Workiva, Inc. Class A Aktie

Good morning, everyone, and welcome to Workiva's 2026 Analyst and Investor Day. Thanks to you who have joined us all here in person. It's great to see you all, and thank you to everyone who's joining us on the live stream. I'm Katie White, Workiva's Senior Director of Investor Relations.

Before we get started, I'll lead off with our safe harbor. During today's presentation, we will be making forward-looking statements regarding future events and performance, and these statements are subject to known and unknown risks and uncertainties and reflect our expectations only as of today, September 15, 2026. We undertake no obligation to update them. We will also reference certain non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles.

Reconciliations are available in our materials. We have a full agenda for you today. Julie Iskow, our CEO, will kick things off with our strategy and the opportunity ahead. Deepak Bharadwaj, our Chief Product Officer, will take you deeper into our platform and the innovation driving it. Mike Rost, our Chief Strategy Officer, will walk through the growth opportunity in front of us; and Barbara Larson, our CFO, will close with our financial framework and 2030 targets. We will then open it up for a Q&A session. With that, let me turn it over to our CEO, Julie Iskow.

Thank you, Katie, and good morning, everyone. For those of you who joined us at Amplify this morning, welcome back. And for everyone joining us for the first time today, including those of you on the live stream, thank you for being here. We have a lot to share with you.

Workiva hit $1 billion in revenue in 2026. And at the same time, our operating margin is expanding. In fact, we're now on track to hit our 2027 non-GAAP operating margin target a full year early. We have a strong business, a clear strategy and significant opportunity ahead of us. And in case you haven't noticed, enterprise software is having a moment. We all know AI is changing what's technically possible. So it's changing what customers expect from software, and it's changing what we can build and how fast we can build it.

For Workiva, that creates a significant opportunity because we don't have to choose between continuing to grow the business that we have today and building what comes next. We can do both. We have the customers, the platform, the domain expertise and the distribution and the trust. Today, we're reaffirming our 2030 revenue target of $1.8 billion to $2 billion, and we're raising our 2030 non-GAAP operating margin target to approximately 26%. Barbara will take you through the financial framework and provide more detail on the path to achieving these.

But first, I want to show you why we are confident in our ability to deliver on our targets. Let me start with the strategy. It hasn't changed. These four tenets have guided our growth for years, and they continue to guide it today. We build Fit-for-Purpose, high-value solutions that solve important problems for our customers. We deliver these solutions on an open and intelligent platform, and we continue to expand globally and extend our reach and our capabilities through a growing partner ecosystem.

Together, these four tenets continue to define how we grow Workiva. What's changing is our ability to create more value from them. AI is expanding what's possible for our products, for our platform, for our customers and for our partners. And that's giving us new ways to execute on our strategy and drive growth. Why? Because enterprise software itself is changing.

Now there are 3 important changes happening at the same time. First, software can now do more of the work. For most of the software era, applications were built to help people do their job. With Agentic AI, software can now take on more of the work.

Second, customer expectations are changing. Finance, risk, audit and sustainability leaders are being asked to move faster to manage more complexity, to govern data and AI and to do more with their teams. And they're going to expect more from their software, not just better tools, but technology that can actually take work off of their team's plates.

And third, the role of the business user is changing. Users aren't just using software anymore. They're becoming builders. They're building agents and automating processes and connecting systems and creating new ways to get work done. So they need more than just applications they can use. They need a platform that they can build upon.

Put these 3 changes together and enterprise software has a much bigger role to play. And that requires a different kind of enterprise platform. For Workiva, that means transforming our platform. And this transformation enables us to do 2 things: protect and grow our core, which makes the business we have today stronger and more capable and use that same platform to build what's next. So what has to change in the platform to make that possible? It starts with understanding the customers' business.

Today, Workiva understands the documents and the spreadsheets and the reports and the data and the processes our customers work with. Now we're building the platform to understand the business itself, it's entities and its accounts, its people, its risks, its controls and policies, the regulations that apply to it and how those things relate to each other. That's the business context that AI needs to take on more of the work. And we're not just asking customers to recreate their business inside of Workiva. We're already connecting to so many of the systems where their data already lives, and we connect that data to the customers' business context.

So the platform doesn't just have the data. It understands what the data needs. And there's another critical piece, trust, traceability, defensibility and auditability. These capabilities have always been essential to the work our customers do. And as software takes on more of that work, they become even more important. Getting an answer isn't enough. You need to know where it came from. You need to know you can trust it and you need to be able to prove it. So we're bringing together an understanding of the customer's business with the trust that's required for consequential work.

And there's another benefit to building that understanding at the platform level. The more that a customer does with Workiva, the more valuable the platform can become. Think about a customer using Workiva for financial reporting. We've connected to their source systems. We understand their entities and their data relationships, their permissions and the context around their financial reporting. Now when they add GRC or sustainability or another regulatory reporting solution, they don't start from 0. The new solution can build on the business context, the data connections and the platform capabilities that are already in Workiva.

And as they do more with us, more of their work becomes connected. Their financial data can connect to their controls. Their controls can connect to their risks. Their risk can connect to their policies and their policies can connect to the regulatory requirements. Now you start to see why one platform matters so much. These solutions aren't operating in isolation. And as more of that work comes together, the platform becomes more valuable to the customer. And we're already using that platform to make our solutions more capable and take on more of that work.

A few examples of our agents that are doing just that. Tie-out Agent. It automatically validates numerical consistency across financial reporting documents, and it routes exceptions straight to reviewers. Our Sustainability Disclosure Agent, it can gather relevant information. It can draft and check and improve disclosures directly against sustainability frameworks and prepare the disclosure for review. Our Automated Testing Agent, it runs end-to-end control testing, validating samples, generating test attributes, executing procedures, surfacing annotated results, expanding coverage and accelerating review. But the bigger opportunity is to go beyond individual agents performing individual tasks.

With Agentic AI, Workiva's platform can take on more of an entire process. As I've reassured the Amplify audience this morning, the customer determines the level of autonomy. They stay in control. In some cases, they may want to stay closely involved. In others, Workiva can do most of the work and bring them in for exceptions or approvals. It is their choice. This is where we're going. Workiva taking on more of the work with the customer in control. And taking on more of the work opens up much broader opportunities for Workiva. Earlier this morning, the product keynote, we demonstrated one example of how we're beginning to expand our regulatory business. We already do a significant amount of regulatory reporting today.

Our customers use Workiva to bring data together to apply controls and to produce filings and disclosures for regulators around the world. But the customer problem is so much broader than producing a regulatory report. Companies have to stay compliant with a vast number of regulatory requirements and obligations. They have to understand which regulations apply to them and what they require. They need to monitor changes and make sure they continue to meet those requirements. And they need to be able to demonstrate that they did. And this is the opportunity we are beginning to go after.

We're starting by expanding the regulatory reporting we do today. And as we do that, we're also building more regulatory knowledge and capability into the platform. And we can reuse that knowledge and those capabilities across customers. Over time, the platform can understand what's required, it can anticipate what needs to happen, and it can gather and validate the information and execute more of the work and continuously monitor as requirements change. So we'll be able to do that regulatory work for our customers to help them stay compliant, not just generate a report.

That's our vision to become the platform that organizations rely on to manage their regulatory work. So why Workiva? Why are we so well positioned to be a leader in this market? Because we have a combination of earned advantages that are incredibly hard to replicate. Trust, governance, traceability, they're already at the core of our platform. We understand regulatory work, and we have extensive experience delivering it. And we have distribution. We have more than 6,000 enterprise customers that already trust Workiva with some of their most important data and regulatory work. And we're already part of our customers' technology ecosystems, and we're connected to many of the systems where that data lives.

And Agentic AI makes all of these earned advantages even more valuable. It gives us the ability to use what we already have to not just help customers do the work, but to take on more of the work. That's why I believe we're uniquely positioned to lead in this market. So as we create more value for our customers, we have opportunities to monetize that value. We're already doing that today. You can see it in our Good, Better, Best monetization framework. Advanced AI capabilities are included in our premium tiers, which customers pay more to access. And as a reminder, our business is not seat-based. We already price based on value metrics. So our model isn't dependent on how many people or agents are in our platform doing the work.

And as AI allows Workiva to take on more of the work, our value-based pricing model becomes an even greater advantage. And over time, as we build new offerings and solve new problems for customers, that creates additional opportunities to monetize the value we deliver. Mike Rost will take you deeper into our pricing and packaging framework and the additional growth opportunity that we see there. Now as we continue to pursue what's next for Workiva, we're also focused on growing and strengthening the business that we have today. And you can see that in the strength of the relationships that we're building with our customers.

I want to give you 2 examples. One customer that's been with us for over 12 years and another that's joined us more recently in the past few years. Both are continuing to expand their use of Workiva. A leading global investment firm became a customer in 2014. In the early days, we typically landed with one solution, and that's exactly how this relationship started with our core offering, SEC reporting at well under $100,000 in ACV. For nearly a decade, that's where things stood, single solution. Then in 2021, they began their first expansion, adding investment reporting. Shortly after that, in 2022, they added sustainability reporting and expanded their investment reporting solution.

Once they saw the platform value, they continued buying and adopting more solutions. In 2023, they expanded upon their platform level commitment, adding 5 more solutions, Multi-Entity Reporting, Bank Reporting, Operational Reporting, Management Reporting and Policies and Procedures. That momentum carried into 2025. They added Enterprise Risk Management and Insurance Reporting, and they didn't stop there. This year, they expanded with our Fund Reporting suite. Today, they use 11 Workiva solutions, representing over $5 million in ACV. That's 55x their initial investment.

Now let's look at a more recent land. In 2023, this customer came to Workiva not for one solution, but for a platform, landing with 5 solutions on day 1, SEC Reporting, Sustainability Reporting, Stress Testing, Living Will and Bank Reporting. They began with Workiva as a multi-category customer with solutions across financial, sustainability and financial services reporting. Increasingly, this is how we do business today. Rather than land small and expand solution by solution, customers are choosing Workiva as their reporting platform from the start, spanning multiple categories at once. They landed further into GRC, adding Controls Management and Policies and Procedures, bringing them to 7 solutions total. That's 2x ACV growth in just 2 years.

The customer's ACV grew to over $1.7 million today, powered by a platform-first approach from day 1. And we're currently working an open opportunity with this account to expand with Management Reporting, Audit and a broader Regulatory Reporting solution. This will take the account to more than $2 million in 3 years. This is the opportunity. We can bring a new customer on to Workiva to solve one or more important problems and then earn the opportunity to do far more with them over time. And as that relationship grows, more of their trusted connected data and more of their critical work comes on to the Workiva platform and their trust in our platform grows with it.

And we're already seeing this happening. Over the past 4 years, customers above $300,000 ACV have grown at a 36% CAGR over the past 4 years. And 95% of customers in that same cohort have more than one solution as of Q2 2026. Customers above $500,000 ACV grew 39% in Q1 and 33% in Q2, and they've grown at a 35% CAGR over the past 4 years. In addition, more than 35% of the customers in this cohort have 6 or more solutions. And well over half of our customers still have only 1 or 2 Workiva solutions. Think about that. We have roughly 2 dozen solutions today across financial reporting, GRC and sustainability and more than half of our customers have only 1 or 2. This is why we're confident there's significant opportunity existing within our customer base.

But we're also continuing to add new customers. We're landing larger relationships with more customers starting with multiple solutions. Our average deal size has increased over 50% over the past 3 years. And we're landing multi-solution deals roughly 50% of the time when we sign a new customer compared to about 25% 3 years ago. So we're not only adding new relationships, but more of these relationships are starting from a larger base. As I showed you earlier, our platform transformation will make expansion easier over time. Once we've connected to a customer's systems and understand their business, they shouldn't have to start over every time they add Workiva solutions. Easier onboarding, faster time to value, getting even more value from what's already connected in Workiva.

This makes it easier for customers to do more with us, and it gives us more opportunity to grow these relationships. That's a lot of runway, new customers, larger initial relationships and significant opportunities to expand within the customers that we already have. And we have a significant opportunity to reach more customers across the globe. We've built a strong business in the U.S., but we're still much earlier in many markets outside the U.S. Europe is the biggest opportunity for us today. Many of the challenges we solve are especially relevant there, including multinational organizations that need to bring together data across entities and systems and jurisdictions. And there's tremendous regulatory complexity, and we're seeing that translate into growth.

Revenue outside of the U.S. has grown at a 37% CAGR over the past 4 years. We aren't simply interested in replicating what worked in the U.S. market by market. We're focused on where and how we invest. We're concentrating our resources where we see the strongest opportunity. And partners are an important part of how we extend our reach. We've worked with the Big 4 for years, and those relationships remain important. But our partner ecosystem is becoming much broader. We're doing more with other global firms, with regional firms and specialized partners with deep expertise in areas like financial services and tax and risk and regulatory compliance. Until recently, many of these firms built their Workiva practices around one or a few solutions. Now they're developing expertise across more of the Workiva platform. Some are building centers of excellence around Workiva. That means that they can bring Workiva into more customer conversations across more of our portfolio and increasingly source more opportunities for us.

This gives us more expertise in the market, more ways to reach customers and more opportunities to grow without having to reach out ourselves. And we're seeing that pay off with strong performance in partner-sourced bookings, up 62% year-over-year for the first half of 2026. And as we go after these opportunities, we're doing it with discipline. We see significant opportunity, and we're investing to capture it. For us, growth and discipline aren't competing priorities. We expect to do both, and we're demonstrating that we can. In the first half, subscription revenue grew 20%, while non-GAAP operating margin expanded more than 1,400 basis points to 18%. And we're doing that while continuing to invest significantly in the business. We're investing in the platform and AI capabilities that we talked about. We're investing in the commercial capacity to capture the growth opportunities I showed you. The discipline is making sure those investments translate into growth and leverage.

We're simplifying how we operate. We're using AI to make our teams more productive, and we're making thoughtful choices about where we invest. The goal is to continue getting more productive as we scale. And you're seeing that in our financial performance. As we shared on our second earnings -- second quarter earnings call, based on our current outlook, we now expect to achieve our 2027 non-GAAP operating margin target at 18%, a full year early. The mandate for us is clear: invest behind the opportunities that can drive growth, keep raising the bar on productivity and improve the economics of the business as we scale. That's how we're running Workiva.

So I'll leave you with this. We have a strong business, a trusted platform, deep domain expertise, thousands of enterprise customers and a growing partner ecosystem. These are earned advantages and AI makes them more valuable. They give us the ability to make the business we have today stronger and more capable and to expand what Workiva can do. That's why we don't have to choose between winning today and building what's next. We can do both. And we can do it from a position of strength, creating more value for our customers, expanding the opportunity for our partners and driving significant growth for our shareholders. That's why I believe the opportunity in front of Workiva is bigger than it's ever been. Our strategy hasn't changed. Our ability to execute it has. Now you're going to see what that looks like in our products.

Deepak will take you deeper into the platform and show you what we're building for our customers. Over to you, Deepak.

Good morning. I'm Deepak Bharadwaj, Chief Product Officer here at Workiva. It's great to be here today. So Julie just spoke about how we are becoming a different enterprise platform, one that can take on more of that work with the customer in control. That platform doesn't just strengthen the business we have today. It expands our opportunities. So today, I'm going to show you what this looks like.

And we'll go deep on product because the innovation that's happening right now is radically changing how our customers get their work done. Now I consistently hear from our customers that they want us to partner with us on their AI journey and not just help but accelerate that AI journey. So I'm going to start by building out our product strategy framework. And this framework really guides our investments and prioritization so we can maximize user value and adoption.

So let's start at the foundational core of our platform. Customers trust their most sensitive data with Workiva. And we earn this trust every day because our platform delivers on the 3 core principles that Julie just spoke about. So everything on our platform is traceable, defensible, audit ready. So when AI does that work, those principles cannot bend or break. They are all the more important. So on our platform, AI actions must be traceable, carry lineage linked back to the source. AI actions must be defensible, run under our customers' authorization and explain rationale and then defer to human judgment when customers wanted to.

And AI actions must be audit-ready, logged, time stamped with evidence of human oversight as needed. So this is AI our customers can trust working with data that they already trust at the core of our platform. And to build on this core, there are 3 categories or 3 ways in which we are approaching how we deliver AI and agentic value to our customers. So let's walk through that.

First is Fit-for-Purpose Agents. This is how we help automate tasks. And we've already launched a number of these agents across financial reporting, sustainability and GRC, and we continue to do so at a rapid clip. Here are some of the agents we've rolled out for our customers, and they're available now. Great examples of how we're delivering assistance and automation for repetitive tasks across our customers' workflows. Now these agents perform their actions on trusted data. They produce outcomes that humans can verify, supervise, trust and then they take action on their behalf within the platform.

The second category is Agent Orchestration. So one agent doing one task is useful, but the real change comes when they all coordinate. Humans can still engage at the decision points. Our customers decide which those are. So humans are always in control. And so this is where AI dramatically moves from individual productivity to transforming processes across teams and organizations, which brings us to the third category, Agentic Applications, all about outcome-driven execution. Give it a goal and these applications will reason, figure out how to accomplish the goal and then do the work under human supervision and control. These Agentic Applications, they can understand your business, understand regulations that you are subject to and figure out how they do connect.

And then all the decisions that teams make along the way across controllership, legal, compliance, operations, they become context so these applications can use it in the next cycle. So I'm going to come back to showing you our innovation and progress across these 3 categories from a solutions lens. But before that, I want to spend some time on what makes what we do even more valuable for our customers and our partners. And that is platform extensibility. So we are giving our customers and partners the ability to build on the Workiva platform and extend our capabilities into their enterprise AI and tech ecosystem. Every user can now become a builder, creating their own agents with a solution that's both powerful and easy to use. Our customers know their business. They know the specific steps their team takes every quarter, and they can describe these processes literally in their sleep. As Julie highlighted in the Amplify main stage keynote, today, we are announcing a new offering, Agent Studio. Now our customers can describe their process or their goal to Workiva Agent Studio instead and have it built agents for them without having to write a single line of code.

Agent Studio empowers our customers and partners to build in 2 ways. First, users can create their own purpose-built AI agents.

And second, users can tailor Workiva's prebuilt agents to match the way their business operates. Let's take one example use case, month-end close and you're getting ready to produce what's called the period-end flash report. So somebody typically spends hours gathering the data, building and formatting spreadsheets to compile it. Then somebody spends days chasing people for explanations and putting it all together. And then there's the painstaking process of making sure that it's all accurate and ties out. And that goes on month after month. So let me show you how Agent Studio can change all that. And what you will see is how you describe your goal, create an agent, connect it to the platform and have it create the report. Right. Let's go to the demo.

