The Risk Wheelhouse

S4E4: How Workiva's 32% Stock Surge Reveals a Deeper Industry Transformation

• Wheelhouse Advisors LLC • Season 4 • Episode 4

Share episode

Workiva's spectacular 32% stock surge after their Q2 2025 earnings reveals something much deeper than just a strong quarter. Their $215 million revenue (up 21% year-over-year) and impressive 114% net retention rate signal the market's growing confidence in their strategic transformation—a shift that parallels the entire risk management industry's evolution.

What makes this story fascinating is the context. Before this surge, Workiva had struggled, with their stock down 24% over two years due to overreliance on specific regulatory drivers like the EU's Corporate Sustainability Reporting Directive. When regulations faced delays, revenue recognition suffered, spooking investors. This vulnerability exposed a fundamental weakness in their business model.

Now we're witnessing Workiva's ambitious pivot from a compliance-focused financial reporting tool to a comprehensive Integrated Risk Management (IRM) platform. With 71% of subscription revenue coming from customers using multiple solutions, they're successfully expanding beyond their core offerings into ESG, audit, and broader risk domains. This transformation mirrors the industry-wide shift that Wheelhouse Advisors calls moving "from compliance to intelligence"—where organizations demand platforms that don't just check regulatory boxes but deliver proactive insights across the enterprise.

The competitive landscape tells its own story. Companies like Archer and OneTrust made similar integrated plays earlier, while others like AuditBoard doubled down on deep specialization. Using Wheelhouse's five-layer autonomous IRM framework, we can see Workiva's current strengths in verification/audit and strategic oversight, with significant opportunities to build capabilities in threat intelligence, business orchestration, and automated response—the areas where their competitors currently shine.

What does this mean for your organization? As risk becomes increasingly complex and interconnected, fragmented approaches grow more dangerous. The future belongs to platforms that can connect dots across domains, predict threats before they materialize, and enable truly integrated risk management. Ask yourself: Is your risk strategy still stuck in compliance mode, or are you evolving toward intelligence-driven decision-making? Your answer might determine whether you're merely surviving or truly thriving in tomorrow's risk landscape.



Visit www.therisktechjournal.com and www.rtj-bridge.com to learn more about the topics discussed in today's episode.

Subscribe at Apple Podcasts, Spotify, or Amazon Music. Contact us directly at info@wheelhouseadvisors.com or visit us at LinkedIn or X.com.

Our YouTube channel also delivers fast, executive-ready insights on Integrated Risk Management. Explore short explainers, IRM Navigator research highlights, RiskTech Journal analysis, and conversations from The Risk Wheelhouse Podcast. We cover the issues that matter most to modern risk leaders. Every video is designed to sharpen decision making and strengthen resilience in a digital-first world. Subscribe at youtube.com/@WheelhouseAdv.


Ori Wellington:

Welcome to the Deep Dive. Today we're jumping into a story that really made some noise recently Workiva. Oh yeah, big stock surge right 32% after their Q2 2025 earnings Huge number Exactly. And you know, at first glance you think, okay, great quarter success story, right. But when you dig into the courses, especially this piece from Wheelhouse Advisors, workiva's IRM surge a strategic evolution it paints a much more complex picture. It's actually a really interesting story about a company in the middle of a pretty critical strategic shift.

Sam Jones:

That's exactly right and that's kind of our mission today, isn't it? To get past that headline number. We really want to unpack what this surge actually means in the bigger context of integrated risk management, irm. It's a field that's changing fast, so we'll look at those market shifts, what Workiva is doing specifically, their Q2 results, obviously and, importantly, what it all means for risk tech going forward.

Ori Wellington:

Okay, let's unpack this then. So what's this strong quarter really telling us about Workiva's bigger game plan? And, maybe more importantly for listeners, what does it signal about how companies you know enterprises are thinking about risk these days?

Sam Jones:

Well, maybe start with the numbers.

Ori Wellington:

Yeah, because they are strong, yeah let's do that Q2, $215 million total revenue. That's up 21% year over year, pretty solid.

Sam Jones:

Very solid and the driver behind that, the subscription revenue that climbed even faster 23% up to $198 million.

Ori Wellington:

Those are impressive figures.

Sam Jones:

They really are, and it's not just the growth. Look at the retention 97% gross retention.

Ori Wellington:

Wow.

Sam Jones:

And get this 114% net retention. That means existing customers are spending more.

Ori Wellington:

That's a great sign.

