Detailed financial statements for Guidewire Software, Inc. (GWRE): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Guidewire Software, Inc. is a global supplier of software solutions tailored for the property and casualty insurance industry. Its primary offering is Guidewire InsuranceSuite, a comprehensive platform that incorporates core applications like PolicyCenter, BillingCenter, and ClaimCenter.
Analysis Summary
Guidewire Software, Inc. reported revenue of $1.48B in the most recent fiscal year, growing at a 5-year CAGR of 14.7%.
Trailing-twelve-month margins: gross margin 64.2%, operating margin 10.2%, net margin 9.4%. Free cash flow grew at 35.5% CAGR over 5 years.
At $161.04 (closing price, November 3, 2026), GWRE trades at a P/E of 98.20 and an ROE of 10.03%. Market capitalisation stands at $13.3B, placing it among large-cap names.
Balance sheet quality for GWRE: debt-to-equity ratio of 0.59, current ratio of 1.79 over the last 12 months, net cash position of $49.8M at the end of the last fiscal year. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $377.7M represents 271% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $514.3M | $661.1M | $719.5M | $742.3M | $743.3M | $812.6M | $905.3M | $980.5M | $1.20B | $1.48B |
| Cost of Revenue | $191.6M | $296.8M | $324.4M | $338.0M | $353.7M | $435.4M | $447.1M | $397.1M | $450.4M | $528.0M |
| Gross Profit | $318.0M | $356.1M | $395.2M | $404.3M | $389.6M | $377.2M | $458.2M | $583.4M | $752.1M | $947.4M |
| Research & Development | $130.3M | $171.7M | $188.5M | $200.6M | $201.5M | $229.2M | $249.7M | $269.4M | $296.2M | $340.1M |
| Selling, General & Admin | $165.8M | $200.0M | $205.2M | $227.6M | $293.7M | $347.4M | $358.0M | $366.6M | $414.8M | $457.4M |
| Operating Expenses | $296.1M | $371.7M | $393.7M | $428.2M | $495.1M | $576.6M | $607.7M | $635.9M | $711.0M | $797.5M |
| Operating Income | $26.6M | -$7.3M | $1.5M | -$23.9M | -$105.6M | -$199.4M | -$149.5M | -$52.6M | $41.1M | $150.3M |
| EBITDA | $47.3M | $33.8M | $69.7M | $36.3M | -$48.6M | -$176.7M | -$102.5M | $2.2M | $86.4M | $205.4M |
| Interest Expense | 0 | $6.4M | $17.3M | $17.9M | $18.7M | $19.4M | $6.7M | $6.7M | $13.2M | $13.3M |
| Pre-tax Income | $33.3M | $18,000 | $12.5M | -$24.3M | -$104.3M | -$229.7M | -$134.1M | -$26.8M | $49.4M | $164.1M |
| Income Tax | $12.1M | $18.5M | -$8.3M | $2.9M | -$37.8M | -$49.3M | -$22.2M | -$20.7M | -$20.4M | $24.8M |
| Net Income | $21.2M | -$19.7M | $20.7M | -$27.2M | -$66.5M | -$180.4M | -$111.9M | -$6.1M | $69.8M | $139.3M |
| EPS | $0.24 | -$0.25 | $0.25 | -$0.33 | -$0.80 | -$2.16 | -$1.36 | -$0.07 | $0.83 | $1.65 |
| EPS (Diluted) | $0.24 | -$0.25 | $0.25 | -$0.33 | -$0.80 | -$2.16 | -$1.36 | -$0.07 | $0.81 | $1.64 |
| Shares Outstanding (Diluted) | 75.3 M | 77.7 M | 82.7 M | 82.9 M | 83.6 M | 83.6 M | 82.2 M | 82.3 M | 85.9 M | 83.6 M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $332.6M | $359.1M | $372.5M | $411.1M |
| Gross Profit | $209.5M | $231.5M | $236.6M | $269.7M |
| Operating Income | $18.5M | $38.9M | $30.6M | $62.3M |
| EBITDA | $34.2M | $93.4M | $30.3M | $56.0M |
| Net Income | $31.3M | $60.1M | $16.5M | $31.4M |
| EPS | $0.37 | $0.71 | $0.19 | $0.38 |
