Fiscal fourth quarter subscription & support revenue increased by 21%
Total revenue was $239 million, up 20% year-over-year
GAAP operating margin was 3.4%, non-GAAP operating margin was 19.1%
Fiscal year 2025 subscription & support revenue increased by 22%
Total revenue was $885 million, up 20% year-over-year
GAAP operating margin was (4.8)%, non-GAAP operating margin was 9.9%
Operating cash flow margin was 15.8%, free cash flow margin was 15.6%
Repurchased $72 million worth of Class A common stock in 2025 under the 2024 share repurchase plan
Announced increase to 2024 share repurchase plan by additional $250 million
NEW YORK, February 19, 2026--(BUSINESS WIRE)--Workiva Inc. (NYSE: WK), a leading, AI-powered platform for trust, transparency, and accountability, today announced financial results for its fourth quarter and full year ended December 31, 2025.
"We had a strong finish to the year, with accelerated growth and profitability compared to last year. Our fit-for-purpose solutions for Financial Reporting, GRC, and Sustainability continue to resonate with the office of the CFO, delivering trusted data and insights in the AI era," said Julie Iskow, President & Chief Executive Officer. "Our Q4 performance underscores the critical relevance of our AI-powered platform in delivering trust and transparency. FY 2025 was also a year of strategic evolution that sets us up well for the long-term durable growth opportunity we see ahead of us, built on a foundation of innovation and reliability."
"We outperformed both the top and bottom line driven by strong execution across the business. FY 2025 subscription revenue grew by 22% year-over-year, and non-GAAP operating margin was 9.9%, up from 4.3% the year prior," said Barbara Larson, Chief Financial Officer. "I'm thrilled to have joined Workiva on the heels of an outstanding year. I look forward to partnering with Julie to drive operational excellence, focus on continued margin expansion, and execute a growth strategy that positions us to surpass one billion dollars in total revenue in 2026."
Fourth Quarter 2025 Financial Results
Revenue: Total revenue for the fourth quarter of 2025 reached $239 million, an increase of 20% from $200 million in the fourth quarter of 2024. Subscription and support revenue contributed $219 million, up 21% versus the fourth quarter of 2024. Professional services revenue was $20 million, up slightly from the fourth quarter of 2024.
Operating Margin: GAAP operating margin for the fourth quarter of 2025 was 3.4% compared to (6.6)% in the prior year's fourth quarter. Non-GAAP operating margin was 19.1% compared to 7.4% in the fourth quarter of 2024.
GAAP Net Income (Loss): GAAP net income for the fourth quarter of 2025 was $12 million compared with a net loss of $(9) million for the prior year's fourth quarter. GAAP net income per basic share and diluted share was $0.21 and $0.20, respectively, compared with a net loss per basic and diluted share of $(0.16) in the fourth quarter of 2024.
Non-GAAP Net Income: Non-GAAP net income for the fourth quarter of 2025 was $50 million compared with non-GAAP net income of $19 million in the prior year's fourth quarter. Non-GAAP net income per basic share and diluted share in the fourth quarter of 2025 was $0.88 and $0.78, respectively, compared with non-GAAP net income per basic share and diluted share of $0.35 and $0.33, respectively, in the fourth quarter of 2024.
Liquidity: As of December 31, 2025, Workiva had cash, cash equivalents, and marketable securities totaling $892 million, compared with $816 million as of December 31, 2024. Workiva had $71 million aggregate principal amount of 1.125% convertible senior notes due in 2026, $702 million aggregate principal amount of 1.250% convertible senior notes due in 2028, and $14 million of finance lease obligations outstanding as of December 31, 2025.
Key Metrics and Recent Business Highlights
Customers: Workiva had 6,624 customers as of December 31, 2025, a net increase of 319 customers from December 31, 2024.
Retention Rate: As of December 31, 2025, Workiva's gross retention rate was 97%, and the net retention rate was 113%. Net retention includes changes in both solutions and pricing for existing customers.
Large Contracts: As of December 31, 2025, Workiva had 2,507 customers with an annual contract value ("ACV") of more than $100,000, up 22% from 2,055 customers at December 31, 2024. Workiva had 592 customers with an ACV of more than $300,000, up 42% from 416 customers in the fourth quarter of 2024. Workiva had 248 customers with an ACV of more than $500,000, up 37% from 181 customers in the fourth quarter of 2024.
