Workiva Inc. (WK) 2026 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen. Welcome to Workiva's Q3 2026 earnings call. My name is Jamie, and I'll be your host operator on this call. (Operator Instructions) Please note that this call is being recorded on November 5, 2026, 5:00 PM Eastern Time.

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

Good afternoon, and thank you for joining Workiva's Q3 2026 conference call. During today's call, we will review our third quarter results and discuss our guidance for the fourth 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 close 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 fourth 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 Iscoe.

Thank you, Katie, and thank you all for joining us today.

Q3 of 2026 was another solid quarter for Workiva. It was marked by steady execution and consistent demand across our platform. We delivered results above the high end of our guidance range, generating $263 million in total revenue, up 17% year over year. This was driven by our 17% growth in subscription revenue.

Our ongoing focus on operational discipline continues to be reflected in our expanding margins.

Non-GAAP operating margin for our third quarter reached 18.3%. This is an 85 basis points beat on the top end of our guide and a 560 basis points expansion compared to Q3 of last year.

We're also seeing continued growth in our large customer cohorts. In Q3, contracts valued over $300,000 annually grew 31%. And contracts above $500,000 annually grew 20%, both compared to Q3 of 2025. This growth reflects both continued expansion within our existing customer base and the landing of larger multi-solution new logos.

Year to date, our performance reflects the durability of our business, our expanding value proposition. And the steady momentum across our customer base and our partner ecosystem.

In September, we welcomed our customers, partners, analysts, and investors to Las Vegas for our annual Amplify conference and 2026 Investor Day.

One message came through clearly. AI is fundamentally changing enterprise software, and it's raising the bar for what customers expect from Workiva. As AI takes on more complex, high-stakes regulatory work, trust becomes even more critical.

Enterprises need confidence that AI-driven outputs are governed, traceable, and auditable. That shift plays directly to Workiva's strengths. It creates an opportunity for us to expand our strategic role, moving from enabling critical regulatory work to increasingly taking on more of that work for our customers.

As AI becomes more central to the enterprise, our strategic relevance is showing up in our customer wins. Companies at the forefront of AI, including leading foundation model companies and category creators like SpaceX, are choosing Workiva for critical financial reporting and high-stakes work.

Even the companies building the AI economy rely on Workiva when accuracy, control, and public market scrutiny matter most.

To build on this momentum and strengthen our platform for agentic AI, we introduced several strategic advances at Amplify.

First, we launched Agent Studio, which enables customers and partners to quickly build, customize and deploy AI agents directly within Workiva's trusted platform, automating sophisticated business processes without writing code.

Second, we launched an agentic solution for automated testing that orchestrates evidence, attribute and testing agents to automate manual workflows with full traceability. This new GRC offering expands sampling risk coverage and testing capacity for our customers without additional manual effort.

Third, we launched three new agentic offerings that marked the beginning of Okefa's expansion into a broader universe of regulatory obligations.

With these new solutions, we see a growing opportunity to expand our role in managing our customers' increasingly complex regulatory work. This is reinforced by strong early engagement from both customers and partners.

This opportunity is already translating into as demonstrated by a Q3 win for our new agentic regulatory solutions.

A global American healthcare corporation expanded their 15-year Workiva partnership in a multi-six-figure deal. They added all three of our new agentic regulatory solutions to their existing seven solution footprint.

This customer is facing complex Bureau of Economic Analysis and country-by-country reporting across more than 200 entities. They're now moving towards standardizing their manual processes on our platform, turning ad hoc compliance in automated end-to-end agentic workflow.

The alignment between customer value, platform innovation, and our monetization model is clearly reflected in our deal execution.

Our customer wins from Q3 provide meaningful insight into our business, highlighting how organizations are turning to Workiva to solve their most complex, interconnected reporting and compliance challenges.

I'd like to highlight a few Q3 deals that demonstrate our continued success as a multi-solution platform company.

First, one of the world's largest custody banks nearly doubled its spend with Workiva through a seven-figure deal that was focused on expansion across the office of the CFO. This 15-year Workiva customer expanded its platform footprint across banking, multi-entity reporting, investments, and controls management.

