Workiva, Inc. Class A Aktie

Welcome, everyone, to our webinar. We know AI adoption and realizing its true value isn't just a trending topic, but it's likely a top priority in your company's goals and OKRs for the year. Many of you are actively figuring out the best ways to leverage AI for your accounting and finance functions. So today, we're going to walk you through practical real-world examples of AI and show you how to move from initial adoption to measurable impact. But before we get started, I am going to spend some time walking through housekeeping items.

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All right. Let's kick things off with some quick introductions and an overview of today's learning objectives. I am Chelsea Hall. I'm an industry principal with Workiva. As a former practitioner, I've been through my fair share of implementations, so I can definitely relate to the kinds of challenges we're going to discuss today. Joining me are Travis Dean, a Senior Manager at Deloitte, and Jason McLean, a Managing Director at Deloitte. Travis and Jason work with finance organizations every day on these implementation challenges. So I'm especially thankful to have them here today to provide insights on this topic.

And a quick reminder, why are we all here today? This webinar is designed to provide all of you with a better perspective on the current AI landscape for finance and accounting professionals. The critical role of quality data, defined processes, and governance frameworks in achieving AI readiness and the high -- some high-impact use cases of AI within accounting and finance teams.

So let's set the stage. I think we can all agree that the AI Pandora box is open. And from what I can tell, it's definitely not closing. So the question is no longer whether to adopt AI, it's whether you're going to be AI-enabled or actually AI successful. These are 2 very different themes in my mind, especially when we're talking about the sensitive nature of work within accounting teams and the office of the CFO.

Based on Workiva's 2026 executive benchmark survey, 2/3 of executives agree that AI will dramatically boost productivity. That's a really strong consensus and a signal of optimism of AI in general. And we also know that AI adoption rates are high and continue to grow. But here's the reality. Although investments in AI are increasing and its use has grown significantly, most organizations haven't implemented the policies, procedures and controls needed to use AI safely and effectively within their organizations. In fact, only 36% of CFOs report having high-quality data to use with AI and a majority of executives believe that the company's current approach to adopting AI could introduce risk to their organization.

But even though integrating AI into accounting and finance work streams carries inherent risk, companies are increasing technology spending and digital transformation projects that enable and embed AI into their existing workflows. Most leaders are prioritizing the automation of data collection and validation as well as strengthening governance.

So Travis, Jason, I've just given a brief background on what Workiva is seeing as far as the state of AI for accounting and finance teams, but I'd love to get your perspective from working with accounting and finance professionals, how are you characterizing the current state of AI adoption within these accounting and finance teams?

Yes, sure. Chelsea, I would be happy to take that. The top-down pressure is real. every day when I talk to my clients, they are getting pressure from someone more senior from them about what is their AI strategy. And what's interesting about it is it's almost taken this form of a hammer looking for a nail in some cases at the moment because everyone is trying to figure out what's their AI strategy, what's their agentic roadmap for their accounting and finance function.

In fact, I was just talking to a client the other day, and he said, "Jason, I need an agent for my team." And I'm like, all right, why do you need an agent for your team? He goes, everyone else has one. And he goes, I need it to be called something cool and I need to do something cool. And while we joked about that, joking aside, it's really what the environment is these days. Everyone is trying to figure out how to use this in the most effective and efficient means for their organization. And sometimes that pressure is causing them to react a little bit faster than they probably should by going through a more considerate design process from that perspective. Travis, what are you seeing?

Yes. I definitely hear a lot of that, right? A lot of that top-down pressure. I think what we see as far as number of organizations that have gotten started, what they have started with, I can probably put some numbers behind that. If I think of just like generally the types of AI out there, the capability, like predictive AI and machine learning versus Gen AI versus agentic. I think what we see is maybe somewhere around like 1/4 of the organizations we work with have something out there in that predictive and machine learning bucket. So think of something that maybe touches a forecast or an accrual estimate, something like that.

It's interesting to me that number is stagnating a little bit for us in what we see because I think a lot of orgs who are starting are leapfrogging that a little bit and going straight to Gen AI. We're seeing about maybe 1/3 of the organizations we work with who have deployed something that falls into the Gen AI capability. The agentic bucket, that's a little harder to measure. I know that's the buzzword that's out there today. So I think in some cases, people are saying they're doing something agentic, but maybe it's glorified automation behind the scenes. Is it truly agentic? Is it reasoning and proving processes acting on its own? There's far fewer of that, that we actually see out there in practice, very small percentage. But -- and definitely, the area people are asking about interested in because of how much impact it's going to have on finance orgs going forward.

But yes, largely to throw maybe one more stat at it, 2/3 of the organizations we talk with put themselves in a bucket of I'm either conservative on AI and in wait-and-see mode or I'm a follower, right? Those 2 numbers come out to about 2/3 and then 1/3 who've actually started. And when I say started, I'm not talking the copilots like user productivity efficiency type tools. I'm talking AI deployed against finance and accounting workflows and about 1/3 of the organizations we work with have started there. And earlier, I was giving the breakdown of, okay, where did they start and they have gotten started. And later, we'll talk a little bit more about specific use cases.

Great. And I think that insight is really helpful, and I think probably speaks. So it sounds like 2/3 of accounting finance professionals that you're speaking with, they're kind of waiting -- they're kind of taking like this wait-and-see approach with AI. They might not be like the earliest of adopter. And I think given by our nature, we're a little bit risk- averse and we'll kind of talk about that later in the webinar to like why the stakes for AI and these teams are a little bit higher than maybe some other teams within an organization.

So with that, let's see how everybody in attendance is feeling about the maturity of their AI program. So it is time for our first polling question. Everybody, if you're not looking at your screen, now it's time to look at your screen and answer, how would you rate the maturity of your AI program? A. You're just getting started; B. We have some pilots underway. C. We're scaling select use cases; and D, AI is fully embedded in our workflows. And I think, Travis, based on what you're seeing, we would probably anticipate most people are going to be responding A and B. So that is your response. Don't feel like you're falling behind. You're in the right place. Hopefully, we'll help you identify some use cases you can scale by the end of today's webinar. So make sure you take time to answer that question. Give you -- I'll leave it on the screen, but I'll go ahead and move to kind of our next topic on trusted AI.

What we're hearing from our customers is that there's excitement from executive teams to implement AI. We just heard that top-down pressure is real. They're feeling the pressure to realize the benefits that, as we've just alluded to or I did in the opening, there are gaps in execution, especially in relation to establishing the governance and oversight necessary for the secure deployment of AI within an organization. And what we were just talking about, Travis said so beautifully, maybe AI for finance and accounting teams were more like late adopters or wait to see. And I think what makes this particularly high-stakes for finance and accounting professionals is just the nature of our work.

Finance and accounting teams are frequently working with sensitive data and the output of our work is generally in the form of financial statements, reports that you file with regulators and you have earnings releases that are going to the street and to your investor community. And these reports have to be accurate. So in this world, there is no margin for error. And then there's also a lot of heightened scrutiny, whether it's from auditors, executives, investors or stakeholders. That scrutiny is incredibly high.

So being AI successful in accounting means something different than it might mean if you're like in a marketing or a sales team. You're in marketing using your AI tool to help with messaging versus in accounting using AI to help you make sure your disclosures are accurate or your reports tied out correctly. So to the Deloitte team, how do you define trusted AI in the context of accounting and finance operations? And we're talking about that pressure from the executive team, the C-suite. How are you advising teams to balance the pressure to implement AI at this fast pace with the need to make sure AI is secure and controlled?

Yes, sure. Chelsea, the one thing I like to talk to finance and accounting teams about is really to make sure that they understand which of their AI use cases that they're thinking about have more risk than others. That's such a key component. When this whole AI or generative AI craze or phase started up a couple of years ago, we saw a lot of visioning sessions, and we saw a lot of use case development coming out of there. And your more risk-averse accountants quickly looked at that list and is like some things are a little bit higher risk. And the reality is you can probably do it with AI, you probably get to a result.The question is, can you trust it? And that's really the challenge.

I was recently talking with a Chief Tax Officer and he shared something very similar. He shared how his team had presented a list of their prioritized use cases, and he had to derail a few of them. He had to derail because he said, "Hey, I love the use case, but if I can't get comfortable with it, how are we going to do it? We aren't going to do it." And that was his point is he needed to make sure there wasn't a black box. He needed to make sure he understood the inputs, the human in the loop, the human over the loop, the outputs and how he could trust it in order for him to give it a green light. And in several cases, he couldn't do that.

What's interesting in using that tax function as an example is I've watched them over time. And what they really started to do is really mature their use cases, mature it to start to think about how they get -- how they embed trust in it, how they are going to get comfortable with it, how they're going to explain that level of comfort to their own management to a third party, maybe their auditors. And it's really kind of helped them kind of really stay focused on things that are practical, use cases that are practical and use cases that are really going to deliver value for them. Travis, what are you seeing?

Yes. Well, I love the stories from the ground there, Jason, and the quotes you're hearing. I think I hear a lot of that as well. When this comes up because we do get asked a lot about this, I think it's interesting, the framing of the question comes to me is like how do I get my auditors comfortable, like they're going to come ask me if we deploy AI. And the way I answer that is almost turning the question back on the person asking it because I think the auditor is not going to necessarily come with a long checklist of things, did you do all these things? Like the first question is going to be, how did you get comfortable with the AI and the results it's providing? You need to have a pretty robust answer to that.

Like when we're talking trusted AI, I wish it were like a very clean, simple answer of one thing. But the fact is it's many different things around that are wrapped around any AI deployment, right? So I think you touched on a lot of these, Jason, but even from the beginning of picking your initial use cases, maybe there's a materiality threshold, right, and the data that it's touching and maybe there's a bottom half of the materiality and you start there. While you're building the AI, of course, you're going to want to back test it on historical data. You're going to run it in parallel to your existing process, see how the results are the same or different, like a lot of the standard things you do in sort of a modeling type deployment.

And then, of course, once it's live, the work doesn't stop. We all know that AI and models drift over time and it could get worse and responses can be unexpected. So what do you have in place to continue to monitor this, where are the humans in the loop? All of these things are part of that like self-created checklist, I think organizations need to think about to have a good answer to that question. Like how did you get comfortable with this?

One thing that's a bit difficult in this, of course, I don't think that the regulatory bodies out there have given very clear directives and guidance yet and policies like you must do these things. But if you take the approach that, Jason, you're talking about that I'm talking about here and have a pretty comprehensive view over the full life cycle of AI deployment, whenever those regulations and policies come out, you're likely going to already be conforming to them. When your auditors or anyone else comes asking questions, you're going to have very solid answers to that. So it's a list of many things to do. But I think all like within the realm of what's feasible and what's worth doing to be able to go on that AI journey.

And I know from Workiva, we talk about like trusting your AI a lot. And I think for people listening, as you think about like how can I trust AI or what can I show my auditors to see how I got comfort, I think there's like a couple of things like can you verify how -- what AI has done to reach its conclusions, how can you trace how that output was formed a couple of ways like does your AI include citations when it gets you an answer? Is there lineage tracking? Is there an audit trail within AI? Is it traceable? Is it explainable? So I think those are just like a couple of things to think about. And obviously, depending on the use case will depend on how many of those features you would need in the response or having that tracking back to the source or that audit trial that those are just features that your AI could have embedded in them to make it more trusted.

I love what you guys sharing what you're hearing from your customers. And I think one key takeaway that we want to make sure everybody leaves with today is that data readiness and process readiness really comes before AI readiness. This isn't a technology problem first. It's a data and process problem first. And I don't know about everybody else in the call, but I've definitely worked for executives who you could go to them with a problem and they're like, well, let's implement technology to solve this problem. And then you're just like throwing technology on bad of a bad process.

And I have one example from a previous work experience, like we had an ancient AP invoicing tool that was supposed to process our invoices. Over 60% of our invoices were failing and they were requiring manual intervention for the invoice to get processed correctly in our ERP systems. So vendors were getting upset because they weren't getting paid on time. We didn't have a very reliable AP aging report because invoices weren't getting processed. So we finally got the green light to implement a new tool -- and this tool even had AI embedded in it.

So the solution would continually learn and better capture invoices over time. And so as you can imagine, the AP team was excited about the tool. The implementation moved fast. But after all the work of implementing the new tool, a majority of our invoices were still failing, payments were still being delayed, vendors were still mad at us. So even though the new AI tool was great at reading, capturing and coding invoices, it was a lot better than the legacy system we had been using, we quickly found out that the problem wasn't 100% related to our technology. It was definitely an underlying problem in our process.

We found out that POs were being raised in a timely manner. So even though our new tool was scanning these AI invoices and processing them more quickly, they still aren't getting paid because there wasn't a corresponding PO. So although we would eventually come to benefit from the software, it wasn't until everyone had to undergo new PO training to make sure POs are being raised properly that we could actually take full advantage of the new technology. So I think that's just an example of when you throw technology or AI at a problem when that's actually the underlying process or even the data is broken.

So to the Deloitte team, you're advising clients and you're walking into an organization like mine, and I'm like, oh, our vendors aren't getting paid on time, and we want to adopt AI in our function. How do you assess their data and process readiness? And what are some signs that an organization is maybe not ready for the latest tech and technology? And what do you advise them to do first?

Yes. Chelsea, the first thing I talk to controllers and other accounting professionals about is how hard is it to do what I would call relatively simple data tasks in their current environment. Is it easy? If you ask for -- if a controller asked for a custom report or some analysis and the team said they need 3 days to do it, there's probably something behind the scenes there that they need to explore. In my younger years with Deloitte, I spent a lot of time doing data wrangling type of efforts with finance and accounting type data.

And often, the secret to my team's successes during that time was not the technology. It was not our mastery of the technology. It was that we understood the data. We understood the nuances. We understood all the loopholes, the dirty secrets about it. We knew that column 9 or Field 9 in this chart of accounts meant something. And then this other one, it was column 15. And we knew how to translate that and so forth. We built our own little cheat sheet that would help us to do that. And that's the reality in corporate America right now is there's still companies out there, many companies that have those secrets or those dirty aspects of their data that is going to complicate things as they move to an AI-first mentality or trying to use AI in new ways.

Two things that we're seeing our clients or at least I'm seeing my clients start to really think about in this is one is at least from an accounting and finance perspective, your finance data model, your common information model fits in ERP. We're seeing a lot of companies really rethink that -- really rethink it to avoid those nuances of why does this division have a different chart of accounts than this, right? They're trying to get to some alignment because they see the value in that alignment and they see the value and how it will make everything just easier from an AI perspective.

And the second thing is we're seeing companies really start to invest more in what kind of a buzzword out there is a semantic layer. A semantic layer is nothing more than just logic. It's just logic. It's my cheat sheet that my team had years ago. Now it's just put into code. and allows the AI to properly have the right context to query the data to interact with the data in a consistent manner. And that's really what we want. We want to be able to interact with the data in a consistent manner similar to what we've been doing from a human perspective. Travis?

Yes. I think, Jason, what I'd add to that, and I have to say, like as we're going through this, Chelsea, I'm realizing the intentionality of the order here because typically, everyone just wants to talk use cases, use cases, use cases, let's jump to the fun stuff. I like that we're saying, well, let's talk about trusting AI first. Let's talk about data readiness first. So I think we're going in the right order here.

Jason hit on a lot of really good points here. Maybe the only thing I'll supplement that with is we've been talking about data readiness with clients for years. Like separate from AI, like maybe we're talking about it for reporting and insights and for automation long ago, maybe a decade ago, when this would come up, I would hear a lot from organizations like our data is the worst you've ever seen. We can't do any of this reporting stuff with it. I think there's been a lot of progress in that front, a lot of transformation as people have kind of gone to more mature systems on the cloud, maybe consolidated some of that data.

Still some pain around data cleanliness, but I think we're in a better spot there. But then how do you get AI to function effectively with your data? I think -- and I know you mentioned one buzzword, Jason, that's going to come up as people are exploring data readiness for AI is the semantic layer, which is really important. I think another thing that people start hearing and you're probably already starting to hear is this concept of MCP servers that stands for model context protocol, which is a weird naming for it. It doesn't tell us much. But essentially, it defines how AI is going to talk to that data, how AI asks for the data, how system responds, what actions the AI is permitted to take. I mentioned this because it's just another kind of part of the equation.

Like historically, when we were talking about data readiness, it was very like infrastructure heavy, building data lakes, ETL, everything in one place, then people can kind of query it from there. There is still some value and effectiveness in that consolidation, but the current answers to that emerging are around meaning of the data and access to the data, the semantic layer, the MCP servers. And maybe in some cases, like MCP servers are even allowing direct connection into source systems where the data currently sits. So I think just more options are emerging for how AI can interact with data in the systems and in an environment where it already exists, which I think is a lot -- goes a long way in accelerating maybe some of our -- the ways we use and deploy AI against that data.

Yes. And I think we're definitely hearing from our customers that more and more want for this broader AI ecosystem of all these AI tools like talking to each other and having like an AI stack like we all just think about your tech stack and now it's like your AI stack that's becoming a bigger and bigger request and making sure all of them are using that same trusted underlying data foundation.

So I think we talked about getting your data ready and about system implementations and AI implementations. And I think in the example I gave, when you see a problem like invoice is not getting paid on time, you might look to have a quick fix of implementing technologies. But these types of implementations generally fail because the technology is implemented before the underlying broken process is fixed. If you contrast this to when an implementation actually goes well or succeeds, you don't use the system or in this case, AI to Band-Aid a broken process. The key is to get the process right and then you implement the technology.

And kind of what we've all been saying, the exact same principle applies to AI. You don't want to use the AI to clean up your messy data, but you do need to focus on having clean, connected and governed data first. And once that foundation is solid, then you can truly let your AI run on top of that trusted data. I think the uncomfortable truth, even though like Travis has said, I think organizations over the last -- even before AI were working on cleaning up their data, most organizations still might not be quite there yet, having this data layer that AI can trust.

If you think back to the statistic I shared at the beginning of today's webinar, almost 2/3 of finance leaders are skeptical about the data they're using in their AI. So they're either deploying AI on a shaky data foundation or they're holding back because they know they're not quite yet ready. Neither of these options is a great position to be in. So before we transition to like the next section, I think we need to ask ourselves what does data readiness actually mean. And we like to break it down into 4 key components.

Your data readiness means your data is clean, it's connected, it's governed and it's audit ready. So when it's clean, your data, we consider it clean if it's complete, it's accurate and it has been validated. Your data is connected when your data isn't living in silos across disparate spreadsheets or disconnected systems. Your data is governed when there's clear ownership, access controls in place and there's an audit trial to how your data has changed or who's changing the data or how it's getting manipulated. And it's audit-ready when you can trace it back to its original source. So knowing having those definitions of what we mean by data readiness sorry, we've gotten switched to this quote slide, but we can move to our polling question.

How would you describe your organization's data quality for AI use? A. Not ready; B. Partially ready, some clean data; C. Mostly ready, a few gaps and D. Fully ready, clean, connected, governed. I always question like the fully ready is anybody actually have 100% connected or clean data? I think there's always going to be some nuances, especially when Jason was talking about global organizations and having all these chart of accounts, even with your best efforts, if you have hundreds of subsidiaries, one region is going to use or interpret an account usage maybe a little bit differently than your maybe organization in another place in the world. So something to keep in mind. I think it's always an ongoing process to get to fully ready clean data.

So now let's talk about governance, and I want to make sure that all of you here don't see governance as like a speed bump or something that slows you down. Governance is actually what makes speed possible. When you have solid governance, your teams can actually move faster because they have more confidence because they know what's allowed, what's not and how to act when something is unclear.

So Travis and Jason, you work with the organization building these governance frameworks. What does good AI governance look like in the office of the CFO? And what are the key components leaders need to have in place?

Yes. I think you mentioned one important piece, Chelsea, which is, yes, this shouldn't be a speed bump. To me, it's also not something new necessarily, right? There are new novel risks associated with AI, but largely AI governance in a finance organization isn't fundamentally different from a financial control mindset that already exists. Again, like we are focused on a lot of different areas and systems where we want to make sure the outputs are accurate, traceable, accountability is clear. So I think the instinct is already there. It just needs to be extended to a new class of tools, new capabilities.

As far as what the components are of good governance, again, probably give a handful of things that come to mind here. Of course, the first starts with what we were just talking about, the data, data governance, I think, comes before AI governance. I'm not going to say garbage in, garbage out or few, I won't go there. But ultimately, you can't govern AI outputs if you haven't governed the input. So you need to know what data the AI is touching, how current it is, who owns it, right, those types of things. And then beyond that, this seems like a simple one, but as it becomes easier maybe to build like quick agents, do your own things in AI, it becomes harder to have an inventory of where all AI is maybe being used in the organization. So I think, like, that a lot of organizations are past that point of total centralization here, like people are using the Copilots, the ChatGPT, like vendor-embedded AIs.

Leadership in a governance kind of council needs visibility into what's actually in use, not just what's formally approved by maybe bigger bang use cases. I think another critical component is human review thresholds, right? Not every AI output is going to carry the same risk. So I'm thinking of things like first draft of a Board memo is much different from an AI-generated journal entry, just for instance. So it doesn't necessarily need to be super bureaucratic there on what those thresholds are, but still very intentional. I think another piece is something, Chelsea, you touched on when we were talking about trusted AI, which is auditability of AI-assisted outputs when whoever it is, when someone comes asking, how did you get this number that answer needs to be traceable, even if AI was somewhere in the workflow.

So that comes down to logging, what the model used, what data access, what the prompt was exactly, what human reviewed it as part of that checklist. I think maybe the last one I'll mention here is probably like the concept of ongoing monitoring. I hit this before, it's worth kind of touching on again, but AI tools change, models get updated, capabilities expand, integrations deepen, like a onetime approval once this is getting rolled out is not sufficient. Governance kind of needs to embed that periodic review cadence. I think ultimately, the way I sum this up is probably the hardest part about it because, again, a lot of the pieces, I think, are familiar.

The hardest part about it is probably the speed mismatch that's happening here, like AI adoption, the sophistication of AI capabilities are moving typically faster than governance processes are designed to move. Those of us in finance and accounting tend to have strong controls culture, but maybe slow policy cycles and approving stuff, getting things set up and put into place. I think the practical answer is just building frameworks that are lightweight principles based. It can flex as tools evolve rather than trying to come up with the policy out of the gate that covers every specific tool, every specific use case because that specificity is going to become obsolete. Correct? Pretty quickly.

And I think you bring up a good point, like when I think of updating policies and procedures, like I think most of them, like you maybe look at them once a year or you even look at them maybe like once every 3 years depending on like the policy. But for like your AI policy, just because of the vast nature of AI, you might be wanting to be looking and having a committee overseeing that policy much more frequently than like once a year because of the rapid pace of change. So definitely agree.

Yes. I think you hit on like dedicated governance councils who are thinking a lot about this, owning that process, who can be very agile, and that's definitely another important component to all of this.

I think just like what I'd add from a practitioner standpoint when you're thinking about your governance framework regardless of it's AI related or related to something not in an AI process, there are 4 things that need to be covered. one, the data going in; two, the tools being used; three, the output being acted on; and four, the people doing the acting or using that output and how they're further manipulating it.

So if you can't answer like who approved this, what data was used, and who used the output, you need to improve your governance structure because that's a sign that you don't have governance in place. And there's a quote I love that I'm actually borrowing from a Workiva customer Cognizant who said, "If you can't trace it, you can't trust it. And if you can't trust it, don't feed it to AI." And that to me is really summarizes the standard you should hold yourself to when you're thinking of placing heavy reliance on output from AI to make sure you can trust the data that you're feeding it.

And I think this is also a good place to transition to kind of a build versus buy decision. And I think that's becoming really important, especially as AI is making it easier for everybody to become software engineers and develop their own tools. Because not all tools that -- all AI tools give you the level of traceability and auditability that we've been talking about like taking you back to the source system or the transparency over how AI has arrived at a conclusion. So the question on whether you should build your own AI tools or buy a purpose-built solution with AI embedded, it often gets framed as like a cost question. But for me, it's something that also needs to be looked at from a risk and controls perspective.

If you build something internally, I think you need to remember that you own the governance of that tool entirely. You own the security, the auditability and the ongoing maintenance and updates. And I think, Jason, like you alluded to that earlier, like you own the ongoing monitoring of it, especially if you're the one that built that tool internally. So I'd love to get both of your perspectives, Jason and Travis, on building versus buying AI tools.

What are some precautions? And what are you seeing from your customers? Are people building? Are they buying a mixture of both depending on use case? Would love to get your insight.

Yes, Chelsea, I think you hit on at least what my more mature clients are thinking about there. The more mature ones are really starting to think about the risk and controls angle here and the burden and the overhead that, that is going to create on something that might be built internally. This whole topic of build versus buy is actually something that I talk about probably weekly with various companies and so forth. And the reason being is what you spoke about, it's the development process is short. It's getting quicker. It's getting easier. In some cases, it's even avoiding the use of your company's technology practitioners. They're able to do it with vibe coding or something on their desktop, they're able to produce some pretty good processes and tools and solutions there.

But the part that still hurts at least from a finance and accounting perspective or the part that still hampers those type of solutions is all about the controls. It's the security model. It's how do I access the data? How do I build the audit logs in there? How do I build that traceability? And when you start going through those type of processes and start thinking about those features and functions you need to add to it, it quickly becomes apparent why there are vendor solutions out there in the marketplace that companies are using, and they're using it because there's years of research and years of development refinement on some of these features.

And that's where I think it's going to take a while for some of these AI solutions to overcome from that perspective. So I -- like I said, it's a hot topic. I'm not saying it's always a buy versus build. There's definitely cases where you can -- where it makes sense to quickly build something and build a solution and deploy it. But there's still a nice spot for vendor-supported solutions, especially in finance and accounting.

Yes. And what I'll add to that, Jason, is I agree, sometimes it's build or buy -- in my experience, sometimes it's also kind of both, right, working with clients who maybe want to build, just as an example, like an AI-enabled reporting solution in their finance org. So instead of people being bogged down in spreadsheets and digging through data, it's like, I want to go to some traditional reporting, but be able to chat with it, talk with it, right? And -- the way those come together typically behind the scenes is it's not fully custom.

It's not built from the ground up. It's also not bought -- out of the box. It's like you're buying and choosing the different components that are behind the scenes and the build work is sort of stringing them all together into a unified solution. So maybe there's a layer that's supplementing the source systems and storing some data, then there's foundational LLMs that are tuned to your data. That's another piece of it. There's reporting on top, maybe some of which is more out of the box, some custom. And so the end solution is like we bought a few different pieces and did some build work to bring them together into our end solution. So I think there's a lot of those combos out there.

I think the other thing that organizations are weighing that we talk to them about on the build versus buy front is effectiveness of the end solution, right? I don't think there's any perfect answer here, but I think of some deployments we've done, say, in like anomaly detection, looking at transactional data that's flowing into the ERP, for example, and flagging things that look off potentially. Sure, that's a capability that I think is emerging out of the box in a lot of cases, whether it's ERPs or purpose-built solutions or offering that. And that's a great way to turn something on early, maybe leverage tech you're already paying for. Maybe you can just turn it on without any incremental cost. And so you're deploying AI faster and in some cases, cheaper.

I have heard the flip side of that is maybe the effectiveness of the results, some noise in the results, which makes sense. These are models that are trying to be effective for hundreds and in most cases, thousands of different organizations data versus maybe a custom version of that, that maybe took a little bit longer to build, maybe it was a little bit more expensive to stand up, but highly tuned and trained to your data and the issues that you've had in your historical data. And so when you right out of the gate, you're getting really effective, accurate results out of the AI system. Again, not a clean answer one side or the other. I think building versus buying has pros and cons even within the same use cases, right?

I agree. I do think we're -- what I've even heard though, like with the availability of the off-the-shelf AI tools, you are seeing more and more cases of vibe coding for accounting and finance. And I think -- when I think about it, depending on the use case, it might make sense. But if it's something that's going to be audited, it really starts to get scary when you think of internal controls and ITGCs.

Like I have a former colleague who's CFO tasked him with building their own account reconciliation tool like using Claude. And to his credit, my former colleague with no coding technology background was able to build like what you call the light reconciliation tool, which if you work for a private company, I think it was like really impressive. But I think, okay, this maybe works now. But as you grow, is this something you can scale? And like what are the controls you have in place and depending on who your auditors are and like how -- like are they going to trust your reconciliations and those that information that's flowing into your reconciliation tool. So maybe you save time upfront, but in the end, the more robust third-party tool might have been a better solution, especially when you think of the cost of maintaining and updating the tool.

So moving to our third polling question, where does your organization currently stand on AI governance? A. No formal framework; B. Informal policies in place, C. Formal framework and development or D. Fully established framework with Board oversight. And we are starting to kind of get short on time. So I think we definitely want to get into the use cases because to me, that's the most exciting part and probably why most of you are here today is to hear these use cases because this is where the time savings and the quality improvements become real and tangible for the people doing the work.

So based -- I'll start with what we're seeing at Workiva and from conversations I've had with our customers. There are several financial reporting use cases for AI that are really gaining a lot of momentum. The first one that we highlight the most and that our customers see an immediate benefit from AI is that they're feeding AI, their 10-Ks and their 10-Qs and their historical earnings call transcripts, maybe and then their draft earnings scripts and press releases into AI and then they're using AI to digest all these reports and these narratives and then asking the AI to help them anticipate questions, they might get asked by their investors or analysts either during a live earnings call, Q&A or during investor callbacks.

So that's why like this earnings release review is one use case we're seeing. We're also seeing a major focus on our teams using AI to enhance or improve disclosure research and also disclosure quality. So in this case, they're leveraging AI to research a data set of pure SEC filings. So these are filings directly from EDGAR and then using this data set, they're summarizing and drafting disclosures using verifiable sources like these SEC filings. And in this instance, it's really important to make sure you have like a pure data set because we found that if you just use an LLM, they'll start pulling statements from a company's website instead of from like a true SEC disclosure.

Kind of using that same concept of a custom knowledge base or data set, Beyond disclosure drafting, AI is also being used for analysis and peer benchmarking. So accounting and finance reporting teams can benchmark either their risk factors, MD&A disclosures or a new disclosure for a new transaction against their peer filings and then use AI to identify the gaps and find opportunities to improve their own disclosure quality. So everything I just mentioned are use cases that are already happening within the financial reporting space. Beyond what's happening right now in financial reporting, we're also hearing from accounting and finance professionals about tasks that they really want AI to handle in the future. And so these couple of future use cases I'm going to talk about, they're more complex and they're not readily available yet, but they're definitely getting closer to becoming a reality.

One of the most anticipated features or use cases as an AI agent for report tie-outs. This would automate, actually, like that manual tie-out, the AI agent would check for data consistencies across financial documents and schedules. And so these manual tie-out efforts that could take hours or days, AI could cut down into a matter of minutes and the AI tool would flag either mismatches or anomalies in your tie-out. So then you would know exactly the areas to focus on those areas that are not tying out to the source or tying out internally.

And then another big request is for AI to help with the disclosure checklist. This would kind of be like that pure benchmarking tool I just talked about. But instead, you would -- instead of comparing your disclosures to peer filings, your disclosures would be compared to FASB standards and SEC rules and regulations, and it would be compared directly against the report you're drafting. So this would allow teams and AI to flag, identify potential disclosure gaps while you're drafting the report, so you could close those gaps in real time.

So these are the use cases that are generating the most excitement in the financial reporting space. Travis and Jason, when your clients come to you and say we want to use AI in our controllership or for our accounting and finance functions, what opportunities are you seeing beyond those that I've just described for financial reporting?

Yes, I'll take this one, Chelsea. The one I'm most excited about and the one that I see my clients get most excited about, it's really around what I call intelligent automation. It's really taken RPA on steroids, if I could use that analogy. We all went through the RPA phase 10 years ago, where we strung together a series of tasks based off a set of rules, and then we quickly realized the limits of that. With these AI solutions now, we're able to take these processes -- these automated processes and really take them to the final steps.

We can look at the exceptions. We can do the root cause analysis. The root cause analysis can be done by an agentic process and really start to understand from itself without having to deploy a bunch of rules how to figure out what the root cause is and even starts to suggest to the end user, the accountant what a possible fixe is. And I think those type of use cases because it's complete, it's complete, it gets to the end is really what's going to excite the controllers for the next couple of years.

Yes. I think to pile on too much of the use cases, but this is always a popular topic. I'd just add a few more in there, at least what I'm seeing, hearing or somewhat kind of touched on, yes, like I think there's a lot of effectiveness in pointing AI at large volumes of data and transactions that are sort of happening behind the scenes and usually sneak up on the teams we work with at month end when we're trying to close the books, like I gave that GL transaction example earlier, that same type of capability looking for auditees in anything from accounts payable or intercompany transactions, even some of the data you're looking at it in month-end reporting, like that's very popular because that sort of pays off in crunch time when teams are trying to close the books.

I think a natural entry point for AI is, of course, anything forecasting, predictive related. So we have some FP&A teams maybe building -- and these don't have to be like big bang deployments either, building maybe a challenger model, a quick forecasting model that they're comparing to their existing process. Are we more accurate, less accurate? I've worked directly with clients and built those type of models to come up with accrual estimates. I think that's very popular.

To me, the one that's near and dear to my heart, the area that is anything internal management reporting like insights related. I've worked with clients historically when we're trying to automate some of this stuff, and you can just automate a lot of the upfront steps like wrangling the data, pulling it all together, pulling it up to the surface to give to teams, but then they're kind of complaining like, well, that was all good, but I still have to do the hunting and pecking. I have to write the commentary, explain what's going on.

Using Gen AI in large language models and pointing it at large amounts of data, results of financial analysis and summarizing what's going on and having teams and people be able to ask questions of that back and forth, constantly working with talking to finance and accounting teams about that capability where we could stand it up. I think there's huge potential in it, not only to save time, but to make finance teams more strategic going forward as well.

I agree. I think we could have spent like a lot more time on use cases. So hopefully, we'll have a follow-up webinar just on use cases. until then, I'll move to our fourth and final polling question. This is me [indiscernible], are you interested in a demo of Workiva AI? And given that we're running up against time, while you answered that, I will go to one final topic.

I want to spend a few minutes on something that is becoming an increased focus for everybody, and that's measuring whether any of these AI tools are actually providing benefits to team or organizations. If I flip to the next slide, this is from our Workiva benchmark survey, and it really just summarizes the top ways executives are measuring the ROI of AI -- and what they're really looking at are workforce optimization and productivity, savings from error detection and reduced fines, revenue from improved products and improved customer satisfaction.

The one takeaway here is that C-level executives are indexing higher on customer satisfaction and revenue impact, while senior directors and managers are most focused on error reduction and productivity gains on their teams.

So if you have any final questions, please submit them now through our Q&A engagement tool. As mentioned at the beginning of the webinar, we capture all questions. And if your question is not addressed during the webinar, it will be addressed later via e-mail. Before we close, we have about a minute left. I want to ask each of you if someone in the audience today walks away with just one thing from this conversation, what would you want that to be?

Maybe I'll go first on this one. Mine would be probably a call to action. It's easy to sort of be handcuffed a bit by all the precursors you feel like you need in place to AI. Like how am I going to pay for this? Does it pay for itself? What are all the governance pieces I need to have in place? All very important pieces, but I think the -- or pioneering organizations are taking kind of this no regrets approach, like these capabilities are here. This is going to be the way finance and accounting transforms over time.

We need to get started now. Otherwise, our competitors are going to get started. They're going to be the ones moving faster, getting better insights. And so I think there are very low barrier to entry areas. Hopefully, we talked about some to jump in and get started and start to shape this stuff up along the way. So I would instill, maybe, that no regrets, action-oriented approach on the AI journey. But how about you, Jason?

Yes. I would say the theoretical philosophical ideas that we had 20 years ago about like a touchless close, continuous auditing, a continuous close, whatever the concept was, we're really darn close to it now. We're -- the solutions are getting there. We're able to -- we're seeing companies get closer and closer to those concepts. And I think that's exciting. So we should all be excited about where this is all going and the opportunity it provides for all of our organizations.

No, I think that's great. And I think like you said, Travis, like identifying those like kind of maybe low-risk use cases and just jumping in, especially just for experimental purposes, just because then it kind of can help you open up a whole other level of ideas to be considered.

So one final slide before we officially close. As a reminder, we have some additional resources on this topic. Links to these resources are included in the related content section of the webinar console.

And with that, thank you, Travis. Thank you, Jason. Thanks for hanging out. I know we went a little bit over, and thank you to all of you for attending today.

Hello. My name is Brett Miller. I'm the Co-Head of Software Investment Banking at J.P. Morgan. Today, it's my great pleasure to lead a discussion with Julie Iskow, the CEO of Workiva.

Workiva provides cloud software that helps enterprises collaboratively prepare, manage, audit and file complex financial, regulatory and sustainability reports with connected data and workflow automation. Before joining Workiva in 2019, Julie held various technology and product leadership roles at Medidata, HealthEquity, WageWorks and she took over the CEO role of Workiva in 2023. So Julie, thanks for being here.

A pleasure to be here. Thanks for having me.

So to start off, you have over 6,600 customers, including over 85% of the Fortune 1000. What is it about Workiva that resonates with the office of the CFO and particularly with these larger, more complex organizations?

Well, you described what we do in the office of the CFO. We have a number of capabilities, 2 dozen solutions that we sell within the office of the CFO. And when you are in the office of the CFO, your data needs to be accurate. You're sending it to investors and to regulators and to boards and your data needs to be consistent -- data consistency, data accuracy, data integrity, but you also need to explain the data to auditors and to investors. And so there needs to be data traceability. You need to have data lineage. You need to know where it came from, what changes happened to it. At any point at any time, you need to be able to count on that data being accurate, but also explain the lineage of that data. And that is something that resonates strongly in the office of the CFO. You need confidence in your data period. End of the story. And that is a lot of what resonates in the office of the CFO.

There's also, of course, as you rambled off our offerings, I mean, these are things -- this is what the CFO office does, right? And incredibly important. It is not a nice to have. It's kind of mission-critical infrastructure. So we are in the office of the CFO. We have a platform. That's another area of where we resonate as well. CFOs and CIOs, their counterparts are looking for platforms where you can leverage data across the platform, one experience for your users, the usual platform consolidation reasons that buyers are interested in it. So for a number of reasons, we resonate with the buyers in the office of the CFO.