[Presentation]

So this is Agent Studio, and we are going to build a flash report from scratch. You can start with a plain language description of what you want. In fact, you can simply use a starter prompt that ships out of the box. So let's click flash report here and it says something like automate our period-end flash report, calculate variances, pull out the key metrics, flag what actually moved. So now based on this simple goal, Agent Studio will prompt you for the rest. Where should the flash report be written to? So not only will it do the analysis, but we ultimately want it as an artifact in the platform, just like any other Workiva asset, so teams can then work with it. Okay. A few more questions, data sources, some detail on analysis types. And then now you will see an outline for your review, goals, steps.

And then once you're good with it, Agent Studio starts to build. Okay. This is one of my favorite parts of Agent Studio, build mode. So you have a couple of options to get started. To the left, you can continue to instruct Agent Studio through a chat interface. And then to the right is our no-code canvas, where you can visually inspect the steps and optimize the instructions for each one. So Agent Studio just took everything you described and then turned it into an actual workflow right in front of us.

Now any AI model can generate a series of steps, but this one needs to run on our customers' data in their workflow. So let's hop over to the detailed stab, and this is where AI connects to the platform. So at the top, there's your goal. You can make changes if you want, but let's leave it as is for now. And then you have knowledge. Knowledge is a brand-new feature we announced in July. And with knowledge, you can curate specific intelligence to provide context to the agent. So AI can reference them again and again within the Workiva platform. And this is really where the deep context that is specific to a customer's team or enterprise gets used in their work.

And some examples of knowledge would include internal policies, regulations, style and brand guidelines. The list is endless. And with knowledge, users can build a smarter agent that knows a lot more about their business and how they want to work. Let's look further. Capabilities. Think about all the actions our users take, searching, reading, writing, tagging. Now all of these tools are available as capabilities directly within Agent Studio.

And to get you started, Agent Studio is intelligent enough to automatically pull in the capabilities you need based on the goal you described. All right. Let's do a review now to make sure we have no logical errors or if we need to further optimize the workflow. And then you're ready to go live. So you hit run and the AI companion opens right alongside, showing every step the agent is taking. You see every file it pulls, every calculation it makes, and you can chat with the agent at any time. And then here it is, period-end flash report that you asked for and check this out, every number in that report is linked to its source. You click it and you're back at the exact cell in the trusted data it came from. That is traceability.

And because now this is a Workiva document, you can now share it with any of your team members with permissions, approvals and sign-offs. That is defensibility. And when auditors want to see evidence, audit trails capture human and AI actions. That is audit-ready, all happening here inside the platform. And then now that you like this agent and what it does, you can schedule to run it from your calendar automatically month after month.

All right. Let's go back to the slides, please. So now imagine how many other agents you could build with just a few clicks, Accruals Review Agent, Management Pack Agent, Board Prep Agent, Comment Letter Prediction Agent. I want to share a quick story. Last month, we put Agent Studio into Workiva's own production environment. And this happened on a Friday. By Saturday morning, our sustainability team had built 3 agents in it, an Environmental Management Systems Prep Agent, a Stakeholder Communications Agent and a Reporting Assessment Agent. And by the time I heard about this, one of these agents had already run and it completed work that would have taken months of back and forth with an outside vendor. So that work was done by a team that had Agent Studio for less than a day. It's done by a team that didn't need to write any code. And so that is the transformative power our business users all now have in their hands. And the possibilities are endless.

So that's Agent Studio, a plain language agent builder integrated directly into the Workiva platform. But this is not the only way our customers are extending the value of our platform. We recognize that our customers have always used the Workiva platform alongside office productivity tools and now increasingly with their favorite LLMs as well. To optimize how Workiva works alongside these new tools, we recently introduced Workiva MCP.

With Workiva MCP, approved external AI tools and agents can now reach Workiva through a secure permissioned channel. So let's say, you want to ensure that any copies of financial information floating around in SharePoint or Google Drive are reflecting final filed versions within Workiva. You could very easily write a few prompts or build skills in cloud to validate and update that information in those downstream systems. MCP is available to our customers today, read access with permissions inherited from the person who is initiating the request.

So why is platform extensibility important? Well, platform extensibility has always been important for any software vendor because it's just hard to build everything that every user at every customer in every industry vertical, in every part of the world wants to get done. Time, resourcing, product load, they all point to platform extensibility as the solution. And our platform has been open and extensible historically. We have document templates, APIs, Python scripting, integration and workflow tools. But until now, this has needed technical capability that our business users don't really have. But today is a very different world. We build our capabilities, leveraging AI and our accelerating engineering velocity.

The capabilities we build are agentic and thus inherently solve for a wide variety of user needs. Now by making all of this extensible to build your own or to customize without needing any technical skills, our ability to deliver customer value gets compounded. They can focus on the business and solve for their needs in their way. Tribal knowledge can become institutionalized assets and work can be faster and higher quality. And the best part is they don't have to worry about what we would call regulatory work infrastructure. That infrastructure is the trust and the tooling needed to do high-stakes work.

And Workiva is the place to manage high stakes work. The safe place to adopt AI for high-stakes work and to do it your way. Okay. So we just covered our product strategy framework with the foundation of trusted data and trusted AI, the 3 investment categories, Fit-for-Purpose agents, Agent Orchestration and Agentic Applications and then platform extensibility with Agent Studio and MCP.

So let's move on to how all of these things I just talked about come together across our portfolio of solutions. We go to market with financial reporting, sustainability management and GRC.

Let's start with financial reporting and sustainability. We've announced a long list of capabilities for financial reporting, multi-entity reporting and sustainability. And this list shows you how we are making rapid progress towards enabling our customers to do their work faster with less effort and higher quality with AI. Let's dive into another demo here. I want to show you how our AI capabilities are transforming the 10-K filing experience for our users end-to-end. But let me first do some quick context setting.

One of the fundamental concepts in financial reporting is continuity. So every quarter and every year, companies aren't starting from a blank 10-Q or 10-K. They're taking the prior filing and moving it forward. In Workiva, that process is called a Rollforward. So as they get ready to file, our customers organize their working documents in folders and workspaces and every team and every enterprise does this their own way, and this evolves. So no surprise, because this is not very rules-based, it is highly manual. What you will see now is how we orchestrate agents that do the rollforward, then draft disclosures, validate the numbers, tag it and get ready for the filing.

Let's check out the demo and see how the Workiva platform can now transform this 10-K process. Let's start the demo, please.

[Presentation]

Workiva's new rollforward capability automates what you choose to bring forward using a recommended blueprint, but you have the ability to describe how your process works in plain language. So you guide the agent, hit start, and you can see how it's rollingforward, folder structures, labels, figures, comments. Day 1 of the cycle, you're already ahead of the game.

Now let's take tariffs, big topic this year. We want to update our tariff disclosure in the 10-K. It's all still new and everyone is trying to figure this out. So you want to know how your peers are disclosing. So we can run a peer benchmarking comparison and AI surfaces a summary of the comparison and recommends edits that you can review and insert into the document.

Let's now move to Tie-out. Here it is analyzing the report and the Tie-out Agent surfaces internal numerical discrepancies automatically and explains exactly what it found and where. You're still the reviewer. You can verify all overrides finding. But in a few minutes, you can be confident that the numbers tie-out.

Next, let's validate our XBRL tags before we file it with the SEC. And those validation messages are notoriously cryptic. They come from the XBRL standards definitions. But now AI reads the context of your filing and then tells you in plain English what the issue is, why the rule exists and the steps to resolve it right there next to the validation. and we are not done. Questions start rolling in from the company leadership and the Board and you go to Agent Studio.

With Agent Studio, you can build a Management Q&A agent that provides answers grounded in your own variance reports and trends from prior filings. That's how we orchestrate agents to work together and complete an end-to-end 10-K workflow. Agents doing the heavy lifting and humans engaging as needed.

Let's get back to the slides, please. Now I'd like to move on and talk a little bit about the regulatory opportunity that Julie introduced you to earlier. As we've discussed, Workiva powers critical reporting workflows from 10-Ks to 10-Qs to global statutory filings. But every organization also manages hundreds of other reporting obligations, government surveys, country by country reporting, inherited entity filings and jurisdiction-specific forms that are often tracked across disconnected systems or worse only in someone's memory.

Today, we are expanding the Workiva platform to support broader regulatory work. Our new agentic capabilities continuously monitor regulatory change, determine which entities are affected, translate new requirements into reporting obligations, prepare and map the required data and then manage the workflow all the way through submission. Instead of reacting to compliance requirements, organizations can automate the entire regulatory reporting life cycle with governance and traceability built in. This morning, we announced our first 3 agentic regulatory solutions. BE-11 Survey, Country by Country Reporting and Census Survey.

Let me walk you through the BE-11 example, so you can see how our platform capabilities extend to new use cases. The BE-11 is the annual survey of U.S. direct investment abroad, administered by the U.S. Bureau of Economic Analysis, or BEA. And this is a mandatory annual survey for substantial U.S. businesses with majority-owned foreign affiliates. So let's see how this works. Within the Workiva platform, you can see that the dashboard is telling me which reports I need to file. And that's based on my regulatory reporting requirements. Then the platform automatically maps the financial and operational data that is already available within the Workiva platform to the BE-11 form and flags any additional fields that need human review.

Now if each foreign affiliate requires roughly 12 hours of effort for the BEA, then a multinational organization with 100 reportable entities looking at approximately 1,200 hours of reporting effort. And most of that time and effort is really spent in gathering data, validating it, reconciling and reviewing exceptions. But with our platform, once the data is mapped, it can be rendered into the form, tagged and sent for submission. And this is just one example. Julie talked about how companies need to stay compliant with a vast number of regulatory requirements. This is how we can now take on more of the work and help our customers stay compliant, not just generate a report.

The 3 Agentics solutions we announced today, they're just the beginning. We will continue to expand our regulatory solution offerings over time.

So let's move on to governance, risk and compliance. We have been busy, very busy innovating in our solutions that support GRC. Today, many of these GRC processes are manual, but repeatable. Let's focus on control testing, which is the bottom half of this cycle. The testing of evidence for processes like Sarbanes-Oxley has historically been time-consuming and painful. So let's say that internal audit teams want to look at invoices and purchase orders to ensure compliance with policy. That evidence typically arrives as screenshots and PDFs, e-mails, spreadsheets, some unstructured document. This is a business process that is ripe for AI to solve.

So I'm excited about Agentic Automated Testing, a new solution that will free up all those hours of manual work. Agentic Automated Testing is supported by the orchestration of 3 AI agents, each with a specific job working together across the testing process. It starts with the Evidence Agent, which automatically classifies uploaded evidence and extracts key data, invoice numbers, purchase order details, dates, approvals, amounts into structured audit-ready information. So instead of spending hours now manually organizing evidence, auditors can immediately focus on validating the control.

The Attribute Agent takes a control test described in natural language and translates it into a reusable testing tool. So once defined, that rule can be applied consistently across the process, improving testing quality. And finally, the Testing Agent allows you to scale by running that defined rule across not just a few samples, but a larger set of transactions, delivering consistent traceable results in minutes instead of hours or days. So with Agentic Automated Testing, we have broader control testing coverage, earlier issue detection and higher assurance with significantly less manual effort. Now when you start testing at that scale, you will likely find more issues. So I'm also very excited to announce our new Remediation Agent. The platform can orchestrate agents in parallel, so the Remediation Agent can start detecting patterns in test failures, help investigate root causes, draft management responses and assign remediation tasks to the right owners.

We help our customers accelerate the speed of resolution of control test failures while reducing manual effort. In addition to automated testing and remediation, we announced more new capabilities in GRC. Policy Management, which lets our customers convert static policies into enforceable rules that connect to risks and controls and GRC reporting with MCP, visual interactions with smart charts and automated audit report generation. So as you can see, we have fully embraced AI across our GRC solution set.

Let's go back now to where I started. Julie said earlier, our strategy hasn't changed. Our ability to execute it has. As you've seen, we are moving on all fronts of our product strategy at once. Fit-for-Purpose agents live today. Agent Orchestration starting to coordinate agent runs across end-to-end workflows like 10-Ks, 8-Ks, statutory filings, controls, testing and remediation and agentic applications are opening up opportunities to do more of the regulatory work for our customers. Last but not least, platform extensibility means our users are becoming builders. Our customers now benefit from our pace of innovation as well as what they can do on their own. This is how product strategy and innovation are shaping our ability to execute the Workiva strategy.

But everything I've shown you today, the solutions we've built, Agent Studio, MCP, the new regulatory opportunity, none of it works without a trusted platform, earned over years with data our customers rely on and controls that don't bend. So let me close with this. The core of who we are is not changing. This is a platform built to deliver trust. Our AI is not bolted on. It's AI built into a foundation our customers already trust with traceability, governance, defensibility. Trust has always been what has made us different. And as we innovate, it will continue to be.

Now let me turn it over to Mike, who is going to talk about Workiva's growth opportunity. Over to you, Mike.

Thanks, Deepak. I'm Mike Rost, Workiva's Chief Strategy Officer. So Julie set the stage today with our strategy and vision. Deepak showed you the innovations that are driving it. And I'm here to connect you to that growth that is an opportunity that's in front of us. I'll cover 4 areas: the addressable market, our portfolio of solutions and specific performance metrics, and the new logo and account expansion opportunity. And finally, our monetization framework.

As we focus on the growth, we believe AI expands, not disrupts Workiva's opportunity. Every major technology shift has rewarded the companies that executed well through it. And as we accelerate into the era of AI, Workiva is in a position of strength to capitalize on this growth opportunity. That growth opportunity is supported by a wide portfolio of solutions. So here's a view of that portfolio framed by our total addressable market.

We have communicated a TAM of $35 billion, spanning 4 categories. The mix of that TAM is financial reporting at 50%, GRC and sustainability each at 20% and vertical-specific solutions at 10%. That $35 billion TAM remains intact, and we're still in the early innings of penetrating it. But we do see the addressable market expanding, and there are 2 primary drivers of that.

The first is our expansion into new solutions that support regulatory work. We announced 3 of those today. This launch is a signal that the scope of the work that we can do around regulatory is broadening. The second market expansion is AI and agentic automation. Software can now do the work, not just help people do it. That changes what's addressable for every solution in our portfolio.

So AI is expanding our long-term opportunity, but the impact isn't just ahead of us. It's here today, driving growth across our portfolio. So let's take a look at that growth with the performance of some of our solutions, starting with financial reporting.

It's easy to associate financial reporting with SEC reporting, and that's where Workiva first established its leadership. But that category has expanded well beyond a single filing. We're solving a much broader set of financial reporting challenges and creating new opportunities for growth. So let me highlight a couple examples.

The first is multi-entity reporting. This solution addresses the growing complexity of statutory reporting for multinational organizations. It's also one of our strongest growth engines. Subscription revenue has grown at a CAGR of 32% over the last 4 years, with customer count growing at 36% CAGR over the same time period. These are strategic enterprise deployments oftentimes tied to transformation and ERP modernization. We're winning here with a modern platform built for reporting complexity.

Another financial reporting area for growth is capital markets. We look at the capital markets solution in the context of the broader private-to-public journey. And we believe this remains a solid growth market for 3 reasons.

First, a healthy IPO market creates demand long before a company files an S-1. This is a great market for private company reporting. The dream of someday going public creates a great selling environment for this solution. And as companies stay private longer, they face increasingly complex reporting and governance requirements well before the IPO. For some companies before IPO may be even 5 or 10 years, a long time.

Second, the IPO itself is a powerful Workiva use case. Preparing an S-1 is complex. We bring the deal team together in a single platform to reduce that complexity.

Third, IPOs create a long-term customer opportunity. Once a company is public, its reporting and governance obligations expand. That opens the door to SEC reporting, GRC and sustainability and much more. For S-1 filings, we're benefiting from 2 powerful trends in 2026.

First, a stronger IPO market. And second, we're increasing competitive share within that market. Over the past 4 quarters, our capital markets customer count has grown 26%, while average contract value has increased 44%. These numbers reflect both a larger initial ACV for S-1s and a broader solution platform adoption. So let's turn to GRC.

GRC represents a fantastic growth opportunity for us. Our GRC portfolio includes solutions for managing audit, controls, risk, policy and compliance. And as you saw earlier, these solutions are now supported by many new agents. This broad set of GRC solutions creates multiple entry points for customer expansion.

One of the strongest growth stories within GRC is audit management. Workiva's audit management solution is designed to manage the end-to-end internal audit life cycle. And these are rarely stand-alone deals. We typically win an audit management deal as part of a broader GRC transformation initiative. And these typically replace legacy point solutions, spreadsheet-driven processes or some things that are just completely manual. The growth path for this solution has been exceptional. Over the past 4 years, subscription revenue has compounded 39% annually, while customer count has grown 28% annually.

Now turning to sustainability. This solution remains a growth driver despite the regulatory shifts over the last 18 months. Demand continues to be driven by CSRD, ISSB and emerging regulations such as California climate disclosure rules. These regulations reinforce the need for a governed enterprise reporting platform.

While sustainability remains a long-term growth opportunity, we've experienced some moderation in demand, particularly in the U.S. In Europe, however, we continue to see steady market adoption. Although the European regulatory landscape has evolved, companies continue to buy. That trend is reflected in our results. Over the past 12 months, our European sustainability customer growth base grew at 34%, while subscription revenue increased 64%.

So let's turn to our vertical solutions, where we apply the power of the Workiva platform to some of the most highly regulated industries. In banking, we support regulatory work for stress testing, capital planning, risk and treasury. For insurance, we help customers solve for regulations for actuarial, risk and group reporting. And for investment managers, we support the full life -- fund reporting life cycle, from fund financial statements through shareholder reporting.

In the utilities, we streamline the FERC reporting process, from data collection and review to electronic filing. So let's drill into one of the specific examples. This one is one of our highest growth solutions in this vertical solution category, which is fund reporting. So this solution modernizes investor and regulatory reporting for asset managers, private equity firms and fund administrators. This is another market undergoing a shift away from manual spreadsheet-driven processes and legacy on-premise solutions. That demand is translating into strong results.

Over the past 4 quarters -- or 4 years, sorry, subscription revenue has grown at 54% CAGR, while customer count has grown at 33% CAGR over the same time period. While today's announcements introduce a new generation of agentic solutions for regulatory work, our leadership in this market is already well established. This slide highlights the breadth of our regulatory reporting portfolio across banking, insurance and utilities. These are all industries with complex regulatory reporting requirements.

Our experience with this broad set of regulations provides the foundation for what's next, support for expanded regulatory work. The solutions I just highlighted and those across our portfolio fuel deeper account expansion, new customer acquisition, international growth and new monetization opportunities. So let's go into this in more detail.