As part of a broader finance transformation, the firm is bringing internal management and external regulatory reporting onto Workiva. It's replacing fragmented processes with a single connected reporting environment. This deal was a co-sell and will be delivered by a Big 4 firm.

Second, we signed a high six-figure new logo deal with a large US consumer products firm preparing for its next chapter as an independent public company.

This customer purchased six solutions: SEC reporting, sustainability reporting, controls management, tax reporting, enterprise risk management, and audit management.

The purchase was driven by the need to establish a trusted, connected platform from day one, unifying reporting, controls, and risk in a single governed environment. This deal was a co-sell and will be delivered by a big four firm.

Third, we signed a mid six-figure new logo deal with one of the world's largest mining companies. The customer purchased five solutions spanning SEC reporting, controls management, sustainability reporting, management reporting, and financial statements.

The deal was driven by a broader transformation initiative to automate reporting and consolidate fragmented workflows onto a single, integrated platform.

This competitive win over legacy financial printers and financial reporting software providers highlights the differentiation of Workiva's connected, multi-solution platform. The deal was a co-sell and will be delivered by a Big 4 firm.

I'll turn now to financial reporting, where the demands on finance teams continue to evolve.

As customers leverage AI to take on more of the reporting process, the need for trusted data, governance, and traceability only increases. This shift plays directly to Workiva's strengths in delivering accurate, governed, and fully traceable financial reporting.

Here are a few notable Q3 deals that illustrate this momentum.

First, a global consumer goods company signed a high six figure deal for multi-entity reporting and sustainability reporting. The company is executing a multi-year finance transformation that includes migrating to SAP S/4HANA, standardizing processes across global markets, increasing automation and AI adoption, and improving its ability to respond to evolving compliance requirements.

As part of this transformation, this company is bringing more than 200 entities onto Workiva's multi-entity reporting solution, while at the same time expanding its use of sustainability reporting across the organization. The deal was sourced and will be delivered by a regional advisory firm.

Second, a UK-based packaging company landed as a new customer with a mid six-figure deal spanning three solutions: ESEF reporting, SEC reporting, and sustainability reporting.

With reporting obligations across both Europe and the US, the company selected Workiva to consolidate its reporting processes on a single connected platform, to improve reporting visibility, and to support requirements across multiple regulatory frameworks.

This was a competitive win over a financial printer. The deal was sourced and will be delivered by a big four firm.

Third, a leading global asset manager signed a mid six-figure expansion deal. This 11-year customer added multi-entity reporting and investment reporting while expanding its use of controls management. The expansion is part of a broader finance transformation that's focused on replacing fragmented manual reporting processes with a single connected platform.

Through a direct integration with the company's ERP, the customer is establishing a trusted governed data hub on Workiva that supports reporting across the organization. This deal was a co-sell and will be delivered by a Big 4 firm.

Let's move on now to financial services.

Banks, insurers, and asset managers operate in highly complex regulatory environments. From Pillar 3 filings to reporting across thousands of investment funds, institutions are moving beyond legacy systems and manual processes. They're turning to Workiva to automate and modernize how regulatory reporting gets done.

Here are a few deals from the quarter in this vertical.

First, a top 20 global bank signed a high six-figure expansion deal as part of a finance transformation project. The customer added our advanced SEC and ESEF reporting solutions and expanded its use of Workiva to support Basel Pillar 3 regulatory reporting.

This was a competitive win over a legacy on-premise financial printer solution. The result is further consolidation of critical financial and regulatory reporting workflows on the Workiva platform. The deal was sourced and will be delivered by a Big 4 partner.

Second, a privately held diversified financial services company signed a mid six-figure expansion deal. This existing customer expanded into investment reporting and insurance reporting. The expansion was driven by a company transformation project.

The goal is to standardize reporting on a single platform alongside a broader ERP migration. By automating more of the regulatory processes, the customer is leaning on Workiva to improve efficiency and create a consolidated view across the enterprise.

The deal was a co-sell and will be delivered by a Big 4 firm.

Turning now to governance risk and compliance.