And the office of the CFO is a category that I think of as having a ton of companies and products out there. I think you've talked about customers standardizing on Workiva and consolidating all those point solutions. What is driving that decision? And what is driving it now?

Well, you know a little bit about the reporting landscape. The complexity continues to increase. It's not straightforward anymore. It's not one report here and one report there. There's integrated reporting, getting a more holistic view of your business when you look at your financial factors and your nonfinancial factors. And then, of course, you want auditability and controls around them. So they all tie together nicely.

And again, CIOs and CFOs, executives are looking for a platform because of the benefits of that platform. So it reduces the complexity of the reporting of all the solutions that we provide. You want to do it on one platform. The data is pulled together, a single source of truth, access. And in the world of AI right now, you want that data together to be able to apply that AI and you want it in a secure, controlled, audit-ready environment, again, to have confidence in that data rather than have them in point solutions. So for a whole host of reasons, the platform is having its time right now.

Right. And I think you bear that out in the numbers. And so, while people think a lot about churn always, I think, a particular focus right now you continue to generate 97% plus gross revenue retention quarter after quarter and 110% plus net revenue retention. How have you so consistently retained and upsold those customers? And what's driving that going forward?

I mean, as we -- we'll be at $1 billion this year.

Congrats on that, by the way. It's a big milestone.

Thank you. Just one small financial milestone on the way to bringing a lot of value to our customers, but an exciting one for us. But we've continued to expand our portfolio. We've invested in TAM. We have a lot of offerings for our customers. So just having that portfolio is one answer to your question, but the other is, as we've come to the $1 billion, we've just improved our execution. We focused on account expansion, larger deals bringing more value to the customer. So we just continue to do that.

It's a land-and-expand motion. And even now where we're landing with more solutions, we have plenty of offerings around the portfolio and the platform to bring more value to our customers. So just part of the strategy and the motion.

And it's notable at a time when these metrics have, for most software companies, just slowly degraded over the last several years, the consistency of Workiva has been, I think, one of the hallmarks of it. So it's impressive. It became impressive, you generated 21% subscription revenue growth this last quarter and which you've done pretty consistently. Talk about how you're able to maintain that growth as you scale the business and maintain those high growth rates. And again, 20% plus growth looking pretty good in public software world these days. And what segments within the business because there are many of them like have the most momentum?

So I mean, a multipronged answer, of course, and it is our offerings and the TAM expansion. We, again, now have the so many solutions to offer our customers. It's also geography. We have moved into areas outside of the U.S., and we've invested there, so plenty of opportunity. And while we have a significant base in the Fortune 2000 and Fortune 100, 500 and so forth, S&P 89% of the S&P 500 here. In the U.S., we also have -- we also have begun getting more new logos and wins outside the U.S. and Europe is a strong example of that. And that is a big area of growth for us. So we continue to expand there.

But again, it's our own execution, whether it's geography, whether it's a number of solutions and TAM expansion for us and our investment there. It's also just execution. We've elevated our sales organization. They're better. We have -- our partner relationships are stronger. We go to market with our partners. And it's -- that leads to a number of multi-solution deals as well. We're better at landing with -- so we just continue to expand in all areas of the business, just getting disciplined and expanding TAM, but also geographically.

Getting better at all the things and all the places...

Getting better at all the things. Well said.

And while you're growing, you've also seen margins inflect quite dramatically in the last year. So you reported 18% non-GAAP operating margin in Q1. That's up 1,600 basis points year-over-year. What's changed? And where is that leverage coming from?

Probably the same answer that I just gave you for the growth is just more discipline, more intention, more rigor, just focus on productivity. Sure, AI has something to do with it, but it really is the maturity of a company. I mean you can't operate so inefficiently at $1 billion as you do on the way up to the $1 billion. And we've just begun being really thoughtful about our operating rigor and discipline, and it's paying off.

And I've talked a lot in prior -- whether our Investor Day or earnings around actions we're taking across the company, specifically, of course, in sales and marketing, but what we're doing to really improve productivity and those are paying off. And it wasn't just the one quarter. It's been a climb there on getting more rigor and more operating leverage and expanding margins.

Well, I mean we just talked about maintaining the high growth, and we've talked about increasing the profitability. So the natural question would be, as you think about the forward, how do you balance the two and the trade-offs with that?

We really, to date, haven't looked at it as a balance. Productivity gives us more fuels for innovation and fuels our growth. And we've been getting better on both -- as you can see, our growth continues at a strong rate, but also we've been expanding the margins. So the more productive we are, the more we have -- going to the margin expansion, but also we have -- we're able to invest in innovation and in our sales and go-to-market organization. So we've had a lot of opportunity to improve the way we work and focus on productivity, and that's freed up funds and to enable us to grow. So it hasn't been a trade-off thus far for us and continues to not be a trade-off at this point.

So let's talk about AI, which has been the theme of this conference. You've said that Workiva is built for this era. I love that. So what do you mean by that? And what makes you believe that Workiva can thrive in this world of AI.

So first question started off and what is the advantage of the Workiva moat and it's how -- why do we resonate. And it really is giving confidence in the data and that platform of trust, the sacred place for the CFO where they know that every data point at any point in time and anywhere in the narrative is accurate and can be trusted and defensible. I think in the era of AI, where you have just so much more data, unverified data, so many more unverified data sources, AI everywhere, you do want a place.

You do want a platform where you know when you apply AI or you're getting your numbers that are, again, going to investors and regulators and boards, you want to know that that data is accurate. You want to be able to explain it, defend it, understand where it came from, from source system and what's happened to it all along the way until the end of that report. I mean that is what we are made for, and that's been something we have built over the last decade, 1.5 decades. That's what -- that's Workiva's core. And we're not leaving it behind in this era. We're leaning into it as we build our AI products. The more AI, the more data, the more critical it is for CFOs and CFO office to have trust in the data that they are using when they apply AI and then report to the Street.

So if I hear you right, that puts a little less risk around being able to trust some [ vibe-coded ] version of Workiva, but you also want to be integrating AI into your products. So let's talk a little bit about where is AI in your products today? What are the top use cases for AI and what's that value that customers are getting from it?

Sure. I mean a few years ago, when Generative AI came out and the large language models came out, we, of course, were equipped to ensure that they were embedded into the platform. They're in every workflow across every solution, solution category, and they're available to our customers to leverage whether it's drafting report or streamlining work. So we've been doing that for a couple of years. But then we've moved on to -- in specific areas and use cases, we've come up with more advanced capabilities for our customers. And we have those in the various solution areas. So we've noticed an uptick in that. We have over 1/3 of the customer base has enabled it for their use. They need to sign a waiver and so forth and say that they are going to use it and be okay with it and then activate it and leverage it. So we are seeing an uptick, and they're using it in the more advanced tiers of our good, better, best pricing, which no doubt you will ask about.

We'll get there. Let's talk about how you're monetizing AI today. And just as importantly, how do you see that changing? Because many companies are just embedding it as a way to drive retention and ARPU, but aren't specifically monetizing it. So how are you thinking about that journey?

So we -- as I mentioned, we have it embedded in the platform available for everyone to use, and we aren't charging for it there. But in this good, better, best, we have the standard -- the essential and the standard and the advanced offerings for some of our solutions. And in the advanced offering we have, for example, for SEC, we have SEC intelligence package. And that would include some of our more advanced capabilities that customers can use. And we put it in that premium offering, advanced tier with a number of other capabilities, whether it's financial statement automation or some design features or translation capabilities and things like that.

So we've embedded it in our advanced offerings, and we are seeing an uptick there of both purchase and usage. So today, that's how we're monetizing it. And we're watching the uptick of it and the usage of it, and we're learning what customers are using and what we will be building next for them and so forth.

Okay. Speaking of what you'll be building next. Let's talk about an agentic future. Like Workiva is in the midst of a fundamental transformation with AI, those are your words. So talk about how you're thinking about an increasingly agentic future for Workiva.

Sure. I mean every classic SaaS company that wants to win in the era of AI is going to have to do transformation. And it's -- sure, it's transformation around the company, working differently and so forth. But it's primarily focused right now on the product and the technology organization where your product is front and center, of course. And we have these classic platforms that were not built for an agentic future. And for us, our platform was very document-centric, workflow-centric, template-centric. And what it needs to be is data-centric in today's world. And what that means is we have to have not just store all the data and store all our documents, we have to be able to understand them and the context around them. And these kinds of things are what -- when you transform the platform, you can then have AI access that data in a way in which you can have these agents and AI products truly agentic orchestration as opposed to AI assistance.

And that's really the transformation we've been on for the last 1.5 years and continue to be on. So we are transforming the platform so that we can build true AI products, AI native products as opposed to AI-powered, AI-assisted those -- so we are making that transition with agents doing work. And we see a future where our customers will be able to go in when and where they want to bring review and check and governance or a future where they can have the agents orchestrate everything and have it in product, right? We want the human to be able to go in and do the work they want to do, have put their judgment where they want it, but we also want to just have orchestrated agents to be able to do.

Different levels of automation depending on your...

That's right. And we always want to give our customers the ability to see what's going on. But we also want to give the ability to have all the work done not by them. And that is where we're going for our suite of products and our capability. But it does require this platform transformation. Again, this data-centric and the ability to -- you need the data models and you need the semantic layer. And it's very standard for those companies that are going to make this transition into the agentive future, and we are well on our way and leveraging the transformation already of the platform capabilities.

One, because the -- well, you talked about the platform capabilities, but I assume there's something about Workiva is probably architecture is the way it's built that enables you to seize upon this moment. Is that right?

It is true. While we're transforming the platform to become data-centric to be able to build AI products off of it, we are also bringing with us those things that make Workiva Workiva, which is that data accuracy, integrity and consistency and that traceability, defensibility and the data lineage and the linking and so forth so that you bring what is important for you, that core, and we'll continue to evolve our current offerings, but we're bringing all to the AI future, but we're bringing all that with us. So we have the best of both worlds. What made us successful is what will keep us successful in the future, our moat, but we are, of course, transforming the platform so we can be -- that we can be strong in the AI world as well with true AI-native offerings.

So on the productivity side, lots of interesting anecdotes from companies about how they're using AI to increase productivity. Like what about Workiva? What are some interesting proof points of how it's working?

Of course, we're using it to increase productivity internally. We have -- our employees are leveraging it daily. We've made it available to everyone. They're getting better and better in using it more. But we feel the real unlock for productivity with AI is using it cross teams, cross-functionally within the organization, changing workflows and doing things differently. And this is where we see it really bringing productivity gains. So of course, we're doing it in R&D.

I mean that is where you're getting a lot of leverage with the models and Claude and so forth and Cursor, et cetera. So we're using it there. We're working differently, but engineers are, of course, leveraging it. But we're doing it in sales. We're doing it, of course, in our CFO office and marketing and legal, every function around the company is leaning in to leverage it to get better outcomes, to change the way they work, to increase their productivity. I mean, table stakes now in well-run companies.

I think so, yes. You've noted that the AI compute is currently sourced through broader infrastructure contracts without any near-term gross margin pressure. This conference, I've heard some interesting answers around impact of particularly on the gross margin line in the future as cost change -- token costs will change. How do you think about AI costs as the usage scales? And how do you avoid surprises on your margins?

We avoid surprises by being on top of things. That's the answer for everything across the company. We're tightly managing our use. We don't use the most expensive models for everything we do. I mean the general population of employees at Workiva is using different models than a coder might use for coding productivity. You don't need those models to get the lift and productivity enhancements. So we're making sure we're using the right models in the right places across the organization. We're watching our use of it.

As you mentioned, we purchased them through the infrastructure contracts. So we've been able to manage it, but we'll continue to monitor it. It's just not been an issue for us to date. But again, we'll continue to watch as we use more and more and as customers start leveraging more of what we're offering. And in the top pricing tiers and customers are using it, we're able to charge more in those pricing tiers so we can compensate for the use of the tokens. And some of our metrics are even usage-based and our value metrics and usage-based metrics, we can charge for when we see the usage going up.

On the competitive front, if other big platform suites or AI native entrants, if they were to try to automate kind of the CFO workflow. Where is Workiva the most defensible? Like you've talked a little bit about moats. Let's just -- in your view, what are the moats and what are the strongest ones?

Sure. And I think the one we talked about a little earlier is the strongest moat. I mean, are you going to give your -- you're an enterprise software company, are you going to use the start-up's agents versus Workiva's trusted data platform and to submit to regulators and investors. And it's that. And we have our customers that have been with us have their data and their documents and 10-Qs and Ks and multi-entity reports, they're all in our platform, which you can leverage to do AI. And you know that they are, again, accurate. You have the right versions. So we have all that data in the platform that we can leverage, but it truly is that you can trace every data point and our narrative back to source.

And that matters whereas a start-up will not have that. So we feel very confident in that moat. We have advantages, of course, in other ways, too, where we've been doing regulatory reporting for, again, well over a decade. So we have the expertise when a regulation changes, the day it becomes law, our customers are there, ready to be compliant. I mean there are a lot of advantages that we have built up with our trusted customer base over the last 15-plus years. So we have a lot of advantages just in being who we are and the footprint that we have and the trust that we've built. So there is that. But truly, it is we have the platform that CFOs can count on and have confidence in their data, and you don't get that from some of your other start-ups.

And the other thing is there is a perception that we're legacy, and we're just going to lean on where we are today and who we are today. And that's not true. Over the course of the last 1.5 decades, we've also built up a strong innovation arm, and we continue to build new solutions and expand the TAM and invest in that. So our innovation arm is alive and well, and we can innovate too, and we operate like a start-up within Workiva in a number of areas in the business. So we are not just standing still and resting on our laurels and our moat. We're also continuing to innovate and have an ability to quickly innovate and even out-innovate some of the start-ups with our moat as well. So a lot of advantages in already being a trusted enterprise software company that can innovate quickly.

Yes. Love to hear that. Let's talk about go-to-market. So you've made a lot of changes in the go-to-market organization. Can you talk about that area of the business, how that's evolved over the last year or 2? And then how you're measuring success going forward?

Sure. We have brought in a couple of new leaders over the past year. And one of them was Michael Pinto, our new Chief Revenue Officer. And Michael came to us with a track record at AWS, 6, 7 years there, scaling his areas of business and region from a few hundred million to several billion. So he has been through building that go-to-market machine and building that muscle and just a different level of play. So we brought him in there. He's also been at Databricks for a couple of years, so he knows the data ecosystem. And that's truly what Workiva is becoming, right? We're the platform that manages the data that matters most in the office of the CFO. And we are having those conversations with our customers around the data ecosystem, how our platform plays in and connects to the other applications in the architecture for the office of the CIO and CFO.

So he brings that as well, very well networked in that ecosystem. So with that, he has come into Workiva and just taken a different perspective, one of scale. He's seen the movie before. He scaled through the $1 billion -- multiple billion dollars, and he understands what it takes to build that machine. So he didn't come in and pivot us, but what he did do is come in and refine the strategy that we had and our ability to operate more effectively and efficiently. So we're bringing different levels of seller or a different profile, elevating the profile. We're selling our platform now, not 1 or 2 solutions and transactional sale. It really is that platform play that is resonating as we spoke about with the office of the CFO. So he's -- that's part of it. They -- these sellers know how to work with partners. They embrace the partner rather than look at it as friction, and we do selling together.

And of course, productivity and you asked about the metrics. Of course, we look at efficiency and productivity and win rates and conversions and pipeline and all the standard metrics that you would want to be held accountable for as a Chief Revenue Officer. So he is doing that. But just it's elevating the level of play in our organization, and we're moving there. We had a very expensive sales model over the years that we had carried with us, and we had started making some changes in that, and he is very much in line with that. So he looked into our strategy to get to a more productive and effective sales organization, and he's coming in and helping us make that transition and bringing a lot and adding a lot at the same time.

Should we expect then sales and marketing as a percentage of revenue to then be coming down over time as those channels are...

We've seen our operating model. And yes, we put some targets out there, and we believe very strongly we will meet those. And it's not necessarily the upside there, too. Lots to be improved upon in our sales and marketing. But having said that, where there is opportunity as we expand in TAM, we will be putting resources where they can most effectively help us grow. That is -- that is where we want to put our effort, and we'll put our sales team members where we see the most opportunity and where we can continue to grow and allocate them in the right places.

And within the growth algorithm, obviously, very fast growth overall, but particularly fast growth on your large ACV customers. So -- and I'm sure this is all related to kind of your last couple of answers, but what's sort of driving the success with those biggest accounts?

Again, we have become much more effective at multi-solution selling and account expansion and that platform play is truly resonating. When you buy 1, 2, a few of our solutions, you realize the value and you don't want to go to another point solution. You would rather put your data altogether in our trusted platform understanding how it works and again, the confidence in the data. So that play is really working. So it is the value we bring to the customer. We continue to roll out more solutions and have the ability to bring value. But it is also, to your point, it is also just our execution getting better and stronger. And that's part of our strategy is larger accounts, more solutions, more value. We're just going to continue to do that. It's a land-and-expand play in the truest sense of the word and particularly in our larger accounts. And yes, Michael Pinto is really focused on those accounts where we can bring more value and expand significantly across the globe.

In addition to Michael and his team, you've also talked about how partners are playing, I think, an increasingly large role in your large deals. So tell us about the partner strategy.

Sure. I mean we all know when we're talking about these Big 4 and the next tier, they're everywhere we want to be in financial and digital transformation. The company pays them a lot of money to listen to them and trust them. And when they say a vendor should be in the financial transformation plan and strategy, they listen. So we have a good opportunity. They provide the services, high-value, high-margin services. They are commercially successful when they work with Workiva. We provide the technology, beautiful play. We go to market together and offer the customer more value than each one of us individually.

So both sides know that. So we have developed strong plays with our partners, and we provide a lot of value to the customer. When we talk about how are we successful in expanding accounts in some of these larger customers, partners is a significant part of that. So we continue to do that. And some of the impetuses might be an ERP transformation, and we want to be in those playbooks with those partners when the ERP transformation happens. It's a good time to reevaluate your disclosure and reporting or maybe consolidating on your ERPs, and we can come in globally, you may have a lot of them.

We come in and we can help with that. So partnering with our Big 4 and next tier down is a strategy, part of our strategy as well and an important mechanism for us in terms of our growth and our account expansion.

With apologies for the delay, I like you wanted to talk about pricing since the outset. So you were an early adopter of value-based pricing, not seat-based, I repeat, not seat-based. As you evolve that pricing structure and good, better, best in those tiers, what's been the customer response? And what kind of impact do you expect this to see in revenue?

Sure. I mean we've seen pretty good response with our good, better, best pricing. We started in our SEC reporting and intelligent SEC and financial reporting. And we have seen lifts of 20% plus in this motion. And I will say we're just getting started, but we've seen good traction. We're very enthusiastic about it, and we'll roll it out to other solutions as well. But it's one vector of growth for us. It's not the only. Of course, we have all those solutions, but it's definitely a mechanism for us to gain more value when there's value to be gained.

And I'll say one of the reasons we started doing this good, better, best pricing is because we found ourselves discounting our offerings for customers that weren't quite ready, whether they were more on the SMB side or just not as advanced and mature. And so instead of discounting now, we're giving them a solution more fit for where they are, and then we can go back and extract more value -- provide more value to them and extract more value. And it's been working well. We've been going back at renewal time and even when we're doing new contracts for new solutions or mid-cycle.

And we're going back to our customers that have been with us for over 10 years and getting more value as they get more value with these good, better, best pricing models and the premium tiers are resonating with the customers. And we are putting our AI capabilities in as we talked. So we are seeing good traction. But I emphasize again, it's just one mechanism for additional value.

Although you're certainly out in front of trends.

I mean thank you for highlighting that we are not seat-based, and we have not been seat-based for the last 6 or 7 years. It is based on the value we provide and in some cases, yes, consumption-based like our data integration capabilities.

So switching gears. The SEC has put out a proposal that would allow companies to choose semi-annual reporting instead of quarterly. If that were to go through, what sort of impact would that have on your business? And what is your view generally of that proposal?

Sure. And thank you for using the word proposal because that is what it is. It's a proposal. And what it is, is it gives companies the option, the flexibility to report twice a year or quarterly as they have been doing. So from the customers that we've talked to, they still want the rigor of the report. They have investors who want data. They want to keep the rigor and the discipline of that action, right, that momentum. And as I said, the CFO office wants confidence in the data. They want data accuracy and integrity and defensibility all year long throughout the quarter and throughout the year. It isn't CFOs going in just once a quarter anymore and reporting or once a year or in this case, maybe twice. It's all year long. They want to go in and be proactive solving problems, becoming more strategic. That's what the job of the CFO is.

So they don't just do a report every quarter. That's not what Workiva's value proposition is. It is exactly what we've been talking about the thread here. They want to be -- have confidence in the data. They need to have auditors go in. It needs to be audit ready. They need to explain it, trace it back to source system, explain any changes and defend it. Regardless of the number of reports, we don't charge by number of reports. That's not the value. The report is not the -- necessarily the report itself is not the high energy part of this or the high-value part. It's what we do in the platform with -- for our customers that really is the value of Workiva.

So again, we don't charge per report. So for us, it's a nonevent. But again, it is an option. It is a choice. And from the conversations we've had with our customers, they want to continue that rigor of the quarterly reporting.

Got it. Well, we are out of time. Thank you so much for being here and for all the insights.

Thank you. Appreciate it. Thank you all for attending.

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.

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 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 the 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. Q1 2026 delivered another quarter of continued demand for our trusted platform. Our 2 dozen purpose-built solutions are continuing to resonate with our customers. We beat the high end of our revenue guidance with 21% growth in subscription revenue and 20% growth in total revenue. We also continued to deliver on profitable growth. With Q1 2026 non-GAAP operating margin greater than 18%. This was a 240 basis point beat on the high end of our guide and it was a 1,600 basis point improvement compared to Q1 of last year.

Our Q1 momentum reflects broad-based durable demand across our platform. In a market where organizations must navigate evolving regulations and complex data ecosystems, the office of the CFO relies on Workiva as their platform of trust. We provide the accuracy, accountability and assurance that they need, ensuring that every number and every narrative is traceable with full lineage.

Customers are increasingly standardizing on the Workiva platform. This is showcased by the continued strength in our large contract cohorts. In Q1, the number of contracts with an annual value of over $300,000 increased 38% and contracts valued over $500,000 increased 39%, all compared to Q1 of 2025. The growth in each of these categories was driven by both additional solution sales within our existing customer base and the landing of larger new logos.

Let's look at a few specific examples from Q1 that demonstrate how our platform is winning in the market. We're helping our customers solve their most complex data and reporting challenges with solutions across multiple categories. First, a European networking and communications company landed as a new platform customer with a mid-6-figure deal for 3 solutions. The deal included our ESEF, SEC and sustainability offerings.

As a dual-listed company on the NASDAQ in both the U.S. and Europe, this company invested in the Workiva platform to replace their point solutions and manual processes. The investment in the Workiva platform will transform their financial reporting regulatory filings and collaboration activities, ensuring compliance with ESEF, SEC and sustainability standards. The deal was a [indiscernible] and will be delivered by a Big-Four partner.

Second, a large European financial services provider landed as a new customer with a mid-6-figure deal for 4 solutions. The solutions included ESEF reporting, multi-entity reporting and bank regulatory reporting as well as sustainability. The institution is in the process of an ERP transformation and is required to comply with the CSRD, Workiva was the only platform evaluated to address the specifics of financial sustainability and bank regulatory reporting in a single platform. The deal was sourced and will be delivered by a Big-Four firm.

Third, a multinational bank and financial services company signed a mid-6-figure expansion deal for 3 solutions, including multi-entity reporting, policy management and Pillar 3. One of the drivers of this deal was the evolving requirements of Pillar 3 reporting. Pillar 3 is the basal regulatory framework requiring international banks to publicly disclose detailed information on their risk exposure, their capital adequacy and their risk management practices to enhance market discipline.

With the recent changes to Pillar 3, disclosures are no longer static reports. They now need to be delivered as regulatory data sets. This company became a new customer in Q3 of 2025, making a 3 solution purchase on their initial deal. This Q1 expansion was a co-sell and will be delivered by a Big 4 partner.

I'll move on now to financial reporting. Demand for these solutions continues to build as companies modernize increasingly complex global operating models and move away from legacy manual workflows. Now as companies transform these processes, they're also keeping a close eye on the evolving regulatory landscape.

I want to briefly address a financial reporting topic that received a lot of attention this quarter. It's the SEC's consideration of a proposal that would let companies opt for semiannual rather than quarterly reporting. Any change of this kind would introduce new decisions for both issuers and investors. Most companies we've spoken to expect to continue reporting quarterly, reflecting ongoing investor and stakeholder demand for timely decision useful financial information.

As far as any potential impact to Workiva, a change in filing cadence would not alter our value proposition. The value of our platform extends well beyond the filing itself. For the office of the CFO, Workiva provides a trusted data foundation that helps teams remain report ready and audit ready at any point in any quarter. CFO need continuous access to accurate, traceable and defensible information to serve internal stakeholders, lenders, business partners, regulators and investors.

Simply put, Workiva's value is not dictated by how often a company files. It's tied to giving CFOs absolute confidence in their data every day of the quarter. It's this foundation of trust that enables us to win both new logos and account expansion deals across our financial reporting portfolio.

Let me highlight a few of our Q1 wins in this area. First, a global delivery and logistics leader purchased a mid-6-figure account expansion deal for multi-entity reporting. The business driver of this platform expansion for this 14-year loyal customer is to transform the processes of reporting across the company's more than 250 legal entities. This was a competitive deal to replace a legacy software provider. The deal was a co-sell and will be delivered by a Big 4 partner.

Second, a U.K.-based AI-native cybersecurity company landed as a new customer with a multi 6-figure deal for 3 solutions, private company financial reporting, multi-entity reporting and management reporting. The primary driver for this purchase was enhancing their internal financial reporting processes and displacing legacy manual workflows. The deal underscores our growing traction among the world's most technologically sophisticated software and cybersecurity companies. The deal was sourced and will be delivered by a Big 4 partner.

Third, a European-based global health care leader signed a mid-6-figure account expansion deal for multi-entity reporting. This 5-year loyal SEC customer had just invested in a multi 6-figure DRC deal back in Q4 of 2025. The primary driver for this multi-entity reporting investment with a financial transformation driven by a large-scale SAP S/4HANA initiative. As part of this larger project, Workiva will displace a legacy on-prem tax and reporting solution.

As the customer transforms processes across the organization, they will deploy Workiva to support the global rollout of their multi-entity reporting. This deal was a co-sell and will be implemented by a Big 4 partner. We also continue to see strong momentum with our governance risk and compliance solutions, as companies seek to replace legacy systems and consolidate risk management on a single unified platform.

Let me share a few Q1 GRC deal highlights. First, one of the largest financial services institutions in the U.S. expanded their investment in Workiva with a mid-6-figure deal for controls management. This new investment will support 5 key GRC use cases, internal controls over financial reporting, finance data governance controls, business process controls, sustainability controls and resolution and recovery plan controls. The primary drivers for this engagement were changes to banking regulations and a strategic initiative to better manage risk. This was a competitive win that displaced multiple incumbent solutions. The deal was a co-sell and will be implemented by a regional advisory firm.

Second, a recently prominent community bank in the United States landed as a new customer with a mid 6-figure deal for 5 solutions. The solutions included audit management, policies management, controls management, compliance management and SEC reporting. The primary driver for this engagement was a GRC transformation project to standardize GRC processes on a single platform. This was a highly competitive win over a crowded field of legacy point solutions. The deal was sourced and will be implemented by a regional advisory firm.

Third, we closed a multi-6-figure account expansion deal with the U.S. state government, already a financial reporting customer, this organization expanded its footprint by adding 4 GRC solutions, controls, operational risk, policies and procedures and compliance. The primary driver for this expansion was the need to optimize their current risk and compliance processes. Leveraging Workiva's platform and technology is enabling them to accomplish more with the leaner team. This deal was a co-sell and will be delivered by a regional partner.

Moving now to sustainability. We're seeing this market shift from a voluntary practice to a more formal business requirement. Regulations are taking shape across major markets. Deadlines are firming up and companies are building out the necessary processes to meet them. The bar for these disclosures is rising as well, regulators and investors are increasingly expecting the same level of rigor that's applied to financial data applied to nonfinancial or sustainability data. And this is pushing accountability into the office of the CFO.

To meet these high stakes, customers are increasingly moving away from isolated point solutions and choosing unified platforms. Workiva provides the single system of record that links financial and nonfinancial data together. And this gives CFOs the full lineage traceability and audit readiness that's required for them to stand behind their disclosures with confidence.

Let me highlight a few sustainability deals from Q1. First, one of the world's largest chemical companies signed a multi 6-figure account expansion deal adding our sustainability advanced and CSRD solutions to their existing platform relationship. Their existing solutions included SEC reporting, audit management and multi-entity reporting. The primary driver for this expansion was the need to comply with the emerging CSRD requirements. This was a competitive win over a point solution and reflects the growing need for integrated sustainability management at multinational organizations as they navigate the evolving European regulatory landscape. The deal was a cool and will be implemented by a Big 4 partner.

Second, one of the world's leading global biotech companies signed a multi 6-figure account expansion deal, upgrading to sustainability advanced and adding sustainability for multi-entity access and the CSRD. The primary driver of this expansion was the need to comply with emerging CSRD requirements. The customer will leverage Workiva to manage their corporate and entity-level sustainability disclosure across multiple international frameworks, including the Australian sustainability reporting standards. The deal was a co-sell and will be implemented by a Global Systems Integrator.

To conclude our Solutions section, let's briefly touch on the capital markets landscape. We were encouraged to see the IPO market reaccelerate in Q1. We supported several IPOs in the quarter and saw consistent demand for our capital market solution as more companies prepare to go public. We believe there is a healthy backlog of companies waiting for the right conditions, and we're ready to support them on our platform through their private to public journey and well beyond.

A compelling example is one of the most widely watched potential debuts in market history, a company whose valuation, distinct business lines and cultural footprint make it unlike anything the IPO market has ever seen. This company more than doubled its spend with us with a mid 6-figure expansion deal for multiple solutions, including capital markets, SEC advanced, multi-entity reporting and controls management. The company signed on as a new customer more than a year ago with their initial investment in the Workiva platform.

As part of this deal, this company plans to replace multiple point solutions as it transforms and standardizes its financial reporting and financial controls processes on the Workiva platform. This deal highlights Workiva's unmatched value proposition for companies on a private to public journey, and it underscores our platform's ability to serve some of the world's most complex organizations. The deal was a co-sell and will be delivered by a Big 4 partner.

I'll turn now to product innovation. Workiva is in the midst of a fundamental transformation with AI, transformation of our platform, our solutions and what we deliver to the market. Our AI strategy is outcome-driven and customer-focused, deploy AI natively across mission-critical processes that define the office of the CFO, backed by purpose-built solutions and deep domain expertise that turn AI capability into measurable results.

Because in the office of the CFO, the tolerance for error is 0. And as reliance on AI increases and there's more unverified data and there are more unverified data sources, trust and data becomes even more critical. And our customers, CFOs, finance leaders and audit and risk teams need to be audit-ready. And they need to be able to explain and defend any number at any point at any time. This is why our platform remains differentiated. This is our core. This is our moat. This is our advantage.

To solidify and build on this advantage, we're accelerating our innovation with AI across the platform. Here's what we've recently delivered to turn that advantage into customer value. First, for GRC, we launched the Workiva flowchart visualizer and enhanced GRC intelligence agents. The flowchart visualizer automatically turns process narratives into audit-ready visual diagrams, mapping risks and controls to each step and surfacing gaps in documentation.

The GRC agents enable our customers to spot patterns across issues to uncover systemic risks before they escalate into material events. To surface top themes and trends to inform faster and more confident risk decisions and to track engagement for ongoing assessments and remediation.

Second, for sustainability, we released an AI agent for use with the IFRS sustainability disclosure standards. This agent is designed to summarize disclosure requirements in plain language summaries identify disclosures related to existing data or content and generate first drafts of and iterate on narrative responses based on collected values.

And third, an example of the many innovations in financial reporting is the launch of the internal tie-out agents. These are purpose-built for one of the most time pressured tasks in the office of the CFO. These agents automate data consistency checks across financial documents and associated schedules. They flag inconsistencies and variances instantly before they reach reviewers, management or auditors, and they go beyond notifications. These agents help you review and resolve each issue with full document context, line item links in targeted alerts.

This is the foundation of our agentic approach every human or agent action logged automatically, every workflow audit ready by design and an enterprise scale with security built in. As AI reshapes how the office of the CFO operates, Workiva will be the foundation that organizations rely on, not because we're adapted to the moment, but because we're built for it.

Our commitment to speed, innovation and transformation doesn't stop with our customers. It extends directly into our own operations. As we noted at the close of last year, we entered 2026 as a stronger, more disciplined and more agile company. We remain deeply committed to our dual focus, both growth and profitability, demonstrating our ability to drive meaningful operating leverage while maintaining durable top line growth.

Our Q1 operating margin is a direct reflection of our focus on operational rigor. The 1,600 basis point margin improvement is the direct result of deliberate operational discipline executed across every function of the business. We've made progress on restructuring for efficiency, aligning our teams around our highest leverage market opportunities and embedding AI and automation into workflows that previously required manual effort at scale.

Six months ago, Michael Pinto joined Workiva to reshape how we go to market. That work is underway. He's building a leaner, sharper sales organization that's designed to carry us well beyond $1 billion in revenue. This means raising the bar on seller performance and pairing deep industry knowledge with experienced leaders who've scaled businesses like ours.

With a tighter focus on our multi-solution platform and more intentional decisions about where we compete and how we partner, we're developing a go-to-market engine built for sustained growth. The result a disciplined foundation that captures our expanding market opportunity while keeping us on track toward our medium- and long-term margin goals. [indiscernible], more operating margin on the sales and marketing line.

In closing, I want to thank our customers for their continued trust and their partnership. I would also like to thank our employees and our partners around the world for their commitment to innovation and to our customers. their support, their focus and their execution continue to strengthen our business and position us for long-term success.

With that, I'll turn the call over to Barbara to walk you through our financial results and our guidance in more detail.

Thanks, Julie. I'll start with an overview of our financial and key metric highlights for the first quarter 2026 and followed by our guidance for the second quarter and updated guidance for the full year 2026.

We started the year strong with broad-based demand across our portfolio of solutions. First quarter total revenue was $247 million, up 20% year-over-year and beating the high end of our guidance range by $1 million. Foreign currency fluctuations had an approximately 2 percentage point favorable impact on our reported growth rate. Subscription revenue was $225 million, up 21% year-over-year.

Both new customers and account expansions continue to contribute to our revenue growth. With new customers added in the last 12 months accounting for approximately 45% of the increase in Q1 subscription revenue consistent with our expectations.

As of quarter end, our current remaining performance obligations were $765 million, up 20% over the prior year. This growth, which reflects the revenue we expect to recognize in the next 12 months includes an approximately 1 percentage point favorable impact due to foreign currency.

Professional services revenue was $22 million, up slightly versus the prior year. In line with our expectations, higher margin XBRL services continue to grow, while our partners took on more of our lower margin setup and consulting services. Our non-GAAP operating margin for the quarter was 18.4%. This beat the high end of our guidance by 240 basis points, driven by our continued focus on operational rigor and productivity and the timing of certain headcount-related expenses.

Moving on to our performance metrics for the quarter. We had 6,665 customers at the end of Q1 2026, an increase of 280 customers year-over-year. Our gross retention rate was 97%, exceeding our 96% target. And our net retention rate was 112% for the quarter, compared to 110% in Q1 2025. Consistent with our reported revenue growth, there was an approximately 2 percentage point favorable impact on NRR due to foreign currency fluctuations.

During the quarter, 75% of our subscription revenue was generated from customers with multiple solutions, up from 69% in Q1 2025. Growth in our large contract customer cohorts also reflected strong momentum. As of the end of the first quarter, we had 2,575 contracts valued at over $100,000 per year, up 24% from the prior year. The number of contracts valued at over $300,000 totaled 605 up 38% year-over-year. and the number of contracts valued at over $500,000 totaled 265, up 39% from Q1 2025.

Moving on to the balance sheet and cash flows. As of March 31, 2026, cash, cash equivalents and marketable securities were $863 million, a decrease of $28 million from the prior quarter. This was primarily driven by the repurchase of 763,000 shares of our Class A common stock for $50 million. Combined with the $72 million repurchased in 2025, we have repurchased a total of $122 million under our $350 million share repurchase program with $228 million remaining as of quarter end.

As we've previously shared, we remain focused on investing in growth and innovation. At the same time, our strong free cash flow profile enables us to return capital to our shareholders, while effectively managing dilution through opportunistic share repurchases.

Before I move on to our guidance, I'd like to briefly touch on the governance topic. We disclosed today that the Audit Committee has approved the appointment of Grant Thornton as Workiva's independent auditor. This appointment comes as part of the Board's normal governance process and we look forward to working with the Grant Thornton team in this capacity.

Turning now to our outlook for Q2 and the full year 2026. We are focused on Workiva's commitment to delivering both durable top line growth and expanding operating leverage across the business. With that in mind, for the second quarter of 2026, we expect total revenue to range from $250 million to $252 million. We expect services revenue to be relatively flat compared to Q2 2025, and we expect non-GAAP operating margin to be in the range of 14.5% and to 15.0%.

As a reminder, we stated last quarter that we expected Q2 operating margin to be lower than Q1, driven by headcount-related expenses. For the full year 2026, we now expect total revenue to range from $1.037 billion to $1.041 billion. We continue to expect subscription revenue to grow approximately 19% year-over-year. And similar to 2025, we still expect total services revenue to be relatively flat year-over-year.

We are raising our non-GAAP operating margin outlook by 100 basis points and now expected to range from 16.0% to 16.5%. This 660 basis point year-over-year improvement at the high end reflects our ongoing commitment to drive operating leverage as we scale the business and make meaningful progress toward our medium- and long-term financial targets. We are also raising our 2026 free cash flow margin outlook by 100 basis points to approximately 20%. For additional details on seasonality and other model assumptions, please see our quarterly investor deck available on our IR website.

To wrap up, our strong Q1 financial results are a direct reflection of our ongoing commitment to profitable growth at scale. Having now completed my first full quarter with the team, I am more energized than ever by the significant opportunity ahead of us. Our platform continues to clearly resonate with offices of the CFO around the world, and we are executing with the operational rigor needed to deliver both durable top line growth and expanding operating leverage.

