The most common and most likely answer to this crossword clue is the 7 letter word DEDUCES
I've seen this crossword clue in The Guardian
D
E
D
U
C
E
S
More clues leading to the result DEDUCES
Buddy explains!

The straight part
We know that "Works out" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case works out = deduces.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does DEDUCES mean?
DEDUCES verb- To reach a conclusion by applying rules of logic to given premises.
- To take away; to deduct; to subtract.
- (Latinism) To lead forth.