Workiva Surges 32% on Q2 Earnings, Revenue Up 21% YoY

Workiva (WK) shares surged 32.07% after reporting strong Q2 earnings with a 21% increase in revenue to $215 million, surpassing analyst expectations. The company's subscription and support services grew 23% to $198 million, and non-GAAP net income rose 22% to $11 million or $0.19 per share. Workiva expects revenue between $870 million and $873 million in 2025, up at least 18% from 2024, and adjusted earnings per share between $1.31 and $1.38.

Title: Workiva's Strong Q2 Earnings Drive Stock Surge

Workiva Inc. (WK) reported robust financial results for the second quarter of 2025, leading to a significant 32.07% surge in its stock price. The company's revenue increased by 21% to $215 million, surpassing analyst expectations. Subscription and support services grew by 23% to $198 million, while non-GAAP net income rose by 22% to $11 million, equating to $0.19 per share [1].

Workiva's earnings per share (EPS) of $0.19 exceeded the forecasted $0.05, marking a 280% surprise. This substantial beat reflects the company's strong operational performance and strategic initiatives. Revenue also surpassed expectations by 2.94%, coming in at $215 million compared to the anticipated $208.86 million [1].

Despite the positive earnings report, Workiva's stock declined 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, indicating some positive investor sentiment following the earnings release [1].

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 [1].

Workiva's CEO, Julie Isco, highlighted the company's strategic focus: "We continue to see companies standardize on the Workiva platform and expand their solution use across financial reporting, GRC, sustainability, and industry-specific solutions." She also noted the company's strong positioning: "We have spent a decade and a half building trusted relationships with our customers." Risks and challenges include macroeconomic uncertainties, demand moderation in the sustainability market, and competition from point solutions and legacy technologies [1].

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