As we progress through 2026 in our next phase of growth as a $1 billion revenue company, my team and I remain focused on the disciplined execution required to scale the business efficiently and drive durable long-term value for all of our stakeholders.

Thank you all for joining the call today. We're now ready to take your questions. Operator, please open the line for Q&A.

[Operator Instructions] Your first question will come from Rob Oliver from Baird.

I had 2 questions, Julie, first for you. Just I would love to hear from you, obviously, a really good quarter for you guys and really strong metrics upmarket and some nice examples you laid out on the power of the platform. On that topic, I mean your customers are likely really inundated right now with lots of mandates on AI and AI usage. I think we all are -- and I'd just be curious to hear from you what you're hearing from your customers about that? I mean you laid out some of the concerns around risk and how every number needs to be verifiable.

That said, is any change in sales cycles or anything you've seen within the the buying patterns that either give you cause to be excited or to think, hey, there's some additional features or functionality or things that we need to do to prepare for our user conference coming up, I guess, later this year?

And then I had a quick follow-up for Barbara.

Sure, Rob, and thank you for the question. I did mention the transformation we're making given the new era of AI, so to speak, and we are continuing to provide capabilities within our platform around AI, and our customers are very interested. You know the base of customers that we sell into, and they're very enthusiastic about leveraging AI hesitant, but enthusiastic about Workiva's AI because it is in a secure controlled environment. So we are seeing that, and we are seeing increasing use of those who have activated and those who are just actively using it.

We continue to look at metrics and ensuring that we are not just relevant but continuing to increase in relevancy. And you mentioned sales cycle and I would say for us, because our execution is strengthening that we're actually seeing less length in our sales cycle. So for us, it's a positive, both from a -- just a go-to-market perspective from the kinds of sellers that we're putting out in the market and bringing into the organization and so forth and the platform and the partnerships that we have with our consulting and advisory.

So we're seeing a big push for faster sales cycles, enthusiasm from our customers also caution, of course, it's the office of CFO, but enthusiastic about our offerings, absolutely.

Great. Okay. Well, on that note, I'll pivot to your CFO. So Barbara, I guess, one for you. And just not significant too much, but on the Q2 guide on revenue. Maybe a little bit lighter than we would have expected, I think relative to the strength you guys have called out obviously maintaining your targets and guidance on the full year, but just wanted to understand better if there was any I think we should be reading into that conservatism. I wanted to have a little bit of extra cushion in your pocket, whatever necessary.

Rob, thanks so much for the question. So as you said, we're really pleased with our Q1 performance. We beat the high end of our revenue guide by $1 million, and we did flow that through to the full year and increased our full year guide by that $1 million beat.

In terms of Q2, if you recall last quarter, we talked about seasonality and the fact that Q1 is seasonally our smallest bookings quarter of the year. Therefore, we expected the Q-over-Q sequential revenue growth will be the smallest in Q2, and that's reflected in our guide of $250 million to $252 million for Q2 revenue. But thanks for the question.

Yes, perfect. Thanks for the clarity.

Your next question comes from Adam Hotchkiss from Goldman Sachs.

I guess, Julie, just on that large IPO deal, you called out, I think you said they doubled spend with you. Can you just talk a little bit about the dynamics of capital markets deals today? Are you getting involved maybe earlier than you were historically? Or is that something that only happens with the larger deals?

And then because GRC and sustainability have gotten a lot of traction in recent years, are you now often selling bigger to these pre-IPO companies in areas like DRC and sustainability? Or would you generally say IPO deals look similar to prior years.

So I'll start with the large companies as the one I highlighted. And I would say the trend is similar, I mentioned in my prepared remarks that they had become a customer a year prior to their purchasing their IPO capabilities, our S1. And that's a trend that we've continued to see. 12 to 18 months is not unusual for us to see companies purchasing internal controls or private company reporting as they prepare for their IPO. So not much change there.

And I will say a lot of it is just private companies. We're just not in the private to public journey with these private companies. Some are staying private a lot longer or staying private indefinitely or pushing IPOs out. You can think of the big ones in the market now that has been IPO-ready likely, but have been waiting for right or better market conditions. So it takes a while.

So yes, we may be selling other capabilities or offerings to them as they wait for an IPO or stay indefinitely as a private company. So yes, we are selling more to private companies, whether pre-IPO or others. So those deals are increasing in nature. Very happy with the private company capabilities.

And yes, you mentioned they are getting -- you asked about them getting bigger. They are, in fact, getting bigger. Our deal sizes are larger and multi-solution is the way we land increasingly. So IPO market definitely stronger in the quarter. Then last and continue to see good deals come through and larger deals.

Okay. Great. That's really helpful, Julie. And then Barbara, I'd love to just extend on Julie's discussion on the potential change to the earnings calendar and how that might impact your financials. Could you just remind us of what exposure you have from a pricing model perspective to actual financial reporting filing counts, whether that is or isn't a factor?

And then how, if at all, your XBRL services revenue could be impacted?

Are you talking about the semiannual reporting news that came out today.

Yes, that's correct. Okay.

Yes, I mentioned that in my prepared remarks, and I'll take that. That SEC communication was very clear. It is a proposal that would provide issuers the option to choose a more -- or less frequent reporting, a move to semiannual reporting. And what was proposed today was not unexpected. And I'll reiterate this again about the proposal. It's providing an option to choose semiannual reporting. It's definitely not a mandate.

And if you go back and look at the exact language of that proposal, it enables public companies to choose interim reporting frequency that would best serve their company and its investors. So I'll say that based on our customer conversations, most of those companies we've spoken with expect to continue the rigor of that quarterly reporting just to meet the ongoing investor demand for timely decision-making.

So the concept for us is around value and the value of our platform extends, of course, will be on the filing itself. So we will continue to provide that trusted data foundation that helps our teams remain report ready and audit ready really at any point in time in the quarter. So I think the concept again is our value is tied to giving CFO's absolute confidence in their data at any point. Therefore, we don't even price based on the number of reports or the number of users. We don't sell by seats or number of filings. So we feel confident it is a nonevent for Workiva.

Your next question comes from Andrew DeGasperi from BNP Paribas.

I guess, first, I wanted to touch on -- a follow-up to Adam's question in regards to your response saying that deal sizes were or larger. Should we -- if we take that a step further and just think about it in terms of net retention rate, so we see that net retention rate number become less relevant going forward or at least the balance between existing and new shift to more new customers as those deals land at a substantial size?

Yes, I'll take that. From an NRR perspective, we can see that metric move around from quarter-to-quarter. But our current internal target in terms of NRR is maintaining that north of 110%, really pleased with the performance we saw in that metric in Q1 at 112%.

And we're going to continue to focus both on new logo acquisitions with a multi-solution and multi-category land as well as account expansion of our existing accounts. So we're pushing hard. Our strategy has been account expansion, larger deals, larger deal sizes up in the enterprise, again, multi-solution multi-category and that's both with land and expand.

That's helpful. And then I have to ask this question. But in terms of the strength in Q1, you called out in Capital Markets, I was just curious, did you are you still leaving your expectations for the year unchanged? In other words, are you being more just as conservative as you've been in historically?

Yes. So our expectations, we were really pleased with the performance in Q1, broad-based, but for capital markets as well and our expectations for the year remain consistent.

Your next question comes from Patrick McGilley from William Blair.

My first is just on the leadership team. So it's been roughly half a year since you made a handful of changes at Workiva bringing in a new CRO, Head of Product and obviously, Barbara's CFO. So my question is really, how is that them meshing -- and how do you feel that this new slate of talent positions Workiva for the next chapter of its story.

We were very intentional on the hiring of those 3 roles, and I appreciate you asking the question because it does highlight where we're going. And our approach in all 3 of them have been there, seen the scale. They have executed and driven growth well beyond $1 billion, which is exactly what we were looking for. They've seen successes and failures. So they're very well positioned to help Workiva lead.

Our executive team across the board has strengthened now. They are all bringing expertise and focused on what we are focused on long durable growth and sustainable growth and profitable growth.

Okay. And on margins, I know you walked through a number of profitability levers that you're focused on during your Investor Day last year. But -- just given how much productivity technology has advanced since then. I wanted to ask if and how you're leveraging AI to drive efficiency within Workiva, the organization itself. And if that changes anything in terms of how you view your longer-term margin targets or where you're looking for efficiencies?

Sure. Barbara, you may want to start...

I'll start on that. That's a great question in terms of how we're leveraging AI for Workiva. On the R&D side, absolutely, we're focused on engineering productivity that includes leveraging AI and automating across our teams, really making our own teams more efficient and then across the entire organization. We've got ongoing productivity initiatives, and that's a component of the strong operating leverage that we've demonstrated over the past 5 quarters. So continuing to make progress there.

Your next question comes from Alex Sklar from Raymond James.

This is John Messina on for Alex. Maybe Julie, I did want to ask on -- I know you were asked earlier on the sales cycles, but I wanted to ask about linearity in the quarter. commentary during the prepared remarks really pointed to a strong wind and deal expansion environment. And CRPO bookings look really strong. But I did want to ask, was there any timing factors you'd call out any deal linearity or revenue recognition dynamics in the quarter that things are worth calling out there?

I don't think anything has changed in any way. I can't think of anything that's different. The the deal timing is very similar when we see the bookings come in. Again, the deal cycle is similar. So no, I don't see any difference in cycles and timing.

Okay. Great. And then I also want to ask on sustainability. I know you guys have emphasized that it's not only a regulatory story, but I'm curious as far as the resiliency that you're seeing there from a regulatory -- from the nonregulatory side, whether it's supply chain requirements or sort of reaching internal operating goals. Just curious on what's proving to be the most resilient there. And if you're seeing any meaningful changes in the deal sizing when sustainability is being sold, not as part of a regulatory requirement.

Yes. Definitely, on the regulatory side, I had talked about that. It really is a stakeholder [indiscernible] still, and you can come up with a lot of examples of why companies are making sustainability commitments well over 10,000 companies have made net 0 commitments with the -- line with the science-based target initiative. It's stakeholder demand and they know it's coming, and they want to be thoughtful and organized and the demand for the information being treated as if it were financial data is very strong. That's why we're seeing the trend of sustainability reporting being part of the office of the CFO.

But it really is the stakeholder demand and business requirements. I mean renewable energy important for running data centers, for example, I mean there are economic reasons. Sustainability is about risk mitigation and economics. It isn't about a regulation always. So definitely seeing that trend in companies. Larger companies absolutely for visits and stakeholder reasons and those with -- in the retail sector and so forth with stakeholder demand being very [indiscernible].

Your next question comes from Terry Tillman from Truist.

It's John Carlos in for Terry. I just wanted to double-click on how are efforts going to drive more products per customers? And where are those actual plays working best to increase platform spend.

Sure. I mean the world is fast moving to agentic, and we are well positioned to be part of that world. I mentioned the transformation that we were going in -- we are moving towards the data-centric platform we've been in that transition. We are rolling out capabilities and products, leveraging that transformation.

We are giving them to customers and putting them in customers' hands. I highlighted a couple of the offerings that we've put out in the market. We are, of course, as Barbara mentioned, going faster in R&D and rolling out the innovation in a more effective and efficient and productive way. So you will see us continuing that path rolling out agents everywhere, building agents for our customers, enabling our customers to build agents on our platform. That is the direction that we are going in agentic world, and we're a part of that.

Your next question comes from Steve Enders from Citi.

Okay. I guess maybe just start just following up on that last point around leveraging genic AI. Just how are you kind of thinking about what that means in terms of further monetization or maybe how it kind of changes some of the value-based pricing model that you've had historically, and I guess, kind of dovetailing on top of that, just maybe what have you seen so far from the shift to the good, better, best pricing model and the adoption of those tiers so far?

Sure. I appreciate you bringing up the pricing conversation and -- you mentioned the value-based pricing, and I'll remind everyone on the call that Workiva is non-seat-based model. We've not operated as a seat-based model for over 7 years now. We are metric-based value-driven pricing models, a number of entities, number of controls, number of integrations for our data connections and so forth.

And as you mentioned, we have not long ago introduced a tiered pricing model for our solutions, good, better, best model, and we call them essential standard and advanced versions an example that we highlight that had the most time in the market is our SEC advanced solution. We've had customers with SEC for more than 15 years. So we offer them premium solutions now, whether at the time of renewal or mid-cycle, and those features are our intelligent finance offering, and we offer design features or report translation, data collection for SEC disclosures, financial statement automation and so forth.

But of course, we add in those premium offering for AI, those that we don't make available to our entire customer base. And we are seeing strong traction, we are just getting started, however, we will, of course, see a multiyear journey. And again, one of the many vectors we have for growth going forward. So thank you for highlighting that.

Okay. That's a great. Great to hear. Just maybe kind of following up on some of the I guess, kind of like deal dynamics. But I think leaving it in the question on just like billings this quarter and maybe looking a little bit softer versus some of the other kind of forward-leading metrics.

Just I guess anything that we should kind of keep in mind on the timing of billings versus some of the subscription bookings strength. And I guess, similarly on kind of the guidance framework, kind of any change in terms of the beat and raise cadence that maybe we should be thinking about for this year, anything to read on the beat magnitude this quarter?

So why don't I start off in terms of billings. So billings in particular is a noisy metric. It can be impacted by things like payment terms, invoicing schedules, the timing of renewals. And for Q1, particularly, a clear example of kind of the payment terms is last year, we had a higher mix of multiyear upfront invoicing in Q1 compared to this Q1.

And to be clear, this is separate from contract duration. What I'm talking about is the invoicing terms, which is really set by customer preference. So it's the change in that multiyear upfront invoicing that impacts our long-term deferred revenue, and therefore, impacted our calculated billings metric in the quarter. So of all the metrics in terms of the forward-leading indicator, I would say current RPO is a much better indicator of future revenue, because it normalizes for that invoice timing.

And then in terms of just the guidance philosophy, there's been no change to our guidance philosophy in terms of the magnitudes of the -- we are looking at the business and just giving you our best view of what we have a clear line of sight to right now. And Julie and I and the rest of the management team are all very aligned on that.

No, that's good to hear.

Your next question comes from Daniel Jester from BMO Capital Markets.

Julie, in your prepared remarks, I think you mentioned that this is Michael Pinto's 6-month anniversary. And so maybe it'd be great to just get an update in terms of the areas of deep focus on the go-to-market efficiency front and any potential tweaks that you're evaluating as the year progresses?

Sure. I appreciate the question, and Michael may be listening, I've given him the list of areas to focus on. And certainly, sales efficiency is on there, the pipeline quality, enterprise -- large enterprise ACV growth, ramp capacity, productivity, partner-sourced, influence ARR, et cetera. So he's got a fun role, and he's moving and making progress.

So on the productivity side, I have outlined even prior to his arrival of some of the activities we've been engaged and some of the initiatives we've been focused on, and he has come in and taken those and move them forward. So whether it is the structure of our sales organization, whether it's the staffing and the profiles of hires that we have and the enablement and training and so forth, or just the strategy that we have in our go-to-market, whether here in U.S. or outside and perhaps in the end and so forth. He's taking all of that.

And essentially, it comes down to building a high-powered go-to-market machine that sets us up for future scale and growth.

That's great. And then maybe Barbara, on the gross margin side, another really strong gross margin year-over-year expansion performance in the quarter. I think you're kind of approaching the midterm target ever so -- ever so slightly now. But as you introduce these AI agents, and those ramp over time. I guess maybe how is your thinking around the gross margin opportunity may be evolving as maybe those impact your ability to scale margin.

Yes. Thanks so much for the question. I would just say, in the near term, we feel really good about our gross margin and the improvement. We are currently getting our AI compute through our broader infrastructure contracts. So at this point in time, we're not seeing any pressure on our gross margins, and we still expect to make progress toward that 2027 and 2030 gross margin target. So feeling good about where we are and continue to monitor very closely.

Thank you. Unfortunately, this concludes our time for the question-and-answer session. And with that, that concludes our conference for today. Thank you for attending today's presentation. You may now disconnect.

Hello, and welcome to today's webinar, What's Next on the Workiva AI Roadmap For 2026. At the bottom of your screen are multiple application engagement tools that you can use. All the engagement tools are resizable and movable, so feel free to move them around to get the most out of your desktop space. [Operator Instructions]. Anything we're unable to answer today, we will be sure to follow up post event.

Quick introductions. I'm Johna Morris, Director of Platform Product Marketing for Workiva AI; and I'm lucky enough to be joined by Kevin Walker, a Senior Product Manager on the Workiva AI team.

And before we begin, what we share today is confidential and reflects our current plans and priorities shared for informational purposes only and not as a binding commitment. The development, release and timing of features remains at Workiva's sole discretion.

So let's get into the fun stuff. So our investments across our Workiva AI portfolio are grounded in 3 core priorities that ensure we focus on the biggest opportunities to accelerate your performance. The first is agentic augmentation. Think of this as AI that automates complex manual tasks while keeping you in control. For you, that means less time spent assembling reports and more time interpreting results and driving strategy. You'll see faster reporting cycles and higher confidence and accuracy. The second is contextual intelligence. Think of this as AI that's embedded throughout your workflows and grounded in your own trusted data. It understands what they're working on and where that data comes from. So the insights you receive are relevant and reliable. For you, that means less time with manual data reconciliation and more time spent acting on insight instead of chasing it.

And last, we have trusted AI governance, ensuring every capability is transparent, auditable and secure. You can trace how AI-generated outputs were created, maintaining the same level of control you expect from Workiva today. That means innovation without risk to integrity or compliance. And together, it's these 3 priorities that let us advance AI responsibly and give you immediate productivity gains without compromising trust or accuracy.

And our packaging model follows that same philosophy, innovation that's embedded where it adds value and structured where it adds depth. We believe a modern platform should inherently help you work faster, smarter and more collaboratively across everything that you do. And that's why we've built a set of intelligent platform capabilities, right? AI-powered features like the Workiva AI intelligent companion you can access globally and in context, the prompt library, file intelligence and support intelligence. These features are embedded as part of the platform experience, side note, pending you accept our AI terms of use. They enhance the actions you already take each day by bringing speed, accuracy and consistency to the way you create, review and collaborate, all within the same secure governed environment you trust.

We also recognize, though, that many of you are tackling highly specific manual processes that traditional software alone just can't solve for. So with advances in AI, we now apply it directly to those pain points throughout our advanced AI packages. The first is intelligent finance for financial reporting solutions and workflows. We also have intelligent GRC for audit and risk solutions and workflows. And lastly, intelligent sustainability for, you guessed it, sustainability management solutions and workflows. These packages bring fit-for-purpose AI into your solutions, helping you research and generate insights from real-time SEC filing data, design and document controls or even align disclosures to evolving sustainability standards.

They're available within specific Workiva solutions and premium tiers and your account team can help you understand which packages include them and what it looks like to enable them. In short, every Workiva customer benefits from the intelligence embedded in the platform, and teams ready for deeper automation can extend that value through our advanced AI packages built for their specific needs.

So with that foundation, let's take a look now at how Workiva AI continues to evolve. So what's available today, what's coming next and where we're headed over the longer term. And we'll start, of course, with recent innovations released over the last 2 quarters. In this period, we focused on making Workiva AI more contextually aware of what you're working on and accelerating the automation of manual latent tasks, so you can assist with greater precision, relevance and speed. You'll see this in enhanced companion experiences, extended file intelligence, new third-party data integrations and powerful capabilities across finance, GRC and sustainability. And together, these innovations show how Workiva AI is becoming more contextual, right, more connected to the work you're doing and more collaborative on your day-to-day needs, helping every team work faster and with greater confidence.

But instead of me talking about them, Kevin, I'm going to pass it to you, so you can show us some of these innovations in action.

Thanks, Johna. Welcome, everybody. My name is Kevin Walker. I'm a Senior Product Manager here at Workiva. I've worked here for 9 years all across the platform, and it's my job to make sure that what we're building is the right thing for you. And I work hand-in-hand with the design and engineering team who quite literally write the code for everything you're about to see today. And so I'm excited to give you a sneak peek into what we've been working on as well as what we have coming up next.

So the latest innovations, I'm going to have a demo here. I'm going to walk through a few of these to you. I'm going to go and share my screen. Excellent. So here I am within the Workiva platform. This is a sustainability workspace. Now this could be a financial reporting workspace or a GRC workspace as well or any number of other workspaces. If you have access to Workiva AI, you'll find it up here in the top right corner. And you'll also find it in another area of the platform, just look for the sparkles.

One of the latest innovations we released is the ability to bring more of your files into collaboration with Workiva AI. Previously, we had the ability for you to right click and ask Workiva AI about documents. And I can send a message here, and you'll start seeing -- you'll see a response that tells me about this file. We know our customer -- you have your files not all in Workiva. Some of them are in PDFs, some of them are docx files and maybe even images. I'm excited to show that you can now right click these as well and ask Workiva AI about additional file types that are not Workiva specific, such as the CSRD policymaking time line.

I can now say -- ask Workiva tell me about it. And this allows you to bring more of your knowledge from your organization into collaboration with Workiva AI so that it doesn't have to -- you don't have to explain so much to it about what it is that you're collaborating on.

The next I'm excited -- feature I'm excited to demo for you is our all-new document companion. Now this is something we launched at Amplify in 2025, but it's worth re-highlighting again because there are some additional improvements. So the first is that, like our global companion, it has the ability to reference documents as well as other file types. But when I use the document companion, it already knows what document is open. So I don't have to reference it. I can simply say, tell me about this file. And it automatically references this file. I can bring in additional file types like you saw previously, prompts, knowledge bases and other features that we've launched as well here.

The key thing I wanted to demo is that we recently released here in the early parts of 2026 is the ability to use Workiva AI on Wdata. So Wdata is a feature that allows you to pull data in from your enterprise risk -- other enterprise systems so that you could use that data directly in Workiva. And as you can see on this table here, this table's data comes from a spreadsheet as it's linked there. Here's the data that is backing that spreadsheet, the table you saw in the document. And you can see that this is a roll-up of this section here of emissions data. And all of this emissions data you can see is via a connected -- data connected sheet. And a data connected sheet means that this data is provided from Wdata. Over here on the right-hand side, I can see that this data -- I can click this drop down. It brings me to the Wdata query that does a query that pulls data on a routine basis from the emissions database that we have outside of the Workiva platform.

And what I need to do now is I need to roll this document, this SQL query forward to include [ 20-year ] data for 2023 and 2024. But as most people -- as with most people, I'm not entirely sure how to write SQL to make this change. SQL is something that we often look for somebody else who has the knowledge to help with, or if you have to make -- if you do have the knowledge to make this change yourself, you can make the change. But what I wanted to share with you is that Workiva AI companion is now within the Wdata experience. And I can ask -- simply ask it to make the update. So I say, can you please update this 2 years 2023 and 2024? And it will look at what is written in the SQL query, and it will rewrite what needs to be changed in order for this SQL query to be updated. Now all I need to do is say, hit insert and hit run. And you'll see that the query now only includes data from 2023 and 2024.

Let's go ahead and save that. If I hop back over to my spreadsheet, the connected data source here, I just have to click refresh incoming connection to allow that new data query to flow in so that the data is up to date. You can see that it currently says 2022 and 2023, and now it's updated to 2023 and 2024. The data in my roll-up table now says 2023 and 2024 with unpublished links. I'll put this side by side so you can see an update to get in real time. I am going to hit publish. And now the data in my document is up to date with the latest 2023 and 2024 numbers for Wdata.

So those are some of the features I'm excited to demo for you. I'm going to go ahead and move forward. So that was the file intelligence enhancements. We also have the Wdata companion enhancements.

The next feature I want to demo for you is called SEC Filing Intelligence. This is an ability for you to search and analyze all the last 3 years of SEC filings directly without -- directly in Workiva so you don't have to switch to third-party tools to get this. So for example, if I hop back down to my sustainability document, at the very bottom, I have a section called peer research. And as with many financial reporting teams, researching what your peers have disclosed, before you write your next report, helps with deciding whether to include new topics or to adjust language to meet investors' expectations of your -- of the team. So in this case, we're going to say, does any of my peers disclose sustainability strategy in their annual report, and do they disclose progress against it?

If I go down to the right-hand corner in the document, you'll now see this feature called intelligent finance. This is the access point to do deep research on SEC filings. I have the ability to compare content language and structure of my disclosure to my peers or define my own goal. We're going to just define my end goal here. Next is to go and pick the company group that I want to do a research against. These are company groups, so I can hit device manufacturer peer group. And if I want to create a new peer group, I can by clicking this button. This manufacturing group includes alphabets for Google, Amazon, Apple and Microsoft. I'm going to switch the filing dates for the last year and only focus on 10-Ks.

Here's let me select which 10-Ks I actually want to audit against. So here's alphabets. We'll start with one. Let's do Apples first. Now from here, I can just ask my question. Now what this is going to do is this is doing deep analysis on the report that was published by this company for that 10-K period, which would be Alphabet -- or Apple, and it's going to give me an answer to my question. Now once I get the response, I will have the ability to insert this into my documents and use it for ongoing -- as ongoing context to work with -- to give my team understanding of what the company answered as well as give AI the ability to understand it within the context of the larger file.

If I wanted to switch and do the same thing for Microsoft, I can go here and hit adjust filters, hit submit, click Microsoft, confirm and ask the same question. And when I get a response, I can go ahead and insert this back in. This allows me to offload the tedious mentally taxing work of doing SEC filing research to AI as opposed to having to read these files myself and extract the insights that I'm looking for from within the filings.

Here we are. We'll go ahead and insert. And one of the things I want you to notice is that we -- when we insert the content here, we convert the content directly over to the style guide of the document so that it continues to look great.

So hopping back over to the next here, we have another feature called ISSB Intelligence. This feature works just like SEC Filing Intelligence, except it allows me to do deep research against the latest ISSB standards right within the Workiva environment. This helps you generate insights and analysis around the ISSB standards using natural language queries.

If you hop back over to the sustainability workspace, you'll see the Sustainability Explorer is a place where you can go and do this research yourself. Now for example, like ESRS is in here, you can do deep research yourself. But now all I need to do is just start with a fresh chat. I can go down to the bottom of a chat and hit selection to knowledge base, ISSB, and I can say things like, how does my report compare against the ISSB standards? This is now giving Workiva AI the entirety of my sustainability report, and it's comparing it to the standards outlined in the ISSB knowledge base. And you can see it's doing multiple searches. And it says that my current report is highly aligned. However, there are some areas where additional disclosures could be enhanced. And so it gives me guidance on where I could -- what I could do to make my report stronger.

And at the very bottom, it will continue to fill up this report, this response, and it will give me sources that will drive right back to the ISSB reporting framework to have citations for all these recommendations. At the very bottom here, you can see. Here we go. We have 50 different sources that I can navigate to.

Now the same thing is true, we've done the same thing for ESRS. So I can add ESRS as a knowledge base as well and say, thank you. Can you now audit my report against ESRS standars? And it can get you the same point of view. Now it will respond very similar, so I'm going to hop back over here. And then you can see that ESRS was the very next feature that I want to demo.

Now moving out of sustainability and financial reporting, I want to demonstrate just 2 new features for Intelligent GRC. The first is called risk and control intelligence. So risk and control intelligence, if I hop over to the demo, is the ability to navigate over to your controls list view and GRC and open up the Workiva AI Companion, and you can select add knowledge base, risk and controls. What this does is that this gives Workiva AI the entirety of your risk and control matrix to help you find and do analysis on your entire risk and control matrix for any sort of gaps you're looking for. So one thing I'd like to check for is if I have any duplicative controls. That way, I can reduce the amount of testing that I have to do in the long term. So please analyze my risk and control matrix to identify any controls that seem duplicative and outline next steps to consolidate.

By setting this prompt, it's going to review all of the risks and all the controls and give me an answer and response on how to respond. You can see here in real time, it's giving you some insight to what it's doing as it's doing this process so that you have some clarity around how it's answering this problem.

Now while it's running, I'm going to go and close this. This can run in the background. I wanted to share that we also have the ability to do a flow chart visualizer. Now this is a very powerful feature. As you know, controls are often placed within what are called processes, like accounts payable and expenses. Processes are what businesses use to ensure the proper flow of business requirements such as accounts payable and expenses have a proper flow. And if I open this document, this document actually outlines this company's process in detail.

Kevin, I hate to interrupt, but we are still just seeing your sustainability report. If you've moved over to the GRC workspace, I would share that window.

Okay. Thank you. So I'm going to hop back over here. So I'm just sharing that. The accounts payable, these -- all these controls here are rolled up into our accounts payable process payable and expenses. If I click this process, it will see that there's a process narrative that describes how this process works in detail. Now this is very useful, but it can be quite difficult to understand without -- because it's very verbose. What is very useful, though, is to visualize this in a flow chart, not often this is what auditors will ask of our customers. So what we've done is we've created an all-new flow chart visualizer. This is an ability for you to give Workiva AI access to this flow chart, this process narrative and generate flow chart of that process narrative on your behalf.

So I'm going to type the flow chart, accounts payable and expenses. And I can say, use existing accounts payable and expenses narrative flow narrative. This will reuse that. And while this will be running for a few minutes, in the meantime, I can show you what one looks like when it's finished. Down here, we have our ELC process that already had a flow chart associated with it. And you can see how it took the process -- a process narrative and creates a flow chart dynamically for you. And my favorite part about this is the ability for you to take -- to walk through this in real time with that process team. And if there's a new risk that comes up, I can simply drag a risk out and map it directly to a step in that process. And I can go and associate it with a new risk or I can create a brand-new risk right from here instead of having to go and create it elsewhere. This whole process is meant to have AI help you reduce the amount of time it takes to create assets that help with shared understanding.

And I apologize for the bump earlier. I just want to share that what I meant -- what I was describing earlier was that if I open the risk and control matrix and I open Workiva AI, I can click add knowledge base and click risk and controls and ask you questions like please analyze my risk and control matrix for duplicate controls. And you can see here that it reviewed it and got a bunch of examples of where there may be are major duplicative controls identified and with examples and recommendations on how to consolidate them, allowing you to spend less time analyzing and more time adjusting to make things more efficient. And with that, I'm going to go and pass it back to johna. Sorry for the hiccup again, and I'll pass it to you.

No worries, Kevin. I appreciate you kind of taking us through those live and in action. And I think you probably know better than anyone that, that by no means is where the team is stopping. So you reviewed there, I think, 5 to 6 new innovations. And there's a heck of a lot more on its way. So I'm going to shift us to planned innovations. So the way to think about this is what the team is actively developing for delivery in the next 1 to 2 quarters, which is really exciting. The theme here is around collaborative agentic augmentation, which is really using AI not just to inform your work, but to actively participate in it.

So across Workiva AI, our focus for this next phase is pretty clear if you review what's on the slide here. We want to make the experience more useful, more specialized and more responsive to the way that you work. And that is going to start with our intelligent companion, which is our global chat experience and integrated experiences. We have heard feedback loud and clear, and we're acting on it. Expect significant enhancements over the next 2 quarters, resulting in higher quality conversations, so like faster chat with streaming responses, greater transparency into AI's thought process which shows thinking, more proactive assistance with suggestions and more personalized collaboration with custom intelligence. And custom intelligence really gives you the ability to create persistent task-specific knowledge bases that the intelligent companion can reference in conversation. Think about like a Gemini Gem, right, or a ChatGPT project.

Beyond the core intelligent companion experience, we're also expanding our fit-for-purpose capabilities within the specialized packages for more domain-specific work. In sustainability, we're introducing simplified ESRS intelligence to help clarify disclosure requirements using embedded intelligence grounded in relevant knowledge. In finance, we're planning innovations like benchmarking insights to compare disclosures against your peer groups and identify similarities and gaps more automatically, and a 10-K tile agent to perform data consistency checks across financial data. And of course, in GRC, we've not forgotten, except things like evidence analyzer designed to evaluate population and sample evidence for completeness and flag potential issues.

Overall, this roadmap for this period reflects really 2 priorities: continuing to improve the day-to-day AI experience based on your feedback, and introducing more targeted intelligence that can support high-value work across finance, audit and risk and sustainability. But Kevin, I'll hand it over to you because it's you and the team working on it every day to talk a little bit more about these innovations.

Of course. So there's a few that I want to highlight to you that are really, really powerful. The first is the intelligent companion enhancements. In fact, you've already seen them. Every demo I did today is using this. And so the important thing I want to keep in mind is that we -- what we launched at Amplify in 2025 in the United States was this companion experience that allowed AI to be a side-by-side collaborator with you. But now what we're launching is a dramatic improvement to how well it thinks through the work with you.

Previously, it gave you responses that were well thought through, but we just took it to a whole new level. Now what you'll do is you're going to get answers that are significantly faster response because we're actively streaming the responses back to you in real time, a lot like you would expect from a flagship AI provider. And then in addition to that, we are working to make it possible for Workiva for you to understand how AI even got to this thinking behind this response in the first place.

You might be familiar with responses in Workiva AI today. And if you're not, there's no ability to know what the thinking behind it was that delivered the response. It was a bit of a black box. And one of our core tenets of building products at Workiva is transparency. We expect to be able to provide -- we expect to build products that allow you to help others understand transparently what happened in what order so that you can understand -- you can help explain it to auditors or others who are helping with change management. And so we'll have the ability to show thinking as well as -- and that allows to increase the accuracy of validation of the responses.

And then lastly, I just -- the second last thing is it allows us to do some pretty powerful new capabilities we haven't been made possible before. And today, I'd like to show you one of those. And I promise to show the right screen today. Hopping over here. Up in the top right-hand corner, you can see a tab called suggestions. Now this is -- this feature is currently in an early adopter program. It's not available to everybody, but if you're interested, please reach out. It is the ability for you to run a set of features, a set of AI-specific checks on your document. And it does take maybe a minute or 2 to run because it is quite powerful. So I already pre-ran it on the letter to the CEO section. And I specifically asked to look for clarity and conciseness checks. And what it did here is that it generated a number of different suggested changes that I could accept or reject in order to improve the clarity and conciseness of this whole section.

Now what this means is that when our customers often send documents for review to other reviewers to help identify these types of things and that review requires human effort from others. What we've done is we've given you an on-demand AI-powered reviewer that you can run through the document first before sending it out and getting some obvious feedback from your providers, such as potentially even cutting out the words, we are uniquely positioned to be, and instead just have, as their trusted partner, you could hit accept. Or down here, you can say together, you can remove that and just have it be we're. So this is a way for AI to safely contribute back to the document so that you can have it make edits on your behalf without you needing to be worried about how AI could change the document.

And if you're wondering if it respects track changes, I just want to say, yes, it does. So if I hop back over here and make this suggestion here, you'll notice that even though AI made that contribution, it's still updated it with track changes for a final approval by a document owner.

So hopping back over to the presentation. The next is I want to describe custom intelligence. I'm not going to go too long on this because Johna did a great job describing this. But one of the things that we're learning about the value that AI can provide is the ability to do deep research on a collection of context and information. And it can do that today using information that's on the web. But what about information that you have housed within your organization, such as peer research. You could bring in the last 5 years of all of your peers' PDF annual reports, but then the question is how can you do deep research on that. We're creating an ability for you to bring those files into what's called a custom intelligence. It's a bucket of files that allow AI to do deep grounded research on the content within to get you grounded accurate responses on exactly what that -- the content in those files say that you don't have to do that yourself.

It's a lot like what I showed you with SEC filing intelligence or ISSB intelligence or ESRS intelligence. The word custom is important here. It's customized for you. You can do deep research intelligence on files that you provide.

Next is benchmarking insights. So as you can see with -- where we're going with SEC filing intelligence and even with custom intelligence is we want to make it easy for you to be able to extract insights from files, specifically, say, from peer research to help you benchmark your company's progress against others. But the process of doing that can be as manual as you'd like it to be. For example, you could ask question -- one question yourself for every competitor like you saw in my earlier demo. But what we want to do is we want to make it easier for users, for you to just -- to explicitly define your peers and then ask questions and have AI automatically fill up, do all the extraction for you across all of your peers and come up with reasonable insight groups. And the whole point here is to help generate actual insights for you to use as inputs to your annual report process or your sustainability reporting process or any process that you'd be looking for to automate there to help with deep research automation.

Next is a feature called internal tie-out agent. Now this -- the goal of this AI feature is to help automate data consistency checks across your financial documents and associated schedules using AI agents. So tie-outs are a very tedious end of the process for financial reporting. They often are done under the last minute -- under last minute pressures. And any help we can do to help our customers feel less pressure, getting that work done in less time is something we want to help with. So what we've done is we created this agent to help flag potential mismatches instantly so that you can catch errors before they reach reviewers or regulators. And it can also help you review and resolve those issues with full context of the document, document links and target alerts tied to each specific line item. And the way that this will work will be having AI be able to help contribute back to the document to help tie out the document as well to help with streamlining the tie-out process.

And next one I want -- the last one I want to walk through is called -- is for intelligent GRC. And this one is called Evidence Analyzer. So the point of this capability is to help accelerate evidence testing to help you save hundreds of hours by automatically reviewing attached files for the evidence that was provided to help identify the correlated facts to confirm that they're actually being -- that the facts that were being requested are actually hosted within those attached files. And the whole goal here is to help enhance data accuracy and reliability by minimizing the amount of human error with AI-powered screening.

And lastly, it's meant to help keep auditors in control by reviewing and adjusting the AI suggestions before confirming final decisions. At the end of the day, when -- in GRC, when a piece of evidence is provided to you, we want to remove the amount of effort it takes to validate that the evidence actually matches with what was requested. And with that, I'm excited to pass it back to Johna.

Awesome. Thank you, Kevin. That is super exciting, and we even got a bonus demo in there. So thank you for that. Now I'm going to shift us forward, right? So now we're going to start talking about things 2-plus quarters out, and it's where I'm going to ask for the most grace in the conversation today. It's our intent here at Workiva to be as transparent as we possibly can around our development priorities as it pertains to AI, right? But as we all likely know on this call, AI is changing by the day. So things could always change here, but these are going to be a sample kind of selection of what we're in active discovery around, right? A lot of these things we've heard from you directly. And so we want to talk a little bit about how we're evaluating and considering these for future development.