Demand across our GRC portfolio remains strong as enterprises accelerate vendor consolidation. Chief audit executives are actively replacing incumbent single-purpose GRC tools with Workiva's unified platform. By managing audit workflows, controls, and risk management in the same environment as core corporate reporting, our customers achieve continuous audit-ready assurance while driving out the cost of legacy point solutions.

Here are a couple of our Q3 GRC wins.

First, a Fortune 100 technology company signed a high six-figure expansion deal for audit management, compliance management, controls management, and policies and procedures. This longtime financial reporting customer is replacing a manual supplier risk assessment process with Workiva's connected GRC platform.

This was a competitive win over a GRC point solution. The deal was sourced and will be delivered by a Big 4 firm.

Second, a global agricultural solutions business signed a mid six-figure expansion deal for eight solutions. Audit management, compliance management, controls management, operational risk management, policies and procedures, global statutory reporting, carbon and sustainability.

The primary driver was replacing manual Excel-based workflows with a single integrated reporting process across its global entities and sites, all on the Workiva connected platform.

Following competitive RFP, Workiva was selected over a European consolidation and reporting software provider.

Next, I'll turn to sustainability.

Workiva is well positioned in sustainability because these disclosures are increasingly demanding the same rigor as financial reporting, trusted data, strong controls, clear lineage, and assurance readiness.

And as sustainability becomes more integrated with regulatory reporting, responsibility is moving closer to the office of the CFO.

As organizations take a pragmatic multi-year approach to meeting these evolving expectations, the value of Workiva's unified platform is clear. Workiva brings financial and sustainability reporting together on one governed platform. Giving organizations the control and the transparency to manage complex multi-entity requirements as they evolve.

I'll highlight a few of our Q3 sustainability deals.

First, a European retailer landed as a new customer with a mid six-figure new logo deal. This customer purchased ESEF reporting and sustainability reporting. To proactively prepare for the upcoming CSRD and ESRS requirements.

Workiva displaced manual office-based workflows and a sustainability point solution, demonstrating the value of a single connected platform for financial and sustainability reporting. The deal was a co-sell and will be delivered by a Big 4 firm.

Second, a global finance and development institution signed a multi six-figure expansion deal for sustainability reporting. The institution has a well-established sustainability and emissions reporting program with greenhouse gas disclosures dating back to 2006.

It reports across several globally recognized frameworks, including GRI, ISSB, and TCFD. And it's now preparing for California's climate disclosure requirements.

As these reporting demands expand, the customer has doubled its spend with Workiva, extending sustainability reporting across multiple entities on our platform. The deal was a co-sell and will be implemented by a regional advisory firm.

Finally, let's close with Capital Markets, where we were pleased to support several IPOs in Q3, including Lime, Braveheart, and Orion180. And in recent weeks, we supported one of the most high-profile S1 filings to date as one of the world's leading frontier AI companies prepares for their public debut.

For Workiva, the opportunity extends well beyond IPO. We often engage with high-growth private companies one or two years before they go public, establishing the trusted data foundation and the audit-ready controls required for public company reporting.

By the time a customer files its S1, Workiva is already embedded in their critical workflows, creating a natural expansion path into SEC reporting, controls management, multi-entity reporting, and other solutions as they scale.

Beyond IPOs, our capital market solutions also support customers through complex M&A transactions.

In Q3, a 14-year platform customer expanded its investment in Workiva with a high six-figure deal to support a transformational business combination and the preparation and the assembly of their S4 disclosures.

For complex M&A, Workiva brings critical transaction work streams into a single audit-ready environment, helping customers prepare transaction filings, manage SEC review cycles, and accelerate deal execution. This win demonstrates how high-stakes corporate events can create significant expansion opportunities across our customer base.

Looking across financial reporting, GRC, sustainability, and our recently launched regulatory solutions, we remain confident in the long-term opportunity across our portfolio.

Enterprise software is evolving from supporting and automating processes to actively executing more of the work. That shift plays directly to Workiva's strengths, trusted data, deeply embedded workflows, enterprise-grade governance, and a platform built for the complex, high-stakes work of the Office of the CFO.

