Q2 2026 Workiva Inc Earnings Call

Speaker #1: And will be provided at this time. Please note this call is being recorded on August 4, 2026, at 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.

Speaker #1: I think our only challenge—the only challenge I see—is if, for whatever reason, we end up with snow coming in early. But outside of that, we think it should follow our sort of standard quarterly flow and cadence.

Speaker #1: Please go ahead.

Speaker #2: 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.

Speaker #1: So that shouldn't really be any different.

Speaker #5: All right. Got it. Thanks. Good quarter. Pass it on.

Speaker #1: Thank you.

Speaker #2: 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.

Speaker #2: Our next question comes from Andrew Carter with Stifel. Please go ahead.

Speaker #6: Hey, thank you. Good evening. I wanted to better understand kind of the issue you had during the quarter with the ramp-up. Is it was it all about planning because ideally, you're going to go to a world that pools start growing low single digits or some people are right mid single digits.

Speaker #2: 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.

Speaker #6: Does this say anything about kind of your future ability to capitalize on tidal wave of demand or anything else? Or was this just truly a planning for this year, therefore isolated this?

Speaker #2: 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.

Speaker #6: Doesn't say anything about the network demands.

Speaker #1: Thank you, Andrew. Good question. I'll start with the ramp-up was certainly more extreme than what we've seen in the past. So it really is a planning issue.

Speaker #2: 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.

Speaker #1: I will tell you as I've Go ahead.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: With that, we'll begin by turning the call over to Workiva's CEO, Julie Iskow.

Speaker #3: 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.

Speaker #3: We beat the high end of our revenue guidance with 19% growth in both subscription revenue and total revenue. We also continued to execute on our commitment to profitable growth, achieving a Q2 non-GAAP operating margin of 16.8%.

Speaker #3: This was a 180 basis point beat on the high end of our guide, and a 1300 basis point improvement compared to Q2 of last year.

Speaker #3: 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.

Speaker #3: 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%.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: This isn't a one-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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #1: This call 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: We beat the high end of our revenue guidance with 19% growth in both subscription revenue and total revenue. We also continued to execute on our commitment to profitable growth, achieving a Q2 non-GAAP operating margin of 16.8%.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #2: This margin milestone reflects discipline 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.

Speaker #3: 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.

Speaker #2: This isn't a one-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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: First, we signed a mid-six-figure account expansion deal with a global digital banking and fintech leader, for private company reporting, multi-entity reporting, connected bank reporting, and sustainability.

Speaker #2: Our customers shouldn't have to assemble AI models, agents, 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.

Speaker #3: The bank is on a multi-year 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 3 regulatory compliance.

Speaker #2: 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.

Speaker #3: Second, we signed a multi-six-figure new logo deal with the US-based global material science company. The customer purchased four solutions. SEC reporting, management reporting, controls management, and sustainability.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: It's what our customers are asking for, and it's what we're building. We believe no one is better positioned to deliver it than Workiva.

Speaker #3: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #3: Here are a few of the many Q2 wins worth highlighting. First, we signed a mid-six-figure new logo deal with the US-based global government and defense technology services company.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: First, we signed a mid-six-figure account expansion deal with a global digital banking and fintech leader for private company reporting, multi-entity reporting, connected bank reporting, and sustainability.

Speaker #2: The bank is on a multi-year 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 3 regulatory compliance.

Speaker #3: Second, we signed a mid-six-figure expansion deal with the US regional bank. This loyal customer upgraded to our advanced tiers for both SEC reporting and sustainability.

Speaker #2: Second, we signed a multi–six-figure new logo deal with a U.S.-based global material science company. The customer purchased four solutions: SEC reporting, management reporting, controls management, and sustainability.

Speaker #3: And the expanded across three additional solutions, tax reporting, living will, and stress testing. The primary catalyst for this expansion was the bank's reclassification as a category three institution.

Speaker #3: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #3: 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 six-figure account expansion deal with a large global private equity firm, for fund reporting.

Speaker #2: 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.

Speaker #3: 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 six months, they have more than tripled the number of funds supported by the platform, and they now spend more than $1 million with Workiva.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: Here are a few of the many Q2 wins worth highlighting. First, we signed a mid-six-figure new logo deal with a U.S.-based global government and defense technology services company.

Speaker #3: Second, a Big Four professional services firm operating in Europe's largest investment fund market signed a mid-six-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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #3: This expansion enables the firm to consolidate reporting processes onto Workiva, driving greater standardization and scalability at its business growth. Next, I'd like to cover governance risk and compliance.