You're really going to start to see what we call intelligent orchestration come together here. This is where AI moves from assisting an individual task to coordinating entire workflows under your oversight and control, right? You're going to see us to inform that, deepen contextual intelligence with new third-party data sets, broaden our agentic ecosystem and continue to automate complex multistep processes across finance, audit and risk and sustainability, right? That's the dream. These future innovations will extend what's possible with Workiva AI, ideally driving even greater speed, accuracy and assurance across your landscape. But Kevin, you're on the team, right? So you are talking about this all the time. I'd love for you to share a little bit about how you and the team are thinking about these elements. And if you have anything you'd love the audience to kind of understand about this, let us know.

Yes, I'd love to. So simply put, the features that we've built today really sit in little home bases throughout the product. So if you want to use AI suggestions, for example, you'd hop over to the -- you'd navigate yourself over to the AI suggestions feature and you could use it. If you wanted to use the AI flow chart generator, you'd hop over to GRC and you'd click on a process and you'd have the ability to generate AI flow chart right there. In other words, you are -- still have the hands on the wheel.

Now we -- as AI becomes more prevalent in the platform and the valuable use cases increase, we see a natural evolution where it may actually be more efficient for you and actually saves you quite more -- quite a lot of time to allow AI to take the wheel and bring you along for the ride as opposed to you bringing it along for the ride. And so a lot of what you're seeing in this innovations and development are in that realm. So our agentic platform is essentially the platform we've just -- we're just in the process of standing up that we're going to be releasing here in the next 3 months that allows AI to act agentically on your behalf, whether that's in response to a prompt, it actually goes out and collects more data on your behalf that's relevant or even uses a tool, it actually uses AI suggestions on your behalf to get you an answer. Or it could be simply a partner that you could say, can you go off and create a task for me to assign it to Johna for this, and they can just take that context and actually do that on your behalf. It doesn't require you to have to navigate to tasks anymore and click it and maybe click like a sparkles icon to auto fill it. You can simply ask AI to take the lead and bring you along for the ride.

And the same thing is true for AI connectivity. That falls right in that bucket as well as well as data and intelligence. A big part of what allows -- will allow you to trust give -- and this is very realistic and understandable that to trust AI responses and is ensuring that its responses and the way it takes a lead is grounded in what you would want. So we want to continue to bring in your personalized data as well as the frameworks that you're going to be audited against, for example, so that AI is taking the lead in a way that would respect how you want things done in the first place, even if it was with another collaborator, like a human collaborator.

And then in addition, we have our integrated experiences. As you saw, I demoed how AI works within documents as well as in Wdata. A part of what we're doing is we're adding AI interoperability with the rest of the platform. We're currently in the process of adding a spreadsheets companion, just like you saw the documents as well as the presentations. And we're looking to add that to many others such as processes, functions of GRC, et cetera. So that way, no matter where you go in the platform, AI can be there to assist you if you'd like it to help take the lead.

That is incredibly exciting, Kevin. I would love to see some emojis from folks because this is some big rock items that could really shift how you're interacting with the platform day-to-day when we think about this future forward vision that Kevin is articulating. So thank you for walking us through that. And it is our commitment to share with you and bring you along for the ride as we continue to discover and firm up plans around initiatives like these. So stay tuned for more information here.

I would be remiss if I didn't hit on a couple of resources, we're going to hit on a couple of those because we had a hearty conversation today around what's available, what's coming here in the near term and where we're really looking to develop the solution over time. So I do want to let you know that we have some very quick hit demo videos available in our demo center. If you're struggling a little bit with how to apply Workiva AI to your critical daily complex workflows, check out really quick 2- to 3-minute ways that you can apply it for fast acceleration and automation of day-to-day manually in tasks.

I also want to let you know that reach out to your account representative and let them know if you are not enabled today. Again, because Workiva AI is embedded into the governed architecture and platform that you already trust is a safe space to experiment and to try out applying AI to the work that you do day in and day out. And to make it easy, we've even preloaded some resources right there in your interface. So if you want to download any and share with colleagues, please do so now.

And before we wrap up, I just wanted to give you a quick opportunity. Again, a lot of content was covered today. If we didn't answer your question in the chat and you believe it deserves a more hearty conversation, let us know, and we will reach out to you, schedule that and have that conversation. We want to make sure that you're equipped with confidence that we're driving this roadmap in the right direction for your business and your work because at the end of the day, that's what we care about.

And then, of course, on that note, I want to thank you for attending today. On behalf of Kevin, myself and the entire Workiva AI team, we're here to make you shine in your day-to-day role and make your work easier. So I appreciate the time and attention today. If you have requested that someone reach out, we will do so shortly. And if we didn't answer your question, please expect a follow-up post event. And with that, enjoy the rest of your day. Thank you so much.

All right. I think we can go ahead and get started. So my name is Christian Dudar. I am the office of the CFO software analyst here at Morgan Stanley and really excited to be joined here by Julie Iskow, CEO and President of Workiva.

Thank you very much. Happy to be here, and thank you all for choosing the session. Appreciate it.

Yes. So before we get into the interesting stuff for important disclosures, please see the Morgan Stanley research disclosure website at www.morganstanley.com/researchdisclosures. If you have any questions, please feel free to reach out to your Morgan Stanley sales representative.

So Julie, maybe to kick things off, for investors who maybe are not as familiar with Workiva, give us a quick overview of what you do, what your key products are, who some of your customers are.

Sure. Workiva has become the trusted platform for the office of the CFO. And what I mean by that is we have come to manage the data that matters most in the office of the CFO. We have an AI-powered platform and the focus areas are on financial reporting, nonfinancial reporting, regulatory disclosure, data accuracy and governance. And we have, let's see 66 -- over 6,600 customers today. We are a horizontal SaaS platform. every company in the world is a potential customer but we've also gone deeper into a number of the verticals. And you can imagine, given what we do, that we go into those verticals where there is -- regulatory environment is high and intends and, of course, complex for companies to implement. So that's who we are today and where we go. We manage the data that matters most in the office of the CFO.

Got it. I definitely want to dig into some of those verticals a little bit later. But maybe just to kick things off, let's jump right into AI. Clearly, a lot of investors are worried about displacement risk from AI startups, large language models. So from the Workiva perspective, what's your key competitive moat that makes you differentiated in the space.

Thank you for the question, of course, in everyone's mind. So we step back a little bit and look at who our customer is and who we serve, again, CFO, office of the CFO, and nowhere else in the company, is it a necessity to have data that is accurate. Marketing and sales, and you can go around every function in the company and where it is an imperative, where it is nonnegotiable, where it is table stakes to have accurate data, data -- not just data accuracy, data integrity, data consistency. You need to be able to justify your numbers, defend those numbers. You need data traceability you need data lineage for any data, any narrative, any change in the system at any point in time, you need to have that defensibility and traceability. And that's really where Workiva plays.

It's not -- yes, a system of record, yes, a trusted and essential system of record, but it truly is that those -- that the CFO, whether they're doing their quarterly or annual reports at a point in time like that or whether at any point in time, they want to even perhaps apply AI onto the data, they can be assured that data, again, is data accuracy, data integrity data consistency and full data lineage and is traceable back to source systems and the moment it entered the system, full audit trail auditors, you know your auditors can go in at any time and look into the system as well.

So that is very, very different than other buyer persona in the rest of the company and Workiva, our platform ensures that a CFO and the team can have confidence in that data which is critically important today as we're talking about AI, that you want to know when you fly AI, again, that data, those results you're going to get from the AI applications are again, going to give you confidence that they are from a trusted platform. And that's why we talk about it as the platform of trust in the office of the CFO.

Yes, your buyer needs that absolute certainty about your accuracy, the compliance, the risk mitigation, all those good things.

I will make the comment that we do have all the advantages. We have an incredible customer base, 95% of the Fortune 100, 85% of the Fortune 1000 that trust us already that have had their financial data with us for the last 10 to 15 years. So we have that. We have a lot of the, what some people like to think of a moat, but really buys you time rather than being the moat like the trusted data. So we have a lot of those advantages still, the system of record and the enviable and trusted customer base, but really what it comes down to when it is that moat, is that data, again, data accuracy data integrity and data traceability.

Let's talk about the opportunity side of AI. You all shared that 30% of your customers have now enabled AI in the platform. So give us a sneak peek to, what are some of those use cases, capabilities that they're using?

Sure. Yes, we have almost 30% of our customers using AI, meaning they've activated it and they've enabled it and they're using it to some extent. And the thing about Workiva AI is, I can talk to you about use cases all day long. I can tell you for each solution, some of the capabilities that customers are using, and we continue to roll the capabilities out as new technology comes as we think about new use cases. Quarter after quarter, you will see in our road maps as well that we have new use cases coming out to streamline work to improve processes to actually help customers work differently.

But I think the real unique part of the Workiva AI or the differentiator, if you will, is really that it's built into our platform. It's not bolted on. It's part of the platform embedded in the core of the platform for all users across every work stream and across every solution in the portfolio. So I think, when I think about our differentiation, happy to share road maps and show you specifically what customers are using to work faster, better and in fact, differently across the portfolio.

And what patterns are you maybe seeing with that adoption when a customer first adopts,turns on some of those AI features? How does that kind of ramp or look like?

Yes. Interestingly, not all of our customers are able to use AI. Some of their companies are still holding back on that. But what we find when we explain with Workiva that your data and your AI will remain in our controlled environment in our platform where you've held out your financial data and for years, that they do give in and are able to use it. In particular, of course, their data will not be used to train any of the models, and we offer multiple models. We offer customers choices of the models from 3 of the large language model providers so they get to choose the model they want, and they can be assured that their data will not be used to train any of those models.

And once they're in, we do see the pattern of using it and then increasing usage. So we're close to 30%, not quite there, 27-plus percent are using it, and we're continuing to see increasing patterns of usage once they get in and feel comfortable. And we love it because we get to see what they're doing. We get to see what's valuable for them, where they spend their time and it helps inform us on where we want to build out more capability and provide more value for the customer.

You've introduced a good, better, best kind of new pricing model with some of these AI capabilities featured in the higher tiers. So could you maybe walk us through how that model is performing? And what are you learning from customers' willingness to pay for AI features?

Sure. And this good, better, best model is just one way that we can kind of go after the opportunity we have for account expansion at Workiva, which is one of our most significant growth levers. And I will say before we even go into that form of pricing. I want to remind everyone that Workiva is not seat based. We are not a seat-based SaaS platform. We do price with -- on usage and value. And we've been doing that for 6-plus years now, so we're not a seat-based. So as I mentioned, we can extract value and provide value with this good, better, best model, is one way to capture growth and expansion.

The other way, of course, is selling more solutions across the portfolio or increasing the use -- customer can increase the use of -- within one solution. So we rolled this out about a year or so ago. And we are seeing traction at renewal time, we come to the customers and offer one of our more premium tiers if they're not already using some of that or all of that capability for that matter.

And we -- again, we've been seeing an uptick on it. We've saved -- an example is our SEC which is our flagship product. So we have put in that premium tier some of our advanced features, whether it's advanced AI, which is in there, capabilities that isn't in the core of the platform and offered to every customer. We might put in -- we have designed reporting there. We have financial statement automation. So we really pack the tiers with feature and functionality, again, to be able to provide more value to customers and, of course, then extract that value.

So yes, we're seeing an uptick in that in early days, of course. And then we're doing that in other areas of the platform as well. And again, it's a mechanism for us to be able to provide and extract more value for customers and really get their willingness to pay for the high features. It also allows us to meet a customer where they are. If you have a customer that isn't ready to take on the full expense of the feature and functionalities that we offer. We don't need to discount. We offer them a more bare bones model, if you will, an essential capabilities package.

Yes. One of the most interesting things you guys have talked about, at least from my perspective, has been, AI is now kind of serving as a competitive differentiator for you in some of your -- in your RFPs. I think you mentioned there was a defense contractor that you won because of your AI-powered like GRC capabilities. So how often is AI now a deciding factor for you all in those competitive situations?

I think it is becoming one of those table stakes items that we're seeing in RFPs and we get asked do you have AI, they're mostly interested in do we have it? Are we innovative? when they sign up with us, are they going to -- are we going to be one of those vendors that's going to continue to innovate and ensure that they can be doing their work with the state-of-the-art technology.

So it's that. But listen, a lot of our customers come from companies with legacy tech stacks and one of the reasons they want to move and modernize is because they want to leverage AI. And today, their data is siloed in different modules in point solutions or legacy modules, so they want to move over where their data is unified and they want to apply AI and they, too, want to ensure it's done in a controlled environment and be able to be assured of the trust, right, that our platform offers.

So it's become, yes, can we use certain feature functionality, but it's also, does your system have it? Can I use it when I get there? And is this the company that's going to be able to unify my data so that I can have it all in one place and get better insights leveraging AI, again, with unified data, which is one of our core differentiators from any of those point solutions and many of our competitors.

If we take a step back, one of the things that I really like about the Workiva story over the past few years is just your durability of growth, especially in the context of broader software kind of having a more meaningful slowdown, you all have been pretty durable over the past few years. So I think a lot of that has to do with the breadth and the platform that you now have. But curious from your perspective, what do you think has been really driving that durability of growth over the past few years?

Sure. You are spot on. I mean, at this point, we have 2 dozen solutions or so across the portfolio, right, across the platform. Every one of those is built on the platform. Every one of those is at least 80% of the platform, so they're all connected. The data is connected, it's a unified platform. And so that in and of itself, that the broad offerings that we have is really where a lot of that growth is coming from and it's a benefit.

It's not just that we solve a lot of problems, but we solve them at the same time together. And again, the unification of the solutions, the better together of the solutions the unified data, it's really core. And then when you, of course, put on the fact that all of that data is trusted in our controlled secure, again, audit-ready environment with traceability that's really a benefit.

But we've also expanded and grown because we've been going out more broadly geographically, right? We've moved into other geographies outside of the U.S. We're now around 27% of revenue outside of the U.S. So we've been growing there. We've been increasing our TAM and offering more capabilities. So that's another area we have a lot of untapped TAM to go after. So we've got a lot to offer customers. New logos is another area we've been pushing even though in the U.S. in the up in the hot market in the top 100, we have a lot of that customer. There is still a lot to grow in enterprise and they're still, again, geographically. So it's geographic, it's more customers. It's expanding our TAM. It's the multiple solutions we're just going everywhere pushing and there's a lot of opportunity.

We have a lot to sell, and we have a good value proposition when it comes to, again, unifying that data and offering the office of the CFO, the trusted data. And becoming, in fact, more relevant in the era of AI, not less.

I think you all have also gotten better at just selling the platform from a go-to-market perspective, too, right?

We have. Our own execution, certainly, as you move towards the $1 billion and barring anything catastrophic, we will be at $1 billion of ARR this year. I mean you just have to execute differently. You've got to be more productive, you've got to be more efficient because you want to use those resources in the best way possible for innovation, for speed for continuing to expand your TAM.

But we've been elevating the profile of person all across the company and probably talk about go-to-market at some point, particularly on the go-to-market side. We're leveraging our partners, of course, a lot more. Another reason why we're able to go expand and get larger deal sizes and so forth, they are a huge growth lever for us. I mean it's our strategy, right? It's our solutions on our connected open intuitive intelligent platform. It's expanding globally.

And of course, it's that strong, high-performing partner ecosystem. Those are all reasons. And yes, we're just getting better as we grow and scale or becoming that company that can execute more effectively in all areas of the company, particularly on the go-to-market side.

I said we will come back to some of those verticals that you mentioned earlier. So let's go into one of them, financial services. You have been doing really well there. Where are we in terms of like the penetration within that vertical? And how do you think about the opportunity set ahead of you, especially with some of your newer products like fund reporting.

Yes, thank you for calling out this vertical because it's one we've been incredibly enthusiastic about because we have seen so much traction. And as I mentioned earlier in the verticals that we like to go after. It's those with a lot of regulation where there's complex regulations. And if you think about banking and the regulation around that and insurance and investment, we're in all of those verticals because there's so much complexity.

And we shine around regulatory disclosure and helping our customers report with -- when there is that environment of complexity. So we've seen a lot of traction there. It's where most of our multimillion dollar deals are, large deal sizes. We have a lot of vertical-specific solutions, but of course, they also buy our horizontal solutions. So it's an area where we continue to put emphasis. There's a lot of room for growth there.

And though we have the top banks as our customers, we continue to grow in those accounts, a lot more to offer globally. They've got -- a lot of the top banks are -- have entities all over the world. So the multi-entity reporting and additional to financial reporting, and they -- we've got fund reporting and nonfinancial or sustainability reporting.

So all of those horizontals play really well, but they also are very much interested in having their corporate regulatory reporting across those specific verticals on the Workiva platform. Again, with unified data, not siloed in different vendors or different systems. And again, here comes AI. When you do all that, you can apply your AI in our controlled environment. The auditors can go in. You know at any point in time through the quarter, not just at the end that you can go in and get data that you can feel confident about.

And it's kind of a sacred place for the office of the CFO to go think about their data. With all that noise out there with data here, data there, this system, this agent. Ahh, Workiva, they know what's in that system and that it is, again, trusted data and they can justify any number coming out of that system all the way to when that data entered the system from a source.

Let's talk a little bit about GRC. The growth there accelerated meaning 19% to 30% ARR growth this past year. What's going on there? What has been some of the unlocks that drive that kind of growth inflection?

Sure. And I'll go back to your comment. You're getting better, right? Yes, we are getting better at execution. Again, get towards the $1 billion, you have to be good. You have to be productive. You have to have those sellers that can sell your capabilities, but also sell a platform, also embrace partners because partners help us go up higher in the organization, sell more broadly, higher win rate, et cetera.

So we've got better execution. We're also seeing trends in the market that lead us to have better outcomes with -- when we talk with our customers about GRC. And one I mentioned a little earlier, which is we've got this trend in the market around legacy systems. And again, AI is kind of spurring this on. You don't want to have your legacy systems and apply AI when your data isn't in the format and the shape that it should be to go action those insights and you've got siloed systems besides which.

So if you're going to modernize, Workiva is an incredible platform to modernize on, because you're not just getting modern technology, but you're also getting that data again in one unified platform. And this is why, again, I go back to when we talk about our moat, we're getting more relevant, not less in the era of AI because they want to have their data in one place and modernize their technology.

So we're seeing that. And again, just better execution, good market trends for us, and governance is becoming even more important to companies and that -- our audit and controls and risk management solutions just absolutely play into that trend. And again, not being a point solution, it's working in our favor for sure.

Let's sit on sustainability, gets a lot of investor intention. Remind us again how much of that is actually part of your business, how much of it is part of your TAM and how do you think about the evolving regulatory landscape that we're seeing and how you think about that business going forward?

Sure. I think important to recognize that sustainability even with the changing regulatory landscape, it is alive and well, and it's a good growth factor for Workiva, right? Our tailwind has dissipated some, and we've talked about that. We've had a moderation in the surge that we saw in 2024. But 2025, much more steady state for the market. There is still a regulation out there. And you look at CSRD, sure, the regulatory landscape changed a bit, and there was a descoping in that regulation, but alive and well for the Wave 1 customers who had to report in 2025.

This is the second year. We're going around having conversations with those that did not leverage Workiva that had muscled through and/or used some inferior technology platform. So that's a good area of growth for us. The Wave 2, nothing's changed substantially. Sure it's out a year or 2, but that's alive and well. There are other areas across the world, think of Australia. They still talk about ESG. They haven't even changed the name to nonfinancial reporting or sustainability yet. So there's a lot of areas.

But a lot of companies are doing this for business reasons still. It is risk management, is surfacing those risks, identifying those risks and managing and tracking those risks. That's what nonfinancial data is all about in those nonfinancial risks. And you've got to track them and you've got to be transparent about them. And so companies are doing that. They also know when they put their financial data and their nonfinancial sustainability data together in one system, and they look at those and apply AI, get insights from them, they get much more holistic view of their business than not looking at those capabilities and those -- that data.

So we're seeing a myriad of reasons why, but we are seeing customers understanding that it's an important component of their business. And even if it's just the box checkers and the compliers, we still get a large portion of that market because there is still regulation alive and well in the market.

SEC. What are you seeing in capital markets right now? How are you evolving that product? I think you launched SEC intelligence? What -- tell us a little bit about that as well.

Sure. On the capital market side, I think everyone in this room probably understands that capital markets had a few years of, I'll say, lackluster performance. IPOs weren't booming, and we saw that post pandemic. We did see more activity over 2025, particularly toward -- in Q3, it was probably our strongest quarter, which we talked about. Q4 saw some improved activity as well, but of course, we had a shutdown.

So there's a lot of macro factors that are affecting IPOs in our capital markets business. We always have the secondary markets, and we are getting our fair share and have over the last several years, our fair share of IPOs. So we're optimistic about the IPO market and our capital markets business rolling into 2026. We're not overshooting there. We're not over our skis with it, but we have baked in some growth over 2026, but we're waiting to see, again, new Fed share economy is what it is.

And of course, we're looking at tech valuations. So that will probably be moderated too, in terms of IPO activity. So we're being very thoughtful about how we've put it into our guide, but we're optimistic about it. On the SEC intelligence, again, just more offerings for our flagship product to bring more capabilities to those who are wanting to have advanced capability, who are more enthusiastic about using our AI, and we've put that in the top premium tier of our good, better, best model, where again, we're seeing uptick on it. Today, it's around the -- at renewal time, we'll come and see if you're interested in leveraging more capability.

Let's shift over to go to market. You talked a little bit about this earlier, but you all have been really focused on making some changes there. So could you remind us again, what are some of those key changes? And have you progressed against your initial expectations there?

Sure. We are working to improve our productivity on our sales and marketing. It's one of the areas where we believe we can improve the most. And I've been pretty open about some of the activities that we're doing in sales and marketing through the actions we're taking. We have a very expensive sales model where we have had this historically. So we're moving away from that towards more efficient, more productive, more effective sales model. And what we're doing is we're becoming less reliant on sales specialists for some of our solutions and we're leaning more on solution engineers and we're improving the capabilities of our account execs. So we're doing that. And that's sort of on the structure side.

We also rolled out new logo teams that are more hunters and dedicated to hunting for those new logos. So we're doing a lot on structure. We also doing staffing as I've been making some changes in staff and that might be elevating profiles of sellers, those that can embrace and understand the value of partners that will bring partners earlier in when we identify deals and when we want to expand accounts. They understand how to sell a platform and what that means and the value of the platform. So they understand different -- it's different than a transaction sell, just selling a solution or 2 solutions, right?

So we're just getting more mature across both the structure and the staffing in the organization, but we're also leaning into our strategy, whether it is in the new logo play, whether account expansion [ and they are ] just getting better. Again, when you start crossing that line of $1 billion, your productivity is important, your efficiency and your effectiveness is important. It's getting better at execution. We're growing up, and we're scaling, and that applies heavily into the sales and marketing. area.

Yes. So clearly, a big focus on efficiency. And you've seen that on the margin front, too, going from, I think, 4% to 10% in the year. Your guidance for '26, 15% plus, the '27 target of 18%. So what gives you the confidence to be able to continue to drive this continued margin expansion here?

I mean nothing better than looking at numbers, right? And you can see the expanding margins and the work we've been doing. We exited last year at 10%, as you say, a 560 basis points greater than the prior year 2024. So we feel very confident on the trajectory. We have plans in place. This is not, we're trying to do things ad hoc. We have plans in place. We feel very confident we put those medium- and long-term targets out there, and we are making very reasonable progress towards those that you should all be able to see as you look at our numbers.

So again, on the sales and marketing side, as you can see, we hired someone who's been there and done that, knows how to build a marketing machine, brought a new CRO in, Michael Pinto, who's been at the last couple of years at Databricks. Prior to that, he spent 6, 7 years at AWS, growing and scaling from a few hundred million to multibillion in both of those companies for the areas that he's had responsibility for.

So transforming and scaling our go-to-market organization is really why he's here and just building that machine. So we feel very confident in those numbers and the guide, we've reiterated our guide and reiterated those targets.

Let's talk about delivering shareholder value. How do you guys think about the balance between organic investments, M&A, capital returns?

Sure. We are here. I know my job is here for shareholder value. That is what it's all about and we do it with, of course, a number of different vehicles. But the thing we focus on the most, of course, is growth. And today, I am happy to say profitable growth. That is what we're focusing on. So it really is about ensuring we are productive part of that productivity drive for us. Yes, it's about expanding margin and make sure we are being thoughtful for shareholders, but it's also to make sure we are being productive to invest in the right places.

So we're going to be investing in innovation, going to be investing in that marketing and sales machine that I just talked about. We want the resources going to the right places where we believe we can win, where it's proven, we can win. So we're going to continue to invest. But we're also going to do it in a productive way. We're going to be efficient where we add. And of course, we're going to be leveraging AI where we can. We are going around the company to ensure that we are working productively.

We still have room for improvement. I will be the first to say there's room for operating efficiency and effectiveness, and we're going after it. And I said we have a plan. We will continue, of course, to be thoughtful about stock-based comp and dilution. You saw that we increased our ability to buy back our stock, got authorized for another $250 million on top of the $100 million that we already were authorized to spend. And we'll continue to, again, be thoughtful about that. We want to make sure that we are actively thinking about dilution, taking action towards.

Yes. I want to go a little bit deeper on stock-based compensation. It's not just you all, but the entire software industry stocks are down a bunch over the past year, 6 months. How does that kind of inform what you're doing in terms of like issuing units? Are you going to be issuing more units? Are you shifting more of your conversation to cash? How do you think about that?

Sure. We are acutely aware that this is a conversation going on these days, given valuations and so forth. So of course, again, we're being pretty thoughtful about it. You can see in our mid- and long-term models that we're looking at the 12% and feel very confident we can stay within that range. And we have been on the below-average side on the stock-based comp. Look, we're a tech company, where we retain talent and strive for that in this market like everyone else.

But we understand what's important. We understand the visibility of -- and we understand retention. But again, we just authorized the $250 million and we will be taking action on that as appropriate. And taking a very thoughtful approach. So we're well aware of that, and we'll act accordingly and responsibly.

So before I open it up to the audience here, we've coined this term the ERP super cycle to kind of talk about that large upcoming deadline of companies moving off of on-premise ERP systems to the cloud. I think 2024 was really strong for those migrations, '25, bit lower. I'm curious if that's also kind of your takeaway? And how do you think about those deals over the next 12, 24 months?

Yes, thank you for bringing that up. We love the ERP system upgrades or transitions. It's a great trigger for a buying moment for Workiva. I mean, usually, when you move off of an ERP system you evaluate if I was a CIO, when I did something big like that, I'd be looking at the full stack, you want to modernize your stack, you don't want to bring your new ERP system to a legacy stack. So it's a great opportunity to think through your disclosure system, your reporting system, but also a lot of these companies that are moving on to a new ERP or upgrading.

They've got all these, these large companies, they've got ERP systems in country that they've developed a whole stack of them. So they want to get away from those. And we have something called multi-entity reporting global statutory reporting that allows them to do in-country reporting and align with their larger new ERP system. So it's a great opportunity for Workiva. More and more, we're working to get in with our consulting and advisory partners get into their playbooks for when they go in and help in these enterprise customers, they've got the big 4 in there continually and these consulting advisory.

So we'd love to align with our big foreign consulting advisory partners to help go in as early as possible in the ERP transition cycle so that we can provide disclosure management, transparent reporting, but also things like multi-entity reporting too. So we fit very nicely into the ERP super cycle. So thank you for highlighting that.

And when you work with partners, higher win rates, the deal sizes are larger, too.

You said it. Higher win rates. We sell higher, we sell broader. We sell more higher prices, yes, twice the win rate. I mean, it is a beautiful match. They sell everything that we do. They do, but they sell the services around it. We sell the tech. So it's a beautiful relationship, and we have dedicated alliances that continue to get even more high performing across all of the big 4 consulting advisory and then, of course, the next tier with regional partners as well.

Any questions from the audience here?

Talked a lot and covered a lot.

All right. Maybe last one, Julie. As we reflect back on 2025, what are some of the key lessons you can draw from that in terms of what worked really well and what are some areas you're still looking to improve upon?

I look back on 2025, and it was so different from where we are today. I'm not sure any of those lessons apply other than just resilience, speed, innovation, lean into your relevancy. I think those are the things that I think about as a CEO is building a -- continue to build a resilient organization.

Leadership has got to be resilient. We need to be ready for anything. We need to respond in the market. We've got to remain innovative for ourselves for our customers and this relevancy of becoming even more important in the era of AI, not less. We've got to lean into this, and we've got to lean into what we do for our customers, we serve the office of the CFO.

We manage the data that matters for them, and we will ensure that we keep true to our mission, which is ensuring they have a trusted platform to leverage in all of this noise and all of the agents floating around and all of the data floating around, we are at that place where a CFO knows they can go and their data is, again, accurate, has data integrity and data consistency and is traceable and justifiable.

Awesome. I think we can end it there. Thank you so much, Julie.

Thank you. Appreciate all the questions. And thank you all for attending.

Good afternoon, ladies and gentlemen. Welcome to Workiva's Q4 2025 Earnings Call. My name is Bailey, and I will be your host operator on this call. [Operator Instructions] Please note that this call is being recorded on February 19, 2026, at 5:00 p.m. ET. 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 Q4 2025 Conference Call. During today's call, we will review our fourth quarter and full year 2025 results and discuss our guidance for the first 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 first 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 our best judgment 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. We closed 2025 with strong momentum. We delivered another guidance feat that reaffirms our position as a trusted platform in the office of the CFO. Our Q4 subscription revenue grew 21% and total revenue grew 20%, both compared to Q4 of 2024. For the full year 2025, we achieved 22% subscription revenue growth and 20% total revenue growth, well ahead of the guidance that we had set at the beginning of the fiscal year. We also delivered profitable growth. We had another quarter of accelerating margin improvement with a Q4 non-GAAP operating margin of 19%. This was a 160 basis point beat on the high end of the guide and a 1,170 basis point improvement compared to Q4 of 2024.

For the full year 2025, we delivered meaningful progress towards our 2027 medium-term model targets. Our non-GAAP operating margin was just shy of 10%. This is 440 basis points above the guidance that we had set at the beginning of 2025 and 560 basis points above full year 2024. Our Q4 momentum reflected broad-based durable demand across our AI-powered platform. It also reflected our customers' deepening commitment to Workiva as they transform how work gets done and how their most critical financial and nonfinancial data is managed.

Before I move into a few deal examples from the quarter, I'd like to address a broader narrative that's dominating conversations in the SaaS market. There's an emerging view that as AI changes how work gets done, traditional SaaS platforms become significantly less valuable and in some cases, obsolete. We understand that perspective. Many workflow tools that organize tasks, route information or summarize activity can increasingly be automated or agentized. However, this is not the category Workiva operates in. We operate where data needs to be trusted, traceable, defensible and audit-ready.

In an AI-driven world, what matters most to a CFO is an automation. It's confidence in their data. And as reliance on AI increases, trust in that data becomes even more critical, not less. CFOs and finance leaders and risk teams don't just need answers faster. They need answers that they can stand behind with confidence. They need data accuracy, data consistency, data integrity and data traceability. They need to be able to explain and defend any number at any point in time. That's where Workiva is fundamentally different. We're not just a series of workflows that can be automated or AI-ed away. We're a trusted platform where data is controlled, connected, auditable and governed by design. Every number, every narrative and every change is traceable with full lineage and accountability.

And more importantly, AI doesn't replace this foundation. It depends on it. And that's why as AI adoption increases, we believe Workiva becomes even more relevant, not less. Customers in the office of the CFO are choosing Workiva's platform because we're not just another app in the stack. Over the past 1.5 decades, we've become not just a system of record, but an essential and trusted system of record, a system of truth. In an era of AI, our customers need intelligence that they can trust within a platform and in an environment where accuracy, accountability and assurance are nonnegotiable. Workiva is just that, a platform of trust.

Let's now look at a few specific examples from Q4 that demonstrate how our platform is winning in the market and helping our customers solve their most complex reporting challenges. First, a global fintech and insurance brokerage firm has joined as a new platform customer, purchasing 5 solutions, including controls management, global statutory reporting, management reporting, policies and procedures and SEC reporting. This mid-6-figure deal is part of a finance transformation project focused on eliminating manual workflows and addressing reporting inefficiencies. The deal was a co-sell and will be implemented by a Big 4 firm. Second, a large regional bank and mortgage originator in the U.S. signed a mid-6-figure account expansion deal. A loyal customer for 13 years, this bank increased its annual spend with Workiva by over 150% by adding bank reporting, controls management, management reporting, SEC and carbon and sustainability reporting. This deal was a co-sell with a technology platform partner.

And third, a U.K.-based global pharmaceutical leader, who has been a Workiva sustainability reporting customer since 2017, signed a mid-6-figure expansion deal, adding controls management, ESEF and SEC reporting. This investment was made to significantly mitigate reporting risk and drive enterprise-wide efficiency. It included modernizing a manual reporting process involving over 200 collaborators. The deal was sourced and will be implemented by a Big 4 firm. While we're winning larger platform deals, our financial reporting specific solutions also continue to show strong momentum.

I'd like to highlight a few of our Q4 deals. First, a global transportation and mobility leader, who's been a loyal customer for 8 years, nearly tripled their annual spend through a mid-6-figure expansion for multi-entity reporting. The business driver for this deal was a critical need to move their complex global entity structure away from high-risk manual processes towards automated compliance. The advanced AI capabilities of the Workiva platform was a competitive differentiator in this opportunity. The deal was a co-sell and will be delivered by a Big 4 firm.

Second, a European-based global design and consultancy firm landed as a new customer with a multi 6-figure deal for multi-entity reporting. The primary driver for this deal was to streamline complex reporting across their global subsidiaries. This was a competitive win against a global provider of tax technology and other legacy systems. The deal was a co-sell with a regional technology partner. Third, we signed a multi 6-figure new logo deal for multi-entity and SEC reporting with a Brazilian industrial conglomerate and investment holding company. As a conglomerate, this business holds varying stakes in its companies, ranging from 100% ownership to minority interests. They operate in 19 countries, manage a hybrid of private and public reporting and must comply with multiple accounting standards, all of which lead to significant complexity in financial reporting. The deal was sourced and will be implemented by a Big 4 firm.

I'll move on now to highlight 2 deals in one of our vertical-specific solution categories, financial services. First, a global financial services provider offering fund administration signed a 7-figure account expansion deal for fund reporting. This was an eightfold increase in spend. This customer started with Workiva in December of 2024 with a small set of funds on the Workiva platform. The deal expands the Workiva solution firm-wide as they transform their investment reporting processes and transition from manual processes supported by Microsoft Office. The deal was sourced and will be implemented by a regional advisory partner.

Second, a U.S.-based professional services consulting firm landed as a new customer with a high 6-figure deal for fund reporting, controls management and tailored shareholder reporting. The driver behind this deal was to provide the firm with greater control over filings, enable faster turnaround for their customers and eliminate their dependency on dated solutions from their financial printers. The deal was a co-sell and will be implemented by a regional advisory partner. We also continue to see strong momentum with GRC.

I'll highlight a few of our Q4 account expansions. First, a top 5 Canadian bank signed a mid-6-figure expansion deal for controls management. A Workiva sustainability reporting customer since 2024, this firm more than doubled their spend with us with this expansion. The goal was to replace a legacy GRC platform to manage their SOX processes. Management of SOX at a bank of this size involves up to 3,500 tested controls and a complex set of reporting requirements. This deal was sourced and will be implemented by a Big 4 firm. Second, we landed a multi 6-figure account expansion deal with a U.S.-based industrial technology company for audit management, compliance management and policies and procedures. The driver of this deal was the streamlining of policies, internal audit and user access reviews. This was a competitive win over an enterprise SaaS platform provider. The deal was a co-sell with a global advisory and regional technology firm.

And third, a European-based medical supply company purchased a multi 6-figure account expansion for 3 GRC solutions, including audit management, controls management and operational risk management. This company started as an SEC reporting customer back in 2021. This account expansion has nearly tripled their spend with Workiva. This was a competitive win over a GRC platform provider, and it involves the migration of an ERP-based GRC solution. The deal was a co-sell and will be implemented by a Tier 2 accounting firm.

I'll turn now to sustainability. Last year, we saw the market navigate a changing political and regulatory landscape. As we've highlighted in past calls, we did see demand for sustainability reporting moderate in 2025 when compared to 2024 highs. As we look forward to 2026 and beyond, we remain optimistic on the strategic value of this market and our strong competitive position to drive growth. We see companies moving forward with more purpose now as they've gained greater clarity on the scope and the time line of regulations. Here are a few sustainability deal highlights from the quarter.

First, a top 5 global commercial real estate services and investment firm signed a mid-6-figure expansion deal for sustainability reporting and policies and procedures. This company is navigating several major global regulatory shifts that transitioned from voluntary to mandatory in the last 24 months, including the CSRD, the Australian mandatory disclosures and plans for the upcoming California climate disclosure rules. This company is also committed to be net 0 by 2040 and is strictly governed by the science-based target initiative. Their targets include a 50% absolute reduction in Scope 1 and 2 emissions by 2030 and a 55% reduction in Scope 3 emissions intensity by 2030. This deal was a co-sell and will be implemented by a Big 4 firm.

Second, a global diversified industrial company signed a multi 6-figure account expansion for multi-entity sustainability reporting. This 8-year loyal SEC customer has complex sustainability reporting requirements as they operate in 130 countries and across multiple business units, including energy, automotive, agriculture, mobility and data centers. The sustainability reporting drivers behind this deal include compliance with the CSRD, support for ratings reporting to MSCI and S&P Global and the upcoming State of California climate disclosure. The deal was a co-sell and will be implemented by a regional advisory firm.

And third, a European-based manufacturing company landed as a new customer with a multi 6-figure deal that included sustainability reporting and Workiva Carbon. The company's sustainability reporting requirements are for an end-to-end sustainability data management platform to streamline CSRD compliance, reduce manual workload and enhance reporting accuracy. This is a replacement for an existing GRC tool that they were using to muscle through their first year of CSRD compliance. The deal was a co-sell and will be implemented by a regional advisory firm.

To conclude our solutions section, let's look at the capital markets landscape. Q4 IPO activity was more measured compared to the uptick seen in Q3. We believe that this was influenced by the timing of the government shutdown. Workiva still remained a key partner in this space. We successfully supported high-profile listings and customers continued to purchase our S1 solution as part of their listing preparation process. Despite a tempered market, we continue to see healthy demand from private companies maturing their processes in anticipation of an IPO opportunity over the next 18 months. We believe a robust backlog of companies is waiting for the right conditions, and we stand ready to support them with our AI-powered platform and our purpose-built solutions.

