Here’s What Led Workiva (WK) Stock’s 10% Decline in Q2

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital Small Cap Growth Strategy highlighted stocks such as Workiva Inc. (NYSE:WK). Workiva Inc. (NYSE:WK) is a software services company that offers cloud-based reporting solutions. The one-month return of The Workiva Inc. (NYSE:WK) was 4.94%, and its shares gained 4.96% of their value over the last 52 weeks. On September 11, 2025, Workiva Inc. (NYSE:WK) stock closed at $78.44 per share, with a market capitalization of $4.394 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Workiva Inc. (NYSE:WK) in its second quarter 2025 investor letter:

“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Workiva Inc. (NYSE:WK) offers cloud-based compliance and regulatory reporting solutions. Results for the latest quarter edged estimates and the company maintained full year revenue guidance, thereby reflecting continued momentum in multi-solution platform deals. Management did however indicate that new business bookings could be impacted by a less favorable buying environment. These cautionary comments served to pressure the stock price by -10%.”

Workiva Inc. (NYSE:WK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Workiva Inc. (NYSE:WK) at the end of the second quarter, which was 35 in the previous quarter. Workiva Inc. (NYSE:WK) had a strong performance in Q2, generating $215 million in total revenue, which was a 21% increase compared to Q2 2024. While we acknowledge the risk and potential Workiva Inc. (NYSE:WK) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Workiva Inc. (NYSE:WK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Workiva Inc. (NYSE:WK) and shared the list of best 52-week low tech stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.