Guidewire Software Inc Financials
This page shows Guidewire Software Inc (GWRE) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Guidewire Software Inc has an operating margin of 3.4%, meaning the company retains $3 of operating profit per $100 of revenue. This below-average margin results in a low score of 17/100, suggesting thin profitability after operating expenses. This is up from -5.4% the prior year.
Guidewire Software Inc's revenue surged 22.6% year-over-year to $1.2B, reflecting rapid business expansion. This strong growth earns a score of 93/100.
Guidewire Software Inc carries a low D/E ratio of 0.72, meaning only $0.72 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 84/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 3.48, Guidewire Software Inc holds $3.48 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.
Guidewire Software Inc converts 24.5% of revenue into free cash flow ($295.1M). This strong cash generation earns a score of 100/100.
Guidewire Software Inc generates a 4.5% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 18/100.
Guidewire Software Inc scores 6.61, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($11.0B) relative to total liabilities ($1.1B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Guidewire Software Inc passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Guidewire Software Inc generates $4.31 in operating cash flow ($300.9M OCF vs $69.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Guidewire Software Inc earns $3.1 in operating income for every $1 of interest expense ($41.1M vs $13.2M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
Key Financial Metrics
Guidewire Software Inc generated $1.2B in revenue in fiscal year 2025. This represents an increase of 22.6% from the prior year.
Guidewire Software Inc's EBITDA was $64.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 314.2% from the prior year.
Guidewire Software Inc generated $295.1M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 55.8% from the prior year.
Guidewire Software Inc reported $69.8M in net income in fiscal year 2025. This represents an increase of 1243.8% from the prior year.
Guidewire Software Inc earned $0.81 per diluted share (EPS) in fiscal year 2025. This represents an increase of 1257.1% from the prior year.
Guidewire Software Inc held $492.0M in cash against $0 in long-term debt as of fiscal year 2025.
Guidewire Software Inc had 85M shares outstanding in fiscal year 2025. This represents an increase of 1.8% from the prior year.
Guidewire Software Inc's gross margin was 62.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 3.0 percentage points from the prior year.
Guidewire Software Inc's operating margin was 3.4% in fiscal year 2025, reflecting core business profitability. This is up 8.8 percentage points from the prior year.
Guidewire Software Inc's net profit margin was 5.8% in fiscal year 2025, showing the share of revenue converted to profit. This is up 6.4 percentage points from the prior year.
Guidewire Software Inc's ROE was 4.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity.
Guidewire Software Inc invested $296.2M in research and development in fiscal year 2025. This represents an increase of 9.9% from the prior year.
Guidewire Software Inc spent $0 on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
Guidewire Software Inc invested $5.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 9.8% from the prior year.
GWRE Income Statement
| Metric | Q1'26 | Q3'25 | Q2'25 | Q2'24 | Q1'25 | Q2'23 | Q3'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $332.6M+13.3% | $293.5M+1.4% | $289.5M+24.4% | $232.6M+12.2% | $207.4M+1.4% | $204.6M-1.4% | $207.5M+6.3% | $195.3M |
| Cost of Revenue | $123.1M+11.1% | $110.8M+0.4% | $110.3M+1.1% | $109.1M+14.8% | $95.1M-7.2% | $102.4M-5.6% | $108.6M-11.8% | $123.1M |
| Gross Profit | $209.5M+14.7% | $182.7M+2.0% | $179.2M+45.1% | $123.5M+9.9% | $112.3M+9.9% | $102.2M+3.3% | $98.9M+37.1% | $72.2M |
