Revenue Performance - Revenue for the three months ended September 30, 2025, was $224.166 million, a 20.7% increase from $185.621 million in the same period of 2024[71]. - The company recognized $186.2 million of revenue from deferred revenue during the three months ended September 30, 2025[72]. - Subscription and support revenue from the Americas for the three months ended September 30, 2025, was $164,847,000, compared to $138,833,000 in 2024, indicating a growth of about 18.7%[81]. - Approximately 91% of total Americas revenue attributed to the U.S. during the three months ended September 30, 2025[81]. Financial Position - As of September 30, 2025, total accrued expenses and other current liabilities amounted to $120.159 million, compared to $126.508 million as of December 31, 2024, reflecting a decrease of approximately 5.3%[42]. - Cash equivalents and marketable securities totaled $732.987 million as of September 30, 2025, with $192.110 million included in cash and cash equivalents and $540.877 million in marketable securities[43]. - The fair value of convertible senior notes due in 2026 and 2028 was $85.1 million and $689.4 million, respectively, as of September 30, 2025[52]. - As of September 30, 2025, the total net carrying amount of intangible assets was $23,533,000, an increase from $27,389,000 as of December 31, 2024[74]. - The balance of goodwill increased from $196,844,000 at December 31, 2024, to $205,955,000 as of September 30, 2025, reflecting a foreign currency translation adjustment of $9,111,000[76]. Expenses and Losses - Stock-based compensation expense for the three months ended September 30, 2025, totaled $30.246 million, compared to $27.470 million for the same period in 2024[66]. - The net loss for the nine months ended September 30, 2025, was $(35,419,000), compared to a net loss of $(43,008,000) for the same period in 2024[78]. - The diluted net income per share for the three months ended September 30, 2025, was $0.05 for both Class A and Class B shares, compared to a loss of $(0.31) per share in 2024[78]. Accounting and Regulatory Impact - The enactment of the One Big Beautiful Bill Act of 2025 had an immaterial favorable impact on the company's income tax expense and tax receivable[38]. - The company anticipates no material impact on its financial statements from the new accounting standards issued by the FASB, effective after December 15, 2024, and December 15, 2026[39][40]. - The company is assessing the impact of new accounting pronouncements on its consolidated financial statements and related disclosures[40]. Cash Flow and Financing Activities - The company’s operating cash flow may be affected by the timing of employee cash bonus payments and commission payouts, particularly in the first and fourth quarters[33]. - The company issued $345.0 million of 1.125% convertible senior notes due 2026, with proceeds totaling $335.9 million after discounts and costs[53]. - In August 2023, the company issued $702.0 million of 1.250% convertible senior notes due 2028, with proceeds totaling $691.1 million after discounts and costs[54]. - For the three months ended September 30, 2025, total interest expense related to the Notes was $3.005 million, compared to $3.003 million for the same period in 2024[63]. Employee Compensation - Accrued bonuses increased significantly from $7.891 million as of December 31, 2024, to $26.834 million as of September 30, 2025[42]. - During the nine months ended September 30, 2025, 227,124 shares were purchased under the Employee Stock Purchase Plan (ESPP), generating cash proceeds of $13.7 million[69]. Amortization and Intangible Assets - Amortization expense for intangible assets was $1.7 million for the three months ended September 30, 2025, compared to $2.0 million for the same period in 2024[75]. - The expected total amortization expense for intangible assets is projected to be $23,533,000 over the remaining fiscal years[76].

