WK earnings analysis
What we found in WK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Workiva delivered $255.290 million of Q2 revenue, up 18.6% year over year and 3.4% sequentially, while GAAP diluted EPS improved to $0.24 from a loss of $0.35 a year ago. Gross margin expanded 340 basis points year over year to 80.4%, and operating margin reached 4.6% versus negative 10.2%, though it declined from 6.2% in Q1 2026. Operating cash flow increased to $78.308 million and free cash flow was $77.976 million, offset in part by $122.7 million of quarterly share repurchases and regulatory uncertainty affecting sustainability-solution demand.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth remained near 19%
- Q2 revenue was $255.290 million, up 18.6% from $215.187 million a year earlier and 3.4% from $247 million in Q1 2026. Subscription-and-support revenue grew 19.2% to $236.302 million, accounting for 92.6% of revenue.
- Gross-margin expansion held
- Gross margin expanded to 80.4% from 77.0% a year earlier as total cost of revenue increased only 1.0% to $50.023 million. Gross margin was unchanged from 80.4% in Q1 2026.
- Profitability turned positive
- GAAP net income was $13.442 million, or $0.24 diluted EPS, versus a $19.400 million net loss, or negative $0.35 diluted EPS, in Q2 2025. Operating margin improved to 4.6% from negative 10.2% year over year.
- Cash conversion strengthened
- Operating cash flow rose to $78.308 million from $50.311 million in Q2 2025; with only $0.332 million of fixed-asset purchases, free cash flow was $77.976 million. Capex was approximately 0.1% of revenue.
- Larger-customer mix improved
- Enterprise adoption advanced: customers with annual contract value above $100,000 increased to 2,690 from 2,241, while those above $500,000 rose to 276 from 208. Revenue from $500,000+ ACV customers reached 29.9% of subscription revenue, up from 26.6%.
- Liquidity supports buybacks
- Liquidity remained substantial at $815.2 million of cash, cash equivalents and marketable securities as of June 30, 2026. The company deployed $122.7 million in Q2 share repurchases, leaving $105.771 million available under the authorization.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Net retention decelerated
- Net retention declined to 110.5% at June 30, 2026 from 113.7% a year earlier, despite gross retention remaining high at 97.3%. Customers deregistered because of mergers, acquisitions or financial distress represented over half of latest-quarter revenue attrition.
- Sustainability demand faces regulatory uncertainty
- Management says sustainability-solution sales have been, and may continue to be, materially affected by policy uncertainty. The EU Omnibus Directive entered into force on March 18, 2026, and variability in member-state implementation is influencing customer adoption timing.
- Convertible debt maturity is approaching
- Debt totaled $71.2 million of 2026 Notes due August 15, 2026 and $697.4 million of 2028 Notes due August 15, 2028. Although liquidity was $815.2 million, the near-term maturity requires refinancing or cash deployment decisions.
- No formal risk-factor updates
- No material risk-factor changes were reported during fiscal year 2026 relative to the 2025 Form 10-K. The filing explicitly states there have been no material changes, limiting evidence of newly disclosed risk mitigation or escalation.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.24
- Gross margin
- 80.4%
- Operating margin
- 4.6%
- Segment
- Subscription and support revenue: $236.302 million, up 19.2% year over year
- Segment
- Professional services revenue: $18.988 million, up 11.9% year over year
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance; management states it expects subscription-and-support revenue growth to outpace professional-services growth annually and plans continued investment in platform development, go-to-market capacity, EMEA and APAC.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- Workiva reported strong Q1 2026 results with revenue of $247.3 million and diluted EPS of $0.63, surpassing estimates. The company saw significant growth in subscription revenues and an impressive turnaround in net…
- 10-K · February 19, 2026
- Workiva positions itself as a unified, AI-powered SaaS platform for financial reporting, sustainability management, and GRC, and highlights product investments (GenAI, connectors, marketplace) and go-to-market expansion…
- 10-Q · November 5, 2025
- Workiva reported Q3 revenue of $224,166,000 (up $38,545,000 vs. Q3 2024) with gross margin expanding to 79.3% and GAAP net income of $2,786,000 (diluted EPS $0.05). Operating loss narrowed to $(3,405,000) from…
- 10-Q · July 31, 2025
- Workiva reported Q2 revenue of $215,187,000, up $37,684,000 (21.2%) versus Q2 2024 and up $9,187,000 (4.5%) versus Q1 2025. Gross margin improved to 77.0% and operating loss narrowed to -$22,146,000 (-10.3% of revenue),…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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