Should You Invest in Workiva (WK)?

13D Activist Fund is a mutual fund that focuses on companies invested in by shareholder activists. The fund released its Q3 2025 investor letter. The class I shared of the fund returned 8.88%, net of fees and expenses, in the quarter compared to 12.39% for the Russell 2000 Index. Overall, the fund was thrilled with its performance this quarter. However, on a relative basis, there is room for improvement. The Russell 2000 outperformed the S&P 500 by the largest margin in three years, with a return of 12.39% compared to the S&P 500’s 8.12%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, 13D Activist Fund 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 for The Workiva Inc. (NYSE:WK) was 5.95%, and its shares lost 8.65% over the last 52 weeks. On December 03, 2025, Workiva Inc. (NYSE:WK) stock closed at $92.08 per share, with a market capitalization of $5.168 billion.

13D Activist Fund stated the following regarding Workiva Inc. (NYSE:WK) in its third quarter 2025 investor letter:

“Workiva Inc. (NYSE:WK): This is another investment by an activist we had not followed before but have known and watched for a while. Irenic Capital was founded in October of 2021 by Adam Katz, a former Portfolio Manager at Elliott Investment Management, and Andy Dodge, a former Investment Partner at Indaba Capital Management. Irenic invests in public companies and works collaboratively with firm leadership. Their activism has thus far focused on strategic activism, recommending spinoffs and sales of businesses.

Workiva is a leading provider of cloud-based reporting solutions, integrating financial reporting, sustainability management, and governance, risk, and compliance, into a sharable, data-integrated, and audit-ready environment. Over 40% of the Company’s revenue is derived from its SEC filing service, which simplifies SEC filings and other disclosures for public companies. This is a great business that serves some of the world’s largest enterprises, with 95% of the Fortune 100, 89% of the Fortune 500, and 85% of the Fortune 1000 using its platform, supported by an approximately 97% customer retention rate that has enabled consistent mid-teens revenue growth. But the problem for Workiva lies not in the quality of its business, but rather its lack of profitability. Despite scaling towards over $1 billion in revenue by 2026 and over 10 years operating in the public markets, Workiva is yet to generate a profit. As a result, Workiva shares currently trade at a roughly 25% discount to application software rivals like Workday and ServiceNow…” (Click here to read the full text)

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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 third quarter, the same as in the previous quarter. In Q3 2025, Workiva Inc. (NYSE:WK) reported revenue of $224 million, marking 21% increase from Q3 2024. While we acknowledge the risk and potential of 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 TimesSquare Capital Small Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.