Speaker #3: 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.

Speaker #2: Second, we signed a mid-six-figure expansion deal with a US regional bank. This loyal customer upgraded to our advanced tiers for both SEC reporting and sustainability.

Speaker #3: Organizations are choosing Workiva to centralize enterprise risk, transform audit and controls, and streamline compliance. With AI embedded across our GRC platform, including our flowchart visualizer and GRC intelligence agents, we help teams identify emerging risks faster, uncover patterns earlier, and respond with greater confidence.

Speaker #2: And the expanded across three additional solutions: tax reporting, living will, and stress testing. The primary catalyst for this expansion was the bank's reclassification as a category three institution.

Speaker #2: 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.

Speaker #3: Let me share a few Q2 GRC deal highlights. First, we signed a mid-six-figure account expansion with the Fortune 500 specialty insurance holding company. This company added multiple solutions, including enterprise risk, compliance management, and management reporting.

Speaker #2: 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 six-figure account expansion deal with a large global private equity firm for fund reporting.

Speaker #3: Three years ago, this customer had just two Workiva solutions, totaling just over $100,000. Today, they have expanded to nine platform solutions, spending high six-figures annually with Workiva.

Speaker #2: 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 six months, they have more than tripled the number of funds supported by the platform, and they now spend more than $1 million with Workiva.

Speaker #3: 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.

Speaker #3: The opportunity also displaced a standalone GRC point solution, further reinforcing the value of a connected platform. Second, we signed a multi-six-figure expansion deal with the US Farm Credit Bank to build and scale its GRC program across audit management, controls management, compliance management, enterprise risk, and operational risk management.

Speaker #2: 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.

Speaker #2: Second, a Big Four professional services firm operating in Europe’s largest investment fund market signed a mid-six-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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #2: This expansion enables the firm to consolidate reporting processes onto Workiva, driving greater standardization and scalability as its business grows. Next, I'd like to cover governance, risk, and compliance.

Speaker #3: 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.

Speaker #2: 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.

Speaker #2: Organizations are choosing Workiva to centralize enterprise risk, transform audit and controls, and streamline compliance. With AI embedded across our GRC platform, including our flowchart visualizer and GRC intelligence agents, we help teams identify emerging risks faster, uncover patterns earlier, and respond with greater confidence.

Speaker #3: That's changing buying behavior. Standalone sustainability solutions are no longer enough. Increasingly, customers are choosing Workiva as the unified platform to manage financial and non-financial reporting together, using the same trusted data, governance, and reporting processes.

Speaker #3: Our deal activity reflects this trend. Our largest sustainability wins almost reporting solutions, whether that's ESEF for integrated reporting, SEC reporting for US filers, or increasingly multi-entity reporting.

Speaker #2: Let me share a few Q2 GRC deal highlights. First, we signed a mid-six-figure account expansion with a Fortune 500 specialty insurance holding company. This company added multiple solutions, including enterprise risk, compliance management, and management reporting.

Speaker #3: And the business driver is straightforward. Companies reporting under CSRD, ISSB, California's SB253, and other sustainability reporting requirements are often large multinational organizations with complex legal entity structures.

Speaker #2: Three years ago, this customer had just two Workiva solutions, totaling just over $100,000. Today, they have expanded to nine platform solutions, spending high six-figures annually with Workiva.

Speaker #3: They need trusted data, consistent governance, and reporting processes that span both financial and non-financial information. This is where Workiva is differentiated. We are uniquely positioned to bring these reporting processes together, in a single, trusted platform.

Speaker #2: 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.

Speaker #2: The opportunity also displaced a standalone GRC point solution, further reinforcing the value of a connected platform. Second, we signed a multi–six-figure expansion deal with a 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.

Speaker #3: Let me highlight a few sustainability deals from Q2. First, we signed a mid-six-figure new logo deal with one of Europe's largest state-owned energy companies, serving roughly 20 million customers.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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 Four firm.

Speaker #2: 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.

Speaker #3: Second, a global healthcare technology company signed a mid-six-figure expansion deal upgrading to sustainability advanced. This customer also extended sustainability across multiple entities and added multi-entity financial reporting.

Speaker #2: 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.

Speaker #3: The driver for this opportunity was ISSB compliance and the need to connect financial and non-financial data across their global legal entity structure. This was a competitive displacement of a standalone sustainability point solution.

