Workiva Inc. Class A

Good afternoon, ladies and gentlemen. Welcome to Acuva's Q2 2026 earnings call. My name is Harmony and I will be your host operator on this call. After the prepared comments, we will conduct a question and answer session. Instructions will be provided at this time. Please note this call is being recorded on August 4, 2026 at 5 p.m. Eastern Time. I would now like to turn the meeting over to your host for today's call, Katie White, Senior Director of Investor Relations. Please go ahead.

Good afternoon and thank you for joining Workiva's Q2 2026 conference call. During today's call, we will review our second quarter results and discuss our guidance for the third 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 third 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 management's current expectations and beliefs based on factors currently known to us and are subject to significant risks and uncertainties. Workiva cautions that these forward-looking statements are not guarantees of future performance. We undertake no obligation to update or revise these statements. If the call is reviewed after today, the information presented during this call may not contain current or accurate information. Please refer to the company's annual report on Form 10-K and subsequent filings with the SEC for factors that may cause our actual results to differ materially from those contained in our forward-looking statements. Also during the course of today's call, we will refer to certain non-GAAP financial measures, Reconciliations of GAAP and non-GAAP measures are included in today's press release. With that, we'll begin by turning the call over to Workiva's CEO, Julie Iskow.

Thank you, Katie, and thank you all for joining us today. Q2 2026 delivered another quarter of strong financial performance and continued demand for our trusted platform. We beat the high end of our revenue guidance with 19% growth in both subscription revenue and total revenue. We also continued to execute on our commitment to profitable growth, achieving a Q2 non-GAAP operating margin of 16.8%. This was a 180 basis point beat on the high end of our guide and a 1300 basis point improvement compared to Q2 of last year. Our Q2 results once again reflect broad-based, durable demand across our entire portfolio of solutions. It also reflects our unwavering commitment to operational efficiency as we scale our business. Because of our strong operating margin performance in the first half of the year, we're raising our full-year 2026 non-GAAP operating margin guidance to 18%. This 18% operating margin target is an important milestone for Workiva. This was the target communicated in our 2027 operating model. And with this updated 2026 guide, we will be delivering on that operating margin target a full year early. This margin milestone reflects discipline execution across every part of our business, and it reflects deliberate changes to how we're organized, to how we deploy resources and to where we direct those resources. This isn't a one-quarter result. It's a reflection of the operating model that we continue to improve as we grow. And our growth continues to be supported by the opportunities that we're seeing in the market. The Office of the CFO is undergoing one of its most significant transformations in decades. Finance leaders are being asked to do far more than close books and report results. Today, they're also responsible for the data that their businesses rely on and how AI is governed. And they're helping their organizations navigate a more complex regulatory and risk environment. But that's only part of the story. AI is also changing what's expected of the people that are doing the work. CFOs and their teams are expected to deliver insights in hours instead of days. They're expected to automate more of the work that's still manual, answer more questions with greater confidence, and respond faster as regulations and business conditions continue to change. They're also no longer expected to simply use enterprise software. There's now an expectation that they'll extend it and build upon it. Users are becoming builders. They're creating AI agents They're automating complex processes. They're connecting trusted business data with the rest of their technology ecosystem. They're extending the platforms they already rely on every day. And they're expected to do all of this while maintaining the governance, the security, the accuracy, and the auditability that the Office of the CFO demands. And as AI becomes more embedded in more business processes, trusted Connected and traceable data matters more than ever. This is exactly where Workiva can make the biggest difference. Our customers shouldn't have to assemble AI models and agents and enterprise systems and governance tools just to meet these new expectations. And they shouldn't have to choose between adopting the latest AI capabilities and maintaining the trust that their organizations depend on. They should be able to do both. That's why we're building intelligent capabilities that customers can put to work immediately. Some customers will use these capabilities as they are. Others will want to go further. They'll connect Workiva with more of their systems, build their own agents, extend workflows, or use Workiva as part of a broader AI ecosystem. Our approach supports both. We deliver the AI capabilities that our customers need today while giving them the flexibility to build, to connect, and to extend those capabilities. Inside Workiva and beyond it. All grounded in the trusted