Workiva (WK) Stock Forecast & Price Target

Workiva Inc. has demonstrated robust growth, with subscription and support revenue increasing by 22.5% year-over-year to $209.6 million, surpassing prior estimates. The rise in multi-solution adoption is notable, with customers using multiple solutions accounting for 71% of subscription revenue in F2Q25, up from 56% in F2Q22, which underscores the platform's expanding customer engagement and utility. Additionally, the company has raised its FY25 total revenue outlook to a range of $880 to $882 million, reflecting strong performance in larger subscription contracts and a growing pipeline, particularly in areas like sustainability and governance.

Workiva Inc. faces several challenges that contribute to a negative outlook on its stock. The company's expectation of declining professional services revenue, combined with the potential for vendor consolidation and ineffective sales and marketing expenditures, raises concerns about future growth prospects. Additionally, risks associated with reduced ESG regulation impacts, slower legacy ERP replacement cycles, and possible difficulties in partner-led sales efforts further complicate Workiva's financial landscape, potentially hindering revenue growth from its significant SEC reporting segment.