Workiva Inc. Announces Third Quarter 2025 Financial Results
NEW YORK--( BUSINESS WIRE)-- Workiva Inc. (NYSE:WK), a leading, AI-powered platform for transparency, accountability, and trust, today announced financial results for its third quarter ended September 30, 2025.
“Workiva delivered another solid quarter, driven by broad-based demand across our solution portfolio and unified platform,” said Julie Iskow, President & Chief Executive Officer. “We outperformed on both the top and bottom line, and we are raising the FY 2025 guide for both revenue and operating margin. This is the result of our disciplined commitment to productivity and driving measurable improvement to operating leverage in our business.”
“Strong execution across the business led to 23% growth in subscription revenue, compared to 19% growth in Q3 of last year,” said Jill Klindt, Chief Financial Officer. “At the same time, our focus on profitable growth has enabled us to raise our 2025 non-GAAP operating margin target by 400 basis points at the midpoint since the start of the year.”
Third Quarter 2025 Financial Results
Key Metrics and Recent Business Highlights
Financial Outlook
As of November 5, 2025, Workiva is providing guidance as follows:
Fourth Quarter 2025 Guidance:
Full Year 2025 Guidance:
Departure of Chief Sales Officer
Workiva Executive Vice President and Chief Sales Officer, Michael Hawkins, will be stepping down from his position after 15 years with the Company and four years in the role. Hawkins will remain available to the company as a consultant until December 31, 2025, to ensure a smooth transition.
“Mike has been part of Workiva since our early days, helping shape the company we’ve become,” said Julie Iskow, President & Chief Executive Officer. “From his initial role as a Regional Sales Director to leading our global sales organization, Mike has been a key part of our evolution from a single-solution company in the U.S. to a trusted global platform serving thousands of customers. I want to thank Mike for his years of leadership, his dedication to our mission, and his many contributions to our success. His impact on our people, our customers, and our growth will be felt long after his departure.”
Workiva is also announcing today the appointment of Michael Pinto as Chief Revenue Officer, effective November 6, 2025. Pinto previously held sales leadership positions at Databricks, Amazon Web Services, Medidata, and SAP.
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 third quarter 2025, in addition to discussing the Company’s outlook for the fourth quarter and full year 2025. 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 transparency, accountability, and trust. Finance, accounting, sustainability, risk and audit teams from more than 6,500 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, AI-powered collaborative 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 and gross margin, non-GAAP income from operations, 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 margin is the ratio calculated by dividing non-GAAP gross profit by revenues. 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 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 the weighted- average shares outstanding as presented in the calculation of GAAP net income (loss) per share. 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.
WORKIVA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
(unaudited)
Revenue
Subscription and support
$
209,560
$
171,035
$
593,295
$
486,749
Professional services
14,606
14,586
52,338
52,042
Total revenue
224,166
185,621
645,633
538,791
Cost of revenue