Speaker #2: That's changing buying behavior. Standalone sustainability solutions are no longer enough. Increasingly, customers are choosing Workiva as the unified platform to manage financial and non-financial reporting together, using the same trusted data governance and reporting processes.

Speaker #3: 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.

Speaker #3: We supported a robust slate of public listings this quarter. Three in particular reflect the breadth and the caliber of organizations that are choosing Workiva as they enter the public markets.

Speaker #2: 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 US filers, or increasingly multi-entity reporting.

Speaker #3: SpaceX, one of the most complex and closely watched listings in market history. Cerebras, a leader in AI infrastructure. And Quantinuum, at the forefront of quantum computing.

Speaker #2: In the business driver is straightforward. Companies reporting under CSRD, ISSB, California's SB253, and other sustainability reporting requirements are often large multinational organizations with complex legal entity structures.

Speaker #3: 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.

Speaker #2: They need trusted data, consistent governance, and reporting processes that span both financial and non-financial information. This is where Workiva is differentiated. We are uniquely positioned to bring these reporting processes together in a single, trusted platform.

Speaker #3: The capital markets opportunity for us extends well beyond the S1. 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.

Speaker #2: Let me highlight a few sustainability deals from Q2. First, we signed a mid-six-figure new-logo deal with one of Europe's largest state-owned energy companies, serving roughly 20 million customers.

Speaker #3: That early engagement matters. When these companies file their S1, 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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 Four firm.

Speaker #2: Second, a global healthcare technology company signed a mid-six-figure expansion deal upgrading to sustainability advanced. This customer also extended sustainability across multiple entities and added multi-entity financial reporting.

Speaker #3: 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.

Speaker #3: 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.

Speaker #2: The driver for this opportunity was ISSB compliance and the need to connect financial and non-financial data across their global legal entity structure. This was a competitive displacement of a standalone sustainability point solution.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: We supported a robust slate of public listings this quarter. Three in particular reflect the breadth and the caliber of organizations that are choosing Workiva as they enter the public markets.

Speaker #3: These are not general-purpose AI tools. They are purpose-built agents designed for environments where accuracy, auditability, and explainability are non-negotiable. And every output produced is built to withstand scrutiny.

Speaker #2: SpaceX, one of the most complex and closely watched listings in market history. Cerebras, a leader in AI infrastructure. And Quantinuum, at the forefront of quantum computing.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: Peer intelligence is no longer a separate workstream. It's embedded in the location where the disclosures are built. Alongside these purpose-built agents, we've recently introduced the Workiva MCP Gateway, a governed connectivity layer that extends the Workiva platform to the enterprise AI tools that organizations already use.

Speaker #2: 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.

Speaker #3: With their 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: These are not general-purpose AI tools. They are purpose-built agents designed for environments where accuracy, auditability, and explainability are non-negotiable. And every output produced is built to withstand scrutiny.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #2: Peer intelligence is no longer a separate workstream. 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #2: With their 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #2: 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.

Speaker #3: 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.

Speaker #1: 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.

Speaker #2: 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.

Speaker #1: 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.

Speaker #2: 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.

Speaker #1: 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 four quarters, where reported results included a 1 to 2-point tailwind from foreign currency fluctuations.

Speaker #2: 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 it continuously updated library of regulatory guidance.

Speaker #1: 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.

Speaker #2: 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.

Speaker #1: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #1: 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%.

Speaker #2: 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.

Speaker #1: 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.

Speaker #2: 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.

Speaker #1: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #1: Our gross 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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 four quarters, where reported results included a 1 to 2-point tailwind from foreign currency fluctuations.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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 one percentage point negative impact due to foreign currency.

Speaker #1: 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.

Speaker #1: This was primarily driven by our opportunistic repurchase of $2,492,000 shares of our Class A common stock for 123 million dollars. As of quarter end, we have repurchased a total of 244 million dollars under our 350 million dollar share repurchase program, with 106 million remaining as of quarter end.

Speaker #1: 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%.

Speaker #1: 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.

Speaker #1: Moving on to guidance. For the third quarter of 2026, we expect total revenue to range from $260 to $262 million dollars. We expect services revenue to be up slightly compared to Q3 2025.

Speaker #1: 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.

