Workiva (WK) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew to $247.3 million, up 20% year-over-year, with subscription revenue rising 21% to $225.4 million, driven by strong demand, large contract growth, and multi-solution adoption.

• Net income reached $19 million, reversing a prior-year loss, and non-GAAP net income was $49 million; diluted EPS was $0.33, non-GAAP EPS $0.86 (basic) and $0.77 (diluted).

• Customer base expanded to 6,665, with gross retention at 97% and net retention at 112%, and significant growth in large contracts (ACV $100k+ up 24%, $300k+ up 38%, $500k+ up 39%).

• AI-driven innovation, global expansion, and platform adoption across finance, audit, risk, and sustainability teams accelerated, with 75% of subscription revenue from customers using multiple solutions.

• Share repurchases totaled $50 million in Q1, with $228 million remaining authorized; leadership team strengthened and a new auditor appointed.

Financial highlights

• Subscription and support revenue reached $225.4 million, up 21.5% year-over-year, representing 91.1% of total revenue; professional services revenue was $22 million, up slightly.

• Gross profit improved to $198.8 million; GAAP operating margin was 6.2% (up from -12.0%), non-GAAP operating margin 18.4% (up from 2.4%).

• Free cash flow for Q1 was $25.7 million, with a margin of 10.4%; cash, equivalents, and marketable securities totaled $863 million as of March 31, 2026.

• Current remaining performance obligations were $765 million, up 20% year-over-year; total RPO grew 22% to $1.43 billion.

Outlook and guidance

• Q2 2026 revenue expected between $250 million and $252 million; non-GAAP operating margin guidance is 14.5%–15.0%.

• Full-year 2026 revenue guidance is $1.037–$1.041 billion; non-GAAP operating margin 16.0%–16.5%; free cash flow margin projected at ~20%.

• Subscription revenue expected to grow 19% year-over-year; services revenue to remain flat.

• Medium-term (2027) revenue target: $1.1–$1.2 billion; long-term (2030) target: $1.8–$2.0 billion.