Subscription and support (1)
33,824
30,621
103,163
86,493
Professional services (1)
12,554
13,050
41,100
39,873
Total cost of revenue
46,378
43,671
144,263
126,366
Gross profit
177,788
141,950
501,370
412,425
Operating expenses
Research and development (1)
51,403
48,425
160,026
142,328
Sales and marketing (1)
101,127
89,756
306,823
257,086
General and administrative (1)
28,663
25,551
84,822
76,225
Total operating expenses
181,193
163,732
551,671
475,639
Loss from operations
(3,405
)
(21,782
)
(50,301
)
(63,214
)
Interest income
8,442
9,298
25,533
30,089
Interest expense
(3,195
)
(3,199
)
(9,584
)
(9,668
)
Other income (expense), net
318
(350
)
(651
)
(309
)
Income (loss) before provision for income taxes
2,160
(16,033
)
(35,003
)
(43,102
)
(Benefit) provision for income taxes
(626
)
959
2,982
3,125
Net income (loss)
$
2,786
$
(16,992
)
$
(37,985
)
$
(46,227
)
Net income (loss) per common share:
Basic
$
0.05
$
(0.31
)
$
(0.68
)
$
(0.84
)
Diluted
$
0.05
$
(0.31
)
$
(0.68
)
$
(0.84
)
Weighted-average common shares outstanding
Basic
56,347,994
55,581,841
56,224,079
55,226,254
Diluted
58,184,796
55,581,841
56,224,079
55,226,254
(1) Includes stock-based compensation expense as follows:
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
(unaudited)
Cost of revenue
Subscription and support
$
2,635
$
2,164
$
7,579
$
5,708
Professional services
1,102
858
3,204
2,348
Operating expenses
Research and development
6,592
5,681
19,198
15,474
Sales and marketing
9,855
9,942
29,496
26,470
General and administrative
10,062
8,825
27,124
25,879
WORKIVA INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, 2025
December 31, 2024
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
315,914
$
301,835
Marketable securities
540,877
514,585
Accounts receivable, net
144,433
148,433
Deferred costs
55,282
50,914
Other receivables
10,140
10,276
Prepaid expenses and other
25,622
22,199
Total current assets
1,092,268
1,048,242
Property and equipment, net
20,338
21,825
Operating lease right-of-use assets
10,323
11,786
Deferred costs, non-current
51,816
54,858
Goodwill
205,955
196,844
Intangible assets, net
23,533
27,389
Other assets
7,078
7,525
Total assets
$
1,411,311
$
1,368,469
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable
$
11,010
$
7,747
Accrued expenses and other current liabilities
120,159
126,508
Deferred revenue
489,694
457,608
Convertible senior notes, current
71,004
—
Finance lease obligations
586
562
Total current liabilities
692,453
592,425
Convertible senior notes, non-current
695,719
764,891
Deferred revenue, non-current
38,822
29,681
Other long-term liabilities
284
227
Operating lease liabilities, non-current
7,915
9,441
Finance lease obligations, non-current
13,045
13,488
Total liabilities
1,448,238
1,410,153
Stockholders’ deficit
Common stock
56
56
Additional paid-in-capital
701,895
672,363
Accumulated deficit
(745,668
)
(707,683
)
Accumulated other comprehensive income (loss)
6,790
(6,420
)
Total stockholders’ deficit
(36,927
)
(41,684
)
Total liabilities and stockholders’ deficit
$
1,411,311
$
1,368,469
WORKIVA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
(unaudited)
Cash flows from operating activities
Net income (loss)
$
2,786
$
(16,992
)
$
(37,985
)
$
(46,227
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization
2,687
3,006
8,529
8,092
Stock-based compensation expense
30,246
27,470
86,601
75,879
Provision for (recovery of) doubtful accounts
59
57
(286
)
(46
)
Accretion of premiums and discounts on marketable securities, net
(1,119
)
(2,638
)
(4,204
)
(9,543
)
Amortization of debt discount and issuance costs
611
609
1,832
1,826
Deferred income tax
2
(1
)
(75