Speaker #1: 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 to $1.044 billion dollars, 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: And now expected 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: The resulting outperformance means we now expect to achieve our 2027 medium-term operating margin target of full year early. And our improved productivity extends to cash flow as well.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: Moving on to guidance, for the third quarter of 2026, we expect total revenue to range from $260 to $262 million. We expect services revenue to be up slightly compared to Q3 2025.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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 to 1.044 billion dollars.

Speaker #1: With that, I'll turn the call over to the operator for Q&A.

Speaker #2: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up the handset before pressing the keys.

Speaker #1: 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.

Speaker #2: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. Your first question comes from Alex Sklar from Raymond James.

Speaker #1: 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.

Speaker #2: Please go ahead.

Speaker #3: Great. Thank you. Julie, maybe first one for you. Just on the overall demand environment and budgets broadly, can you talk about what you saw on the second quarter from a sales cycle and customer budget or deal size perspective relative to some of the prior quarters?

Speaker #1: 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%.

Speaker #3: 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?

Speaker #1: 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.

Speaker #3: Thanks.

Speaker #1: 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.

Speaker #1: There are many examples, including in sales, where we are refining our go-to-market around higher-value platform opportunities. In R&D, we have embedded AI across our teams and accelerated our speed of innovation.

Speaker #1: It's 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.

Speaker #1: And company-wide, 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 for the full year early.

Speaker #1: 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.

Speaker #1: 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 levels.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: We're entering the second half of 2026 from a position of strength, with the financial flexibility to continue investing in growth and innovation. We look forward to sharing more at our Investor Day in September.

Speaker #1: But overall, demand environment very consistent over the prior quarter, so. You also asked about our go-to-market motion. Look, that's very consistent with prior quarters.

Speaker #1: With that, I'll turn the call over to the operator for Q&A.

Speaker #1: 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.

Speaker #2: Thank you. We will now begin the question and answer session. The Oscar question you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up the handset before pressing the keys.

Speaker #2: If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2. Your first question comes from Alex Gar from Raymond James.

Speaker #1: So not those motions for us are how we've been or 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.

Speaker #2: Please go ahead.

Speaker #1: And on the deal cycles, I mean, you asked about that too. And it ebbs and flows up and down, but actually last quarter, this quarter, we saw shortened deal cycles.

Speaker #3: Great, thank you. 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?

Speaker #1: So that's very encouraging for us. So thanks for highlighting that.

Speaker #3: 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?

Speaker #3: 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, we'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?

Speaker #3: Thanks.

Speaker #1: 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.

Speaker #3: Thanks.

Speaker #1: Yeah. We are very encouraged with the traction of the premium tiers in our good better best pricing. Still early days, we just began rolling those out over the past year or so.

Speaker #1: It's 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.

Speaker #1: 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%.

Speaker #1: 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.

Speaker #1: In fact, we've continued to perform well across the portfolio in Q2 and the second half. And it's actually, for us, a really good proof point for our relevance in the market.

Speaker #1: Thanks for highlighting that too.

Speaker #1: 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.

Speaker #3: All right. Great. Thank you.

Speaker #2: Thank you. Your next question comes from Alan Bukowski from BTIG. Please go ahead.

Speaker #1: But we're very much aware of this. Being aware and being prepared makes a real difference in our execution. So it's not just in the field, but also in operations, including our legal team, who is very sales-focused and commercially and customer-focused.

Speaker #4: Hey. Thanks for taking the question. This is Nick Dannewitz on for Alan Bukowski. Just one on our end here. So we thought the subscription revenue 19% was pretty strong for a company of your size.

Speaker #4: 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?

Speaker #1: 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.

Speaker #4: Thank you.

Speaker #1: 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.

Speaker #1: But overall, demand environment very consistent over the prior quarter. So you also asked about our go-to-market motion. Look, that's very consistent with prior quarters.

Speaker #1: I mean, again, every quarter, maybe 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: So, not—those motions for us are how we've been 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.

Speaker #1: Multi-solution, multi-category. I mean, 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.

Speaker #1: And on the deal cycles and the you asked about that too. And it ebbs and flows up and down, but actually last quarter, this quarter, we saw shortened deal cycles.

Speaker #1: So it really the broad-based platform, the need, the customer need in the market is I highlighted in my prepared remarks. And of course, just our own execution getting stronger.

Speaker #1: So that's very encouraging for us, so thanks for highlighting that.

Speaker #3: 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 we've spoken to in the past, any change in adoption of those advanced packages on renewal through the second quarter, or where do you stand on penetration of those advanced packages across the base?

