1 Glorious Growth Stock Down 48% to Buy Hand Over Fist, According to Wall Street

Workiva (WK) reported robust Q3 2025 results, with revenue increasing 21% year-over-year to $224 million, surpassing management's forecast, driven by a 114% net revenue retention rate and accelerated growth in high-value customer contracts. The company subsequently raised its full-year revenue guidance and is enhancing its platform with AI capabilities to streamline reporting and compliance for large organizations. Despite the stock trading 48% below its 2021 peak, analysts are overwhelmingly bullish, citing an attractive valuation with a price-to-sales ratio of 5.6 (below its historical average) and a significant $35 billion total addressable market, indicating substantial long-term growth potential.

Analysis

Workiva (WK) reported a robust Q3 2025, with total revenue reaching $224 million, a 21% year-over-year increase, surpassing management's forecast of $218 million to $220 million. This strong performance was driven by a multiyear high net revenue retention rate of 114% and accelerated growth in high-value customer contracts, with those over $300,000 and $500,000 increasing by 41% and 42% year-over-year, respectively. Consequently, management raised its full-year revenue guidance to a midpoint of $881 million.

The company is enhancing its platform with the introduction of Workiva AI, an assistant designed to streamline reporting and compliance workflows by leveraging existing document context for instant disclosure drafting and customization. This innovation, coupled with a substantial estimated total addressable market of $35 billion, suggests significant long-term growth potential as Workiva has barely penetrated this opportunity.

Despite trading 48% below its 2021 peak, Workiva's valuation appears attractive, with its price-to-sales (P/S) ratio at 5.6, a discount to its historical average of 7.2 since its 2014 IPO. Wall Street analysts are overwhelmingly bullish, with all 11 tracked by The Wall Street Journal issuing either "buy" or "overweight" ratings, and an average price target of $97.60, implying an 11% upside.

Key Decisions for Investors

• Investors should consider initiating or increasing long positions in WK, supported by robust Q3 earnings, raised guidance, and an attractive valuation relative to historical averages.
• Monitor the continued acceleration of high-value customer acquisition and the successful integration and adoption of the Workiva AI platform for sustained growth.
• Evaluate the stock's long-term potential against its significant $35 billion total addressable market, as current analyst price targets may understate multi-year returns.