolidate onto its unified platform, evidenced by multiple competitive wins in Q2. The company noted that deals are facing more scrutiny and require more approvers and legal rigor, which could lengthen sales cycles in the future. Foreign currency fluctuations had a minimal impact on Q2 revenue growth, a departure from the prior four quarters which had a 1-2 point tailwind, and are expected to remain a headwind. The company's net retention rate (NRR) of 111% was flat on a constant currency basis, as the previous FX tailwind has now dissipated. Professional services revenue growth was partly driven by one-time XBRL services related to annual 11K filings, which are not expected to repeat. While the company is hiring, it remains disciplined, and the pace of new customer additions, while the strongest in seven quarters, still reflects a competitive and dynamic demand environment. The company's 2030 operating margin targets remain unchanged, with no plans to raise them despite achieving the 2027 target early, which may signal a limit to near-term margin expansion expectations. Q: Can you talk about what you saw in the second quarter from a sales cycle and customer budget or deal size perspective relative to prior quarters, and any changes to the go-to-market organization? A: Julie Iskow (CEO) stated that the overall demand environment remained relatively consistent throughout the year, despite a dynamic market with complex regulatory requirements and evolving AI expectations. She noted that deals are facing more scrutiny and approvers, but the company is prepared for this rigor. The go-to-market motion remains focused on the platform, multi-solution deals, and leveraging partners. Notably, the company saw shortened deal cycles in Q2, which is encouraging. Q: What's giving you confidence in your growth durability given you need about a 17% subscription revenue CAGR to reach the midpoint of your 2027 revenue target? A: Julie Iskow (CEO) attributed confidence to the broad-based demand across the company's portfolio of solutions, a strengthening partner ecosystem, and a healthy expansion motion. Barbara Larson (CFO) added that international expansion is an additional growth lever, emphasizing that the company is not dependent on any single driver, with growth coming from a deep portfolio, new logos, and expansions. Q: Can you elaborate on the progress of the fund reporting product in financial services, particularly regarding adoption and regional demand? A: Julie Iskow (CEO) expressed encouragement with the financial services vertical, noting a strong sales organization in the U.S. and Europe. The fund reporting solution, including the newer public fund reporting capability, is seeing large deal sizes and good traction, particularly in the large enterprise segment, which is the company's core strength. Q: Was there anything particular that helped drive the net retention rate (NRR) improvement, and was it product-specific or broad-based? A: Barbara Larson (CFO) clarified that NRR was 111% for the quarter. She noted that while Q1 had a two-point tailwind from FX, that tailwind went away in Q2. On a constant currency basis, NRR was relatively steady quarter-over-quarter and remained above the 110% target. Q: Can you talk about the XBRL benefits and SEC reporting IPO benefits seen in the quarter, and any thoughts on raising the long-term operating margin target of 24%? A: Barbara Larson (CFO) explained that Q2 services revenue came in higher than expected due to one-time annual 11K filings, which are not expected to repeat. Julie Iskow (CEO) added that the IPO market strength was in line with expectations incorporated into the guidance. Regarding margins, Larson noted that achieving the 18% target a year early shifts focus to the 2030 framework, but the company is not planning to update those targets at this time. Q: What has been the early feedback on the newer agent products, and how are you viewing the monetization potential for these solutions? A: Julie Iskow (CEO) highlighted the release of purpose-built agents (tie-out, benchmarking, sustainability disclosure) and platform-level capabilities like persistent custom knowledge bases. These are included in the premium tiers of the "good, better, best" pricing model. The company has seen excellent traction in these premium tiers since their rollout, with customers adopting them at renewal or mid-cycle, and expects to continue moving the base to higher tiers. Q: Are you seeing any notable pickup or changes in sales force execution under the new CRO, and how is execution between new logos and existing customer expansion? A: Julie Iskow (CEO) confirmed that the new CRO, Michael Pinto, is focused on improving sales efficiency, pipeline quality, growing large