Revenue Beat and Growth
Q1 total revenue of $247M, up 20% year-over-year, beating the high end of guidance by $1M; subscription revenue $225M, up 21% YoY.
May 5th, 2026
Summary
- Earnings Call Date:
- 2026-05-05
- Change Since:
- -13.68%
- Next Earnings Date:
- 2026-07-30
Earnings Call Sentiment
PositiveThe call conveyed strong top-line growth, durable recurring revenue, substantial margin expansion and accelerating product innovation (notably AI agents), alongside broad enterprise wins and improving go-to-market execution. Near-term conservatism in Q2 guidance, an expected Q2 margin step-down, invoice timing volatility affecting billings, and flat services revenue are manageable short-term headwinds. Overall, the positives (revenue beats, retention, large-contract expansion, margin improvements and raised full-year margin and FCF outlook) materially outweigh the modest near-term concerns.
Company Guidance
Workiva guided Q2 2026 total revenue of $250–$252 million with services revenue expected to be relatively flat versus Q2 2025 and non‑GAAP operating margin of 14.5%–15.0% (Q2 margin is expected to be lower than Q1 due to headcount‑related expenses; Q1 non‑GAAP operating margin was 18.4%). For full‑year 2026 the company now expects total revenue of $1.037–$1.041 billion, subscription revenue growth of approximately 19% year‑over‑year, services revenue roughly flat year‑over‑year, non‑GAAP operating margin of 16.0%–16.5% (raised 100 basis points) and free cash flow margin of about 20% (also raised 100 basis points); management noted the $1 million Q1 revenue beat was flowed into the full‑year guide and current RPO of $765 million (up 20% YoY) underpins near‑term visibility.
Strong Profitability and Margin Expansion
Q1 non-GAAP operating margin of 18.4%, a 240 basis point beat versus the high end of guide and a 1,600 basis point improvement year-over-year.
Recurring Revenue Visibility
Current remaining performance obligations (cRPO) of $765M, up 20% YoY, reflecting predictable revenue to be recognized over the next 12 months.
Customer and Retention Strength
6,665 customers (up 280 YoY); gross retention 97% (above 96% target); net retention rate 112% (vs 110% in Q1 2025).
Large-Contract Cohort Expansion
Contracts >$100k totaled 2,575 (up 24% YoY); contracts >$300k totaled 605 (up 38% YoY); contracts >$500k totaled 265 (up 39% YoY).
Product and AI Innovation
Launched multiple AI-driven capabilities (Flowchart Visualizer, enhanced GRC agents, sustainability AI agent, internal tie-out agents) to automate controls, disclosures and data consistency.
Capital Allocation and Liquidity
Cash, cash equivalents and marketable securities of $863M; repurchased 763,000 shares for $50M in the quarter with $228M remaining on a $350M program—supports return of capital while investing in growth.
Raised Full-Year Margin and Free Cash Flow Outlook
Full-year 2026 non-GAAP operating margin guidance raised 100 bps to 16.0%–16.5%; free cash flow margin outlook raised by 100 bps to ~20% while maintaining full-year revenue guide of $1.037B–$1.041B and subscription revenue growth ~19%.
Broad-Based Enterprise Wins
Multiple mid- to multi-6-figure new logos and expansions across ESEF, SEC, sustainability, multi-entity reporting and GRC, including large financial services, logistics and biotech customers; notable capital markets customer doubled spend via expansion.
Go-to-Market and Organizational Progress
Ongoing GTM restructuring (new CRO) and reported shorter sales cycles and higher-quality enterprise, multi-solution deal activity supporting scale toward $1B+ revenue.
Operator
Good afternoon, ladies and gentlemen. Welcome to Workiva's Q1 2026 Earnings Call. My name is Darcy and I will be your host operator on this call. [Operator Instructions] Please note that this call is being recorded on May 5, 2026 at 5:00 p.m. Eastern Time. I would now like to turn this meeting over to your host for today's call, Katie White, Senior Director of Investor Relations at Workiva. Please go ahead.
Katie White
Good afternoon, and thank you for joining Workiva's Q1 2026 Conference Call. During today's call, we will review our first quarter 2026 results and discuss our guidance for the second quarter and full year 2026. Today's call will include comments from our Chief Executive Officer, Julie Iskow, followed by our Chief Financial Officer, Barbara Larson. We will then open up the call for a Q&A session. After market closed today, we issued a press release, which is available on our Investor Relations website, along with our quarterly investor presentation. This conference call is being webcast live, and following the call, an audio replay will be available on our website. During today's call, we will be making forward-looking statements regarding future events and financial performance, including guidance for the second quarter and full fiscal year 2026. These forward-looking statements are based on our assumptions as to the macroeconomic, political and regulatory environment as of today, reflect the management's current expectations and belief based on factors currently known to us and are subject to significant risks and uncertainties.
Workiva cautions that these forward-look...
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