We believe this evolution expands the value we can deliver to customers, and importantly, the opportunity within our existing customer base.

As our platform takes on more of these critical processes, we have more ways to deepen customer relationships, expand adoption, and drive durable growth at scale.

I'd like to thank our employees around the world for their focus and execution in a rapidly evolving market. And I'd like to thank our customers and our partners for their trust and collaboration.

With that, I'll now turn the call over to Barbara to review our third-quarter financial results and fourth-quarter outlook.

Thanks, Julie. I'll begin by walking through our third-quarter financial results and key metrics, then share our guidance for the fourth quarter and full year 2026. We saw steady execution across the business in Q3, with broad-based demand across our solution portfolio.

Total revenue for the quarter was $263 million, up 17% year over year and exceeding the high end of our guidance by $1 million. Foreign currency fluctuations were a modest headwind to our reported top-line growth rate, in line with expectations.

Looking at the composition of our revenue. Subscription revenue totaled $246 million, up 17% year over year. Our growth continues to reflect a healthy balance between landing new logos and expanding within our installed base.

In line with expectations, new customers added in the last 12 months drove 48% of the net new subscription revenue added in Q3.

As of quarter end, current remaining performance obligations reached $818 million, up 17% year over year. That represents the subscription revenue we expect to recognize over the next 12 months, and the growth rate includes an approximately 1 percentage point headwind due to foreign currency.

On the services side, professional services revenue was $17 million, up 15% versus the prior year, driven by outperformance in XBRL services.

Turning to profitability and operating performance, our non-GAAP operating margin for the third quarter was 18.3%. This exceeded the high end of our guidance by 85 basis points. And was a 560 basis point improvement over Q3 2025.

Our margin expansion was driven by top-line outperformance and continued operational discipline, including productivity gains across the business.

Moving down the P&L to net income and earnings per share.

Beginning in Q3, we're applying an effective tax rate of 22% to our non-GAAP results, reflecting our sustained profitability.

In prior quarters, our non-GAAP results incorporated our GAAP tax expense, which was relatively nominal. On this new basis, non-GAAP net income was $41 million, up 55% year over year. And non-GAAP net income per diluted share was $0.72, up from $0.46 in Q3 last year.

Our prior guidance did not assume this 22% tax rate. To help with your models, our press release and investor presentation recast prior quarters at the new rate. This change affects non-GAAP presentation only. It has no impact on actual cash taxes, cash flow, or our GAAP results.

On a GAAP basis, net income for the quarter was $19 million, up from $3 million in Q3 last year. And GAAP net income per diluted share was $0.35, up from $0.05 a year ago and $0.10 above the high end of our guidance range.

Moving on to our performance metrics for the quarter. We closed Q3 with 6,840 customers, representing a net increase of 299 customers compared to the third quarter 2025.

Our gross retention rate remained 97%, once again exceeding our 96% target, and our net retention rate for the quarter was 110%. Consistent with our top-line results, we experienced a modest headwind from foreign currency.

Our multi-solution expansion strategy also continues to show up in our revenue mix. In Q3, customers with multiple solutions represented 77% of subscription revenue, up from 73% in Q3 2025.

We also saw continued strength across our large contract customer cohorts. As of the end of the third quarter, we had 2,853 contracts valued at over $100,000 per year, up 20% year over year.

Contracts valued at over $300,000 totaled 708, up 31% over the prior year. And contracts valued at over $500,000 reached 283, up 20% from Q3 2025.

Next, let's review our balance sheet and cash flows.

As of September 30, 2026, cash equivalents, and marketable securities were $817 million, an increase of $2 million over the second quarter. The primary use of cash this quarter was a settlement of our convertible notes due in August for $71 million in cash.

Additionally, we repurchased 32,624 shares of our Class A common stock for $2 million. That's a more measurable pace than recent quarters as we prioritize the paydown of our convertible debt obligation.

As of quarter end, we have repurchased a total of $246 million under our $350 million share repurchase program, with $104 million remaining as we entered the fourth quarter.

Moving on to guidance. Our guidance assumes a slight year-over-year FX headwind to projected revenue growth in Q4.