enterprise accounts, and expanding partner contributions. Q2 was the strongest quarter for net new customer additions in the past seven quarters. New customers are landing with larger, multi-solution, six-figure relationships, and average deal size for new customers is increasing year-over-year. Q: Is your go-to-market staffing growing or relatively steady, and do you feel you are structured appropriately across your main product suites? A: Julie Iskow (CEO) stated that the company is moving toward an optimal structure without disrupting execution. Hiring continues in strategic areas to support growth and innovation, particularly in customer-facing roles. While new hire numbers are relatively flat, the company is managing talent to ensure the right people are in the right roles, blending new talent with existing staff. Q: How did you think about stratifying the agentic offerings in the upper tiers to drive usage and higher contract value at renewal? A: Julie Iskow (CEO) explained that the company uses a value-based pricing model, not a fee-based one. Customers in advanced tiers already pay based on value metrics like number of controls, entities, or company size. The monetization approach remains straightforward with the "good, better, best" framework, where pricing within the same tier is still based on value and usage, ensuring customers pay for the value they receive. Q: Are there any additional things you can point to in terms of AI tools or sales efficiency initiatives that give you confidence in the continued trajectory to contribute to margin improvement? A: Barbara Larson (CFO) noted that the transition to platform sellers is a work in progress, and AI is part of the efficiency story. However, she emphasized that the company continues to invest in sales and marketing, and the efficiencies gained will be reinvested back into the business with more "feet on the street" to pursue the market opportunity. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

(Bloomberg) -- SpaceX’s first earnings report following its blockbuster initial public offering is one of the most anticipated events of the summer on Wall Street. Whether it’ll give investors a reason to buy the sinking stock is another matter. Most Read from Bloomberg Beer Dynasty Families Sell €731 Million Stake in AB InBev Apple’s New CEO Taps Retired Hardware Executive for Management Team Taco Bell Met With Michigan on Parasite Weeks Before Recall Mamdani Dismisses Business Leaders Advising NYC’s Mayor’s Fund S&P 500 Closes Near Record High on US-Iran Hopes: Markets Wrap Elon Musk’s satellite, space and artificial intelligence company went public at $135 in June, and the shares have been on a roller coaster ride ever since, shooting up to $225 in the first days of trading and then plunging below the offering price. They closed Monday at $114.53, down 15% from the IPO and 49% from their high on June 16, erasing more than $1 trillion in market value from that peak. Earnings will give investors a chance to reassess the stock. The problem is SpaceX isn’t profitable and has a very speculative business at this point, so the results may end up raising more questions than they answer. With the shares still trading at a sky-high valuation despite the selloff, it will be difficult to entice new buyers. “There is so much that’s in the future of the SpaceX story, so much that hasn’t been done yet, or ever, so there’s nothing to make you comfortable,” said Drew Cupps, portfolio manager and head of the 5Perspectives Growth Team investment group at Polen Capital, which owns a small position in the company. “There’s not a lot of here and now. There’s no, look at last year to justify what you should pay now.” To make matters even more challenging for the stock, a flood of fresh SpaceX shares also is about to hit the market, as the first of many lockups that ban early investors from selling expires two days after the earnings report. As many as 911.5 million SpaceX shares worth more than $100 billion will be released on Aug. 6. And that’s just the start as billions of additional shares will be eligible for trading before the end of the year. All of which will weigh on the stock price simply based on the market’s supply and demand function. “It’s a total mess,” said Ken Mahoney, chief executive officer of Mahoney Asset Management. Wall Street expects SpaceX to report a loss of 24 cents per share in the second quarter on $6.8 billion of revenue. The results have been somewhat of a moving target, however, because so little information about the business is available. Analysts have widened their estimates for the company’s loss by 18% in the past month. “I have very little confidence in those estimates,” said Jim Lebenthal, chief market strategist at Cerity