| EPS (Diluted) | $0.36 | $0.70 | $0.20 | $0.38 |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $263.2M | $437.1M | $254.1M | $367.0M | $384.9M | $606.3M | $401.8M | $548.0M | $699.1M | $372.9M |
| Short-term Investments | $310.0M | $630.0M | $870.1M | $766.5M | $734.5M | $369.9M | $396.9M | $455.6M | $451.5M | $380.2M |
| Receivables | $79.4M | $131.5M | $184.8M | $174.8M | $192.9M | $227.4M | $256.5M | $242.2M | $298.2M | $334.6M |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $679.2M | $1.22B | $1.33B | $1.34B | $1.36B | $1.25B | $1.10B | $1.30B | $1.51B | $1.19B |
| Property, Plant & Equipment | $14.4M | $18.6M | $65.8M | $169.0M | $177.5M | $171.0M | $106.9M | $99.2M | $99.7M | $102.2M |
| Goodwill | $141.9M | $340.9M | $340.9M | $340.9M | $340.9M | $372.2M | $372.2M | $372.2M | $394.0M | $423.3M |
| Intangible Assets | $71.3M | $95.7M | $66.5M | $39.7M | $19.7M | $21.4M | $14.5M | $9.0M | $12.0M | $16.4M |
| Total Assets | $1.08B | $1.98B | $2.17B | $2.36B | $2.32B | $2.27B | $2.03B | $2.23B | $2.72B | $2.58B |
| Accounts Payable | $13.4M | $30.6M | $34.3M | $22.6M | $27.8M | $40.4M | $34.6M | $15.2M | $28.8M | $38.1M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $398.9M | $10.4M | 0 |
| Total Current Liabilities | $163.6M | $225.2M | $232.3M | $225.2M | $300.3M | $337.5M | $373.3M | $837.6M | $544.8M | $664.5M |
| Long-term Debt | 0 | $305.1M | $317.3M | $330.2M | $343.8M | $358.2M | $397.2M | 0 | $674.6M | $678.1M |
| Total Liabilities | $185.6M | $554.8M | $592.8M | $708.1M | $777.0M | $815.2M | $828.4M | $883.6M | $1.26B | $1.38B |
| Retained Earnings | $69.1M | $133.5M | $190.0M | $163.0M | -$66.1M | -$284.0M | -$618.0M | -$624.1M | -$554.2M | -$1.02B |
| Total Equity | $893.3M | $1.42B | $1.57B | $1.66B | $1.54B | $1.45B | $1.20B | $1.34B | $1.46B | $1.19B |
| Total Debt | 0 | $305.1M | $317.3M | $460.6M | $470.8M | $475.6M | $448.6M | $442.9M | $715.7M | $703.3M |
| Net Debt | -$573.2M | -$762.0M | -$806.9M | -$672.9M | -$648.6M | -$500.6M | -$350.1M | -$560.6M | -$434.9M | -$49.8M |
| Working Capital | $515.6M | $997.3M | $1.10B | $1.12B | $1.05B | $915.2M | $726.3M | $457.9M | $962.6M | $522.5M |
Balance Sheet (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Cash & Equivalents | $492.0M | $407.9M | $294.6M | $372.9M |
| Total Assets | $2.64B | $2.69B | $2.54B | $2.58B |
| Total Liabilities | $1.11B | $1.18B | $1.22B | $1.38B |
| Total Equity | $1.53B | $1.51B | $1.32B | $1.19B |
| Total Debt | $704.5M | $705.0M | $704.2M | $703.3M |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $21.2M | -$19.7M | $20.7M | -$27.2M | -$66.5M | -$180.4M | -$111.9M | -$6.1M | $69.8M | $139.3M |
| Depreciation & Amortization | $18.7M | $35.6M | $40.0M | $42.6M | $37.0M | $33.5M | $24.8M | $22.3M | $23.8M | $28.0M |
| Stock-based Compensation | $71.8M | $89.6M | $91.5M | $101.8M | $115.0M | $137.0M | $142.8M | $146.5M | $161.6M | $181.8M |
| Change in Working Capital | $37.4M | $23.7M | -$32.9M | -$25.0M | $29.2M | -$9.4M | -$14.1M | $52.7M | $11.3M | $1.9M |
| Operating Cash Flow | $137.2M | $140.5M | $116.1M | $113.1M | $111.6M | -$37.9M | $38.4M | $195.7M | $300.9M | $389.7M |
| Capital Expenditure | -$6.7M | -$12.0M | -$48.9M | -$25.7M | -$28.9M | -$21.8M | -$17.4M | -$18.5M | -$5.7M | -$12.1M |
