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Guidewire, a leading platform for Property and Casualty (P&C) insurers, reported robust financial results for the fourth quarter and fiscal year 2025, ending July 31, 2025. The company achieved significant growth, surpassing $1 billion in annual recurring revenue (ARR) and delivering strong profitability metrics, as highlighted by a 10-year agreement with a major Tier-1 insurer.
Total Revenue: $1,202.5M for FY2025, up 23% from FY2024.
ARR Milestone: Reached $1.041B, with 19% growth on a constant currency basis.
Q4 Performance: $356.6M revenue, up 22%; executed 19 cloud deals.
Profitability: GAAP net income of $69.8M; non-GAAP net income of $227.9M.
Cash Flow: Generated $300.9M in operating cash flow for FY2025.
FY2026 Outlook: Projects ARR of $1.21B–$1.22B and revenue of $1.385B–$1.405B.
Guidewire reported total revenue of $1,202.5 million for FY2025, a 23% increase from $980.5 million in FY2024. Key revenue segments include:
Subscription and Support: $731.3M, up 33%.
License Revenue: $251.9M, up 1%.
Services Revenue: $219.2M, up 21%.
Annual recurring revenue (ARR) reached $1,032 million on a constant currency basis, compared to $864 million in FY2024, reflecting 19% growth. After revaluation to current currency rates as of July 31, 2025, ARR was $1,041 million. Fully ramped ARR grew by 22%, showcasing strong customer contract expansion.
GAAP Income from Operations: $41.1M, a significant improvement from a $52.6M loss in FY2024.
Non-GAAP Income from Operations: $208.2M, up from $99.5M in FY2024.
GAAP Net Income: $69.8M ($0.81 per share, 85.9M shares outstanding), compared to a $6.1M loss in FY2024.
Non-GAAP Net Income: $227.9M ($2.65 per share), up from $114.5M ($1.35 per share) in FY2024.
Guidewire’s cash, cash equivalents, and investments stood at $1,483.2 million as of July 31, 2025, up from $1,129.5 million in FY2024. The company generated $300.9 million in cash from operations, reflecting a 25% operating cash flow margin.
Q4 revenue reached $356.6 million, a 22% increase from $291.5 million in Q4 FY2024:
Subscription and Support: $201.9M, up 33%.
License Revenue: $93.6M, up 5%.
Services Revenue: $61.0M, up 20%.
GAAP Income from Operations: $29.6M, compared to $10.3M in Q4 FY2024.
Non-GAAP Income from Operations: $73.5M, up from $49.0M.
GAAP Net Income: $52.0M ($0.60 per share, 86.3M shares outstanding), compared to $16.8M in Q4 FY2024.
Non-GAAP Net Income: $72.1M ($0.84 per share), up from $54.0M ($0.62 per share).
Guidewire issued the following guidance for Q1 FY2026:
ARR: $1,048M–$1,054M.
Total Revenue: $315M–$321M.
Operating Income: $1M–$7M.
Non-GAAP Operating Income: $47M–$53M.
For the full FY2026, Guidewire projects:
ARR: $1,210M–$1,220M.
Total Revenue: $1,385M–$1,405M.
Operating Income: $68M–$88M.
Non-GAAP Operating Income: $259M–$279M.
Operating Cash Flow: $350M–$370M.
Guidewire’s strong performance was driven by 19 cloud deals in Q4, including a significant 10-year agreement with a Tier-1 insurer, highlighting the maturity of its cloud platform. The company’s focus on cloud-based solutions, data analytics, and AI continues to resonate with over 570 insurers across 43 countries. CEO Mike Rosenbaum emphasized the platform’s referenceability, driving larger deal sizes and deeper customer commitments. CFO Jeff Cooper noted the company’s operational discipline, achieving a 25% cash flow margin while exceeding financial targets.
Guidewire uses non-GAAP metrics like gross profit, income from operations, net income, and free cash flow, excluding items such as stock-based compensation and amortization of intangibles. During FY2025, $9.5 million of recurring contract value was recognized as services revenue due to multi-performance obligation arrangements, though this did not impact ARR calculations.
Guidewire is the trusted platform for P&C insurers, serving over 570 insurers in 43 countries. Its cloud-based solutions, leveraging data, analytics, and AI, enable efficient engagement and innovation. With 1,700+ successful projects and the largest R&D team and partner ecosystem in P&C, Guidewire continues to lead in cloud platform excellence.
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