Workiva Reports Q2 2025 Earnings: Revenue Down 3%, Guidance Lowered

Workiva Inc. (WK) reported Q2 2025 earnings with CEO Julie Iskow and CFO Jill Klindt participating in the conference call. The company's financial results and guidance for the third quarter and full year 2025 were discussed. Investors can access the press release and supplemental materials on the company's Investor Relations website.

Workiva Inc. (WK) reported robust financial results for the second quarter of 2025, significantly exceeding analysts' expectations. The company's earnings per share (EPS) of $0.19 far surpassed the forecasted $0.05, marking a 280% surprise increase. Revenue reached $215 million, slightly exceeding the forecast of $208.86 million. Despite these impressive figures, Workiva's stock fell 4.02% during regular trading hours, closing at $66.50, but saw a slight uptick of 0.54% in aftermarket trading.

The company's strong performance was driven by a 21% year-over-year increase in total revenue, with subscription revenue growing by 23%. Workiva's gross retention rate stood at an impressive 97%, and its net retention rate was 114%, indicating a robust customer base. The company maintains a healthy liquidity position with a current ratio of 1.78, reflecting its ability to meet short-term obligations.

CEO Julie Isco highlighted the company's strategic focus on expanding its AI capabilities and enhancing its platform. She noted that Workiva continues to see companies standardize on the platform and expand their solution use across financial reporting, GRC, sustainability, and industry-specific solutions. The company's operating margin outlook for 2025 has been raised to account for anticipated margin expansion in the third and fourth quarters.

For the full year 2025, Workiva projects total revenue between $870 million and $873 million, with subscription revenue growth expected to be approximately 20%. The company also anticipates a non-GAAP operating margin of 7-7.5% and a free cash flow margin of 10.5%. These projections reflect Workiva's focus on sustainable and profitable growth.

Despite the positive earnings report, the stock price fell by 4.02% during regular trading, closing at $66.50. The stock is trading closer to its 52-week low of $60.50, well below the 52-week high of $116.83. However, in aftermarket trading, the stock saw a slight recovery, rising by 0.54% to $66.86.

Investors can access the press release and supplemental materials on the company's Investor Relations website.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-workiva-q2-2025-earnings-exceed-forecasts-stock-dips-93CH-4164827