With that in mind, for the fourth quarter of 2026.

We expect total revenue to range from $275 million to $278 million. We expect services revenue to be up slightly compared to Q4 2025. And we expect non-GAAP operating margin to be in the range of 19% to 19.5%. For the full year 2026, we expect total revenue to range from $1.041 billion to $1.044 billion.

We continue to expect subscription revenue to grow approximately 19% year over year. And we expect total services revenue to be up moderately year over year.

We are raising our non-GAAP operating margin outlook by 25 basis points at the midpoint compared to our prior guidance, and now expected to be in the range of 18.2% to 18.3%.

At the midpoint, this represents an 835 basis points improvement year over year, reflecting our continued focus on driving operating leverage as we scale.

Finally, we continue to expect our free cash flow margin to be approximately 21% for the year.

To conclude, our third quarter results reflect another quarter of disciplined execution against our plan. As we close out 2026, our team is focused on capturing our Q4 opportunity, which is seasonally our largest bookings quarter, and delivering on our full year outlook.

We look forward to sharing our formal 2027 outlook on our next call in February.

As I shared at our Investor Day in September, top-line growth and expanding profitability are not competing priorities at Workiva. They reinforce each other.

We will end 2026 as a profitable billion-dollar platform, confident in our multi-year trajectory and path toward our 2030 targets.

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

(Operator Instructions) Rob Oliver, Baird.

Great. Thank you, guys, very much for taking the questions. Good afternoon. A couple of questions for me, I guess. First, just looking at the numbers, solid quarter, solid execution.

Just looking at the outlook a little bit and some of the guidance for Q4, you guys did not pass through the full beat. And I know Q4 is a big quarter, an important quarter for you guys. Just wanted to understand a little bit the thought around that decel on the top line, and then I had a follow-up as well.

Hi, Rob, and thank you for the question. First, thanks for highlighting our strong quarter. We did beat the high end of our guidance, both on revenue and op margin, and we do see demand remaining strong, and we're tracking to 2026 guidance in our 2030 targets. We have seen a couple of tailwinds subside, specifically FX and sustainability in Barbara can talk a little bit more about the impact of these on our metrics.

But the underlying fundamentals of the business do remain strong and are performing as expected. Our long-term multi-solution growth drivers just remain solid. Our differentiators are stronger than ever and we are continuing to focus on disciplined execution.

Barbara, if you want to comment.

Hi, Rob, and thanks, Julie. Let me just add a little bit more color on both sustainability and FX. Sustainability bookings were very strong at the end of 2024 and that drove strong revenue growth through 2025. As that sustainability demand has moderated over the past year plus, that tailwind has faded and you're seeing that now affect our revenue growth. So this is nothing new, it's a dynamic we've discussed.

For several quarters, and it's already reflected in our 2026 outlook. In addition, we had FX tailwinds in Q2 2025 through Q1 of this year that have now subsided. And our Q3 results, as well as our Q4 guide, reflect a modest FX headwind.

But as Julie said, our multi-solution growth drivers are solid. Our 2026 guidance remains intact, and we're confident in our 2030 targets.

Okay, great. Thank you. That's helpful.

And on the 2030 targets as well. And then I know, Barbara, you've said that the calculated billings number can bounce around for you guys, so I'm hesitant to ask. It was just a little bit over 10%, just wanted to see in conjunction with what you've said if there's anything to call out there.

Thanks for the question. You're right, Billings in particular is a noisy metric that fluctuates based on things like invoicing schedules, renewal timing and FX. And this quarter, it was impacted by two specific things. The first is we lapped a large eight-figure upfront payment on a contract in Q3 of last year. So that was largely an invoice timing dynamic.

And then in addition, we have a slight headwind from FX this quarter. So if you adjust for both of those, underlying calculated billings growth was closer to 15%.

And given that's a noisy metric, that's why we point to CRPO growth as a better indicator of future subscription revenue growth. It normalizes for that multi-year payment structure, contract duration, and it grew by approximately 18% in constant currency this quarter.

Alex Sklar, Raymond James.