Speaker #1: And Barbara, do you want to?

Speaker #5: Yeah. And I'll just add one more thing in there. So international is additional growth lever for us. So like Julie said, very broad-based. We're not dependent on any single lever.

Speaker #5: Deep portfolio, new logos, expansion, and then international as well. Thanks for the question.

Speaker #3: Thanks.

Speaker #1: Yeah. We are very encouraged with the traction of the premium tiers in our goods that are best pricing. Still early days, we just began rolling those out over the past year or so.

Speaker #4: Got it. Thank you.

Speaker #2: Thank you. Your next question comes from Andrew DeGasperi from BNP Paribas. Please go ahead.

Speaker #1: 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%.

Speaker #3: Thanks. Wanted to ask a question, Julie, on the financial services opportunity and particularly the fund reporting product you highlighted for two large deals. And I'm just wondering can you elaborate a little more in terms of how that's progressing?

Speaker #1: 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.

Speaker #1: Thanks for highlighting that too.

Speaker #3: Are you seeing ramps up adoption? Is there anything that's accelerating that? And I also noticed that you mentioned North America and Europe, as driving that demand.

Speaker #3: All right. Great. Thank you.

Speaker #2: Thank you. Your next question comes from Alan Bukowski from BTIG. Please go ahead.

Speaker #3: So would love to have additional color on that.

Speaker #4: Hey. Thanks for taking the question. This is Nick Danowitz on for Alan Bukowski. Just want on our end here. So we thought the subscription revenue 19% was pretty strong for a company of your size.

Speaker #1: Sure. Another area we're very encouraged in is our financial services vertical. We have a strong sales organization there. We've been increasing in our footprint there.

Speaker #4: 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?

Speaker #1: In US, 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.

Speaker #4: Thank you.

Speaker #1: 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.

Speaker #1: And we've been out in the market selling it. We're encouraged by the traction. A lot of large deal sizes around it. But I will say that particular one, the public fund, still early.

Speaker #1: But again, very encouraged and it does play into the area that we play best in, which is of course large enterprise.

Speaker #1: I mean, again, every quarter, maybe 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.

Speaker #3: That's helpful. And then just wanted to ask a question on that retention rate. So if my math is right, it did improve versus last quarter.

Speaker #1: And we're seeing a lot of traction. Our partner ecosystem continues to get stronger. Our expansion motion is very healthy and continues to strengthen.

Speaker #3: Modestly. So just wondering, was there anything in particular that helped drive that? And obviously, we exclude foreign effects in that number. Is it was it something specific?

Speaker #1: Multi-solution, multi-category. I mean, 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.

Speaker #3: Any product or was it broad-based? Thanks.

Speaker #5: 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.

Speaker #1: So it really the broad-based platform, the need, the customer need in the market is I highlighted in my prepared remarks. And of course, just our own execution getting stronger.

Speaker #5: 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.

Speaker #1: And Barbara, can you respond?

Speaker #5: Yeah. And I'll just add one more thing in there. International is an additional growth lever for us. So, like Julie said, it's very broad-based. We're not dependent on any single lever.

Speaker #5: Deep portfolio, new logos, expansion, and then international as well. Thanks for the question.

Speaker #2: Thank you. Your next question comes from Brett Huff from Stevens, Inc. Please go ahead.

Speaker #4: Got it. Thank you.

Speaker #2: Thank you. Your next question comes from Andrew DeGasperi from BNP Paribas. Please go ahead.

Speaker #6: Good evening. Hope you all are well. Thanks for the time tonight. Two questions. One, just kind of a derivative of the NRR, can you talk a little bit about I think you said there was some XBRL benefits and I wanted to also understand what kind of the SEC reporting, IPO benefits you might have seen in the quarter.

Speaker #3: Thanks. I wanted to ask a question, Julie, on the financial services opportunity, and particularly the fund reporting product you highlighted for two large deals.

Speaker #3: 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?

Speaker #6: 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 leading question.

Speaker #3: And I also noticed that you mentioned North America and Europe, as driving that demand. So would love to have additional color on that.

Speaker #6: 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?

Speaker #1: Sure. Another area we're very encouraged in is our financial services vertical. We have a strong sales organization there. We've been increasing in our footprint there.

Speaker #6: Thanks.

Speaker #5: 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 one-time.

Speaker #1: In US, 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.

Speaker #5: It was specifically filings. That happened annually. So we're not expecting it or planning on it repeating in the back half.

