Workiva (WK) Stock Forecast & Price Target

Workiva Inc. has demonstrated significant growth in multi-solution adoption, with revenue from customers using multiple solutions increasing from 56% of subscription revenue in F2Q22 to 71% in F2Q25. In addition, the company reported strong performance in larger subscription contracts, with contracts of $100,000+ increasing by 23% year-over-year, and those above $500,000 showing an impressive 42% year-over-year growth. Furthermore, Workiva raised its total revenue outlook for FY25 to $880 - $882 million, highlighting an expectation of improved operating margins and sustained momentum in operational leverage beyond FY26.

Workiva Inc. faces significant headwinds as professional services revenue is projected to decline year-over-year, largely due to a strategic shift towards transferring low-margin services to partners. The company's growth may be further hindered by macroeconomic conditions, including tariff impacts, increased competition from larger firms entering its market, and a lower brand recognition in Europe. Additionally, the anticipated effectiveness of increased sales and marketing expenditures may fall short, potentially leading to longer sales cycles and reduced revenue growth, particularly from SEC reporting, which accounts for approximately 40% of the company’s revenues.