Let's start with account expansion. Our expansion opportunity remains substantial. Today, roughly 60% of our 6,700 customers generate less than $100,000 of ACV. And that's actually an improvement from a year ago, which was 65%. These customers already trust Workiva, and our opportunity is to expand that trust across the platform. Our expansion opportunity is also highlighted by looking at our solution count by customer.

Today, 51% of our customers use just one Workiva solution and another 25% use only 2. In other words, 3 out of 4 customers have only begun to leverage the platform. And we're making progress. The percentage of customers using 2 or more solutions has increased from 45% to 49% over the past year. Even with that progress, we have significant room to grow in this 2-plus solution expansion opportunity.

Let's look at the solution count for some of our largest customers. This chart shows solution adoption across the 89% of the Fortune 500 that are Workiva customers. The numbers in this customer cohort highlight both proof and potential.

First, the proof. We've demonstrated that large enterprises will standardize on the platform. 27% in this group have adopted 5 or more solutions. And when we drive solution density, the ACV potential is meaningful.

And second, the potential. Our expansion opportunity, even with this largest customer cohort, is still significant. 43% of this large customer cohort use only 1 or 2 solutions, which leaves substantial room for expansion even within this largest customer category segment. Account expansion remains one of our most important growth levers, and we believe that this is a 3x ACV opportunity. This isn't theoretical. It's already happening. We're winning more platform deals, expanding within the customers that we have and increasing customer value all at the same time.

So let's move on to new logos. New customer acquisition is becoming an increasingly powerful growth lever. We're landing larger with broader platform deployments from day 1. Today, the majority of new customer wins include multiple solutions and 17% include 3 or more solutions, generating an average ACV of more than $200,000. That's a meaningful evolution in our go-to-market strategy. We're landing larger, landing broader and establishing strategic platform relationships.

One of the questions we're often asked is, so what are you landing with new customers? While 70% of our new logo wins still include a financial reporting solution, we're increasingly landing accounts through other parts of the platform. More than 32% of customers -- new customer deals include GRC, sustainability or one of our vertical solutions. We now have multiple entry points into new accounts, creating more opportunities to create strategic relationships from the outset and expand those over time.

In Europe, our new customer growth is increasingly driven by multi-solution deals. 1/3 of new logo wins span multiple solution categories, 1/4 combine financial reporting and sustainability together, which reflects the growing demand for integrated reporting. In Europe, when customers adopt the platform from the outset, they generate an average ACV of more than $200,000, demonstrating both the strategic nature of these deployments and the strength of our platform.

So let's move on to another growth lever in our kit here, which is our monetization framework. As a reminder, Workiva does not use a seat-based pricing model. We moved away from that approach more than 6 years ago. Instead, each solution is priced on the value that it delivers. We use business-specific metrics such as the number of controls, the number of legal entities, the number of funds or other operational drivers that align with the value the solution delivers. This metric-based approach has served us very well, especially in this new era of AI.

Beyond value metrics, our framework provides us the flexibility to monetize innovation. Tiered pricing enables customers to adopt the capabilities that best fit their needs while creating clear pathways to higher value offerings. That is especially important as we introduce new premium AI capabilities. As customers increase usage and adopt advanced AI capabilities, our monetization framework is designed to capture that incremental value.

Our recent customer expansion illustrates the strength of this metric-driven approach. This global PE firm initially purchased a single solution in 2024 with an ACV of $156,000. In 2025, they expanded to 2 additional solutions, increasing their annual spend by nearly 4x. One of those solution additions was fund reporting, which is priced on the metric of the number of funds managed on the platform.

This customer initially deployed the solution for only a subset of their funds. This year, the customer expanded with one additional solution and increased their adoption of fund reporting in just a few quarters. They more than doubled their spend on that solution, which was driven entirely by this increased platform usage.

That's the power of metric-based pricing. As customers expand usage, they realize more value from the platform and their investment naturally grows alongside their business. In just 2 years, this customer expanded its investment by 7x, growing to more than $1.2 million in annual spend.

Another important component of our monetization framework is our tiered pricing model, which we call good/better/best. Tiered pricing provides us a disciplined way to capture more value as the platform becomes more capable. It also offers a natural path to monetize our latest innovation. The tiered pricing model is working, and we're seeing measurable results.

A great example is SEC reporting, which is our top solution in terms of customer revenue. SEC customers seeking the most advanced AI-powered credit capabilities have the option to move to higher value tier that delivers this value. When we introduced SEC Advanced, our premium tier for SEC reporting, we said we expected meaningful price uplift and a durable trend of customer adoption. That's exactly what we delivered.

Customers upgrading from our SEC standard offering to SEC Advanced are generating contract value increases well above 20%. And we've seen nearly 15% of our SEC customers take advantage of this opportunity. This is another strong example of both proof and potential. We have proven premium tier adoption and price uplift. And we have the potential, in this case, to go after the other 85% of this SEC account base. And with our product launches today, we are delivering more and have increased value for these premium tiers of our solutions. That is the strength of our tiered pricing framework. We monetize innovation by delivering meaningful customer outcomes.

Our metric-based approach strategy has been very deliberate and one that has served us well for years. It has also provided us a great foundation for monetizing AI. In our approach to delivering AI, we break pricing and packaging into 3 categories.

The first is core AI. These are the standard AI capabilities included as part of the platform for all pricing tiers, for all solutions, for all users on the platform.

Second is premium AI. This is what we are monetizing in our premium pricing tiers today. For example, the new agents and platform capabilities announced today further strengthen those premium offerings, and we believe will increase adoption of those premium tiers. And we will continue to monetize new innovations as they are delivered.

Finally, a new category. This is what we're calling AI for builders. This is a new offering we are launching today with the release of Agent Studio. This optional add-on is focused on our premium pricing tiers and focused on those that want to build their own agents. So this is a new additional solution SKU for customers to go purchase. So there you have it, a simple, flexible, yet powerful monetization framework, a framework that enables us to capture more value as customers consume more and their value increases.

So let me close by bringing this all together. We believe Workiva is entering its next phase of growth from a position of strength. First, we're operating in a large and expanding market, and AI is increasing what Workiva can address. Second, we have a significant account expansion opportunity. Our customers trust Workiva and have -- most have only begun to leverage the full breadth of the platform.

Third, we're building a stronger new logo engine, landing larger multi-solution deals and accelerating global growth. And finally, our monetization framework is built for the AI era. Put it all together, a growing market, multiple growth levers and a proven monetization framework, and we believe we are exceptionally well positioned for long-term growth.

With that, I'll turn it over to Barbara, who will show you how these growth levers translate into our long-term financial model. Barbara?

Thank you, Mike. I am excited to be here today. I'm Barbara Larson, Workiva's CFO. So Julie just laid out our strategy. Deepak walked you through the product driving it, and Mike showed you the opportunity. Now I'll show you the numbers, where we are today, where we're headed and the discipline we're applying to get there.

Top line growth and expanding margins aren't a trade-off here. They reinforce each other, leading to a long-term, durable, profitable growth company. First, let's take a look at where we are today. This is the year Workiva crosses $1 billion in revenue. It's also the first year that we'll achieve GAAP profitability on a full year basis. And through operational rigor across the business, we expect to achieve our 2027 non-GAAP operating margin target a full year early. We are a stronger, more agile company than we were a year ago.

And as you've seen today, our platform and AI capabilities are unlocking new growth opportunities on top of a durable base. Let's start by looking at how we got here. Our subscription revenue has shown strong growth of 20% over the last 4 years. And through multiple macro disruptions, our trailing 12-month subscription revenue growth rate has consistently remained above 18% since 2019. It's that consistency and the growth levers still ahead of us that give us confidence in our long-term growth potential.

And our total revenue has grown at an 18% CAGR over the same 4 years, proving that we can adapt to changing market conditions and customer needs. We've been able to maintain that durable top line growth because of our strong growth algorithm.

First, we're adding hundreds of new customers every year. Our market opportunity is growing, and we're expanding internationally. Second, our platform is sticky. Customers stay and they grow with us. That shows up in best-in-class retention. And third, a growing portfolio of solutions priced on value gives us the ability to continue expanding within our customer base and also monetize AI as we go. So let's dig into that a bit more.

Over the last 3 years, we've added roughly 300 net new customers a year. And as Julie showed you earlier, we are landing bigger. Each new customer contract today is about 50% larger than it was 3 years ago. In fact, over the last 3 years, new customers have driven, on average, 45% of the growth in our subscription revenue.

We're also growing outside the U.S. Non-U.S. revenue was 28% of our total revenue over the last 12 months, up from just 16% 4 years ago. And Europe remains our biggest regional growth driver outside of the U.S. Revenue from Europe has grown at a 42% CAGR over the last 4 years, more than 2x our overall total revenue growth rate.

And once we land a customer, our retention is best-in-class. We model the business at 96% plus gross retention and 110% plus net retention. That hasn't changed from prior years. In fact, our gross retention rate has remained at or above 97% for the past 19 quarters. There are 3 ways we grow with our existing customers.

First, we sell more solutions. Our cross-sell motion is moving the needle on single-solution customers to multi-solution customers. Second, customers grow within the solutions that they already have. We price on value metrics, more entities, more controls, funds and complexity. So as our customers grow, we grow with them. And third, we capture more through pricing and packaging. We've always had price escalators built into our contracts. And now with our good/better/best pricing rolled out to more solutions, that's yet another lever for growth, especially as we monetize more of our AI capabilities. Put all 3 of those together, and that's how we continue to grow within our existing base.

Now this slide is one of my favorites. It shows retention isn't just a number. It's a pattern that we have across every customer cohort. Take our 2010 cohort. Those customers have grown their spend with us at a 23% CAGR through 2025. Over a decade in, and they are still expanding. And that really comes down to 2 things: the value that they see in our platform and the people behind it.

We don't just sell a product and walk away. We help our customers build Workiva into how they actually run their business. And for those of you who've joined us in person and you've had a chance to talk to any of our customers, you've probably already heard that in the way they talk about us.

We've also shown strong growth in every large ACV cohort. Customers above $100,000 ACV have grown at a 23% CAGR over the last 4 years. Customers above $300,000, 36%. And customers above $500,000, 35%. And today, we're sharing our $1 million-plus ACV cohort. And we now have more than 80 customers spending over $1 million a year with us. That group has grown at a 36% CAGR over the last 4 years.

You can see here the average annual contract value in each of these cohorts. Customers above $100,000 spend $250,000 plus on average. Customers above $300,000 spend $600,000 plus. Customers above $500,000 spend over $1 million per year. And in our $1 million-plus cohort, average annual contract value is over $1.5 million. You put that all together and the story is simple. Average contract value has increased 40% over 3 years. That's every cohort, every lever adding up to one clear trend. So that's the growth side of the story.

Now let's talk about how that growth is translating into margin. Here's what that's looked like. This shows our non-GAAP operating margin over the last 4 years, and you can see the real inflection over just the last 12 months. This reflects our commitment to operational discipline and rigor as we scale. Our strong growth fuels our productivity, and that fuels profitability. At the same time, our productivity fuels growth. We've long said that we can do both, and we are executing on both from a position of strength.

Our margin expansion comes from disciplined execution across the business. AI is helping us too, how we build, how we sell and how we operate. And we can continue investing in growth and innovation while finding leverage in other parts of the business. Underneath all of this is a strong, experienced leadership team that can execute at scale. So let's go through each of the spend areas and how we expect to gain leverage over the next few years.

Starting off with gross margin, which we continue to believe we can improve by 2 points between 2026 and 2030. First, as our mix continues to shift towards higher-margin subscription revenue, that's a natural tailwind to overall gross margin.

Second, our support org rolls up to cost of revenue. As AI enables us to scale digital support, our team can focus on the more complex escalated work. We don't need to hire at the same pace as growth.

And third, and I know we get a lot of questions on how LLM usage will affect gross margins over time. We do not expect that spend to meaningfully change our trajectory. And let me go a little bit deeper on that third point.

So first, we purchase our LLM compute through our broader infrastructure contracts. So we get favorable terms, and we do not expect our spend to increase at the same rate as usage. We're also optimizing which model handles which task on the back end. That keeps our compute costs in check and customers don't have to be experts in this. We handle it for them.

And our pricing model sets us up well for the AI era. Our premium AI capabilities are built into our good/better/best tiers, our more premium tiers. So our customers, as they move up to unlock that value, they're also paying for the AI that comes with it. That's why we still expect gross margin leverage even as AI usage grows.

Moving to R&D. We expect 2 points of leverage between 2026 and 2030, even while continuing to invest in innovation. AI makes our engineers more productive, improving both speed and quality of our products. We are bringing solutions to market faster. And we're deliberately hiring for quality over quantity, engineers that can harness AI to speed up the pace of innovation. That's the mechanics behind the number. Every solution we build should cost less than the last one.

And next, sales and marketing, where we expect 3 points of leverage between 2026 and 2030. This comes from a continued evolution in how we go to market, focused on 3 areas.

First, platform selling. More sellers focused on the full platform, fewer overlay specialists, higher productivity per seller.

Second, AI efficiency. We're putting AI directly into the seller's workflow, account research, deal prep, forecasting, so our sellers can focus on customer conversations.

And third, partner leverage. Our partners are sourcing and delivering a growing share of our revenue, extending our market reach. That's growth that we don't have to staff ourselves.

And on to G&A, where we expect one more point of leverage between 2026 and 2030. Technology and AI drives efficiency across the organization, reducing manual workflows and our headcount scales in a disciplined way.

And finally, stock-based compensation. This continues to be an important part of our compensation philosophy and a lever to attract and retain top talent. That said, we expect to reduce stock-based comp as a percent of revenue by 1 point between 2026 and 2030. 2 things are driving that leverage.

First, leaning more into AI means natural hiring discipline. And second, we'll remain thoughtful in how we approach compensation design and equity allocation, striking the right balance between competitive pay and dilution.

Moving on to cash flow. As our margins grow, that naturally drives more free cash flow. And our free cash flow margin has trended ahead of our non-GAAP operating margin. The GAAP moves around some from year-to-year, but the direction hasn't. This year, we expect 18% in non-GAAP operating margin and 21% free cash flow margin. And as our operating margin expands toward our 2030 target, we expect free cash flow to grow right alongside it.

But it's not just the margin that matters. It's the dollars. As we scale, that free cash flow turns into real capital we can deploy to invest in growth, pursue M&A opportunistically and return capital to shareholders. That's the flexibility growing cash flow gives us. So let's talk a little bit about how we think about that.

We have a clear framework for how we think about capital allocation. First, organic growth. That is our primary investment focus. We're innovating and growing our platform and driving value with AI. Second, strategic M&A at disciplined valuations where it accelerates our AI road map or expands our TAM. And third, returning capital to shareholders through share buybacks.

On that third one, it is a balance, not a formula. Since the program's inception, we've repurchased $244 million against our $350 million authorization through Q2 2026. In 2025, we repurchased approximately 850,000 shares, partially offsetting dilution. And in the first half of 2026, that increased to approximately 3.3 million shares, nearly 4x 2025 and reducing share count. Our focus is on offsetting dilution from equity compensation and being opportunistic. When we see value, like we did in Q2, we lean in. The constant is discipline, not a fixed target.

So I walked you through the drivers of growth and profitability. So now what does this mean for our 2030 targets? We have a 2030 top line target of $1.8 billion to $2 billion in revenue. When this target was first set in 2024, the path looked different than it does today. Sustainability demand has moderated from those 2024 highs.

But AI is enabling us to bring more solutions and value to market faster. We're just getting started offering our agentic capabilities and additional solutions in the broader regulatory opportunity. As Julie said, we're early. We don't expect this to be a meaningful contributor to revenue in 2027, but this opportunity will continue to layer on over the next few years. So the path to our 2030 revenue target won't be linear.

On margin, our 2030 model now reflects the leverage I just walked you through across gross margin, R&D, sales and marketing and G&A. We're raising our 2030 non-GAAP operating margin target from approximately 24% to approximately 26%. And stock-based compensation is expected to decline to approximately 11% of revenue, down from 12% at last year's Investor Day. We believe these numbers aren't a limit to our upside, but they also thoughtfully reflect the investments we still plan to make to go after the growth opportunity. This model reflects our confidence in our strategy and the opportunity ahead. We're investing in the platform and AI capabilities while delivering improving profitability.

So let me bring this together. This year, we're crossing $1 billion in revenue, achieving GAAP profitability and delivering our 2027 non-GAAP operating margin target a year early. Our growth engine is durable, new customers, best-in-class retention and expansion within our base. And our margin story is just as strong. Operational discipline and AI-driven productivity working together across every part of the business. Growth is fueling profitability and profitability is fueling more investment in growth.

That combination is what gives us confidence in our 2030 targets, conviction in our revenue range, a higher margin target and the flexibility to keep investing, pursue M&A and return capital. And AI only amplifies that opportunity. We're a stronger, more agile company than we were a year ago, and we are just getting started.

With that, I'd like to invite Julie, Deepak and Mike to join me back on stage, and we will open it up for your questions in just a moment. But first, we'll take a brief pause to go ahead and set up the stage.

[Break]

Okay. Awesome. Well, we will be passing around the mic to open it up for questions in the audience. We also are allowing people to ask questions over the live stream. So I will kick things off with a question that came in while the live stream was going while the mic is making its way around the room.

So the first question is, how do you size the broader regulatory work opportunity? Because you didn't quantify the size of the TAM increase. So just wondering how big you think this opportunity could be?

You're right. We didn't put out a specific TAM today, but we do see the opportunity as significant. We're starting, of course, with regulatory reporting, which we have strength in today. We have our financial reporting and nonfinancial or sustainability in GRC. And we know, though, that the report -- the report itself is one part of compliance for a company. There is a whole -- there is a broader opportunity with the problem for customers staying compliant.

So we see the opportunity as twofold. One, we're now able with our platform and agentic AI to handle more use cases than ever before across an organization, not in those necessarily 3 categories, but we're also able to, again, do more of that regulatory work. We showed you several examples today here, the BE-11 report. We showed others on stage at Amplify. And this is just the beginning. We're just getting started. It's early. So as we make progress, we will provide additional visibility into the opportunity and the size of it.

Steve?

Great. Steve Enders from Citi. Maybe to start with Barbara. Just on the guidance framework. I think you made the comment about you're not expecting growth to be linear from here to 2030. Can you just give a little bit more clarity on, I guess, what exactly you mean by that? And similarly, with the operating margin framework, should we expect that to be linear? Are there any kind of moving parts in there to keep in mind for the next few years?

