Guidewire Software Inc. ( (GWRE) ) has released its Q4 earnings. Here is a breakdown of the information Guidewire Software Inc. presented to its investors.
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Guidewire Software Inc. is a leading provider of software products for property and casualty (P&C) insurers, offering a cloud-based platform that integrates data, analytics, and artificial intelligence to help insurers innovate and grow efficiently.
Guidewire Software Inc. recently announced its financial results for the fourth quarter and fiscal year 2025, showcasing significant growth and strong financial performance. The company closed the year with a remarkable fourth quarter, highlighted by 19 cloud deals and a major 10-year agreement with a Tier-1 insurer, pushing its annual recurring revenue (ARR) past the $1 billion mark.
The fiscal year 2025 saw Guidewire’s total revenue increase by 23% to $1,202.5 million, driven by a 33% rise in subscription and support revenue. The company also reported a GAAP net income of $69.8 million, a substantial improvement from the previous year’s loss. Additionally, Guidewire’s cash flow from operations margin reached 25%, reflecting strong operational discipline. The fourth quarter alone saw a 22% increase in total revenue compared to the same period last year.
Guidewire’s profitability metrics also showed significant improvement, with GAAP income from operations reaching $41.1 million for the fiscal year, compared to a loss in the previous year. Non-GAAP income from operations more than doubled to $208.2 million. The company’s liquidity position strengthened, with cash, cash equivalents, and investments totaling $1,483.2 million by the end of the fiscal year.
Looking ahead, Guidewire’s management remains optimistic, projecting continued growth in ARR and revenue for fiscal year 2026. The company expects to maintain its momentum with a focus on expanding its cloud-based offerings and deepening customer relationships, positioning itself for sustained success in the P&C insurance sector.