WORKIVA INC.

NYSE: WK | Equity Pitch | February 2026

BUY — Blended Price Target: $90.83

+55% upside from $58.61 (Feb 25, 2026 close)

CURRENT

$58.61

DCF (FLOOR)

$49.93

BLENDED PT

$90.83

WACC

10.0%

TERMINAL g

2.0%

The Setup

Workiva is a cloud SaaS platform that owns the financial reporting workflow for 6,600+ enterprises — including 85% of the Fortune 1000. FY2025 revenue reached $885M (+20% YoY), with 97% gross retention and a rapidly expanding margin profile. The stock is down ~49% from its Jan 2025 high of $115, creating a valuation entry point.

Why It's Mispriced

Our DCF (GAAP EBIT, 10% WACC, 2% terminal g) implies $49.93 — a conservative floor that does not add back SBC. Market-based methods (EV/Revenue 6x NTM at $112.64, EV/EBITDA 25x FY27E at $105.39, Street consensus at $95.38) capture the premium for durable growth and margin inflection. Blended equally: $90.83. Terminal value is ~70% of EV, so the discount rate is the single biggest swing factor.

SENSITIVITY: ±100 bps WACC → $43–$59 | ±200 bps terminal margin → $43–$57 | Bear $49.93 | Base $90.83 | Bull $131.06

Prepared by Dylan | Confidential | For Academic Purposes Only

Company Overview

WORKIVA INC. (WK) | Cloud SaaS | Founded 2008 | Ames, IA

What It Is

Cloud-native SaaS platform that unifies financial reporting, sustainability disclosure, and GRC workflows into a controlled, audit-ready environment.

Competitive Edge:

"Connected reporting" — data linking, audit trail, and controls across enterprise systems

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Revenue Model:

Predominantly subscription & support (high visibility, recurring). Professional services as a smaller component.

FY2025 Snapshot

Revenue

$885M

+20% YoY

Customers

6,600+

85% of F1000

Non-GAAP Op. Margin

9.9%

+560 bps YoY

FCF Margin

15.6%

$138M FCF

Gross Retention

97%

113% NRR

FY26 Revenue Guide

$1.04B

GAAP profitability

Source: Workiva FY2025 10-K, FY2026 Guidance (Feb 2026 Earnings Call)

Investment Thesis

The specific drivers that move the valuation — and break the model if they fail

01

Operating Leverage Is the Value Engine

Our DCF assumes GAAP EBIT margin expansion from -4.8% (FY24) to 17.0% by terminal year. This is the core thesis: Workiva's cost structure should scale as subscription revenue compounds. If margin expansion stalls at 8–10%, terminal FCF compresses and the DCF drops below $35.

EBIT Margin Arc

-4.8% → 17.0%

02

Durable Double-Digit Revenue Growth

Revenue compounds at ~12% CAGR from $885M to $1.8B over the explicit forecast period. Regulatory tailwinds (SEC climate, EU CSRD) and net revenue retention of 113% underpin this trajectory. Growth deceleration below 8% would meaningfully reduce the terminal value driving ~70% of EV.

Revenue Growth

~12% CAGR

03

Discount Rate Dominates Outcomes

At 10% WACC, the DCF implies $49.93. A ±100 bps move swings implied value from $43 to $59 — a wider band than any single operating assumption. Terminal value represents ~70% of enterprise value, making WACC the single largest source of valuation uncertainty.

±100 bps WACC Range

$43 – $59

Note: SBC (~$120M/yr, ~13% of revenue) is included in GAAP EBIT — not added back. This keeps the DCF conservative. $250M buyback partially offsets dilution.

Valuation & Risks

Multi-Method Valuation

Scenario Analysis

BEAR

$49.93

-14.8%

BASE

$90.83

+54.9%

BULL

$131.06

+123.6%

Key Risks

Growth Compression

Sustainability reg delays or macro tightening could slow buying cycles below 10% growth

Competitive Pressure

ERP vendors (SAP, Oracle) and AI-native entrants could erode pricing power and margins

SBC Dilution

~$120M/yr (~13% of revenue); $250M buyback only partially offsets per-share dilution

Convertible Overhang

$773M convertible notes create refinancing risk and potential equity dilution at conversion

Execution Risk on Margins

Core thesis depends on -4.8% → 17% EBIT margin ramp — the biggest model dependency

MODEL: DCF_Complete.xlsx (DCF Template + Valuation + Model Summary + Share Prices) | Workiva_Valuation_Report.docx

Model Access & Appendix

Supporting files, key assumptions, and data sources for replication

Deliverables

DCF_Complete.xlsx

4-tab workbook: DCF Template, Valuation, Model Summary, Share Prices (539 trading days, Jan 2024–Feb 2026)

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Financial_Model.xlsx

Standalone 9-year DCF with FY2024–FY2032 projections and terminal value calculation

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Workiva_Valuation_Report.docx

8-section equity research report with full narrative writeup and methodology

Key Assumptions

Data Sources

Workiva FY2025 10-K • FY2026 Earnings Call & Guidance • SEC Filings (Convertible Notes) • Yahoo Finance (Share Price History, Jan 2024–Feb 2026) • Bloomberg / FactSet (Consensus) • Company IR

This analysis is for academic purposes only and does not constitute investment advice. All data sourced from public filings.