One-glance verdict
Undervalued
$127.96 our estimate vs market $86.51
Wall Street consensus: $89.80 (-29.8% lower than our fair-value estimate)
32% below our estimate, below the bear case
Fundamentals snapshot
Workiva Inc.
WK · NYQ · Technology · Software - Application
Current price
$86.51
52-week range
$43.34 - $97.09
Market cap
$4.71B
Balance sheet
Healthy
-3.32x Concerning
Net cash $22.56M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
0 Risks
2 rewards · 0 risks
View details ↓What this company does
Workiva Inc.
Workiva sells cloud software that helps companies organize and report their financial and business information, making it easier to share with auditors and stakeholders. Their money mainly comes from customers paying subscription fees for this software, which provides a steady stream of income. This is important because it means the company has predictable earnings, allowing them to invest in improving their product and growing the business.
How the company got here
Workiva was founded in 2008 as WebFilings by a team of entrepreneurs who saw a need for better ways to manage and report business data. [1, 3] At a time when many companies were hesitant to use cloud-based solutions, Workiva launched its first cloud offering in 2010, focusing on collaboration and accountability. [3] The company officially changed its name to Workiva in 2014 to reflect its expanding services beyond just financial reporting. [1, 3] Workiva went public on the New York Stock Exchange in December 2014. [1] Since then, it has grown to serve thousands of organizations globally, including a significant portion of the Fortune 1,000 companies. [3, 6] The company has also made strategic acquisitions to enhance its platform, such as OneCloud for integration services and AuditNet for audit content. [1]
What it actually does
Workiva provides a cloud-based platform designed to help companies manage, link, and report their business data in a connected and automated way. [1, 6] Think of it as a central hub where different pieces of a company's financial and non-financial information can come together. [1, 12] This platform helps teams collaborate more effectively, ensuring that data is accurate, consistent, and ready for audits or regulatory filings. [1, 12] It connects information from various sources, like accounting software or spreadsheets, into a single, organized report. [1, 12]
Financial Reporting
This is Workiva's core business, helping companies prepare and file financial reports. [1, 9] This includes everything from regular financial statements and management reports to more complex filings required by regulatory bodies like the Securities and Exchange Commission (SEC) in the U.S. [1, 9, 14] Companies pay Workiva to use its platform to gather financial data, ensure its accuracy, and then generate reports that meet strict compliance standards. [1, 9, 12] This segment is a significant part of Workiva's business, as accurate and timely financial reporting is crucial for public companies. [4]
Governance, Risk, and Compliance (GRC)
This part of Workiva's business focuses on helping companies manage their internal controls, risks, and overall compliance with regulations. [1, 9, 13] For example, companies use Workiva's tools to document and test their internal financial controls, a requirement for many public companies known as SOX compliance. [1, 4, 14] They also use it for broader risk management and to ensure they are following all necessary rules and procedures. [1, 9] Businesses pay for these services to reduce their risk of errors, fraud, or regulatory penalties. [4, 10]
Sustainability Management
This is a growing area for Workiva, where they help companies report on their environmental, social, and governance (ESG) performance. [4, 9, 13] As more investors and regulators focus on sustainability, companies need to track and report on things like carbon emissions, social impact, and corporate governance. [4, 10, 11] Workiva's platform helps these companies collect, manage, and report this non-financial data in a structured and auditable way, similar to how they report financial information. [4, 11, 13] This segment is becoming increasingly important as companies face more pressure to be transparent about their sustainability efforts. [4, 10]
What management is betting on now
Workiva's management is focused on expanding its platform's capabilities, particularly in areas like artificial intelligence (AI) and automation, to make reporting even more efficient and insightful. [2, 4, 10] They are also prioritizing international market expansion, aiming to bring their solutions to more companies around the globe. [2, 4] A key strategic goal is to become the go-to platform for all types of high-stakes reporting – financial, sustainability, and compliance – by offering a unified and connected experience. [4, 10, 13] This strategy aims to increase revenue and market share by embedding Workiva deeper into the critical reporting workflows of large organizations. [2, 4]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
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
FY2026 Q2
$77.98M
Revenue
$255.29M
Net income
$13.44M
Diluted EPS
0.24
Operating cash flow
$78.31M
Free cash flow
$77.98M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $127.96 vs current price $86.51
Wall Street consensus is the average analyst price target: $89.80 (-29.8% lower than our fair-value estimate).
Our most-likely fair value is $127.96 a share — about 47.9% above today's price of $86.51, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $22.6M - more cash than debt. Interest coverage -3.3x.
Net debt
$-22.56M
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 $792.68M Interest coverage -3.32x This is the baseline the peer rows are being compared against.
Total debt $690.74M Interest coverage 3.96x This peer still has a real interest-payment cushion, while WK does not.
Total debt $1.90B Interest coverage 0.90x This peer still has a real interest-payment cushion, while WK does not.
Total debt $338.63M Interest coverage 0.21x This peer still has a real interest-payment cushion, while WK does not.
Total debt $1.46B Interest coverage 71.61x 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
0 Risks
Rewards
-
Revenue grew 9.2% last year.
-
Free cash flow was positive in 9/10 years.
Risks
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)
102.99x
Forward P/E
21.36x
P/B
-48.19x
P/S
4.87x
EV/EBITDA
111.45x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
80.2%
Operating margin
4.6%
Net margin
4.9%
ROE
—
ROA
1.4%
Health
Liquidity and balance-sheet strength
Debt / equity
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Current ratio
1.47x
Quick ratio
1.35x
Total debt
$792.68M
Total cash
$815.24M
Growth
How the business has been compounding
Revenue TTM
$965.70M
Revenue 5Y CAGR
18.9%
EPS TTM
0.84
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$201.90M
Free CF TTM
$138.00M
FCF margin
14.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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