One-glance verdict
Undervalued
$194.29 our estimate vs market $49.32
Wall Street consensus: $78.73 (-59.5% lower than our fair-value estimate)
75% below our estimate, below the bear case
Fundamentals snapshot
Workiva Inc.
WK · NYQ · Technology · Software - Application
Current price
$49.32
52-week range
$43.34 - $97.09
Market cap
$2.77B
Balance sheet
Healthy
-3.32x Concerning
Net cash $69.91M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 4.6% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Insider ownership is only 3.9% (peer median: 8.9%).
What this company does
Workiva Inc.
Workiva provides a software platform that helps companies and governments automatically gather data from many different places to create a single, trustworthy report for regulators or investors. The company makes money by charging a subscription fee for its software, which generates recurring revenue (predictable income from customers who pay regularly, like a streaming service). This steady business model can make its financial performance more stable and easier to track over time.
How the company got here
Workiva was founded in 2008 under the name WebFilings by a team of entrepreneurs who saw that companies were struggling with a messy and error-prone process for creating financial reports. [1, 3] They wanted to replace the risky process of manually copying and pasting numbers between spreadsheets and documents for official filings with the U.S. Securities and Exchange Commission (SEC), the agency that oversees public companies. [1] The company launched its first cloud-based software in 2010, which was a new idea when many businesses were still hesitant about the cloud. [9] In 2014, it changed its name to Workiva to reflect its broader goal of helping with more than just filings and became a publicly traded company. [4, 10] Since then, it has expanded its platform to help companies with many types of complex reporting.
What it actually does
Workiva provides a single online platform where different teams within a company can work together on complex reports. [10] It acts like a central hub that connects to a company's various data sources, such as its financial, sales, and human resources systems. [2] The platform’s core feature is its ability to link data, so if a number is updated in one spot, it automatically changes everywhere else it appears in every report. [1] This helps companies create crucial documents like annual financial reports, sustainability disclosures (reports on environmental and social impact), and presentations for their board of directors with more accuracy and less risk. [5, 9] Essentially, it helps ensure that everyone is working from the same set of trusted numbers.
Subscription and Support
This is the company's primary way of making money, generating over 90% of its total revenue (the money it brings in from sales). [7, 12] Customers pay a recurring fee, similar to a software subscription, for ongoing access to the Workiva platform. [1] This subscription allows their employees to use the software to manage data and collaborate on a wide range of reporting tasks. [9] The fee also includes customer support to help users navigate the platform's features. This steady, predictable income from subscriptions is what makes this the core of Workiva's business.
Professional Services
This is a much smaller, but important, part of Workiva's business. [7, 17] It provides expert, hands-on help for customers who need more than just the software. [7] This includes services like helping a new customer get set up and trained on the platform. It also involves specialized consulting, such as helping companies format their financial data using XBRL (a specific data-tagging language required by regulators). [7] Think of this segment as the expert support team that ensures customers can successfully use the main subscription software.
What management is betting on now
The company is heavily focused on expanding its offerings in Environmental, Social, and Governance (ESG) reporting, as new regulations worldwide require companies to disclose more non-financial information. [13, 18] Management is also betting on Artificial Intelligence (AI) to make its platform smarter by automating difficult tasks and helping users find insights in their data, all while keeping a human in control of the final product. [9, 16] Another key priority is the "land-and-expand" strategy, which means encouraging existing customers who use the platform for one purpose, like financial filings, to adopt it for others, such as managing internal company risks or creating board reports. [14, 21] Finally, Workiva is pushing for more international growth, especially in Europe, where new reporting rules are creating a bigger market for its services. [1, 18]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$-122.00K
FY2024 Q3
$18.66M
FY2024 Q4
$43.16M
FY2025 Q1
$-8.12M
FY2025 Q2
$49.32M
FY2025 Q3
$46.06M
FY2025 Q4
$50.74M
FY2026 Q1
$25.75M
Revenue
$247.31M
Net income
$19.00M
Diluted EPS
0.33
Operating cash flow
$26.48M
Free cash flow
$25.75M
Fetching…
Sources
Revenue
$238.94M
Net income
$11.82M
Diluted EPS
0.21
Operating cash flow
$50.96M
Free cash flow
$50.74M
Fetching…
Sources
Revenue
$224.17M
Net income
$2.79M
Diluted EPS
0.05
Operating cash flow
$46.16M
Free cash flow
$46.06M
Fetching…
Sources
Revenue
$215.19M
Net income
$-19.40M
Diluted EPS
-0.35
Operating cash flow
$50.31M
Free cash flow
$49.32M
Fetching…
Sources
Revenue
$206.28M
Net income
$-21.37M
Diluted EPS
-0.38
Operating cash flow
$-7.36M
Free cash flow
$-8.12M
Fetching…
Sources
Revenue
$199.89M
Net income
$-8.81M
Diluted EPS
-0.15
Operating cash flow
$43.97M
Free cash flow
$43.16M
Fetching…
Sources
Revenue
$185.62M
Net income
$-16.99M
Diluted EPS
-0.31
Operating cash flow
$18.91M
Free cash flow
$18.66M
Fetching…
Sources
Revenue
$177.50M
Net income
$-17.55M
Diluted EPS
-0.32
Operating cash flow
$-14.00K
Free cash flow
$-122.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $194.29 vs current price $49.32
Wall Street consensus is the average analyst price target: $78.73 (-59.5% lower than our fair-value estimate).
Our most-likely fair value is $194.29 a share — about 293.9% above today's price of $49.32, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $69.9M - more cash than debt. Interest coverage -3.3x.
Net debt
$-69.91M
Interest coverage
-3.32x
Workiva Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
WK
BASELINE
Workiva Inc.
Total debt $793.47M Interest coverage -3.32x This is the baseline the peer rows are being compared against.
Total debt $687.32M Interest coverage 3.96x This peer still has a real interest-payment cushion, while WK does not.
Total debt $235.70M Interest coverage 10.82x This peer still has a real interest-payment cushion, while WK does not.
Total debt $350.14M Interest coverage -3.52x Neither company has much profit cushion over interest right now.
Total debt $20.61M Interest coverage -175.37x Neither company has much profit cushion over interest right now.
Total debt $183.33M Interest coverage 117.27x This peer still has a real interest-payment cushion, while WK does not.
What you should know
The case for and against WK
2 Rewards
1 Risk
Rewards
-
Revenue grew 4.6% last year.
-
Free cash flow was positive in 9/10 years.
Risks
-
Insider ownership is only 3.9% (peer median: 8.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
205.50x
Forward P/E
14.08x
P/B
-508.45x
P/S
2.99x
EV/EBITDA
326.00x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
79.4%
Operating margin
6.2%
Net margin
1.5%
ROE
—
ROA
-0.1%
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
1.61x
Quick ratio
1.47x
Total debt
$793.47M
Total cash
$863.38M
Growth
How the business has been compounding
Revenue TTM
$925.59M
Revenue 5Y CAGR
18.9%
EPS TTM
0.24
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$173.90M
Free CF TTM
$138.00M
FCF margin
14.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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