Great. Thank you. Julie, maybe first one for you. You announced a lot of new AI and agentic functionality at Amplify. Some of the products like Agent Studio seem to increase the value of other solutions like WData and your connectors.

Does that change how you're approaching kind of these Q4 renewal period, just being more aggressive around advanced packaging?

Sure. I'll first start out with, if I may, going back to maybe how we're monetizing AI. And thank you for the question.

As a reminder for everyone on the call, we are not seat-based. We price for value, company size, complexity, usage, number of controls or data integration entities. And the way we're monetizing AI capabilities, including now our MCP gateway and. In our Agent Studio fall into one of these two categories.

First, we've got monetization around advanced solution-specific AI capabilities, which we're monetizing through the premium tiers of our good, better, best monetization framework.

But the second one is for our new Agentic solutions like Agent Studio. And those are around also things like GRC automated testing. New regulatory solutions and so forth. And for those who are just using our proven value-based pricing, same approach we go to market with financial reporting and GRC and sustainability.

So you asked specifically about how that might impact renewals. These are additional capabilities. And offerings that we can sell at renewal time and any time during the year, but yes, absolutely expansion opportunities for both.

And that I will say the agent studio and MCP gateway, that one is being put as a SKU for a new builder package that we are offering. And we expect that builder SKU to become just one of the many growth levers that we offer our customers. So builder SKUs price like any of other solutions based on customer size and complexity and usage.

So they'll be able to use their data, their technology of choice, whether large language models in their technology ecosystem or ours, but regardless, we will be able to provide those offerings at renewal time, yes, and we will, of course, be aggressive in offering our customers any capabilities that will increase the value of the WorkEtha platform to them so they can get more value.

Great.

Barbara, maybe a quick follow-up for you. On the growth outlook, just on top of Rob's question, you called out an incremental FX headwind for Q4. Can you provide any color on sizing of that? Is that incremental to what you had previously guided to last quarter or what was already reflected in the outlook?

Last quarter, we talked about having minimal impact. What I'll say for this quarter is it's now a modest headwind for Q3 and Q4.

All right. Thank you both.

Thank you.

Terry Tillman, Truist.

Hi, Julie, Barbara, and Katie. Thanks for taking my two questions.

The first question is kind of a question on the competitive landscape, which is -- love an update in terms of whether you're seeing any pressure from just AI disruption like in the boardroom or with decision makers or specifically any AI startups trying to play in some of the markets you serve.

And then I had a follow-up.

I completely understand the question and I'm just going to be very clear on this one at the outset that we are not seeing signs of disruption from AI in start-ups. I mean, we view AI, of course, as a growth opportunity, not just to help us move faster and innovate more rapidly for our customers not just to do more work for those customers and make their work easier, but really, importantly, AI makes our platform's value proposition even stronger.

In the office of the CFO, in high-stakes work, accuracy, control, and auditability are the non-negotiable, and it's even more so now in the prevalence of AI. A platform that provides that trusted data that is traceable and defensible and audit ready, just giving customers the confidence to embrace AI and apply it to their critical reporting processes.

Now you mentioned just in general the landscape, I think in terms of the competition we see. We continue to see the same point solutions there, same cast of characters, but they're not a platform like Workiva, which again becomes very important when you're talking about trusted data in the platform.

So I think on the call I highlighted many of the customer examples that we were winning. And we're winning because of these earned advantages that we have. But also because AI makes these advantages even more valuable.

And the one thing I'll say because you brought up AI startups, I mean, it's a very important thing to highlight is that it's not a choice between Workiva and AI. I mean, when you choose Workiva, you're choosing an innovative AI first platform.

And you put that with the earned advantages that we have, the trust, traceability, auditability with the core of the platform, our experience, extensive experience in regulatory, our tremendous distribution with over 6,000 enterprise customers. That already trust us to do a lot of their high stakes regulatory work.

These are these earned advantages, and we feel very confident in our ability to compete and win in the market because it's the combination of our platform, Agentic First, and also, of course, these significant earned advantages.

So thank you for that question.

Thank you for the answer. And I guess maybe just a follow-up. I think, Barbara, you mentioned earlier, I think 48% of growth is coming from new customers, maybe on the subscription side. Hopefully, I've got that right.

