Workiva (NYSE:WK) Releases Earnings Results, Misses Estimates By $0.08 EPS

Workiva (NYSE:WK) announced its quarterly earnings data on Thursday. The software maker reported $0.72 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.80 by ($0.08), FiscalAI reports. Workiva had a net margin of 4.87% and a negative return on equity of 140.17%. The company had revenue of $262.96 million for the quarter, compared to the consensus estimate of $261.37 million. During the same quarter last year, the firm posted $0.55 earnings per share. The company’s revenue was up 17.3% compared to the same quarter last year.

Here are the key takeaways from Workiva’s conference call:

• Workiva reported Q3 revenue of $263 million, up 17% year over year, beating the high end of guidance. Non-GAAP operating margin reached 18.3%, expanding 560 basis points year over year.
• Large-customer growth remained strong: contracts above $300,000 annually rose 31%, while those above $500,000 rose 20%. Gross retention was 97%, and multi-solution customers accounted for 77% of subscription revenue.
• The company launched Agent Studio, automated GRC testing, and new regulatory offerings, and highlighted customer wins involving its agentic solutions. Management sees AI as an opportunity to expand the platform’s role in complex, high-stakes reporting and compliance work.
• Management said prior sustainability and foreign-exchange tailwinds have faded, with FX now a modest headwind, contributing to a more measured Q4 outlook. Full-year revenue guidance is $1.041 billion–$1.044 billion, while subscription revenue growth is expected to be approximately 19%.
• Workiva raised its full-year non-GAAP operating margin outlook to 18.2%–18.3%, and continues to expect a free cash flow margin of about 21%. Management said the company remains on track with its 2026 plan and confident in its longer-term targets.

Workiva Stock Down 14.8%

Shares of WK stock opened at $72.83 on Friday. Workiva has a 52 week low of $43.34 and a 52 week high of $95.00. The company has a market cap of $4.09 billion, a P/E ratio of 65.03 and a beta of 0.46. The business has a 50 day moving average of $75.83 and a two-hundred day moving average of $63.07.

Key Workiva News

Here are the key news stories impacting Workiva this week:

• Positive Sentiment: Third-quarter revenue rose 17.3% year over year to $262.96 million, topping analysts’ $261.37 million estimate. Quarterly results
• Neutral Sentiment: Coverage highlighted Workiva’s AI expansion, while noting moderating business tailwinds; the available reports do not quantify the potential financial contribution from AI. Q3 deep dive
• Negative Sentiment: Q3 EPS was $0.72, below the roughly $0.79–$0.80 consensus, despite increasing from $0.55 a year earlier. The earnings shortfall is a likely drag on sentiment. Q3 earnings miss
• Negative Sentiment: Workiva’s Q4 EPS outlook of $0.78–$0.80 is below the $0.92 consensus, and its $275 million–$278 million revenue range is just shy of the $278.1 million estimate. Full-year EPS guidance of $2.80–$2.83 also trails the $2.95 consensus, putting the outlook at the center of investor concern. Why shares are falling

Insider Transactions at Workiva

In related news, EVP Brandon Ziegler sold 6,571 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $75.97, for a total transaction of $499,198.87. Following the completion of the transaction, the executive vice president owned 126,216 shares in the company, valued at $9,588,629.52. This trade represents a 4.95% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 4.77% of the company’s stock.

Analysts Set New Price Targets

WK has been the topic of a number of analyst reports. Zacks Research lowered Workiva from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Stifel Nicolaus set a $95.00 price objective on Workiva in a research report on Thursday, August 27th. Weiss Ratings downgraded shares of Workiva from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday. Citigroup reaffirmed a “buy” rating on shares of Workiva in a research report on Thursday, August 6th. Finally, BTIG Research set a $85.00 price objective on Workiva in a research note on Wednesday, September 16th. Nine equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $87.00.

About Workiva

Workiva Inc (NYSE: WK) provides cloud-based software designed to help organizations manage reporting, compliance, risk and other complex business processes. Its platform connects financial, operational and environmental, social and governance (ESG) data so teams can collaborate on information used for internal and external reporting.

The company’s products support financial reporting, regulatory filings, audit and compliance workflows, investor communications, and sustainability reporting.