Partners. “I don’t mean this obnoxiously, but I think they’re mostly licking their fingers and sticking it in the wind.” What investors and analysts will primarily be looking for is management’s comments on the company’s progress with AI, Starlink and its rocket launch business. “We don’t have concrete earnings power that would be analogous to other parts of the market, but we do have a visionary set of massively capable assets that are in some cases unrivaled over all others,” said Polen Capital’s Cupps. SpaceX’s results come on the heels of a strong run of earnings reports from big AI spenders, including Alphabet Inc., Microsoft Corp. and Amazon.com Inc. Investors are particularly rewarding companies that are showing clear payoffs from their capital expenditures. For example, shares of Amazon and Microsoft surged following the companies’ results. With a market capitalization of roughly $1.5 trillion, SpaceX rivals the size of many megacap tech firms and is bigger than Musk’s other company, Tesla Inc. But its financials aren’t close, at least not yet, meaning investors may apply additional scrutiny to its spending plans. Analysts expect the company to report capital expenditures of $18.5 billion in the quarter and $45.5 billion for 2026. The primary issue facing SpaceX shares is their extreme market valuation. The stock trades at about 448 times earnings estimated over the next 12 months, the highest multiple of any member of the Nasdaq 100 Index, and 26 times estimated sales, which is among the 10 highest ratios in the technology-heavy benchmark. That helps explain why the short interest in SpaceX, which measures bearish bets against the stock, jumped to 34% of the company’s float, or the number shares available to trade in the market, from about 18% a month ago, according to data from S3 Partners. There are already more short bets against SpaceX than there are against Tesla. Still, Wall Street remains overwhelmingly bullish on the stock. Of the 39 analysts tracked by Bloomberg who cover the company, 30 have buy ratings. And few have backtracked on their extravagant predictions from when SpaceX went public. Raymond James analyst Brian Gesuale is sticking with his call for the shares to reach $800 within the next 12 months on exponential revenue growth. Adam Jonas at Morgan Stanley recently reiterated his $300 price target and said that shares trading at $100 values the company’s AI business at zero, making this an attractive entry point for investors. And Bernstein’s Douglas Harned is urging investors to ignore the specifics of the earnings report and focus instead on the company’s confidence in the future. “We believe the quarterly results should not matter,” Bernstein analysts led by Harned wrote in a note to clients on Friday. “What will be important is the level of confidence projected by management regarding the company’s growth path. Investors should look beyond short term stock movements as we view the case for a multi-trillion dollar valuation is about ‘if’ not ‘when’, for orbital data center plans.” Tech Chart of the Day Amazon.com Inc. surpassed $3 trillion in market value for the first time, becoming only the fifth company to ever reach the milestone. Top Tech Stories Palantir Technologies Inc. raised revenue and income forecasts for the full year after posting second-quarter sales that far exceeded Wall Street’s estimates, describing commercial demand for its data analytics tools as “otherworldly.” Snap Inc. posted higher-than-projected quarterly sales and gave an upbeat forecast for the current period, signaling optimism ahead of the September commercial debut of its first pair of augmented reality glasses. Grab Holdings Ltd. raised its annual earnings and sales forecasts, a sign that robust demand from Southeast Asian commuters is helping to absorb impact of higher fuel prices stemming from the Middle East conflict. Apple Inc. briefly removed the Telegram messaging app from its App Store after finding content on the platform that violated a ban on child sexual abuse material. China is growing anxious that Anthropic PBC’s Mythos could be wielded against the world’s second-biggest economy, adding a volatile new issue to already heightened tensions before a planned summit between Xi Jinping and Donald Trump. Earnings Due Earnings Premarket: Earnings Postmarket: --With assistance from Subrat Patnaik and David Watkins. Most Read from Bloomberg Businessweek Americans Are Rethinking Their Love Affair With Plant Milks A Wall Street Troll Reinvented Himself as the Groypers’ Pick for Governor. The GOP Can’t Get Rid of Him Trump’s Arctic Mining Deal Signals a New Era of State Capitalism Tokenmaxxing Is Dead. Now Comes the Belt Tightening Why Wall Street Is Getting Angry ©2026 Bloomberg L.P.