I want to get into the good, better, best kind of pricing strategy that you guys have, particularly with being able to leverage some of the higher-value agentic and AI solutions kind of moving up that stack of the premium versions.

Are you seeing any kind of differences with new customers maybe coming in at the highest version or are you seeing more of the -- going with the best, more around the renewals with the installed base?

Thank you.

So on the good better, I'll take that one. We're actually seeing it in both motions. So it is. A lever, the moving kind of up the tiers is a lever for both expansion with our existing customers, and we're seeing success there, but also in terms of landing. And you did have that number right, 48% of our revenue, subscription revenue growth in Q3 was from new logos.

And so landing larger is part of that. We've got customers landing larger with more solutions, but they're also at the higher tiers as well. So it's benefiting both of those growth drivers, new as well as expansion.

Dan Jester, BMO.

Great. Hi. This is Will Hancock on for Dan Jester. Appreciate you taking our question here.

One on demand first. Could you comment on some of the trends you're seeing in the US versus anything internationally? And specifically, are there any notable differences you're seeing in customer spending or willingness to move forward with larger commitments?

I will say, and thank you for the question, overall, demand environment remains relatively consistent through the year. We just continue to see demand across the portfolio, whether it's account markets, multi-entity reporting, GRC, many of our other solutions. I mean, I'll say this, that for those of you who are not as familiar with the story, our primary market is the large enterprise market. It's got 90% of the Fortune 500. So this is a durable segment.

These customers have reporting requirements. I mean, they're regulated, incredibly complex, and it's really expensive if they get it wrong. So the demand for our platform. The trusted, traceable, auditable data, it doesn't fluctuate.

It doesn't go away, up, down. It is a steady market. But the things that are resonating in the market and whether it's here, whether in US, whether it's Europe, we're selling with the platform.

We're going after new logos. We're expanding an account. We're leveraging our partners. We're, of course, leveraging AI to move faster and expand the market with offerings like regulatory. So we don't see a difference today in the demand environment. We're moving with the same tactical and strategic actions and seeing it resonating in the market.

Great. I appreciate that color. And then for my follow-up, to dive into capital markets quickly, could you talk about how activity is tracked this year relative to your expectations? And then also it'd be great if you could remind us what was embedded in the guidance.

I will hand the guidance over to Barbara, but I will start in here with the capital markets and appreciate the question on this market. IPO market for us remained active and strong in Q3 supported a number of IPOs, including the Lyme, Braveheart, and Orion 180.

And let's see, in recent weeks, we did support one of the world's leading frontier AI companies with their very high profile F1 filing as they prepare for their IPO.

And I will say it's worth noting again this quarter, even the companies at the forefront of AI. They rely on Workiva when, again, accuracy, control, and public market scrutiny really matter.

Another thing I'd must call out on the capital markets is we've expanded our cap markets offering to include M&A. In my prepared remarks, I did highlight a Q3 win for us. It was a high six-digure deal with a US consumer product company. It was to support a merger and preparation and assembly of their S-4 disclosures.

We found that S-4 follows a very similar pattern to S-1 in its preparation. Both large, complex SEC registration requirements really require numbers and narratives and audit and investor scrutiny.

Capital markets continued to be, again, strong this quarter. And I think, Barbara, I can hand off to you with some numbers.

Yeah, I'll follow-up on the guide question. So we've said since the beginning of this year that we're incorporating capital markets into our guidance. We can't always predict the timing of when companies will go public, but we've seen, as Julie said, healthy demand for capital markets since Q3 of last year and this quarter was in line with our expectations.

Great. Thank you, both.

Thank you.

Brett Huff, Stephens.

Thank you, and good evening to you, everybody. Thanks for the time. Can you talk a little bit I'm always reminded when you all give us the list of kind of high-profile wins. I'm not sure if there's any one of those that wasn't delivered without the channel.

And so combining sort of how you're thinking about the channel or how you're seeing the channel act vis-a-vis AI and how they're trying to push that, has their behavior changed at all, gotten more aggressive around certain things, brought you in different environments?

