Executive Summary

Q3 2025 delivered above-consensus revenue and EPS with improved operating leverage; total revenue was $224.166M (+21% YoY) and non-GAAP diluted EPS was $0.55; GAAP operating margin improved to (1.5)% and non-GAAP operating margin to 12.7% .
Against S&P Global consensus, revenue beat by ~$5.2M and non-GAAP EPS beat by ~$0.16; GAAP EBITDA came in below consensus given GAAP loss from operations and D&A effect, reflecting continued investment and stock-based compensation dynamics (see Estimates Context)*.
FY 2025 guidance was raised on both revenue ($880–$882M) and non-GAAP operating margin (9.2%–9.4%); Q4 2025 guidance implies strong margin continuation (non-GAAP 16.7%–17.5%) .
Strategic catalysts: platform-led multi-solution expansion, large-contract momentum, and leadership changes (CRO appointment) aimed at scaling profitable growth; management emphasized continued productivity and AI-driven innovation as engines for margin expansion .

What Went Well and What Went Wrong

What Went Well

Broad-based demand and platform expansion lifted subscription & support revenue 23% YoY to $209.560M; total revenue grew 21% YoY to $224.166M, beating guidance high end .
Material margin improvement: non-GAAP operating margin reached 12.7% (vs. 4.1% in Q3 2024), GAAP operating margin improved to (1.5)% from (11.8)% YoY; management raised FY margin targets citing operational rigor .
Large contracts accelerated: ACV >$500K customers +42% YoY; net retention 114% and gross retention 97%, underscoring expansion within the installed base .

Selected quotes:

“We outperformed on both the top and bottom line, and we are raising the FY 2025 guide for both revenue and operating margin.” — Julie Iskow, CEO .
“Our focus on profitable growth has enabled us to raise our 2025 non-GAAP operating margin target by 400 basis points at the midpoint since the start of the year.” — Jill Klindt, CFO .

What Went Wrong

GAAP EBITDA was negative (~$0.718M), reflecting GAAP loss from operations and D&A; this missed SPGI’s EBITDA consensus and highlights continuing GAAP investment load despite non-GAAP leverage*.
Professional services revenue was flat YoY at $14.606M (setup/consulting shifting to partners), limiting services growth and increasing dependency on subscription momentum .
Management reiterated macro uncertainty (tariffs, elections, government shutdown) causing elongated deal cycles, with sustainability demand moderation in certain segments persisting from prior quarters .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenue ($USD Millions)	$185.621	$215.187	$224.166
Subscription & Support Revenue ($USD Millions)	$171.035	$198.223	$209.560
Professional Services Revenue ($USD Millions)	$14.586	$16.964	$14.606
GAAP Gross Margin %	76.5%	77.0%	79.3%
Non-GAAP Gross Margin %	78.6%	79.1%	81.4%
GAAP Operating Margin %	(11.8)%	(10.2)%	(1.5)%
Non-GAAP Operating Margin %	4.1%	3.8%	12.7%
GAAP Net Income (Loss) ($USD Millions)	$(16.992)	$(19.400)	$2.786
Non-GAAP Net Income ($USD Millions)	$12.367	$10.979	$34.695
GAAP Diluted EPS ($)	$(0.31)	$(0.35)	$0.05
Non-GAAP Diluted EPS ($)	$0.21	$0.19	$0.55

Segment breakdown:

Segment	Q3 2024	Q2 2025	Q3 2025
Subscription & Support ($USD Millions)	$171.035	$198.223	$209.560
Professional Services ($USD Millions)	$14.586	$16.964	$14.606

KPIs:

KPI	Q1 2025	Q2 2025	Q3 2025
Customers (period-end)	6,385	6,467	6,541
Gross Retention Rate	97%	97%	97%
Net Retention Rate	110%	114%	114%
ACV >$100K (count)	2,079	2,241	2,372
ACV >$300K (count)	439	488	541
ACV >$500K (count)	191	208	236