Sam Jones:

Absolutely, and they even raised their full year guidance to around $872 million.

Ori Wellington:

So you, know the momentum seems real, which explains the investor reaction. That huge 32% jump after earnings Makes sense Totally.

Sam Jones:

But and this is where Wheelhouse Advisors add some important context- Right, there's always a but. Exactly. While this Q2 rally is fantastic news for them now, their stock had actually been down quite a bit before this, about 24% over the previous two years.

Ori Wellington:

Okay, so not exactly a smooth ride up until this point. Some volatility investor doubts maybe.

Sam Jones:

Definitely signals that. It suggests this isn't like the finish line of a transformation, it's more like the promising start of one.

Ori Wellington:

A necessary one. It sounds like A very necessary strategic realignment.

Sam Jones:

yes, they had some let's call them structural vulnerabilities before, mostly linked to depending too heavily on specific regulations.

Ori Wellington:

Ah, like the EU's CSRD. Yeah, the Corporate Sustainability Reporting Directive. I remember hearing about delays there impacting companies.

Sam Jones:

Exactly that kind of thing Delays impact reporting timelines, which hits revenue recognition, which spooks investors. So this recent surge suggests investors are starting to believe Workiva is finally addressing those kinds of dependencies, getting more resilient.

Ori Wellington:

OK, that makes a lot of sense, and this pivot Workiva is making it seems to align perfectly with a bigger trend in the whole risk management space, doesn't it?

Sam Jones:

Absolutely. The Wheelhouse Advisors Report, their IRM navigator for 2025, nails this. They talk about enterprise risk management, moving fundamentally from compliance to intelligence.

Ori Wellington:

From compliance to intelligence. Ok, what does that mean? Practically Less box ticking.

Sam Jones:

Pretty much Less focus on just meeting regulatory requirements you know, checking the boxes and much more focused on getting real time, actual insights.

Ori Wellington:

So companies want to spot risks proactively, maybe even like predict them before they blow up.

Sam Jones:

Precisely Spot and neutralize threats before they become catastrophes. It's a huge shift and it changes what companies look for in their vendors.

Ori Wellington:

So who wins in that kind of market?

Sam Jones:

The winners are the vendors delivering those cross-domain insights. Automation, too, platforms that can connect the dots across different risk areas, not just tools stuck on one narrow regulation.

Ori Wellington:

Okay, so where Kiva is trying to become one of those platforms, repositioning from primarily a financial reporting tool, which is where they started.

Sam Jones:

Right, that was their core.

Ori Wellington:

To something much broader, covering ESG audit, financial disclosure and this whole integrated risk management IRM umbrella. That sounds like a massive undertaking.

Sam Jones:

It is. It's a big pivot.

Ori Wellington:

How's it going? Is it actually working?

Sam Jones:

Well, the numbers suggest it is resonating. They mentioned 71% of their subscription revenue now comes from customers using multiple solutions on their platform.

Ori Wellington:

Oh, wow, okay, so customers are buying into the broader platform idea, not just using one piece.

Sam Jones:

Exactly, it shows successful cross-selling, yes, but also dupper adoption. They're building out features for assured integrated reporting workflows that connect teams, continuous monitoring, real-time analytics trying to deliver on that integrated promise.

Ori Wellington:

Which naturally brings us to the competition, because they're not doing this in a vacuum.

Sam Jones:

Not at all. The competitive landscape is well. It's really interesting here.

Ori Wellington:

So who are the benchmarks? Who should we compare Workiva to?

Sam Jones:

Well, the Wheelhouse Report points to companies like Archer and OneTrust. They're examples of firms that made this kind of integrated IRM play earlier and successfully.

Ori Wellington:

Right, expanding from, maybe, it risk or privacy into broader areas like ESG or cyber risk.

Sam Jones:

Exactly. They kind of set a benchmark for what that integration path looks like.

Ori Wellington:

OK, and then there are others taking a different approach.

Sam Jones:

Yeah, look at someone like Audit Board. They've focused more on deep specialization really strong and internal audit and GRC governance, risk and compliance.

Ori Wellington:

So best of breed in a specific area rather than the broad platform play.

Sam Jones:

Right, and that approach has its strengths, for sure, deep expertise but it also carries that potential vulnerability we talked about earlier, being maybe too dependent on specific regulatory drivers or niches, a bit like Workiva's past challenges, potentially.

Ori Wellington:

Ah, okay, so you've got these two different strategies playing out Deep specialization versus broad integration.