data, governance, and controls that they already manage within the Workiva platform. We believe this combination will help finance organizations meet the rapidly rising expectations of the office of the CFO. It's what our customers are asking for. And it's what we're building. And we believe no one is better positioned to deliver it than Workiva. This value proposition is resonating at the highest levels of the enterprise. Our largest customers are standardizing on Workiva. and it shows in our large contract cohorts. In Q2, contracts valued over $300,000 annually grew 34% and contracts above $500,000 annually grew 33%, both compared to Q2 of 2025. This growth reflects both continued expansion within our existing customer base and the landing of larger multi-solution new logos. I'd like to highlight a few of our Q2 deals that demonstrate how our platform is winning in the market to solve our customers' most complex reporting challenges. First, we signed a mid six-figure account expansion deal with a global digital banking and fintech leader for private company reporting, multi-entity reporting, connected bank reporting, and sustainability. The bank is on a multi-year private to public journey. The investment in Workiva as a core financial and regulatory reporting platform is central to supporting this transformation across tax reporting, sustainability disclosures, and Basel Pillar 3 regulatory compliance. Second, We signed a multi-six-figure new logo deal with a U.S.-based global material science company. The customer purchased four solutions, SEC reporting, management reporting, controls management, and sustainability. Following a highly competitive process, They chose Workiva over a multiple point solution vendor approach because of our ability to serve as their definitive system of truth. They recognized that no combination of disparate vendors could replicate our platform without sacrificing data connectivity, collaboration, and trust. Workiva will support this company's rapid expansion through acquisition and their increased focus on global distribution. The deal was a co-sale and will be delivered by a regional advisory firm. I'll turn now to financial reporting. Demand continues to build as companies modernize complex global operating models. And the bar for what that requires keeps rising. Organizations need continuous access to accurate and traceable data to stay report ready and audit ready, not just at quarter end, but continuously throughout the quarter. Here are a few of the many Q2 wins worth highlighting. First, we signed a mid-six-figure new logo deal with a U.S.-based global government and defense technology services company. This customer purchased SEC reporting, multi-entity reporting, management reporting, and sustainability. The primary driver for this opportunity was a global enterprise reporting transformation initiative that spans the company's operations in more than 90 countries. With complex and evolving reporting requirements across numerous jurisdictions, the customer sought a single platform capable of supporting global governance and local compliance. They selected Workiva because our unified platform enables them to meet the unique reporting mandates in the markets in which they operate, while empowering distributed teams worldwide to modernize and streamline their critical reporting processes. Second, we signed a mid-six-figure expansion deal with the U.S. Regional Bank. This loyal customer upgraded to our advanced tiers for both SEC reporting and sustainability, and they expanded across three additional solutions, tax reporting, living will, and stress testing. The primary catalyst for this expansion with the bank's reclassification as a Category 3 institution. This significantly expanded its regulatory reporting obligations. The deal was a co-sell with a regional advisory firm. I'll move on now to one of our key vertical specific solution categories, financial services. We continue to see strong demand as institutions navigate increasingly complex regulatory requirements. Here are a few highlights from the quarter in this vertical. First, we signed a high six-figure account expansion deal with a large global private equity firm for fund reporting. This company signed on as a Workiva customer in Q3 of 2024. It first invested in our fund reporting solution in Q4 of 2025. Within six months, they have more than tripled the number of funds supported by the platform, and they now spend more than $1 million with Workiva. This deal is a great example of how our metric-based licensing model drives the opportunity for ARR expansion in a single solution. The deal was sourced and will be delivered by a regional advisory firm. A Big Four professional services firm operating in Europe's largest investment fund market signed a mid-six-figure expansion deal for fund reporting. The firm is expanding its use of Workiva across its fund administration business to support financial statement preparation and other fund reporting for a growing population of fund entities. This expansion enables the firm to consolidate reporting processes onto Workiva, driving greater standardization and scalability as its business grows. Next, I'd like to cover governance risk and compliance. Risk and audit teams are navigating accelerating AI governance, geopolitical uncertainty, and changing regulations, often with leaner teams than ever before. Many are finding that siloed approaches are no longer sustainable. Organizations are choosing Workiva to centralize enterprise risk, transform audit and controls, and