Speaker #1: And we've been out in the market selling it. We're encouraged by the traction, with a lot of large deal sizes around it. But I will say that particular one, the public fund, is still early.

Speaker #1: 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.

Speaker #1: But again, very encouraged. And it does play into the area that we play best in, which is, of course, large enterprise.

Speaker #3: That's helpful. I just wanted to ask a question about the retention rate. If my math is right, it did improve versus last quarter.

Speaker #1: And as I mentioned in my prepared remarks, we supported a very robust slate of public listings this quarter. I mentioned SpaceX and Cerebras and Quantinuum.

Speaker #3: Modestly. So, just wondering, was there anything in particular that helped drive that? And, obviously, if we exclude foreign effects in that number, was it something specific?

Speaker #1: And these companies really represent exactly the kind of organizations that require a trusted audit-ready platform. Then you asked about the revenue and the guidance.

Speaker #1: 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.

Speaker #3: Any particular product, or was it broad-based? Thanks.

Speaker #5: 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.

Speaker #1: And we did incorporate that into our guide. So I would say that each one of this year was better than H1 of last year.

Speaker #5: 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.

Speaker #1: But very much in line with our expectations. So we are taking it into account. It's part of the guide. And very consistent with what we said in both February and May, in fact.

Speaker #5: And was again above our 110% target.

Speaker #5: And thanks for highlighting that. We We now expect to achieve our medium-term operating margin target of 18% in 2026. So that's a full year ahead of schedule.

Speaker #5: 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.

Speaker #2: Thank you. Your next question comes from Brett Huff from Stevens, Inc. Please go ahead.

Speaker #6: Good evening. Hope you all are well. Thanks for your time tonight. 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 SEC reporting or IPO benefits you might have seen in the quarter?

Speaker #5: 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.

Speaker #5: We feel really good about the progress we've made.

Speaker #3: Well, congrats being able to grow and expand margins. Appreciate it.

Speaker #6: 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 leading question.

Speaker #2: Thank you. Your next question comes from Steve Enders from Citi. Please go ahead.

Speaker #4: Okay. Great. Thanks for taking the questions here. 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.

Speaker #6: 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?

Speaker #6: Thanks.

Speaker #5: 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 one-time.

Speaker #4: Now that they're just starting to get onto the marketplace.

Speaker #1: Sure. And thanks for highlighting our release, newly released product capabilities around AI. We did one very recently, last week, focused on both solutions and our platform.

Speaker #5: It was specifically around 11-K filings. That happened annually, so we're not expecting it or planning on it repeating in the back half.

Speaker #2: Thanks, Barbara.

Speaker #1: 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.

Speaker #1: And 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.

Speaker #1: And as I mentioned in my prepared remarks, we supported a very robust slate of public listings this quarter. I mentioned SpaceX and Cerebras and Quantinuum.

Speaker #1: And of course, which is our great differentiator, maintaining the governance and controls 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.

Speaker #1: And these companies really represent exactly the kind of organizations that require a trusted, audit-ready platform. Then you asked about the revenue and the guidance.

Speaker #1: From a 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 2026.

Speaker #1: And along with what we've acknowledged, which is core now into the platform, and we put those into our premium tiers and our good, better, best models.

Speaker #1: And we did incorporate that into our guide. So I would say that each one this year was better than H1 of last year.

Speaker #1: And we have seen excellent traction on those premium tiers since we began doing that over the year, year and a half that they've been out.

Speaker #1: But very much in line with our expectations, so we are taking it into account. It's part of the guide and very consistent with what we said in both February and May, in fact.

Speaker #1: 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.

Speaker #5: 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.

Speaker #1: 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.

Speaker #5: 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.

Speaker #1: And we will continue to roll out the capabilities to, again, help our customers do more the work using our platform.

Speaker #5: Our 2030 targets remain unchanged, but we continue to focus on staying disciplined, scaling efficiently, and executing against this plan that we've laid out.

Speaker #4: Okay. That's helpful context there. And then maybe just on some of the moving pieces with FX rates and appreciate you calling those things out.

Speaker #5: We feel really good about the progress we've made.

Speaker #3: Well, congrats on being able to grow and expand margins. I appreciate it.

Speaker #2: Thank you. Your next question comes from Steve Enders from Citi. Please go ahead.

Speaker #4: 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 billings or free cash flow dynamics as well?