Share Repurchase Plan: On July 30, 2024, our board of directors authorized a share repurchase plan for up to $100 million of our outstanding Class A common stock. During the fourth quarter of 2025, Workiva purchased approximately 131,000 shares for $12 million under the plan. As of December 31, 2025, approximately $28 million remained available under the plan for future share repurchases. On February 16, 2026, our board of directors modified the repurchase plan to authorize an additional $250 million of the Company’s outstanding Class A common stock for repurchase under the plan.
Full Year 2025 Financial Results
Revenue: Total revenue for the full year 2025 reached $885 million, an increase of 20% from $739 million in 2024. Subscription and support revenue contributed $813 million, up 22% compared to 2024. Professional services revenue was $72 million, relatively flat compared to the prior year.
Operating Margin: GAAP operating margin for 2025 was (4.8)% compared to (10.3)% in the prior year. Non-GAAP operating margin was 9.9% compared to 4.3% in 2024.
GAAP Net Loss: GAAP net loss for 2025 was $(26) million compared with a net loss of $(55) million in the prior year. GAAP net loss per basic and diluted share was $(0.47) compared with a net loss per basic and diluted share of $(0.99) in 2024.
Non-GAAP Net Income: Non-GAAP net income for 2025 was $104 million compared with non-GAAP net income of $54 million in the prior year. Non-GAAP net income per basic share and diluted share in 2025 was $1.84 and $1.78, respectively, compared with non-GAAP net income per basic share and diluted share of $0.97 and $0.94, respectively, in 2024.
Cash Flow: Net cash provided by operating activities was $140 million in 2025, compared to cash provided by operating activities of $88 million in 2024. Free cash flow was $138 million in 2025 compared to free cash flow of $86 million in 2024. Free cash flow margin was 15.6% in 2025 compared to 11.7% in 2024.
Financial Outlook
As of February 19, 2026, Workiva is providing guidance as follows:
First Quarter 2026 Guidance:
Total revenue is expected to be in the range of $244 million to $246 million.
GAAP operating margin is expected to be in the range of 2.7% to 3.3%.
Non-GAAP operating margin is expected to be in the range of 15.5% to 16.0%.
GAAP net income per diluted share is expected to be in the range of $0.17 to $0.20 using 57.7 million shares.
Non-GAAP net income per diluted share is expected to be in the range of $0.64 to $0.67 using 63.8 million shares.
Full Year 2026 Guidance:
Total revenue is expected to be in the range of $1.036 billion to $1.040 billion.
GAAP operating margin is expected to be in the range of 2.6% to 3.2%.
Non-GAAP operating margin is expected to be in the range of 15.0% to 15.5%.
GAAP net income per diluted share is expected to be in the range of $0.70 to $0.80 using 57.8 million shares.
Non-GAAP net income per diluted share is expected to be in the range of $2.66 to $2.76 using 63.0 million shares.
Free cash flow margin is expected to be approximately 19%.
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 fourth quarter and full fiscal year 2025, in addition to discussing the Company’s outlook for the first quarter and full year 2026. 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 trust, transparency, and accountability. Accounting, finance, sustainability, risk and audit teams from more than 6,600 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, non-GAAP income from operations and non-GAAP operating margin, 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 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 operating margin is the ratio calculated by dividing non-GAAP income from operations by revenues. 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 December 31, | Year ended December 31, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