Yes. Thanks so much for the question. So your question is around linearity. So we are focused on both growth and profitability. And in terms of the 2030 target and our path to there, we talked a lot about the fact that we have a very durable growth algorithm, right? And on top of that, we are really excited about the new capabilities, especially the expanding regulatory opportunity and the AI capabilities that we announced today. But we just announced them today. So we're early. We're going to -- we'll expect those bookings to ramp over time.

And given the fact that we're a subscription model, we don't expect that to have a meaningful contributor to revenue in 2027. And so 2027, we've got that durable growth engine, and then beyond that, really starting to see those new capabilities around regulatory as well as AI starting to ramp in. And then on the margin side, continued steady expansion as we go towards those 2030 targets. Really, really pleased with the progress we've made thus far.

Pat McIlwee with William Blair. A lot of really good information today. So Mike outlined this a little bit on the capital markets side. I understand that direct monetization of that via S-1 is a pretty moderate portion of the overall revenue base.

But as we think of the more indirect impact of that activity, the pickup in deals we saw coming to market in the first half of this year, how substantial can that be in terms of a growth lever for your business as those companies come public and kind of open the aperture to the entire Workiva product set? And then Barbara, maybe what kind of expectations have you baked in on that front as we think about the revenue outlook?

Yes. I mean I'll start off with just kind of the broader opportunity. And yes, we've seen an increase in IPOs this year. And I outlined it in my remarks from the size of it. We do see this uplift in broader capital markets activity, as I frame up the dream of going public does provide that rich opportunity for us to go sell into that private base. And we don't have a particular size on it.

What I can say is the market sentiment is significantly greater than it was a couple of years ago where we had a significant stabilization, I'd call it, of IPOs. So no specific numbers, but I'll just frame it up is it's definitely better than 2024 and better than 2025. And we're optimistic that we have continued market activity. And really, in the end, I think it's more of the conditions around the markets for people to go public.

Dan?

Dan Jester, Bank of Montreal. So in the keynote, Julie, you said that you don't want to put AI just on top of Workiva, you want to build a new Workiva. And so I understand on the revenue side that we're not necessarily going to see a direct impact in 2027 from a materiality.

But in terms of rebuilding Workiva internally and putting all of the AI technology in place today, where are we in terms of that rebuilding process? Is this something where maybe you're more advanced than on the revenue side? Or is this something that we should still see reengineering happening over the coming quarters and years?

Sure. And it's a great question. So yes, the transformation of Workiva and our platform towards agentic first, it's not a one and done. It's a continuum. And we've been doing this now for many months, a year, year plus. Again, doing what Deepak described, which is ensuring that we're able to handle an understanding of what the customers' business is like, and we've been doing that more and more.

And the agentic capabilities that we're rolling out today already leverage that transformation in the platform. The way we're working is transforming operationally. So it's a continuum, and we're continuing to evolve. It's not a one and done. We're going to continue to do that as we progress. But we are seeing our ability to leverage that today, and you'll see more and more of that.

Andrew?

Andrew DeGasperi from BNP Paribas. I wanted to maybe follow up on the question on AI monetization, but maybe taking a different approach. I think you said earlier that SEC Advanced drove up ACV by 20%, which has some AI capabilities. So if I were to look at Agent Studio, which is a premium SKU that you put on top of it, and the other premium tiers that you would need to buy in order to get those AI capabilities, would those theoretically be above that 20% that you get from SEC Advanced?

Yes. So the -- I mean, SEC Advanced, we take one solution, it provides an easy metric of doing the percentage uplift. And yes, across our -- some of our other advanced SKUs, we're also seeing meaningful uplift on those components. Specific to Agent Studio, it was just launched today. So we are going through the initial pieces of that. And as highlighted, we are licensing this under a separate builder SKU. That solution will be monetized similar to our other solutions based on a metric or complexity-based approach for the organization. So I'd probably say, stay tuned for what we get in our first 12 months here on the monetization.

But I think the more important piece I want everybody to take away is when you look at this broader monetization framework, right? First off, the metric-based approach, second off, the tiering and third, this new introduction of a builder solution that provides us the flexibility and the optionality for our customers to each go on their own journey. So yes, we're very intentional about that. And yes, we would hope for meaningful uplift across all of our new things that we deliver from an innovation perspective.

This is Alex Sklar with Raymond James. For Julie or Mike, just following up on the platform of regulatory work. I know when you launched FERC several years ago, it was in response to some new requirements that came in and had an XBRL component in place. Maybe help walk through if you see any catalyst for the new solutions coming in? And then just for the 3 solutions launched today, what's the right way to think about incrementality of those?

So FERC is an outstanding example of what we're talking about. It's in the energy vertical. It addresses some regulatory requirements, and it's an area -- that is exactly what we're talking about, and you can think about so many of the regulatory requirements that companies have. So yes, on FERC, it is exactly what we're doing, expanding across an organization outside of -- inside first, but outside of the 3 categories that we play in. So we will continue to build capabilities around these solutions.

But what we're really doing, as we handle these use cases for customers and the requirements, we're building a platform capable of handling regulatory requirements and regulatory work. So we're not building it product by product, solution by solution, use case by solution. We're getting better at handling regulatory work with the platform.

So yes, you asked about incremental abilities with these 3 new capabilities. We do plan to put them in the seller's bag and go out and sell them will be incremental to our growth. But we -- the plan is to have a platform capable of handling multiple -- not just regulatory reports, but multiple areas of regulatory work.

Awesome. And while we're waiting for the mic to make its way in the back, I might sneak in one from online. So this is from Rob Oliver at Baird. He said, Barbara mentioned that one of the drivers of growth is more sellers focused on the full platform. How far along are you today under the new sales head, so Michael Pinto, and what are some of the challenges that you face from here?

I'll take that one initially, which is Michael came in, and he -- it wasn't a redo. It was a refinement of the strategy that we had in place. So he's contributing to the acceleration of executing on our building our go-to-market machine. So we've been continuing to make progress on that, improving on productivity, and we're going to continue to evolve.

Last Investor Day, we laid out specific actions around staff, around strategy, around the structure of the organization, and we're continuing to make strong progress on that. And Michael has come in to accelerate that progress.

And I'd say it probably never ends, right? We're always fine-tuning. So really focusing on platform, AI to driving efficiencies as well and then really leaning into our partners. So it's a continuous evolution.

Can you hear me? Okay. Peter Blaustein with PB Partners. I have a 2-part question on AI. So you guys gave a great presentation. The keynote was spectacular. And I appreciate that you don't want to talk about the value capture from AI. But what do you see in terms of value creation? So Deepak, when you're in the lab looking at the product, what are you guys seeing in terms of customers? How might the office of the CFO change with all these AI tools? How much value creation could there be?

And then on the risk side from AI, I think all investors are worried about replication risk, that with AI coding tools, you can just replicate any enterprise or any set of software. What about the Workiva platform? And I appreciate what Julie said about trust and stickiness and ingrained. But if somebody tried to replicate your platform, whether that's a start-up backed by Andreessen or a lateral incumbent who wants to enter your space, what difficulties would they find? Why are you robust to those types of competition?

Great questions.

Yes, sure. Absolutely. Great question. So maybe on the first part of the question, the value is really -- there's 2 parts, right? There's one is taking the work that they do today. So there's existing workflows that they do. And as I shared, a lot of it is manual. And so how do we help them either automate that and/or provide assistance and then they can figure out how much control they want on that process.

So that in itself, as I shared, you can take any process, look at the amount of manual work that exists or take peer benchmarking as an example, just look at that manual work, you can easily see how AI can reduce that burden by a lot, right? And we're still going through these customers adopting these solutions. So that's one piece.

The second piece really is with Agent Studio, what else can you go after, right? And the more data you have, and they already have a lot of data over the years that they have used the platform for. So what can you do with that now? And then who else can now use the platform? So we have this concept of core users and adjacent users or occasional users. Can we provide more value to these occasional users?

So we definitely see that value expanding to not just what's happening today within the platform, but what else can they imagine. So that's how we think about the value capture, and that's an opportunity for us to go and drive more stickiness and adoption within our customers as well as future customers.

On the replication risk, I'll go back to what I said earlier, right, this notion of what we call the infrastructure, regulatory work infrastructure. So if you think about really everything that happens to do the regulatory work that we spoke about and get it through the way to the filing of that report and that cycle that we spoke about, that is nontrivial. I mean that's our expertise, and we build technology that is very foundational, and that's the infrastructure that not just has the tooling, but now as AI operates, it has to be trusted as well.

So data is trusted, how do you trust the AI. So we're providing the capabilities to do that, and we believe that happens in the platform as close to the data and the work as possible. And that is, in our opinion, very, very hard to replicate.

Truly. And it is that, that is the core, but it's also the earned advantages that we talked about earlier, right? It is the distribution. It is that we've already connected to the customers' ecosystem where the data is accessible. It is that we have an increasingly larger understanding of the work they're doing, and it makes it incredibly easy for them to onboard and to -- for them to expand with us. So the combination of all of these earned advantages are really what separates us.

Now I will say, when we typically get that question, what's in mind is a start-up can go faster. We are ensuring that, that is not the case at Workiva. We are moving quickly. Our technology organizations are rapidly adopting AI and capabilities to move more quickly, organize differently. So we can move as quickly as a start-up, but we come with the earned advantages that we have gained over the last decade plus.

Dan?

Dan Jester again. So partners have been a huge portion of the go-to-market strength of Workiva over time. I'd just love to hear your feedback that you've heard from them about Agent Studio. Ostensibly, if a customer can build more of the solutions themselves, maybe that's taking some dollars out of your partners' ecosystems. So maybe kind of share how your partners are thinking about Agent Studio and any implications we should be considering?

I mean, to be fair, we just rolled out Agent Studio. So their partners are learning about it as well. But they, internally, the Big 4 and the next layer, our consulting and advisory partners, they're going through their own changes. The billable hours was their model, and that's disrupting their model. What they've begun doing is starting to look at building and packaging their own agents. Those partners that we have discussed with this and done a preview of Agent Studio provides some enthusiasm and excitement for them because they can build agents for our customers with that trusted data.

So the ones that we've spoken to and the ones that have been brought under the tent with us as we think about Agent Studio are enthusiastic about the opportunity because otherwise, they're building agents for those customers without the trusted data and the traceability and the defendability. So it truly is an incredible partner opportunity for Workiva and our consulting and advisory partners that are stepping forward and building agents to help their customers, our joint customers.

Alex?

Great. A go-to-market question, I don't know who wants to take this one, but 15% adoption of the advanced packages in SEC reporting. Now though you've got a growing amount of functionality you're putting into those bundles, a lot more agentic than there was a year ago. Does that change that math on what the uplifts could be? Or does that change the impetus to push harder for the sales team going to the back half of the year on trying to drive more advanced adoption?

Yes. I mean, I think, first off, when we talk about that adoption, typically, it happens at renewal time or a contract renegotiation. And we -- again, we're just 12 to 18 months into this process of doing that. And we've introduced it to many customers at renewal. Not everybody has the budget and/or approval maybe at that initial time. We do believe that by adding incremental value that, that does make that offering more attractive.

And with all that we announced today, are optimistic that, yes, we can increase that adoption rate there and across our other solutions. I think the other piece of that is also where do we land bigger as well, right? So where we've utilized, for example, with SEC more as an uplift from existing customers. What we've seen in our sales cycles is we're also now landing with our premium SKUs, right?

When you think about it, most, if not all, incremental software purchases have a discussion of AI around them, right? Every incremental unit of software we sell today is whether it's for a specific AI feature, there is an AI conversation around every software sale. So yes, having more AI capabilities in there, we believe, will help us also land with more advanced SKUs as opposed to going through the journey as we've done in the past.

And we'll take our last question from Andrew.

So Andrew from BNP again. I wanted to ask a question earlier about the 62% of bookings were partner sourced in the first half. You switched from EY in May to Grant Thornton, and EY has a $16 billion services or software implementation practice. I mean, should we see this number grow faster since now they've become a GSI for you?

Thank you for highlighting that we have a new partner now that we have moved firms. We did that for governance reasons, of course, but it really does open up an opportunity for us to have yet another Big 4 consulting and advisory partner everywhere we want to be in large organizations because partners, of course, help us sell higher up, help us sell broader, improve the cycle time and truly, yes, bring source deals and sell more multi-solution and multi-category deals. So yes, you should see us working more closely with EY, and you should see more acceleration on those partner-sourced deals.

Awesome. Well, thank you guys so much for the great questions. Thank you to all of our presenters today for a wonderful presentation. We'd love to keep the conversation going. So please feel free to follow up at any time if you have any questions on anything that we presented today. Thank you all for joining us.

I think we can go ahead and get started. Thank you all for coming today. I have the pleasure of hosting Workiva, CEO, Julie Iskow. Julie, thank you for being here with me today.

Thank you. Pleasure to be here.

We're going to touch on some near-term dynamics. But first, I'd like to start with your longer-term view of the business. So Julie...

I'll jump right in?

When you look 5 years out, what do you want Workiva to become today that it's not?

Well, let me start by saying what it is today, and Workiva as a trusted platform for the office of the CFO. We manage the data that matters most for that office. And what we have become is a platform that is managing regulatory work for customers in 3 key categories: financial reporting, non-financial or sustainability reporting, and then GRC or Governance, Risk and Compliance, which is audit, risk controls, et cetera.

So that's what we do today, those 3 categories, and we do primarily the reporting around those categories. But as we've evolved and as new technology like AI, and particularly agentic AI, has come into the scene, we've been transforming our platform, agentic-first, and the combination of the platform that we have today. With that transformation and AI, in particular, agentic AI, what we are able to do now is expand into the broader realm of regulatory work beyond -- even beyond the categories that we do today, but it's also more -- doing more than just the report itself with agentic AI, which has planning, and reasoning, and executing, and taking action, there is the opportunity for us to actually help customers stay compliant.

So the idea that we become a platform for companies to rely on for regulatory work is something we see ourselves evolving to over the next several years. Five years is a lifetime in technology, so that question is hard to look out. But in the direction the platform is going, the strength that we've built with the platform, the expertise that we have in regulatory work, and the trusted customers and so forth, we're able to expand more broadly into other realms beyond what we do today in regulatory disclosure, regulatory work.

So sort of in that same vein, when you think about that longer-term vision, which part of that do you think investors are still under appreciating?

I think it truly is, 100%, that we have these earned advantages. And I called them earned because over the last 1.5 decade, we've been building the platform, and we have over 6,000 enterprise customers all over the world that trust us. They trust us enough to put their data with us, their pre-public data in our platform, their financial data, their non-financial data, their controls, and risks, and so forth. So we've got that.

When you have those customers that trust you and you can learn about them and their business, and that goes into your platform that becomes more agentic-capable, you really can serve those customers in a better way. We can do more for them. We can onboard them easier. We can more quickly bring them to value with every new piece of regulatory work that we do.

So I think that is huge. That distribution is considerable. We also already connect to their technology ecosystem where so much of that data is accessed. So the fact that we are already in, that we have the technology, that agentic AI is here, and that we can move quickly like a startup, we're able to go build these capabilities far faster. We're able to bring more value to the customer and serve them on the platform. So I truly think that, that those earned advantages are really not yet well-understood or appreciated and what that can do for us as we move into the coming quarters and years.

So I want to ask a little bit about the 2030 framework that you've laid out. Sort of a 2-part question. When you think about that framework, what gives you the confidence in it? And at the same time, which part of that plan, in your view, carries the greatest execution risk?

Sure. I mean we feel very thoughtful as we are in our guidance consistently quarter after quarter, year after year. So when we put that framework out, we thought what it would take to get there, both on the top line and the bottom line and felt confident and still do. In fact, we had a 2027 target, a 2030 target and in our last earnings call release, we talked about meeting the 2027 target already this year. So that leaves us with a focus on 2030.

So we feel confident, and we've laid out a plan, and we understand how to get there. I think it really is to us around execution. Even though top line and bottom line, 1, of course, is more controllable than the other. One is probably more challenging to ensure than the other. But it's all about executing. It's about executing on the top line. It's about that new customers, account expansion, and retention, and continuing to be consistent there. And on the bottom line, it's just improved operational effectiveness and efficiency, as you've seen us do, and continue to improve on our margins. So we feel very comfortable with what we've laid out.

So sort of on the top line. Subscription revenue growth has remained at above or roughly around 20% for the past several quarters even as you've continued to scale. So when you look out to those longer-term targets, what has to continue to go right to sustain a mid- to high teens growth rate over the next several years?

Yes. I mean, we're -- we have a strong strategy. It's our fit-for-purpose high-value solutions. It's our platform that continues to get more open and intuitive. It's our partner ecosystem strengthening and it's a global expansion. And we're continuing to execute on that. And that really is it.

On the top line, as I mentioned, going after new logos. And last quarter, we had our highest new logo count in 7 quarters. We need to continue expanding. We -- and that just -- that is disciplined, that is having the right capability on the go-to-market side. We have moved with -- into profiles of sellers that know how to work with our partners, that embrace partners, that know how to sell in large accounts with executives that are higher up in the organization. They can do account planning, multi-category multi-solution sales.

So it really is the discipline and the rigor with which you go-to-market, and it's focusing both on account expansion and new logos and then, of course, retention, keeping the customers engaged, happy, and getting the value from Workiva.

So you mentioned the strong new logo performance last quarter. What in your view were the main drivers of seeing that jump up so much as you mentioned?

I think this ebbs and flows, and we didn't put it in our earnings release. It was more a sideline when somebody asked the question on it. But I think this past quarter, we are seeing 2 things happen. One, we're seeing some -- the results of some efforts that we put in on the go-to-market side. A while back, we started in on having a hunter-farmer model. We started small with 1 or 2 teams, and we've expanded that a bit. So that's 1 thing we're getting the motion down. It's execution and focus.

And then we also had some capital markets strength, market came back a bit. And those, even though we do sell before we have an S-1, before we sell an S-1, and a capital market solution, oftentimes, we'll sell a private company financial reporting and private company controls. But sometimes that is a new logo, and we have strong quarters that could contribute as well. But it really is, again, focus and execution.

We have always strived to keep a good blend of new logo growth and expansion every quarter. And we've noticed as we've been expanding TAM, that sellers have focused on expansion. So our new logos, we dropped down to maybe 40% and we wanted to -- 35%, and so we wanted to put more emphasis on the new logo. So we are focused on that as well. So it's execution and it's different solutions are stronger in single, in new logos and others at different times. So we don't look at it as...

Yes. I mean to that note, 1 of the things that you've been benefiting from recently is customers are increasingly buying several solutions at the outset. What has changed in the way customers are viewing the platform that's sort of driving that?

