Overview

* Workiva Q2 2025 revenue grows 21% yr/yr, beating analyst expectations

* Subscription revenue rises 23% yr/yr, driven by demand for solutions

* Co repurchased $10 mln of Class A common stock in Q2 2025

Outlook

* Workiva ( WK ) expects Q3 revenue between $218 mln and $220 mln

* Company projects full-year revenue between $870 mln and $873 mln

* Workiva ( WK ) anticipates Q3 non-GAAP operating margin of 7.0% to 8.0%

* Company sees full-year free cash flow margin at approximately 10.5%

Result Drivers

* SUBSCRIPTION REVENUE - Subscription and support revenue rose 23% yr/yr, driven by demand for Workiva's ( WK ) solutions

* LARGE CONTRACTS - Customers with annual contract value over $500,000 grew 35% yr/yr

* CUSTOMER RETENTION - Gross retention rate at 97% and net retention rate at 114%

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $215 mln $208.90

Revenue mln (9

Analysts

)

Q2 $11 mln

Adjusted

Net

Income

Q2 Net -$19 mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy."

* Wall Street's median 12-month price target for Workiva Inc ( WK ) is $100.00, about 33.5% above its July 30 closing price of $66.50

* The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 62 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)