US Market News
1月前
Guidewire Announces Third Quarter Fiscal Year 2026 Financial ResultsJune 4, 2026 4:05 PM
Business Wire Guidewire (NYSE: GWRE) today announced its financial results for the fiscal quarter ended April 30, 2026. “Third-quarter results reinforce our confidence in the strength and continuing momentum of our business, and set us up well for what should be a record fourth quarter,” said Mike Rosenbaum, chief executive officer, Guidewire. “It’s clear that our strategy and market position are resonating with insurers as they focus on modernizing core systems, migrating critical business functions to our cloud platform solutions, and adopting AI across our applications.” “We are raising our fiscal year outlook for revenue, operating income, and cash flow based on better than expected Q3 results and greater visibility as opportunities progress through our pipeline,” said Jeff Cooper, chief financial officer, Guidewire. “ARR grew 19% in Q3 and total revenue grew 27%. These strong growth dynamics reflect the pace of wins across products, regions, and customers of all sizes and reinforce the durability of our business model.” Third Quarter Fiscal Year 2026 Financial Highlights Revenue Total revenue for the third quarter of fiscal year 2026 was $372.5 million, an increase of 27% from the same quarter in fiscal year 2025. Subscription and support revenue was $244.7 million, an increase of 35%; license revenue was $56.0 million, a decrease of 2%; and services revenue was $71.8 million, an increase of 32%, each compared to the same quarter in fiscal year 2025. As of April 30, 2026, annual recurring revenue, or ARR, was $1,147 million, compared to $1,041 million as of July 31, 2025. ARR results for interim quarterly periods in fiscal year 2026 are based on actual currency rates at the end of fiscal year 2025, held constant throughout the year. Profitability GAAP income from operations was $30.6 million for the third quarter of fiscal year 2026, compared with $4.5 million for the same quarter in fiscal year 2025. Non-GAAP income from operations was $77.8 million for the third quarter of fiscal year 2026, compared with $46.1 million for the same quarter in fiscal year 2025. GAAP net income was $16.5 million for the third quarter of fiscal year 2026, compared with $46.0 million for the same quarter in fiscal year 2025. GAAP net income was negatively impacted by a foreign currency loss of $20.1 million during the third quarter of fiscal year 2026, compared to a foreign currency gain of $34.2 million for the same quarter in fiscal year 2025 due to fluctuations in foreign exchange rates. GAAP diluted net income per share was $0.19 for the third quarter of fiscal year 2026, based on diluted weighted average shares outstanding of 85.1 million, compared with $0.54 for the same quarter in fiscal year 2025, based on diluted weighted average shares outstanding of 85.9 million. Non-GAAP net income was $69.6 million for the third quarter of fiscal year 2026, compared with $47.4 million for the same quarter in fiscal year 2025. Non-GAAP diluted net income per share was $0.82 for the third quarter of fiscal year 2026, based on diluted weighted average shares outstanding of 85.1 million, compared with non-GAAP diluted net income per share of $0.55 for the same quarter in fiscal year 2025, based on diluted weighted average shares outstanding of 85.9 million. Liquidity and Capital Resources Guidewire had $1,146.8 million in cash, cash equivalents, and investments at April 30, 2026, compared to $1,483.2 million at July 31, 2025. In January 2026, Guidewire’s board of directors authorized a new $500 million share repurchase program. As part of this program, Guidewire repurchased 1,696,180 shares of common stock at an average price of $147.07 in the quarter ended April 30, 2026. As of April 30, 2026, $240.5 million remains available for purchases under the share repurchase program. Business Outlook Guidewire is issuing the following outlook for the fourth quarter of fiscal year 2026 based on current expectations: Ending ARR between $1,229 million and $1,237 million Subscription and support revenue between $259 million and $265 million Total revenue between $396 million and $406 million GAAP operating income between $36 million and $46 million Non-GAAP operating income between $86 million and $96 million Guidewire is issuing the following updated outlook for fiscal year 2026 based on current expectations: Ending ARR between $1,229 million and $1,237 million Subscription and support revenue between $963 million and $969 million Total revenue between $1,460 million and $1,470 million GAAP operating income between $124 million and $134 million Non-GAAP operating income between $314 million and $324 million Operating cash flow