Revenue Growth - Subscription and support revenue increased by 23% year-over-year in Q3 2025, contributing to total revenue of $224 million, which represents a 21% growth compared to $186 million in Q3 2024[6] - Total revenue for the three months ended September 30, 2025, was $224.166 million, a 20.7% increase from $185.621 million in the same period of 2024[24] - Subscription and support revenue increased to $209.560 million, up 22.5% from $171.035 million year-over-year[24] Profitability - GAAP net income for Q3 2025 was $3 million, a significant improvement from a net loss of $(17) million in Q3 2024, resulting in a GAAP net income per share of $0.05 compared to a net loss per share of $(0.31) in the prior year[7] - Workiva's non-GAAP net income for Q3 2025 was $35 million, compared to $12 million in Q3 2024, with non-GAAP net income per diluted share of $0.55[7] - The net loss for the three months ended September 30, 2025, was $2.786 million, a significant improvement compared to a net loss of $16.992 million in the same quarter of 2024[24] Operating Margin - Non-GAAP operating margin for Q3 2025 was 12.7%, up from 4.1% in Q3 2024, reflecting a 400 basis point increase in the operating margin target for FY 2025[3] - Non-GAAP operating margin improved to 12.7% in Q3 2025, up from 4.1% in Q3 2024[35] - The company expects a GAAP operating margin range of 0.0% to 0.8% for Q4 2025[36] Customer Metrics - Workiva had 6,541 customers as of September 30, 2025, with a net increase of 304 customers from the previous year, and a gross retention rate of 97%[7] - Customers with an annual contract value (ACV) over $500,000 grew by 42% year-over-year, reaching 236 customers[8] Cash and Investments - Workiva's cash, cash equivalents, and marketable securities totaled $857 million as of September 30, 2025, an increase from $816 million at the end of 2024[7] - Cash and cash equivalents as of September 30, 2025, were $315.914 million, an increase from $301.835 million at the end of 2024[26] - The total cash, cash equivalents, and restricted cash at the end of the period was $316.626 million, compared to $248.754 million at the end of Q3 2024, an increase of 27%[30] Expenses - Operating expenses for the three months ended September 30, 2025, totaled $181.193 million, a 10.6% increase from $163.732 million in the prior year[24] - Research and development expenses for Q3 2025 were $51.403 million, up from $48.425 million in Q3 2024, reflecting a growth of 4%[33] - The company reported stock-based compensation expense of $30.246 million for the three months ended September 30, 2025, compared to $27.470 million in the prior year[28] Future Outlook - For Q4 2025, total revenue is expected to be in the range of $234 million to $236 million, with a GAAP operating margin forecasted between 0.0% and 0.8%[15] - Non-GAAP net income per diluted share is projected to be between $0.67 and $0.70 for the year ending December 31, 2025[36] Share Repurchase - The company repurchased $10 million of Class A common stock during Q3 2025, with approximately $40 million remaining under the share repurchase plan[6] Deferred Revenue - Deferred revenue increased to $489.694 million as of September 30, 2025, up from $457.608 million at the end of 2024, indicating strong future revenue recognition[26] Cash Flow - Net cash provided by operating activities for the three months ended September 30, 2025, was $46.155 million, compared to $18.906 million in the same period of 2024[28] - Free cash flow for Q3 2025 was $46.064 million, compared to $18.663 million in Q3 2024, indicating a growth of 147%[35]

Core Viewpoint - The investment outlook for Workiva (NYSE: WK) is positive, with expectations of continued revenue growth driven by demand tailwinds, focusing on medium to long-term investments while also exploring short-term opportunities for alpha generation [1] Company Analysis - The investment strategy emphasizes bottom-up analysis, assessing the fundamental strengths and weaknesses of individual companies [1] - The goal is to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Core Viewpoint - The investment outlook for Workiva (NYSE: WK) is positive, driven by expected demand tailwinds that will support revenue growth in the foreseeable future [1] Company Analysis - The investment strategy focuses on long-term investments while also considering short-term opportunities to uncover alpha [1] - The analysis is based on a bottom-up approach, examining the fundamental strengths and weaknesses of individual companies [1] - The target investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Core Points - Workiva Inc. will release its financial results for the third fiscal quarter ended September 30, 2025, after the market closes on November 5, 2025 [1] - A conference call and live webcast will be held to discuss the financial results, starting at 5:00 p.m. Eastern Time (21:00 GMT) on November 5, 2025 [1]

Core Insights - Workiva has developed a platform that integrates various productivity, storage, and finance applications, enhancing data accessibility for managers [2] - The company is leveraging artificial intelligence to improve its platform's capabilities, allowing for more efficient report generation and data management [5][7] - Workiva's stock has decreased by 49% from its peak in 2021, but recent financial performance and a large addressable market suggest potential for recovery [3][9] Financial Performance - In Q2 2025, Workiva reported total revenue of $215 million, reflecting a 21% year-over-year increase, which is an acceleration from the 17% growth in Q1 2025 [8] - The company has raised its revenue forecast for 2025, indicating positive growth prospects despite still representing a small portion of its addressable market [9] Product Features - Workiva AI assists managers in customizing reports by automating adjustments that were previously done manually, enhancing efficiency [5][6] - The platform includes a chat function that provides on-demand insights based on the organization's data, improving user experience and support [7]