| Acquisitions | -$187.6M | -$130.1M | $3.9M | $4.3M | $9.8M | -$43.8M | $10.8M | 0 | -$26.9M | -$38.0M |
| Stock Repurchased | 0 | 0 | 0 | 0 | -$161.3M | -$37.5M | -$261.8M | 0 | 0 | -$606.3M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $130.5M | $128.4M | $67.3M | $87.4M | $82.7M | -$59.7M | $21.0M | $177.2M | $295.1M | $377.7M |
Cash Flow (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Operating Cash Flow | -$67.4M | $112.0M | -$16.5M | $283.9M |
| Capital Expenditure | -$4.9M | -$3.3M | -$6.4M | -$7.2M |
| Free Cash Flow | -$72.3M | $108.8M | -$22.9M | $276.7M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $43.3M | $46.8M | $45.1M | $46.8M |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +28.5% | +8.8% | +3.2% | +0.1% | +9.3% | +11.4% | +8.3% | +22.6% | +22.7% | |
| Net Income Growth (YoY) | -192.7% | +205.4% | -231.2% | -144.5% | -171.3% | +38.0% | +94.5% | +1,243.8% | +99.5% | |
| EPS Growth (YoY) | -204.2% | +200.0% | -232.0% | -142.4% | -170.0% | +37.0% | +94.5% | +1,218.6% | +98.8% | |
| Shares Change (YoY) | +3.2% | +6.4% | +0.2% | +0.9% | -0.0% | -1.7% | +0.1% | +4.4% | -2.7% | |
| FCF Growth (YoY) | -1.6% | -47.6% | +29.9% | -5.3% | -172.2% | +135.1% | +745.2% | +66.5% | +28.0% | |
| Gross Margin | 61.8% | 53.9% | 54.9% | 54.5% | 52.4% | 46.4% | 50.6% | 59.5% | 62.5% | 64.2% |
| Operating Margin | 5.2% | -1.1% | 0.2% | -3.2% | -14.2% | -24.5% | -16.5% | -5.4% | 3.4% | 10.2% |
| EBITDA Margin | 9.2% | 5.1% | 9.7% | 4.9% | -6.5% | -21.7% | -11.3% | 0.2% | 7.2% | 13.9% |
| Net Margin | 4.1% | -3.0% | 2.9% | -3.7% | -8.9% | -22.2% | -12.4% | -0.6% | 5.8% | 9.4% |
| FCF Margin | 25.4% | 19.4% | 9.3% | 11.8% | 11.1% | -7.3% | 2.3% | 18.1% | 24.5% | 25.6% |
| Effective Tax Rate | 36.2% | 102,594.4% | -66.5% | -11.8% | 36.2% | 21.5% | 16.6% | 77.3% | -41.3% | 15.1% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $1.73 | $1.65 | $0.81 | $1.05 | $0.99 | -$0.71 | $0.26 | $2.15 | $3.44 | $4.52 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | 74.0 M | 77.7 M | 82.7 M | 82.9 M | 83.6 M | 83.6 M | 82.2 M | 82.3 M | 83.8 M | 82.9 M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 10.03% |
| Return on Invested Capital | 6.67% |
| Return on Assets | 5.41% |
| Gross Margin | 64.21% |
| Operating Margin | 10.19% |
| Net Margin | 9.44% |
Financial Health
| Debt / Equity | 0.59 |
| Current Ratio | 1.79 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 5.91 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 300.67 | -344.80 | 408.32 | -356.55 | -144.00 | -35.86 | -62.37 | -2,022.51 | 272.55 | 92.08 |
| P/B | 5.98 | 4.70 | 5.36 | 5.88 | 6.23 | 4.46 | 5.81 | 9.20 | 13.02 | 10.55 |
| P/S | 10.38 | 10.13 | 11.73 | 13.13 | 12.95 | 7.97 | 7.70 | 12.60 | 15.77 | 8.53 |
| Gross Margin | 61.8% | 53.9% | 54.9% | 54.5% | 52.4% | 46.4% | 50.6% | 59.5% | 62.5% | 64.2% |
| Operating Margin | 5.2% | -1.1% | 0.2% | -3.2% | -14.2% | -24.5% | -16.5% | -5.4% | 3.4% | 10.2% |
| Net Margin | 4.1% | -3.0% | 2.9% | -3.7% | -8.9% | -22.2% | -12.4% | -0.6% | 5.8% | 9.4% |
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Explore sector: Technology · Software - Application
More sections of GWRE: Overview · Valuation · Estimates · Technical · Ownership
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