Workiva (WK) Q4 2025: Operating Margin Jumps 1170bps as Multi-Solution Expansion Accelerates
Workiva’s Q4 margin surge and 22% subscription growth signal a platform pivot from point solution to system of record for the office of the CFO. AI-driven differentiation, multi-solution adoption, and disciplined operating leverage position WK for its next billion-dollar phase. 2026 guidance and leadership changes reinforce a durable, long-term growth and profitability thesis, even as sustainability and capital markets remain variable.
Summary
- AI Platform Relevance: Workiva’s trusted data foundation is becoming more critical as AI adoption accelerates.
- Margin Expansion Momentum: Operating leverage and disciplined execution drove a step-change in profitability.
- Multi-Solution Penetration: Cross-sell and vertical focus are fueling broader platform adoption and larger deals.
Performance Analysis
Workiva delivered robust Q4 results, with total revenue and subscription revenue both growing at a 20%+ pace year over year, outpacing guidance and underpinned by broad-based demand across its AI-powered platform. The company’s non-GAAP operating margin surged to 19.1% in Q4, a 1170 basis point improvement from the prior year, highlighting both scale advantages and a focus on operational rigor. Full-year non-GAAP operating margin landed just below 10%, beating targets by a wide margin and reflecting a 560 basis point improvement versus 2024.
Customer metrics underpin the story of durable expansion: Gross retention rose to 97%, net retention improved to 113%, and the share of subscription revenue from multi-solution customers climbed to 74%, up from 70% a year ago. The company added 319 net new customers in the quarter, with large contract cohorts (>$300K and >$500K) growing 42% and 37% year over year, respectively. International revenue now represents 27% of the total, up 300 basis points, signaling both geographic and solution breadth. Free cash flow margin reached 15.6% for the year, with continued capital return via buybacks.
- Multi-Solution Acceleration: 74% of subscription revenue now comes from customers using multiple solutions, driving higher expansion rates and stickiness.
- Large Deal Growth: Contracts over $300K and $500K grew 42% and 37% YoY, reflecting Workiva’s success moving upmarket and deepening relationships.
- International Expansion: Revenue outside the U.S. grew to 27% of total, as regulatory-driven demand and vertical wins broaden the addressable market.
Workiva’s results reflect a business moving beyond point solutions to platform status, with AI integration, vertical expansion, and disciplined execution driving both growth and profitability.
Executive Commentary
"We're not just a series of workflows that can be automated or AI'd away. We're a trusted platform where data is controlled, connected, auditable, and governed by design. Every number, every narrative, and every change is traceable with full lineage and accountability. And more importantly, AI doesn't replace this foundation. It depends on it."
Julie Isco, Chief Executive Officer
"For the full year 2025, we delivered a free cash flow margin of 15.6%, which beat our guide by 360 basis points and represents a 390 basis point improvement year over year. This outperformance was driven by favorable working capital timing related to customer payments and tax impacts, and improved operational efficiencies across the organization."
Barbara Larson, Chief Financial Officer
Strategic Positioning
1. Platform of Trust in an AI-Driven CFO Office
Workiva’s core differentiation is its role as a “system of truth” for CFOs and compliance leaders, where data trust, auditability, and traceability are non-negotiable. As AI adoption accelerates, the platform’s embedded AI capabilities are architected for defensibility and control, not just automation. This is resonating in large, complex deal wins and is a direct answer to the SaaS commoditization narrative.
2. Multi-Solution Expansion and Verticalization
Account expansion is a key growth lever, with 74% of subscription revenue from multi-solution customers and 55% of the base still on single solutions. Financial services is Workiva’s strongest vertical, delivering mid-six and seven-figure deals, but the company is also making inroads with industrial, real estate, and pharma clients. The vertical go-to-market strategy, supported by partners, is driving both new logo and expansion momentum.
3. AI Monetization and Premium Tier Strategy
AI adoption is now at 30% of the customer base, with usage-based pricing and a “good, better, best” model enabling Workiva to monetize advanced features. Premium tiers include differentiated AI capabilities across sustainability, financial reporting, and GRC (governance, risk, compliance) solutions, driving both ARPU expansion and customer stickiness.