between $365 million and $380 million Conference Call Information What: Guidewire Third Quarter Fiscal Year 2026 Financial Results Conference Call When: Thursday, June 4, 2026 Time: 2:00 p.m. PT (5:00 p.m. ET) Dial-In: (669) 444-9171 Meeting ID: 946 7934 9546 Password: 889559 Webcast: http://ir.guidewire.com/ (live and replay) The webcast will be archived on Guidewire’s website (www.guidewire.com) for a period of three months. A quarterly earnings supplemental presentation providing additional information and analysis can be found on our investor relations website (www.guidewire.com). Non-GAAP Financial Measures and Other Metrics This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP tax provision (benefit), non-GAAP net income (loss) per share, and free cash flow. Non-GAAP gross profit and non-GAAP income (loss) from operations exclude stock-based compensation, amortization of intangibles, and acquisition consideration holdback. Non-GAAP net income (loss), non-GAAP net income (loss) per share, and non-GAAP tax provision (benefit) also exclude the amortization of debt issuance costs from our convertible senior notes, changes in fair value of strategic investments, (gains) losses on sale of strategic investments, retirement of debt, unrealized foreign exchange rate (gains) losses, and related tax effects of the non-GAAP adjustments. Free cash flow consists of net cash flow provided by (used in) operating activities, less cash used for purchases of property and equipment and capitalized software development costs. These non-GAAP measures enable us to analyze our financial performance without the effects of certain non-cash items such as amortization and stock-based compensation. Annual recurring revenue (“ARR”) is used to quantify the annualized recurring value outlined in active customer contracts at the end of a reporting period. ARR includes the annualized recurring value of term licenses, subscription agreements, support contracts, and hosting agreements based on customer contractual terms and invoicing activities for the current reporting period, which may not be the same as the timing and amount of revenue recognized. ARR reflects all fee changes due to contract renewals, non-renewals, expansion, cancellations, attrition, or renegotiations at a higher or lower fee arrangement that are effective as of the ARR reporting date. All components of the licensing and other arrangements that are not expected to recur (primarily perpetual licenses and professional services) are excluded from our ARR calculations. In some arrangements with multiple performance obligations, a portion of recurring license and support or subscription contract value is allocated to services revenue for revenue recognition purposes, but does not get allocated for purposes of calculating ARR. This revenue allocation generally only impacts the initial term of the contract. This means that if we increase arrangements with multiple performance obligations that include services at discounted rates, more of the total contract value would be recognized as services revenue, but our reported ARR amount would not be impacted. During the nine months ended April 30, 2026, the recurring license and support or subscription contract value recognized as services revenue was $5.9 million. Guidewire believes that these non-GAAP financial measures and other metrics provide useful information to management and investors regarding certain financial and business trends relating to Guidewire’s financial condition and results of operations. Guidewire’s management uses these non-GAAP measures and other metrics to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation, and for budgeting and planning purposes. Guidewire believes that the use of these non-GAAP financial measures and other metrics provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Guidewire’s financial measures with other software companies, many of which present similar non-GAAP financial measures and other metrics to investors. Guidewire’s management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Guidewire’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Guidewire urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including the financial tables at the end of this press release, and not to rely on any single financial measure to evaluate Guidewire’s business. About Guidewire Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. More than 570 insurers in 43 countries, from new ventures to the largest and most complex in the world, rely on Guidewire products. With core systems leveraging data and analytics, digital, and artificial intelligence, Guidewire defines cloud platform excellence for P&C insurers. We are proud of our unparalleled implementation record, with 