WK

Workiva is a high-quality compliance/reporting SaaS compounding revenue at ~20% a year — $443M (FY21) to $885M (FY25), with FY25 up 19.7% — and doing it at an 78.5% gross margin. Crucially, the GAAP loss is shrinking fast and consistently: net loss went -$128M (FY23) → -$55M (FY24) → -$26.2M (FY25), and operating income improved 44.5% to -$42.4M. The market is being shown a company crossing from cash-burning growth into self-funding scale, yet it trades at only 3.1x sales — a multiple usually reserved for stagnant software, not a 20% grower.

The cash story is stronger than the GAAP optics. Operating cash flow jumped 59.7% to $140.1M against just $2.08M of capex, so the business throws off roughly $138M of free cash flow. The MD&A confirms $891.6M of cash, equivalents and marketable securities versus ~$767M of convertible notes outstanding ($71.1M 2026 Notes + $696.3M 2028 Notes), leaving Workiva net-cash-positive. The headline-scary -$5.44M stockholders' equity and -275x liabilities/equity ratio are accounting artifacts of a -$734M accumulated deficit plus $71.6M of buybacks — not balance-sheet stress. Management's confidence shows in capital return: the board lifted the repurchase authorization by $250M on Feb 16, 2026 (on top of ~$28M remaining), a meaningful ~10% of the $2.75B market cap.