streamline compliance. With AI embedded across our GRC platform, including our flow chart visualizer and GRC intelligence agents, we help teams identify emerging risks faster, uncover patterns earlier, and respond with greater confidence. Let me share a few Q2 GRC deal highlights. First, We signed a mid-six-figure account expansion with the Fortune 500 specialty insurance holding company. This company added multiple solutions, including enterprise risk, compliance management, and management reporting. Three years ago, this customer had just two Workiva solutions, totaling just over $100,000. Today, they have expanded to nine platform solutions, spending high six figures annually with Workiva. The additional GRC expansion was driven by the need to eliminate significant manual effort, consolidate technology across teams, and establish a unified enterprise data strategy. The opportunity also displaced a standalone GRC point solution, further reinforcing the value of a connected platform. Second, we signed a multi-six-figure expansion deal with the U.S. Farm Credit Bank to build and scale its GRC program across audit management, controls management, compliance management, enterprise risk, and operational risk management. This opportunity centered on displacing an incumbent GRC point solution in favor of the more comprehensive Workiva platform. The deal was a co-sell with a regional advisory firm. Another area worth highlighting is sustainability. As sustainability requirements move into implementation, we're seeing an important shift in the market. Organizations are moving beyond preparing for compliance to operationalizing trusted, audit-ready reporting. As a result, responsibility is increasingly shifting to the office of the CFO. CFOs expect sustainability disclosures to be held to the same standards as financial reporting with the same traceability, governance, internal controls, assurance, and auditability. That's changing buying behavior. Standalone sustainability solutions are no longer enough. Increasingly, customers are choosing Workiva as the unified platform to manage financial and non-financial reporting together. using the same trusted data, governance, and reporting processes. Our deal activity reflects this trend. Our largest sustainability wins almost always include one or more financial reporting solutions, whether that's ESF for integrated reporting, SEC reporting for US filers, or increasingly multi-entity reporting. And the business driver is straightforward. Companies reporting under CSRD ISSB, California's SB 253, and other sustainability reporting requirements are often large multinational organizations with complex legal entity structures. They need trusted data, consistent governance, and reporting processes that span both financial and non-financial information. This is where Workifa is differentiated. We are uniquely positioned to bring these reporting processes together in a single, trusted platform. Let me highlight a few sustainability deals from Q2. First, we signed a mid-six-figure new logo deal with one of Europe's largest state-owned energy companies, serving roughly 20 million customers. This company purchased Sustainability Reporting and Controls Management The deal was driven by CSRD compliance requirements and was a competitive win over multiple point solutions. Workiva was the only solution to address the financial reporting, GRC, and sustainability requirements on a single platform. The deal was a co-sell and will be delivered by a Big Four firm. Second, a global healthcare technology company signed a mid-six-figure expansion deal, upgrading to sustainability advanced. This customer also extended sustainability across multiple entities and added multi-entity financial reporting. The driver for this opportunity was ISSB compliance and the need to connect financial and non-financial data across their global legal entity structure. This was a competitive displacement of a standalone sustainability point solution. This is exactly the consolidation dynamic that we're seeing across our customer base. To conclude our customer highlights, let's turn to capital markets. Following the momentum we saw earlier in the year, the IPO market demonstrated continued strength in Q2. We supported a robust slate of public listings this quarter. Three in particular reflect the breadth and the caliber of organizations that are choosing Merkiva as they enter the public markets. SpaceX, one of the most complex and closely watched listings in market history. Cerebrus, a leader in AI infrastructure. and Quantinuum at the forefront of quantum computing. These aren't just marquee names. They represent exactly the kind of organizations that require a trusted, audit-ready platform before they file and throughout their life as a public company. The capital markets opportunity for us extends well beyond the S-1. We often engage with complex private companies years before they go public. We help them build the reporting infrastructure, controls framework, and trusted data foundation that a public company requires. That early engagement matters. When these companies file their S-1, Workiva is already embedded. And when they become SEC registrants, they expand our addressable market for additional solutions, including SEC reporting, controls management, and multi-entity reporting. regardless of whether we supported their initial listing. The private to public journey is an entry point. The platform relationship that follows is a long-term durable value driver. I'll turn now to product innovation. Workiva