1,700+ successful projects supported by the industry’s largest R&D team and SI partner ecosystem. Our marketplace represents the largest partner community in P&C, where customers can access hundreds of applications to accelerate integration, localization, and innovation. Guidewire uses its Investor Relations website (ir.guidewire.com), X feed (@Guidewire_PandC), and LinkedIn page (www.linkedin.com/company/guidewire-software) as a means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD. The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to Guidewire’s press releases, filings with the Securities and Exchange Commission, public conference calls, and webcasts. NOTE: For information about Guidewire’s trademarks, visit www.guidewire.com/legal-notices. Cautionary Language Concerning Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and targets, business and product strategies, sales and pipeline momentum, and market opportunities. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Guidewire’s control. Guidewire’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Guidewire’s most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission (the “SEC”) as well as other documents that may be filed by Guidewire from time to time with the SEC. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: fluctuations in our quarterly and annual operating results; our reliance on sales to, and renewals from, a relatively small number of large customers and the related substantial negotiating leverage of these customers; the length and complexity of our sales, product development, and implementation cycles; our competitive environment and changes thereto; our ability to effectively manage international expansion; issues in the development and use of artificial intelligence and machine learning technologies and the related evolving regulatory environment; our making long-term pricing commitments in our customer contracts based on available information and estimates about our future costs that may change; our ability to expand adoption of our cloud-based products and services, and the risk that any of our established products may fail to satisfy customer demands or maintain market acceptance; seasonal and other variations related to our customer agreements and related revenue recognition may cause significant fluctuations in our results of operations, ARR, and cash flows; our ability to develop, introduce, and market new and enhanced versions of our products and services; our ability to retain existing and hire new personnel, including managing a hybrid and geographically distributed workforce; errors or failures in our products or services, as well as service interruptions or failure of the third-party service providers we rely on; our ability to sell our services and products is highly dependent on the quality of our professional services and third-party global system integrators partners; use of AI by our workforce may present risks to our business; our services revenue produces lower gross margins than our license, subscription and support revenue; the impact of global events (including, without limitation, ongoing global conflicts, inflation, high interest rates, economic volatility, political uncertainties, tariffs, bank failures and associated financial instability, and supply chain issues); data security breaches of our cloud-based services and products or unauthorized access to our employees’ or our customers’ data; the impact of new regulations and laws (including, without limitation, security, privacy, AI and machine learning, tax regulations and laws, and accounting standards); assertions by third parties that we violate their intellectual property rights; stock price volatility regardless of our operating performance; and other risks and uncertainties. Past performance is not indicative of future results. The forward-looking statements included in this press release represent Guidewire’s views as of the date of this press release. Guidewire anticipates that subsequent events and developments will cause its views to change. Guidewire undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Guidewire’s views as of any date subsequent to the date of this press release. GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) April 30,
2026 July 31,
