Workiva — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $263 million, an increase of 17% year-over-year from $224 million in Q3 2025.
• Subscription and support revenue was $246 million, up 17% year-over-year from $209.6 million.
• Professional services revenue was $17 million, up 15% year-over-year from $14.6 million.
• GAAP operating margin was 6.8%, compared to (1.5)% in Q3 2025.
• Non-GAAP operating margin was 18.3%, an expansion of 560 basis points from 12.7% in Q3 2025.
• GAAP net income was $19 million, compared to $3 million in Q3 2025; GAAP net income per diluted share was $0.35 versus $0.05.
• Non-GAAP net income was $41 million, compared to $27 million in Q3 2025; Non-GAAP net income per diluted share was $0.72 versus $0.46.
• Operating cash flow was $70 million, compared to $46 million in Q3 2025.
• Free cash flow was $69 million, compared to $46 million in Q3 2025.
• Cash, cash equivalents, and marketable securities totaled $817 million as of September 30, 2026, down from $892 million as of December 31, 2025.
• The 1.125% convertible senior notes due in 2026 were fully settled upon maturity on August 15, 2026, resulting in a $71 million cash outflow.
• Outstanding debt included $702 million in aggregate principal amount of 1.250% convertible senior notes due in 2028 and $13 million in finance lease obligations.

Guidance and Future Outlook:

• Q4 2026 total revenue guidance is $275 million to $278 million.
• Q4 2026 GAAP operating margin guidance is 7.1% to 7.7%; non-GAAP operating margin guidance is 19.0% to 19.5%.
• Q4 2026 GAAP net income per diluted share guidance is $0.40 to $0.42; non-GAAP net income per diluted share guidance is $0.78 to $0.80.
• Full Year 2026 total revenue guidance is $1.041 billion to $1.044 billion.
• Full Year 2026 GAAP operating margin guidance is 6.2% to 6.3%; non-GAAP operating margin guidance is 18.2% to 18.3%.
• Full Year 2026 GAAP net income per diluted share guidance is $1.31 to $1.34; non-GAAP net income per diluted share guidance is $2.80 to $2.83.
• Full Year 2026 free cash flow margin is expected to be approximately 21%.
• Non-GAAP guidance incorporates a fixed long-term projected tax rate of 22%.

Business Segments and Product Lines:

• Workiva serves as an audit-ready platform for trust, transparency, and accountability, utilized by accounting, finance, sustainability, risk, and audit teams.
• The company reported 6,840 customers as of September 30, 2026, a net increase of 299 customers from September 30, 2025.
• Gross retention rate was 97% and net retention rate was 110% as of September 30, 2026.
• Customers with an annual contract value (ACV) over $100,000 increased 20% to 2,853 from 2,372 in the prior year.
• Customers with an ACV over $300,000 increased 31% to 708 from 541 in the prior year.
• Customers with an ACV over $500,000 increased 20% to 283 from 236 in the prior year.

Market and Competitive Landscape:

• Management highlighted that AI is fundamentally changing enterprise software, shifting from helping people do work to doing work itself, which aligns with Workiva's strengths in accuracy, transparency, and trust.
• Over 85% of Fortune 1,000 companies rely on Workiva for mission-critical work.

Risks and Challenges:

• The press release includes standard forward-looking statement disclaimers regarding known and unknown risks, uncertainties, and factors that could cause actual results to differ materially from expectations, including AI impact, business strategy, and market opportunities.
• Specific risk factors are referenced as being detailed in Workiva's SEC filings (Form 10-K and 10-Q).

Management Commentary and Tone:

• CEO Julie Iskow stated results reflect continued momentum as organizations navigate growing complexity, noting Workiva is uniquely positioned to meet needs for accuracy and trust in a changing AI landscape.
• CFO Barbara Larson emphasized healthy top-line growth, margin expansion, and the alignment of growth and profitability, citing expanding operating leverage and financial agility to fund the technology roadmap toward 2030 targets.

Other Key Points:

• During Q3 2026, Workiva purchased approximately 32.6 thousand shares for approximately $2 million under its $350 million repurchase plan.
• Approximately $104 million remained available under the repurchase plan as of September 30, 2026.
• Non-GAAP net income methodology was updated beginning Q3 2026 to include a non-GAAP provision for income taxes using a fixed long-term projected rate of 22%, with retrospective application to prior periods for comparability.
• Non-GAAP diluted earnings per share calculations were updated to include interest expense on convertible senior notes in the numerator in accordance with the if-converted method.