)
(292
)
Changes in assets and liabilities:
Accounts receivable
(23,250
)
(15,187
)
6,882
(11,507
)
Deferred costs
(2,717
)
(4,946
)
1,364
(15,140
)
Operating lease right-of-use assets
1,430
1,210
4,136
3,808
Other receivables
(714
)
(1,745
)
221
2,796
Prepaid expenses and other
(459
)
344
(2,921
)
2,764
Other assets
(47
)
464
691
(1,191
)
Accounts payable
69
4,788
2,965
7,630
Deferred revenue
35,855
26,606
32,841
22,159
Operating lease liabilities
(973
)
(878
)
(2,891
)
(2,831
)
Accrued expenses and other liabilities
1,689
(3,261
)
(8,592
)
5,559
Net cash provided by operating activities
46,155
18,906
89,108
43,736
Cash flows from investing activities
Purchase of property and equipment
(91
)
(243
)
(1,849
)
(554
)
Purchase of marketable securities
(107,321
)
(158,522
)
(313,271
)
(310,075
)
Maturities of marketable securities
97,350
108,993
291,702
345,733
Sale of marketable securities
—
—
—
4,609
Acquisitions, net of cash acquired
—
187
—
(98,093
)
Purchase of intangible assets
(45
)
(44
)
(105
)
(116
)
Net cash used in investing activities
(10,107
)
(49,629
)
(23,523
)
(58,496
)
Cash flows from financing activities
Proceeds from option exercises
440
3,273
2,874
3,865
Taxes paid related to net share settlements of stock-based compensation awards
(29
)
(1,173
)
(13,520
)
(11,424
)
Proceeds from shares issued in connection with employee stock purchase plan
6,163
6,709
13,698
13,822
Repurchases of Class A common stock
(10,001
)
—
(60,121
)
—
Principal payments on finance lease obligations
(141
)
(134
)
(418
)
(395
)
Net cash (used in) provided by financing activities
(3,568
)
8,675
(57,487
)
5,868
Effect of foreign exchange rates on cash
(819
)
2,390
6,178
925
Net increase (decrease) in cash, cash equivalents, and restricted cash
31,661
(19,658
)
14,276
(7,967
)
Cash, cash equivalents, and restricted cash at beginning of period
284,965
268,412
302,350
256,721
Cash, cash equivalents, and restricted cash at end of period
$
316,626
$
248,754
$
316,626
$
248,754
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
(unaudited)
Reconciliation of cash, cash equivalents, and restricted cash
to the consolidated balance sheets
Cash and cash equivalents at end of period
$
315,914
$
248,239
$
315,914
$
248,239
Restricted cash included within prepaid expenses and other at end of period
712
515
712
515
Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows
$
316,626
$
248,754
$
316,626
$
248,754
TABLE I
WORKIVA INC.
RECONCILIATION OF NON-GAAP INFORMATION
(in thousands, except share and per share)
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
Gross profit, subscription and support
$
175,736
$
140,414
$
490,132
$
400,256
Add back: Stock-based compensation
2,635
2,164
7,579
5,708
Add back: Amortization of acquisition-related intangibles
952
1,007
2,801
1,007
Gross profit, subscription and support, non-GAAP
$
179,323
$
143,585
$
500,512
$
406,971
Gross profit, professional services
$
2,052
$
1,536
$
11,238
$
12,169
Add back: Stock-based compensation
1,102
858
3,204
2,348
Gross profit, professional services, non-GAAP
$
3,154
$
2,394
$
14,442
$
14,517
Gross profit
$
177,788
$
141,950
$
501,370
$
412,425
Add back: Stock-based compensation
3,737
3,022
10,783
8,056
Add back: Amortization of acquisition-related intangibles
952
1,007
2,801
1,007
Gross profit, non-GAAP
$
182,477
$
145,979
$
514,954
$
421,488
Cost of revenue, subscription and support
$
33,824
$
30,621
$
103,163
$
86,493
Less: Stock-based compensation
2,635
2,164
7,579
5,708
Less: Amortization of acquisition-related intangibles
952
1,007
2,801
1,007
Cost of revenue, subscription and support, non-GAAP
$
30,237
$
27,450
$