2025 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 294,634 $ 697,902 Short-term investments 454,900 451,541 Accounts receivable, net 138,853 140,639 Unbilled accounts receivable, net 224,769 130,959 Prepaid expenses and other current assets 102,255 86,374 Total current assets 1,215,410 1,507,415 Long-term investments 397,267 333,754 Unbilled accounts receivable, net 83 670 Property and equipment, net 66,647 60,436 Operating lease assets 36,443 39,309 Intangible assets, net 17,727 12,042 Goodwill 421,111 393,978 Deferred tax assets, net 293,911 297,234 Other assets 86,533 76,261 TOTAL ASSETS $ 2,535,132 $ 2,721,099 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 34,972 $ 28,797 Accrued employee compensation 117,531 140,613 Deferred revenue, net 300,641 340,253 Other current liabilities 44,032 35,139 Total current liabilities 497,175 544,802 Lease liabilities 27,031 30,687 Convertible senior notes, net 677,206 674,568 Deferred revenue, net 3,718 4,533 Other liabilities 12,858 9,279 Total liabilities 1,217,987 1,263,869 STOCKHOLDERS’ EQUITY: Common stock 8 8 Additional paid-in capital 2,169,769 2,020,393 Accumulated other comprehensive income (loss) (7,105 ) (8,922 ) Retained earnings (accumulated deficit) (845,527 ) (554,249 ) Total stockholders’ equity 1,317,145 1,457,230 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,535,132 $ 2,721,099 GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands except share and per share data) Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 Revenue: Subscription and support $ 244,738 $ 181,823 $ 704,150 $ 529,403 License 55,996 57,233 157,491 158,297 Services 71,807 54,452 202,634 158,189 Total revenue 372,541 293,508 1,064,276 845,889 Cost of revenue(1): Subscription and support 67,882 57,411 195,737 170,531 License 374 892 1,460 2,715 Services 67,639 52,507 189,390 152,401 Total cost of revenue 135,896 110,810 386,587 325,647 Gross profit: Subscription and support 176,856 124,412 508,413 358,872 License 55,622 56,341 156,031 155,582 Services 4,167 1,945 13,244 5,788 Total gross profit 236,645 182,698 677,689 520,242 Operating expenses(1): Research and development 87,868 72,915 249,510 212,063 Sales and marketing 68,201 57,768 193,934 164,698 General and administrative 49,939 47,547 146,689 132,010 Total operating expenses 206,008 178,230 590,133 508,771 Income (loss) from operations 30,637 4,468 87,556 11,471 Interest income 11,295 13,794 38,432 43,122 Interest expense (3,318 ) (3,668 ) (9,965 ) (9,913 ) Other income (expense), net (18,854 ) 34,074 2,791 (36,270 ) Income (loss) before provision for (benefit from) income taxes 19,760 48,668 118,814 8,410 Provision for (benefit from) income taxes 3,289 2,677 10,926 (9,443 ) Net income (loss) $ 16,471 $ 45,991 $ 107,888 $ 17,853 Net income (loss) per share: Basic $ 0.20 $ 0.55 $ 1.27 $ 0.21 Diluted $ 0.19 $ 0.54 $ 1.26 $ 0.21 Shares used in computing net income (loss) per share: Basic 84,241,069 84,044,661 84,630,718 83,671,443 Diluted 85,065,999 85,880,643 85,945,646 85,654,903 (1)Amounts include stock-based compensation expense as follows: Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 Stock-based compensation expense: Cost of subscription and support revenue $ 3,391 $ 3,598 $ 10,437 $ 10,511 Cost of license revenue — 32 — 104 Cost of services revenue 6,108 5,055 18,203 15,218 Research and development 12,061 10,267 36,277 30,560 Sales and marketing 11,598 10,832 35,014 31,400 General and administrative 11,784 10,573 35,085 31,572 Total stock-based compensation expense $ 44,941 $ 40,357 $ 135,015 $ 119,365 GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 16,471 $ 45,991 $ 107,888 $ 17,853 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 7,230 5,965 20,632 17,538 Amortization of debt issuance costs 983 1,058 2,947 2,782 Amortization of contract costs 8,508 7,285 25,812 22,518 Stock-based compensation 44,941 40,357 135,015 119,365 Changes to allowance for credit losses and revenue reserves 205 17 2,542 1,107 Deferred income tax (544 ) (1,692 ) 922 (15,851 ) Amortization of premium (accretion of discount) on available-for-sale securities, net (1,369 ) (2,064 ) (5,377 ) (8,613 ) (Gains) losses on sale of strategic investments (632 ) — (632 ) (3,671 ) Changes in fair value of strategic investments (599 ) 103 (554 ) 341 Loss on retirement of debt — — — 53,565 Other non-cash items affecting net income (loss) 11 53 18 56 Changes in operating assets and liabilities: Accounts receivable 23,941 (23,426 ) 276 (10,609 ) Unbilled accounts receivable (50,119 ) (50,377 ) (93,214 ) (74,471 ) Prepaid expenses and other assets (19,534 ) (12,098 ) (33,815 ) (29,305 ) Operating lease assets 987 1,375 2,866 1,983 Accounts payable 6,097 3,439 7,910 13,589 Accrued employee compensation 34,079 26,278 (23,578 ) (20,600 ) Deferred revenue (8,266 ) (7,354 ) (40,781 ) (24,876 ) Lease liabilities (2,242 ) (970 ) (3,572 ) (1,121 ) Other liabilities 1,035 (1,590 ) 525 (5,544 ) Net cash provided by (used in) operating activities 61,183 32,350 105,830 56,036 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of available-for-sale securities (109,366 ) (242,588 ) (644,915 ) (672,330 ) Maturities and sales of available-for-sale securities 199,695 226,776 582,638 