Guidewire delivered a strong start to fiscal 2025, underscored by robust cloud adoption and expanding enterprise deals. Total revenue reached $263 million in Q1 2025, up 27% year over year, with subscription and support revenue of $170 million (+33% YoY). ARR ended at $874 million, at the high end of guidance, signaling durable growth from Guidewire Cloud Platform and InsuranceSuite deployments. The company demonstrated improving profitability on a non-GAAP basis, with subscription and support gross margin of 70% and overall gross margin of 63%, contributing to an operating profit of $34.7 million versus an expected midpoint of $21 million. Management highlighted accelerating cloud momentum, a growing ecosystem of partners, and a clear AI roadmap as core drivers for future growth. Importantly, Guidewire maintained its FY2025 targets, raising the relevance of its cloud migration strategy and international expansion while signaling ongoing investments in AI-enabled capabilities. However, near-term cash flow remained negative on a reported basis due to working capital dynamics around client bonuses and revenue mix, a factor commonly observed in Q1 across software peers. The guidance reflects continued cloud-led expansion, with FY2025 ARR guided to $995–$1,005 million, total revenue of $1.155–$1.167 billion, and non-GAAP operating income in the range of $164–$176 million.