TimesSquare Capital Management's Q2 2025 Investor Letter Highlights Workiva's 10% Decline

Workiva Inc. (WK) stock declined 10% in Q2, according to TimesSquare Capital Management's U.S. Small Cap Growth Strategy. The company offers cloud-based compliance and regulatory reporting solutions, with revenue increasing 21% YoY in Q2. However, management cautioned that new business bookings could be impacted by a less favorable buying environment.

Workiva Inc. (WK) stock declined by 10% in the second quarter (Q2) of 2025, according to TimesSquare Capital Management's U.S. Small Cap Growth Strategy. Despite the decline, the company reported a 21% year-over-year (YoY) increase in revenue during the same period. This growth was driven by the company's robust cloud-based compliance and regulatory reporting solutions.

Management at Workiva has cautioned that new business bookings could be impacted by a less favorable buying environment. However, the company's recent initiatives to enhance its intelligent platform at the Amplify conference may help mitigate these challenges. These enhancements include the introduction of agentic AI and advanced data automation, which align with broader market trends driven by a surge in AI popularity Workiva (WK) Unveils AI-Driven Platform Expansion For Enhanced CFO Productivity^[1].

The company's Q2 earnings report showed a net loss, but the initiatives to address industry challenges and streamline workflows might have contributed to a 14% share price rise over the last quarter. The recent enhancements to Workiva's intelligent platform could bolster revenue growth by driving contract values and subscription revenues, particularly in sustainability solutions. The integration of AI could enhance operational efficiencies, supporting future earnings projections.

Analysts are optimistic about Workiva's prospects, as reflected in the company’s price target of $94.10, indicating a potential upside from the current share price of $77.18. Over the past five years, Workiva's total return, including dividends and share price changes, was 45.43%, offering a longer-term perspective on its performance Workiva (WK) Unveils AI-Driven Platform Expansion For Enhanced CFO Productivity^[1].

The company's recent initiatives come amid challenges, with revenue currently at $806.98 million and earnings at a US$66.58 million loss. The anticipated expansion and technological advancements are expected to influence future revenue and earning forecasts positively. If these innovations succeed in driving subscription revenue, they could potentially support the analyst consensus price target increase.

The disparity between the current share price and the consensus target suggests investors may expect further growth from these strategic developments. Take a closer look at Workiva's potential here in our financial health report.