529,887 Purchases of property and equipment (1,772 ) (703 ) (9,934 ) (2,336 ) Capitalized software development costs (5,747 ) (3,816 ) (13,939 ) (10,972 ) Acquisition of strategic investments (12,242 ) (1,000 ) (14,590 ) (1,772 ) Sale of strategic investment 781 — 781 5,671 Acquisition of business, net of acquired cash (200 ) (26,724 ) (33,453 ) (26,724 ) Net cash provided by (used in) investing activities 71,148 (48,055 ) (133,412 ) (178,576 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of convertible senior notes, net of issuance costs — — — 671,840 Payment for the retirement of convertible senior notes — — — (353,535 ) Payment for the maturity of convertible senior notes — (179,061 ) — (179,061 ) Purchase of capped calls — — — (58,788 ) Payment of revolving credit facility costs — — — (2,065 ) Proceeds from issuance of common stock under employee stock purchase plan — — 13,364 — Proceeds from issuance of common stock upon exercise of stock options 8 710 539 3,174 Repurchase and retirement of common stock (244,255 ) — (392,447 ) — Net cash provided by (used in) financing activities (244,247 ) (178,351 ) (378,544 ) 81,565 Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash (1,395 ) 6,888 1,666 3,303 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (113,312 ) (187,168 ) (404,460 ) (37,672 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period 407,946 698,680 699,094 549,184 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period $ 294,634 $ 511,512 $ 294,634 $ 511,512 GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited, in thousands) The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below: Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 Gross profit reconciliation: GAAP gross profit $ 236,645 $ 182,698 $ 677,689 $ 520,242 Non-GAAP adjustments: Stock-based compensation 9,498 8,685 28,639 25,833 Amortization of intangibles 1,180 485 3,045 1,455 Non-GAAP gross profit $ 247,324 $ 191,868 $ 709,373 $ 547,530 Income (loss) from operations reconciliation: GAAP income (loss) from operations $ 30,637 $ 4,468 $ 87,556 $ 11,471 Non-GAAP adjustments: Stock-based compensation 44,941 40,357 135,015 119,365 Amortization of intangibles 1,765 1,234 4,968 3,879 Acquisition consideration holdback 440 — 1,064 — Non-GAAP income (loss) from operations $ 77,784 $ 46,059 $ 228,604 $ 134,715 Net income (loss) reconciliation: GAAP net income (loss) $ 16,471 $ 45,991 $ 107,888 $ 17,853 Non-GAAP adjustments: Stock-based compensation 44,941 40,357 135,015 119,365 Amortization of intangibles 1,765 1,234 4,968 3,879 Acquisition consideration holdback 440 — 1,064 — Amortization of debt issuance costs 984 1,058 2,947 2,782 Changes in fair value of strategic investments (599 ) 103 (554 ) 341 (Gains) losses on sale of strategic investments (632 ) — (632 ) (3,671 ) Retirement of debt — — — 53,565 Unrealized foreign exchange rate (gains) losses(1) 20,141 (34,176 ) (1,513 ) (13,967 ) Tax impact of non-GAAP adjustments (13,864 ) (7,157 ) (39,295 ) (35,330 ) Non-GAAP net income (loss) $ 69,648 $ 47,409 $ 209,888 $ 144,817 Tax provision (benefit) reconciliation: GAAP tax provision (benefit) $ 3,289 $ 2,677 $ 10,926 $ (9,443 ) Non-GAAP adjustments: Stock-based compensation 8,881 6,933 26,154 18,110 Amortization of intangibles 349 212 963 586 Acquisition consideration holdback 87 — 206 — Amortization of debt issuance costs 194 182 571 426 Changes in fair value of strategic investments (118 ) 18 (110 ) 51 (Gains) losses on sale of strategic investments — — — (520 ) Retirement of debt — — — 7,585 Unrealized foreign exchange rate (gains) losses(1) 3,980 (5,871 ) (152 ) (3,011 ) Tax impact of non-GAAP adjustments 490 5,684 11,664 12,103 Non-GAAP tax provision (benefit) $ 17,153 $ 9,834 $ 50,222 $ 25,887 GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited, in thousands except share and per share data) The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below: Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 Net income (loss) per share reconciliation: GAAP net income (loss) per share – diluted $ 0.19 $ 0.54 $ 1.26 $ 0.21 Non-GAAP adjustments: Stock-based compensation 0.53 0.47 1.57 1.39 Amortization of intangibles 0.02 0.01 0.06 0.05 Acquisition consideration holdback — — — — Amortization of debt issuance costs 0.01 0.01 0.03 0.03 Changes in fair value of strategic investments (0.01 ) — (0.01 ) — (Gains) losses on sale of strategic investments (0.01 ) — (0.01 ) (0.04 ) Retirement of debt — — — 0.63 Unrealized foreign exchange rate (gains) losses(1) 0.24 (0.40 ) (0.02 ) (0.16 ) Tax impact of non-GAAP adjustments (0.16 ) (0.08 ) (0.46 ) (0.41 ) Non-GAAP net income (loss) per share – diluted $ 0.82 $ 0.55 $ 2.44 $ 1.70 Shares used in computing non-GAAP net income (loss) per share amounts: