Guidewire Software Inc (0J1G.L) Q1 2025 Earnings Report

Revenue: $262.9 million; YoY growth 26.8%, QoQ change -9.8%. Gross profit: $158.39 million; gross margin 60.25%; YoY gross profit up ~41.0%, QoQ down ~15.0%. Operating expenses: R&D $68.88 million; G&A $42.75 million; Selling & Marketing $51.48 million; total operating expenses $163.11 million; OpEx as a % of revenue ~62.1%.
EBITDA: $10.68 million; EBITDA margin ~4.06%. Operating income: -$4.72 million; operating margin -1.80%. Total other income/expenses: $7.49 million net of items; Income before tax: $2.77 million; Income tax expense: -$6.37 million (tax benefit). Net income: $9.14 million; Net income margin: 3.48%; Earnings per share (basic/diluted): $0.11. Weighted average shares: ~83.28 million (basic), ~85.96 million (diluted).
Cash flow: Net cash from operating activities of -$62.31 million; capex $5.08 million; free cash flow -$67.38 million. Cash at end of period: $824.75 million; cash at beginning: $549.18 million.
Balance sheet: Total assets $2.5967 billion; cash and cash equivalents $823.56 million; short-term investments $514.77 million; total current assets $1.6373 billion; total liabilities $1.3287 billion; long-term debt $704.75 million; total debt $983.35 million; stockholders’ equity $1.2680 billion. Key liquidity ratios: current ratio 2.63; quick ratio 2.63; cash ratio 1.34. Leverage: debt-to-capitalization 0.437; debt ratio 0.379; equity multiplier 2.05.
Valuation signals: Price-to-sales ~59.17; price-to-earnings ~425.5; EV multiple ~993.6; indicative of a lofty multiple vs. peers, underscoring the need for continued evidence of profitability and sustained revenue growth.