What Happened?

Shares of financial and compliance reporting software company Workiva (NYSE:WK) fell 13% in the morning session after the company reported weak first-quarter 2025 results, weighed down by a sharp cut to its next-quarter EPS guidance and a drop in net revenue retention, a sign that existing customers are not expanding usage as quickly as before. On the other hand, Workiva grew its customers this quarter and its revenue narrowly outperformed Wall Street's estimates. Still, this was a mixed quarter.

The shares closed the day at $67.32, down 9.4% from previous close.

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What The Market Is Telling Us

Workiva’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Workiva and indicate this news significantly impacted the market’s perception of the business.

Workiva is down 38.1% since the beginning of the year, and at $67.40 per share, it is trading 41.3% below its 52-week high of $114.78 from December 2024. Investors who bought $1,000 worth of Workiva’s shares 5 years ago would now be looking at an investment worth $1,786.

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