Key Highlights

• Shares traded at $75.87 pre-market, down 11.18% from the $85.42 prior close.

• Third-quarter Revenue was $263 million, up 17% year over year.

• Full-year adjusted EPS guidance was cut to $2.80 to $2.83.

• Fourth-quarter revenue guidance is $275 million to $278 million.

Workiva (NYSE:WK) shares were lower in pre-market trading on Friday, November 6, at $75.87, down 11.18%, after third-quarter results that beat revenue estimates were followed by full-year adjusted EPS guidance of $2.80 to $2.83, down from $3.38 to $3.39. Revenue rose 17% to $263 million, against an estimate of $261.4 million, and non-GAAP EPS was $0.72, against an estimate of $0.79.

The Ames, Iowa-based company provides a cloud-based, AI-powered SaaS platform for connected financial reporting, sustainability management, and governance, risk and compliance. It generated about $884.6 million of revenue in 2025, with about 92% from recurring subscription and support fees, and has about 2,900 employees.

Tax Rate Change and Fourth-Quarter Guide Reset the EPS Outlook

Part of the cut in full-year adjusted EPS guidance is tied to a new 22% tax rate applied to non-GAAP results. Fourth-quarter guidance is revenue of $275 million to $278 million, with services revenue up slightly and non-GAAP Operating Margin of 19% to 19.5%, and fourth-quarter EPS guidance of $0.78 to $0.80 is below expectations.

Management attributed the slower fourth-quarter guide to fading tailwinds from sustainability bookings and FX, and said underlying Demand is steady. Calculated billings growth was just over 10%, or about 15% adjusted for a large prior-year upfront payment and FX.

Revenue, Margin and Customer Metrics for the Quarter

Subscription revenue was $246 million, up 17%, and cRPO was $818 million, up 17%, or 18% in constant currency. Non-GAAP operating margin was 18.3%, 85 basis points above the high end of guidance and up 560 basis points year over year. GAAP EPS was $0.35.

Net retention was 110%, gross retention was 97%, and multi-solution customers made up 77% of subscription revenue. Contracts over $300,000 grew 31% and over $500,000 grew 20%. New logos drove 48% of net new subscription revenue, and customers totaled 6,840.

Full-Year Revenue Range and New AI Offerings

Full-year 2026 revenue guidance is $1.041 billion to $1.044 billion, with subscription revenue growth of about 19%. Non-GAAP operating margin guidance was raised by 25 basis points at the midpoint to 18.2% to 18.3%, and free Cash Flow is still expected at about 21%.

New AI offerings, including Agent Studio, MCP Gateway and agentic regulatory and GRC testing, are priced on value, with a good-better-best framework that has delivered over 20% uplift in SEC reporting. Management said it sees no AI-driven disruption from competitors or startups. The company reported a $71 million convertible note settlement and $104 million remaining on its buyback.

February 2027 Outlook and 2030 Targets Are the Next Reference Points

A formal 2027 outlook comes in February, and management reiterated confidence in its 2030 targets. The reaction follows Thursday's selloff, when the Nasdaq-100 fell about 6%. Software peers diverged after earnings, with Appian (NASDAQ:APPN) and Cloudflare (NYSE:NET) rising. Workiva's market cap is $4.65 billion.