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD Millions)	FY 2025	$870–$873	$880–$882	Raised
GAAP Operating Margin %	FY 2025	(7.1)%–(6.6)%	(5.7)%–(5.5)%	Raised (less negative)
Non-GAAP Operating Margin %	FY 2025	7.0%–7.5%	9.2%–9.4%	Raised
GAAP Net Loss per Basic Share ($)	FY 2025	$(0.79)–$(0.72)	$(0.62)–$(0.59)	Raised (less loss)
Non-GAAP Diluted EPS ($)	FY 2025	$1.31–$1.38	$1.65–$1.68	Raised
Free Cash Flow Margin %	FY 2025	~10.5%	~12.0%	Raised
Total Revenue ($USD Millions)	Q4 2025	n/a	$234–$236	New
GAAP Operating Margin %	Q4 2025	n/a	0.0%–0.8%	New
Non-GAAP Operating Margin %	Q4 2025	n/a	16.7%–17.5%	New
GAAP Diluted EPS ($)	Q4 2025	n/a	$0.05–$0.08	New
Non-GAAP Diluted EPS ($)	Q4 2025	n/a	$0.67–$0.70	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
AI/technology initiatives	Launched public fund reporting; EDGAR NEXT support	Announced Intelligent Finance, Sustainability, GRC; agentic AI extensions; “intelligence-ready” platform	Expanding AI feature set and positioning
Macro/tariffs/shutdown	Cautious buying; broad-based uncertainty	“Consistent uncertainty” (tariffs, elections, shutdown) elongating cycles	Persistent uncertainty; risk-adjusted guide
Capital markets (IPO)	Cap markets modeled as steady; upside optionality	Uptick in IPO activity (Figma, Klarna, Hartflow, Scholter Innovations); shutdown caveat	Improving vs low base; potential upside
GRC momentum	Multiple competitive wins; legacy replacement	Multi-solution GRC expansions (banks; policy/controls/ERM)	Strengthening in regulated verticals
Regional trends	APAC and Europe wins; global expansion	Revenue outside Americas >19%; Europe “strong”	International mix rising
Sustainability demand	Strategic but moderated in corporate segment	Continues; non-regulatory drivers (risk, stakeholders); selective large deals	Moderation persists; durable long-term view
R&D/productivity	Margin targets reiterated; operating leverage initiatives	Operating model redesign; automation, AI; sales productivity focus	Execution driving margin expansion

Management Commentary

“We believe that our disciplined execution and our operating rigor position us to deliver additional leverage over time.” — Julie Iskow, CEO .
“We had 6,541 customers… gross retention 97%, net retention 114%… large contracts over $500K up 42% YoY.” — Jill Klindt, CFO .
“We’re transitioning U.S. accrued PTO to flexible time-off in 2026; accrued PTO usage benefits op margin but not free cash flow margin.” — Jill Klindt, CFO .
“Michael Pinto… will oversee Global Sales, Partnerships & Alliances, and Commercial Operations… focus on scaling and accelerating profitable growth.” — Julie Iskow, CEO .

Q&A Highlights

Platform consolidation and “good/better/best” pricing: management sees continued consolidation around Workiva’s platform; early pricing framework adoption supports expansions .
Margin trajectory: second-half weighted margin strength expected in 2026; continued progress toward 2027 targets; PTO accounting dynamics clarified .
Capital markets: increased Q3 activity with high-profile IPOs; modeled as upside, not baked into guidance .
International and vertical strength: Europe healthy; financial services regulatory drivers (banks, funds) cited as durable demand engines .
Sustainability: moderated demand vs 2024 highs but remains strategic with non-regulatory drivers (science-based targets, risk, stakeholder expectations) .

Estimates Context

Metric	Q3 2025 Consensus	Q3 2025 Actual
Revenue ($USD)	$218,964,220*	$224,166,000
Primary EPS (Non-GAAP, $)	$0.38542*	$0.55
EBITDA ($USD)	$17,881,670*	$(718,000) (GAAP EBITDA)

Results vs consensus: revenue and non-GAAP EPS beat; GAAP EBITDA missed consensus, reflecting GAAP loss from operations with D&A resulting in negative EBITDA despite strong non-GAAP operating income*.
Implications: FY guidance raises for revenue and margins suggest upward estimate revisions for non-GAAP EPS and operating margin; services revenue expected down as low-margin work shifts to partners .

Values retrieved from S&P Global.*

Key Takeaways for Investors

Strong beat-and-raise quarter: revenue and EPS exceeded consensus; FY 2025 raised on both top line and margins — constructive setup into Q4 .
Margin inflection accelerating: non-GAAP operating margin 12.7% and Q4 guide 16.7%–17.5% signal operating leverage from productivity/AI and GTM redesign .
Expansion within base drives resilience: NRR 114%, large-contract cohorts up sharply, multi-solution adoption climbing; reduces reliance on new-logo velocity .
Capital markets nascent tailwind: Q3 IPO activity improved from a low base; modeled as upside rather than embedded — potential Q4 catalyst if shutdown impact fades .
Services mix shift: deliberate move of low-margin setup/consulting to partners keeps services revenue flat/down, but boosts margin profile and scalability .
International and regulated verticals: Europe and financial services (banks, funds, insurance) remain strong demand pillars under regulatory and operational drivers .
Leadership reinforces scale ambitions: new CRO with large-scale AI/data GTM pedigree targeting acceleration of profitable growth; CFO succession in process .

Cross-references: Financial data, guidance, and KPIs from Q3 2025 8-K and press release ; prior-quarter comparisons from Q2 and Q1 press releases and calls . Management commentary and Q&A from Q3 earnings call .

WORKIVA INC (WK)·Q3 2025 Earnings Summary