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Jun 30
Workiva Q2 2025 Earnings Report
Workiva reported solid financial performance in Q2 2025, exceeding revenue and operating margin guidance, driven by strong subscription revenue growth and increased large customer contracts.
Key Takeaways
Workiva Inc. announced strong second-quarter 2025 financial results, with total revenue reaching $215 million, a 21% year-over-year increase. Subscription and support revenue grew by 23%, and the company saw significant growth in customers with annual contract values over $500,000. Despite a GAAP net loss, non-GAAP net income improved, and the company ended the quarter with a healthy cash position.
Total revenue for Q2 2025 was $215 million, marking a 21% year-over-year increase.
Subscription and support revenue grew by 23% year-over-year, reaching $198 million.
Non-GAAP operating margin improved to 3.8% in Q2 2025, up from 2.0% in the prior year.
Customers with an annual contract value over $500,000 increased by 35% year-over-year to 208.
Workiva
Workiva
Workiva Revenue by Segment
Revenue by Segment
Subscription and Support Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Workiva provided optimistic guidance for Q3 and the full year 2025, expecting continued revenue growth and improved non-GAAP operating margins, alongside positive non-GAAP net income per diluted share.
Positive Outlook
- Q3 2025 total revenue expected between $218 million and $220 million.
- Full year 2025 total revenue expected between $870 million and $873 million.
- Q3 2025 non-GAAP operating margin expected between 7.0% and 8.0%.
- Full year 2025 non-GAAP operating margin expected between 7.0% and 7.5%.
- Full year 2025 free cash flow margin expected to be approximately 10.5%.
Challenges Ahead
- Q3 2025 GAAP operating margin expected to remain negative, between (7.4)% and (6.4)%.
- Full year 2025 GAAP operating margin expected to remain negative, between (7.1)% and (6.6)%.
- Q3 2025 GAAP net loss per basic share expected between $(0.18) and $(0.14).
- Full year 2025 GAAP net loss per basic share expected between $(0.79) and $(0.72).
- Chief Financial Officer Jill Klindt is stepping down, which could introduce leadership transition challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income