Workiva Inc. Q4 FY2025 earnings call

CEO Julie Iskow noted strong momentum in 2025 with Q4 subscription revenue growth 21% and total revenue growth 20% vs 2024. Full year 2025 had 22% subscription revenue growth and 20% total revenue growth. Q4 non-GAAP operating margin 19% was a 160 basis point beat. Full year non-GAAP operating margin near 10% was 440 basis points above guide. Highlighted deal examples across various segments like global fintech/insurance brokerage, large regional bank, U.K. pharmaceutical leader, etc. Discussed AI capabilities integrated into platform, with customer adoption growing. Introduced new leadership members including Chief Revenue Officer, Chief Product Officer, and CFO. Mentioned international expansion and progress towards 2027 medium-term model targets.

In Q4 2025, total revenue was $239 million, up 20% year-over-year. Subscription revenue was $219 million, up 21% year-over-year. Q4 non-GAAP operating margin was 19.1%. For full year 2025, total revenue was $885 million, up 20% over the prior year. Subscription revenue was $813 million, up 22% year-over-year. Full year non-GAAP operating margin was 9.9%. Foreign currency fluctuations had an impact on growth rates. At end of Q4 2025, there were 6,624 customers, gross retention rate was 97%, net retention rate was 113%. Current remaining performance obligations were $757 million. Total revenue outside the U.S. was 27%, up 300 basis points compared to prior year.

For Q1 2026, total revenue expected to range from $244 million to $246 million, services revenue relatively flat, non-GAAP operating margin in range of 15.5% to 16%. For full year 2026, total revenue expected to range from $1.036 billion to $1.04 billion, subscription revenue expected to grow ~19% year-over-year, total services revenue relatively flat year-over-year, non-GAAP operating margin range 15% to 15.5%, 2026 free cash flow margin expected ~19%. 2027 and 2030 financial targets remain intact.

First question from Rob Oliver on AI role in new wins and customer AI needs. Follow-up from Rob on operational rigor and margin. Question from Terrell Tillman on Michael Pinto's focus. Question from Alex Sklar on AI usage and road map. Question from Adam Hotchkiss on capital markets environment and margin progression. Question from Steve Enders on guidance philosophy and pricing model. Question from Daniel Jester on verticals. Question from Nicholas Dannewitz on multiproduct customers and NRR. Question from Brett Huff on AI monetization and GRR