Speaker #4: Okay, great. Thanks for taking the questions here. Maybe just to start, I'd like to ask a little bit about some of the newer agent products that you've been rolling out, and I'm wondering what the early feedback has been from customers and how you're viewing the monetization potential for those solutions.

Speaker #5: Yeah. We have a theme for the back half of the year on our top-line metrics and our numbers that are currency remains relatively flat with the rates that we saw at the end of June, so the end of the quarter.

Speaker #4: Now that they're just starting to get onto the marketplace.

Speaker #4: 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?

Speaker #5: Sure. And thanks for highlighting our—

Speaker #1: We've released newly released product capabilities around AI. We did one very recently, last week, focused on both solutions and our platform. I'll highlight for everyone that there's really a common thread around all of these announcements and prior releases as well: we're helping our customers complete work faster with greater confidence by enabling the platform to do more of the work on their behalf.

Speaker #5: Pretty in line with historical trends.

Speaker #4: Okay. Perfect. Thanks for taking the questions.

Speaker #5: Thank you.

Speaker #2: Thank you. Your next question comes from Patrick McIlwee from William Blair. Please go ahead.

Speaker #6: Hi team. Thank you for taking my questions. A 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.

Speaker #1: And of course, which is our great differentiator, maintaining the governance and controls and traceability that our customers really need and expect. So we did introduce a number of purpose-built agents: the tie-out agent, benchmarking agent, sustainability disclosure agent, and so forth.

Speaker #6: 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?

Speaker #1: And along with Workiva's even knowledge, which is now core to the platform. We put those into our premium tiers and our good, better, best models.

Speaker #6: And is there anything worth calling out in terms of execution between new logos and then existing customer expansion?

Speaker #1: And we have seen excellent traction on those premium tiers since we began doing that over the year, year and a half that they've been out.

Speaker #1: Yes. I think Michael Pinto we welcomed him very early in the year. And he is doing exactly what we have asked him to do and what we expect him to do.

Speaker #1: And we continue to see that traction, whether we're going back to customers at renewal or even mid-cycle because they like to adopt some of that AI capability and other premium features that we have available.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: And he is very well aware of that. So that improving sales efficiency, increasing pipeline quality, growing our large enterprise accounts, accelerating rep productivity, expanding the contribution from our partner ecosystem.

Speaker #1: And we will continue to roll out the capabilities to, again, help our customers do more of the work using our platform.

Speaker #1: So I will 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.

Speaker #4: 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.

Speaker #1: 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 seven quarters.

Speaker #4: But I guess, is there 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 billings or free cash flow dynamics as well?

Speaker #1: 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.

Speaker #5: 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.

Speaker #1: We're increasingly winning larger higher-value customers when we land that are ultimately adopting more of the work even platform. But they do so too from the outset, which is important for us.

Speaker #4: Okay. 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?

Speaker #1: So those lands are often multi-solution, six-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.

Speaker #5: Pretty in line with historical trends.

Speaker #4: Okay, perfect. Thanks for taking the questions.

Speaker #5: Thank you.

Speaker #2: Thank you. Your next question comes from Patrick McIlley from William Blair. Please go ahead.

Speaker #1: 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.

Speaker #6: Hi, team. Thank you for taking my questions. It was a 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.

Speaker #1: So we continue to.

Speaker #6: Okay. That's all really encouraging. Thanks. 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.

Speaker #6: 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 existing customer expansion?

Speaker #6: So I'm just wondering if at this point you feel you're structured appropriately across your main product suites?

Speaker #1: We are moving toward that structure. We've been very clear about not wanting to disrupt our go-to-market execution and isn't a one-time Michael coming in for a couple of quarters and being done.

Speaker #1: Yes, I think Michael Pinto—we welcomed him very early in the year. And he is doing exactly what we have asked him to do, and what we expect him to do.

Speaker #1: 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.

Speaker #1: I mean, clearly, we are being held accountable for delivering bookings. But we're also very focused on the metrics that will lead to long-term, durable growth.

Speaker #1: 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.

Speaker #1: And he is very well aware of that. So that's improving sales efficiency, increasing pipeline quality, growing our large enterprise accounts, accelerating rep productivity, and expanding the contribution from our partner ecosystem.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: With a mix of talent continuing to evolve as the strategy evolves. But I do want to make clear we are bringing in new talent.

Speaker #1: 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 seven quarters.

Speaker #1: We are putting them in strategic areas and 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.

