Workiva (WK) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong financial performance with total revenue of $255.3 million, up 19% year-over-year, and subscription revenue of $236 million, driven by broad-based demand and large contract growth.

• Non-GAAP operating margin reached 16.8%, a 1,300 basis point improvement over Q2 2025, and the company raised its full-year 2026 margin guidance to 18%, achieving its 2027 target a year early.

• Net income for Q2 2026 was $13.4 million, reversing a net loss from the prior year, with non-GAAP net income rising to $45 million.

• The company continues to innovate with AI-driven platform enhancements and is seeing strong adoption of premium solution tiers, especially in finance, audit, risk, and sustainability.

• Customer base grew to 6,750, with significant expansion in large account value customers and global verticals.

Financial highlights

• Subscription revenue reached $236 million, up 19% year-over-year; professional services revenue was $19 million, up 12%.

• Total revenue for Q2 2026 was $255.3 million, up 18.6% year-over-year, beating guidance by $3 million.

• Non-GAAP operating margin was 16.8%, exceeding guidance by 180 basis points; GAAP operating margin improved to 4.6%.

• Gross retention rate was 97%, and net retention rate was 111%.

• Cash, equivalents, and marketable securities totaled $815 million at quarter end, after $123 million in share repurchases.

Outlook and guidance

• Q3 2026 revenue expected between $260 million and $262 million; non-GAAP operating margin projected at 17%-17.5%.

• Full-year 2026 revenue guidance raised to $1.040-$1.044 billion, with subscription revenue growth of approximately 19%.

• Non-GAAP operating margin outlook increased to 18% for 2026; GAAP operating margin 5.7–5.8%.

• Free cash flow margin outlook raised to 21% for 2026.

• 2030 target operating model: $1.8–$2.0B revenue, 24% operating margin, 85% gross margin.