# Guidewire (GWRE) Q4 2025 Financial Results Summary
On September 4, 2025, Guidewire (NYSE: GWRE) announced its financial results for the fiscal quarter and year ended July 31, 2025. Below is a summary of their performance in Q4 2025 and the entire fiscal year 2025.
## Fiscal Year 2025 Financial Highlights
– **Total Revenue:**
– $1,202.5 million, an increase of **23%** from fiscal year 2024.
– Subscription and support revenue: $731.3 million, an increase of **33%**.
– License revenue: $251.9 million, an increase of **1%**.
– Services revenue: $219.2 million, an increase of **21%**.
– **Annual Recurring Revenue (ARR):**
– As of July 31, 2025, ARR was $1,032 million, up **19%** from $864 million on the same date a year earlier.
– After currency revaluation, ARR was reported at $1,041 million as of July 31, 2025.
– **Profitability:**
– GAAP income from operations: $41.1 million vs. a loss of $52.6 million in fiscal year 2024.
– Non-GAAP income from operations: $208.2 million vs. $99.5 million in fiscal year 2024.
– GAAP net income: $69.8 million compared to a net loss of $6.1 million the previous year, translating to earnings of $0.81 per share (from a loss of $0.07).
– Non-GAAP net income: $227.9 million compared to $114.5 million in fiscal year 2024; non-GAAP net income per share was $2.65 vs. $1.35.
– **Liquidity and Capital Resources:**
– Cash, cash equivalents, and investments as of July 31, 2025: $1,483.2 million, compared to $1,129.5 million at July 31, 2024.
– Total cash from operations: $300.9 million for the fiscal year ended July 31, 2025.
## Fourth Quarter Fiscal Year 2025 Financial Highlights
– **Total Revenue:**
– $356.6 million for Q4 2025, an increase of **22%** compared to Q4 2024.
– Subscription and support revenue: $201.9 million, an increase of **33%**.
– License revenue: $93.6 million, an increase of **5%**.
– Services revenue: $61.0 million, an increase of **20%**.
– **Profitability:**
– GAAP income from operations for Q4 2025: $29.6 million, compared to $10.3 million in Q4 2024.
– Non-GAAP income from operations for Q4 2025: $73.5 million, compared to $49.0 million in Q4 2024.
– GAAP net income: $52.0 million compared to $16.8 million in Q4 2024. Earnings per share were $0.60, an increase from $0.20.
– Non-GAAP net income: $72.1 million compared to $54.0 million in Q4 2024; non-GAAP net income per share was $0.84 vs. $0.62.
## Business Outlook
### Guidance for Q1 Fiscal Year 2026:
– Expected ARR: Between $1,048 million and $1,054 million.
– Total revenue: Between $315 million and $321 million.
– Operating income: Between $1 million and $7 million.
– Non-GAAP operating income: Between $47 million and $53 million.
### Guidance for Fiscal Year 2026:
– Expected ARR: Between $1,210 million and $1,220 million.
– Total revenue: Between $1,385 million and $1,405 million.
– Operating income: Between $68 million and $88 million.
– Non-GAAP operating income: Between $259 million and $279 million.
– Operating cash flow: Between $350 million and $370 million.
## Shareholder Returns
Guidewire did not declare a quarterly dividend for Q4 2025 or mention any share repurchase programs in the provided financial results.
## Conclusion
Guidewire’s results for Q4 and fiscal year 2025 reveal robust growth in revenue and profitability compared to the previous year, with a strong outlook for continued growth into the next fiscal year.