| R&D Expenses | $78.3M+7.4% | $72.9M+3.8% | $70.3M+13.9% | $61.7M-1.2% | $62.5M+11.9% | $55.8M-11.5% | $63.1M+8.4% | $58.2M |
| SG&A Expenses | $48.5M+1.9% | $47.5M+14.0% | $41.7M+3.8% | $40.2M+3.0% | $39.0M+4.5% | $37.3M-20.2% | $46.8M+11.3% | $42.1M |
| Operating Income | $18.5M+313.6% | $4.5M-61.9% | $11.7M+150.5% | -$23.2M+31.3% | -$33.8M+14.4% | -$39.5M+31.8% | -$57.8M+22.4% | -$74.6M |
| Interest Expense | $3.3M-9.7% | $3.7M-12.3% | $4.2M+149.4% | $1.7M-0.4% | $1.7M-65.2% | $4.8M+187.2% | $1.7M+0.5% | $1.7M |
| Income Tax | -$6.8M-354.2% | $2.7M+146.6% | -$5.8M-687.3% | $979K+108.5% | -$11.5M-5.2% | -$11.0M-2.8% | -$10.7M+33.8% | -$16.1M |
| Net Income | $31.3M-31.9% | $46.0M+223.4% | -$37.3M-305.7% | -$9.2M+66.1% | -$27.1M+33.5% | -$40.7M+10.7% | -$45.6M+34.3% | -$69.3M |
| EPS (Diluted) | $0.36-33.3% | $0.54+220.0% | $-0.45-309.1% | $-0.11+66.7% | $-0.33+32.7% | $-0.49+12.5% | $-0.56+32.5% | $-0.83 |
GWRE Balance Sheet
| Metric | Q1'26 | Q3'25 | Q2'25 | Q2'24 | Q1'25 | Q2'23 | Q3'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.6B+6.1% | $2.5B-2.2% | $2.5B+14.2% | $2.2B+16.0% | $1.9B-5.3% | $2.0B+5.8% | $1.9B-1.6% | $1.9B |
| Current Assets | $1.4B+3.4% | $1.3B-11.2% | $1.5B+14.1% | $1.3B+32.6% | $976.8M-11.2% | $1.1B+9.2% | $1.0B+6.7% | $943.6M |
| Cash & Equivalents | $492.0M-3.6% | $510.3M-26.8% | $697.5M+27.3% | $548.0M+81.8% | $301.4M-25.0% | $401.8M+50.7% | $266.6M+1.3% | $263.2M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $94.6M-35.8% | $147.3M+19.8% | $123.0M-10.4% | $137.3M+47.5% | $93.1M-38.4% | $151.0M+17.0% | $129.1M+46.2% | $88.3M |
| Goodwill | $394.3M+0.2% | $393.6M+5.7% | $372.2M0.0% | $372.2M0.0% | $372.2M0.0% | $372.2M0.0% | $372.2M0.0% | $372.2M |
| Total Liabilities | $1.1B-1.7% | $1.1B-11.7% | $1.3B+44.2% | $883.6M+23.8% | $713.9M-13.8% | $828.4M+14.8% | $721.4M-5.5% | $763.3M |
| Current Liabilities | $389.9M-4.0% | $405.9M-27.3% | $558.7M-33.3% | $837.6M+219.3% | $262.4M-29.7% | $373.3M+35.5% | $275.4M+9.0% | $252.8M |
| Long-Term Debt | N/A | N/A | N/A | $398.9M | N/A | $397.2M | N/A | N/A |
| Total Equity | $1.5B+12.5% | $1.4B+7.4% | $1.3B-5.5% | $1.3B+11.4% | $1.2B+0.5% | $1.2B+0.4% | $1.2B+0.8% | $1.2B |
| Retained Earnings | -$522.9M+13.7% | -$606.2M+7.1% | -$652.2M-4.5% | -$624.1M+3.3% | -$645.0M-4.4% | -$618.0M-5.7% | -$584.4M-23.4% | -$473.6M |
GWRE Cash Flow Statement
| Metric | Q1'26 | Q3'25 | Q2'25 | Q2'24 | Q1'25 | Q2'23 | Q3'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$67.4M-308.3% | $32.4M-62.4% | $86.0M-55.6% | $193.8M+368.8% | -$72.1M-141.6% | $173.2M+456.3% | -$48.6M+44.4% | -$87.4M |
| Capital Expenditures | $4.9M+593.9% | $703K-11.0% | $790K-53.4% | $1.7M+69.7% | $998K-68.9% | $3.2M+373.7% | $677K+12.1% | $604K |
| Free Cash Flow | -$72.3M-328.4% | $31.6M-62.9% | $85.2M-55.6% | $192.1M+362.8% | -$73.1M-143.0% | $170.0M+444.9% | -$49.3M+44.0% | -$88.0M |
| Investing Cash Flow | -$138.8M-188.8% | -$48.1M+9.2% | -$52.9M-625.7% | -$7.3M+73.8% | -$27.8M-413.8% | $8.9M-83.2% | $52.7M+196.8% | -$54.4M |
| Financing Cash Flow | $413K+100.2% | -$178.4M-14.6% | -$155.6M-15046.3% | $1.0M | $0+100.0% | -$47.8M-247.3% | -$13.8M+93.1% | -$200.0M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | $0 | $0 | $0 | $0-100.0% | $47.8M+241.7% | $14.0M-93.0% | $200.0M |
GWRE Financial Ratios
| Metric | Q1'26 | Q3'25 | Q2'25 | Q2'24 | Q1'25 | Q2'23 | Q3'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 63.0%+0.7pp | 62.3%+0.4pp | 61.9%+8.8pp | 53.1%-1.1pp | 54.1%+4.2pp | 49.9%+2.3pp | 47.7%+10.7pp | 37.0% |
| Operating Margin | 5.5%+4.0pp | 1.5%-2.5pp | 4.0%+14.0pp | -10.0%+6.3pp | -16.3%+3.0pp | -19.3%+8.6pp | -27.9%+10.3pp | -38.2% |
| Net Margin | 9.4%-6.3pp | 15.7%+28.5pp | -12.9%-8.9pp | -4.0%+9.1pp | -13.1%+6.8pp | -19.9%+2.1pp | -22.0%+13.5pp | -35.5% |
| Return on Equity | 2.0%-1.3pp | 3.4%+2.6pp | 0.8% | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | 1.2%-0.7pp | 1.8%+3.3pp | -1.5%-1.0pp | -0.5%+0.9pp | -1.4%+0.4pp | -1.9%+0.5pp | -2.4%+1.2pp | -3.6% |
| Current Ratio | 3.48+0.2 | 3.23+0.6 | 2.65+1.1 | 1.55-2.2 | 3.72+0.8 | 2.95-0.7 | 3.65-0.1 | 3.73 |