So I will say, again, it comes down to execution. We are getting better in our go-to-market on the platform concept, right? And customers are actually seeing value. It's resonating. I think platform wins the day even before AI solutions together, a single vendor, a lot of CIOs and CFOs want that. I know I do as a buyer and I was a CIO. And if I can extend a contract to get the capability in and it's best of read, I'm going to do that with a vendor I already have, just so many benefits from consolidating a single platform.

But also the capabilities work better together. You have data that is connected, right? Your controls, and your risks, and your audit all connect to your financial capability, financial reporting and your non-financial reporting. So they play better together. And certainly, when you are applying AI, if you have the data in 1 common platform, you get more effective outcomes without AI.

And again, it's going back to Workiva and the value of Workiva, which is that everything will give that data, that trusted data. It is traceable back to source system. It is -- you've got data lineage. You can see every change, who made change, who approve changes? Everything is auditable, everything is traceable, and everything is defensible for the CFO.

And so as customers consolidate more of their reporting and risk workflows on the Workiva platform, where do you see the greatest opportunity to replace some of the incumbent vendors?

Sure. And we've been doing that for a long while now. We have -- we compete against a Microsoft or a Google in the office of the CFO. They are Microsoft or Google shops. And because we have fit-for-purpose capabilities that plays in the office of CFO well, we're able to displace. But really, I would say, importantly, in areas where data is fragmented, systems are fragmented, where things are manual is where we really have an opportunity to come in and replace.

And I'll give you a good example. When companies upgrade their ERP system or bring new ones in, there's an opportunity there for the customer to leverage 1 single ERP, where they may have collected some from acquisitions and so forth. They may have a lot of them around and they buy 1, and then they want to do multi-entity reporting. And that might be a good way where be displacing some of those fragmented systems and come in and take on the responsibility for multi-entity capabilities, multi-entity reporting. So really, that is where it lies, on those legacy systems and displacement.

And then when we think about expansion today, product breadth, sales execution, implementation capacity or customer readiness, of those 4 things, which 1 is the biggest constraint on expansion?

I mean today, we have upwards of 2 dozen solutions. We have a huge opportunity for expansion. I would say 50% plus of our base has only 1 or 2 solutions. So we have a tremendous opportunity to move into larger accounts and expand. And I think really, with the speed at which we are rolling out new capabilities and so forth, it really is the discipline around go-to-market, but it's really just removing friction everywhere.

We removing friction with onboarding, which we can do more now with AI. It's removing friction in go-to-market. Just getting better and better at it. So it really is around making sure that our sellers are enabled, and can go out, and field and make it easier for customers to adopt. So I would say, in general, it's not -- it's never 1 thing, but I would say that's it. We want to remove the friction, remove the blockers to expansion because of a lot of opportunity with adding additional capabilities to our customers' accounts.

One of the things you said earlier was about Workiva becoming agentic-first. Can you tell us a little bit more about that? And what does that change for your customers that might not have been possible with a traditional software platform.

Sure. So platform, SaaS platforms, have the opportunity to leverage AI and leverage agentic AI and difference being agentic AI moves you into the realm of being able to reason and do more work and execute on customers' behalf. And in fact, software, up until the end of this -- the end of last year, it really existed to help streamline work. It was assisting users and helping them do their job faster and better. It was helping customers do their work.

Now software, with agentic AI, can do more of the work for the customer. It actually can take on some of that work because it can reason, and take action, and execute. And so you need to ensure that your platform can handle that agentic AI and capabilities. In order to do that, what really makes it effective is being able to understand your customers' business, understand their organization, the context, the framework they use, the controls, all -- everything about the business that's leveraged when you are doing regulatory work.

And so we are building out the data model, the semantic understanding of the customer -- of our customers, that moves that platform into being 1 where we can leverage agentic AI. And so what that does then is once we have that understanding of the customer and learn more about the customer, we can do more of the work for them, which is helpful to the customer and brings more value, not just assist in the human part of it, but we can actually execute on work.

We can onboard them faster. We can connect their capabilities to 1 another, leveraging the similar data in the platform. We can do more AI. So the customer benefits in having more work done by Workiva. They're always in control. They can select the level of autonomy they want. They can be in as much as they want and understand as much as they want. But it gives us the ability to serve them differently by doing more of the work that they would historically do, particularly the repeatable work, particularly the work that frees them up to do other things, right?

But it really can do -- agentic AI is the game-changer and the reason we would want to make those changes in the platform. And it's nothing new. We've been working on this for the past year, and we're already leveraging in some of the capabilities that we're rolling out.

And so obviously, regulatory reporting and compliance are highly sensitive areas. And you talked a little bit about defensibility and audibility as crucial components of the platform. Within that, where are customers showing the greatest willingness to let an agent execute work rather than simply just be an assistant for a human?

It's probably -- and it has been, and we've watched this, it's where the work is well-defined, where the work is repeatable, and where the work can be validated that you can actually check and make sure when you let AI do it. That's how we're in the early phases, how companies typically work.

They adopt the AI capabilities that -- where they can validate it and where it's pretty well-defined work. But you can see as they get more comfortable and they validate it and so, yes, it did work and was right, that they're willing to do more and more and adopt more and more that is less well-defined or that is less repeatable or that is less validatable. But still, in the office of the CFO, and we are very well-aware of this, you need the judgment of those users of the platform, and you need to ensure that they are in control and they pick the level of autonomy, right?

We want to make it so that they can choose. We want to help them. We want to do more of the work for them, but we want them to make the decision on how much of the work they want us to do. And that's really important.

You kind of touched on this, but when I think about Workiva's data and governance advantage, why does AI make that advantage more valuable?

I think you're hearing this from a lot of companies who have this capability to do governance and security. The more you usage you use AI and the more that the software does for you, the more you're going to want to make sure that you trust. That you trust the data, that you trust the technology, and that you're able to trust the outcomes. If you're going to delegate to agents and let software do work for you, you're going make sure that you can trust. That data needs to be trusted. The platform that's doing the work can be trusted.

And you can't just say, okay, do I trust them or not? You need to be able to prove it every outcome out of the Workiva platform is -- whether an agent is doing the work through our MCP gateway or humans doing the work. If AI is working on it, you're going to want to be able to defend it. I mean you're going to want to be able to explain every number and even the narrative where it came from and how it changed over time through the system.

And that is incredibly important when software is doing more of the work and more and more AI is doing the work. So trust becomes incredibly valuable. It's always been valuable but even here in an environment with AI and so again, software taking on more of the work.

So you mentioned the MCP gateway lets your customers connect outside models and agents to Workiva. Within that, how do you remain the strategic platform if the intelligence increasingly is coming from somewhere else?

And you mean intelligence coming to someone else, the models, the large language models and so forth, the Claude or et cetera. So that's 1 element of intelligence, right? That's 1 layer of intelligence, the models, but they're only as good as the data that they act on. And that's where we're -- that's the value of Workiva. A CFO knows that the data coming out of there and the results coming out will be trusted.

When the customer leverages or the agents of the customer leverage the MCP gateway, what comes with it is traceability, is data lineage, is defensibility, is auditability, right? It doesn't just -- the data doesn't come out. It comes with all of that, and that is the value.

That's the true value of the Workiva platform. yes, we want to be open. We want our customers to leverage their technology ecosystem. We want them to bring their tools. We want them to build on our platform. We want them to do whatever they want. But the real value that they're getting, again, is what's coming in the platform, that traceability, that defensibility, that is a necessity, right? It's what -- sure, you can use Claude on your ERP and have it and leverage it within your company, but you can't -- every time you're called upon, you can't have the traceability, the auditability and the defensibility, which a CFO knows is the thing that determines their reputation, of course, the companies.

So what should investors be watching for to get some visibility into your agents moving from just customer interest into meaningful adoption and economic value?

I think the real sign of whether or not our AI capabilities are effective and customers are leveraging is really the value it brings to the customer and the outcomes, right? What outcomes are they getting? Because it's -- we do look at adoption and we look at the measures of it. But it's not how many times you click or how many prompts you put in that is the measure of value. It's the outcome that comes out and then it's how much they continue to want to do with your company?

So I would look -- it's retention, it's expansion. If they're getting value from our AI capabilities and helping them to do more work, we're doing more work for them, it's really about how they continue to invest with us. Then you know what you're rolling out in the capabilities, our success. Customers want to know whether you're future-proofing them with technology. Are you staying current? Are you staying ahead for them, so they don't need to do it? Can they leverage your technology, and benefit from it, and get better outcomes? And those are -- that's business growth, right?

That's business growth. That's how you know you're doing the right job with the technology. So yes, of course, we look at adoption. We watch, we listen, we learn, and we see the use of more, but that's not the metric of whether or not a customer is getting the value from it, right? It really is -- it's about growth, and expansion, and opportunity for the customer to continue to do more with us, putting more on our platform. That's the true test.

So I want to ask a little bit about AI monetization. So you're placing many of your new AI capabilities into some of your premium pricing tiers. What needs to happen for AI to become a material growth driver for the business rather than some features that support pricing and retention?

So I'll answer it in 2 ways and 1 direct on the pricing, but also when you think about AI to change your business materially, it also comes into what I talked about before, which is our -- AI lets us expand and build faster and innovate faster, which enables you to expand markets and have more to give the customer. It's not just an AI capability, it's more offerings for the customers. So that's really, for us, where we look at AI as an enabler of growth. What more can we do for the customer, what more can we offer them, how much more value can we bring?

And that goes back to that initial question that you asked about expansion and what do we look like over the next 1, 2, 3-plus years, right? It's what can we build because of AI? But I'll go back to the pricing model, which is the initial core of your question, which is how and when do we see value from it? And we're just getting started. I mean, we put AI into the platform, in every workflow, in every solution across the portfolio. And that's table stakes and available for everyone.

We began putting out solution-specific AI capabilities, and we offer those in our solutions. And then we realize we're bringing out very advanced capabilities, bringing even more value to the customer and doing more work for the customer. So we put that into our already existing good, better, best model. So we have essentials, and our standard, and our premium or in advanced tier. So we've been putting our advanced capabilities there, letting customers work with those. We've been watching adoption of that. We've been watching how they use it. We're watching which things resonate more and bring more value.

So we're learning, but we're doing it in a way that they have predictability on the pricing, and we have predictability on the bookings coming in, right, in the revenue. So it's been a really practical model, a good model for us to introduce our advanced AI capabilities. and it's working well. In the areas that we've introduced it, we've seen an uptick of greater than 20% when customers move into that advanced model. And we're going to continue to leverage it. It's a practical way for us to introduce all these advanced capabilities and for customers to leverage them without concern about using -- having to pay and use it, use more, and so forth. So it's been good. It's a very predictable model on both sides.

And so your pricing is already based on value and usage rather than a seat-based model. How does that position you differently as agents perform more of the work and you see this adoption increase?

Sure. And we're very fortunate. We are 1 of the companies, 1 of the very few SaaS application companies that isn't seat-based. And we have been for a while now 6, 7 years, charging customers for value usage. And what I mean by that is if you're a company that has our multi-entity reporting solution, we charge based on the number of entities you use, not the number of people that go into our platform and use it.

And this is great when you move to the world of AI because we don't care if a human goes in, or an agent goes in, or you don't go in as long as you're getting value from the platform. So a number of controls is what we use when you buy our control solution. And it just so happens that the larger and more complex you are, the more you will end up paying because the more entities you have, the more control you have, the larger company you have, the more data integrations you have, and these are the kinds of proxies we have for complexity and size and usage of a company.

So we've been very fortunate that we've had that pricing framework for many years now, and it plays very nicely in AI because say you're a customer in the top tier with us. You can look at a $1 billion company and a $50 billion company, both of which we serve. And the $1 billion company will pay X amount for a premium tier. But a $50 billion company will pay Y amount for the premium tier because they are using more of the platform, more controls, more entities, more data integration. So we are charging more if you're going to be leveraging more AI already. So we're already kind of tiered pricing within a tier, if you will. But we're set up and well-positioned to be able to charge in this way and to charge for AI. So very helpful.

So in the beginning when we were talking about some of your 2030 targets. You had mentioned on how you're tracking ahead, the 27 targets, especially on the margin side, you've made some really strong progress over the past number of quarters. So I'm curious, how do you think about the balance between generating that operating leverage versus investing into some of these AI products and growth area?

Sure. And I think another kind of misunderstood. We can do both, right? We can invest in and grow our current business. We can expand the business we have today and move into other offerings and expand our TAM and addressable market. And we continue to get to be a more efficient company. So we believe that they -- 1 fuel -- that productivity fuels the growth. And we believe we can do both. And we have been. We've been getting more efficient because of the way we've been operating.

We -- the way we've been growing, the way we've been scaling the business, sure, leveraging AI to bring more efficiencies. So we're going to continue to do that. A lot more discipline at $1 billion and you have at $500 million, and we assume that's going to continue, which is why we have those 2030 target. So we intend to continue in that mode of improved operational effectiveness and efficiency. But we also intend to continue to grow the business.

And yes, AI makes that even more possible and contributes to our ability to do that. It used to take a long time to build TAM. It's a lot quicker now when you have that TAM, in your mind, how you can leverage your, I'll call it again, earned advantages. So we believe we can do both. It's not an either/or, still not an either/or for Workiva.

And so 1 of the things I also wanted to ask on some of your more premium pricing tiers. And you talked a little bit about this with serving a $1 billion customer versus a $50 billion customer. When you think about the early adoption that you're seeing of customers moving up to those tiers, are there any characteristics that they share? Is it some of the larger customers? Or is it a mix? And do you see that premium pricing tier being something that's applicable to the entire customer base?

I do ultimately see it being applicable. Customers come, as you know, at different points in time. Some are just becoming a public company or -- and so they're not ready to do beautiful design reports or financial statement automation and so forth. They just -- they're fine with a basic or a standard package and then there are others that are further along in their journey. So they are -- they would like all the new financial statement automation and these AI capabilities.

Many customers look at them as table stakes already. So we're -- I do think ultimately, we can expand more of the base. But we'll be candid realistic. There is a portion of the company that we have, that we've had for decades that may never move on and take more advanced capability. But the companies today that are going public, that are growing, that are healthy, are ready to expand. I mean that's why oftentimes, we will land with an advanced package for a customer.

So you've announced some leadership changes recently. Can you tell us a little bit more about that.

Sure. We did bring on a new CRO. We brought in a new CFO, and we brought in a new Chief Product Officer, all since the beginning of the year, maybe Q4 and Q1. And we did it because $1 billion -- hitting the $1 billion this year, we've had some executives that had been with us for a number of years that hadn't yet seen the scale and the growth and where we're going and the multi-million dollars. So we brought on a Chief Revenue Officer that had come from Databricks and AWS and SAP and had seen the scale and knows what a go-to-market machine looks like.

And he has worked with partners, knows how to sell hire-in organizations and engage with C-suite executives. So he's come in and running our go-to-market organization. Barbara Larson, our CFO that we brought in, spent 15-plus years at VMware, was at Workday for a decade, and even worked her way up to be the CFO of Workday. She comes through that scale as well and understands what a strong financial organization looks like through scale and has done the expanding margin and growth.

And then we also brought Deepak Bharadwaj, who is in product and leading organizations and product organizations, both at ServiceNow for several years and then Adobe. So he's lived the life at scale as well. And having them at the executive level now in the organization has enabled us to think well beyond where we are today and just scale in an organization moving to the $2 billion and $3 billion.

So just a representation of the way we're moving now. And it isn't just at the executive leadership level. We've moved and -- to bringing on executives across our senior leadership level, our operational leadership level in our technology organization. Part of it is you can attract talent that has been there and done that now and seen the movie. Part of is that part of it is our drive to bring in those who are familiar with scale and execution at the level we are and ready to take us to the next. We're pleased with the team, and the growth, and their ability to execute and scale the organization.

Great. So we're almost at time, so I'd like to just finish with 1 more high-level question. When you think about Workiva today as well as your vision for the business, what do you think is the most underappreciated aspect by investors?

I think it is that we have a strong business today, and we can make it stronger and grow it even more, the current business that we have today, that got us to $1 billion. But at the same time, because we have been transforming our platform, we can also have -- we can also extend that platform, that platform we've been transforming to be agentic-first. We can extend that platform into new offerings and new growth areas to get at that vision that you and I talked about early on with the multi-year, the vision to become that platform that, really, organizations can rely on to manage regulatory work.

So I think the dual approach, the strength of the business today and the growth of the business today in conjunction whatnot instead of expanding what we do, I think that's underappreciated. And we're able to do it because of AI, because we are innovating quickly, and because we are transforming the platform to agentic-first platform. So new technologies enabled a lot. And if SaaS companies can take advantage of that and leverage and capitalize on it, the opportunity is tremendous, and we believe that opportunity is there for us in Workiva.

Great. We are all out of time. But Julie, thank you so much for joining me on [ today ].

Thank you I appreciate being here. And thank you all for joining us today.

Thank you.

Thanks, everybody, for joining this afternoon for Day 2 of the Citi Global TMT Conference. Very excited to have Mike from Workiva with us today. Mike, thank you for joining.

Thanks for having us.

Maybe just to start, maybe just for those who might not know Workiva, just kind of walk us through kind of how the strategy has evolved, where we are today and how you're kind of thinking about the high-level opportunity for the company.

Yes. Excellent. Yes. So for those not familiar with the story, we are a cloud software provider, solutions that cover financial reporting, broader regulatory reporting, governance, risk and compliance and sustainability. So we have a couple of dozen solutions, a wide portfolio of things we can sell, 6,700-plus customers, many of the largest companies in the world that utilize our software. We've been a very strong, durable growth story over the years. And we're crossing the $1 billion mark as guided this year in revenue. So a great growth story with a lot of room for opportunity to grow.

All right. Now that's great to hear. Maybe we can just talk about the demand picture today. I know you have a broader platform, a lot of use cases you called out, but maybe what's kind of most resonating right now for customers? And what's driving the incremental ARR that's coming through today?

Yes. And as disclosed, if you go look back at our most recent earnings, last couple of quarters, even go back the last couple of years, right? We talk about our demand being very broad based. So we have a lot of different things that we sell and have seen some interesting trends. This kind of gets back to, I would say, the broader growth algorithm for us, which is it is landing new customers. We continue to land new customers. In fact, we had our largest number of net new logos in the last 7 quarters, this last quarter as reported, as well as selling into the installed base, right, as we disclosed at our Investor Day last year. 55% of our customers only have 1 solution. We believe there's an opportunity to sell, what, 3, 4, 5 solutions to every customer, which means we have a lot of opportunity to grow into that.

We've seen good traction in our large contract customers, those customers at over $300,000 or $500,000, those cohorts are growing over 30% each and have been for a sustained time, and we think we have a lot opportunity there and seeing a good uptick in our deal size. And that comes from selling the platform. We're landing bigger, landing larger and also very, very successful in selling back into that installed base.