Here are the requested tables extracted from the provided press release:
| Revenue: | Three Months Ended July 31, | Twelve Months Ended July 31, | ||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Subscription and support | $201,893 | $151,848 | $731,296 | $549,087 |
| License | 93,638 | 88,858 | 251,935 | 250,176 |
| Services | 61,039 | 50,809 | 219,228 | 181,234 |
| Total revenue | 356,570 | 291,515 | 1,202,459 | 980,497 |
| Cost of revenue(1): | ||||
| Subscription and support | 64,575 | 55,621 | 235,106 | 204,794 |
| License | 909 | 997 | 3,624 | 4,536 |
| Services | 59,275 | 48,461 | 211,676 | 187,806 |
| Total cost of revenue | 124,759 | 105,079 | 450,406 | 397,136 |
| Gross profit: | ||||
| Subscription and support | 137,318 | 96,227 | 496,190 | 344,293 |
| License | 92,729 | 87,861 | 248,311 | 245,640 |
| Services | 1,764 | 2,348 | 7,552 | -6,572 |
| Total gross profit | 231,811 | 186,436 | 752,053 | 583,361 |
| Operating expenses(1): | ||||
| Research and development | 84,097 | 75,320 | 296,160 | 269,381 |
| Sales and marketing | 65,648 | 54,784 | 230,346 | 199,033 |
| General and administrative | 52,469 | 46,018 | 184,479 | 167,520 |
| Total operating expenses | 202,214 | 176,122 | 710,985 | 635,934 |
| Income (loss) from operations | 29,597 | 10,314 | 41,068 | -52,573 |
| Interest income | 13,503 | 11,751 | 56,625 | 43,478 |
| Interest expense | -3,298 | -1,677 | -13,211 | -6,738 |
| Other income (expense), net | 1,183 | -1,504 | -35,087 | -11,005 |
| Income (loss) before provision for | 40,985 | 18,884 | 49,395 | -26,838 |
| (benefit from) income taxes | ||||
| Provision for (benefit from) income | -10,966 | 2,125 | -20,409 | -20,735 |
| taxes | ||||
| Net income (loss) | $51,951 | $16,759 | $69,804 | -$6,103 |
| Net income (loss) per share: | ||||
| Basic | $0.62 | $0.20 | $0.83 | -$0.07 |
| Diluted | $0.60 | $0.20 | $0.81 | -$0.07 |
| Shares used in computing net income | ||||
| (loss) per share: | ||||
| Basic | 84,366,889 | 82,845,815 | 83,846,793 | 82,291,483 |
| Diluted | 86,267,658 | 84,956,655 | 85,911,653 | 82,291,483 |
| ASSETS | July 31, 2025 | July 31, 2024 |
|---|---|---|
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $697,902 | $547,992 |
| Short-term investments | 451,541 | 455,576 |
| Accounts receivable, net | 140,639 | 137,339 |
| Unbilled accounts receivable, net | 130,959 | 87,031 |
| Prepaid expenses and other current | 86,374 | 67,596 |
| assets | ||
| Total current assets | 1,507,415 | 1,295,534 |
| Long-term investments | 333,754 | 125,885 |
| Unbilled accounts receivable, net | 670 | 4,157 |
| Property and equipment, net | 60,436 | 55,409 |
| Operating lease assets | 39,309 | 43,750 |
| Intangible assets, net | 12,042 | 9,005 |
| Goodwill | 393,978 | 372,214 |
| Deferred tax assets, net | 297,234 | 253,085 |
| Other assets | 76,261 | 67,255 |
| TOTAL ASSETS | $2,721,099 | $2,226,294 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $28,797 | $15,209 |
| Accrued employee compensation | 140,613 | 109,084 |
| Deferred revenue, net | 340,253 | 281,855 |
| Convertible senior notes, net | — | 398,903 |
| Other current liabilities | 35,139 | 32,584 |
| Total current liabilities | 544,802 | 837,635 |
| Lease liabilities | 30,687 | 34,721 |
| Convertible senior notes, net | 674,568 | — |
| Deferred revenue, net | 4,533 | 3,628 |
| Other liabilities | 9,279 | 7,578 |
| Total liabilities | 1,263,869 | 883,562 |
| STOCKHOLDERS’ EQUITY: | ||
| Common stock | 8 | 8 |
| Additional paid-in capital | 2,020,393 | 1,979,021 |
| Accumulated other comprehensive income | -8,922 | -12,244 |
| (loss) | ||
| Retained earnings (accumulated deficit) | -554,249 | -624,053 |
| Total stockholders’ equity | 1,457,230 | 1,342,732 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $2,721,099 | $2,226,294 |