Fiscal second quarter subscription & support revenue increased by 19% Total revenue was $255 million, up 19% year-over-year GAAP operating margin was 4.6%, non-GAAP operating margin was 16.8% Repurchased $123 million worth of Class A common stock under the 2024 share repurchase plan NEW YORK, August 04, 2026--(BUSINESS WIRE)--Workiva Inc. (NYSE: WK), a leading, audit-ready platform for trust, transparency, and accountability, today announced financial results for its second quarter ended June 30, 2026. "Q2 was another quarter marked by strong financial performance and continued proof that Workiva is the platform CFOs trust in the AI era," said Julie Iskow, President & Chief Executive Officer. "We beat the high end of our revenue guidance with 19% growth in both subscription and total revenue, while rapidly expanding margins. At the same time, we are transforming our platform to be agentic-first where agents will enable customers in advanced solution tiers to accelerate reporting and compliance outcomes with the control and traceability of the Workiva platform." "While our pace of innovation has accelerated, we have also maintained our rigorous focus on operational discipline and expanding operating leverage as we scale the business," said Barbara Larson, Chief Financial Officer. "Our non-GAAP operating margin beat the high end of our guidance by 180 basis points, representing a 1,300 basis point improvement over Q2 of last year. This outperformance has positioned us to achieve our 2027 medium-term operating margin target of 18% a full year ahead of schedule." Second Quarter 2026 Financial Results Revenue: Total revenue for the second quarter of 2026 reached $255 million, an increase of 19% from $215 million in the second quarter of 2025. Subscription and support revenue contributed $236 million, up 19% versus the second quarter of 2025. Professional services revenue was $19 million, up 12% from the second quarter of 2025. Operating Margin: GAAP operating margin for the second quarter of 2026 was 4.6% compared to (10.2)% in the prior year's second quarter. Non-GAAP operating margin was 16.8% compared to 3.8% in the second quarter of 2025. GAAP Net Income (Loss): GAAP net income for the second quarter of 2026 was $13 million compared with a net loss of $(19) million for the prior year's second quarter. GAAP net income per basic share and diluted share was $0.24, compared with a net loss per basic and diluted share of $(0.35) in the second quarter of 2025. Non-GAAP Net Income: Non-GAAP net income for the second quarter of 2026 was $45 million compared with non-GAAP net income of $11 million in the prior year's second quarter. Non-GAAP net income per basic share and diluted share in the second quarter of 2026 was $0.80 and $0.77, respectively, compared with non-GAAP net income per basic share and diluted share of $0.20 and $0.19, respectively, in the second quarter of 2025. Operating Cash Flow and Free Cash Flow: Operating cash flow for the second quarter of 2026 was $78 million compared with $50 million for the prior year's second quarter. Free cash flow for the second quarter of 2026 was $78 million compared with $49 million in the second quarter of 2025. Liquidity: As of June 30, 2026, Workiva had cash, cash equivalents, and marketable securities totaling $815 million, compared with $892 million as of December 31, 2025. Workiva had $71 million aggregate principal amount of 1.125% convertible senior notes due in 2026, $702 million aggregate principal amount of 1.250% convertible senior notes due in 2028, and $14 million of finance lease obligations outstanding as of June 30, 2026. Key Metrics and Recent Business Highlights Customers: Workiva had 6,750 customers as of June 30, 2026, a net increase of 283 customers from June 30, 2025. Retention Rate: As of June 30, 2026, Workiva's gross retention rate was 97%, and the net retention rate was 111%. Net retention includes changes in both solutions and pricing for existing customers. Large Contracts: As of June 30, 2026, Workiva had 2,690 customers with an annual contract value ("ACV") of more than $100,000, up 20% from 2,241 customers at June 30, 2025. Workiva had 656 customers with an ACV of more than $300,000, up 34% from 488 customers in the second quarter of 2025. Workiva had 276 customers with an ACV of more than $500,000, up 33% from 208 customers in the second quarter of 2025. Share Repurchase Plan: On July 30, 2024, our board of directors authorized a share repurchase plan for up to $100 million of our outstanding Class A common stock. On February 16, 2026, our board of directors modified the repurchase plan to authorize an additional $250 million of the Company’s outstanding Class A common stock for repurchase under the plan. During the second quarter of 2026, Workiva purchased approximately 2.5 million shares for $123 million under the plan. As of June 30, 2026, approximately $106 million remained available under the plan for future share repurchases. Financial Outlook As of August 4, 2026, Workiva is providing guidance as follows: Third Quarter 2026 Guidance: Total revenue is expected to be in the range of $260 million to $262 million. GAAP operating margin is expected to be in the range of 4.2% to 4.8%. Non-GAAP operating margin is expected to be in the range of 17.0% to 17.5%. GAAP net income per diluted share is expected to be in the range of $0.21 to $0.25 using 54.6 million shares. Non-GAAP net income per diluted share is expected to be in the range of $0.79 to $0.82 using 59.9 million shares. Full Year 2026 Guidance: Total revenue is expected to be in the range of $1.040 billion to $1.044 billion. GAAP operating margin is expected to be in the range of 5.7% to 5.8%. Non-GAAP operating margin is expected to be approximately 18%. GAAP net income per diluted share is expected to be in the range of $1.21 to $1.22 using 55.7 million shares. Non-GAAP net income per diluted share is expected to be in the range of $3.38 to $3.39 using 60.9 million shares. Free cash flow margin is expected to be approximately 21%. Quarterly Conference Call Workiva will host a webcast today at 5:00 p.m. Eastern Time to review the Company’s financial results for the second quarter 2026, in addition to discussing the Company’s outlook for the third quarter and full year 2026. The call can be accessed by dialing 1-833-630-1956 (U.S. domestic) or 1-412-317-1837 (international). Additionally, a live webcast and replay will be available at https://investor.workiva.com/news-events/events. About Workiva Workiva Inc. (NYSE: WK) powers trust, transparency, and accountability. Accounting, finance, sustainability, risk and audit teams from more than 6,700 organizations, including over 85% of Fortune 1,000 companies rely on Workiva for their mission-critical work. We transform how customers connect data, unify processes, and empower teams in a secure, audit-ready platform. Learn more at workiva.com. Non-GAAP Financial Measures The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation and amortization of acquisition-related intangible assets. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in Table I at the end of this press release. A reconciliation of GAAP to non-GAAP guidance has been provided in Table II at the end of this press release. Workiva believes that the use of non-GAAP gross profit, non-GAAP income from operations and non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, free cash flow and free cash flow margin is helpful to its investors. These measures, which are referred to as non-GAAP financial measures, are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP. Workiva’s management uses these non-GAAP financial measures as tools for financial and operational decision making and for evaluating Workiva’s own operating results over different periods of time. Non-GAAP gross profit is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets attributable to cost of revenues from gross profit. Non-GAAP income from operations is calculated by excluding stock-based compensation expense and amortization expense for acquisition-related intangible assets from loss from operations. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP income from operations by revenues. Non-GAAP net income is calculated by excluding stock-based compensation expense, net of tax and amortization expense for acquisition-related intangible assets from net income (loss). Non-GAAP net income per share is calculated by dividing non-GAAP net income by non-GAAP weighted- average shares outstanding. Beginning with the three months and six months ended June 30, 2026, we are adding back interest expense (net of taxes) to the numerator of our non-GAAP diluted earnings per share in accordance with the if-converted method of calculating the dilutive impact of our convertible senior notes. Prior to this change, potentially dilutive shares associated with our convertible senior notes were included in the denominator, but the numerator was not adjusted, as our convertible senior notes had historically been anti-dilutive for GAAP purposes. As the Company has achieved GAAP profitability, our convertible senior notes may now be dilutive, and we are aligning our non-GAAP calculation with the if-converted method used for GAAP diluted EPS. Prior periods have not been recast. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Workiva believes that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between its operating results from period to period. For business combinations, we generally allocate a portion of the purchase price to intangible assets. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization. The amount of purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition and thus we do not believe they are reflective of ongoing operations. Free cash flow, a non-GAAP measure, represents cash flow from operating activities less purchase of property and equipment. Free cash flow margin is calculated by dividing free cash flow by total revenue. We consider free cash flow and free cash flow margin to be liquidity measures that provide useful information to investors about the amount of cash generated or used by the business. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Workiva’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Workiva’s reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Workiva’s business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Workiva’s business. Forward-Looking Statements Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company’s expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance," "target," "goal," "project," "continue to," "confident," or the negative of those terms or other comparable terminology. Please see the Company’s documents filed or to be filed with the Securities and Exchange Commission, including the Company’s annual reports filed on Form 10-K and quarterly reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804308660/en/ Contacts Investor Contact:Katie WhiteWorkiva [email protected] Media Contact:Lauren CovelloWorkiva [email protected]

Workiva (WK) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +20.31%. A quarter ago, it was expected that this maker of software for managing regulatory filings would post earnings of $0.66 per share when it actually produced earnings of $0.77, delivering a surprise of +16.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Workiva, which belongs to the Zacks Internet - Software industry, posted revenues of $255.29 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.74%. This compares to year-ago revenues of $215.19 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Workiva shares have lost about 29% since the beginning of the year versus the S&P 500's gain of 11%. While Workiva has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Workiva was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.68 on $261.74 million in revenues for the coming quarter and $2.90 on $1.04 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Asana, Inc. (ASAN), has yet to report results for the quarter ended July 2026. This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Asana, Inc.'s revenues are expected to be $214.09 million, up 8.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Workiva Inc. (WK) : Free Stock Analysis Report Asana, Inc. (ASAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research