Talk about the channel and AI and how you all are working together and if that's changed any of their motion.

Sure, and thank you for the question highlighting our partner ecosystem. We are very committed to our partner ecosystem. We co-sell together. We win more, broader, higher, get higher in an organization. So it's something we do invest in. There have been changes, of course, as you can imagine.

Billable hours have changed with these consulting and advisory companies. So they are finding new ways of working and we are finding new ways of working with them.

We are rolling out capabilities for them and I'll go back to the Agent Studio and CP Gateway that we just spoke about a few moments ago. These are ideal for our customers because they can our customers and our partners because they can work with the customers to build agents on our platform using Studio. They can help them go agent to agent with our MCP gateway, a lot of expertise required around the data.

Think about our regulatory work that we're rolling out also, a lot of expertise with our partners there in some of the verticals that we are and will be continuing to go deeper in. So we look at those partners as a win-win for our customers and for each other. So lots of new opportunities for us.

They are wanting to provide capabilities for the customer and services, and they can leverage the work even platform to move more quickly and help. The customer ensure that the data that's being used and their outcomes are again traceable, defensible and auditable.

Thank you. Quick follow-up, kind of a combination of talking about the good, better, best question that was asked before and also prosecuting the cross-sale of the really big SEC reporting base. Can you give us any qualitative, quantitative.

Thoughts about how many contracts have renewed or percentage of them or anything like that now that we're using the good, better, best regime and/or a similar, I guess, metric or thought on how many of the kind of single product buyers in the SEC reporting have moved to more than one product.

I mean, we view both of those groups as really vital growth areas. So wondering if there's any qualitative or quantitative angle you can give us on those?

Thank you for a good, better, best model and monetization framework. We've now rolled it out to a number of our solutions across our portfolio and we are landing with it and we're doing renewals and customers are upgrading. We did disclose not too long ago that we've seen north of 20% uplift in our SEC, where we've really had it out for any measurable time. That's the solution we started with.

But we're still in early days, very pleased with the traction, and customers are upgrading and landing with the premium tier. So it's, again, early days, but we've seen a lot of momentum.

Patrick McIlwee, William Blair.

Julie, Barbara, thanks for sneaking me in here.

Julie, so you highlighted a number of larger wins this quarter that were tied to broader finance transformations as well as ERP migrations and you referenced S/4HANA specifically. My question is, are you seeing that become more consistent catalyst for deal flow and adoption or still pretty steady state?

And when you do see those deals, is there any correlation to size with those? Do they translate into larger initial contracts or pretty balanced land and expand opportunities over time?

Yes, I appreciate that question. I did highlight a couple deals that were around an ERP transformation. And that has been pretty steady state for us. We like to get in the playbook with our big four consulting advisory partners when they are doing a transformation or an upgrade. It's a great opportunity for us to come in and help the customer consolidate ERP, legacy ERP systems from around their company and various entities.

And it's also a time for us to come in and help on the disclosure management. So really good opportunities. Partners primarily bring us into those deals. We like coming in as early as possible for the reason that you just described to get in and do our multi-solution plays.

So yes, they're typically larger customers and the good news is they don't have the disclosure management and multi-entity reporting. So we come in and help to put those in place and provide that, but steady state, I would say.

Understood. Thank you. And you highlighted quite a few multi-solution, sizable multi-solution wins this quarter. And don't mean to pick on what were pretty good results here, but it looks like growth in the $500,000-plus contract cohort moderated a decent bit sequentially this quarter.

I know expansion of those strategic accounts is a key focal point for you also. Is that just some quarterly lumpiness and larger transactions or are you seeing any change in the pace at which customers are moving into those higher ACV tiers?

Yeah, thanks for the question. As we mentioned, we did have a couple of tailwinds that subsided, and that presents itself in various ways. But that said, we're still very pleased with the strong results in all of our large customer cohorts grew at 20%-plus. So we're really pleased with that.

Okay, great. Thank you.

Thank you.

And with that, ladies and gentlemen, we'll be concluding today's question-and-answer session as well as today's conference call and presentation. We do thank you for joining. Have a great rest of the day. You may now disconnect your lines.