Now before I move on to talking about our innovation, I'd like to remind you that Workiva does not have a seat-based licensing model. We've been pricing on value metrics and consumption for many years. Whether it's a customer's AI agent or a human, we charge based on volume and usage, not on who or what is interacting with the platform. As I mentioned earlier in my remarks, Workiva operates where accuracy, defensibility and accountability are required, making our platform even more relevant in an AI-driven world. Our relevancy is critical, of course, but so is using AI to both build, innovate and execute with speed and to ensure our customers have high impact, differentiating AI in our platform to do their most important work.

Unlike other companies who are simply bolting on AI, Workiva's AI capabilities are architected directly into the core of our platform. Customer adoption of our AI capabilities continues to grow, and we've accelerated the pace of AI product innovation. This quarter, we delivered several high-impact enhancements across the platform. First, we launched an AI-powered capability that analyzes queries and manages data directly within the Workiva platform. Customers are now empowered to leverage AI across their data, queries and tables to accelerate data preparation and surface insights.

Second, we're embedding and scaling additional AI capabilities across our GRC solutions. Newly launched capabilities enable users to automatically ingest, analyze and validate supporting documentation or in GRC terms, evidence for audit, risk and compliance processes. This transforms manual document-intensive tasks into an automated insights-driven process within a secure, centralized environment.

And finally, we continue to expand AI capabilities across financial reporting. Since AI is already embedded into the Workiva platform, no add-ins or plug-ins are required. For financial reporting, newly launched AI capabilities can be used to generate narrative insights and summaries for reports, get explanations of data and formulas through natural language interactions and leverage strong conversational querying, explanation and reasoning over data context and logic. All of these platform capabilities have the potential to drive meaningful impact across all of our financial reporting solutions. The market is moving fast on AI, and so are we.

Again, as AI adoption accelerates, the demand for trusted connected data will only grow. We believe this shift is a durable long-term tailwind for Workiva. As we roll into 2026, we do so with a few new players on the Workiva leadership team. In Q4, we announced 3 new additions, including Michael Pinto, who joined us in November as our new Chief Revenue Officer. As discussed on our Q3 call, Michael oversees Workiva's global sales, partnerships and alliances and commercial operations. Second, Deepak Bharadwaj joined us in December as our new Chief Product Officer. Deepak most recently served as Head of Product Management for Adobe's Document Cloud, where he led the launch of Acrobat Studio, an AI-driven productivity and creativity hub. Before Adobe, he spent several years at ServiceNow, where he played a key role as a General Manager in launching and scaling their successful employee experience platform.

And finally, Barbara Larson joined us in January as Workiva's new CFO. Barbara brings more than 20 years of experience in various finance leadership roles, scaling high-growth public software companies. Most recently, she served as CFO of SentinelOne. Prior to that, she spent a decade in finance at Workday, including serving as their CFO. We are thrilled to have her on our team. Barbara is on the call today, and she'll join us in a few moments to provide a detailed review of our financial performance. In addition to these new executives, in the last week of January, we appointed 2 new members to our Board of Directors. We announced that former Cisco and Autodesk CFO, Scott Herren, and former Workday Co-President, CFO and EVP, Mark Peak, will both be joining the Workiva Board in the coming months.

Scott and Mark both bring deep expertise in transforming and scaling high-growth public technology companies. They also have extensive experience, strengthening financial discipline and driving operational excellence. 2025 was a year of strong growth, operational resilience and meaningful performance improvement. I want to thank our employees for their unwavering commitment and their execution. In a volatile market environment, we remain focused on delivering value for our customers. We exited 2025 as a different company than we entered it. We are stronger, more disciplined and more agile. This progress positions us well to enter 2026 with momentum and confidence. Our continued innovation, durable growth, expanding profitability and sustained relevance all reinforce our position as the leading public software company serving the office of the CFO.

And with that, I'd like to give a warm welcome to Barbara Larson. She'll walk you through our financial results in more detail and our 2026 guidance. Over to you, Barbara.

Thanks, Julie. It's great to be here. After spending my first month with the team in the business, I'm energized by the opportunity ahead as we continue to focus on delivering both durable growth and improving profitability. I'll start with an overview of our financial and key metric highlights for the fourth quarter and full year 2025, followed by our guidance for the first quarter and full year 2026.

As Julie mentioned, we delivered a strong finish to the year. In Q4, we generated $239 million in total revenue, up 20% year-over-year and beating the high end of our guidance range by $3 million. Foreign currency fluctuations had an approximately 1 percentage point favorable impact on our reported growth rate. Q4 subscription revenue was $219 million, up 21% year-over-year. Both new customers and account expansions continue to contribute to our revenue growth with new customers added in the last 12 months, accounting for approximately 40% of the increase in Q4 subscription revenue, consistent with our expectations. Q4 professional services revenue was $20 million, up slightly versus the prior year.

In line with our strategy, we continued to grow our higher-margin XBRL services while we shifted lower-margin setup and consulting services to our partners. Our non-GAAP operating margin for the quarter was 19.1%. This beat the high end of our guidance by 160 basis points, driven by operating leverage from our top line outperformance and our continued focus on operational efficiency and productivity.

Moving on to our performance metrics for the quarter. We had 6,624 customers at the end of Q4 2025, an increase of 319 customers year-over-year. Our gross retention rate was 97%, exceeding our 96% target. And our net retention rate was 113% for the quarter compared to 112% in Q4 2024. Consistent with our reported revenue growth, there was an approximately 1 percentage point favorable impact on NRR due to foreign currency fluctuations. During the quarter, 74% of our subscription revenue was generated from customers with multiple solutions, up from 70% in Q4 2024. Growth in our large contract customer cohorts also reflected strong momentum. As of the end of the fourth quarter, we had 2,507 contracts valued at over $100,000 per year, up 22% from the prior year. The number of contracts valued at over $300,000 totaled 592, up 42% year-over-year. And the number of contracts valued at over $500,000 totaled 248, up 37% from Q4 2024.

Moving on to our full year performance. Total revenue for 2025 was $885 million, up 20% over the prior year. Similar to Q4, this result includes an approximately 1 percentage point favorable impact due to foreign currency changes. Subscription revenue was $813 million, up 22% year-over-year. At year-end, our current remaining performance obligations were $757 million, up 21% over the prior year. This growth, which reflects the revenue we expect to recognize in the next 12 months includes an approximately 3 percentage point favorable impact due to foreign currency. Professional services revenue was $72 million, relatively flat compared to the prior year. Consistent with our plan, we successfully shifted more low-margin setup and consulting services to our partners, which was offset by higher XBRL services year-over-year.

We also had another strong year of international expansion. Total revenue outside the U.S. was 27%, up 300 basis points compared to the prior year. Our full year non-GAAP operating margin was 9.9%, beating the high end of our guidance by 50 basis points. This result is also 440 basis points above the high end of our original full year guide that we set on the Q4 call last year. We have made meaningful progress toward our 2027 operating margin target in the last year, and these results reflect our ongoing commitment to operational rigor as we continue to scale and mature the business.

Moving on to the balance sheet and cash flows. As of December 31, 2025, cash, cash equivalents and marketable securities were $892 million, an increase of $35 million over the prior quarter. For the full year 2025, we delivered a free cash flow margin of 15.6%, which beat our guide by 360 basis points and represents a 390 basis point improvement year-over-year. This outperformance was driven by 2 factors; first, favorable working capital timing related to customer payments and tax impacts; and second, improved operational efficiencies across the organization. During the fourth quarter, we deployed a portion of our free cash flow to repurchase 131,000 shares of our Class A common stock for $12 million. This brings our full year total to $72 million under the share repurchase program authorized in July 2024. As of December 31, $28 million remained under the original $100 million authorization.

In February, our Board authorized a $250 million increase to this program. This expansion reflects our confidence in Workiva's intrinsic value and the durability of our business model. While we remain focused on investing in growth and innovation, our strong free cash flow profile enables us to return capital to our shareholders while effectively managing dilution through opportunistic repurchases.

Turning now to our outlook for Q1 and the full year 2026. Our performance throughout the year and the momentum we generated exiting 2025 sets us up well for 2026. I'm partnering closely with Julie and our leadership team to ensure we execute on Workiva's commitment to delivering both durable top line growth and expanding operating leverage across the business. With that in mind, for the first quarter of 2026, we expect total revenue to range from $244 million to $246 million. We expect services revenue to be relatively flat compared to Q1 2025. And we expect non-GAAP operating margin to be in the range of 15.5% to 16%.

For the full year 2026, we expect total revenue to range from $1.036 billion to $1.04 billion. We expect subscription revenue to grow approximately 19% year-over-year. And similar to 2025, we expect total services revenue will be relatively flat year-over-year. We expect our non-GAAP operating margin to range from 15% to 15.5%. This 560 basis point year-over-year improvement at the high end reflects our ongoing commitment to drive operating leverage as we scale the business and make meaningful progress toward our medium- and long-term financial targets. We expect 2026 free cash flow margin to be approximately 19%. For additional details on seasonality and other model assumptions, please see our quarterly investor deck available on our IR website.

Finally, the company's 2027 and 2030 financial targets outlined at the Investor Day in September remain intact and unchanged. To wrap up, our 2025 financial results are a direct reflection of our commitment to profitable growth at scale. Our platform continues to resonate with offices of the CFO around the world, and I'm incredibly excited to have joined Workiva at this pivotal moment in our journey. As we look toward 2026 and beyond, we're entering our next phase of growth as a $1 billion revenue company, on track to achieve GAAP profitability this year.

My team and I are focused on driving the operational maturity and disciplined execution required to scale the business efficiently and drive durable long-term value for all of our stakeholders. I look forward to meeting many of our analysts and shareholders in the coming weeks and months ahead. Thank you all for joining the call today. We're now ready to take your questions. Operator, please open the line for Q&A.

[Operator Instructions] Our first question comes from Rob Oliver with Baird.

I had 2 questions. Julie, one for you and then Barbara, a follow-up for you. So Julie, I appreciate your commentary relative to AI and Workiva's positioning. I'd like to ask specifically about some of the new wins, obviously, the contributions to subscription in Q4, but notably the multiproduct platform wins, the 6-figure wins that you guys had in the quarter and called out in your prepared remarks. Can you talk about how AI is playing a role in those discussions, if it's functionality that's being employed today, if it's part of your road map going forward? What are customers looking to you for today on AI as a component of those deals?

Sure. Thank you for the question, Rob, and good to have you on the call. I think first off, those multi-solution account expansions, large customer wins are happening with the broad-based platform. You're asking specifically around AI's contribution. I will tell you this, of all the customer conversations I have, AI is a topic -- a strong topic of conversation. It they have to happen and they're ready to move in this moment, but they are buying because they know Workiva focuses on innovation, and we have it and we are demoing those. So adoption is increasing simply because now there is a recognition that they can use it in an environment that is safe and secure, and it applies to all of the information across the portfolio of solutions.

So it's absolutely playing a role in the buying decisions. I believe I highlighted one on the call today in my remarks earlier that it was a significant reason for the win. The other part of the question was around the -- how it's showing up in the product. And as you know, we adopted a good, better, best model when it comes to pricing and packaging. And we have our AI capabilities in the premium tier, and we have that across all categories on our platform, sustainability, financial reporting as well as GRC. And we're seeing some strong traction in the premium tiers.

Great. I appreciate that, Julie. And then Barbara, welcome a question for you. Just your comments about efficiency and productivity and the commitment to operational rigor. Just be curious, having had some experience at bigger companies and now stepping in here to the role at Workiva, as you look at the financial targets in '27 and '30, which you've reiterated, looking at the business, where do you see the opportunity for continued progress on that operational rigor and margin side? And what are some of the areas that sort of stand out to you?

Rob, thanks for the welcome, and thanks for being on the call. I definitely appreciate you calling out the progress. We certainly feel like we're well on our way to achieving those 2027 and 2030 targets. And then in terms of where we expect to see the leverage. It's kind of more of what we have been seeing in 2025, really across the business. And then, of course, we have opportunity to drive more productivity in the sales and marketing side.

Our next question comes from Terrell Tillman with Truist Securities.

Welcome aboard, Barbara. Yes, I had a question and a quick follow-up. I was hoping we could touch on Michael Pinto. I know he's still kind of relatively new in the role to really lead the go-to-market efforts as CRO. But I was just curious if we could get just some early observations, maybe some areas where he's focusing and potential timing of impact from some of those efforts? And then I had a follow-up.

Sure. We are very happy to have Michael joining us on the team with his strong background in transforming and scaling high-growth SaaS companies and certainly to the multibillion where we are headed. His mandate is really multifold. The first thing is just building a strong team that can scale globally. He is also here to help strengthen our partner ecosystem and importantly, refine sales plays in various regions around the world. And focus too, because of his background in AWS and Databricks, focus on our place in the data ecosystem, which is becoming increasingly important. And then overall, just scaling and strengthening our go-to-market machine. And he's been going deep into the business. He's looking around in every function, in every area under the commercial team, and already bringing significant insight and opportunity here.

So we're very happy with the progress he's made to date, and we're looking forward to seeing what he's going to be contributing very soon over the coming quarters.

That's great. And I guess, Barbara, in terms of anything you can share about NRR directionally in '26 as part of the plan? And then would there be any discernible shift from that new customer contribution at about 40%?

Thanks for the question, Terry. So for 2026, we're modeling the business at 96% for GRR and 110% for NRR, and we're striving to maintain that going forward. And then your question in terms of the split of the business, more of what we've been seeing, so about 60% new, 40% from expansions, but that can shift -- sorry, opposite, 40% new, 60% expansion. But any given quarter, we can see that shift a little bit.

Our next question comes from Alex Sklar with Raymond James.

Julie, first one for you, following up on Rob's question around your growing AI capabilities. What have you seen in terms of usage so far from those initial features you launched with customers that have had access? And how should we think about how incremental your AI road map plans are for 2026 based on some of the prepared comments in terms of the monetizable opportunity there?

Sure. So we do have a lot of interest in our AI capabilities from customers. And as I mentioned, continue to see increasing adoption and use once they recognize it's in the trusted controlled environment. To date, we've got almost 30% of our customers having enabled AI on their platform. And again, once they enable and adopt, we continue to see increasing use. So we've had great feedback on what we've rolled out, a lot of those features. We announced several of them at our customer conference, Amplify, the last quarter last year and continue to work with the customers just to expand their use of our AI capabilities.

And importantly, we're learning what capabilities bring the highest value and deliver AI that's actually going to drive impact. And as we do that, we can put our investments in that direction. And certainly, we're able to put those in the upper tier of our offerings and ensure that we're getting our value for the value that we're bringing them. And we're going to continue to do that. And yes, ultimately monetize our AI capabilities. So thank you for the question.

Okay. Great. And then maybe for you or Barbara, but on the strong bookings exiting the year, if you had to disaggregate some of the drivers, how much do you think is already coming from some of the go-to-market changes that you started on a little over a year ago? How much is coming from the new packaging efforts or from partners or just from broader multi-solution sales? Like how would you stack rank some of the biggest contributors to the bookings growth?

I will take that one off and just say -- it is broad-based around solutions. As Barbara mentioned, the mix of the new logos and expansion, we're focused on both. So it's coming from, again, our multi-solutions across the platform, and it isn't 1 or 2 standouts. And the changes that we have been making to increase operating leverage and increase productivity have been continuing on and progressing. So much of it is around our own execution. Our partner ecosystem continues to strengthen. So it isn't one thing. It's broad-based. It's all the actions we've been doing to get stronger ourselves, build our teams, get higher profiles of individuals out there with feet on the street, those who sell with partners, focusing on the platform play because that is resonating in the market. So just going after our opportunity in a stronger way with the full breadth of our platform is really what it is, just getting better.

Our next question comes from Adam Hotchkiss with Goldman Sachs.

Julie, I wanted to start on the capital markets environment. I know you mentioned Q3 was strong, Q4, a little bit softer, but some, I think, strong expectations for next year. How should we think about what is contemplated in 2026 from a guidance philosophy perspective around capital markets? And then I had a quick follow-up.

Sure. One of the fun topics we get almost every call, what's happening with cap markets. When will it come back? Is it back? And we did see a moderation of IPO activity in Q4 relative to a stronger Q3. But we're really encouraged by the number of companies that we've been speaking to that are considering IPF -- IPO activity in 2026. And so the simple answer is, yes, we've incorporated into our guide. We're anticipating some growth this year, but we also recognize there are just a lot of factors and market variables that might impact that rate of growth. So I'll say is we're optimistic about the IPO momentum as we kick off 2026, but there are a lot of macro dependencies to sustain the growth throughout the year. And I can name a few, we have a new Fed chair, economic instability, those kinds of things. So they're all weighing new valuations in technology companies is one. So a number of factors, but we do feel very optimistic from the customer conversations that we've had.

Okay. Fantastic. And then as we sort of look at the margin progression, it does feel like you're progressing a little bit ahead of schedule on the margin side relative to the 2027 guidance. Barbara, I realize you're early into the role, but any early observations on how that's going? And maybe even Julie, given you've been involved on the operational side, just learnings as you've been going through the margin expansion piece, anything that surprised you or been encouraging through that process?

Yes. I'll start that out. We're really pleased with the pace of operating margin expansion we've been able to deliver in 2025 as well as what we're guiding to 2026. So we've definitely shown our ability to drive operating leverage, and we're confident that we will continue to do the same and meet those medium- and long-term targets.

The next question comes from Steve Enders with Citi.

I guess to start, I just want to ask on, I guess, the guidance philosophy and Barbara, I appreciate you coming on board to an already established team. But any kind of change in how you approach the guide and what's being, I guess, contemplated here from -- versus prior periods?

Steve, thanks so much for the question. Our guidance philosophy hasn't changed. It continues to reflect our best view of the business at a specific time. I've inherited a very strong finance team. I've been working closely with them as well as with Julie and the rest of the leadership team, and there's clear continuity in how we approach our outlook.

Okay. Perfect. That's great to hear. And then maybe just on the updated pricing model and the good, better, best. Just I guess, what have you seen so far from customer uptake of, I guess, that program? And kind of, I guess, what are the assumptions that you're making moving forward in terms of how that kind of plays out in converting customers up to higher tiers?

We -- as I mentioned, we're seeing uptick in our more premium tiers. We're putting in advanced capabilities, and we've seen a lot of traction, and it is contributing to the momentum that we're seeing that we exited 2025 with. So we're very optimistic, a good way to get more of our value to the customer and again, get value on our end. So we've, again, rolled it out for GRC, for financial reporting and sustainability. And it's also a good way for us to take some learnings from AI that we put in those tiers, and we see the customers focusing in certain areas of the platform and certain capabilities, so we can take that to build even more valuable offerings for the customer. So it helps in both ways, getting value, but also helping us understand more what will resonate with customers and bring even more value.

Our next question comes from Daniel Jester with BMO Capital Markets.

Welcome to the call, Barbara. Look forward to working with you. Maybe just on the verticals piece, Julie, you talked about financial services. And I think you talked about financial services throughout a lot of 2025. Can we just spend a moment there sort of regauging kind of where we are in that opportunity? And as we think about 2026, how do the verticals stack up relative to the other growth opportunities you have?

Sure. Well, I will mention financial services, Dan. Thank you very much for the question because I love to highlight is why I highlighted on the remarks earlier. We just continue to land both large new logos and account expansion deals in financial services. We co-sell with partners in this vertical, and we have a lot of regulatory use cases in addition to, of course, our horizontal solutions. It's just been a great story for us, a great growth story. It includes mid 6-figure and 7-figure deals with our fund reporting solution shown strong performance this year. And just in general, the trends are multi-solution large deals focusing on regulation and of course, our partners. I gave a few deal examples, too. And I do -- this has been our strongest vertical to date. And we're going to continue to move into verticals. We have a few others that we're increasing our investment in as well. So a good area for the Workiva platform. But our horizontals go in every sector of the economy, and that is front and center, of course.

Great. And then maybe, Barbara, just on the guidance, FX has been impacting the business for the past couple of quarters, including sort of the big impact on RPO and cRPO this quarter. What's embedded in terms of FX in terms of the guidance? And is there anything you'd sort of call out for us as we update our models?

Yes, absolutely. So our guidance for 2026 assume that our FX rates remain consistent with January 2026 rates. So that's the same approach the team has used historically. And then consistent with our standard reporting, we'll provide the specific FX impact on our actual results.

Our next question comes from Allan Verkhovski with BTIG.

This is Nick Dannewitz on for Allan here. Just one question on my end. You guys are doing a really good job adding multiproduct customers. And I was just wondering what kind of role does that play in increasing NRR? And how should we think about the ceiling for multiproduct customers as a percent of your subscription revenue base?

Sorry, can you repeat the question, Nick? We couldn't understand it. Allen, sorry. Nick on for Allen.

Yes, no worries. So you guys are doing like a really good job adding multiproduct customers. I was just wondering like what kind of role does that play in increasing your NRR? And how should we think about the ceiling there for multiproduct customers as a percent of your subscription revenue base?

I assume you are talking about margin -- or excuse me, account expansion is what it sounds like?

Yes.

So I think we can just talk about new logos first, right? Again, 45% of our customers have -- or excuse me, 2 or more solutions. And when we do expand -- so we have a lot of opportunity still in the 55% that have -- only have one. So we're focusing there. And then we, of course, continue to expand with the new logos as well. But the account expansion is a key focus of effort on our end. There's just a tremendous amount of opportunity to go after. We have a lot to sell a couple of dozen solutions. And as I just mentioned, in financial services, it's an area where we're seeing significant account expansion.

Our next question comes from Brett Huff with Stephens Inc.

Can you hear me? I'm getting some feedback. Do you get me okay?

Yes, we can hear you.

Okay. Great. And welcome to the slate of new team members. So I hope things are going well. Two questions. One, to follow up on the helpful 30% of customers are using AI in some way, and they seem to be increasing usage. You mentioned monetization, but as you might expect, it's on the tip of the tongue of all of the investors with whom we speak. Can you remind us or maybe fill out your views on kind of mix of monetization, be it -- you mentioned getting folks into premium additions. Can you talk a little bit about any consumption-based pricing as folks worry a little bit about gross margins and things like that? So that's question one. And then the second question is on GRR. As you all do more bigger deals and you do more multiproduct deals, are you far enough into that motion to see what I suspect are positive impacts on GRR yet?

So I'll take the pricing question. And as I mentioned, we don't have seat-based licensing. We're already usage-based, whether it's a number of controls, a number of entities, number of connections and integrations that our platform connects with. So the seat-based is not an issue for Workiva. We've been usage-based now for 6, 7 years. And the other way we've been pricing is also, again, the good, better, best model, putting more feature and capability in the more premium offering. So that's how we've been handling our pricing and the packaging.

And I'll just comment on GRR. We continue to have strong GRR, and we're building that into our model going forward.

Great. Thank you. Operator?

This concludes our question-and-answer session. Thank you for attending today's presentation. The call has now concluded. You may now disconnect.

Good afternoon, ladies and gentlemen. Welcome to Workiva's Third Quarter 2025 Earnings Call. My name is Chuck, and I will be your host operator on this call. [Operator Instructions] Please note that this call is being recorded on November 5, 2025, at 5:00 p.m. Eastern Time. I would now like to turn the meeting over to your host for today's call, Ms. Katie White, Senior Director of Investor Relations at Workiva. Please go ahead.

Good afternoon, and thank you for joining Workiva's Q3 2025 Conference Call. During today's call, we will review our third quarter results and discuss our guidance for the fourth quarter and full year 2025. Today's call will include comments from our Chief Executive Officer, Julie Iskow, followed by our Chief Financial Officer, Jill Klindt. We will then open up the call for a Q&A session, where we will be joined by Mike Rost, our Chief Strategy Officer. After market closed today, we issued a press release, which is available on our Investor Relations website, along with supplemental materials. 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 fourth quarter and full fiscal year 2025. These forward-looking statements are based on our assumptions as to the macroeconomic, political and regulatory environment as of today, reflect our best judgment 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. In Q3 of 2025, we delivered another quarter of strong financial performance, powered by the continued demand for our broad portfolio of solutions and our AI-powered platform. We beat the high end of our revenue guidance with 23% growth in subscription revenue and 21% growth in total revenue. On a year-to-date basis, we've delivered 22% subscription growth and 20% total revenue growth. This performance underscores the resilience of our business and the focused execution by our team at Workiva and our partners. As a result of the Q3 revenue beat, we're increasing our full year 2025 revenue guidance. We continue to deliver value to the market because we focus on customer needs. Our customers need to trust the numbers they're disclosing. They need to provide transparency across their business, both financial and nonfinancial information.

And yes, they must be accountable with assurance as a requirement every step of the way. So our customers are looking to us and our platform to solve their most challenging problems. This value we deliver to our customers is highlighted by the continued growth in our large contract cohorts. In Q3, the number of contracts valued over $100,000 increased 23%. Those over $300,000 increased 41% and contracts valued over $500,000 increased 42%, all compared to Q3 of 2024. This large contract growth was driven by both additional solution sales within our existing customer base and the landing of larger new logo deals. At the same time, we delivered a non-GAAP operating margin of 12.7%. This is a 470 basis point beat on the high end of our guide. It's also an 860 basis point improvement compared to Q3 of 2024. With this margin beat, we're raising our full year 2025 non-GAAP operating margin guide by 200 basis points at the midpoint.

These results reflect our continued focus on durable growth and meaningful margin improvement. They also demonstrate tangible progress toward our medium- and our long-term operating margin targets. We believe that our disciplined execution and our operating rigor position us to deliver additional leverage over time. I'll move on now to provide some representative Q3 deals. These customer wins provide meaningful insight into our business. They highlight the breadth of our solution portfolio, the location and the types of customers that we're selling to and the role that our partners play in the adoption and the success of our platform in the market. I'd like to start off with a few deals that demonstrate our continued success as a global platform company.

First, a top 5 global pharmaceutical company signed a mid-6-figure 2-solution account expansion deal for sustainability reporting and policy management. Already a 13-year loyal SEC reporting customer, they nearly tripled their spend with the platform expansion into the GRC and sustainability solution categories. This global organization invested in the Workiva platform to support their sustainability road map. The road map includes requirements across CSRD, ISSB and other local requirements in some of the 100-plus countries in which they operate. The deal was sourced and it will be delivered by a Big 4 firm. Second, a North American telecommunications and media company signed a mid-6-figure account expansion deal for 4 solutions. The deal included audit management, controls management, operational risk and sustainability. This 9-year loyal SEC customer more than doubled their spend with this account expansion and now uses 6 solutions on the platform.

There were several business drivers behind this deal. They included replacing multiple GRC solutions and consolidating on a single platform to drive efficiency and cost savings, enabling risk mitigation across sustainability and operations and providing support for an integrated annual report, combining both financial and nonfinancial information. Workiva was the only solution evaluated that could address all 3 of these requirements on a single platform. The deal was sourced and will be implemented by a Big 4 firm. And third, we closed a high 6-figure expansion deal with a European-based energy services company. The deal covers 6 solutions: sustainability reporting, controls management, enterprise risk management, policy management, compliance and operational risk management. The customer first adopted Workiva back in 2022 for ESEF reporting. It has since increased its annual spend more than eightfold, now exceeding $1 million in annual subscription revenue.

This was a competitive win over multiple GRC solution providers and multiple sustainability reporting solutions. The deal was sourced and will be delivered by a Big 4 firm. Our deal momentum extends beyond platform-wide wins. We continue to land and expand with the financial reporting category, which remains a durable growth area for us. A key financial reporting driver is our multi-entity reporting solution, purpose-built for multinational organizations managing complex global structures and operations. A strong Q3 example of a multi-entity reporting deal is a 7-figure expansion with a leading global oil and gas company. This customer more than doubled its spend and now leverages 6 Workiva solutions. As part of a multiyear financial transformation tied to ERP consolidation and an S/4HANA migration, Workiva will enable the modernization of their local statutory reporting across 300 legal entities. This deal was sourced and will be delivered by a regional consulting firm.

Another example of our multi-entity reporting deal momentum is a mid-6-figure account expansion with a U.S.-based global manufacturing company who's been a Workiva customer for 14 years. The deal adds 2 financial reporting solutions, multi-entity reporting and regulated financial reporting, and it increases the customer's annual spend nearly fourfold. Both solutions replace legacy manual processes previously managed through desktop tools. The deal was sourced and will be delivered by a regional consulting firm. Expansion deals aren't the only driver of financial reporting growth. A strong new logo win in Q3 was a solution deal with a European export credit Corporation. The customer adopted Workiva for SEC reporting, ESEF reporting, bank regulatory reporting and sustainability. They're pursuing 2 major initiatives, standardizing SEC and ESEF reporting on a single platform and preparing for CSRD compliance as a Wave 1 filer. Workiva was the only solution evaluated that could support their integrated reporting requirements across both sustainability and financial reporting. This deal was a co-sell and will be delivered by a Big 4 firm.

I'd like to move on now to one of our vertical-specific solution categories, financial services, and I'll highlight just a few of our Q3 wins in this vertical. First, we secured a mid-6-figure new logo with one of Europe's top 10 banks. The customer adopted 5 solutions: SEC reporting, ESEF reporting, sustainability reporting, multi-entity reporting and bank regulatory reporting. The deal replaces multiple on-premise systems and manual spreadsheet-driven processes. Multiple Big 4 and global consulting firms participated in the co-sell effort. Delivery is to be executed through several Workiva partners. Second, we closed a 7-figure new logo deal with a European fund services administrator. This was for fund reporting. This was a competitive win over the incumbent on-premise software solution. The customer selected Workiva for 2 key reasons: our ability to scale reporting across 2,500 funds and our platform's clear differentiation from legacy technology. The deal was sourced and will be implemented by a Big 4 firm.

Turning to sustainability. Demand remains steady as organizations respond to expanding stakeholder expectations and evolving regulatory mandates. First, a top 5 global payments provider signed a 6-figure expansion for Workiva Carbon. They purchased our carbon solution to support multiple regulatory frameworks as well as the California climate disclosure rules. The deal replaced a legacy carbon accounting system and represented a competitive win over 4 alternative solutions. The customer has been publishing a global impact report for 7 years aligning its disclosures with GRI, SASB, UNGC and the UN SDGs. But it found that its prior carbon accounting system was insufficient to meet the evolving requirements. This deal was a co-sell and will be delivered by a Big 4 firm. Second, a top 5 Australian bank signed a 6-figure expansion for sustainability reporting. It was to meet the new Australian sustainability reporting standards, AASB S1 and S2. These standards require sustainability disclosures within annual filings, and they cover governance, strategy, risk management and Scope 1, 2 and 3 emissions.

Australia's approach demonstrates how regulators are embedding sustainability into financial reporting through ISSP alignment. Approximately 1,000 organizations qualify as Group 1 filers with the first mandatory reports due June 30 of 2026 for June year-end entities. This deal was sourced and will be implemented by a Big 4 firm. Let's move on now to GRC, which in Q3 included several notable wins. First, a U.S. financial holding company signed a mid-6-figure expansion for enterprise risk management, A Workiva SEC reporting customer since 2012, a this firm has expanded into 7 solutions across the platform, including multi-entity reporting, living will, stress testing, bank regulatory reporting, sustainability reporting and now enterprise risk management. This most recent expansion increased annual spend by 25%. The new solution will centralize 45 internal enterprise risk reports covering risk metrics, categories, subcategories and risk statements. The deal was a co-sell and will be implemented by a Big 4 firm. Second, a U.S.-based regional community bank signed a multi 6-figure expansion for 3 GRC solutions, controls management, operational risk management and policy management,

A 13-year SEC reporting customer, the bank now uses 5 Workiva solutions. This expansion more than tripled its annual spend. The deal was sourced and will be delivered by a regional consulting firm. Wrapping up our Solutions section. Here are a few highlights on capital markets. Q3 saw a notable uptick in IPO activity. Workiva supported several high-profile IPO listings, including Sigma, HeartFlow and shoulder innovations. For Workiva, an improving capital markets environment extends well beyond the S-1 filings. First, we engaged with private companies years before they go public, through our private company reporting and internal control solutions. We believe that a stronger IPO outlook increases the incentive for companies to invest early in scalable reporting processes. And second, more SEC registrants expand the addressable market for additional Workiva solutions, including SEC and SOX reporting, even in instances where we're not directly involved in the S-1.

We are encouraged by Q3 IPO activity and the economic environment supporting the rebound. We're optimistic that the IPO momentum will continue into Q4 once the U.S. government shutdown ends. Let's shift focus to discuss innovation. In September, we hosted Amplify, our annual user conference. We welcomed over 2,300 customers, partners and investors in Washington, D.C. We showcased our commitment to innovation, and we launched product enhancements to continue to meet and exceed our customers' growing expectations. During the event, we announced several agentic AI extensions, and we launched Intelligent Finance Intelligent Sustainability and intelligent GRC. Each delivers specialized fit-for-purpose capabilities that enhance customer speed, agility and confidence. These offerings leverage the fact that the Workiva platform is intelligence ready. Being intelligence ready means that all data and narratives are structured, consistent, traceable, interpretable machine readable and built with context, not just content.

This is what differentiates Workiva. Our reports are structured, validated data products, not static documents, They allow AI and automation to read, reconcile and publish with lineage embedded controls and regulator grade assurance. We also embed global frameworks and taxonomies directly into the platform, transforming every report into a machine interpretable data product. As a result, AI can operate without guessing what's material, how metrics are defined or how to compare them. With Workiva AI at the core of our unified platform, we're delivering an intelligent companion that enables customers to achieve their most critical outcomes faster and with confidence. A great example of how our AI capabilities are driving value to our customers is a Q3 multi 6-figure new logo win with a rapidly growing privately held defense contractor. The customer purchased 4 solutions, controls management policy management, compliance management and private company financial reporting.

It was our AI-powered GRC capabilities that differentiated us from the competition. This company is building their first controls management framework. They're creating company policies and building a compliance program for the cybersecurity maturity model certification. This is a prerequisite for doing business with the U.S. military. By leveraging Workiva AI, including the AI-powered control creator, the customer will author and implement policy control and compliance frameworks in-house, reducing reliance on third-party consulting spend. At Amplify, we also hosted our Annual Investor Day. We detailed our commitment to both durable growth and improved operating leverage. Our recent margin progress in 2025 reflects the disciplined approach we've been taking to achieve greater operating leverage in the business. Since the start of the year across every function every department and every team who have been focused on 4 themes.

First, organizational and operating model redesign, We're simplifying span of control and reducing layers. We're evolving the operating model across sales, customer success and R&D and we're putting a greater emphasis on performance management. These ongoing efforts will provide a structure that reduces duplication and strengthens execution; second, process streamlining and automation. This includes both single and cross-functional initiatives. We're streamlining and improving workflows and leveraging technology where it brings value. And yes, that includes the automation of routine tasks and the use of AI. Third, optimizing product and go-to-market resources. We're sharpening our investment discipline so that we can direct resources towards initiatives with the highest likelihood of success and the greatest customer value.

And finally, more focus on fiscal discipline. We're exercising greater financial discipline across all functions. Together, these focus areas are designed to increase productivity as we grow and scale and drive greater operating leverage across the business. By functional area, here's a quick summary of our productivity initiatives. For cost of sales, we're scaling digital support optimizing cloud computing costs and shifting low-margin setup and consulting services to our partners to get greater leverage. For R&D, we're focused on workforce diversification engineering productivity and scaling our operating model.

Finally, we do recognize sales and marketing is where we have the largest opportunity to drive additional efficiency and productivity. Our approach is practical to minimize the risk of disrupting growth as we continue to focus on capturing our large and expanding TAM. We've targeted 3 areas to improve sales productivity. First, transitioning to a more efficient sales structure and creating better alignment of sellers to territories. Second, a focus on staff which includes up-leveling our seller expectations and bringing in new hires that have seen scale, sold platforms and know how to win with strategic partners. And third, we're bringing even more precision to where and what we sell, optimizing our coverage models to improve efficiency, drive focused new logo growth and achieve greater account expansion. We're committed to staying in the lead and going after our growth opportunity, while at the same time, improving productivity within and across our organization.

Finally, I'd like to share an important leadership update. After over 15 years with Workiva, Michael Hawkins is stepping down from his role as Executive Vice President and Chief Sales Officer, effective today, November 5. Mike has been part of Workiva since our early days, and he's helped to shape the company that we've become. Mike has played a key role in our evolution from a single solution company in the U.S. to adjusted global platform serving thousands of customers. I'd like to thank Mike for his years of leadership his dedication to our mission and his many contributions to our success. His impact on our people, our customers and our growth will be felt long after his departure. We also announced today the appointment of Michael Pinto as our new Executive Vice President and Chief Revenue Officer. Michael's career spans more than 25 years, driving rapid growth for some of the world's largest technology companies. Most recently, he was the Senior Vice President and General Manager for the Americas at Databricks, a $4 billion revenue run rate data and AI company.

Prior to Databricks, he held senior sales leadership roles at Amazon Web Services, Medidata and SAP. Michael will oversee Workiva's global sales partnerships and alliances and personal operations. He'll focus on scaling and accelerating profitable growth, modernizing go-to-market strategies, strengthening customer engagement and advancing global expansion. We believe that his leadership experience, his track record of guiding multiple companies to scale and his deep understanding of enterprise SaaS strongly aligned to what's required for our next phase of growth.

Finally, a brief update on our CFO search. We have identified a final candidate but we're not yet able to provide detail at this time. As you know, bringing in a sitting public company CFO is a complex process. and there is a sensitivity in the timing of the communications and the announcements. In closing, I'd like to thank our team of dedicated employees across the globe for their relentless focus on innovation, our customers' success and our go-to-market execution that continues to fuel our growth. I'd also like to acknowledge their disciplined commitment to productivity and performance that's driving measurable improvement in operating leverage in our business.

And with that, I'll now turn the call over to Jill to walk you through our financial results and updated 2025 guidance in more detail. Over to you, Jill.