(unaudited) | |||||||||||||||
Revenue | |||||||||||||||
Subscription and support | $ | 219,332 | $ | 180,897 | $ | 812,627 | $ | 667,646 | |||||||
Professional services | 19,603 | 18,992 | 71,941 | 71,034 | |||||||||||
Total revenue | 238,935 | 199,889 | 884,568 | 738,680 | |||||||||||
Cost of revenue | |||||||||||||||
Subscription and support (1) | 33,482 | 32,204 | 136,645 | 118,697 | |||||||||||
Professional services (1) | 12,685 | 13,485 | 53,785 | 53,358 | |||||||||||
Total cost of revenue | 46,167 | 45,689 | 190,430 | 172,055 | |||||||||||
Gross profit | 192,768 | 154,200 | 694,138 | 566,625 | |||||||||||
Operating expenses | |||||||||||||||
Research and development (1) | 54,818 | 50,607 | 214,844 | 192,935 | |||||||||||
Sales and marketing (1) | 102,049 | 90,157 | 408,872 | 347,243 | |||||||||||
General and administrative (1) | 28,041 | 26,756 | 112,863 | 102,981 | |||||||||||
Total operating expenses | 184,908 | 167,520 | 736,579 | 643,159 | |||||||||||
Income (loss) from operations | 7,860 | (13,320 | ) | (42,441 | ) | (76,534 | ) | ||||||||
Interest income | 8,620 | 9,306 | 34,153 | 39,395 | |||||||||||
Interest expense | (3,193 | ) | (3,197 | ) | (12,777 | ) | (12,865 | ) | |||||||
Other (expense) income, net | (699 | ) | 872 | (1,350 | ) | 563 | |||||||||
Income (loss) before provision for income taxes | 12,588 | (6,339 | ) | (22,415 | ) | (49,441 | ) | ||||||||
Provision for income taxes | 772 | 2,476 | 3,754 | 5,601 | |||||||||||
Net income (loss) | $ | 11,816 | $ | (8,815 | ) | $ | (26,169 | ) | $ | (55,042 | ) | ||||
Net income (loss) per common share: | |||||||||||||||
Basic | $ | 0.21 | $ | (0.16 | ) | $ | (0.47 | ) | $ | (0.99 | ) | ||||
Diluted | $ | 0.20 | $ | (0.16 | ) | $ | (0.47 | ) | $ | (0.99 | ) | ||||
Weighted-average common shares outstanding | |||||||||||||||
Basic | 56,503,191 | 55,739,950 | 56,272,517 | 55,355,381 | |||||||||||
Diluted | 57,903,207 | 55,739,950 | 56,272,517 | 55,355,381 | |||||||||||
(1) Includes stock-based compensation expense as follows:
Three months ended December 31, | Year ended December 31, | ||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||
(unaudited) | |||||||||||
Cost of revenue | |||||||||||
Subscription and support | $ | 2,692 | $ | 2,271 | $ | 10,271 | $ | 7,979 | |||
Professional services | 1,057 | 873 | 4,261 | 3,221 | |||||||
Operating expenses | |||||||||||
Research and development | 9,669 | 5,562 | 28,867 | 21,036 | |||||||
Sales and marketing | 12,612 | 8,869 | 42,108 | 35,339 | |||||||
General and administrative | 10,314 | 8,696 | 37,438 | 34,575 | |||||||
WORKIVA INC. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) | |||||||
As of December 31, | |||||||
2025 | 2024 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 338,769 | $ | 301,835 | |||
Marketable securities | 552,852 | 514,585 | |||||
Accounts receivable, net | 168,984 | 148,433 | |||||
Deferred costs | 62,619 | 50,914 | |||||
Other receivables | 10,383 | 10,276 | |||||
Prepaid expenses and other | 28,778 | 22,199 | |||||
Total current assets | 1,162,385 | 1,048,242 | |||||
Property and equipment, net | 20,546 | 21,825 | |||||
Operating lease right-of-use assets | 13,986 | 11,786 | |||||
Deferred costs, non-current | 59,767 | 54,858 | |||||
Goodwill | 206,164 | 196,844 | |||||
Intangible assets, net | 22,270 | 27,389 | |||||
Other assets | 8,453 | 7,525 | |||||
Total assets | $ | 1,493,571 | $ | 1,368,469 | |||
Liabilities and Stockholders’ Deficit | |||||||
Current liabilities | |||||||
Accounts payable | $ | 8,932 | $ | 7,747 | |||
Accrued expenses and other current liabilities | 113,115 | 126,508 | |||||
Deferred revenue | 547,919 | 457,608 | |||||
Convertible senior notes, current | 71,072 | — | |||||
Finance lease obligations | 614 | 562 | |||||