Company Overview - Workiva is a provider of cloud-based reporting solutions that address financial and non-financial business challenges, integrating financial reporting, ESG, and GRC into a secure, audit-ready platform [1][4] - The platform is built primarily on Amazon Web Services and connects data from various enterprise systems, enhancing reporting capabilities for clients [1] Activist Involvement - Irenic Capital Management has acquired a roughly 2% stake in Workiva and is advocating for improved operating efficiency, strategic alternatives, and enhanced corporate governance [2][3][6] - Irenic is pushing for the addition of two new board members, including one of its executives, and has indicated a willingness to nominate directors if no agreement is reached [3][17] Financial Performance - Workiva derives over 40% of its revenue from its SEC filing service, with a strong customer base including 95% of the Fortune 100 [4] - Despite projected revenue exceeding $1 billion by 2026, Workiva has yet to achieve profitability, leading to its shares trading at a 25% discount compared to peers [5][6] Governance Issues - The company operates under a dual-class share structure controlled by its three founders, resulting in a staggered board with limited relevant experience [7][14] - Irenic is advocating for the collapse of the dual-class structure and a reconstitution of the board with qualified directors [8][9] Operational Challenges - Workiva's sales and marketing expenses account for 43% of revenue, significantly higher than the 31% average for peers, contributing to margin pressure [9][10] - The company has an 18% revenue growth rate but could improve profitability by reducing sales force spending while maintaining double-digit growth [10] Strategic Alternatives - Irenic suggests that if Workiva cannot improve its governance and operational efficiency, the board should consider a strategic review, including a potential sale of the company [11] - Workiva's strong market position and client base make it an attractive target for potential acquirers, with previous interest from private equity firms [12][14] Valuation Insights - Comparable transactions indicate a forward revenue multiple of 7 to 8 times for financial acquirers, suggesting a potential upside of 40% to 60% based on projected revenues [13]

Core Insights - Irenic Capital Management, LP, a significant shareholder of Workiva, Inc., has approximately 2% of the Company's outstanding shares and has issued a presentation with actionable recommendations to address the Company's significant share price underperformance relative to peers [1] Group 1 - Irenic Capital Management believes that Workiva is a high-quality business with market-leading products [1]

Core Viewpoint - Irenic Capital Management has acquired a significant stake in Workiva, emphasizing the need for the company to enhance its operating efficiency, refresh its board, and consider a potential sale [1] Group 1 - Irenic Capital Management has built a sizable stake in Workiva [1] - The investment firm argues that Workiva needs to improve its operating efficiency [1] - There is a call for Workiva to refresh its board [1] - Irenic Capital Management suggests that Workiva should consider a potential sale [1]

Group 1 - TimesSquare Capital Management reported a gross return of 11.28% and a net return of 11.02% for its "U.S. Small Cap Growth Strategy" in Q2 2025, compared to the Russell 2000 Growth Index return of 11.97% [1] - The fund's performance was driven by double-digit returns in equities as global economic activity improved [1] - Workiva Inc. (NYSE:WK) was highlighted as a key stock, with a one-month return of 4.94% and a 52-week gain of 4.96%, closing at $78.44 per share with a market capitalization of $4.394 billion on September 11, 2025 [2] Group 2 - Workiva Inc. is recognized for its cloud-based compliance and regulatory reporting solutions, with Q2 2025 revenue reaching $215 million, a 21% increase from Q2 2024 [4] - The company maintained its full-year revenue guidance, indicating ongoing momentum in multi-solution platform deals, although management noted potential impacts on new business bookings due to a less favorable buying environment, which led to a 10% decline in stock price [3] - Workiva Inc. was held by 30 hedge fund portfolios at the end of Q2 2025, down from 35 in the previous quarter, suggesting a decrease in popularity among hedge funds [4]