Thank you, Julie, and good afternoon, everyone. Thank you for joining us. Today, I will begin by providing an overview of the financials and key metric highlights for the third quarter of 2025. The I will then provide guidance for Q4 and the full year 2025. As Julie discussed, we had a strong Q3, generating $224 million of total revenue up 21% over Q3 2024 and beating the high end of our revenue guidance by $4 million. There was an approximately 1 percentage point positive impact on revenue growth due to foreign currency fluctuations. Q3 subscription revenue was $210 million, up 23% from Q3 2024. Both new customers and account expansions continue to contribute to our solid revenue growth. With new customers added in the last 12 months, accounting for 40% of the increase in Q3 subscription revenue. Q3 professional services revenue was $15 million, flat versus Q3 2024, with decline in setup and consulting services, offset by higher XBRL services. Our non-GAAP operating margin for the quarter was 12.7%. This 470 basis point beat on the high end of our guidance was driven by stronger-than-expected top line results, increased PTO usage and continued focus on operational efficiency and productivity.

I'll now move on to our performance metrics for the quarter. We had 6,541 customers at the end of Q3 2025. We a growth of 304 customers from Q3 2024. Our gross retention rate was 97%, exceeding our 96% target. And our net retention rate was 114% for the quarter versus 111% in Q3 2024. Similar to revenue growth, there was an approximately 1 point positive impact on NRR due to foreign currency fluctuations. During the quarter, 73% of our subscription revenue was generated from customers with multiple solutions. This is up from the 68% we achieved in Q3 2024. Growth in our large contract customer metrics also reflected strong momentum. As of the end of the second quarter, we had 2,372 contracts valued at over $100,000 per year, up 23% from Q3 the prior year. The number of contracts valued at over $300,000 totaled 541, up 41% from Q3 2024. And the number of contracts valued over $500,000 a totaled 236, up 42% from Q3 2024.

Moving on to the balance sheet and cash impacts. As of September 30, 2025, cash, cash equivalents and marketable securities were $857 million, an increase of $43 million over the prior quarter end. In Q3, we used a portion of our generated cash to repurchase 126,000 shares of our Class A common stock for $10 million. This was done under the share repurchase plan approved by the Board in July 2024. As of the end of the quarter, we had $40 million remaining of the original $100 million authorization, which we will continue to deploy periodically in order to help manage dilution. As of September 30, 2025, we expect $701 million in remaining performance obligations to be recognized over the next 12 months. This is an increase of 21% versus the prior year. I also wanted to discuss a couple of notes on the PO program changes I shared at our September Investor Day. In the U.S., we will be transitioning from our current accrued PTO program to a flexible time off plan at the beginning of 2026. As the accrued PTO was used, it will have a positive impact to op margin, but this impact will not flow down to our free cash flow margin. There will not be a onetime cash impact on the balance sheet due to this transition.

Turning now to our outlook for Q4 and full year 2025. With our outperformance in Q3, we are now raising our full year revenue guide and increasing our operating margin guide to reflect our ongoing commitment and focus on driving both durable growth and improved operating leverage across the business. With that in mind, for the fourth quarter of 2025, we expect total revenue to range from $234 million to $236 million. We expect services revenue will be down compared to Q4 2024. We expect non-GAAP operating margin to be in the range of 16.7% to 17.4%. For the full year 2025, we are increasing total revenue guidance to range from $880 million to $882 million. Similar to 2024, we expect total services revenue will be down year-over-year as we move low-margin services to our partners. We now expect subscription revenue growth will be at least 21% year-over-year. We now expect our non-GAAP operating margin range from 9.2% to 9.4%. This 200 basis point improvement at the midpoint reflects our revenue beat and our ongoing commitment to drive expanding operating leverage in the business.

We now expect '25 free cash flow margin to be approximately 12%. As we look to 2026, I want to provide some early comments on next year in order to help with your modeling. In 2026, we expect to make continued progress towards our 2027 medium-term revenue and operating margin goals. We expect XBRL services revenue will continue to grow at a modest low single-digit rate in 2026, while we expect setup and consulting revenue to decline from 2025, 2026, as we continue to move low-margin services to our partners. The net result will be relatively flat total services revenue for the year. Similar to 2025, we expect operating margin in the back half of 2026 will be stronger than the first half. We expect momentum on improved operating leverage to continue well beyond next year. Julie walked you through our approach to improving productivity and driving operational efficiency within the organization, while executing on our long-term profitable growth strategy.

Year-to-date, we've raised our full year 2025 operating margin by over 400 basis points from 5% to 5.5% at the start of the year to 9.2% to 9.4% today. This improvement reflects how thoroughly operational rigor is being embraced by every employee across the organization. Our commitment to productivity is at the core of our short-term strategy and long-range planning. As you all know, this is my last earnings call. I wanted to say how proud I am of everything the Workiva team has accomplished over these last 17 years. I look forward to watching the company achieve its highest potential in the months and years to come. I also want to thank my amazing team. It has brought me great joy to get to know and work with each and every one of you. You all have made my time here meaningful and truly special. I hope your path forward is filled with rewarding challenges, exciting opportunities and significant achievements. To our analysts and investors, it has been a pleasure working with all of you over the years and I wish you all the best.

Thank you all for joining the call today. We're now ready to take your questions. Operator, please open the line for Q&A.

[Operator Instructions]

And the first question will come from Rob Oliver with Baird.

I had 2. But first, Jill, just wanted to say best wishes. It's been a pleasure working with you. And good luck to Mike Hawkins as well. First question, Julie, is just around platform sale, you made reference to some competitive consolidations within some of the wins you had this quarter. And I guess, kind of a bigger picture question, when the office of the CFO buyers are thinking about kind of applications aligned with underlying data and workflow integrity, Are you starting to see a bit of a tipping point where more of these functionalities, whether it be things within GRC or things within the financial suite around filing are starting to be consolidated around a single buyer and should we expect that to happen more in the next couple of years and color you have there would be great. And then I had a quick follow-up.

Sure. Thanks, Rob, for the question. And I would say that the trend that you're describing is a trend and it probably comes from 2 things really. And one is the age old just consolidation when companies are looking to take more responsibility for their productivity, for their efficiency and so forth. That's one just -- there's so many benefits to a platform, and we've seen that since day 1 as we've evolved to the platform, just a responsible thing to do in the CFO and the CIO office, of course. But then there's the trend of data and the importance of it and the ability to leverage it and how it works across all of our solutions. And certainly, there is a recognition, you see this by our increase in expansion deals that there's a recognition that these solutions in the office of CFO played that together. We have capability that makes them better together and that data. That's one of our key competencies really is the ability to bring all that data together, the financial and the nonfinancial CFOs get a much better and more comprehensive view of their business.

And so I would say it's 1 for the efficiency of the platform, but to also data, particularly with AI and so forth and be able to leverage it and get better insights more quickly. It's just way more important now we have the tools and the capabilities to be able to leverage it. And our platform is unique in that we have all of these capabilities together, and our customers get a much more holistic view and they're able to leverage that for better business decisions. And and speed and accuracy and so forth. So 2 reasons why the trend you've spotted is going to continue.

Great. Very helpful. And then just a quick follow-up around -- you guys touched on at the Analyst Day portion. Do you see the kind of a new approach to pricing around good, better, best. And I just wanted to get any color you could provide around early reads or indications around the acceptance of that pricing? I mean, I know you guys are already not a seat-based model. So you're not facing at least from what we can tell any of the risk returns around that, but would be interested to know what the early indicators are on the pricing change? .

Sure. And this is nothing we are disclosing at this time. It certainly plays a positive role in our expansions. We can share that. And again, early on and looking forward to doing more of it and rolling it out in a broader way across the platform. But thank you for highlighting. It's a great way to get our additional capabilities in and roll them out and get increased adoption. So thank you, Rob.

Your next question will come from Steve Enders with Citi.

Okay. Great. And Jill, great to have worked with you over the years. Maybe starting with you, I want to touch a little bit just on the early kind of view in the I appreciate some of the guide points there. But maybe how should we think about the kind of continued operating margin expansion, does it seem a little bit more kind of straight line from here to the medium-term targets? Or is the [indiscernible] view of a hockey stick? And then I guess, secondarily, just, is there any way to maybe frame the magnitude of the accrued PTO change and the impact that might have on margin over this year or in the next year?

Sure. Thanks, Steve. For the op margin for 2026, as I mentioned, we do expect as the trend has shown for the past couple of years for margins to be better in the second half versus the first half. We will continue to to have that seasonality. Thinking about the trajectory towards our 2027 medium-term target. We will continue to make progress, and you saw us make great progress this year. We're very pleased with the with the guidance that we're providing and the progress that we've made and everything that Julie has talked about as far as the company focusing on that margin improvement and focusing on productivity and getting leverage from our existing resources will continue into 2026. And so we will continue to see the results of that work throughout the year. We're not going to provide a specific number on margin for 2026 at this time, but I can tell you that we will continue to progress towards our updated 2027 medium-term target, the updated amount that we provided during our Investor Day in September. And then related to PTO, just as the second part of your question related to the PTO portion of that question. If you -- you can always take a look at our footnote, and looking at the balance of our accrual at the end of Q3. it's at around $19 million. A large portion of that would be from the U.S. Our accrued PTO balance will never go to 0, but as far as helping to build some models we will see that balance continue to decline, and we expect the U.S. portion of that balance to decline significantly through the end of 2026. .

Okay. Perfect. That's helpful. And then just on the, I guess, the large deal execution. I mean I think for the past couple of quarters, we've seen record adds in the $300,000 and $500,000 customer level. But I guess, anything to call out that maybe is helping drive that or support the strength there? And then I guess, how do we think about maybe the forward trend there continuing as you look at the pipeline going into Q4 and into next year?

Sure. I can take that. And I'll say again, probably a two-pronged answer. One, the platform is resonating, and we are just we are getting better selling it. So I think it's those 2 things. It's execution, and the platform resonating in the market. So just again, these solutions with the platform that has all of these capabilities unified together with data, with the capabilities we continue to roll out, it is resonating in the market. across financial, nonfinancial and assurance. And we also have a team, a go-to-market team that is executing and they continue to get more capable of selling with partners, of selling larger deal sizes and selling multi solution. We just continue to get better and better in execution. And I think those are the 2 reasons that you are seeing that trend.

The next question will come from Alex Sklar with Raymond James.

This is John on for Alex. Wanted to ask here on the capital markets activity. Can you maybe touch on the deal pipeline there? It certainly sounded like IPO activity or your share of IPO activity picked up. But can you maybe talk about the reasons behind that? And maybe any early perspective on how things are shaping up for 2026? And then I have a quick follow-up.

On capital markets, specifically, we can comment on that, certainly One of the questions we get most consistently on earnings calls is around the capital markets. And we did see an increase in activity this quarter. And we had a lot of great high-profile IPOs, Sigma, Klarna, HeartFlow, et cetera, and we're encouraged by it, but we also know we're in the midst of a shutdown. So we expect it to continue once the shutdown goes away, if and when, And so we do expect it to come the momentum to continue on post that. We don't talk about, of course, forward-looking activity around our pipe. But we did give guidance for the quarter. So you probably have an idea about how we're thinking about the next quarter.

Okay. Helpful there. And then on the international side, we continue to see positive momentum there in business coming from international markets. Can you maybe talk a little bit more about what you're seeing internationally, maybe how sales cycles are trending there versus domestic markets? And then maybe any differences you'd call out in multiproduct adoption internationally versus here in North America.

Sure. Year-to-date, revenue outside of the Americas represents, at this point, greater than 19% of our total revenue compared to 17% in the the year about a year ago. And we continue to put focus on it. Europe has become a strong story for us in the past 12 months. demand has been healthy. And it's essentially broad-based as it is across our all regions really, it's broad-based in the region. We're selling the value of the platform. We've got the multi-solution deals, partner-led, we're getting new logos and account expansion. So we continue to remain optimistic about the market opportunity and the future growth there. So good healthy demand broad-based.

Your next question will come from Jacob Roberge with William Blair.

Jill, it's been great working with you, best wishes moving forward. Julie, can you talk a little bit more about what you're seeing in the demand environment? I know you all have talked about some macro uncertainty over the past few quarters, but both revenue and bookings growth continued to be very strong. So it would be great to hear what you're seeing in the environment and just how the Q4 pipe is shaping up.

Sure. I mean, this year has been defined by consistency, but it's consistent uncertainty. Just just a lot of change. Changes are different every week, day, tariffs, policy changes, elections, government shutdown, inflation rate cuts, the list just goes on. But the Workiva team just continue to execute to the consistent change. And as we've mentioned in the past many times, our broad portfolio of solutions gives us a resilient business. But make no mistake about it, there is definitely uncertainty out there. but we are powering through with our value proposition, and it's a good one in these times, providing transparency, accountability and trust, and it just continues to resonate in the market.

Okay. That's helpful. And then just on GRC, from the Analyst Day in your prepared remarks today, it seems like there's some good momentum with that business right now. What do you think has changed for that business over the past year that's helping drive that growth?

Something went wrong there. Can you say which business you're talking about? I missed it.

I was talking specifically about the GRC business and just some moment you're seeing there?

Yes. Again, we continue to be very competitive in that market, rolling out capabilities, but we're seeing in the market a move to a cloud. And we are, again, moving strongly there on our execution. There's a lot of legacy software out there and teams are getting stronger and stronger and also many multi-solution deals there. So it's a great platform expansion. It's a land capability. So it just continues to get strong continue to move on the trends of legacy software removal and also move to the cloud.

Your next question will come from Brett Huff with Stephens.

Congrats on a nice quarter. First one is, can you give us an update on how the base that is kind of your core base of the SEC reporting I know that was going to be a big focus of potential cross-sells and sort of returning to those folks also with the good, better, best upgrades. To us, that seems a really big asset that you all have that you're just starting to really go back to you. Any update on that on how that's going, how the conversations are evolving.

Sure. Thank you for highlighting that. I mean our base is, of course, one of our tremendous assets with 95% of Fortune 100 to 85% of the Fortune 1000. We are executing well on account expansion. I highlighted a number of those deals on the call today. You can see some longtime SEC reporting customers moving into our other categories. So that account expansion is very strong. We also highlighted our account expansion and the percentage increases for those with ACV over $300,000 and $500,000 in the low 40%. So it is a an absolute focus for us is expanding into the installed base and bringing them more value and bringing the unified platform and all the capabilities.

That's helpful. Just final question for me. Can you talk a little bit about some of the nonregulatory drivers from the SG product. I think last quarter or maybe at the Analyst Day, you were talking about some of the time-based targets and things like that, you're still seeing good momentum there. Beyond sort of the direct regulatory drivers, is that still a part of the conversation still driving new logos for you all?

Yes. I'm glad you asked sustainability up. It's very simple. It just -- it remains a strategic solution for us. Has the near-term tailwind subsided yes, and we've been open about this, but we continue to win large deals in the sector. And you said it yourself and it is beyond regulatory drivers. There's business performance, there's risk management companies wanting to be resilient. They want to manage stakeholders and they're tracking to yes, those science-based targets you mentioned. So yes, it's regulation worldwide, but it's also a number of other factors that are driving this business. And again, it does remain a strategic solution for us.

Next question will come from Adam Hotchkiss with Goldman Sachs.

This is [indiscernible] on for Adam. Jill, it's been great working with you. I wanted to actually start on the sustainability demand environment. I know you touched on it briefly. Is it fair to say that you're seeing a similar softer demand environment in that space than what you called out in the previous few quarters? Or did you see a little bit of improvement there in 3Q? I just want to marry that with some of the strong sustainability deals that you called out in your prepared remarks.

So as far as sustainability and what we're seeing currently, you just heard Julie talk about the -- that some of the -- we haven't had the same tailwinds and we talked about this year, but it has still been a consistent driver. You heard her talk about some of the deals that we were able to close during the quarter, and we still see demand as far as sustainability reporting that's not tied to regulatory drivers. And so we would say that it's a similar story to what we were seeing, that it has not -- or ever gone to 0 that we continue to sell sustainability, and we believe it will have -- there'll be a long demand within that solution for us.

Got it. And I also just wanted to quickly ask on the free cash flow margin guidance. I saw you brought that back up to where it was in the beginning of the year. And so I'm just curious, what are the drivers behind that and sort of bringing that back to the 1Q guide.

Yes, sure. Thanks for the question, Jason. So thinking about our free cash flow margin early in the year, we did have back to sustainability, we had the moderation in demand for that business in the first half. And so it did influence us to reduce our free cash flow margin earlier this year from our original 12% that we have guided. And then since then, though, we have seen improvement in our op margin. which had, of course, is into a free cash flow margin. And we've also seen, as we talked about, improvement in Q3 and had good business during that quarter as well, and we're pleased with the results. And so it's going -- it's a combination of all those things that are influencing the -- our ability to bring that guide back up to 12% for free cash flow for the full year. .

The next question will come from Andrew DeGasperi with BNP Paribas.

Thanks and good luck, Jill, for the future. It's a pleasure to work with you as well. I wanted to ask a question on the appointment of Micheal Pinto as Chief Revenue Officer. I know titles matter. And I don't remember a Chief Revenue Officer per se being at Workiva recently. Can you maybe elaborate, why is that -- if it is or if I'm wrong, a meaningful change in terms of that person being in charge of sales organization? And what do you expect -- what changes do you expect him to bring forward or if there's any change in the reporting lines in terms of what -- how it was before.

Sure. I'll start by saying Michael is being brought in to take our go-to-market machine to the next level. it's -- it changes all about future growth and scale for us from $1 billion to the multibillions, building scale and efficiency in the sales organization. accelerating our high-performing partner ecosystem, driving new logos, account expansion, revenue retention activity, all of this in partnership with our go-to-market teams, marketing and customer success organizations and so forth. So that is why he's here. It's all about the next era of growth for us. On this title, I mean, we looked at market standard titles for the role. He's taking on the global sales organization, the partnerships and alliance and all the commercial organizations. So this is the title and the role, and we're enthusiastic about having them in and look forward to what he's bringing.

Got it. So it sounds like there's been a change in terms of the people that report to a degree or to that role before. But in terms of also -- I noticed the change in tone this earnings call, just in terms of your focus on efficiency, both across sales and marketing, R&D and gross margin expansion, of course. So am I right to think that there's been a shift pretty much since the Investor Day in terms of improving that and you're actively taking steps to mindfully drive that to get to those midterm targets you laid out?

Sure. We have been working towards those targets and just improving productivity across the organization. We did roll it out in Investor Day, but we've have these plans. We've been working across the organization, whether it's automation efficiency AI. We've been bringing in new roles across the organization, people who have been there and done that at scale. We have strong leadership across the organization, some of which is new. We've talked for a long time about having a blend of those people in the organization who've been here are evolving. We've been talking about them going out with understanding the customers, understanding our industry understanding our markets and then mixing that with the people who have been there and done that at scale. So it is not a new motion for us, the dual focus on growth and productivity that we did talk about at Investor Day has been a focus for us and will continue to be to drive shareholder value.

This will conclude our question-and-answer session as well as our conference call for today. Thank you for attending today's presentation. You may now disconnect.

Welcome to Workiva's 2025 Analyst and Investor Day. Thank you to those of you who have joined us here in person, and thank you to everyone else for joining us online. We're excited to have you here. I'm Katie White, Workiva's Head of Investor Relations.

Before we get started, I'm going to kick things off with our safe harbor. During today's presentation, we will be making some forward-looking statements regarding future events and performance. These forward-looking statements are subject to known and unknown risks and uncertainties. All forward-looking statements are made as of today, September 9, 2025, and reflect our current expectations only. We undertake no obligation to update any statement to reflect any events that may occur after today. And we will also be referring to certain non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles.

We have a full agenda for you today. Workiva's CEO, Julie Iskow, will kick things off, followed by Mike Rost, our Chief Strategy Officer; and Jill Klindt, CFO, will close us out before heading into Q&A.

So with that, let me turn it over to Julie Iskow.

Thank you, Katie, and hello, and welcome to our Investor Day 2025. Great to see so many of you here with us in D.C. Thank you for making the trip.

We intentionally host Investor Day at Amplify, just so you have the opportunity to engage directly with our customers and our partners and get the feel for what's going on here because nothing really compares to hearing about Workiva from those who use and experience the impact of our platform. And to those of you who weren't able to join us in person, we appreciate you being here virtually, and please don't hesitate to follow up with us after the session.

Since we are at Amplify, I'm going to stay on theme here and kick us off today with an example of a showcase Workiva customer. This customer is a top 10 global investment firm that recently expanded its use with Workiva on our platform in 2025 with their ninth solution. They purchased their first solution, SEC back in 2014. And like many of our customers, they remained a single solution customer for a number of years, seven to be exact.

In 2021, they became a multi-solution customer with the purchase of their second solution, investment reporting. They quickly followed in 2022 with their third solution, sustainability reporting. They chose Workiva as the foundation for their reporting against the SASB and the TCFD frameworks. With this additional solution, they became not just a multi-solution customer, but a multi-category customer, financial reporting and sustainability.

In 2022, they also expanded their use of investment reporting with access to the broader fund reporting solution, and that included fund financial statements, prospectus, registration statements and investor reporting, and it increased their spend with us, Workiva by 4x. In 2023, they added three additional solutions: financial statements, global statutory reporting and policy and procedures. Using the breadth of the platform across all of our categories, the result was another 60% in customer spend.

This is the type of uplift we achieve when customers fully embrace our multi-solution multi-category platform. But this customer continued their platform expansion. In 2025, they added their seventh, their eighth and their ninth solutions with us, insurance reporting, bank reporting and enterprise risk management. That's seven solutions in three years, nine in total. The customer's ACV grew from $75,000 in 2014 to $4.8 million today, all on our unified platform. The role of our partners was a significant aspect of this deal, and it really does illustrate how partners have changed the dynamics of account expansion for Workiva.

Beginning with their second solution in 2021, this investment firm has consistently used the same regional consulting partner for all of their Workiva implementations. And this trusted partner of both the customer and Workiva was instrumental with each expansion over the past three years.

This highlights the power of strategic partnerships and why the strong partner ecosystem is a core tenet of our growth strategy. The partner wins with a continued stream of billable work for three-plus years across multiple solutions. But it's not just about the implementation. They also manage multiple digital and business transformations for their clients, and they capture higher margin advisory work, which can actually be recurring.

Workiva wins with an account expansion and increasing subscription revenue. And most importantly, our customers win. When we provide the tech and the partners provide the expertise, the customer gets significantly more value.

This deal also underscores why our business is resilient. It's not just our broad portfolio of best-of-breed solutions, and it's not just that our partners bring value. It's because we solve issues that customers must address. Our customers need to trust the numbers they're disclosing. They need to provide transparency across their business, both financial and nonfinancial. And yes, they must be accountable often with assurance as a requirement. and they're looking to us and to our platform to solve the most challenging problems. It's really why we do what we do.

So today, I'm going to walk you through and focus on three topics: growth, productivity and platform innovation. But we really can't have a substantive discussion on growth or for that matter, productivity or platform innovation without taking into account the macro environment that we and our customers operate in. Understandably, in the first half of 2025, the macro environment has been one of the top conversation topics with our investment community. It's also been a key topic of conversation with our customers.

Now as I said in my opening keynote yesterday, the world hasn't become any easier for our customers to navigate. In addition to the challenges that they've been facing over the past few years, new challenges just keep emerging. Two of these challenges stand out. First, the rapid pace of technology. AI is quickly changing the way work gets done. And while this is a great opportunity, it also creates stress and pressure on our customers as they adapt and they manage change, and it can be overwhelming. Secondly, when I talk with customers and prospects, they tell me that, of course, they're facing increased scrutiny. But the additional challenge is that in many cases, they're dealing with these wildly conflicting expectations, like supply chain.

In Germany, the expectation is full transparency, proactive audits, deep disclosures, even if they're politically or commercially difficult. In the U.S., supply chain oversight and disclosure can be seen as government overreach or sustainability. In Australia, ESG mandates are tightening. In the U.S., there's pushback. And then there's tax transparency and public disclosure. I mean the EU wants CFOs to be radically transparent. The U.S. sees that as risky or anticompetitive.

For our own business, we've seen some changes this year as well. We're operating in a more uncertain market. We've seen a moderation in demand for sustainability. And we've seen private companies stay longer, sometimes indefinitely and take a more prominent role in the economy. And of course, we're also dealing with the speed and the impact of AI as well. But it's important to emphasize this is not Workiva's first macro disruption. We've navigated several before. And despite all of the disruption and change and in some cases, because of it, we believe we're well positioned to capture the opportunity in front of us.

We have a distinct competitive advantage, and it starts with our unrivaled experience. We've been doing investor grade and regulatory reporting for well over a decade. We're also the world's leader in XBRL tagging, doing it fast, efficiently and accurately. Companies trust us to help them to do their most important work no matter what challenge will arise.

We have 6,400 customers supported by a high-performing partner ecosystem of over 200 partners, sourcing and co-selling and delivering our platform. Our advisory and consulting partners are trusted by our customers for digital, for financial and now AI transformation.

Partners are everywhere we want to be. When partners are involved, we sell higher, we sell broader, we sell more and we win more with larger deal sizes. And we become stickier and we have higher retention.

We have an ever-expanding capability list on our platform. And now with Workiva AI, our advanced fit-for-purpose technology, it's bringing intelligence everywhere across and directly within our platform. We're powering financial reporting. We're powering GRC, and we're powering sustainability. And our increasing competitive advantage is a direct result of the execution of our growth strategy. So despite the macro and the market disruptions we've seen, that strategy still remains relevant and intact.

For those of you that are new to the Workiva story, the four tenets of our growth strategy are our solutions, delivering fit-for-purpose, best-of-breed, high-value solutions that are better together because of our unified platform. Our AI-powered platform, it continues to become more open, more intuitive, more intelligent and more connected. Global expansion, expanding our global footprint with excellence everywhere we play in and beyond North America across Europe, Latin America and APAC. And finally, our partners, a high-performing partner ecosystem, extending the value of our platform and accelerating our growth.

While our current strategy has been in place for several years, we've been evolving as a company for much longer. Workiva started as a single solution company selling SEC reporting. Next, we evolved to a multi-solution company with expanded use cases in financial reporting and financial services. Then with the introduction of GRC, we evolved from a multi-solution to a multi-category company. And with the addition of connected data capabilities, we evolved into a multi-solution, multi-category platform company.

Most recently, we launched our third category, sustainability management. And this includes sustainability reporting and carbon accounting. This evolution defines both where we are today and is the foundation of where we're going. I'll say it again. Workiva is a platform company, and our platform gives us unrivaled capabilities. We have the only unified platform in the industry that brings together financial reporting, sustainability and GRC in one controlled audit-ready environment wherever data integrity, data accuracy and data consistency are required.

Our unified platform is an accelerator for all of our solutions. At least 80% of each solution is the platform. This allows us to bring innovation to multiple solutions at the same time. We are becoming the leading AI platform for transparency, accountability and trust, managing the data that matters for the office of the CFO and beyond. Managing, tracking, reporting, disclosing data and narrative, again, wherever data accuracy, data integrity and data consistency are required. Today, it's three categories, over two dozen solutions. Tomorrow, we envision that it won't be just us building solutions on our platform. It will be our partners and eventually our full ecosystem. They'll be building solutions and extending the value of the platform even further.

Now with the addition of each of these solutions, the platform becomes even more powerful, and it contributes to our advantage. Our unified platform has enabled us to expand our diversified portfolio of fit-for-purpose, best-of-breed, high-value solutions. This is a key factor in our subscription growth resilience, and it contributes to our growing ACV. That's why you've heard us consistently say on earnings calls, broad-based demand across our solution portfolio powering our quarterly results.

Two metrics provide compelling proof points. The first is the steady and sizable increase in our average spend per customer. Since Q2 of 2022, we've delivered a 10% plus rate of growth in average spend per customer each year for the past three years. This is a 40% increase in spend per customer since Q2 of 2022. This increase is powered by larger customer lands and successful account expansion, both of which are enabled by our broad portfolio of solutions.

A second metric that highlights our resilience is our consistent subscription revenue growth. Since 2019, our trailing 12-month subscription revenue growth has consistently remained above 18%. This is in spite of the market volatility of individual solutions, like the rise and fall of capital markets and most recently, some changes in the sustainability market. The power of our platform and the diversification and the breadth of our portfolio have enabled us to withstand macro shifts and continue to drive growth.

Our increasingly broad portfolio of solutions not only increases our subscription growth resilience, it also continues to increase our TAM. At our Investor Day last year, we disclosed and discussed the expanded TAM of $35 billion. This reflects the growing opportunity we see across our solutions and our platform. Now if we look at our TAM, we can look at these solution categories, there are a few things worth noting. Financial reporting is 50% of our TAM. Sustainability, while a key growth driver, only represents 20% of our TAM. The remainder is split between GRC at 20% and industry verticals. With multiple solutions in each category, we remain confident in our ability to capture our opportunity. We have clear competitive advantage, and we're executing on our growth strategy.

Now let's turn to the third growth pillar of our strategy, global expansion. We just continue to diversify our business geographically. We have expanded into key growth areas across Europe, APAC and Latin America, and we've built a significant and growing customer base in these regions. Our success in expanding globally is demonstrated by the increases we've seen in our revenue outside of the Americas. In 2019, less than 4% of our revenue came from outside of the Americas. By end of 2023, that number grew to 15%. For the full year in 2024, the number reached 18%. And for the first half of 2025, that number has increased to 19%.

Europe remains one of our largest market opportunities. We saw record-breaking quarters over the past year, and we've gained momentum from the region's established regulatory environment. In Q2 of 2023, Europe accounted for 12% of our total revenue. By Q2 of 2025, it had grown to 17%. And we believe we still have significant opportunity to grow in the region.

Was the CSRD a growth driver that's been moderated? Sure. The market has softened some with regulatory delays and scope changes. But is it still a growth driver? Yes. And it's important to remember that the CSRD is still in effect for the largest companies, those in wave 1. And the next wave, while still delayed, will still need to comply. So in Europe, we are focused on supporting two groups. First, the wave 1 filers as they approach year two of disclosure; and second, the many other companies that are pursuing sustainability, even though they're not required today to do so.

We are seeing companies across industries without regulatory mandates still doing sustainability initiatives. They're measuring and they're monitoring and they're tracking their progress because this data helps them to drive operational efficiency and business performance. This is highlighted in the following new logo customer win. This top European travel company was a new Workiva customer in Q1. This was a land. And yes, I say land with seven solutions: financial reporting, global statutory reporting, management reporting, controls management, policies and procedures, enterprise risk and sustainability management.

Here's a bit more detail on this deal. The business requirements were to transform financial reporting, sustainability and GRC processes. These processes needed to scale with this company as they pursued the option of an IPO, and it will be subject to external audit review. This company also has to produce country-specific statutory filings and submit via a structured digital taxonomy. And like many businesses in Europe, this company serves multiple stakeholders who are requesting sustainability information. In the future, reporting against the CSRD will be required. This was a competitive win against a CFO-centric corporate reporting platform. Now like most of our deals in Europe, this opportunity had engagement from our partners. Three different partners worked with our sales organization on a co-sell motion. And two of these partners are also engaged in the delivery of these seven solutions.

Let's turn now to new logo growth. Over the past five years, we've expanded our account base by over 70%, and we've delivered a five-year CAGR of 11% in new logo growth. We are landing with the platform. We're going to market with our partners, and we're moving into new geographies with new solutions. Whether it's new customers in the upmarket or the signing of the companies with the next IPOs, VC-backed companies, new customers are drivers of our growth. We continue to see significant progress in building on our already enviable customer base.

For those of you that are familiar again with the Workiva story, you know that we have a well-established installed base. For the past decade, Workiva has highlighted the significant share of Fortune customers that use our platform, and the numbers just keep getting better. If you are a Fortune 100 company in the U.S., you are an exception if you don't use Workiva. Just over the past year, we've gone from 90% to 90% -- 95% of the Fortune 100. We've gone from 85% to 89% of the Fortune 500. We've gone from 82% to 85% of the Fortune 1000. This, our large, loyal, very happy and very trusting customer base is a competitive advantage. This trust is clearly evidenced by our greater than 96% gross retention rate. And so while new logo growth is a strategic focus for us, account expansion has been a significant growth driver over the past few years.

Let's look at that in a bit more detail. Starting with our customers that have over $100,000 of annual spend with us. Our transition to a multi-solution company began in earnest several years back. This was when we transitioned all of our customers from a seat-based to a solution and metric-based pricing model. This multi-solution-based approach has delivered a steady 30% year-over-year growth in $100,000-plus contracts. While we do continue to make progress, here's the opportunity. A majority of our customers will spend less than $100,000 annually with us.

Let's talk about our larger contract customers. Our transition to selling multi-category and true platform deals began in 2021. And it's this platform focus that has accelerated the increase of larger contracts. You can see here a 32% growth of customers spending over $300,000, and you can see a 33% growth of customers spending over $500,000. Now while these larger contracts include new customers landing with the platform, the primary driver of this increased contract spend is solution expansion.

A new metric that we're providing for you today is the trend in solution count by customer. This chart highlights our progress in moving from single solution to multi-solution platform customers. Note that the blue portion of this pie that represents single solution customers is shrinking. But every other color representing customers with two and three and four and five and six or more solutions is expanding. In fact, 45% of our customers now have two or more solutions. That's up 32% as of Q2 2022. That's a 78% increase in the number of multi-solution customers. And the number of customers with four or more solutions has more than doubled since Q2 of 2022.

While this indicates healthy growth, there is a significant opportunity here ahead of us. We believe that most of our customers have the business need to purchase several of our solutions. And these multi-solution customers are a meaningful accelerator to revenue. Even with modest growth in the count of multi-solution customers over the past few years, the revenue contribution from these customers has grown from 56% of total subscription revenue in Q2 of 2022 to 71% of subscription revenue in Q2 of 2025. And we are just scratching the surface. We believe that we have a 3x multiplier on our current ACV just selling our current platform to our existing customers because our customers trust us and they know that they can get value from our platform.

Here's a customer expansion story that will show you exactly what I mean. In 2017, a top 10 U.S. bank initially adopted Workiva as a single solution for SEC reporting. Later that year, they expanded their use to include a second solution, management reporting. That was to support the publication of their internal reports. In 2020, this bank transitioned to a multi-solution, multi-category customer with investment in GRC with the addition of their third, fourth and fifth solutions. SOX, operational risk management and bank-specific CECL reporting.

In 2021, they further invested in GRC with the purchase of enterprise risk management, their sixth solution. In 2022, they purchased some of our broad platform capabilities, adding management reporting and expanding the use of our data platform. Then they added a seventh and an eighth solution, sustainability and bank-specific model audit management. 2024 saw further expansion of enterprise risk management, tripling their investment in that solution. Finally, in 2025, the firm added their ninth and tenth solutions in an account expansion of nearly $1 million with the addition of bank resolution recovery plans and bank call reporting. Over the past eight years, this bank has increased their spend from $120,000 to $2.6 million annually.

Now what do all these solutions have in common? They power the bank's business processes around trust, transparency and accountability. This is just one of over 6,400 customers. And while not all companies will reach 2.6 million spend with us, there is a significant opportunity to meaningfully expand our solution footprint in most of our accounts.

I'll wrap up this section by summarizing our numerous levels -- levers for durable growth, enabled by our successful platform journey. We have a large and untapped TAM. We continue to land new logos, private companies, Fortune 1000 companies and companies across the globe. Account expansion continues to be a significant revenue driver. And the breadth of the platform enables multiple growth paths, purchasing of new solutions, increasing spend in existing solutions and expansion in platform capabilities.

We are focused on growth and capitalizing on the opportunity in front of us. But we're also focused on driving productivity. Workiva is both an expanding growth and an expanding margin story. As highlighted in our most recent Q2 earnings call, we provided a 200 basis points operating margin raise to our full year guide. Our margin progress in 2025 reflects the disciplined approach we've been taking to achieve the medium-term and long-term targets that we outlined at our Investor Day last year.

Our approach focuses on four key themes across every function, across every department and across every team. First, organizational and operating model redesign. We're simplifying spans and layers. We're evolving the operating model across sales, customer success and R&D. And we're putting a greater emphasis on performance management. The result will be a structure that reduces duplication and strengthens execution.

Second, process streamlining and automation. This includes both single and cross-functional initiatives. We're streamlining and improving workflows. We're leveraging technology where it brings value. And yes, that includes automation of routine tasks and the use of AI. Third, we're optimizing product and go-to-market resources. We're sharpening our investment discipline so that we can focus resources on initiatives with the highest likelihood of success and the greatest customer value. And lastly, more focus on fiscal discipline. We are just exercising greater fiscal discipline across all functions. Together, these four themes are designed to meaningfully expand margins and most importantly, increase productivity as we grow and as we scale.

So let's kick it off with a look at our cost of revenue. We've already driven 400 basis points of improvement in cost of revenue in the past three years, and we believe there's more room for additional operating leverage. To capture this, we plan to execute on three productivity initiatives: scaling digital support, improving cloud computing cost optimization and shifting setup and consulting to our partners. Over the next two years, we expect cost of revenue spend as a percent of revenue to improve by another 300 basis points as we continue to execute on these productivity initiatives.

Now let's dive a little deeper into our plans for R&D. As a platform company with a broad portfolio, continued R&D spend is essential to drive both platform and product innovation. Having said that, we know we have an opportunity for further leverage. Three initiatives are in focus for us. First, workforce diversification, accessing global talent, including lower-cost markets and locations. Second, engineering productivity, streamlining processes, accountability, better tools and automation, and yes, some AI. Third, improved and scalable operating model. This is about having the right structure to increase commercial impact and sustain growth through high-performing productive teams. Over the next two years, as we execute on these productivity initiatives, we expect R&D spend as a percentage of revenue to improve by another 300 basis points. And we feel confident that we can achieve this target based on our track record of steady improvement over the past several years.

Let's shift to sales and marketing, our largest opportunity to drive additional efficiency and productivity. Just as we've made progress in R&D spend as a percentage of revenue, we are confident in our ability to make similar progress in sales and marketing. Our approach is practical. We do this to minimize the risk of disrupting growth as we continue our focus on the core objective, which is capturing our large and expanding TAM. Our plan is to reduce our overall cost to acquire $1 of revenue, and it focuses on structure, staff and strategy.

Structure. This includes transitioning to a more efficient model. As we scale, we're reducing the reliance on solution overlay sellers and moving away from deploying multiple sellers on every deal. The result will be less salespeople involved in each deal. Better alignment of sellers to territories. In some cases, we're shrinking the number of accounts per seller. Because in enterprise SaaS, this is a proven way to drive larger deals and higher seller productivity. And we're already seeing success here, especially upmarket. Leaning into our partner ecosystem, we're continuing to see momentum co-selling with our partners. This delivers higher win rates, as I said, larger deal sizes and more multi-solution deals. These outcomes will continue to drive productive growth.