Total current liabilities | 741,652 | 592,425 | |||||
Convertible senior notes, non-current | 696,263 | 764,891 | |||||
Deferred revenue, non-current | 37,305 | 29,681 | |||||
Other long-term liabilities | 92 | 227 | |||||
Operating lease liabilities, non-current | 10,472 | 9,441 | |||||
Finance lease obligations, non-current | 13,223 | 13,488 | |||||
Total liabilities | 1,499,007 | 1,410,153 | |||||
Stockholders’ deficit | |||||||
Common stock | 57 | 56 | |||||
Additional paid-in-capital | 720,923 | 672,363 | |||||
Accumulated deficit | (733,852 | ) | (707,683 | ) | |||
Accumulated other comprehensive income (loss) | 7,436 | (6,420 | ) | ||||
Total stockholders’ deficit | (5,436 | ) | (41,684 | ) | |||
Total liabilities and stockholders’ deficit | $ | 1,493,571 | $ | 1,368,469 | |||
WORKIVA INC. | |||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(in thousands) | |||||||||||||||
Three months ended December 31, | Year ended December 31, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
(unaudited) | |||||||||||||||
Cash flows from operating activities | |||||||||||||||
Net income (loss) | $ | 11,816 | $ | (8,815 | ) | $ | (26,169 | ) | $ | (55,042 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||||||
Depreciation and amortization | 2,461 | 2,911 | 10,990 | 11,003 | |||||||||||
Stock-based compensation expense | 36,344 | 26,271 | 122,945 | 102,150 | |||||||||||
Provision for (recovery of) doubtful accounts | 72 | 85 | (214 | ) | 39 | ||||||||||
Accretion of premiums and discounts on marketable securities, net | (940 | ) | (2,286 | ) | (5,144 | ) | (11,829 | ) | |||||||
Amortization of debt discount and issuance costs | 612 | 610 | 2,444 | 2,436 | |||||||||||
Deferred income tax | (321 | ) | (337 | ) | (396 | ) | (629 | ) | |||||||
Changes in assets and liabilities: | |||||||||||||||
Accounts receivable | (24,357 | ) | (12,845 | ) | (17,475 | ) | (24,352 | ) | |||||||
Deferred costs | (15,096 | ) | (19,337 | ) | (13,732 | ) | (34,477 | ) | |||||||
Operating lease right-of-use assets | 1,500 | 1,328 | 5,636 | 5,136 | |||||||||||
Other receivables | (229 | ) | (1,680 | ) | (8 | ) | 1,116 | ||||||||
Prepaid expenses and other | (3,162 | ) | (1,311 | ) | (6,083 | ) | 1,453 | ||||||||
Other assets | (1,047 | ) | (1,094 | ) | (356 | ) | (2,285 | ) | |||||||
Accounts payable | (2,314 | ) | (5,231 | ) | 651 | 2,399 | |||||||||
Deferred revenue | 55,862 | 51,681 | 88,703 | 73,840 | |||||||||||
Operating lease liabilities | (1,230 | ) | (907 | ) | (4,121 | ) | (3,738 | ) | |||||||
Accrued expenses and other liabilities | (9,009 | ) | 14,927 | (17,601 | ) | 20,486 | |||||||||
Net cash provided by operating activities | 50,962 | 43,970 | 140,070 | 87,706 | |||||||||||
Cash flows from investing activities | |||||||||||||||
Purchase of property and equipment | (226 | ) | (809 | ) | (2,075 | ) | (1,363 | ) | |||||||
Purchase of marketable securities | (112,221 | ) | (92,160 | ) | (425,492 | ) | (402,235 | ) | |||||||
Maturities of marketable securities | 98,771 | 106,290 | 390,473 | 452,023 | |||||||||||
Sale of marketable securities | 2,533 | — | 2,533 | 4,609 | |||||||||||
Acquisitions, net of cash acquired | — | — | — | (98,092 | ) | ||||||||||
Purchase of intangible assets | (286 | ) | (74 | ) | (391 | ) | (191 | ) | |||||||
Net cash (used in) provided by investing activities | (11,429 | ) | 13,247 | (34,952 | ) | (45,249 | ) | ||||||||
Cash flows from financing activities | |||||||||||||||
Proceeds from option exercises | 3,346 | 1,044 | 6,220 | 4,909 | |||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | (9,154 | ) | (34 | ) | (22,674 | ) | (11,458 | ) | |||||||
Proceeds from shares issued in connection with employee stock purchase plan | — | — | 13,698 | 13,822 | |||||||||||
Repurchases of Class A common stock | (11,507 | ) | — | (71,628 | ) | — | |||||||||
