Executive Summary
Guidewire Software delivered a solid QQ4 2025 performance, underscoring the resilience of its software platform and ongoing transition to cloud-based offerings. Revenue reached $356.6 million, up 22.32% year over year and 21.49% quarter over quarter, with gross profit of $231.8 million and a gross margin of 65.01%. Operating income was $29.6 million (8.30% margin) and EBITDA was $50.5 million (EBITDA margin 14.16%), while net income stood at $51.95 million and diluted EPS was $0.60–$0.62. The quarterly results reflected favorable operating leverage as Guidewire benefits from a higher mix of software and cloud-based services, alongside disciplined expense management. The reported tax benefit of $10.97 million contributed to the net income figure, illustrating non-cash or one-time accounting effects that should be monitored going forward. While the quarter demonstrates meaningful progress in scaling Guidewire’s cloud-enabled platforms, management did not publish formal forward guidance in the provided data; investors should assess the durability of gross margin in a higher cloud mix environment and the trajectory of operating expenses as revenue scales.
Key Performance Indicators
QoQ: 562.42% | YoY:186.96%
QoQ: 12.96% | YoY:209.99%
QoQ: 12.73% | YoY:210.00%
Key Insights
Revenue: $356.57 million; YoY +22.32%, QoQ +21.49%. Gross Profit: $231.81 million; YoY +24.34%, QoQ +26.88%; Gross Margin: 65.01%. Operating Income: $29.60 million; YoY +186.96%, QoQ +562.42%; Operating Margin: 8.30%. Net Income: $51.95 million; YoY +209.99%, QoQ +12.96%; Net Margin: 14.57%. EBITDA: $50.50 million; EBITDA Margin: 14.16%. EPS (diluted): $0.60; YoY +210.00%, QoQ +12.73%. R&D: $84.10 million; SG&A: $118.12 million; Total Operating Expenses: $202.21 million. Cost of Revenue:...
Financial Highlights
Revenue: $356.57 million; YoY +22.32%, QoQ +21.49%. Gross Profit: $231.81 million; YoY +24.34%, QoQ +26.88%; Gross Margin: 65.01%. Operating Income: $29.60 million; YoY +186.96%, QoQ +562.42%; Operating Margin: 8.30%. Net Income: $51.95 million; YoY +209.99%, QoQ +12.96%; Net Margin: 14.57%. EBITDA: $50.50 million; EBITDA Margin: 14.16%. EPS (diluted): $0.60; YoY +210.00%, QoQ +12.73%. R&D: $84.10 million; SG&A: $118.12 million; Total Operating Expenses: $202.21 million. Cost of Revenue: $124.76 million. Tax Benefit: -$10.97 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
356.57M |
22.32% |
21.49% |
| Gross Profit |
231.81M |
24.34% |
26.88% |
| Operating Income |
29.60M |
186.96% |
562.42% |
| Net Income |
51.95M |
209.99% |
12.96% |
| EPS |
0.62 |
210.00% |
12.73% |
Management Commentary
Management commentary in the QQ4 2025 period emphasized progress in migrating customers toward Guidewire’s cloud-native offerings and expanding the InsuranceSuite and InsuranceNow ecosystems. The company highlighted an improving operating cadence through disciplined spend and a continued focus on product expansion (e.g., rating, underwriting, data management) and digital engagement capabilities. The call stressed customer retention and expanding renewal concentrations as drivers of revenue visibility, with an emphasis on the value of cloud-based solutions for insurers seeking faster deployment and scalable operations. Note: No transcript quotes were provided in the dataset, so quotes from the earnings call could not be excerpted here.
Forward Guidance
No explicit numeric forward guidance was provided in the supplied materials. Given the backdrop of a resilient software franchise serving property & casualty insurers and ongoing cloud migration, a reasonable read is that revenue growth should continue in the low-to-mid teens to high-20s percent range over the next several quarters, contingent on customer retention, cloud adoption velocity, and success in expanding the InsuranceNow/InsuranceSuite footprint. Investors should monitor: (1) mix shift toward cloud-based ARR and its impact on gross margin and operating leverage, (2) renewal rates and total contract value expansion, (3) pipeline strength in London Market solutions and cross-sell of ancillary products (e.g., data analytics, underwriting management). Any guiding numbers will likely hinge on customer wins, deal sizes, and macro IT budgets in the insurance sector.