A second area of focus is staff. We continue to raise the bar on our seller expectations. We're up-leveling our existing sellers and bringing in new hires that have seen scale, that have sold platforms and that know how to win with strategic partners. They also know how to build trusted customer relationships that expand long-term value. Our sellers are carrying higher quotas. This is supported by improved enablement, refined sales plays and a broad platform offering. And of course, we'll continue to augment our sales teams with AI capabilities, spending less time on manual activities, enabling them to have even more meaningful conversations with our customers.

Third, strategy. We're bringing even more precision to where and to what we sell. In more established markets, we're optimizing coverage models to improve efficiency, to drive focused new logo growth and to achieve greater account expansion. This includes a new hunter-farmer model for our corporate account segment. We're also expanding across our less mature geographies, Europe, Latin America and APAC. We're focusing the investment in regions and segments where we see the strongest opportunity for growth, and we're launching and scaling go-to-marketplace for new solutions and doubling down our efforts in key verticals where we have the right to win.

Here's the bottom line. The results of these efforts are expected to improve our medium-term sales and marketing target as a percentage of revenue from 41% in our prior model to now 39% in 2027. With this anticipated improvement in our sales and marketing leverage, we are raising our medium-term non-GAAP operating margin target from 16% to 18% in 2027. Again, we are raising our medium-term non-GAAP operating margin target from 16% to 18% in 2027. Now Jill will provide some additional detail on our mid- and our longer-term operating model, but she will, of course, include this update.

Before I turn it over to Mike and Jill, I'm going to spend a few minutes talking about platform innovation. We are, as we have stated, a platform company. We have the only unified platform that brings together financial reporting, GRC and sustainability in one controlled audit-ready environment. We know it's our competitive advantage, so we continue to innovate to maintain and to extend that advantage.

One of the benefits of being a platform company, is the ability to scale innovation across multiple use cases and solutions with efficiency. And Workiva's AI is a prime example of platform innovation that drives enterprise-wide value. Workiva AI is not just a bolt-on feature simply integrated into the platform. It's embedded at the core to bring intelligence everywhere across and directly within the platform. This generates impact and value across all of our solutions.

For our customers, AI has shifted from interest to a requirement as teams tackle financial transformation, evolving sustainability regulations and increasing investor scrutiny. They're looking for a technology partner to help them keep up with and take advantage of rapidly advancing technology. We know our customers and their challenges well. So everything we do with AI is focused on bringing the intelligence right where they need it and where they can use it to realize tangible gains. A couple of years ago, we rolled out Gen AI capabilities across the entire platform. We integrated the large language models from Google and from Microsoft and from Amazon in all of our workflows, enabling Gen AI in context.

Workiva AI is the next evolution of our AI capabilities built with agentic intelligence. And yesterday at Amplify, we announced the launch of several new Agentic extensions to the Workiva platform, intelligent finance, intelligent sustainability and intelligent GRC, each with specialized fit-for-purpose capability. These capabilities equip our customers to thrive with speed and with accuracy.

So as highlighted in my keynote yesterday, because AI bots and models are now the first reader interpreter of our customers' outputs, that is without a human to explain or give context, reports and disclosures have to be intelligence ready. They've got to be designed for how AI bots and models read, right? They've got to look for patterns that they identify for the sentiment that they score for the precision that they always apply. Intelligence-ready means that the data and the narrative have to be structured. It's got to be consistent. They got to be traceable, interpretable, machine readable and built with context, not just content. And the good news is our customers don't need to write with -- know how to write with AI because we do. Our platform was built for this.

Workiva is intelligence-ready now. Our reports are structured, validated data products, not just documents, so AI and bots can reliably read, reconcile and publish with full lineage, controls and regulator-grade assurance. We embed global frameworks and taxonomies directly into the platform. This turns every report into a structured machine interpretable data product. So AI doesn't have to guess what's material, how it's defined or how to compare it. It is built in.

With Workiva AI at the core of our unified platform, we're providing the intelligent companion for our customers to deliver on their most crucial outcomes to all of their stakeholders. AI capabilities and advances are moving fast. And of course, so are we.

So I'm going to leave you with these key messages and these key takeaways. Our opportunity is large and growing. Our strategy is relevant and intact. We believe we're well positioned to capitalize on our growing opportunity, and we see proof points in our results, large multi-solution and platform account expansion deals with partners across the globe. Our solutions and our platforms are resonating with our partners and our customers, and we'll continue to focus on delivering both growth and productivity. We are committed to staying in the lead and going after our growth opportunity.

So thank you, and I will now turn it over to Mike Rost, our Chief Strategy Officer.

Thank you, Julie, and thank you for all being here today and for those joining online. Picking up where Julie left off, I'll be providing additional detail that support the confidence that we have in our growth opportunity. I'm going to start off with a refresher on our pricing and packaging and the role that plays in our growth. Next, I'll click into some highlights across our portfolio of solutions. And finally, I'll provide a quick update on the momentum we have with our partner program.

So let's kick this off with pricing and packaging. As a quick reminder, Workiva is not a seat-based licensing model. In fact, we migrated away from that more than five years ago. We utilize a value-based approach that prices each solution based on one or more value metrics. And for each solution licensed, a customer is offered unlimited users for that solution. So some examples of this. For internal controls, we price based on the number of controls. For multi-entity reporting, we price based on the number of entities. For investment fund reporting, we charge by the number of funds. This value-based approach provides a very straightforward method of communicating the value of our solutions and the ability to capture value when a customer expands their use of a solution because when they grow, we grow. This value-based pricing approach is one of the drivers behind the solution expansion that Julie spoke of earlier. The pricing model has served us well, and we believe it will continue to play a strategic role for us in the future.

So we continue to look for ways to unlock greater value for our customers. So starting in Q4 last year, we introduced another dimension to our packaging, a good, better, best model. With this approach, we now package feature capabilities into different solution tiers.

So let's go through a couple of examples on this. Let's start off with private company reporting. So for this solution, we've stratified into three different tiers, an essentials version, a standard version and an advanced version. The essentials solution is tailored, for example, to a smaller private company just getting started with Workiva. The standard version includes expanded capabilities for presentations, quarterly board reporting and enhanced design reporting. The advanced version includes all of the capabilities in the standard version and financial statement automation, advanced data collection and multi-language report translation capabilities. We're doing the same across a number of other solutions as well. So for example, for GRC, for internal controls, we have launched two versions, an essentials version and a standard version.

So here's what also gets interesting. Let's talk about SEC. As disclosed in our 10-K, SEC plays a material part in our business. In our last 10-K, we highlighted it represented more than 40% of our revenue as of year-end 2024. Workiva serves some of the most sophisticated SEC filers, many of whom we believe will see value in a more premium solution offering for SEC. That premium option is now available to them with the SEC advanced solution. So SEC advanced includes enhanced data collection, financial statementization, design reporting and enhanced AI, including the newly announced SEC Intelligence. We believe that many of our customers will see value in these features. We also believe that value expansion opportunity for our customers is a significant uplift for them and a growth opportunity for Workiva.

This good, better, best approach also provides us with a model to package premium AI capabilities and solution-specific knowledge bases as they become available. So this just announced SEC intelligence solution is a great example of that. It offers advanced capabilities with a curated knowledge base of external information. While all Workiva solutions will be delivered with core platform AI capabilities, premium AI may be reserved for more advanced tiers of any given solution. So we're trying to keep this simple and value-based and the flexibility of our pricing and packaging provides multiple levels for future growth, including a way for us to monetize AI.

So speaking of AI, what makes Workiva unique and defensible in this AI era? Well, the answer is pretty simple. It is our fit-for-purpose solutions. And that's because we bring together user workflow and an understanding of the domain and the experience in solving specific customer requirements.

So I'll take the next few minutes to provide some highlights across our solution categories. So let's start with finance. SEC reporting is just one of the many solutions in the finance category. Some of the other growth solutions in the finance area include private company reporting, multi-entity reporting, internal management reporting, ESEF and capital market transactions. Across this portfolio of solutions, we support some of the world's top companies, companies of all sizes in all industries, private companies, public companies, higher ed, federal, state, local government and companies across the United States, Canada, Europe, LatAm and APAC. People often equate our finance solutions just with the U.S. public markets. It's our SEC reporting and cap market solutions.

But looking at the finance solutions, excluding these, we see good growth opportunity. So first, we continue to land and expand within the solution category. These finance solutions are fueling new growth. In the past year, using a Q2 to Q2 comparison, we have grown the count of customers that license these solutions by 23%. Second, as we're selling into these finance solutions areas, we are landing multi-solution deals. These solutions play a material role in the solution count expansion that Julie highlighted earlier. In the past year, we've seen 78% growth in the multi-solution deals that include these financial reporting solutions. This includes both new logo and account expansion deals. Finally, we have a great partner engagement across the finance solution set. Greater than 70% of the finance solution deals sold in the past year were delivered by partners. Why? Because these solutions play a strategic role in what these partners provide, finance transformations, ERP migrations, public to private journeys and the list goes on.

So one example of a finance solution driving growth is our multi-entity reporting solution. The target market for this is simple. It is multinational companies. When you do business in multiple countries, you typically have to set up multiple legal entities and report to multiple tax authorities. With Workiva multi-entity reporting, customers with multiple entities can standardize both corporate and local level statutory reports in one central platform. This includes managing the GAAP to STAT bridge, tracking statutory requirements, publishing quarterly reports and disclosing an XBRL with country-specific taxonomies.

For many companies, this is a complex process, multiple source systems, multiple ERPs, disclosure requirements, in-country teams, all with external oversight involved in the process. And companies see value in moving from a desktop office productivity tool or from a legacy on-prem software to transform these processes. With deal sizes that can range from, on the low end, $75,000 to over $1 million just in the solution area, we see this as a continued growth area for us.

So let's shift to capital markets. We are encouraged by the recent shift to a more positive capital market environment. In just the past quarter, we have supported some of the signature IPOs with our S-1 solution. This includes companies like Figma, HeartFlow and Schoulder Innovations that have all gone public recently. For Workiva, an improved capital markets environment is not just about supporting clients with the S-1.

There are three primary ways that we add value to customers on this private to public journey. First, we support customers years before they go public with private company reporting. The prospect of a favorable IPO market makes it more compelling to invest in strengthening reporting processes today. Workiva helps organizations prepare years in advance with private company reporting and internal control solutions. Second, as already mentioned, we support customers with their S-1 filings. We provide a collaborative platform that brings together the company's bank, legal and internal teams during the S-1 authoring process. And third, the creation of more SEC filers creates an improved market for other Workiva solutions, including our SEC and SOX solutions. Even if we're not involved in the company's S-1, we believe that we will win our fair share of new SEC filers with multiple solutions across our platform.

So let's shift the focus to GRC. GRC stands for Governance, Risk and Compliance. This is one of the many mature markets that Workiva sells into where we compete with many legacy on-premise installations and very specific point solutions. Workiva stands out by offering a comprehensive suite of GRC solutions strengthened by the broader capabilities of the Workiva platform. So Workiva GRC solutions, it includes audit, it controls management, risk management, policies and procedures and compliance. There's a lot here to sell.

So let's look at a few metrics across this GRC category. First, GRC has been a strong growth business for us. In terms of ARR growth, we delivered a 19% ARR growth rate 2023 to 2024. This growth rate has accelerated in the past year to 30% in ARR. We are encouraged by this growth acceleration and believe that we have further opportunity for growth in this area. For the trailing 12 months from Q2 to 2025, we have seen a 68% increase in the growth of multi-solution deals. This is also another great opportunity for us to sell additional solutions into the installed base.

And finally, another solid data point on partners. We've seen a 33% increase year-over-year in GRC deals delivered by our partners. GRC is a great example where our partners not only benefit in the setup of consulting, but in the high-margin advisory work and services they can provide that's wrapped around these projects. The durable growth we have seen in GRC is driven by our broad and competitive solution portfolio. This GRC portfolio includes solutions across a wide spectrum of things.

So internal controls, which includes SOX, internal controls over financial reporting, model audit rule for insurance, Circular A-123 for public sector and broader controls management. We look at internal audit. This is about managing work papers, internal audit planning, audit field work and risk assessments. Audit analytics, which includes the automation and process for testing samples and managing sampling populations, continuous controls monitoring and source system integration. policy management, which includes policy authoring and approval, policy review and sign-off, certifications and stations and risk and control mapping to policies. And finally, risk management. This is managing risk at both an enterprise and operational level. This includes risk assessments, risk heat maps, managing the risk register, reporting and dashboards, risk reporting and many more capabilities. The end result for all of these solutions is that we have a great growth business with significant expansion opportunity and where we have the opportunity to serve a growing list of customers that are driving value across the set of GRC solutions.

So let's move on to sustainability. So as we highlighted on our Q2 call, we saw a dynamic market in the first half of the year. And this was influenced by shifting policies, proposed regulatory changes and just an overall change in the market sentiment of sustainability. And yes, we did observe a moderation in demand within our mid-market accounts across both the U.S. and Europe. While the strong momentum we saw in the latter half of 2024 has tapered some, sustainability continues to drive both new logo wins and account expansions.

So with much of the dust now settled on some of the changes that we saw in the first half of this year, the end result is sustainability is still a market for us to sell into and to drive growth. The continued wins we see in sustainability are supported by the comprehensive set of solutions and competitive differentiation that we provide. So the broader platform capabilities we offer sets Workiva apart in this market. We deliver sustainability reporting, carbon accounting for Scope 1, 2 and Scope 3 emissions, integrated sustainability for financial reports and disclosure for multiple frameworks and disclosures to rating agencies. We continue to win in sustainability and deliver value to our customers. This list shows it. Those customers that are represented by the names here are recognized leaders in their industries. Workiva's sustainability continues to be the solution of choice and essentially the standard for the top companies in the world.

So let's high a few metrics on sustainability. First, our annual contract value. As we've grown to market experience with the sustainability, we are encouraged by the value proposition that's resonating. In the last 12 months, we've seen a 22% increase in the average contract value. It's simple. We are winning larger deals. Our averages for account deals are going up. Second, our partners have played a strategic role in the success of this business. We have taken a partner-first approach in the go-to-market with sustainability. We sell with partners and more than 85% of our sustainability deals have been delivered by partners in the past 12 months. And finally, sustainability is driving a lot of multi-solution activity. In the past 12 months, 40% of our sustainability deals involve multi-solutions. We believe that sustainability is a long durable demand market and one that offers a lot of solution expansion opportunity.

So let's move on to financial services. It's one of the vertical solution categories that we call out in a TAM, and these solutions for financial services have been a great growth driver for us. When we speak of this vertical solution area, we are talking about the specific solutions we provide for banks, insurance companies and investment firms.

For banks, for example, we provide solutions for capital planning and risk reporting. These solutions include capital adequacy and strategic planning, regulatory capital planning, stress testing and recovery and resolution capital. These are complex requirements with disclosures that can be tens of thousands of pages of banks. For insurance companies, we provide solutions for many different individual state regulatory requirements and country-by-country requirements. This includes insurance stat reporting, actuarial memorandum, risk and compliance, including the model audit rule and cash resolution plans, regulatory reporting, including NAIC, ORSA, capital adequacy tests and Solvency II frameworks. And for investment firms, we deliver our fund reporting solution. This solution provides support across the fund reporting and shareholder reporting life cycle. We have been providing fund reporting for private funds and regulated funds for the past five years. And we recently introduced support for public funds to address the complex requirements of ETF funds.

So let's look at a couple of metrics here. First, this is a high-growth area for us. We have delivered sustained ARR growth in the high 30% and low 40% range for the past three years. While these growth numbers are impressive, we believe that we have a lot of opportunity for future growth in this vertical solution area. Second, another key driver for growth, our financial services solutions customer base continues to grow. As of Q2 2025, we saw a 22% growth year-over-year in the number of customers using financial service solutions across the board. And finally, we have a great base of companies to sell into. In North America, we have many of the leading banks, insurance companies and investment firms that are already our customers. For example, this includes 100% of the top 50 American banks as measured by assets under management.

Now as highlighted by the solution count information that Julie shared earlier, many of these firms, even though they are large banks, still only have one or two solutions back to that growth opportunity. We believe there's a lot of growth in front of us in this vertical solution area.

So we're going to finally wrap this up here in my section and talk about our partner ecosystem. So as Julie highlighted, partners is one of the 4 tenets of our strategy. Our partners are everywhere we want to be. Our partners are aligned with us in go-to-market activities, co-selling deals, sourcing deals and standardizing Workiva to deliver managed service solutions to add value to their customers. We have a very strong partner ecosystem. We have partners representing by the Big 4 and regional audit firms, global consulting companies and vertical-specific advisers. We have managed service partners, technology partners and vendor relationships with the design agencies in Europe.

With our partners, we have built a solid distribution engine that is scaling upmarket as well as down market. And this provides us durable long-term levers for us to grow. And this starts with solution implementation. Throughout our solution metrics, we highlighted the data points on partner delivery. But for our partners, it's just not about the implementation. It's about all the additional advisory work that they can deliver to the customer as well.

And finally, with Workiva, there is a recurring services opportunity. With our broad platform, there is always another solution to drive value to the customer and a way for the customer or a way for the partner to make billable service hours.

Workiva benefits not only on top line growth, but also on margin expanding performance. With our partners driving the delivery, that reduces the low-margin services work delivered by the Workiva team. We've talked about this quite a bit in our calls. We have been executing well on this plan to shift those services to our partners. I highlight on this chart, setup and consulting revenue is now only 1.5% of revenue compared to 4% in 2022.

So together with this ecosystem of partners, we are selling more, delivering more value and scaling faster. So a few metrics on this. When we source deals with our partners, we have a 2x, 2x higher win rate. We see a 30% larger deal size and 31% of our partner source deals are multi-solution. Our partners are a very strategic part of our growth equation.

So as I wrap up this section, I want to leave you with three points here to affirm our confidence in our growth opportunity. First, we have a value-based pricing model that enables solution expansion. And with the addition of the good, better, best product tiering, we have a new way for us to add value and continue to sell more to our customers. Second, we have a lot of solutions to sell. There's a lot on the truck for us to go and sell right now. And these solutions solve business-critical requirements for our customers. And these are all powered by a single platform. We have differentiation across every solution category because of the platform. And finally, our partners. You've heard both Julie and I mention partners throughout today's presentation. And we're about five years into scaling this partner ecosystem. For those of you who remember, I was up on stage in 2019 and 2020 talking about this. So not only have we scaled this, our partners are continuing to drive growth. And as I mentioned earlier, that margin leverage.

So what's all this lead to? Well, Julie said it earlier, Workiva is an expanding growth and expanding margin story.

And to talk more about the numbers here, I'd like to welcome to stage our CFO, Jill Klindt.

All right. Thank you, Mike, and thanks to everybody for joining us here today and in person. It's great to see you.

We're going to start here, and you've heard a lot today about Workiva's vision and strategy, particularly around our dual focus on both growth and productivity. Now I'll tie everything back to our financials and our medium-term and long-term operating models.

We're going to start by looking at our strong subscription revenue growth. This is a great story here, right? As Julie mentioned, the durability and resilience of our business is highlighted in our consistently strong subscription revenue growth. We've delivered a 22% CAGR for subscription revenue growth over the last six years, including a reacceleration from 2024 to 2025. During this time frame, we've also experienced several market shifts, as you all are aware. One example is when cap markets spiked in 2021 and then subsequently slowed. Our ability to adapt to changing market conditions and to sell across our broad portfolio of solutions has enabled us to continue driving durable growth. That's exactly what we're doing today.

Next, our platform and growing set of solutions have been a driver of larger deals over time, both landing new multi-solution larger deals as well as expanding contract values with our existing customer base. You can see here that the average ACV for customers spending over $100,000 per year more than doubled the base coming in over $200,000. This trend continues as we look at customers who spend more than $300,000 with us, having an average annual contract value exceeding $600,000. For customers spending over $500,000 with us annually, the average ACV surpasses $1 million. The platform's power and broad solution set have led to customers spending over $1 million, over $2 million, over $3 million and even the first customer spending more than $5 million with us per year.

Moving on to revenue by customer cohort. I love this slide. It shows a lot of the history of the company back to what Julie was talking about earlier about the trajectory of our company and how we changed over time. But it also reflects our strong customer retention with customers staying with Workiva, not only because of the value they see from our platform, but also the excellent customer service that we provide.

Workiva constantly helps customers develop and integrate the platform into their businesses, embedding us into their daily work. I do it on my team, too, we have to tell you. And our extensive solution offerings drive growth within existing customer cohorts. One example here is the 2010 cohort with those customers that started with us in 2010, have a CAGR of 23% in ACV through 2024. This speaks volumes. We've been able to excel at customer satisfaction, retain our customers for a longer period of time and enable them to continue to spend on the Workiva platform.

For those of you with us in person here today, you probably have already had some customer conversations, and you can feel the sentiment in the way they talk about both the platform and the Workivians who support them. They're very, very passionate about their CSMs.

Workiva consistently has best-in-class gross and net retention. Our gross retention has not fallen below 97% for the past 15 quarters, exceeding our 96% internal target. Net retention has also shown a positive trend, increasing from 109% last year to 114% in the most recent quarter. Even with the 1% FX tailwind that we discussed and saw in Q2 2025, net retention surpassed our expectations, demonstrating strong platform expansion within our existing customer base. Going forward, we continue to model the business with an annual NRR of 110%. Also, as Julie discussed, we are making good progress on global expansion, increasing the percentage of revenue coming from outside the Americas.

To provide a little bit more color, Europe has consistently delivered strong revenue growth over the past few years. You saw Julie talk about this. On a trailing 12-month basis, Europe has grown 38% year-over-year. This healthy growth rate is an example of how our international strategy is continuing to contribute to overall durable growth.

Now let's do a quick recap of our growth trends. First, our platform and broad portfolio of solutions have enabled us to sustain strong, durable subscription revenue growth. Second, our customers are spending more with us. Contract sizes are growing, both when we sell new logos and also when we expand into our existing base. Third, our solutions are sticky, as shown by our best-in-class retention -- revenue retention rates. And finally, our international play is delivering strong growth for us, becoming a larger and larger piece of our revenue over time.

So what's in store for our future revenue? As we provided during our Q2 earnings call, for 2025, we project total revenue to be between $870 million and $873 million. As a reminder, this guidance assumes a 20% subscription revenue growth rate at the midpoint. This is a risk-adjusted guide and takes into account the market shifts we've experienced.

Moving on to our 2027 medium-term revenue target. We remain committed to the range we communicated last year and expect our total revenue to range from $1.1 billion to $1.2 billion in 2027. Execution in 2025 has shown significant progress towards this target, and we remain confident in our ability to achieve this result. As we look at our 2030 longer-term targets, we remain committed to achieving total revenue growth of $1.8 billion to $2 billion. This growth will come from new logos and also from the massive opportunity we have to upsell and cross-sell additional solutions into our existing customer base, as Julie discussed in detail earlier.

Now let's shift to productivity. We reiterated several times today that we're focused on both growth and productivity. So let's dive into our expanding margin story. First, while you can see that the overall op margin trend is up and to the right, we do have seasonality, which results in quarter-to-quarter variances. We believe this seasonality will continue, and you should expect similar seasonality in our medium-term and long-term operating model. While we're not providing guidance for 2026, you should assume a similar quarterly linearity to 2025, including a seasonally low Q1 that trends below the prior year's exit value.

Second, operating margin growth from 2024 to 2025 is a result of our disciplined approach to managing the business. We are outperforming our expectations from the beginning of the year. Finally, our 2025 guidance shows solid progress toward our updated, as Julie talked about, medium-term op margin target of 18% for the full year 2027. It gives us and should give you even more confidence in our ability to achieve our targets.

Julie spoke earlier about the strategy behind our margin expansion over the next few years. Here's a table that summarizes all of our operating line items and how we expect to achieve each. But first, you can see we are also providing more detail on the spend expectations built into our existing full year 2025 margin guide. A little bit more here. So starting with gross margin, we expect a 200 basis point improvement from 2024 to 2025, moving from 78% to 80%. For R&D, in 2025, we expect a 100 basis point improvement year-over-year, moving from 23% in 2024 to 22% in 2025. Our 2025 sales and marketing margin will remain relatively unchanged compared to 2024 due to the annualized cost of the additional quota-carrying reps we hired in the second half of 2024. Finally, for G&A, we will deliver improvement year-over-year in order to achieve the 7% to 7.5% non-GAAP operating margin in 2025, which we guided to on our Q2 earnings call.

Our progress in 2025 puts us on a good path toward our 2027 medium-term target operating model. Julie went through all these drivers and how we plan to execute to achieve our 2027 target margin, so I won't repeat them all. But I wanted to remind everyone that today, we are updating our 2027 sales and marketing target -- margin target to 39% from 41% in our previous model. As a result of this update, we are able to increase our 2027 target non-GAAP operating margin to 18% from 16% in our prior model.

Moving on to our long-term operating model. We remain committed to the 2030 targets we laid out at last year's Investor Day. This model shows that our dedication to operational discipline and to achieve margin expansion continues well beyond 2027. As we move toward our 2030 target of $1.8 billion to $2 billion in annual revenue, we also have a plan in place to achieve a 24% non-GAAP operating margin. This is the result of our dual focus on both growth and productivity.

Now let's turn to cash flow and fluctuations between our operating margin and our free cash flow margin. As we continuously deliver improved operating margin, we will also deliver improved free cash flow margin. However, cash flow margin over time does not always correlate with the trajectory of operating margin.

So let's walk through a few drivers of that gap. First, the timing and rate of growth in quarterly bookings can have an outsized impact on cash flows compared to op margin. The second driver is the timing of cash inflows based on contract duration, renewal timing and customer payment terms. While the majority of our customers pay us annually, we do have some customers who choose to pay upfront for multiyear deals, which can create fluctuations in our cash flows. And you've heard us talk about this occasionally when it's been a material impact. And the final driver is the impact of noncash items such as PTO. So I wanted to make sure that you are aware and let you know that in the U.S., we will be transitioning from our current accrued paid time off or PTO program to a flexible time-off program starting at the beginning of 2026. As employees burn down their accrued PTO, this will have a positive impact on our op margin, but this impact will not flow to our free cash flow margin.

I wanted to also call out very clearly, there is no onetime cash impact on the balance sheet due to this transition. This change is included in the 2025 guidance we provided on our Q2 earnings call.

Moving on to our capital allocation strategy. Starting with our share repurchase program. Over the past two quarters, we have retired $50 million of the $100 million share repurchase program that was approved by our Board last year. We will continue to evaluate share repurchases as part of our capital allocation strategy.

Now next, let's talk about our outstanding 2026 and 2028 convertible notes briefly. You can see the outstanding balances listed here, and we continue to evaluate our options on whether to retire early or hold these notes to term. But we've been very pleased with the optionality our use of convertible debt has provided. And it was also valuable because we've been able to get more interest income than the interest expense that we've paid due to market conditions over the past couple of years.

In closing, I hope you leave today feeling the same level of confidence and excitement that we feel about Workiva's future. To summarize everything you've heard, we have a resilient platform with a growing number of solutions that resonate with the market. You're hearing that here today. We have a strong setup for long-term durable growth. And we're focused on delivering productivity and expanding margin leverage. This winning combination sets us up for an exciting future, and we're happy to have you all along for the ride.

Thank you for joining us today very much so. We'll pause briefly here to set up the stage before we open it up for Q&A from the audience.

Great. Well, we've got Julie, Mike and Jill back on stage for Q&A. So we will open it up to the audience for Q&A. And while we're waiting for the mics to make their way to people who have questions in the in-house audience, we will kick it off with a question from online. And as a reminder to anyone at home, you can also submit a question online.

So I guess this first one is for you, Julie. So great to see the commitment to the margin expansion materialize in the updated 2027 op margin. What's changed over the last year to give you the confidence to improve this guidance?

Well, I'll start by saying we're making the change today, but our mindset and our actions over the past few years have led us to today and has given us the confidence to change the targets. We've laid the foundation over the last few years. We've had that focus on productivity, but we've seen results, which is why we actually changed our guide for the year on the operating margin. And we just have plans in place. We know what we're going to be doing over the next 6 months, 12 months, 18 months to ensure that we are working towards that new operating margin.

So again, not an abrupt change for us, but rather we've been gaining the confidence as we've been executing and making progress on some of our productivity initiatives, again, productivity to become stronger and continue to execute on our growth strategy as we scale.

Terry Tillman, Truist Securities. Thanks for all the content. It probably took a few hours to put that together, maybe a few less hours with AI. But I think the subscription growth has been impressive, though, given the macro and 20% type growth. You're talking about the margin improving to 18%, I think, or 16% from 14% or I may have that off, but in '27. Are you giving up anything on bookings and driving growth, though? Because I care about the bookings. And so some of this seems like optimization efforts in go-to-market. But what's the confidence and give us comfort on you're still going for bookings growth to sustain that 20% or even higher subscription growth going forward?

Sure. I mean two things I'll say. And the first is, as I mentioned, we're taking a practical approach and our highest priority is not to disrupt the bookings momentum. That's -- the changes we are making, and this is the second point. The changes we are making are actually making us stronger. right? We're, again, elevating the profiles of the sellers that we bring in. We're strengthening the ones we have to enable them to sell more -- sell with the platform, embrace our partners. These are -- while we are reducing spend, we are increasing the strength of the organization and the ability to go after our commercial goals.

So again, taking a practical approach and the changes we are making will actually strengthen our go-to-market.

Brett Huff from Stephens. Thanks for all this content. Really appreciate it. One of the things that you talked a little bit about, but I'd like to unpack a little is the strength of your one customer base, those that are -- have been loyal customers from early days. To us, it seems like a really big and maybe underappreciated growth driver. You talked a little bit about some of the metrics. Can you give us more meat on the bone on what is the sort of plan to go after all those folks? I know they're in good dialogue and things like that. Is it -- what's the next solution that typically they buy? What's the trigger for them buying and kind of what's their propensity? Appreciate that.

Sure. I can -- I'll take that question and that this is something we've been building a muscle on over the last several years. As we said, we, in earnest, really started selling the platform in 2021, but our organization has, again, been building the muscle to go after the account expansions and bring more and more value. A customer starts, we build a trusted relationship. They don't land with necessarily one specific solution and we expand from there. Every customer may be at a different place. But we go in, we show value. And again, it's the power and that of the platform that really makes the difference.

So our teams, again, we have transitioned from that single solution multi-solution to the platform play and our sellers are more confident. We've organized for this. We've got teams going in to focus on exactly that expansion opportunity is significant as we've described.

Okay. Great. Steve Enders from Citi. I guess two-part question. I guess, first part, just on the AI capabilities that you've rolled out here, just how are you thinking about the incremental monetization of those solutions and what that means?

And then secondly, on the new tiering model that you're rolling out, how should we think about the price uplift that comes from that? And maybe what that conversation looks like with the customers?

Sure. Thanks, Steve. I'll take that question. So I think first off, on the tiering question, and we use SEC as the example, right? The motion typically is an on-renewal topic unless there's something else that's going on, but that's one trigger event. We do have some account owners that are going in and pitching earlier if they've had some requests from their customers. But for SEC and for the others, it's typically a renewal type of conversation.

The second piece is on the uplift, right? So for example, for SEC, what we've experienced so far is we are north of a 20% uplift on the specific solution contract value of moving from the SEC standard to the SEC advanced.

We do believe that with addition of capabilities like AI that we introduced here yesterday that, that might also be another trigger event. It's interesting the dynamics for the customers have been changing with AI, and it provides another event for that.

And then the first question was related to AI specifically, yes. So yes, on the monetization there, it's interesting, right? For us, when we look at AI, it's become almost -- it's showing up in RFPs. It's become a just standard part of what people expect. And for us, again, it's the monetization through the additional packaging tier for the advanced tier, you get the AI with it rather than a specific unit price, specifically one AI feature, it's all about moving to that more premium set of capabilities in a given product tier. So yes, we'll see over time how that works.

But the other piece I would say is on AI, which has already been part of our story for the last couple of years, has been on winning more deals, right? Monetization comes through quantity, not only changing price. If you win more, you have monetization.

Alex Sklar with Raymond James. I want to follow up on Steve's question there. So when you talk about pricing and packaging broadly, can you just help frame what percentage of your installed base is maybe on those standard packages versus an advanced or essentials today and that kind of -- what that journey will look like?

And then related, just the idea that capital markets activity is picking up now. You now have this good, better, best motion. Is the outlook for SEC reporting because that's something we could see actually accelerate here in the next couple of years between those two kind of growth drivers?

Well, I'll just start on the timing of it, right? We just started. So this -- we're a couple of quarters into it. We're encouraged by what we've seen, but I don't think we have enough data points yet to forecast a trend. So there's no guide on this with -- specifically on that uplift. When we look at this, in general, we see this as a long durable demand opportunity, right? This is not a -- everybody has to move by Q3 or Q4 or some time date piece here, right? This will be a multiyear durable demand story as customers evaluate moving from a standard to a premium option, for example.

And as it relates to cap markets, I don't know if anyone, Julie or Jill, if you want to talk about cap markets?

Sure. I mean we are encouraged by what we're seeing in the market. We've not counted on any comeback as we've put out our guide. So that's the way we have been approaching the market right now. But we do see some increased activity, but again, nothing significant that would be upside for us in the guide.

Andrew DeGasperi from BNP Paribas. Just on the follow-up on the question on go-to-market. I just wanted to know the timing of the changes that you made or are you making? And then maybe second, you see confidence is not going to impact bookings. Just wondering because this has happened in the past with other software companies when they make some drastic changes, it does have an impact. So I just want to understand what's the confidence behind that.

We've rolled out the changes over the last, as Mike said, several months, quarters. So again, encouraged by what we're seeing, but it has not yet been a dramatic change. We've begun to see the momentum, and we're very encouraged and we continue to do that across our portfolio.

Yes. I was just going to jump in, Andrew. I think you're asking about the sales reps, right? Just a sales rep impact. Yes, I think in general, I think -- I mean, Julie highlighted it, right? We've been going through organizational changes throughout. You saw the changes in R&D. You saw the changes in cost of sales. We've been very thorough and thoughtful about how we make those changes in sales and marketing, knowing it's a different type of thing. And yes, we don't want to -- we want to minimize any risk around bookings by making drastic changes.

How we've been doing that is piloting things. We'll pilot a change, see how it works. If it works well, then we'll roll out in. So there's a methodical approach to that, that we've been executing over time.

Allan Verkhovski from BTIG. Thank you for the very concise and impactful presentation today. I really like how you guys have a 3x multiplier opportunity on your installed base just by selling the platform. In addition to 2/3 roughly of your customers still spending under $100,000 in ACV, I was wondering if you could talk about how you envision the mix of your growth coming from existing customers versus new maybe over the next three to five years?

And the second part, if you could just talk through the opportunities with AI to drive more margin expansion. Is this something you're really excited about? Are there maybe more exciting opportunities that you see than AI where you don't think it's that substantial? Would love to just get your take on that as well.

Sure. I think historically, we've been striving for the 50-50 blend of new logos versus new solutions, account expansion. I think as you saw today is our base on our Fortune 1000 companies continues to rise. That shift and because we have more solutions to sell and because we're focusing on account expansion, we are more likely to move towards 60% account expansion, 40% new logos. There is a lot of upside on the expansion as we've all highlighted today. So we do see that becoming a larger percentage of our revenue going forward.

On the AI side, I assume that you mean internally the way you asked the question. So we've been seeing the largest gains, of course, in commercial organizations and sales and marketing and customer success. We've been rolling out the capabilities. We've been leveraging SaaS platforms that we use internally. So we've been getting some benefit from that. We've done some of our own building with capabilities.

Our CIO organization is hard at work doing that across the organization. So I would say that we take a very practical approach to using AI across the organization. We do not subscribe to the 50%, 80% lift internally for efficiencies, but we are using it everywhere we can that it makes sense and getting a lift. And we have incorporated that mildly and again, practically in the guide, but not as a significant dramatic change.

Great question. Jake?

This is Jacob Roberge with William Blair. Just wanted to go back to the 2027 and 2030 targets that you all have. You're maintaining the top line targets that you put out last year, but this is obviously a different macro environment than you were selling into. So could you talk about what's underpinning that confidence and maybe the one or two things that might have changed to the positive versus those targets last year?

Jill?

Sure. So on the top line specifically?

Yes, specifically on the top line.

So we have outperformed from our original expectations 2024. We've talked a lot about the last three quarters of 2024 being very strong. And that, of course, is helping to feed into strong revenue growth over the past year, but also is helping to boost our overall ability to reach that goal, and you've talked about that some in the slides.

And I think that it's back to that strong base of revenue and our ability to consistently maintain our retention. With that great captive audience of customers being willing to come with us along on this journey and understand the value that we're providing to them, we do believe that there's an opportunity to continue to execute within those customers to sell more solutions.

And so I mean, I think it really is -- it's the broad portfolio of solutions. It's everything that you've heard us talk about and our ability to continue to execute on that strategy and up level within each customer to grow into that result. We feel very confident about that, as you heard today. I think there's one here in the front.

Rob Oliver at Baird. Thanks for the presentation and information. Good to see you. I have two questions. I guess, Mike, for you, first, I really appreciated you including kind of the focus on the non-seat-based model in your portion of the presentation. Obviously, that's a tremendous concern right now in the market for software investors, and you guys have not been selling seats for a long time. We saw -- I think it was either Braze or McCormick earlier on stage talking about their Gen AI usage with you guys already. So I'd be curious to know your take or Julie about how -- as you guys are approaching your customers already in a solution and value-based model, how you feel that empowers you guys to have that AI conversation in a way that helps you capture more of that value?

And then the second question I had was just around, Julie, you laid out a vision for a true platform, which I think you guys have been, but what's the time line to having developers really working on that platform?

Yes. I'll start off with the AI adoption piece. We've seen -- the market has changed now, I'd say, in the last year. We're now seeing AI showing up in RFPs. It becomes more of a central part of a conversation. And in that regard, I think it's the -- we see customers even from their top down and a lot of organizations now have a mandate that they have to see some form of AI being embraced in the organization.

With that, again, to me, it opens the door for us to have those conversations with our tiered model on premium pricing and for that premium model with the additional features. So that on the monetization side is there. And I think we're having a lot more, I'd say, commercial conversations now that relate to AI as -- even a differentiator in our competitive wins than we maybe did a year ago.