Okay. No, that's great to hear. Maybe kind of peeling that back a little bit further. I think when people think about Workiva, they think about going after regulated opportunities or things that come from new regulations or mandates coming through. But I guess when you kind of look at the opportunities that come through, how much of that is driven off of there is a regulatory-driven mandate that is creating that new opportunity versus something that's a little bit more discretionary or a consolidation opportunity for you all?

Yes. I mean -- so when you look at the different use cases, yes, one of the themes that we have across our use cases is a good percentage of those have something to do with something that could be deemed as regulatory. I'd say it's oftentimes something that I'd call something that is required. So think about a couple of our use cases. Our heritage is in SEC reporting. So that is what we call them '34 Act or Qs and Ks, and that is something, if you're a listed company, you must report your Qs and Ks.

We also support that for European listed companies with ESEF. We support use cases beyond that for financial reporting, including selling to private companies. You could say, well, gee, they're not regulated. But yes, they are, right? I mean anybody that has debt financing, anybody that has an owner, whether it's private equity or even a family business, you just have a different type of regulation, which means you have to report something to those owners of the shares of the capital, right? So regulator or not, right, we are doing those things.

We support use cases for multi-annual reporting, which is multinationals reporting to their tax authorities. If you look at governance, risk and compliance, that is both regulated by things like the Sarbanes-Oxley Act or just by discipline, right? Anybody that goes through an audit from an external auditor, there are certain standards that the external auditor is looking for, and we help organizations through that governance, whether it's around internal audit or internal controls. We also support sustainability, which some of that's regulated. Some of that is voluntary, right? Science-based targets is an initiative that tens of thousand organizations have voluntary complied to. Is it regulated? No, it is discretionary, but it's something people choose to do.

And finally, in our vertical-specific use cases, whether it's government or financial services or energy, we support them in their disclosures of that information as well. Some are guided by regulators, some by broader just general practice.

Okay. Okay. That's -- I think a few things I want to touch on in there. I think as we think about the regulatory landscape, there's always new initiatives coming out or new news that's impacting how people are thinking about the opportunity. I guess, as you think about sustainability today, I think that's probably been a bigger point of investor scrutiny over the past 1.5 years or 2. Just how are you kind of thinking about what that means going forward and maybe the regulatory nature or the new initiatives that are coming out globally that still provides incremental demand or tailwinds for you moving forward?

Yes. I mean sustainability has been part of the narrative the last 18 months. If you go back and look at '23 into '24, we had very strong growth in that area. The sentiment in that market changed with some political changes that happened in '25 that wasn't front and center. Yet I would say, if you talk to large multinationals, it has not gone away, right? All the discussion that was around the European regulations, the regulations are there. And yes, some of the delays that have happened, those organizations are going to have to start reporting in -- some in '27 and some in 2028. So they didn't go away. They were just going to push down the road a little bit.

So it remains a growth driver of our business. And as I'd say, it's kind of normalized into what I'd say, a regular software market, right, of is, yes, there are competitors out there, yes, there are buying drivers, people are going off a manual process and looking at other ways to automate that. And it's just a good part of our business across our entire portfolio of solutions.

Okay. Maybe last one on the regulatory side and then I swear we'll move on. But I think also news out there about semiannual reporting and that shift in the U.S., I guess 2 questions. One, I guess, what are kind of your thoughts about how that might play out from here and the likelihood that we see any change? And I guess, secondarily, if there is a change, is there any kind of read-through from some of your other customers who might already be on semiannual reporting in other geographies in terms of what that could mean for the price that people might pay or if there'd be any impact in terms of your kind of core SEC reporting business?

Yes. So just for those that haven't been following the story, so this year, the SEC came out with a proposal of a suggestion to make it optional for companies to report not quarterly, but just report twice a year. They put that out for comment. So it went through the standard SEC comment period. I'll encourage you to go look and investigate what the results of that comment period are. If you go look at that, what you'll find is, what I've seen published out there is 90-plus percent of the comments were not in favor of it. So the market did give -- it was one of the highest commented things out there ever by the SEC. So it generated a lot of response and most of it was, no, we're not necessarily interested in that.

We also have seen there's a number of surveys out there that many companies, even if provided the option, would continue to report on a quarterly basis. And I think that gets back down to just the basics of publicly traded companies need to find investors and disclosing more provides you the opportunity to be at events like this to have conversations with investors. And if you report it less, you might not have as much investment and/or liquidity around your stock. I think that's how people are doing the math on that.

Now I think what's more interesting for us is, whether we move to that or not, we believe there will be minimal impact for us because people utilize our platform throughout their financial reporting cycle, right, whether that's on a daily basis, on a monthly close basis, on a quarterly close basis. And in speaking to customers, even if a customer were to decide that they were going to go and report semiannually, most will still close their books monthly and quarterly with a hard close because of a lot of other reasons, whether that be reporting to your lenders, whether reporting to other authorities, quarterly reporting still has a lot of other reasons to exist besides just reporting to an exchange, right? So it's not like that just goes away automatically. So yes, so we think it's -- even if we were to move that, we would have minimal impact on the usage of our platform.

Okay. All right. That's very clear there. We do want this to be interactive, so there are questions in the room, we'll make sure to get to those. But I do want to ask on just the overall demand and deal environment today. I think, past quarter, you called out seeing some level of AI decision-making come through and maybe creating a little bit more conversations around that, but didn't have an impact on deal cycles or anything. Just maybe can you walk through why you feel like that didn't actually impact anything? Like what was it that maybe you guys did something well to offset that? And just how you're kind of viewing the impact that AI is having through customers' decision-making right now?

Yes. I mean the way I frame up AI is it is a disruption. And it's not the first disruption that's happened in the software market. We've seen these trends before. This movie has played out before. And disruptions have -- every disruption that I've been part of creates opportunity. It creates risk, it creates opportunity. And we believe that the opportunity here is, with AI, it has a lot of companies reevaluating their software stacks and it has company relooking at what they're doing and especially in the areas we play in. There's a lot of legacy software out there. There's still on-prem, a lot of manual processes, things like that. And for us, we believe the disruption provides that opportunity to have a conversation about what we sell.

Now we still have to execute and take advantage of that, but we think that is part of the great opportunity that AI has brought into the broader software markets. As part of that, we also have to communicate our relevancy in AI, and I think we're doing a good job of that. And again, there will be winners and losers of this, and we think that we can come out on the winner column of that and -- if we execute well.

So I think that is one part of it. I think the other part that I think there's been some other talk in the market, we had this in our last earnings call that potentially deal headwinds -- I mean for us, what we've seen is, yes, there might be greater scrutiny about buying things and maybe more legal or operational processes or hoops we have to go through. We think we're just executing well on that, right? So even though there may be some headwinds there in getting deals done, we think we're athletic enough to go through that and have been executing well against that.

Okay. Very clear. Maybe we can take the opposite side of it. I think, think about the risks that are out there in the market from AI. I think we hear about the build versus buy decision changing for a lot of organizations and a lot of enterprises. Have you kind of seen any movement within your customer base for how they think about what use cases might make sense to buy? What might make sense to kind of internalize and try to build themselves? Any kind of shift in that from your perspective?

Yes. I mean it's interesting. We sell into the office of the CFO for a majority of our solutions. And in that audience, the build scenario has always been there. It's been there since the advent of office productivity tools, right? And many of these users have in the past tried to build a thing with a spreadsheet or the first generation of agents, which we call macros, right? And what they found is that is not industrial strength solutions for the activities they need to do. And so I think we have that advantage into selling to that base that has had that ability to build in the past and understands the mechanics of utilizing truly fit-for-purpose industrial strength software for doing some of these more repeatable mission-critical processes, right? So we haven't seen that necessarily there.

Now also, we also are embracing AI. So most recently, we, for example, announced an MCP capability as part of our platform. And we look at our customers utilizing desktop LLMs or frontier models similar to how they use office productivity tools. This is just another thing in the desktop they're going to utilize alongside of our platform. Our customers have utilized office productivity tools alongside our platform forever. We also believe they're going to utilize desktop LLMs.

So for us, it's about working well and playing well. So I look at it as an or conversation, not an and. It's not like I'm going to utilize the Workiva platform or this other thing. It's, I'm going to use both, right? I'm going to use -- yes, for certain things, I'm going to utilize Workiva data through an MCP to do some automation potentially outside the platform. But, oh, by the way, the trusted source of data, the repository for all this mission-critical information and where I've already stored quarters and years of information around my filings is already in the platform, that becomes a great asset for an LLM to leverage.

Okay. And I guess as you think about the product moving forward and the ability to leverage AI within it, I think you already called out a couple of quarters ago that 1/3 of customers are leveraging your AI capabilities already. I guess what does that look like? Or what does that mean? Like how are your customers leveraging the AI within Workiva? And then we'll, I guess, dig down further on the opportunity for you all.

Yes. So when you look at -- we've had AI in our platform now well over 2 years. There are standard features of our platform that our customers utilize that AI is throughout. So for example, a lot of our use cases include a lot of narrative and our customers are utilizing that just like -- and if you may be utilizing AI as part of a document editor or things like that, right, just on all the instant productivity you can get with these types of tools. We also are delivering fit-for-purpose agents. So most recently, we announced, for example, a tie-out agent, a benchmarking agent, some enhanced sustainability agents. And these agents are to automate some of those repetitive tasks, right? So think about it, in the case of going through a quarterly earnings process, making sure all of your documents tie out, your press release to your Q to maybe any other communication internally, you can run a tie-out agent that's going to go look at a bunch of your artifacts in the system and figure out where all those numbers exist, do they tie out and give you the variances. Sometimes it's even the rounding variances of one might be in actual numbers, one might be rounded to the thousands and then come back and say, "Hey, this is off by $340. Did you mean to do that?" But those are important things for the accountants and other finance professionals we sell to.

So those are another area. Those are typically priced as part of our premium offerings. And then, yes, as we talked about, we are coming up with more builder type of tools like the MCP that allow people to extend the value of the Workiva platform outside, still trusting that connected data inside the platform with all the permissions enforced, I think it's another key aspect of this is how do people utilize Workiva AI while still maintaining that permission. Once you download something out of the system and upload it somewhere else, you've lost all your authorization on that information. If I'm utilizing MCP, all the permissions and security is still enforced with that data, at least on the connectivity side of it.

Okay. And then I guess, what does the monetization model look like? Like what have you done already to, I guess, find incremental opportunities for [indiscernible] already using it? And then as we move forward and there's more agentic capabilities, you have the MCP capabilities roll out, what does the kind of incremental monetization lever look like for you all?

Yes. Well, I mean, the first, direct monetization is -- first, let's maybe talk about pricing first, take a step back, right? So we are a metric-based pricing model. We have not been seat-based for the last 6, 7 years, right? So that is a thing that is, first and foremost, where we have it, right? So our pricing model is based on some metric around that solution, which gives us a couple of interesting aspects here, right? So first off, the fact that it's not seat-based, we're not based on users. You buy a solution, it's unlimited users on that solution. But we're going to charge you, for example, if it's multi-entity reporting, we're going to charge you based on the number of entities. If it's investment reporting, we're going to charge you based on the number of funds. right? So that gives us that flexibility there.

The other piece that gives us is that when you use more of that product, you may spend more. So we've highlighted this even in our most recent earnings call. We talked about a deal where somebody bought our investment reporting for one tranche of funds and then they decided they could utilize it for more funds, and they've spent 2x more on that single solution, right? So they consumed more, and therefore, are paying more in that given solution. So that flexibility in that pricing model has served us very well.

We also have introduced pricing tiers. So we have an essential, standard and advanced version inside of a given solution for many of our solutions. And as we've discussed over the past year, for example, if you look at SEC, we packaged some of our premium AI capabilities in an advanced version. We are getting an upcharge when people move from that standard version to that advanced version, and that is one of the mechanisms of how we're monetizing that AI.

And finally, I think kind of taking a step back and looking at how software purchasing has evolved, pretty much every RFP now that we see has AI in it, right? And the simplest way I look at this is, moving forward, every incremental unit of software we sell will have an AI component to it.

Now it's a question of 0 units or 1 unit, right? But you don't get incremental units of selling software now without having AI, right? So to some degree, every incremental unit is an AI sale. Now can I parse out exactly what was the single slice of some AI piece of that? No. But I think the way you need to think about this is for us to sell software moving forward, AI is part of it.

Okay. It just becomes the need and you find ways through the incremental consumption or the incremental use case/sharing?

And I believe what investors should be asking me is, how many more units are you selling? This is not about the monetization of a single slice of this, this is about units times price.

Okay. And how do you think about the incremental units you're going to be selling now?

I think you need to have AI to be competitive. And yes, for every software vendor out there, if they're not thinking about that, they should be, right? This is about how do you have AI to sell incremental units? How do you displace all the legacy? How do you remain competitive against new incumbents? It is about being relevant with the entire platform you're selling, of which AI is a component of it.

Okay. All right. That makes sense. Yes. I guess with AI and the capabilities that it enables, how do you find, I guess, the TAM opportunity? Like do you see new areas that Workiva can move into to potentially create new revenue streams? How do you think about the innovation that can come from this and the, I guess, potential revenue that unlocks from the new use cases?

Yes. I mean, that's a great question, right? If you look at the history of Workiva, one of the repeating themes is we've been able to successfully invest in expanding our TAM. And it's how we went from 1 solution to a couple of dozen solutions is, yes, we've been willing and successfully have been able to invest in R&D and innovation to expand our TAM. And we don't see that stopping. And we're always on the lookout for net new solutions we should be focused on and where we can expand into. And it's been part of that growth story throughout. So yes, we think AI unlocks that. It's easier to rapidly prototype and go after new solution areas. So yes, we believe that will be part of the story moving forward.

Okay. And as we think about the tiering opportunity and that, I guess, model rolling out more broadly, I guess what kind of proof points have you seen so far that, that strategy is resonating? And how should we think about the incremental opportunity that creates on the revenue model today?

Yes. I mean I think it's just one of the many components of that growth story, and it's still early days, right? So for SEC, we're, what, 6 quarters into that tiering, for some of the other solutions, it's even less than that. So we have a large cohort of our customers to still go after with that opportunity. We think that's just one of those long durable growth drivers. I think the selling of incremental solutions is probably a greater growth driver. I think that's the greater opportunity as I've highlighted. Earlier across our customer base, we have the ability to sell those incremental solutions, and yes, new customers as well as we also talked about, that's all part of the mix.

Okay. Maybe we'll pause there to see if there's any questions in the room right now. I think we have a mic coming so just give it 1 second, please. In the back first.

I guess to what extent does a stronger IPO market kind of feed your reporting solution, if at all?

Yes. So the question on capital markets and selling that. So there's 3 ways that we look at a healthy IPO market benefiting us. The first is a healthy IPO market, I call it the dream of going public, enables us to sell into private companies. In a healthy IPO market, private companies look at IPO as one of their options for exit. And that allows us to go sell into that and saying, "Hey, 18 months, 24 months you go public, you think about buying our private company reporting, our internal control solutions," something like that. So a healthy IPO gives us a good market to sell into private companies pre-IPO.

Yes, we support the S-1. So a greater number, for example, the U.S. listings we've seen this year gives us a greater base to sell into, so we can sell more S-1s. And finally, even if we don't help the company with the S-1, based on the last 15 years of history, we will win our fair share of new SEC filers. And the creation of new SEC filers gives us, one, a base to sell into SEC reporting. What's interesting about this most recent cycle is we're seeing much larger companies go public. So in that case, these much more complex organizations are likely to buy more than just SEC. They might buy internal controls or multi-entity reporting or many of the other solutions that we have. So these more mature companies going public, even if we have SEC as part of it, they become multi-solution platform deals because there's large enterprises.

So my understanding of Workiva is that, your technology is pretty integrated with the more complex customer, the more integrated it is with the tech stack of the customer because you needed to be able to glean data and information from different parts of the organization and then that's used for the compliance. So to the extent that there is this race to adopt AI and that changes the tech stack of your customer, how much of a tech debt would that create for Workiva to continue to do what you're doing for them? And like is there an implication to margins?

Yes. So I mean, maybe answer it this way, getting specifics, I mean, oftentimes, the source of data that starts a process in our platform would be the ERP system, that system of record of transactional data. To date, we haven't seen that changing, right? So most -- the LLMs are not repositories of data. They are actors on top of data that sits somewhere else, right? So the source of data to date has not been disrupted of what we pull from, right? So whether it's an SAP or an Oracle or a NetSuite, right, that data will come in, right? If that somehow changes to a newer vendor that's a source of record like a Rillet, I mean, that is just a different source of data and our source of data change over time. So we don't see that necessarily changing.

I think it does bring back to the forefront of a system like Workiva that is the system of as-reported data, right? It also shows the value that we have, right? So as you highlighted, one, we're part of the ecosystem, right, which gives us some strength in inertia and disruption. We have also this platform where we have all this data and this trusted data, all this pre-release data with all the permissions and security established that gives us a strong foothold there and the platform of data have, and we have these customers. We have 6,700 customers that are there. And to assume that somehow you're just going to vibe code that away, that's a tough hill to climb there, right? So you're going to vibe code away the ecosystem, the platform of historical data and the strong customer allegiance and support and all of that, right? That is the power that we believe we have as an incumbent.

Any other questions in the room? Thank you for those questions. Those were great. Maybe shifting gears a little bit just on the financial model at this point. I think you've shown a ton of leverage over the past couple of years. I think it's 14 points of operating margin expansion in 2 years. Maybe the question is, I guess, 2 part like, one, as we think about the go-forward investments that you're making, how are you thinking about the balance now between investing either in like the R&D opportunity for AI or the go-to-market opportunity around that? And then secondly, just where do you kind of view the incremental leverage points at this time?

Yes. I mean, first, thanks for asking the question. As I sat here a year ago, there was a lot of questioning whether or not we would even be able to achieve our 2027 targets that we had out there. And as you highlighted, right, as we reported in Q2, right, we had a 1,300 basis point improvement in margin as reported in Q2. And we also discussed that we, as guided for our year-end this year, are pretty much at those 2027 targets we did. So we've approached those a year early. So hopefully, we've demonstrated some progress and some capability to convince the broader world that we can drive leverage in this business.

So where does that go? We have a 2030 model out there that does show a path to some incremental improvement. I think given all the disruption that's happened this year, right, our focus right now immediately is still, yes, on both growth and on performance and productivity. And that dual focus, we believe, will continue. And this becomes as much a growth as a margin piece.

It's relatively, I think, proven -- if you look at how we got to our margin improvement, right, it's primarily people, right, in a software company. And we are looking at how we optimize that equation moving forward and are optimistic we can do both, that we can continue to show this durable growth and, at the same time, drive some incremental leverage.

