Start here if you're new
what it is
Workiva sells cloud software that helps companies write, check, and share financial, ESG, and risk reports.
how it gets paid
Last year Workiva made $885M in revenue. Financial reporting platform was the main engine at $487M, or 55% of sales.
why it's growing
Revenue grew 19.7% last year. Management expects revenue to approach $1.0 billion, with subscription growth driven by account expansions, international demand, and a large base of contracted revenue scheduled to.
what just happened
Workiva posted $646M in revenue, while EPS landed at -$0.68.
At a glance
C++ balance sheet — some cracks in the foundation
45/100 earnings predictability — expect surprises
342.9x trailing p/e — you're paying up for this one
3.0% return on capital — nothing to write home about
xvary composite: 35/100 — weak
What they do
Workiva sells cloud software that helps companies write, check, and share financial, ESG, and risk reports.
Subscription and Support was 90% of 2024 revenue, or about $797M of $885M. That is 90% recurring revenue versus 10% services. You would need a very good reason to rip out $797M of annual software spend.
How they make money
$885M
annual revenue · their business grew +19.7% last year
Financial reporting platform
$487M
+18%
Sustainability reporting
$177M
+25%
GRC and audit
$133M
+22%
Services and support
$88M
flat
The products that matter
recurring reporting software
Subscription and support
$796.5M · 90% of revenue
this is the core business. about $796.5M of the $885M total comes from subscriptions, which tells you customers keep renewing once Workiva gets into the workflow.
the engine
implementation and consulting
Services
~$88.5M · roughly flat outlook
services are about 10% of revenue, or roughly $88.5M. management expects this part of the business to stay roughly flat as lower-margin setup work declines.
smaller mix
Key numbers
$885M
annual revenue
That is the size of the whole business today. You are paying a $5B market cap for a company still under $1B in sales.
342.9x
trailing P/E
That means you pay 342.9 times last year's profit. A 5.0% operating margin makes that a hard ask.
5.0%
operating margin
That means $5 stays from each $100 after running the business. Software usually gets judged on more than that.
$709M
long-term debt
Debt of $709M is manageable, but it is not small next to a 3.0% return on capital.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 30 / 100
- long-term debt $709M (13% of capital)
- net profit margin 2.2% — keeps 2 cents of every dollar in revenue
- return on equity 15% — $0.15 profit for every $1 investors have put in
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
You invested $10,000 in WK 3 years ago → it's now worth $9,570.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
Workiva posted $646M in revenue, while EPS landed at -$0.68.
Revenue was up 188% vs. prior year, and gross margin held at 77.7%. That means $77.70 stayed from every $100 of sales before overhead.
$646M
revenue
-$0.68
eps
77.7%
gross margin
the number that mattered
The $646M print mattered because 77.7% gross margin kept most of each sales dollar before overhead.
-
we also expect earnings improved from earlier in the year, reflecting tighter cost controls and the ongoing shift of lower-margin services to partners.
-
we’re calling for fourth-quarter earnings of $0.08 per share.
-
the company should notch a solid bottom-line improvement across full-year 2026.management expects revenue to approach $1.0 billion, with subscription growth driven by account expansions, international demand, and a large base of contracted revenue scheduled to be recognized over the next 12 months. operating margins look to improve, too, though leadership noted that profitability will likely remain stronger in the second half of the year.
-
services revenue is expected to remain roughly flat, as lower-margin setup and consulting work is increasingly handled by partners.
-
we look for earnings to reach $0.25 per share across the full year.
source: company earnings report, 2026
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What could go wrong
the #1 risk is failing to turn recurring revenue into durable margin.
high
margin story never arrives
Workiva grew revenue 19.7% last year and still posted only a 1.5% net margin. If growth stays high but profitability stays this thin, the stock stops looking like a scaling software story and starts looking like an expensive promise.
at 1.5% net margin on $885M revenue, there is little buffer if costs rise or growth cools
med
subscription growth slows
about $796.5M of revenue comes from subscription and support. That's the good news and the concentration. If renewals, seat growth, or account expansion slow, the core thesis takes the hit first.
90% of revenue is tied to the subscription engine, so there is no large second segment to offset a slowdown
med
the $1.0B target disappoints
management expects revenue to approach $1.0B in 2026. That's close enough to matter and visible enough to be judged every quarter. Miss that path and investors will start questioning both demand and execution.
the market is already underwriting revenue near $1.0B and EPS of $0.25
low
services shrink faster than expected
management says services should stay roughly flat while lower-margin setup work declines. If that business falls faster than expected before subscriptions absorb the gap, revenue mix improves on paper while total growth loses some support.
services are only about 10% of revenue, but they still matter when total earnings are thin
With $885M in revenue, 90% of it recurring, and only a 1.5% net margin, Workiva has real growth and very little margin for error.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
net margin above the current 1.5%
this is the big one. if revenue keeps growing and net margin stays parked near 1%, the thesis does not get better with time.
metric
subscription mix holding near 90%
about $796.5M of revenue comes from subscriptions. if that mix slips, the business gets less predictable and the valuation story gets harder.
calendar
the march toward $1.0B revenue
management pointed to revenue approaching $1.0B in 2026. each quarter now functions like a progress report against that number.
trend
EPS building past the recent $0.05 and $0.08 prints
one better quarter is nice. a repeat pattern is what you need if you want to believe $0.25 for the full year is the start of something bigger.
Analyst rankings
short-term outlook
below average
momentum score 4. in human-speak, analysts do not see this as a near-term fundamentals favorite.
risk profile
below average
stability score 4. this stock swings more than most, so you are not buying a quiet chart.
chart momentum
top 5%
technical score 1 — the chart looks better than the business profile. welcome to a stock where traders and fundamental investors are reading different lines.
earnings predictability
45 / 100
earnings are still hard to model cleanly. if you own WK, expect a bumpier reporting path than the recurring revenue mix might suggest.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 154 buyers vs. 153 sellers in 3q2025. total institutional holdings: 49.4M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$68
$154
$86
current price
$111
target midpoint · +29% from current · 3-5yr high: $154
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