Business

Workiva (WK) Q3 2025 Earnings Call Transcript

Workiva (WK) Q3 2025 Earnings Call Transcript

Need a quote from a Motley Fool analyst? Email [email protected]

Total Revenue -- Total revenue was $224 million for Q3 2025, up 21% year-over-year, exceeding the high end of guidance by $4 million.

Subscription Revenue -- Subscription revenue was $210 million for Q3 2025, up 23% from Q3 2024, with new customers from the past twelve months contributing 40% of the increase.

Customers -- 6,541 at quarter-end, a net increase of 304 from Q3 2024.

Customer Retention -- Gross retention rate was 97%, above the 96% target; Net retention rate reached 114%, up from 111% in Q3 2024, with a 1% positive impact from foreign currency.

Large Contracts -- Contracts with annual value over $100,000 increased 23% to 2,372 as of the end of Q2 2025; Contracts over $300,000 rose 41% to 541, up from Q3 2024; Contracts over $500,000 grew 42% to 236, up from Q3 2024.

Non-GAAP Operating Margin -- Non-GAAP operating margin was 12.7% for Q3 2025, beating the high end of guidance by 470 basis points and an improvement of 860 basis points compared to Q3 2024.

Professional Services Revenue -- Professional services revenue was $15 million for Q3 2025, flat year-over-year versus Q3 2024, with lower setup and consulting services offset by higher XBRL services.

Cash, Equivalents, and Marketable Securities -- $857 million as of September 30, 2025, up $43 million from the prior quarter-end.

Share Repurchase -- 126,000 shares were repurchased for $10 million in Q3 2025, leaving $40 million remaining under the $100 million authorization as of September 30, 2025.