Sam Jones:

Exactly, and that really highlights the strategic tightrope Workiva is walking. They're clearly betting on integration now.

Ori Wellington:

That's where it gets really interesting. As you said, High stakes.

Sam Jones:

Definitely and to understand where Workiva fits in that integrated future Wheelhouse uses this model. Their five functional layers of autonomous IRM.

Ori Wellington:

Okay, five layers Sounds structured. What are they?

Sam Jones:

Think of them not as separate boxes, but as interconnected decision layers. They all work together to help a company achieve its goals across performance, resilience, assurance and compliance. They call it PRAC for short.

Ori Wellington:

PRAC Got it Performance, resilience, assurance, compliance.

Sam Jones:

Right. It's a framework for thinking about what a truly integrated, maybe even autonomous, risk management system needs to do.

Ori Wellington:

So, within those five layers, where does Workiva currently shine? Where are their strengths?

Sam Jones:

Based on that model, their traditional strengths are clearly in layer five, which is verification and audit.

Ori Wellington:

Okay, Makes sense given their background and also layer one strategic oversight.

Sam Jones:

So the high level view and the detail checking.

Ori Wellington:

Gotcha top and bottom layers, sort of so if those are the strengths, where's the room for growth? Where are the big opportunities for them to really become that end-to-end IRM player?

Sam Jones:

The big gaps, or rather opportunities, are in the middle layers. Layer three is threat intelligence proactively identifying risks. Layer two is business orchestration, coordinating actions across the company. And layer four is automated response actually acting on threats automatically where possible.

Ori Wellington:

And those middle layers.

Sam Jones:

Yeah.

Ori Wellington:

Those are areas where competitors might be stronger right now.

Sam Jones:

That's what the analysis suggests. Competitors like Archer and OneTrust often have strong capabilities in those particular areas. So that's where Rakeva really needs to build out, either organically or maybe through acquisition, to fulfill that true integrated vision.

Ori Wellington:

Okay, this ties back to the investor view, then right, investors are getting savvier about this.

Sam Jones:

Seems like it, the sentiment is shifting away from just rewarding compliance plays.

Ori Wellington:

They want more strategic value Platforms that aren't going to get sideswiped by one regulatory change.

Sam Jones:

Exactly. They prefer these integrated, diversified platforms more resilient, more adaptable, less dependent on, say, one specific mandate, like CSRD was for a time. Right, so the recommendations flowing from this analysis would be Well, for Workiva it's pretty clear Push hard into those middle IRM layers threat, intel, orchestration, response and, crucially, communicate the strategic value, not just the compliance box ticking.

Ori Wellington:

Makes sense and for other vendors.

Sam Jones:

The message is similar Embrace integration. Either build it yourself or partner up. Silos are becoming less attractive.

Ori Wellington:

And for the actual risk and compliance leaders, listening in the people in the trenches.

Sam Jones:

For them, it's about thinking strategically about their tech roadmap, aligning it with this integrated IRM future and, when evaluating vendors, maybe use a framework like those autonomous IRM layers to see who covers what and how well. It's about future-proofing their own risk programs who covers what?

Ori Wellington:

and how well it's about future-proofing their own risk programs. Okay, so wrapping this up, where Kiva's strong Q2 and that stock surge, it's like an early thumbs up for a major strategic pivot they're undertaking.

Sam Jones:

Yeah, an initial validation but, definitely just the beginning.

Ori Wellington:

Right, this isn't just about one company's quarterly earnings. It's reflecting a really fundamental shift in how businesses have to think about risk today, moving beyond just compliance and how businesses have to think about risk today, moving beyond just compliance Towards intelligent, integrated solutions.

Sam Jones:

It's about managing risk proactively in a world that's just getting more complex.

Ori Wellington:

So a final thought then what's the bigger takeaway here?

Sam Jones:

Well, if we connect this to the really big picture, it kind of begs a crucial question, doesn't it? In this environment of, you know, of constant change, overwhelming information, how vital is it for any company, really no matter the industry, to ditch those fragmented approaches to truly embrace cross-domain integration? Not just in their tech stack, but Right, not just technology, but in their strategy, their decision-making, their culture. How critical is that shift becoming for survival, let alone success? Maybe something for you, the listener, to think about in your own context, your own industry.

Ori Wellington:

That's a powerful question to leave people with Great food for thought. Thanks for joining us on this deep dive into Workiva, its strategic journey and the really dynamic world of integrated risk management.