Speaker #1: I think that's a very important to be blending that with our new hires. So should give you a feel for how we're moving forward with people.

Speaker #1: It's a metric that we look at and 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.

Speaker #1: And talent.

Speaker #6: Okay. Yep. Thank you, Julie.

Speaker #1: 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.

Speaker #1: Thank you.

Speaker #2: Thank you. Your next question comes from Rob Oliver from Brett please go ahead.

Speaker #6: Great. Good afternoon. Thank you 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.

Speaker #1: So those lands are often multi-solution, six-figure relationships with significant long-term expansion opportunities. So I will say those new customers are, in absolute number, larger, but also the customers themselves are buying more at the outset.

Speaker #6: 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.

Speaker #1: 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.

Speaker #6: I know that some of the agentic offerings which you've announced are going to be in the upper tiers rightfully so, but how did 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 up to these renewal periods?

Speaker #1: So we continue to.

Speaker #6: Okay, that's all really encouraging. Thanks. 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. I understand that in the past you've moved some reps around to kind of the best available opportunity set.

Speaker #6: Thanks.

Speaker #1: I mean, you nailed it. Thank you. Thanks for highlighting that we are not seat-based. And it's been we've been using a value-based pricing model for years.

Speaker #6: So, I'm just wondering if, at this point, you feel you're structured appropriately across your main product suites?

Speaker #1: And I say that again because it does play into the tiering. So if we have a customer in 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.

Speaker #1: We are moving toward 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.

Speaker #1: So that isn't a one-time, Michael coming in for a couple of quarters and being done. That continues to evolve as the market changes and grows, and we get better as a company too in our execution. But you mentioned the hiring.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: I mean, really, our aim on is digitization isn't changing as we roll out these capabilities right now and it's quite straightforward using that good, better, best methodology or framework.

Speaker #1: 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.

Speaker #1: So that is how we are capturing the benefit. It's not everyone pays the same price. The premium tier. We are still it is all about value.

Speaker #1: With a mix of talent continuing to evolve as the strategy evolves. But I do want to make clear, we are bringing in new talent.

Speaker #1: And usage on the platform. And that is how we're charging those with even within the same tier.

Speaker #1: We are putting them in strategic areas and 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. I think that's very important—blending that with our new hires.

Speaker #6: Great. Thanks. And then Barbara just quickly for you just on the sales efficiency side where you guys have been making a lot of progress.

Speaker #6: 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.

Speaker #1: So, that should give you a feel for how we're moving forward with people and talent.

Speaker #6: Okay. Yep. Thank you, Julie.

Speaker #6: Thank you.

Speaker #3: Yeah. Rob. Thanks for the question. It continues to be a work in progress as we move to platform sellers. So that's one of the things that we are working through.

Speaker #2: Thank you. Your next question comes from Rob Oliver from Baird. Please go ahead.

Speaker #6: Great. Good afternoon. Thank you 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.

Speaker #3: 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.

Speaker #6: 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.

Speaker #3: 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.

Speaker #6: 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.

Speaker #6: Awesome. Great. Thank you both.

Speaker #1: Thank you, Rob.

Speaker #3: Thank you.

Speaker #2: Thank you. 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.

Speaker #6: But how did 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 up to these renewal periods?

Speaker #6: Thanks.

Speaker #1: I mean, you nailed it. Thank you. Thanks for highlighting that we are not seat-based. We’ve been using a value-based pricing model for years.

Speaker #1: And I say that again because it does play into the tiering. So, if we have a customer in the Advanced tier, they have been paying that even before AI.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: And it's quite straightforward using that good, better, best methodology or framework. So that is how we are capturing the benefit. Not everyone pays the same price.

Speaker #1: 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.

Speaker #6: Great, thanks. And then, Barbara, just quickly for you—just on the sales efficiency side, where you guys have been making a lot of progress.

Speaker #6: 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 it sort of gives you confidence on the continued trajectory to contribute to that margin improvement.

Speaker #6: Thank you.

Speaker #1: Yeah. Rob, thanks for the question. It continues to be a work in progress as we move to platform sellers. So that's one of the things that we are working through.

Speaker #1: 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 are things that we also will continue to drive.

Speaker #1: We will invest back into the business with more feet on the street to really go after the opportunity that we see in front of us.

Speaker #6: Awesome. Great. Thank you both.

Speaker #1: Thank you, Rob.

Speaker #3: Thank you.

Speaker #2: Thank you. 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.