GAAP and pro forma weighted average shares — diluted 85,065,999 85,880,643 85,945,646 85,654,903 (1) During the third quarter of fiscal year 2026, we began excluding unrealized foreign currency exchange rate (gains) losses as a non-GAAP adjustment to other income (expense), net. Accordingly, we have recast previously reported amounts in our non-GAAP schedules. The following table summarizes our free cash flow for the periods indicated below: Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 Free cash flow: Net cash provided by (used in) operating activities $ 61,183 $ 32,350 $ 105,830 $ 56,036 Purchases of property and equipment (1,772 ) (703 ) (9,934 ) (2,336 ) Capitalized software development costs (5,747 ) (3,816 ) (13,939 ) (10,972 ) Free cash flow $ 53,664 $ 27,831 $ 81,957 $ 42,728 GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Outlook The following table reconciles the specific items excluded from GAAP outlook in the calculation of non-GAAP outlook for the periods indicated below (in millions): Fourth Quarter Fiscal Year 2026 Fiscal Year 2026 Income (loss) from operations outlook reconciliation: GAAP income (loss) from operations $36 — $46 $124 — $134 Non-GAAP adjustments: Stock-based compensation 47 — 47 182 — 182 Amortization of intangibles & other 2 — 2 9 — 9 Non-GAAP income (loss) from operations $86 — $96 $314 — $324 Certain figures included in this document have been subjected to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the figures that precede them. View source version on businesswire.com: https://www.businesswire.com/news/home/20260604880417/en/ Investor Contact:
Alex Hughes
Guidewire
(650) 356-4921
ir@guidewire.com Media Contact:
Melissa Cobb
Guidewire
(650) 464-1177
mcobb@guidewire.com Original: Guidewire Announces Third Quarter Fiscal Year 2026 Financial Results
US Market News
4月前
Guidewire Announces Second Quarter Fiscal Year 2026 Financial ResultsMarch 5, 2026 4:05 PM
Business Wire
Guidewire (NYSE: GWRE) today announced its financial results for the fiscal quarter ended January 31, 2026.
“We delivered another outstanding quarter highlighted by consistent execution, strong growth, and durable demand for large, multi-year deals,” said Mike Rosenbaum, chief executive officer, Guidewire. “Our momentum continues to build as AI drives core system modernization activity, product development velocity, and customer and partner engagement.”
“We are raising our fiscal year outlook across the board and this is informed by our better than expected Q2 results and the continued strength of our pipeline,” said Jeff Cooper, chief financial officer, Guidewire. “ARR growth of 22% year-over-year reflects the strong sales momentum and unique durability we have established.”
Second Quarter Fiscal Year 2026 Financial Highlights
Revenue
Total revenue for the second quarter of fiscal year 2026 was $359.1 million, an increase of 24% from the same quarter in fiscal year 2025. Subscription and support revenue was $237.2 million, an increase of 33%; license revenue was $59.5 million, a decrease of 7%; and services revenue was $62.4 million, an increase of 30%, each compared to the same quarter in fiscal year 2025.
As of January 31, 2026, annual recurring revenue, or ARR, was $1,121 million, compared to $1,041 million as of July 31, 2025. ARR results for interim quarterly periods in fiscal year 2026 are based on actual currency rates at the end of fiscal year 2025, held constant throughout the year.
Profitability
GAAP income from operations was $38.4 million for the second quarter of fiscal year 2026, compared with $11.7 million for the same quarter in fiscal year 2025.
Non-GAAP income from operations was $87.4 million for the second quarter of fiscal year 2026, compared with $53.9 million for the same quarter in fiscal year 2025.
GAAP net income was $60.1 million for the second quarter of fiscal year 2026, compared with GAAP net loss of $37.3 million for the same quarter in fiscal year 2025. GAAP diluted net income per share was $0.70 for the second quarter of fiscal year 2026, based on diluted weighted average shares outstanding of 86.1 million, compared with GAAP diluted net loss per share of $0.45 for the same quarter in fiscal year 2025, based on diluted weighted average shares outstanding of 83.7 million.
Non-GAAP net income was $100.7 million for the second quarter of fiscal year 2026, compared with $43.9 million for the same quarter in fiscal year 2025. Non-GAAP diluted net income per share was $1.17 for the second quarter of fiscal year 2026, based on diluted weighted average shares outstanding of 86.1 million, compared with non-GAAP diluted net income per share of $0.51 for the same quarter in fiscal year 2025, based on diluted weighted average shares outstanding of 86.2 million.
