Guidewire Software delivered a solid QQ2 2025 performance, underscored by accelerating cloud adoption, a robust ARR build, and a constructive path toward scale-enabled profitability. Total revenue rose 20% YoY to $289.5M, with ARR ending at $918M and net new ARR of $45M, ahead of prior seasonality expectations. The quarter showcased meaningful cloud momentum: Guidewire closed 12 cloud deals (including 4 full-insurance-suite deals) and added 5 new customers, including entries in Brazil and Belgium, while migrating six on-prem customers to the cloud. These dynamics support a broader transition to Guidewire Cloud Platform and underpin expectations for stronger ARR growth in H2 and into fiscal 2026. On profitability, GAAP operating income was $11.7M in QQ2, while non-GAAP operating income benefited from higher gross margins and disciplined OpEx, with the company guiding to a full-year non-GAAP operating income of $175–$185M and a 65% total gross margin (69% for subscription & support). Management highlighted ongoing investments in product development and a deliberate hiring trajectory to support cloud and AI-enabled capabilities, which should help lift long-run margins as ARR monetizes with higher-tier cloud deployments. The balance sheet remains highly liquid with ~$697.5M of cash and equivalents and ~$1.16B in cash + short-term investments, supporting continued debt optimization and capex in line with growth plans. The outlook also emphasizes seasonality in ARR ramps (notably stronger in Q4) and FX exposure, which could pose modest near-term headwinds to ARR translation if currencies move unfavorably. Overall, the investment thesis rests on (i) continued cloud enrollment and cross-sell into the installed base, (ii) an expanding partner and marketplace ecosystem, (iii) the strategic use of AI to augment core insurance processes, and (iv) a disciplined focus on converting backlog-driven ARR into durable, high-visibility revenue growth.” ,