Principal payments on finance lease obligations | (142 | ) | (137 | ) | (560 | ) | (532 | ) | |||||||
Net cash (used in) provided by financing activities | (17,457 | ) | 873 | (74,944 | ) | 6,741 | |||||||||
Effect of foreign exchange rates on cash | 779 | (4,494 | ) | 6,957 | (3,569 | ) | |||||||||
Net increase in cash, cash equivalents, and restricted cash | 22,855 | 53,596 | 37,131 | 45,629 | |||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 316,626 | 248,754 | 302,350 | 256,721 | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 339,481 | $ | 302,350 | $ | 339,481 | $ | 302,350 | |||||||
Three months ended December 31, | Year ended December 31, | ||||||||||
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 | $ | 338,769 | $ | 301,835 | $ | 338,769 | $ | 301,835 | |||
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 | $ | 339,481 | $ | 302,350 | $ | 339,481 | $ | 302,350 | |||
TABLE I | |||||||||||||||
WORKIVA INC. | |||||||||||||||
RECONCILIATION OF NON-GAAP INFORMATION | |||||||||||||||
(in thousands, except share and per share) | |||||||||||||||
Three months ended December 31, | Year ended December 31, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Gross profit, subscription and support | $ | 185,850 | $ | 148,693 | $ | 675,982 | $ | 548,949 | |||||||
Add back: Stock-based compensation | 2,692 | 2,271 | 10,271 | 7,979 | |||||||||||
Add back: Amortization of acquisition-related intangibles | 970 | 916 | 3,771 | 1,923 | |||||||||||
Gross profit, subscription and support, non-GAAP | $ | 189,512 | $ | 151,880 | $ | 690,024 | $ | 558,851 | |||||||
Gross profit, professional services | $ | 6,918 | $ | 5,507 | $ | 18,156 | $ | 17,676 | |||||||
Add back: Stock-based compensation | 1,057 | 873 | 4,261 | 3,221 | |||||||||||
Gross profit, professional services, non-GAAP | $ | 7,975 | $ | 6,380 | $ | 22,417 | $ | 20,897 | |||||||
Gross profit | $ | 192,768 | $ | 154,200 | $ | 694,138 | $ | 566,625 | |||||||
Add back: Stock-based compensation | 3,749 | 3,144 | 14,532 | 11,200 | |||||||||||
Add back: Amortization of acquisition-related intangibles | 970 | 916 | 3,771 | 1,923 | |||||||||||
Gross profit, non-GAAP | $ | 197,487 | $ | 158,260 | $ | 712,441 | $ | 579,748 | |||||||
Cost of revenue, subscription and support | $ | 33,482 | $ | 32,204 | $ | 136,645 | $ | 118,697 | |||||||
Less: Stock-based compensation | 2,692 | 2,271 | 10,271 | 7,979 | |||||||||||
Less: Amortization of acquisition-related intangibles | 970 | 916 | 3,771 | 1,923 | |||||||||||
Cost of revenue, subscription and support, non-GAAP | $ | 29,820 | $ | 29,017 | $ | 122,603 | $ | 108,795 | |||||||
Cost of revenue, professional services | $ | 12,685 | $ | 13,485 | $ | 53,785 | $ | 53,358 | |||||||
Less: Stock-based compensation | 1,057 | 873 | 4,261 | 3,221 | |||||||||||
Cost of revenue, professional services, non-GAAP | $ | 11,628 | $ | 12,612 | $ | 49,524 | $ | 50,137 | |||||||
Research and development | $ | 54,818 | $ | 50,607 | $ | 214,844 | $ | 192,935 | |||||||
Less: Stock-based compensation | 9,669 | 5,562 | 28,867 | 21,036 | |||||||||||
Less: Amortization of acquisition-related intangibles | 69 | 495 | 1,279 | 2,762 | |||||||||||
Research and development, non-GAAP | $ | 45,080 | $ | 44,550 | $ | 184,698 | $ | 169,137 | |||||||
Sales and marketing | $ | 102,049 | $ | 90,157 | $ | 408,872 | $ | 347,243 | |||||||
Less: Stock-based compensation | 12,612 | 8,869 | 42,108 | 35,339 | |||||||||||
Less: Amortization of acquisition-related intangibles | 489 | 453 | 1,905 | 1,745 | |||||||||||
Sales and marketing, non-GAAP | $ | 88,948 | $ | 80,835 | $ | 364,859 | $ | 310,159 | |||||||
General and administrative | $ | 28,041 | $ | 26,756 | $ | 112,863 | $ | 102,981 | |||||||
Less: Stock-based compensation | 10,314 | 8,696 | 37,438 | 34,575 | |||||||||||
