Workiva (NYSE:WK) reported third-quarter 2026 revenue of $263 million, up 17% from a year earlier, as subscription growth and stronger operating margins helped the company exceed its guidance.
The reporting and compliance software provider projected fourth-quarter revenue of $275 million to $278 million and raised its full-year non-GAAP operating margin outlook. Executives said demand remained steady, though earlier growth benefits from sustainability bookings and foreign exchange have faded.
Margins expand as large contracts grow
Workiva’s non-GAAP operating margin reached 18.3%, an improvement of 5.6 percentage points from a year earlier and 85 basis points above the high end of its guidance. Larson attributed the expansion to revenue outperformance and operational discipline, including productivity gains.
GAAP net income rose to $19 million, or $0.35 per diluted share, from $3 million, or $0.05 per share, a year earlier. Non-GAAP net income was $41 million, or $0.72 per diluted share.
Beginning in the third quarter, Workiva applied a 22% effective tax rate to its non-GAAP results to reflect sustained profitability. Larson said the change affects non-GAAP presentation but does not affect cash taxes, cash flow or GAAP results. Prior guidance had not assumed the new rate.
Current remaining performance obligations, representing subscription revenue expected over the next 12 months, rose 17% to $818 million. That growth included an approximately one-percentage-point foreign exchange headwind, Larson said.
Workiva ended the quarter with 6,840 customers, up 299 from a year earlier. Its gross retention rate was 97%, while net retention was 110%. Customers using multiple solutions accounted for 77% of subscription revenue, compared with 73% a year earlier.
Contracts valued at more than $300,000 annually rose 31% to 708, while those above $500,000 increased 20% to 283. New customers added over the preceding 12 months contributed 48% of the quarter’s net new subscription revenue.
AI offerings target regulatory work
Chief Executive Officer Julie Iskow highlighted new artificial intelligence products introduced at Workiva’s Amplify conference, including Agent Studio, which allows customers and partners to build and deploy AI agents without writing code. The company also launched an agentic solution for automated testing and three agentic regulatory solutions.
Iskow said a global American healthcare corporation purchased all three new regulatory solutions in a multi-six-figure expansion deal. The customer faces reporting requirements across more than 200 entities and plans to move manual processes onto Workiva’s platform, she said.
Workiva prices advanced solution-specific AI features through premium product tiers and uses value-based pricing for new agentic offerings, Iskow said. Agent Studio and the company’s MCP gateway are being offered as part of a new builder package priced according to factors including customer size, complexity and usage.
Asked about competition from AI startups, Iskow said Workiva was not seeing signs of disruption. She argued that the platform’s governance, traceability and auditability are important for customers applying AI to high-stakes reporting.
Outlook reflects fading tailwinds
For the full year, Workiva forecast revenue of $1.041 billion to $1.044 billion and continued to expect subscription revenue growth of approximately 19%. It raised its non-GAAP operating margin outlook by 25 basis points at the midpoint, to a range of 18.2% to 18.3%, and maintained its expectation for a free cash flow margin of approximately 21%.
For the fourth quarter, the company projected a non-GAAP operating margin of 19% to 19.5%. Larson said the guidance assumes a slight year-over-year foreign exchange headwind to revenue growth.
Addressing an analyst’s question about the revenue outlook, Larson said strong sustainability bookings at the end of 2024 had supported revenue growth through 2025, but demand had moderated over the past year or more. She said the fading benefit was already reflected in the company’s 2026 outlook. Foreign exchange tailwinds that ran from the second quarter of 2025 through the first quarter of 2026 also have subsided, she added.
Larson described calculated billings as a volatile measure affected by invoicing and renewal timing. She said the third-quarter comparison was affected by a large eight-figure upfront payment on a multiyear contract in the prior-year period and by foreign exchange. Adjusting for both factors, underlying calculated billings growth was closer to 15%, she said.
Workiva ended September with $817 million in cash equivalents and marketable securities. It used $71 million in cash to settle convertible notes due in August and spent $2 million repurchasing shares during the quarter. The company plans to provide its formal 2027 outlook on its next earnings call in February.
About Workiva (NYSE:WK)
Workiva Inc (NYSE: WK) provides cloud-based software designed to help organizations manage reporting, compliance, risk and other complex business processes. Its platform connects financial, operational and environmental, social and governance (ESG) data so teams can collaborate on information used for internal and external reporting.
The company’s products support financial reporting, regulatory filings, audit and compliance workflows, investor communications, and sustainability reporting.