| Debt-to-Equity | 0.72-0.1 | 0.83-0.2 | 1.00+0.7 | 0.30-0.3 | 0.59+0.3 | 0.33-0.3 | 0.60-0.0 | 0.64 |
| FCF Margin | -21.7%-32.5pp | 10.8%-18.6pp | 29.4%+29.5pp | -0.1%+35.2pp | -35.2%-32.0pp | -3.3%+20.5pp | -23.8%+21.3pp | -45.1% |
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Frequently Asked Questions
What is Guidewire Software Inc's annual revenue?
Guidewire Software Inc (GWRE) reported $1.2B in total revenue for fiscal year 2025. This represents a 22.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Guidewire Software Inc's revenue growing?
Guidewire Software Inc (GWRE) revenue grew by 22.6% year-over-year, from $980.5M to $1.2B in fiscal year 2025.
Is Guidewire Software Inc profitable?
Yes, Guidewire Software Inc (GWRE) reported a net income of $69.8M in fiscal year 2025, with a net profit margin of 5.8%.
What is Guidewire Software Inc's earnings per share (EPS)?
Guidewire Software Inc (GWRE) reported diluted earnings per share of $0.81 for fiscal year 2025. This represents a 1257.1% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Guidewire Software Inc's EBITDA?
Guidewire Software Inc (GWRE) had EBITDA of $64.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Guidewire Software Inc's gross margin?
Guidewire Software Inc (GWRE) had a gross margin of 62.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Guidewire Software Inc's operating margin?
Guidewire Software Inc (GWRE) had an operating margin of 3.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Guidewire Software Inc's net profit margin?
Guidewire Software Inc (GWRE) had a net profit margin of 5.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Guidewire Software Inc's return on equity (ROE)?
Guidewire Software Inc (GWRE) has a return on equity of 4.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Guidewire Software Inc's free cash flow?
Guidewire Software Inc (GWRE) generated $295.1M in free cash flow during fiscal year 2025. This represents a 55.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Guidewire Software Inc's operating cash flow?
Guidewire Software Inc (GWRE) generated $300.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Guidewire Software Inc's total assets?
Guidewire Software Inc (GWRE) had $2.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Guidewire Software Inc's capital expenditures?
Guidewire Software Inc (GWRE) invested $5.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Guidewire Software Inc spend on research and development?
Guidewire Software Inc (GWRE) invested $296.2M in research and development during fiscal year 2025.
How many shares does Guidewire Software Inc have outstanding?
Guidewire Software Inc (GWRE) had 85M shares outstanding as of fiscal year 2025.
What is Guidewire Software Inc's current ratio?
Guidewire Software Inc (GWRE) had a current ratio of 3.48 as of fiscal year 2025, which is generally considered healthy.
What is Guidewire Software Inc's debt-to-equity ratio?
Guidewire Software Inc (GWRE) had a debt-to-equity ratio of 0.72 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Guidewire Software Inc's return on assets (ROA)?
Guidewire Software Inc (GWRE) had a return on assets of 2.6% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Guidewire Software Inc's Altman Z-Score?
Guidewire Software Inc (GWRE) has an Altman Z-Score of 6.61, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Guidewire Software Inc's Piotroski F-Score?
Guidewire Software Inc (GWRE) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Guidewire Software Inc's earnings high quality?
Guidewire Software Inc (GWRE) has an earnings quality ratio of 4.31x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Guidewire Software Inc cover its interest payments?
Guidewire Software Inc (GWRE) has an interest coverage ratio of 3.1x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Guidewire Software Inc?
Guidewire Software Inc (GWRE) scores 69 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.