Okay. And is there a way to think about the path now from where we are today to that 2030 target? Is it a bit more of a glide path? Or is there some maybe processing of the investment? Just how should we think about that?

Yes. I mean I think it's -- I think if you look at the most recent 3-, 4-quarter trend, right, I mean, the glide path should hopefully be fairly evident. And again, how that materializes over time, right? I mean you start looking at all the different levers in there between gross margin, between R&D, how much productivity we can get out of AI in 4 years on R&D? And are we going to have -- is there any impact to gross margin? There's a lot of moving parts in the equation. We believe we have strong command and control over those levers and are monitoring all that. So yes, I mean, our ultimate goal is to show increased productivity to drive incremental cash flow and to drive that leverage in the business.

Okay. I think we're running up on time, maybe in the last minute, at the Investor Day and conference next week, maybe we can get a little preview for what folks should look forward to next week.

Yes. I mean, we are a software company. Thanks for mentioning it. We have an Investor Day next Tuesday. We have a user conference in Las Vegas. You can join online for both the Investor Day and the product keynote that we're doing Tuesday morning, so I encourage you to do that. Yes, as a software company, we do a product keynote. So we'll be talking about new products. AI might be mentioned in there. So yes, stay tuned for a bunch of exciting things that we believe are going to happen next week and can't wait to join, what was it, 2,500 plus of our customers next week at that event?

Awesome. Well, Mike, thank you so much for being here and the rest of the Workiva team, and I want to thank everybody in the room for joining us as well. So thanks again.

Thank you.

Good afternoon, ladies and gentlemen. Welcome to Workiva's Q2 2026 Earnings Call. My name is Harmony, and I will be your host operator on this call. [Operator Instructions]

Please note, this call is being recorded on August 4, 2026, at 5:00 p.m. Eastern Time.

I would now like to turn the meeting over to your host for today's call, Katie White, Senior Director of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining Workiva's Q2 2026 Conference Call. During today's call, we will review our second quarter results and discuss our guidance for the third quarter and full year 2026. Today's call will include comments from our Chief Executive Officer, Julie Iskow, followed by our Chief Financial Officer, Barbara Larson. We will then open up the call for a Q&A session. After market closed today, we issued a press release, which is available on our Investor Relations website, along with our quarterly investor presentation. This conference call is being webcast live, and following the call, an audio replay will be available on our website.

During today's call, we will be making forward-looking statements regarding future events and financial performance, including guidance for the third quarter and full fiscal year 2026. These forward-looking statements are based on our assumptions as to the macroeconomic, political and regulatory environment as of today, reflect management's current expectations and beliefs based on factors currently known to us and are subject to significant risks and uncertainties. Workiva cautions that these forward-looking statements are not guarantees of future performance. We undertake no obligation to update or revise these statements.

If the call is reviewed after today, the information presented during this call may not contain current or accurate information. Please refer to the company's annual report on Form 10-K and subsequent filings with the SEC for factors that may cause our actual results to differ materially from those contained in our forward-looking statements. Also during the course of today's call, we will refer to certain non-GAAP financial measures. Reconciliations of GAAP and non-GAAP measures are included in today's press release.

With that, we'll begin by turning the call over to Workiva's CEO, Julie Iskow.

Thank you, Katie, and thank you all for joining us today. Q2 2026 delivered another quarter of strong financial performance and continued demand for our trusted platform. We beat the high end of our revenue guidance with 19% growth in both subscription revenue and total revenue. We also continue to execute on our commitment to profitable growth, achieving a Q2 non-GAAP operating margin of 16.8%. This was a 180 basis point beat on the high end of our guide and a 1,300 basis point improvement compared to Q2 of last year.

Our Q2 results once again reflect broad-based durable demand across our entire portfolio of solutions. It also reflects our unwavering commitment to operational efficiency as we scale our business. Because of our strong operating margin performance in the first half of the year, we're raising our full year 2026 non-GAAP operating margin guidance to 18%. This 18% operating margin target is an important milestone for Workiva. This was the target communicated in our 2027 operating model. And with this updated 2026 guide, we will be delivering on that operating margin target a full year early. This margin milestone reflects disciplined execution across every part of our business, and it reflects deliberate changes to how we're organized to how we deploy resources and to where we direct those resources.

This isn't a 1 quarter result. It's a reflection of the operating model that we continue to improve as we grow. And our growth continues to be supported by the opportunities that we're seeing in the market. The office of the CFO is undergoing one of its most significant transformations in decades. Finance leaders are being asked to do far more than close books and report results. Today, they're also responsible for the data that their businesses rely on and how AI is governed and they're helping their organizations navigate a more complex regulatory and risk environment, but that's only part of the story.

AI is also changing what's expected of the people that are doing the work. CFOs and their teams are expected to deliver insights in hours instead of days. They're expected to automate more of the work that's still manual, answer more questions with greater confidence and respond faster as regulations and business conditions continue to change. They're also no longer expected to simply use enterprise software.

There's now an expectation that they'll extend it and build upon it. Users are becoming builders. They're creating AI agents. They're automating complex processes. They're connecting trusted business data with the rest of their technology ecosystem. They're extending the platforms they already rely on every day. And they're expected to do all of this while maintaining the governance, the security, the accuracy and the auditability that the office of the CFO demands. And as AI becomes more embedded in more business processes, trusted, connected and traceable data matters more than ever.

This is exactly where Workiva can make the biggest difference. Our customers shouldn't have to assemble AI models and agents and enterprise systems and governance tools just to meet these new expectations. and they shouldn't have to choose between adopting the latest AI capabilities and maintaining the trust that their organizations depend on. They should be able to do both. That's why we're building intelligent capabilities that customers can put to work immediately. Some customers will use these capabilities as they are. Others will want to go further. They'll connect Workiva with more of their systems, build their own agents, extend workflows or use Workiva as part of a broader AI ecosystem.

Our approach supports both. We deliver the AI capabilities that our customers need today while giving them the flexibility to build, to connect and to extend those capabilities. inside Workiva and beyond it, all grounded in the trusted data, governance and controls that they already manage within the Workiva platform. We believe this combination will help finance organizations meet the rapidly rising expectations of the office of the CFO. It's what our customers are asking for, and it's what we're building. And we believe no one is better positioned to deliver it than Workiva. This value proposition is resonating at the highest levels of the enterprise. Our largest customers are standardizing on Workiva, and it shows in our large contract cohorts.

In Q2, contracts valued over $300,000 annually grew 34% and contracts above $500,000 annually grew 33%, both compared to Q2 of 2025. This growth reflects both continued expansion within our existing customer base and the landing of larger multi-solution new logos. I'd like to highlight a few of our Q2 deals that demonstrate how our platform is winning in the market to solve our customers' most complex reporting challenges. First, we signed a mid-6-figure account expansion deal with a global digital banking and fintech leader for private company reporting, multi-entity reporting, connected bank reporting and sustainability. The bank is on a multiyear private to public journey while expanding globally and transitioning to a full-service regulated bank.

The investment in Workiva as a core financial and regulatory reporting platform is central to supporting this transformation across tax reporting, sustainability disclosures and Basel Pillar III regulatory compliance. Second, we signed a multi 6-figure new logo deal with a U.S.-based global material science company. The customer purchased 4 solutions: SEC reporting, management reporting, controls management and sustainability. Following a highly competitive process, they chose Workiva over a multiple point solution vendor approach because of our ability to serve as their definitive system of truth. They recognized that no combination of disparate vendors could replicate our platform without sacrificing data connectivity, collaboration and trust.

Workiva will support this company's rapid expansion through acquisition and their increased focus on global distribution. The deal was a co-sell and will be delivered by a regional advisory firm. I'll turn now to financial reporting. Demand continues to build as companies modernize complex global operating models, and the bar for what that requires keeps rising. Organizations need continuous access to accurate and traceable data to stay report ready and audit-ready not just at quarter end, but continuously throughout the quarter.

Here are a few of the many Q2 wins worth highlighting. First, we signed a mid-6-figure new logo deal with a U.S.-based global government and defense technology services company. This customer purchased SEC reporting, multi-entity reporting, management reporting and sustainability. The primary driver for this opportunity was a global enterprise reporting transformation initiative that spans the company's operations in more than 90 countries. With complex and evolving reporting requirements across numerous jurisdictions, the customer sought a single platform capable of supporting global governance and local compliance. They selected Workiva because our unified platform enables them to meet the unique reporting mandates in the markets in which they operate, while empowering distributed teams worldwide to modernize and streamline their critical reporting processes.

Second, we signed a mid-6-figure expansion deal with the U.S. regional bank. This loyal customer upgraded to our advanced tiers for both SEC reporting and sustainability, and they expanded across 3 additional solutions: tax reporting, living will and stress testing. The primary catalyst for this expansion was the bank's reclassification as a Category 3 institution. This significantly expanded its regulatory reporting obligations. The deal was a co-sell with a regional advisory firm. I'll move on now to one of our key vertical-specific solution categories, financial services. We continue to see strong demand as institutions navigate increasingly complex regulatory requirements.

Here are a few highlights from the quarter in this vertical. First, we signed a high 6-figure account expansion deal with a large global private equity firm for fund reporting. This company signed on as a Workiva customer in Q3 of 2024. It first invested in our fund reporting solution in Q4 of 2025. Within 6 months, they have more than tripled the number of funds supported by the platform, and they now spend more than $1 million with Workiva. This deal is a great example of how our metric-based licensing model drives the opportunity for ARR expansion in a single solution. The deal was sourced and will be delivered by a regional advisory firm.

Second, a big 4 professional services firm operating in Europe's largest investment fund market, signed a mid-6-figure expansion deal for fund reporting. The firm is expanding its use of Workiva across its fund administration business to support financial statement preparation and other fund reporting for a growing population of fund entities. This expansion enables the firm to consolidate reporting processes on to Workiva, driving greater standardization and scalability as its business grows. Next, I'd like to cover governance, risk and compliance. Risk and audit teams are navigating accelerating AI governance, geopolitical uncertainty and changing regulations, often with leaner teams than ever before. Many are finding that siloed approaches are no longer sustainable.

Organizations are choosing Workiva to centralize enterprise risk, transform audit and controls and streamline compliance. With AI embedded across our GRC platform, including our Flow Chart visualizer and GRC Intelligence agents, we help teams identify emerging risks faster, uncover patterns earlier and respond with greater confidence. Let me share a few Q2 GRC deal highlights. First, we signed a mid-6-figure account expansion with a Fortune 500 specialty insurance holding company. This company added multiple solutions, including enterprise risk, compliance management and management reporting. 3 years ago, this customer had just 2 Workiva solutions totaling just over $100,000.

Today, they have expanded to 9 platform solutions, spending high 6 figures annually with Workiva. The additional GRC expansion was driven by the need to eliminate significant manual effort, consolidate technology across teams and establish a unified enterprise data strategy. The opportunity also displaced a stand-alone GRC point solution, further reinforcing the value of a connected platform. Second, we signed a multi 6-figure expansion deal with the U.S. Farm Credit Bank to build and scale its GRC program across audit management, controls management, compliance management, enterprise risk and operational risk management. This opportunity centered on displacing an incumbent GRC point solution in favor of the more comprehensive Workiva platform. The deal was a co-sell with a regional advisory firm.

Another area worth highlighting is sustainability. As sustainability requirements move into implementation, we're seeing an important shift in the market. Organizations are moving beyond preparing for compliance to operationalizing trusted audit-ready reporting. As a result, responsibility is increasingly shifting to the office of the CFO. CFOs expect sustainability disclosures to be held to the same standards as financial reporting with the same traceability, governance, internal controls, assurance and auditability. That's changing buying behavior. Stand-alone sustainability solutions are no longer enough. Increasingly, customers are choosing Workiva as the unified platform to manage financial and nonfinancial reporting together using the same trusted data, governance and reporting processes. Our deal activity reflects this trend.

Our largest sustainability wins almost always include one or more financial reporting solutions, whether that's ESEF for integrated reporting, SEC reporting for U.S. filers or increasingly multi-entity reporting. And the business driver is straightforward. Companies reporting under CSRD, ISSB, California's SB 253 and other sustainability reporting requirements are often large multinational organizations with complex legal entity structures. They need trusted data, consistent governance and reporting processes that span both financial and nonfinancial information. This is where Workiva is differentiated. We are uniquely positioned to bring these reporting processes together in a single, trusted platform. Let me highlight a few sustainability deals from Q2.

First, we signed a mid-6-figure new logo deal with one of Europe's largest state-owned energy companies serving roughly 20 million customers. This company purchased sustainability reporting, ESEF and controls management. The deal was driven by CSRD compliance requirements and was a competitive win over multiple point solutions. Workiva was the only solution to address the financial reporting, GRC and sustainability requirements on a single platform. The deal was a co-sell and will be delivered by a big 4 firm.

Second, a global health care technology company signed a mid-6-figure expansion deal, upgrading to sustainability Advanced. This customer also extended sustainability across multiple entities and added multi-entity financial reporting. The driver for this opportunity was ISSB compliance and the need to connect financial and nonfinancial data across their global legal entity structure. This was a competitive displacement of a stand-alone sustainability point solution. This is exactly the consolidation dynamic that we're seeing across our customer base.

To conclude our customer highlights, let's turn to capital markets. Following the momentum we saw earlier in the year, the IPO market demonstrated continued strength in Q2. We supported a robust slate of public listings this quarter. 3 in particular, reflect the breadth and the caliber of organizations that are choosing Workiva as they enter the public markets. SpaceX, one of the most complex and closely watched listings in market history. Cerebrus, a leader in AI infrastructure and Quantum at the forefront of quantum computing. These aren't just marquee names. They represent exactly the kind of organizations that require a trusted audit-ready platform before they file and throughout their life as a public company.

The capital markets opportunity for us extends well beyond the S-1. We often engage with complex private companies years before they go public. We help them build the reporting infrastructure, controls framework and trusted data foundation that a public company requires. That early engagement matters. When these companies file their S-1, Workiva is already embedded. And when they become SEC registrants, they expand our addressable market for additional solutions, including SEC reporting, controls management and multi-entity reporting, regardless of whether we supported their initial listing. The private to public journey is an entry point. The platform relationship that follows is a long-term durable value driver. I'll turn now to product innovation. Workiva is in the midst of a fundamental transformation with AI. Trusted data has always been at the core of what we sell. And in an AI-driven world, that foundation becomes a structural advantage.

Organizations can deploy AI broadly. What they cannot easily replicate is a platform where every data point is traceable, every output is auditable and every disclosure can be defended. That is what we are building on. And we are transforming our platform to be Agentic first, where AI doesn't assist at the margins, but executes directly within the high stakes workflows that define the office of the CFO. Workiva recently announced the release of new AI capabilities to our advanced solution tiers for SEC, for sustainability and for other solution offerings. These new AI capabilities bring regulatory-grade agents for sustainability disclosure, for financial tie-out and for disclosure peer benchmarking. These are not general purpose AI tools.

They are purpose-built agents designed for environments where accuracy, auditability and explainability are nonnegotiable and every output produced is built to withstand scrutiny. The new sustainability disclosure agent drafts, checks and improves disclosures directly against sustainability frameworks, moving teams from requirements interpretation to review-ready drafts without leaving Workiva's governed environment. The result is faster cycle times, fewer interpretation gaps and disclosures that arrive at the review stage already grounded in the applicable standard. Workiva's newly enhanced tie-out agent performs comprehensive consistency checks across financial reports. It automatically flags discrepancies and surfaces AI-generated explanations for each variance.

With this agent, teams can catch errors earlier, close faster and finish with a fully documented auditable trail that supports both internal review and external examination. And the new benchmarking agent brings peer analysis directly into the platform, enabling financial reporting teams to build custom peer groups, identify disclosure gaps and draft market-aligned disclosures with every insight traceable back to the source filing. Peer Intelligence is no longer a separate work stream. It's embedded in the location where the disclosures are built. Alongside these purpose-built agents, we recently introduced the Workiva MCP Gateway, a governed connectivity layer that extends the Workiva platform to the enterprise AI tools that organizations already use. Whether customers work with the leading frontier models or work with other custom-built agents, every AI connection through the Workiva MCP gateway inherits Workiva's identity, permissions, governance and data lineage. AI-generated work remains fully traceable back to its underlying source data regardless of which model produced it.

The MCP gateway creates a universal integration layer between enterprise AI and Workiva. Customers' preferred AI tools can securely interact with the live data and workflows in the platform rather than relying on manual exports or static document uploads. Instead of working from stale snapshots, AI can retrieve real-time governed context directly from the Workiva platform. The result is that organizations no longer need to choose between adopting best-of-breed AI and maintaining enterprise-grade governance. With the Workiva MCP gateway, they can use the AI of their choice while preserving the security, traceability and control that's required for business-critical reporting. We've also expanded AI capabilities at the platform level.

Last week, we introduced persistent custom knowledge bases, allowing organizations to build a centralized repository from their own content and reference it across every AI interaction on the platform. Here are a few representative examples of how customers are using this capability. First, a financial reporting team can draft new disclosures grounded in prior filings and earnings documents already living in Workiva, maintaining consistency in language, structure and disclosure across quarters. Second, a regulatory reporting team at a bank can produce examiner-ready stress testing narratives by drawing on past DFAST and CCAR filings and a continuously updated library of regulatory guidance.

And third, an internal controls team can execute audit workflows and reference their own policy and procedure library, so every AI output reflects the organization's standards, not generic assumptions. In each case, the output is grounded in content the organization has already vetted and stands behind. That distinction matters when the work product will be reviewed by auditors, regulators and investors. This is AI that makes outcomes traceable and defensible, built for the scrutiny that defines this space. We look forward to showcasing more product innovations at our upcoming Amplify Conference and our 2026 Investor Day in September. I'll close with one final thought.

The demands on the office of the CFO will continue to grow in both scope and complexity. And we believe Workiva is differentiated by our ability to meet these demands. Our commitment is to keep earning that differentiation through disciplined execution and rapid innovation. I'd like to thank our customers for their trust and our partners for continuing to expand our reach. I'd also like to thank our employees for their dedication, their relentless focus and everything they do to serve our customers and move Workiva forward.

With that, I'll turn the call over to Barbara to take you through our financial results and our outlook for the rest of the year.

Thanks, Julie. I'll start with an overview of our Q2 financial and key metric highlights, followed by our guidance for the third quarter and the full year 2026. Q2 once again delivered broad-based demand across our portfolio of solutions. Second quarter total revenue was $255 million, up 19% year-over-year and beating the high end of our guidance range by $3 million. In line with expectations, foreign currency fluctuations had a minimal impact on our reported top line growth rate. This was a departure from the prior 4 quarters where reported results included a 1- to 2-point tailwind from foreign currency fluctuations.