General and administrative, non-GAAP | $ | 17,727 | $ | 18,060 | $ | 75,425 | $ | 68,406 | |||||||
Income (loss) from operations | $ | 7,860 | $ | (13,320 | ) | $ | (42,441 | ) | $ | (76,534 | ) | ||||
Add back: Stock-based compensation | 36,344 | 26,271 | 122,945 | 102,150 | |||||||||||
Add back: Amortization of acquisition-related intangibles | 1,528 | 1,864 | 6,955 | 6,429 | |||||||||||
Income from operations, non-GAAP | $ | 45,732 | $ | 14,815 | $ | 87,459 | $ | 32,045 | |||||||
GAAP operating margin | 3.4 | % | (6.6 | )% | (4.8 | )% | (10.3 | )% | |||||||
Non-GAAP operating margin | 19.1 | % | 7.4 | % | 9.9 | % | 4.3 | % | |||||||
Net income (loss) | $ | 11,816 | $ | (8,815 | ) | $ | (26,169 | ) | $ | (55,042 | ) | ||||
Add back: Stock-based compensation | 36,344 | 26,271 | 122,945 | 102,150 | |||||||||||
Add back: Amortization of acquisition-related intangibles | 1,528 | 1,864 | 6,955 | 6,429 | |||||||||||
Net income, non-GAAP | $ | 49,688 | $ | 19,320 | $ | 103,731 | $ | 53,537 | |||||||
Net income (loss) per basic share | $ | 0.21 | $ | (0.16 | ) | $ | (0.47 | ) | $ | (0.99 | ) | ||||
Add back: Stock-based compensation | 0.64 | 0.48 | 2.19 | 1.84 | |||||||||||
Add back: Amortization of acquisition-related intangibles | 0.03 | 0.03 | 0.12 | 0.12 | |||||||||||
Net income per basic share, non-GAAP | $ | 0.88 | $ | 0.35 | $ | 1.84 | $ | 0.97 | |||||||
Net income (loss) per diluted share | $ | 0.20 | $ | (0.16 | ) | $ | (0.47 | ) | $ | (0.99 | ) | ||||
Net income per diluted share, non-GAAP | $ | 0.78 | $ | 0.33 | $ | 1.78 | $ | 0.94 | |||||||
Weighted-average common shares outstanding - diluted | 57,903,207 | 55,739,950 | 56,272,517 | 55,355,381 | |||||||||||
Weighted-average common shares outstanding - diluted, non-GAAP | 64,035,232 | 58,305,243 | 58,295,120 | 56,687,199 | |||||||||||
Net cash provided by operating activities | $ | 50,962 | 43,970 | 140,070 | 87,706 | ||||||||||
Purchase of property and equipment | (226 | ) | (809 | ) | (2,075 | ) | (1,363 | ) | |||||||
Free cash flow | $ | 50,736 | $ | 43,161 | $ | 137,995 | $ | 86,343 | |||||||
Operating cash flow margin | 21.3 | % | 22.0 | % | 15.8 | % | 11.9 | % | |||||||
Free cash flow margin | 21.2 | % | 21.6 | % | 15.6 | % | 11.7 | % | |||||||
TABLE II | |||||||||||||||
WORKIVA INC. | |||||||||||||||
RECONCILIATION OF NON-GAAP GUIDANCE | |||||||||||||||
Three months ending March 31, 2026 | Year ending December 31, 2026 | ||||||||||||||
GAAP operating margin | 2.7 | % | - | 3.3 | % | 2.6 | % | - | 3.2 | % | |||||
Add back: Stock-based compensation | 12.2 | % | - | 12.1 | % | 11.8 | % | - | 11.7 | % | |||||
Add back: Amortization of acquisition-related intangibles | 0.6 | % | - | 0.6 | % | 0.6 | % | - | 0.6 | % | |||||
Non-GAAP operating margin | 15.5 | % | - | 16.0 | % | 15.0 | % | - | 15.5 | % | |||||
Net income per diluted share, GAAP | $ | 0.17 | - | $ | 0.20 | $ | 0.70 | - | $ | 0.80 | |||||
Add back: Stock-based compensation | 0.51 | - | 0.51 | 2.11 | - | 2.11 | |||||||||
Add back: Amortization of acquisition-related intangibles | 0.03 | - | 0.03 | 0.10 | - | 0.10 | |||||||||
Effect of potentially dilutive securities | (0.07 | ) | - | (0.07 | ) | (0.25 | ) | - | (0.25 | ) | |||||
Net income per diluted share, non-GAAP | $ | 0.64 | - | $ | 0.67 | $ | 2.66 | - | $ | 2.76 | |||||
Weighted-average common shares used in calculating GAAP earnings per share, diluted | 57,700,000 | 57,700,000 | 57,800,000 | 57,800,000 | |||||||||||
Weighted-average common shares used in calculating non-GAAP earnings per share, diluted | 63,800,000 | 63,800,000 | 63,000,000 | 63,000,000 | |||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260219706699/en/
Contacts
Investor Contact:
Katie White
Workiva Inc.
investor@workiva.com
Media Contact:
Bill Bode
Workiva Inc.
press@workiva.com