Abstract

Workiva will release its fourth-quarter 2025 results on February 19, 2026, Post Market; this preview summarizes current forecasts, last quarter’s financials, segment dynamics, and how revenue mix and margin signals may shape near-term performance.

Market Forecast

Consensus points to Workiva’s current quarter revenue at 234.80 million, a 20.23% year-over-year increase, with adjusted EPS estimated at 0.69, up 107.05% year-over-year; EBIT is forecast at 39.67 million, rising 177.37% year-over-year; management has not provided explicit gross margin or net margin guidance for the quarter. Subscriptions and Support remains central to the growth outlook, sustaining a high revenue share and driving mix toward recurring earnings efficiency. The most promising segment is Subscriptions and Support, which delivered 209.56 million last quarter and is expected to track the company’s overall revenue growth in the low‑20% year-over-year range.

Last Quarter Review

Workiva’s previous quarter delivered revenue of 224.17 million, gross profit margin of 79.31%, GAAP net profit attributable to the parent company of 2.79 million, net profit margin of 1.24%, and adjusted EPS of 0.55, with year-over-year growth of 20.77% for revenue and 161.91% for adjusted EPS. Financially, EBIT reached 28.50 million, above internal expectations, with a year-over-year increase of 276.19% that underscores improving operating leverage within the quarter. From a mix perspective, Subscriptions and Support generated 209.56 million (93.48% of revenue) and Professional Services contributed 14.61 million (6.52%), with company-level revenue up 20.77% year-over-year supporting a view that the recurring subscription base led expansion.

Current Quarter Outlook

Subscriptions and Support

Subscriptions and Support is the primary driver of quarterly performance and remains the anchor for revenue visibility and earnings quality. Given the consolidated revenue forecast implies 20.23% year-over-year growth to 234.80 million, the core subscription base is expected to carry the majority of that increase as renewal cycles and seat expansion typically create predictable uplift. The previous quarter’s gross margin of 79.31% highlights the efficiency of Workiva’s SaaS delivery and should continue to support profit conversion in this segment, even if absolute margin shifts modestly with scaling costs or promotional activity. The year-over-year acceleration in adjusted EPS seen last quarter (+161.91%) sets a constructive tone for profitability, and with EBIT forecast to climb 177.37% year-over-year, incremental subscription revenue has the potential to translate into higher operating contribution after support costs. Sequentially, the implied revenue step-up from 224.17 million to 234.80 million suggests mid‑single‑digit quarter-on-quarter growth, reflecting consistent bookings momentum and stable net retention dynamics around the subscription base. Any incremental cross-selling across core platform modules would enhance average contract value and, in turn, sustain double‑digit year-over-year revenue growth rates while keeping service‑delivery costs comparatively contained.

Professional Services

Professional Services at 14.61 million last quarter remains a smaller contributor to total revenue, but it plays a role in onboarding, configuration, and solution deployment that supports future subscription expansion. Because service mix can vary with implementation cadence, this segment’s quarterly trajectory may be more uneven relative to subscriptions, yet it remains important to client ramp speed and to the timing of subscription activation for complex deployments. In the current quarter, the priority will be maintaining reasonable utilization and delivery efficiency without materially diluting gross margin, given services typically carry lower margins than the subscription line. Any expansion of lightweight enablement offerings or standardized packages could reduce cost per deployment, thereby preserving the consolidated margin profile while sustaining throughput in implementations. With total revenue guided to grow 20.23% year-over-year and subscriptions as the primary engine, services growth may trail or align with the pace of new and expanding accounts, contributing more as the pipeline converts. The key for investors is that services facilitate revenue conversion and retention, but the mix should remain tilted overwhelmingly toward Subscriptions and Support, preserving margin consistency.

Stock Price Drivers

There are three operational metrics that will most likely influence near‑term stock performance around the print: consolidated top‑line growth, profitability conversion, and the revenue mix between recurring subscriptions and services. First, delivering or modestly outpacing the 234.80 million revenue estimate and confirming year-over-year growth at or above 20.23% would validate steady demand and showcase resilience of recurring revenue fundamentals. Second, earnings conversion will be in focus: adjusted EPS estimated at 0.69 (+107.05% year-over-year) and EBIT at 39.67 million (+177.37% year-over-year) set an elevated bar; producing a similar trajectory to last quarter’s strong EBIT beat and positive net income would reinforce confidence in operating discipline. Third, mix dynamics matter: preserving a high Subscriptions and Support share and demonstrating continued efficiency in service delivery would reinforce the company’s margin profile, with last quarter’s gross margin at 79.31% serving as a baseline reference for the model. If quarterly net profit margin pushes higher from 1.24%—helped by cost discipline and operating scale—that would add support to the valuation narrative. Conversely, any signs of service-heavy mix, elevated cost of delivery, or slower bookings conversion could temper margin expectations and weigh on sentiment even if revenue meets the target. The combination of growth at scale and profit conversion is the hinge; with strong year-over-year comparisons embedded in consensus, investors will likely react most to the degree of upside versus those benchmarks and to clarity on the path for margin stability in the coming quarters.

Analyst Opinions

Bullish views appear to be the majority in the current window, with available indications pointing toward growth‑led expectations rather than cautionary revisions; within the January 1 to February 12, 2026 period, identifiable sell-side previews were limited, but the observable stance derived from consensus estimates is constructive. The prevailing scenario emphasizes a combination of mid‑20% year-over-year revenue growth and robust earnings scaling, which aligns with a bullish posture heading into February 19, 2026. In particular, the embedded consensus for adjusted EPS at 0.69 (+107.05% year-over-year) and EBIT at 39.67 million (+177.37% year-over-year) underscores expectations of operating leverage on top of recurring revenue expansion. That framework supports a favorable read‑through on unit economics and suggests analysts are comfortable with the runway for near‑term performance, even without explicit quarter‑specific margin guidance. While direct quotes from named institutions within the specified timeframe are limited, the underlying message is clear: estimates reflect confidence in sustained double‑digit revenue growth and meaningful profit conversion, not a belief in transient upside alone. Given last quarter’s execution—revenue of 224.17 million, gross margin of 79.31%, adjusted EPS of 0.55 with 161.91% year-over-year growth, and EBIT at 28.50 million—analysts appear predisposed to reward evidence of repeatable performance rather than one-off gains. As a result, the majority stance favors a bullish outlook contingent on Workiva demonstrating continued subscription‑led momentum, with disciplined costs and a steady mix profile that supports margins; delivery against those elements would affirm the constructive view, whereas a miss on either growth or earnings quality would likely draw a more cautious recalibration. In summary, the observable tilt is bullish based on current forecasts, with emphasis on recurring revenue consistency, EPS scaling, and EBIT efficiency as the key validation points in the upcoming report.