Subscription revenue was $236 million, up 19% 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 Q2 subscription revenue, consistent with our expectations. As of quarter end, our current remaining performance obligations were $789 million, up 18% 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 negative impact due to foreign currency. Professional services revenue was $19 million, up 12% over the prior year due to an outperformance in XBRL services. On to productivity. As Julie mentioned, our non-GAAP operating margin for the quarter was 16.8%. This beat the high end of our guidance by 180 basis points and was a 1,300 basis point improvement over Q2 of last year. This was driven by the revenue outperformance and our continued focus on operational rigor and productivity as we scale the business. I'll talk more about the significance of this in just a moment.

Moving on to our performance metrics for the quarter. We had 6,750 customers at the end of Q2 2026, an increase of 283 customers year-over-year. Our gross retention rate was 97%, exceeding our 96% target. And our net retention rate was 111% for the quarter. Consistent with our reported revenue growth, the impact from foreign currency was minimal. In line with our expectations, both our reported and constant currency NRR exceeded our target of 110%. In Q2 2026, 76% of our subscription revenue was generated from customers with multiple solutions, up from 71% in Q2 2025. Growth in our large contract customer cohorts also reflected strong momentum. As of the end of the first quarter, we had 2,690 contracts valued at over $100,000 per year, up 20% from the prior year. The number of contracts valued at over $300,000 totaled 656, up 34% year-over-year. And the number of contracts valued at over $500,000 totaled 276, up 33% from Q2 2025. Turning now to the balance sheet and cash flows.

As of June 30, 2026, cash, cash equivalents and marketable securities were $815 million, a decrease of $48 million from the prior quarter. This was primarily driven by our opportunistic repurchase of 2,492,000 shares of our Class A common stock for $123 million. As of quarter end, we have repurchased a total of $244 million under our $350 million share repurchase program with $106 million remaining as of quarter end. Moving on to guidance. For the third quarter of 2026, we expect total revenue to range from $260 million to $262 million. We expect services revenue to be up slightly compared to Q3 2025, and we expect non-GAAP operating margin to be in the range of 17% to 17.5% for the full year 2026, we expect total revenue to range from $1.040 billion to $1.044 billion.

For the back half of the year, our guidance assumes foreign currency rates remain roughly in line with June 2026 levels, which would result in a minimal year-over-year FX impact to projected revenue growth for both Q3 and Q4. We continue to expect subscription revenue to grow approximately 19% year-over-year, and we expect total services revenue to be up slightly year-over-year. We are raising our non-GAAP operating margin outlook by 150 basis points versus the high end of our prior guidance and now expect it to be approximately 18% -- this over 800 basis point year-over-year improvement reflects our ongoing commitment to drive operating leverage as we scale the business. This is a significant milestone that reflects operational rigor across the company to become more productive faster.

There are many examples, including in sales, where we are refining our go-to-market around higher-value platform opportunities, in R&D, where we have embedded AI across our teams and accelerated our speed of innovation and company-wide, where we have improved productivity and embedded AI into workflows that previously required significant manual effort. The resulting outperformance means we now expect to achieve our 2027 medium-term operating margin target a full year early. And our improved productivity extends to cash flow as well. We are raising our 2026 free cash flow margin outlook by 100 basis points to approximately 21% for the year. To wrap up, Q2 was a strong proof point that growth and profitability are not a trade-off at Workiva. Our results reflect an operating model that is working and a platform that continues to earn the trust of the most sophisticated finance organizations in the world. We're entering the second half of 2026 from a position of strength with the financial flexibility to keep investing in growth and innovation. We look forward to sharing more at our Investor Day in September.

With that, I'll turn the call over to the operator for Q&A.

[Operator Instructions] Our first question comes from Alex Sklar from Raymond James.

Julie, maybe first one for you. Just on the overall demand environment and budgets broadly. Can you talk about what you saw in the second quarter from a sales cycle and customer budget or deal size perspective relative to some of the prior quarters? And then also, as you spoke about the growing complexities your customer base and prospects are facing, any change to how you're setting up the go-to-market organization to kind of meet that value prop?

Sure. Thank you for the question. Appreciate it. I think it's top of mind, of course, what's going on in the demand environment. I will say, overall, the demand environment really has remained relatively consistent throughout the year. still a dynamic environment. We're still seeing changing complex regulatory requirements. We're seeing the evolving expectations around AI and AI governance. But for us, these trends really reinforce the need for what we do. In fact, we've continued to perform well across the portfolio in Q2 and second half. And it's actually for us a really good proof point for our relevance in the market.

I will say, though, maybe worth mentioning that our field team has highlighted a trend that deals do have more scrutiny and there are maybe more approvers and more rigor at the legal level. But we're very much aware of this, prepared and being aware and being prepared makes a real difference in our execution. So it's not just in the field, but in operations, including our legal team who is very sales focused and commercially and customer focused. So we are prepared for that next level of rigor. But I do want to mention that our team is seeing that out in the field. But overall demand environment is very consistent over the prior quarters. So you also asked about our go-to-market motion.

Look, that's very consistent with prior quarters. For us, it's all about the platform. It is multi-solution. It's multi-category, leveraging our partners. for influenced and sourced deals, pushing on those larger account expansions and so forth. So not -- those motions for us are how we've been we're executing on our strategy. So not a whole lot different there. We have a broad portfolio of solutions that we continue to work with our customers to bring value. And on the deal cycles, and you asked about that, too. And it ebbs and flows up and down. But actually, last quarter, this quarter, we saw shortened deal cycles. So that's very encouraging for us. So thanks for highlighting that.

Okay. Great color there, Julie. And maybe just a follow-up for you or for Barbara. Just in terms of the packaging and the advanced bundle opportunity you've spoken to in the past, any change in adoption of those advanced packages on renewal through the second quarter or where you stand on penetration of those advanced packages across the base?

Yes. We are very encouraged with the traction of the premium tiers and our good, better, best pricing. Still early days. We just began rolling those out over the past year or so. So still watching the uptick. But as I'd mentioned, we're getting a decent price premium on those, and we've talked about that being north of 20%. We're encouraged and watching more and more of our base move into those and selling them as we land as well. So very encouraged by that monetization framework. Thanks for highlighting that, too.

Your next question comes from Allen Berkowitz from BTIG.

This is Nicholas Dannewitz on for Allen Berkowitz. Just one on our end here. So we thought the subscription revenue of 19% is pretty strong for a company of your size. What's giving you guys the confidence in your growth durability given you need about a 17% subscription revenue CAGR to reach the midpoint of your 2030 total revenue target?

I can start the ball here and just say, as I mentioned, we have a very broad portfolio of solutions, Nick. And I like that you asked the question because it's a chance to talk about that. I mean, again, every quarter, it may be a few of them are stronger than others and dominate. But for the most part, it is very broad-based across the portfolio of solutions that we offer. And we're seeing a lot of traction. Our partner ecosystem is continuing to get stronger. Our expansion motion is very healthy and continues to get stronger. multi-solution, multi-category, I mean we're just -- we're executing, and it's moving in the right direction for us, and we feel very strong in terms of our execution. Our go-to-market machine is getting stronger. So it really -- the broad-based platform, the need, the customer need in the market, as I highlighted in my prepared remarks and of course, just our own execution getting stronger. Barbara, do you want to comment?

Yes. I'll just add one more thing in there. So international is an additional growth lever for us. So like Julie said, very broad-based. We're not dependent on any single lever, deep portfolio, new logos expansion and then international as well. Thanks for the question.

Your next question comes from Andrew DeGasperi from BNP Paribas.

I wanted to ask a question, Julie, on the financial services opportunity in particular the fund reporting product. You highlighted for 2 large deals. And I'm just wondering, can you elaborate a little more in terms of how that's progressing? Are you seeing ramped up adoption? Is there anything that's accelerating that? And I also noticed that you mentioned North America and Europe as driving that demand. So I would love to have additional color on that.

Sure. Another area we're very encouraged is our financial services vertical. We have a strong sales organization there. We've been increasing in our footprint there, both in U.S. but also in Europe. As you mentioned, the fund reporting, we had private funds and we rolled out a public fund reporting capability over the past year. And we've been out in the market selling and we're encouraged by the traction. A lot of large deal sizes around it. But I will say that particular one public fund still early, but again, very encouraged. And it does play into the area that we play best in, which is, of course, large enterprise.

That's helpful. And then I just wanted to ask a question on net retention rate. So if my math is right, it did improve versus last quarter modestly. So just wondering, was there anything in particular that helped drive that? And obviously, if we exclude foreign FX in that number. Is it -- was it something specific? Any products? Or was it broad-based?

So NRR was 111% for the quarter. And just one thing to keep in mind is we did have a 2-point tailwind to NRR in Q1 from FX. And in Q2, so this quarter, that tailwind went away. So if you look at NRR on a constant currency basis, it was relatively steady on a quarter-over-quarter basis and was again above our 110% target.

Your next question comes from Brett Huff from Stephens Inc.

Two questions. One, just kind of a derivative of the NRR. Can you talk a little bit about -- I think you said there were some XBRL benefits. And I wanted to also understand what kind of the SEC reporting IPO benefits you might have seen in the quarter? And if the expectations for the annual growth guide now include some more that weren't in there before? And then my second question is more of a leasing question, which is congrats on the 18%. I think your long term is 24%. Any thoughts on maybe raising the ceiling on that 24% or even just some qualitative thoughts?

So I'll take the question on services or XBRL. So in Q2, we did see services revenue come in a bit higher than expected. And some of that was onetime. It was specifically around 11k filings that happen annually. So we're not expecting it or planning on it repeating in the back half.

Thanks, Barbara. And I will just talk about cap markets for a moment. It was actually a very fun quarter for us market-wise. We were encouraged to see continued strength of the IPO market. And as I mentioned in my prepared remarks, we supported a very robust slate of public listings this quarter. I mentioned [ SpaceX and Cerebrus and Quantinuum ]. And these companies really represent exactly the kind of organizations that require a trusted audit-ready platform. So you asked about the revenue and the guidance revenue perspective, it was very much in line with our expectations. Back in February, we said we were optimistic about the IPO momentum going into '26, and we did incorporate that into our guide. So I would say that H1 of this year was better than H1 of last year, but very much in line with our expectations. So we are taking it into account part of the guide and very consistent with what we said in both February and May, in fact.

And thanks for highlighting that we now expect to achieve our medium-term operating margin target of 18% in 2026. So that's a full year ahead of schedule. Naturally, that shifts our focus to our 2030 framework, which we've outlined in our investor deck. We're not planning to update that at this time. Our 2030 targets remain unchanged, but we continue to remain focused on staying disciplined, scaling efficiently and executing against this plan that we've laid out. We feel really good about the progress we've made.

Well, congrats to being able to grow and expand margins. Appreciate it.

Your next question comes from Steve Enders from Citi.

Maybe just to start, just would like to ask a little bit about some of the newer agent products that you've been rolling out and wondering kind of what the early feedback has been from customers and how you're viewing the monetization potential for those solutions now that they're just starting to get out into the marketplace.

Sure. And thanks for highlighting our release -- newly released product capabilities around AI. We did one very recently as recent as last week, focused on both solutions and our platform. And I'll just -- I'll highlight for everyone, there's really a common thread around all of these announcements and prior releases as well that we're helping our customers just complete work faster with greater confidence by enabling the platform to do more of the work on their behalf. And of course, which is our great differentiator, maintaining the governance and control and traceabilities that our customers really need and expect.

So we did introduce a number of agents, purpose-built agents, the tie-out agent, benchmarking agent, sustainability disclosure agent and so forth. And along with Workiva Knowledge, which is core now into the platform. And we put those into our premium tiers and our good, better, best model. And we have seen excellent traction in those premium tiers since we began doing that over the year, 1.5 years that they've been out, and we continue to see that traction, whether we're going back to customers at renewal or even mid-cycle because they would like to adopt some of that AI capability and other premium features that we have available. So again, we're very pleased with the initial traction in the market, and our expectation is that we continue to bring our base up to the higher tiers within that monetization framework, and we will continue to roll out the capabilities to, again, help our customers do more the work using our platform.

Okay. That's helpful context there. And then maybe just on some of the moving pieces with FX rates, and I appreciate you calling those things out. But I guess anything that we should be kind of keeping in mind for what that means for either the rest of the year or anything to keep in mind for like billings or free cash flow dynamics as well?

Yes. We have assumed for the back half of the year on our top line metrics and our numbers that our currency remains relatively flat with the rates that we saw at the end of June, so the end of the quarter.

Okay. And sorry, just on, I guess, seasonality, anything we should keep in mind for billing or free cash flow timing for the rest of the year?

Pretty in line with historical trends.

Your next question comes from Patrick McIlwee from William Blair.

Nice quarter. So my first question, I understand that your new CRO has been driving a variety of sales and restructuring efforts since he joined kind of moving towards some best practices that he sees within the sales force and notably some deeper account engagement with your sales reps. So my question is now that he's had a few quarters to establish some of those efforts, are you seeing any notable pickup or changes in your sales force execution? And is there anything worth calling out in terms of execution between new logos and then existing customer expansion?

Yes. I think Michael Pinto, we welcomed him very early in the year, and he is doing exactly what we have asked them to do and what we expect him to do. I mean, clearly, -- we are holding accountable for delivering bookings, but we're also very focused on the metrics that will lead to long-term durable growth, and he is very well aware of that. So about improving sales efficiency, increasing pipeline quality, growing our large enterprise accounts, accelerating rep productivity, expanding the contribution from our partner ecosystem.

So I would say, ultimately, he's very busy building a high-performing go-to-market organization that's for us repeatable and scalable and just executing at a high level. And he has made progress on that, absolutely. That's how we think about his success. In terms of new logos, I will tell you that it was our strongest quarter for net new customer additions in the past 7 quarters. It's a metric that we look at and we disclose consistently, so you can see that. I will also say that our focus is more on just adding those new customers, though you asked about that. We're increasingly winning larger, higher-value customers when we land that are ultimately adopting more of the Workiva platform, but they do so too from the outset, which is important for us.

So those lands are often multi-solution 6-figure relationships with significant long-term expansion opportunities. So I will say those new customers are in absolute number are larger, but also the customers themselves are buying more at the outset. We're also seeing average deal size for those customers increase year-over-year as well, which we think is another good indicator of the quality of the business that we're bringing in.

That's all really encouraging -- and then just to follow up while we're on the topic, I wanted to ask if there's anything you can share in terms of your overall go-to-market staffing, if that's growing or relatively steady. And then I understand in the past, you've moved some reps around to kind of the best available opportunity set. So I'm just wondering if at this point, you feel you're structured appropriately across your main product suites?

We are moving towards that structure. We've been very clear about not wanting to disrupt our go-to-market execution and results. We want to keep the growth going. So that isn't a onetime Michael coming in for a couple of quarters and being done. That continues to evolve and as the market changes and grows, and we get better as a company, too, in our execution. But -- you mentioned the hiring. We have been hiring and we're going to continue to see that hiring in strategic areas that support our growth and innovation priorities as well. So we will be adding more of the customer-facing roles where we see opportunities to expand.

I would expect our hiring to remain very disciplined with the mix of talent continuing to evolve as the strategy evolves. But I do want to make clear, we are bringing in new talent. We are putting them in strategic areas in go-to-market. So even though you see our new hire numbers are relatively flat, we are managing talent and ensuring we have the right people in the right roles. And I think that's very important to be blending that with our new hires. So it should give you a feel for how we're moving forward with people and talent.

Your next question comes from Rob Oliver from Baird.

Julie, for you. So I guess not having a seat-based model kind of frees you guys up from the kind of pain here of having to convert customers to a new model, which we're seeing across many players in the financial suite. And it really allows you to focus on this kind of good, better, best opportunity with value you're already delivering. So I'd love to get a better sense from you. I know that some of the Agentic offerings, which you've announced are going to be in the upper tiers rightfully so. But how do you think about stratifying those in a way where customers get a taste for the value and where you can drive greater usage and ultimately higher contract value when you come to these renewal periods?

You nailed it. Thank you for highlighting that we are not seat-based. And we've been using a value-based pricing model for years. And I say that again because it does play into the tiering -- so if we have a customer in an advanced tier, they have been paying that even before AI, they have been paying based on value, whether it's number of controls, number of entities, size of company and so forth. So they would have a different price in that higher more premium tier. So that is how we are capturing that value. And our approach, you got it there, too. I mean really, our monetization isn't changing as we roll out these capabilities right now, and it's quite straightforward using that good, better, best methodology or framework. So that is how we are capturing the benefit. It's not everyone pays the same price in the premium tier. We are still -- it is all about value and usage on the platform, and that is how we're charging those even within the same tier.

Great. And then, Barbara, just quickly for you. Just on the sales efficiency side where you guys have been making a lot of progress. Just wondering if there's any additional things you could point to in terms of whether it be AI tools or sales efficiency initiatives that you've done in conjunction with your new CRO, where sort of gives you confidence on the continued trajectory to contribute to that margin improvement?

Yes, Rob, thanks for the question. It continues to be like a work in progress as we move to platform sellers. So that's one of the things that we are working through. Absolutely, AI is part of the efficiency story there. But the one thing I don't want to get lost is we do continue to invest in sales and marketing and a lot of those efficiencies that we also will continue to drive, we will invest back into the business with more feet on the street to really go after that opportunity that we see in front of us.

That does conclude our question-and-answer session, and that does conclude our conference for today. Thank you for attending today's presentation. You may now disconnect.

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.

This session is being recorded and will be available on demand. If you are looking for additional resources on this topic, please see the links in the related content section. If you have any questions during the webinar, you can submit them through the Q&A engagement tool. Please note, we capture all questions. And if your question is not addressed during the webinar, it will be answered later via e-mail.

For those looking to receive CPE credit today, note that we will be asking you to answer four multiple choice questions during today's event. Receiving your CPE credit is dependent on submitting an answer for at least 3 of the 4 polling questions and attending the full duration of the webinar. These polling questions will pop up in the middle of your screen, and there will be a limited amount of time for the answer to be submitted. So please make sure you are ready to answer when the question appears. Also, please do not make your media player full screen as this will cause you to miss the pop-up polling questions. If you are watching this as a group, please log in individually so you can make sure you receive your CPE credit.

Once you have met the CPE requirements, your certificate will be available for download in the CPE certificate engagement tool on your screen, and it will also be available in a post-event e-mail. And this e-mail is sent about an hour after the webinar. Unfortunately, we are unable to provide CPE credit to those who have technology issues that prevent them from qualifying or to miss the polling questions.

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.