is in the midst of a fundamental transformation with AI. Trusted data has always been at the core of what we sell. And in an AI-driven world, That foundation becomes a structural advantage. Organizations can deploy AI broadly. What they cannot easily replicate is a platform where every data point is traceable, every output is auditable, and every disclosure can be defended. That is what we are building on. And we are transforming our platform to be agentic first, where AI doesn't assist at the margins, but executes directly within the high-stakes workflows that define the office of the CFO. Workiva recently announced the release of new AI capabilities to our advanced solution tiers for SEC, for sustainability, and for other solution offerings. These new AI capabilities bring regulatory-grade agents for sustainability disclosure, for financial tie-out, and for disclosure peer benchmarking. These are not general-purpose AI tools. They are purpose-built agents designed for environments where accuracy, auditability, and explainability are non-negotiable, and every output produced is built to withstand scrutiny. The new sustainability disclosure agent drafts, checks, and improves disclosures directly against sustainability frameworks, moving teams from requirements interpretation to review-ready drafts without leaving Workiva's governed environment. The result is faster cycle times, fewer interpretation gaps, and disclosures that arrive at the review stage already grounded in the applicable standard. Workiva's newly enhanced tie-out agent performs comprehensive consistency checks across financial reports. It automatically flags discrepancies and surfaces AI generated explanations for each variance. With this agent, teams can catch errors earlier, close faster, and finish with a fully documented, auditable trail that supports both internal review and external examination. And the new benchmarking agent brings peer analysis directly into the platform, enabling financial reporting teams to build custom peer groups, identify disclosure gaps, and draft market-aligned disclosures. with every insight traceable back to the source filing. Peer intelligence is no longer a separate work stream. It's embedded in the location where the disclosures are built. Alongside these purpose-built agents, we recently introduced the Workiva MCP Gateway, a governed connectivity layer that extends the Workiva platform to the enterprise AI tools that organizations already use. Whether customers work with the leading frontier models or work with other custom-built agents, every AI connection through the Workiva MCP gateway inherits Workiva's identity, permissions, governance, and data lineage. AI-generated work remains fully traceable back to its underlying source data, regardless of which model produced it. The MCP Gateway creates a universal integration layer between Enterprise AI and Workiva. Customers' preferred AI tools can securely interact with the live data and workflows in the platform, rather than relying on manual exports or static document uploads. Instead of working from stale snapshots, AI can retrieve real-time, governed context directly from the Workiva platform. The result is that organizations no longer need to choose between adopting best-of-breed AI and maintaining enterprise-grade governance. With the Workiva MCP Gateway, they can use the AI of their choice while preserving the security, traceability, and control that's required for business-critical reporting. We've also expanded AI capabilities at the platform level. Last week, we introduced persistent custom knowledge bases allowing organizations to build a centralized repository from their own content and reference it across every AI interaction on the platform. Here are a few representative examples of how customers are using this capability. First, a financial reporting team can draft new disclosures grounded in prior filings and earnings documents already living in Workiva, maintaining consistency in language, structure, and disclosure across quarters. Second, a regulatory reporting team at a bank can produce examiner-ready stress testing narratives by drawing on past DFAST and CCAR filings and a continuously updated library of regulatory guidance. And third, an internal controls team can execute audit workflows and reference their own policy and procedure library so every AI output reflects the organization's standards, not generic assumptions. In each case, the output is grounded in content the organization has already vetted and stands behind. That distinction matters when the work product will be reviewed by auditors, regulators, and investors. This is AI that makes outcomes traceable and defensible, built for the scrutiny that defines this space. We look forward to showcasing more product innovations at our upcoming Amplify Conference and our 2026 Investor Day in September. I'll close with one final thought. The demands on the Office of the CFO will continue to grow in both scope and complexity, and we believe Workiva is differentiated by our ability to meet these demands. Our commitment is to keep earning that differentiation through disciplined execution and rapid innovation. I'd like to thank our customers for their trust and our partners for continuing to expand our reach. I'd also like to thank our employees for their dedication, their relentless focus, and everything they do to serve our customers and move Workiva forward. With that, I'll turn the call over to Barbara to take you through our financial results and our outlook for the rest of the year.