Liquidity and Capital Resources
Guidewire had $1,351.4 million in cash, cash equivalents, and investments at January 31, 2026, compared to $1,483.2 million at July 31, 2025.
During the second quarter of fiscal year 2026, Guidewire completed its share repurchase program previously authorized in September 2022. In January 2026, Guidewire authorized a new $500 million share repurchase program. Guidewire repurchased 740,995 shares of common stock at an average price of $199.99 in the quarter ended January 31, 2026. As of January 31, 2026, $490 million remains under the January 2026 share repurchase program.
Business Outlook
Guidewire is issuing the following outlook for the third quarter of fiscal year 2026 based on current expectations:
Ending ARR between $1,144 million and $1,150 million
Subscription and support revenue between $239 million and $243 million
Total revenue between $352 million and $358 million
GAAP operating income between $11 million and $17 million
Non-GAAP operating income between $59 million and $65 million
Guidewire is issuing the following updated outlook for fiscal year 2026 based on current expectations:
Ending ARR between $1,229 million and $1,237 million
Subscription and support revenue between $962 million and $966 million
Total revenue between $1,438 million and $1,448 million
GAAP operating income between $100 million and $110 million
Non-GAAP operating income between $293 million and $303 million
Operating cash flow between $360 million and $375 million
Conference Call Information
What:
Guidewire Second Quarter Fiscal Year 2026 Financial Results Conference Call
When:
Thursday, March 5, 2026
Time:
2:00 p.m. PT (5:00 p.m. ET)
Dial-In:
(669) 444-9171
Meeting ID:
999 2833 5730
Password:
925553
Webcast:
http://ir.guidewire.com/ (live and replay)
The webcast will be archived on Guidewire’s website (www.guidewire.com) for a period of three months. Beginning with the second quarter of fiscal year 2026, quarterly earnings supplemental presentations are available on our website.
Non-GAAP Financial Measures and Other Metrics
This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP tax provision (benefit), non-GAAP net income (loss) per share, and free cash flow. Non-GAAP gross profit and non-GAAP income (loss) from operations exclude stock-based compensation, amortization of intangibles, and acquisition consideration holdback. Non-GAAP net income (loss) and non-GAAP tax provision (benefit) also exclude the amortization of debt issuance costs from our convertible senior notes, changes in fair value of strategic investments, gain (loss) on sale of strategic investments, retirement of debt, and related tax effects of the non-GAAP adjustments. Free cash flow consists of net cash flow provided by (used in) operating activities, less cash used for purchases of property and equipment and capitalized software development costs. These non-GAAP measures enable us to analyze our financial performance without the effects of certain non-cash items such as amortization and stock-based compensation.
Annual recurring revenue (“ARR”) is used to quantify the annualized recurring value outlined in active customer contracts at the end of a reporting period. ARR includes the annualized recurring value of term licenses, subscription agreements, support contracts, and hosting agreements based on customer contractual terms and invoicing activities for the current reporting period, which may not be the same as the timing and amount of revenue recognized. ARR reflects all fee changes due to contract renewals, non-renewals, expansion, cancellations, attrition, or renegotiations at a higher or lower fee arrangement that are effective as of the ARR reporting date. All components of the licensing and other arrangements that are not expected to recur (primarily perpetual licenses and professional services) are excluded from our ARR calculations. In some arrangements with multiple performance obligations, a portion of recurring license and support or subscription contract value is allocated to services revenue for revenue recognition purposes, but does not get allocated for purposes of calculating ARR. This revenue allocation generally only impacts the initial term of the contract. This means that if we increase arrangements with multiple performance obligations that include services at discounted rates, more of the total contract value would be recognized as services revenue, but our reported ARR amount would not be impacted. During the six months ended January 31, 2026, the recurring license and support or subscription contract value recognized as services revenue was $4.6 million.
Guidewire believes that these non-GAAP financial measures and other metrics provide useful information to management and investors regarding certain financial and business trends relating to Guidewire’s financial condition and results of operations. Guidewire’s management uses these non-GAAP measures and other metrics to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation, and for budgeting and planning purposes. Guidewire believes that the use of these non-GAAP financial measures and other metrics provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Guidewire’s financial measures with other software companies, many of which present similar non-GAAP financial measures and other metrics to investors.