So I think we are in an interesting transition in the market on that, and we're optimistic that we are in a great position with what we launched today and have had in the past on AI.

And I'll take the platform question. We put out a vision there where we will ultimately have partners building on our platform, and we will have our full ecosystem building on the platform. And we're already seeing it to some extent today. I can think about some of the capabilities that our partners are building with our customer -- for our customers that bring them even more value on the platform, whether accelerators or other capabilities to help them, again, get more out of the Workiva solutions and the platform.

And a good example, what we're seeing is tax, right? That's something that is very unique. There are a lot of customization. It's something partners get value from by helping customers with billable hours, and we provide the tech platform. So that's something that partners are building capabilities around our platform on. So there's one that's happening today, but we continue to see that in financial services, there are a lot of specific use cases that our partners are building for our customers to get more value out of the platform, and they're built upon and using and leveraging the Workiva platform.

But as our platform gets stronger and stronger and more capable of serving the solutions we have, it's getting us a greater opportunity to roll out more solutions with ease. We just rolled out a public funds offering not too long ago. That's an example of another fit-for-purpose solution, great platform fit for us, and we can continue to do that. But as we build the platform that gets easier for us to build solutions, it also becomes easier for our partners to build upon it, which is why we envision that ultimately, we'll have a larger number of solutions built by partner and ecosystem, but leveraging the Workiva platform, which is good for all of us and for the customers and getting value.

Any further questions in the room? Great. We'll have a follow-up.

There's always lots of questions. The GRC, it was -- I thought that was strong actually seeing the 30% ARR growth. I'm curious, do you think that, that can continue to sustain higher growth than the overall business? And I think you said -- I think it was you, Mike, that was talking about there's the legacy platforms and we know who they are and then point solutions. Does one area seem more actionable in terms of winning business there in GRC?

No. Yes. So looking at that market, yes, we are pleased with the growth rate that we've seen in the last year. We're not going to give a guide by solution on a specific growth rate. But again, we're encouraged by our execution in the market. As I highlighted, we have a lot of different solutions in that category to sell. And some of -- many of our GRC solution customers are multi-solution GRC customers. We oftentimes see people starting with internal controls and then adding internal audit or risk management, policy management or additions and land with one and expand another just inside of GRC. So we're encouraged by that.

And yes, we believe it's a good growth area for us. We have both on a new logo and account expansion side opportunity there. So we're encouraged by that and look forward to continue to grow there.

Steve?

Great. Steve Enders again. I want to ask on the PTO changes. Just as we think about that rolling out or that change coming through in '25 and '26, what impact does that actually have on the margin trajectory?

So as I mentioned, it is built into the 2025 margin that we provided at our last earnings call. But we do think that there will be some acceleration of PTO usage in the second half of the year. We announced it to our employees in June. And we do expect that there'll be some accelerated usage of that balance as they work through it prior to rolling out the new flexible PTO -- flexible time-off program. And so you'll see that in the margin as part of our results of the guide that we provided.

Going into 2026, there will be continued burn down of that balance as employees continue to use that as they transition into the flexible time off. But again, I just wanted to reiterate that there will be no onetime cash impact. So there -- you will not see that as part of the transition.

Okay. Is there a way to think about like the magnitude of the benefit it's having for this year and into next year as well, just as we try to think about our models for the '27 outlook now?

So I would say that we've given the guide for this year. And so you can use that as -- we've given a guidance for free cash flow for 2025 and for the op margin for 2025. Going into 2026, we do think that we'll continue to see improvements in both of those margins, both op margin and the free cash flow margin. But there could be some of those -- it could be quarterly fluctuations or just overall fluctuations.

Free cash flow will continue to be better than op margin, we believe, but you could see some narrowing and widening of that gap as the balance of that PTO -- accrued PTO balance comes down for those in the U.S.

Great. Jake?

Yes, Jake Roberge again from William Blair. Just wanted to follow up on the go-to-market again. As you roll out those changes on reducing sales overlays and accounts under coverage, how have they actually been received by the field? And then what inning would you say we're in for those changes just given you're taking more of a layered approach to them?

So in terms of changes being received, again, we've been doing it in a thoughtful way. A number of those overlay solution reps are incredibly competent, and they are capable of selling across the portfolio. So some of them will and do move into account executive roles where they are responsible for the broad portfolio in an account. And others have moved into other solution areas. And then by attrition as well, we let them go.

So it has not been abrupt nor do we intend it to be abrupt. We're doing it over time, again, in a practical and thoughtful way.

Any further questions? Great. Well, we've covered a lot today. So I think that we will wrap it up. Thank you for taking all these great questions. Thanks for you guys in the audience for providing us with all these questions. We will post a replay of this event on our IR website in addition to the slide deck. So if you'd like to review that, that will be available online. And please don't hesitate to reach out if you have any other questions.

And thank you all for joining us here in person. Thank you for joining us online, and we look forward to continuing the conversation. Thank you.

Good afternoon, ladies and gentlemen. My name is Gary, and I will be your host operator on this call. [Operator Instructions] Please note that this call is being recorded on July 31, 2025, 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 at Workiva. Please go ahead.

Good afternoon, and thank you for joining Workiva's Q2 2025 Conference Call. During today's call, we will review our second quarter results and discuss our guidance for the third quarter and full year 2025. Today's call will include comments from our Chief Executive Officer, Julie Iskow; followed by our Chief Financial Officer, Jill Klindt. We will then open the call up for a Q&A session, where we will be joined by Mike Rost, our Chief Strategy Officer.

After market closed today, we issued a press release, which is available on our Investor Relations website, along with supplemental materials. 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 2025. These forward-looking statements are based on our assumptions as to the macroeconomic, political and regulatory environment as of today, reflect our best judgment 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. In Q2 of 2025, we delivered another quarter of solid financial performance, powered by the continued demand for our broad portfolio of solutions and our unified platform. We beat the high end of our revenue guidance with 23% growth in subscription revenue and 21% growth in total revenue. We also exceeded non-GAAP operating margin guidance by 380 basis points.

Our business results reflect continued execution on the 4 pillars of our growth strategy: our connected platform; our high-value, best-of-breed solutions; a high-performing partner ecosystem; and continued global expansion. We continue to see companies standardize on the Workiva platform and expand their solution use across financial reporting, GRC, sustainability and industry-specific solutions. Workiva continues to be a clear choice for those businesses that are looking to drive innovation across the office of the CFO while reducing total cost of ownership with a unified platform.

The success of our strategy is showcased by the continued strength in our large contract cohorts. In Q2, the number of contracts valued over $100,000 increased 27%. Those over $300,000 increased 37%, and contracts valued over $500,000 increased 35%, all compared to Q2 of 2024. This growth was driven by both additional solution sales within our existing customer base and the acquisition of larger new logos.

We are not just focused on growth. We are also committed to profitable growth. Entering the second half of 2025, we are raising our operating margin outlook to account for anticipated margin expansion in both Q3 and Q4. We also remain committed to the 2027 and 2030 operating margin targets that we announced a year ago. We believe that our disciplined approach to margin expansion will deliver on these results.

While in the macro environment, economic conditions are still somewhat uncertain, we remain confident in our long-term prospects. The breadth of our solution portfolio and the resilience of our customer demand provide us with multiple levers for sustained growth. From my conversations with our customers and our prospects, the top priorities of CFOs and finance leaders remain constant. They want to protect margins while funding growth. They want to better manage risks and controls, and they want to embrace data and AI to transform their legacy processes.

The Workiva platform provides the innovation, the productivity gains and the compelling value that our customers need to enhance their operational productivity and to drive their transformations. That compelling customer value is showcased by some of the large platform deals that we had in Q2. We continue to win with our broad portfolio of solutions.

The first example is a U.S.-based Fortune 500 bank that signed a 7-figure expansion deal across financial reporting, GRC and sustainability. This 12-year loyal SEC and GRC customer significantly increased their use of the platform with the purchase of bank regulatory reporting, sustainability reporting and Workiva Carbon. The primary purchasing driver for this opportunity was large financial institution readiness as outlined by the Federal Reserve. This ratings framework requires integrated governance and rigorous risk analytics across all material risk areas, including climate risks. The deal was sourced and will be delivered by a Big 4 firm.

Second, we signed a mid-6-figure new logo deal with a large U.K.-based asset management company. This firm sought to consolidate its tech stack by eliminating redundant point solutions. This led to the purchase of 4 Workiva solutions: ESEF, multi-entity reporting, sustainability reporting and controls management. The differentiators that led to this 5-year deal were Workiva's strategic partnerships with Big 4 advisory firms, our ability to scale with the customer's requirements and the option for fee-based premium customer support.

And third, we signed a mid-6-figure 5-solution new logo deal with a South American utility company. They purchased SEC reporting, controls management, audit management, risk management and sustainability, all to support a finance transformation project. The Workiva platform will be a replacement for manual processes used to assemble and file disclosures to the SEC, and it will also replace a legacy ERP-based GRC solution. This deal was sourced and will be delivered by a Big 4 firm.

It's not just about platform wins. Financial reporting, along with our financial services-specific solutions, remains the primary driver of Workiva's revenue. In Q2, we saw broad-based demand for our financial reporting solutions, including SEC reporting, multi-entity reporting, insurance reporting and fund reporting.

A key theme throughout the quarter was the sustained strong performance we achieved in financial services. This was powered by our tailored solutions for banks, investment firms and insurers. These solutions support customers in their required financial disclosures. And in the case of banks, insurance companies and investment firms, our solutions also support operational disclosures that are mission-critical to the operations of their businesses.

We continue to see strong demand across this broad TAM as our platform has proven to streamline data management and reporting processes, reduce risk and increase ROI across a wide range of customer requirements. Since debuting our public fund reporting solution earlier this year, we've seen strong uptake across private, regulated and public funds, which is highlighting the promise of this rapidly expanding market. Asset managers are accelerating fund launches to drive growth, and that surge is heightening their need for automation to keep up.

A great example of this is an account expansion deal with a Canadian financing company. This company signed a high 6-figure account expansion deal to add bank reporting and multi-entity reporting. They also expanded their use across fund reporting. Over the past 6 years, this loyal customer has grown with us since first adopting Workiva's regulated fund reporting solution in 2019. Last quarter, they expanded that footprint by onboarding more than 100 public funds through our new public fund solution. They also added bank reporting capabilities, specifically for Basel Pillar 3, which mandates that financial institutions disclose a harmonized set of qualitative and quantitative metrics so investors and counterparties can assess their capital strength and risk profile.

Another great Q2 fund reporting win was a mid-6-figure new logo deal with a New York-based investment company. This company purchased fund reporting in a competitive win over a legacy financial printer. This customer was using a manual, labor-intensive process to report on nearly 150 funds. They chose Workiva for our efficiency and platform differentiation over legacy technology and our ability to scale into additional use cases later down the line. This deal was sourced and will be implemented by a regional consulting partner.

Another strong example is a mid-6-figure account expansion deal that was signed with a U.S.-based private equity firm. This company was previously using a manual process for over 130 funds globally. They already had experience with the Workiva platform, having used our S-1 solution when they went public. Their experience with us gave them the confidence that they could both automate and streamline the reporting process for fund reporting. This deal was a co-sell and will be implemented by a regional consulting partner.

I'll now turn to governance, risk and compliance. Companies operate amid constantly shifting risk and compliance demands and heightened stakeholder scrutiny. And as they navigate new regulatory frameworks, geopolitical uncertainties and emerging challenges like fast-evolving AI governance, they increasingly turn to our GRC solutions, fueling ongoing demand.

Here are a couple of compelling GRC wins in Q2. First, a top 20 U.S. bank signed a mid-6-figure account expansion deal for controls management, compliance management and policies and procedures. This bank started on the Workiva platform 18 months ago with the purchase of sustainability and financial reporting. The value of our platform was clear, and it was a key differentiator in this competitive win. This deal was a co-sell and will be implemented by a regional consulting partner.

And second, we signed a multi 6-figure account expansion deal for audit and controls management with a U.K. member firm of a Big 4 partner. This partnership leverages the Workiva platform as a managed service to power the firm's Controls as a Service offering that provides integrated GRC solutions to its clients. This deal underscores Workiva's strength in providing the platform that drives the service lines of our partners. Delivery through a managed service channel provides Workiva expanded market reach and lower distribution costs. And it's also a great experience for the end client as Big 4 firms convert our platform into a full-service, outcome-based solution.

I'll turn now to sustainability, where we saw a dynamic market throughout the quarter, influenced by shifting political policies, proposed regulatory changes and softer demand in certain segments. At Workiva, we did observe a moderation in demand within our corporate account segment across both the U.S. and Europe. While the strong momentum we saw in the latter half of 2024 has tapered some, sustainability continues to drive both new logo wins and account expansion. In these deals, there continue to be many buying drivers, including business performance, managing stakeholder expectations and yes, regulations such as the CSRD, ISSB and the state of California climate disclosure rule.

I do want to make it clear that while sustainability remains a strategic part of our business, it is less than 15% of our total revenue. Also of note, the demand risks in this changing market and the weighted contribution of this solution on our bookings have already been factored into the updated revenue guidance we are providing today.

We remain confident in the long, durable demand of this market, which is supported by the deals that we continue to win. Here are 3 notable sustainability wins for the quarter. First, a top 5 U.S. bank signed a 6-figure account expansion deal for sustainability reporting and CSRD. This Fortune 100 customer had been doing voluntary sustainability reporting using Workiva for the past 3 years. This program, which has transformed into a centralized, enterprise-wide reporting framework, now reports into the office of the CFO. Our value-based discussions and strong partner alliances led to their expansion on Workiva's platform for a more mature, connected sustainability reporting program that is prepared for CSRD compliance. This deal was a co-sell and will be delivered by a Big 4 firm.

Second, a top 5 global investment firm signed a mid-6-figure expansion deal with the addition of sustainability reporting and fund reporting to solve an array of requirements, including fund-level ESG requirements and multiple country ESG disclosures. This deal underscores the importance of combining sustainability and financial information in one reporting platform. This customer was previously outsourcing all of their financial and regulatory reporting requirements for their 300 funds, and they trusted Workiva to bring the reporting process in-house, drive efficiency and save them money. This deal was a co-sell and will be delivered by a Big 4 firm.

And third, a European multinational manufacturing company signed a 6-figure sustainability reporting and sustainability assurance deal as part of their CSRD readiness journey. Having previously used Workiva for annual reporting, this customer was looking to replace their manual, inefficient sustainability reporting process with a more automated and integrated platform that allows them to adapt to changing regulations and respond to increased reporting demands from stakeholders. This deal was a co-sell and will be delivered by a Big 4 firm.

Finally, I'd like to share an important leadership update. After 17 years with Workiva, Jill Klindt will be stepping down from her role as Executive Vice President and Chief Financial Officer. Throughout her tenure, Jill has played a foundational role in shaping Workiva into the company we are today. From our early days as a start-up to our milestone of reaching $800 million in revenue, she has been a steady, trusted leader and partner through every phase of growth. Her impact will be felt well beyond her time here.

I'm deeply grateful to Jill for the contribution she has made to Workiva and to our leadership team. She has our full support in this transition and our warmest wishes as she looks ahead to what's next. Jill will continue to serve as CFO through December 2025 as we conduct a comprehensive search for our next CFO.

In closing, I'd like to thank all of our dedicated employees for their focused execution this quarter, driving better business outcomes for our customers through transparency and accountability. And with that, I'll now turn the call over to Jill to walk you through our financial results and 2025 guidance in more detail. Over to you, Jill.

Thank you, Julie. I appreciate the kind words. My journey at Workiva has simply been extraordinary, from joining this company as one of the first 10 employees of a start-up to crossing any number of growth milestones over the past 17 years. I am thankful for the experience, and I am incredibly proud of what we have built. It has been such a privilege to work with the entire team of passionate, hardworking and dedicated employees at Workiva. I also want to thank all of you, our investment community, and in particular, our shareholders, for your continued support of Workiva.

Moving on to our results. I will begin by providing an overview of the financials and key metric highlights for the second quarter of 2025. I will then provide guidance for Q3 and the full year 2025. As Julie discussed, we had a strong Q2, generating $215 million of total revenue in the second quarter, up 21% over Q2 2024 and beating the high end of our revenue guidance by $5 million. There was an approximately 1 point positive impact due to foreign currency fluctuations on revenue growth.

Q2 subscription revenue was $198 million, up 23% from Q2 2024. Both new customers and account expansions continue to contribute to our solid revenue growth with new customers added in the last 12 months accounting for 41% of the increase in Q2 subscription revenue. Q2 professional services revenue was $17 million, flat versus Q2 2024, with the decline in setup and consulting services offset by higher XBRL services.

Our non-GAAP operating margin for the quarter was 3.8%. This outperformance relative to our guidance was driven by stronger-than-expected top line results and our ongoing efforts to enhance operational leverage across the business.

I'll now move on to our performance metrics for the quarter. We had 6,467 customers at the end of Q2 2025, a growth of 320 customers from Q2 2024. Our gross retention rate was 97%, exceeding our 96% internal target. And our net retention rate was 114% for the quarter versus 109% in Q2 2024. Similar to revenue growth, there was an approximately 1 point positive impact on NRR due to foreign currency fluctuations.

During the quarter, 71% of our subscription revenue was generated from customers with multiple solutions. This is up from the 67% we achieved in Q2 2024. Growth in our large contract customer metrics also reflected strong momentum. As of the end of the quarter, we had 2,241 contracts valued at over $100,000 per year, up 27% from Q2 the prior year. The number of contracts valued over $300,000 totaled 488, up 37% from Q2 2024, and the number of contracts valued over $500,000 totaled 208, up 35% from Q2 2024.

Moving on to the balance sheet. As of June 30, 2025, cash, cash equivalents and marketable securities were $814 million, an increase of $47 million over the prior quarter end. In Q2, we used a portion of our generated cash to repurchase 132,000 shares of our Class A common stock for $10 million. This was done under the share repurchase program approved by the Board in July 2024. As of the end of the quarter, we had $50 million remaining of the original $100 million authorization, which we will continue to deploy periodically in order to help manage dilution.

As of June 30, 2025, we expect $668 million in remaining performance obligations to be recognized over the next 12 months. This is an increase of 23% versus the prior year. This growth includes approximately 2 points positive improvement due to foreign currency fluctuations.

Turning to our outlook for Q3 and full year 2025. As Julie noted, we remain firmly committed to driving profitable growth. The increase in our full year revenue guidance reflects our Q2 revenue beat and carefully factors in our assessment of market and demand risks, including that of our sustainability solution. The upward revision to our Q3 and full year 2025 operating margin guide reflects the continued focus on driving leverage at scale across the business and our planned progress towards achieving our 2027 margin targets.

For the third quarter of 2025, we expect total revenue to range from $218 million to $220 million. We expect services revenue will be down compared to Q3 2024. We expect non-GAAP operating margin to be in the range of 7% to 8%. For the full year 2025, we are increasing total revenue guidance to range from $870 million to $873 million. This increase takes into account the Q2 revenue beat. Similar to 2024, we expect total services revenue will be down year-over-year as we move low-margin services to our partners. We continue to expect subscription revenue growth will be approximately 20%.

We now expect our non-GAAP operating margin will range from 7% to 7.5%. This 200 basis point improvement reflects our ongoing commitment to drive operating leverage in the business. We now expect 2025 free cash flow margin to be approximately 10.5%. We continue to operate our business with our 2027 and 2030 targets in mind, improving productivity and operating leverage as we execute on our long-term profitable growth strategy.

Thank you all for joining the call today. We are now ready to take your questions. Operator, please open the line for Q&A.

[Operator Instructions] Our first question today is from Alex Sklar with Raymond James.

First question, maybe for you, Jill. I just had a 2-part question on the revenue outlook. First, are you seeing any contribution from capital markets picking back up? And anything that you incrementally embedded into the 2025 outlook from that? And then second, I appreciate all the callouts on FX. Did FX impact the guide at all as well?

Alex, thanks for the question. So for capital markets, we continue to see steady revenue from capital markets in Q2, similar to in the past. It's one that we're watching really closely given the activity that we've seen. And Julie would -- if you want to dive in after I answer the second part of Alex's question, I would love to hear from you, too. But we have continued to include capital markets at a steady rate in the future. And so it could be potential upside if there's a heavier return to activity in the second half.

Related to FX, we took a look at FX, and it is a part of our risk-adjusted model. We took into consideration potential changes in the -- through the rest of the year. But I would say that we aren't expecting large changes, and we don't expect it to impact our ability to reach those goals considering that we have risk-adjusted the guide. Julie, was there anything else you wanted to see -- reply related to capital markets?

Sure. I mean you covered the important element, which is that our -- we've not baked anything -- any comeback into the guide for capital markets. But we have seen some increased activity in the past few months and -- supported by some of the recent and upcoming well-publicized IPOs. In fact, a great story for Workiva, we had the IPO for Figma and also Shoulder Innovations, both of which went public today. But that detectable increase in the market activity admittedly comes off a very low comparable. So we are seeing some growth here, but nothing like we saw in the other more active periods. But continue, as Jill says, to think about cap markets as upside and not considered any cap markets return yet in the guide.

Great. Congrats on those cap markets wins. Maybe, Julie, one for you and maybe it's a 2-parter with Jill, too. But some of the financial reporting success you called out this quarter, can you talk about some of the SEC reporting bundles that you've been working on in market in terms of kind of driving upsell within that base? And did that have any impact on kind of the strong NRR in the quarter?

Sure. I'll let you know about our -- the way we've been approaching the market. We're moving towards that good, better, best model. So we bring in some additional capabilities onto our cornerstone SEC reporting or financial reporting, and we add additional capabilities and features and enhancements. And that's how we're approaching the market to get additional revenue from the customer and get additional value to the customer as well. So Jill, if you want to comment on the NRR, please do.

Sure. So we did see a nice uptick in NRR during the quarter. We had -- a few of our metrics reflected the nice upside that we had related to upsells into our existing base with -- nearing 60% of our revenue growth. S&S revenue growth from the quarter came from existing customers, and we continue to expand on the number of customers with multiple solutions. And so that participation and that movement will continue to be an important one for us. And SEC is a great way for us to -- a great place for us to start with those upsells because those are some of our oldest customers. And we have a great opportunity to go in and talk to them about what else the platform can do for them.

The next question is from Rob Oliver with Baird.

First, Jill, I just wanted to say it's been a pleasure working with you, and I wish you all the best. And you're not done with me yet because one of my questions is for you. But I'll start with Julie. Julie, there's a lot of concern in the market among companies in our coverage list of the broader software universe about the potential erosion from generative AI on seat-based models. And you guys do not have a seat-based model. You have a solutions-based model. And I'm wondering, particularly as you're showing really nice go-to-market motion and success, say, for example, in the financial services vertical, I'm wondering if that solutions-based model is being viewed as attractive by your customers and a potential asset for you guys in your go-to-market motion at this time. And then I had a quick follow-up.

Sure. Thank you, Rob, for highlighting our pricing mechanisms and models. And it certainly -- we put it in place because we wanted to let customers use the platform and not feel constrained by number of seats. So we did go to that solution-based licensing model several years ago, and it has served us well for that reason, unconstrained use of the platform. However, we do have value metrics for each of the solutions, again, broad-based demand across the portfolio. And each area has different value metrics that customers leverage and pay accordingly.

So it has served us well, and it certainly will serve us well in the AI category as well. Certainly not seat-based, and we continue to leverage that. And with AI, we'll be adding that in at some point. It's only in premium pricing today, but yes, serving us well with customers. Thank you for highlighting.

Great. Okay. Good to hear. And then, Jill, just one for you on the improved operating margin outlook for the remainder of the year and the improved free cash flow margin. I know you touched on it in your prepared remarks, but would love to hear from you where you have been able to find additional margin and opportunities for additional margin as investors look towards your reiteration of the long-term targets and the kind of margin ramp that's implicit within that.

Yes. Thanks, Rob, and thanks for the kind words. I appreciate it. I have enjoyed working with you as well. As far as our improved margin, we're very pleased with the results that we had for Q2 and for the guidance that we're providing. It's a result of continued focus on execution across the business and focusing on productivity and ways that we can work much -- work smarter. And it really is not one thing and not one part of the business, but an overall focus by the team to be better and execute at a higher level. And we're starting to see the results of some of the things that we've been doing. And you'll see us continue to focus on that as a movement as we continue to show the results and execute on our strategy.

The next question is from Steve Enders with Citi.

Congrats again on working with you and looking forward to seeing where things go from here. I guess I want to start on the sustainability portfolio and, I guess, get a little more detail on what it is that you are seeing in the marketplace. I guess, for one, it sounds like it's being accounted for in the guide or some of the weaknesses. But maybe just how does that manifest? Or what is that -- or how is that kind of playing out in the numbers? And then I guess, secondarily, just how are you kind of viewing the pipeline or the opportunity from here and maybe what that looks like over the next few years?

Sure. Thank you. Thank you for the question. Not unexpected, given the political and regulatory landscape and nor was it unexpected for us in terms of what we saw. As I highlighted in the prepared remarks, we did observe a moderation in demand in Q2 within our corporate account segment across both U.S. and Europe. But while the strong momentum we saw really in the latter half of the year -- that's what we tapered off from. And I think that's really important to recognize. And while it has tapered off from those prior quarters, strong quarters, it still continues to drive growth for us, both in new logo wins and account expansions.

And I do think you asked about some numbers and impact. Probably worth reminding again, sustainability is only 20% of our TAM, and it's less than 15% of our revenue. So current demand, yes, we're seeing that slowing in the -- primarily in the corporate segment, but it's been factored, as you said, into updated revenue guidance that we're providing today. So that's really the gist of it. But we remain optimistic on the long, durable demand of the market.

We're seeing deals come in with -- well, I should say associated with, yes, regulation. But beyond that, too, science-based targets have been set. There are now up to 85 companies -- 8,500 companies, excuse me, setting Science Based Targets initiative. Organizations are just looking to better manage risk and address their stakeholder expectations. So we are seeing market demand beyond the regulation. We just wanted to highlight that given the strong quarters that we had, we had multiple strong quarters last year, yes, the growth has moderated. So that's essentially what it is. We still, of course, believe this is a long, durable demand market.

Okay. That makes sense. That's good to hear. And then just on the free cash flow guide, I guess, good to see the EBIT margin raise. But I guess I would have expected maybe free cash flow to show maybe a similar pace of expansion in the updated guide for this year. So I guess any factors that we should be taking into account there? Or maybe what's different in the assumptions on the free cash flow side versus the EBIT margin side?

Sure. Free cash flow is a really complex metric for us because it does have a lot of factors related to the timing of cash inflows and cash outflows in addition to just the impact from the margin guide that we provided. And so it can have some amount of fluctuations aside from that. But I think that similar to what we talked about in our last earnings call, when we talk about a risk-adjusted guide, this is one of the areas where it shows up. There is more risk and more uncertainty the further out from today that we get. And the free cash flow margin that we provided is really that risk-adjusted metric that we believe properly reflects our business through the end of the year. And with the timing differences and some of that complexity rolled into it, we feel very good about that number.

The next question is from Terry Tillman with Truist Securities.

This is Dominique Manansala on for Terry. So just looking at the mandate for CFO Act agencies to modernize their financial system using approved marketplace vendors, have you seen any early RFP activity from these agencies? And how significant could that opportunity become over the back half of the year or in the long term?

Dominique, can you actually repeat the question? Sorry, it cut out a little bit for us.

Yes, sure. No problem. So just referring back to that CFO Act where agencies have to modernize their financial systems using the approved marketplace vendors. Just wondering if you're seeing any early RFP activity from these agencies and how that opportunity can look in the back half or in the long term.

Sure. We have been able to get into conversations, and we are the only SaaS platform in the marketplace that has a platform to cover the integrated reporting and assurance and GRC as we do. So we're seeing early signs of -- I'll say we're having good discussions. So no comments on the actual uptick at this point. But our platform does provide an opportunity, yes, to go in and provide services to the government who is looking primarily to transform and automate, become efficient, accountable and so forth. So it's a good opportunity for Workiva.

Got it. And then just as you evaluate growth opportunities in the current environment, how are you thinking about M&A? Just wanted to know if there are any specific product areas like GenAI, ESG or vertical solutions where you may be more inclined to build -- to buy versus build.

Sure. We -- as I always say, we scour the earth essentially to look for all opportunities, whether it's a gap to close on the platform, whether it's technology to level up all solutions, adjacencies, et cetera. So no preconceived notions, but we're continually looking to find potential partners and M&A that can really strengthen the platform and either go after our large and addressed TAM in a faster way or potentially expand that TAM.

The next question is from Andrew DeGasperi with BNP Paribas.

Julie, maybe -- earlier in the prepared remarks, you mentioned some big wins. And I think financial services or a large bank was one you mentioned tied to the Federal Reserve. Can you maybe provide a little more context on that? Like is this something that potentially could be a driver in the near term for that cohort of customers?

Financial services regulations have been drivers for years. And we are going deeper into the market. While our focus has been there, we're going to continue to go in even more extensively. So yes, absolutely, we're continuing to increase the use cases that we have under the financial services area, regulatory, certainly, and we're going to continue to focus on banks and the risk regulations and investments and fund reporting. So you will see more of that. Also have insurance market with 20-or-so regulations that we sell to as well.

That's helpful. And then, Jill, by the way, also a pleasure to work with you and wish you all the best going forward. I just had a question in terms of what you said earlier in terms of the margin. And what I'm trying to understand is, are you making any changes to the sales and marketing investments assumptions that you had for the back half? Is that some of the driver behind the outperformance?

So I would say that we're constantly looking at our sales and marketing resources and reallocating based on current business. But there wasn't any large-scale change to that investment. And what you'll see from us is a lot of what you've seen in the past, which is being thoughtful around how we built the business, thoughtful around how we approach our markets. And sometimes that does include adjustments in territories and adjustments in teams. And you've seen us do that across the sales team as it is. And one of those examples would be moving towards a hunter-farmer model in certain areas this year.

And so we will continue to make those kind of changes in order to focus on profitability and efficiency throughout the business. And so within sales and marketing, those aren't held aside. We'll also be trying to make those improvements and find efficiencies and better leverage for the resources within our sales and marketing teams. And that's definitely a part of the improvement. But something you can always look towards is our 2027 targets, which we reiterated on the call, prepared remarks. And we are still focused on executing and progressing on our goals with those 2027 margin targets in mind, inclusive of the split between the different areas of the business.

The next question is from Jake Roberge with William Blair.

Jill, I wish you all the best moving forward. It's been great working with you. Julie, just on the macro, I know you referenced some pressure on demand for your sustainability suite. But just given the solid results here, did you see any other changes or improvements across the broader base over the last few months? Or was it fairly consistent with the trends that you called out last quarter?

I appreciate the question. The macro is on top of minds of most of us running SaaS companies these days. And the reality is we didn't really see much change from Q1 to Q2. Overall, market conditions remain fairly constant. And we saw some uncertainty maybe across all sectors and very similar to what we saw in Q1, the deal cycle elongation, which is expected in an uncertain market. In some cases, we saw -- even when we were selected as a vendor, I would say, we saw it's taking more time to get some deals over the line. And you see some companies just being more thoughtful in the timing of their spend for some of these transformational purchases.

But we still continue to see some signature deals come in and we have some great wins, some of which I did share in the prepared remarks. But I think overall, demand has moderated for us compared to the momentum that we saw in those stellar bookings quarters we had in 2024. But all of that's been factored into our latest guide, as Jill has mentioned. And we've raised the guide in our subscription revenue for 2025 to reflect the beat. But really, in direct answer to your question, very consistent from this quarter from last.

Okay. That's helpful. And then just to double-click on the sustainability front. You referenced the tempered demand in the corporate segment. But can you talk about what you're hearing from some of the larger enterprise and wave 1 CSRD reporters and if that kind of is different versus the corporate segment? And if there's been any change on that front over the last few months.

Sure. We talk about our corporate segment -- I mean, the mid-market primarily. We have our sales categorized into corporate, strategic and major accounts. And we did see the softening there, I mean, around regulation, some delays and so forth. But that's really where it is. Our market is primarily upmarket. That's where our strong market is. And the regulation with CSRD for the most part remains in place there for the large companies in the wave 1 in Europe. And those that want to play in a global ecosystem and supply chain continue on with their demand and so forth. So -- and as I said, it's beyond regulation, it's stakeholders and risk management and so forth. So yes, we did call out primarily where we saw the tapering off a bit and a softening, I'd say, for that corporate market or mid-market.

The next question is from Adam Hotchkiss with Goldman Sachs.

I would like to ask an earlier question a different way, Julie. I think you mentioned how sustainability was a bit stronger in 2024 and that things have moderated. But subscription revenue here has accelerated. I think it's your highest growth quarter in the last number of quarters. Forward-looking metrics like billings have accelerated, and cRPO continues to be strong. And so could you maybe marry some of those moderation comments, in particular around sustainability and the broader market, with the acceleration or broad-based acceleration we're seeing in the business ex sustainability? And what do you think is driving that? And how sustainable do you think that is?

Our guide, of course, just took into account the comments I already made just a moment ago, which is just overall the risks, and that's from the uncertain macro and what we're seeing overall and broad-based across the portfolio. But we also adjusted for risk there on the sustainability because, again, of the regulatory and political environment. But we had strong revenue this quarter, and that comes from a lot -- our subscription revenue is generated from customers with multiple solutions. The platform is resonating -- our partner ecosystem and so forth is just performing there. So we do have a very resilient platform, and we're selling -- it's again, broad-based. We have a large portfolio of solutions that we offer in the market. So that's really kind of where the revenue comes from.

And then, of course, we are a subscription SaaS company. And inherent in that business model is that in any given quarter, we've got deals booked from prior quarters as well. So that's where subscription revenue comes from as well. But it really -- again, I'll highlight again, less than 15% of our revenue is from sustainability. We have broad-based platform, and it's resonating in the market. And again, strong growth. But we, of course, are going to take a risk-adjusted approach as we look at the guide.

Okay. That's really helpful. And then just on the -- asking the AI question another way, how do you think about -- and especially given how things have evolved recently, how Workiva's moat against generative AI technologies writ large in some of these agents that allow companies to utilize their operational data in different ways? Could you just maybe speak to the moat that Workiva has built around AI? And you think -- how you think about the insulation of your reporting product set and workflow product versus some of these newer upstart technologies?

Sure. We've spent 1.5 decades building trusted relationships with our customers. And we have the most innovative technology, and we really focus on the customer data. That's very important to customers that we care for it and it's important to us. But of course, we are bringing in the latest technology and data. When it comes to AI, data is a differentiator. And we happen to have data that we can leverage in these AI capabilities. But we're bringing the capabilities and the technologies onto the platform to ensure that we bring additional value to the customers and differentiate.

So we are going to continue to invest in AI across the platform. We bring it into our platform. And our controlled, secure, auditable environment give customers the comfort and the knowledge that their data remains within the platform, not used to train models and so forth. But we're helping them with, of course, speed and efficiency, helping them to respond quickly to risk and volatility with greater focus. We're seeing some ROIs from our customer that show measurable impact, and they're leveraging those capabilities on the platform. So I do want to emphasize, we take it very seriously that we have trusted relationships with our customers, but we will be committed to bringing value to the customers using AI.

The next question is from Daniel Jester with BMO Capital Markets.

This is Kyle Aberasturi on for Dan Jester. It looks like a strong quarter for customer growth, especially the larger businesses. Could you help us unpack where in the product portfolio the strength is coming from and then more generally, what you're seeing in the competitive landscape?

I caught the part of the -- you want to talk about the product portfolio. Can you repeat the initial part of the question prior to the competitive landscape?

Yes, sure. So it looks like a strong quarter for customer growth, especially for larger businesses. Could you help us unpack where in the product portfolio the strength is coming from and then more generally, what you're seeing in the competitive landscape?

Sure. We continue to see broad-based demand across the portfolio. That's something that's been consistent quarter after quarter. Our platform -- one of the strengths of the platform, very resilient. And for the most part, the demand continues across all solutions. So it really depends on where the customer is, if they're doing transformation, if they're in financial services, where they are, whether they're focused on sustainability. It's not one area or another that we're seeing trends -- deep trends on. It really is broad-based across the portfolio.

In terms of the competition, we continue to have competition, but it is point solution primarily, not a platform as we have for all the capabilities that we have on one platform. But also there's a lot of legacy technology there that we are competing against. So status quo, legacy and point solutions are primarily the competitors that we face. But our differentiation comes in very strong with a broad-based platform, also connection to all the partners in our ecosystem. So that's really how we win, high-value, fit-for-purpose solutions, but it's on the platform connected, ever becoming more open and intelligent platform.

Got it. And then can you just discuss how you're thinking about investment plans and the business' headcount expectations for the remainder of 2025 and into 2026?

Thanks, Kyle. So we will continue to focus on productivity and leverage with our existing resources. We, of course, will continue to make investment decisions based on the potential outcomes from those investments. And that will, in some cases, lead to hiring in certain areas. But really, the focus that we have as we execute on our midterm, long-term margin goals is just ensuring that we are -- we have profitable growth and that we're executing on our strategy in a way that makes sense with our margin goals in mind.

The next question is from Ryan Krieger with Wolfe Research.

Congrats on a solid quarter. I just want to touch on retention quickly. It was incredibly strong this quarter, even excluding FX. So can you provide some additional color on maybe what drove that strength and help us think about the mix of pricing versus peer expansion contribution there? And then how should we think about retention the rest of this year? I know you've historically talked about over 110% being positive, but is this potentially an inflection point just given the momentum that you're seeing?

Yes. So exactly right, Ryan. And thanks for the kind words on the quarter. So when we think about NRR, this was a high point for us certainly. And there was the impact from currency. But overall, what we were seeing here was really about the upside of selling into our existing base. At any point in time, we have been focusing more on price increase, but that's not a large part of our NRR in any quarter generally. The majority of our uplift on NRR tends to be from the additional solutions sold into our base, and that's really where we focus when we think about NRR. And of course, we get the benefit of amazing gross retention as well and retaining our existing customers and contracts.

And then any way to maybe think about it for the rest of the year?

For the rest of the year, I would still say that, that 110% plus is what we think of as a good result there. It can fluctuate because of currency. It can fluctuate, of course, because of the mix between sales into new customers versus the existing customer base, but 110% plus is a good result for us.

This concludes our question-and-answer session, and the conference has also now concluded. Thank you for attending today's presentation. You may now disconnect.