Cloud reporting platform Workiva (NYSE: WK) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 19.5% year on year to $238.9 million. Guidance for next quarter’s revenue was optimistic at $245 million at the midpoint, 2.1% above analysts’ estimates.
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Workiva (WK) Q4 CY2025 Highlights:
- Revenue: $238.9 million vs analyst estimates of $235.1 million (19.5% year-on-year growth, 1.6% beat)
- Revenue Guidance for Q1 CY2026 is $245 million at the midpoint, above analyst estimates of $240 million
- Operating Margin: 3.3%, up from -6.7% in the same quarter last year
- Free Cash Flow Margin: 21.2%, similar to the previous quarter
- Customers: 6,624, up from 6,541 in the previous quarter
- Net Revenue Retention Rate: 113%, down from 114% in the previous quarter
- Billings: $294.8 million at quarter end, up 20.1% year on year
- Market Capitalization: $3.26 billion
Company Overview
Nicknamed "the Excel killer" by some finance professionals for its ability to eliminate spreadsheet chaos, Workiva (NYSE: WK) provides a cloud-based platform that enables organizations to streamline financial reporting, ESG, and compliance processes with connected data and automation.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Workiva grew its sales at a decent 20.3% compounded annual growth rate. Its growth was slightly above the average software company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Workiva’s annualized revenue growth of 18.5% over the last two years is below its five-year trend, but we still think the results were good. 
This quarter, Workiva reported year-on-year revenue growth of 19.5%, and its $238.9 million of revenue exceeded Wall Street’s estimates by 1.6%. Company management is currently guiding for a 18.8% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 15.2% over the next 12 months, a deceleration versus the last two years. Still, this projection is above the sector average and suggests the market is baking in some success for its newer products and services.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
Workiva’s billings punched in at $294.8 million in Q4, and over the last four quarters, its growth was impressive as it averaged 21.5% year-on-year increases. This performance aligned with its total sales growth, indicating robust customer demand. The high level of cash collected from customers also enhances liquidity and provides a solid foundation for future investments and growth. 
Customer Retention
One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company’s products and services over time.
Workiva’s net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 113% in Q4. This means Workiva would’ve grown its revenue by 12.7% even if it didn’t win any new customers over the last 12 months.
Workiva has a good net retention rate, proving that customers are satisfied with its software and getting more value from it over time, which is always great to see.
Key Takeaways from Workiva’s Q4 Results
We were impressed by how significantly Workiva blew past analysts’ billings expectations this quarter. We were also glad its revenue guidance for next quarter exceeded Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 7.5% to $63.75 immediately after reporting.
Workiva may have had a good quarter, but does that mean you should invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