92,783
$
79,778
Cost of revenue, professional services
$
12,554
$
13,050
$
41,100
$
39,873
Less: Stock-based compensation
1,102
858
3,204
2,348
Cost of revenue, professional services, non-GAAP
$
11,452
$
12,192
$
37,896
$
37,525
Research and development
$
51,403
$
48,425
$
160,026
$
142,328
Less: Stock-based compensation
6,592
5,681
19,198
15,474
Less: Amortization of acquisition-related intangibles
220
414
1,210
2,267
Research and development, non-GAAP
$
44,591
$
42,330
$
139,618
$
124,587
Sales and marketing
$
101,127
$
89,756
$
306,823
$
257,086
Less: Stock-based compensation
9,855
9,942
29,496
26,470
Less: Amortization of acquisition-related intangibles
491
467
1,416
1,292
Sales and marketing, non-GAAP
$
90,781
$
79,347
$
275,911
$
229,324
General and administrative
$
28,663
$
25,551
$
84,822
$
76,225
Less: Stock-based compensation
10,062
8,825
27,124
25,879
General and administrative, non-GAAP
$
18,601
$
16,726
$
57,698
$
50,346
Loss from operations
$
(3,405
)
$
(21,782
)
$
(50,301
)
$
(63,214
)
Add back: Stock-based compensation
30,246
27,470
86,601
75,879
Add back: Amortization of acquisition-related intangibles
1,663
1,889
5,427
4,566
Income from operations, non-GAAP
$
28,504
$
7,577
$
41,727
$
17,231
GAAP operating margin
(1.5
)%
(11.8
)%
(7.8
)%
(11.7
)%
Non-GAAP operating margin
12.7
%
4.1
%
6.5
%
3.2
%
Net income (loss)
$
2,786
$
(16,992
)
$
(37,985
)
$
(46,227
)
Add back: Stock-based compensation
30,246
27,470
86,601
75,879
Add back: Amortization of acquisition-related intangibles
1,663
1,889
5,427
4,566
Net income, non-GAAP
$
34,695
$
12,367
$
54,043
$
34,218
Net income (loss) per basic share
$
0.05
$
(0.31
)
$
(0.68
)
$
(0.84
)
Add back: Stock-based compensation
0.54
0.50
1.54
1.38
Add back: Amortization of acquisition-related intangibles
0.03
0.03
0.10
0.08
Net income per basic share, non-GAAP
$
0.62
$
0.22
$
0.96
$
0.62
Net income (loss) per diluted share
$
0.05
$
(0.31
)
$
(0.68
)
$
(0.84
)
Net income per diluted share, non-GAAP
$
0.55
$
0.21
$
0.93
$
0.60
Weighted-average common shares outstanding - diluted
58,184,796
55,581,841
56,224,079
55,226,254
Weighted-average common shares outstanding - diluted, non-GAAP
63,428,035
57,557,373
58,150,559
57,361,707
Net cash provided by operating activities
$
46,155
18,906
89,108
43,736
Purchase of property and equipment
(91
)
(243
)
(1,849
)
(554
)
Free cash flow
$
46,064
$
18,663
$
87,259
$
43,182
Free cash flow margin
20.5
%
10.1
%
13.5
%
8.0
%
TABLE II
WORKIVA INC.
RECONCILIATION OF NON-GAAP GUIDANCE
Three months ending
December 31, 2025
Year ending
December 31, 2025
GAAP operating margin
0.0
%
0.8
%
(5.7
)%
(5.5
)%
Add back: Stock-based compensation
16.0
%
16.0
%
14.1
%
14.1
%
Add back: Amortization of acquisition-related intangibles
0.7
%
0.7
%
0.8
%
0.8
%
Non-GAAP operating margin
16.7
%
17.5
%
9.2
%
9.4
%
Net income (loss) per basic share, GAAP range
$
0.05
$
0.08
$
(0.62
)
$
(0.59
)
Net income (loss) per diluted share, GAAP range
0.05
0.08
(0.62
)
(0.59
)
Add back: Stock-based compensation
0.66
0.66
2.21
2.21
Add back: Amortization of acquisition-related intangibles
0.03
0.03
0.12
0.12
Effect of potentially dilutive securities
(0.07
)
(0.07
)
(0.06
)
(0.06
)
Net income per diluted share, non-GAAP range
$
0.67
$
0.70
$
1.65
$
1.68
Weighted-average common shares used in calculating GAAP earnings per share, basic
56,700,000
56,700,000
56,400,000
56,400,000
Weighted-average common shares used in calculating GAAP earnings per share, diluted
57,500,000
57,500,000
56,400,000
56,400,000
Weighted-average common shares used in calculating non-GAAP earnings per share, diluted
63,600,000
63,600,000
58,300,000
58,300,000