4. Operational Discipline and Leadership Refresh
Workiva’s operating leverage is the result of both top-line outperformance and a deliberate shift of lower-margin services to partners, while focusing internal resources on higher-margin XBRL and platform innovation. New executive hires in revenue, product, and finance functions, as well as board additions with experience at Cisco, Autodesk, and Workday, signal a readiness for Workiva’s next phase of scale and maturity.
5. Durable Regulatory and Sustainability Tailwinds
Regulatory-driven demand for sustainability, ESG, and global reporting is a long-term tailwind, even as 2025 saw moderation from 2024 highs. Customers are moving from voluntary to mandatory compliance, and Workiva’s platform is positioned to benefit as regulatory clarity increases and global mandates (CSRD, California Climate Disclosure) come into force.
Key Considerations
Workiva’s Q4 and full-year results highlight a company executing on multiple strategic fronts, with platform breadth, disciplined financial management, and AI differentiation at the core of its thesis.
Key Considerations:
- AI as a Competitive Moat: Embedded, auditable AI capabilities are driving both platform adoption and premium tier monetization, supporting defensibility against workflow commoditization.
- Expansion Opportunity in Installed Base: With only 45% of customers using two or more solutions, significant whitespace remains for cross-sell and deeper penetration.
- Partner-Led Services Shift: Transitioning low-margin services to partners is improving margin structure and allowing Workiva to focus on high-value innovation and customer outcomes.
- International and Vertical Growth: Regulatory changes and vertical-specific solutions are expanding TAM (total addressable market), with international now at 27% of revenue.
- Leadership and Board Upgrades: New C-suite and board members bring experience in scaling public SaaS businesses, strengthening operational maturity and governance.
Risks
Macro and regulatory volatility remain material: Capital markets activity, especially IPO pipelines, is subject to external shocks. Sustainability reporting demand moderated in 2025, and while regulatory clarity is improving, timing of large mandates could affect growth pacing. Execution risk exists in scaling premium AI tiers and maintaining high retention as the business matures. Currency fluctuations also impact reported results and RPO visibility.
Forward Outlook
For Q1 2026, Workiva guided to:
- Total revenue of $244 million to $246 million
- Non-GAAP operating margin of 15.5% to 16%
For full-year 2026, management maintained guidance:
- Total revenue of $1.036 billion to $1.04 billion
- Subscription revenue growth of 19%
- Non-GAAP operating margin of 15% to 15.5%
- Free cash flow margin of approximately 19%
Management emphasized continued progress toward 2027 and 2030 margin targets, durable growth, and free cash flow expansion. Capital return will continue via an expanded $250 million buyback authorization. Key watchpoints include premium tier adoption, partner productivity, and regulatory-driven demand in both sustainability and capital markets.
Takeaways
Workiva’s Q4 results validate its evolution from point solution to indispensable platform, with AI and multi-solution adoption driving both growth and margin expansion.
- Margin Inflection: 1170bps Q4 operating margin expansion signals scalable cost discipline and a pivot to profitable growth at scale.
- AI and Platform Adoption: 30% customer AI enablement, rising multi-solution penetration, and premium tier momentum are key levers for durable revenue expansion.
- 2026 Focus: Investors should track continued cross-sell, international growth, AI monetization, and the impact of regulatory cycles on sustainability and capital markets demand.
Conclusion
Workiva exits 2025 as a more disciplined, platform-centric SaaS leader, with strong margin expansion, growing international and vertical reach, and AI-driven differentiation. Execution on multi-solution expansion and premium tier monetization will be pivotal as the company targets its next billion-dollar phase.
Industry Read-Through
Workiva’s results underscore a broader SaaS shift: Platforms with embedded trust, auditable AI, and regulatory relevance are gaining ground as point solutions face commoditization. AI is not a bolt-on but a core differentiator for data-sensitive verticals, and usage-based, premium-tier pricing is emerging as a monetization best practice. Regulatory-driven demand in sustainability and financial reporting remains a secular tailwind, but timing and execution will separate winners from laggards. Partner ecosystems and operational discipline are critical for SaaS scale and profitability in the next phase of industry maturation.