Guidewire’s management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Guidewire’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Guidewire urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including the financial tables at the end of this press release, and not to rely on any single financial measure to evaluate Guidewire’s business.
About Guidewire
Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. More than 570 insurers in 43 countries, from new ventures to the largest and most complex in the world, rely on Guidewire products. With core systems leveraging data and analytics, digital, and artificial intelligence, Guidewire defines cloud platform excellence for P&C insurers.
We are proud of our unparalleled implementation record, with 1,700+ successful projects supported by the industry’s largest R&D team and SI partner ecosystem. Our marketplace represents the largest partner community in P&C, where customers can access hundreds of applications to accelerate integration, localization, and innovation.
Guidewire uses its Investor Relations website (ir.guidewire.com), X feed (@Guidewire_PandC), and LinkedIn page (www.linkedin.com/company/guidewire-software) as a means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD. The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to Guidewire’s press releases, filings with the Securities and Exchange Commission, public conference calls, and webcasts.
NOTE: For information about Guidewire’s trademarks, visit www.guidewire.com/legal-notices.
Cautionary Language Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and targets, our business and product strategies, our sales and pipeline momentum, and our market opportunities. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Guidewire’s control. Guidewire’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Guidewire’s most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission (the “SEC”) as well as other documents that may be filed by Guidewire from time to time with the SEC. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: fluctuations in our quarterly and annual operating results; our reliance on sales to, and renewals from, a relatively small number of large customers and the related substantial negotiating leverage of these customers; the length and complexity of our sales, product development, and implementation cycles; our competitive environment and changes thereto; our ability to effectively manage international expansion; issues in the development and use of artificial intelligence and machine learning technologies and the related evolving regulatory environment; our making long-term pricing commitments in our customer contracts based on available information and estimates about our future costs that may change; our ability to expand adoption of our cloud-based products and services, and the risk that any of our established products may fail to satisfy customer demands or maintain market acceptance; seasonal and other variations related to our customer agreements and related revenue recognition may cause significant fluctuations in our results of operations, ARR, and cash flows; our ability to develop, introduce, and market new and enhanced versions of our products and services; our ability to retain existing and hire new personnel, including managing a hybrid and geographically distributed workforce; errors or failures in our products or services, as well as service interruptions or failure of the third-party service providers we rely on; our ability to sell our services and products is highly dependent on the quality of our professional services and third-party global system integrators partners; use of AI by our workforce may present risks to our business; our services revenue produces lower gross margins than our license, subscription and support revenue; the impact of global events (including, without limitation, ongoing global conflicts, inflation, high interest rates, economic volatility, political uncertainties, tariffs, bank failures and associated financial instability, and supply chain issues); data security breaches of our cloud-based services and products or unauthorized access to our employees’ or our customers’ data; the impact of new regulations and laws (including, without limitation, security, privacy, AI and machine learning, tax regulations and laws, and accounting standards); assertions by third parties that we violate their intellectual property rights; stock price volatility regardless of our operating performance; and other risks and uncertainties. Past performance is not indicative of future results. The forward-looking statements included in this press release represent Guidewire’s views as of the date of this press release. Guidewire anticipates that subsequent events and developments will cause its views to change. Guidewire undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Guidewire’s views as of any date subsequent to the date of this press release.
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
January 31,
2026
July 31,
2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
407,946
$
697,902
Short-term investments
511,221
451,541
Accounts receivable, net
162,937
140,639
Unbilled accounts receivable, net
174,651
130,959
Prepaid expenses and other current assets
89,434
86,374
Total current assets
1,346,188
1,507,415
Long-term investments
432,255
333,754
Unbilled accounts receivable, net
83
670
Property and equipment, net
65,315
60,436
Operating lease assets
37,430
39,309
Intangible assets, net
19,833
12,042
Goodwill
422,113
393,978
Deferred tax assets, net
292,842
297,234
Other assets
75,686
76,261
TOTAL ASSETS
$
2,691,745
$
2,721,099
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
28,946
$
28,797
Accrued employee compensation
84,697
140,613
Deferred revenue, net
307,646
340,253
Other current liabilities
37,694
35,139
Total current liabilities
458,983
544,802
Lease liabilities
28,673
30,687
Convertible senior notes, net
676,323
674,568
Deferred revenue, net
4,977
4,533
Other liabilities
12,171
9,279
Total liabilities
1,181,127
1,263,869
STOCKHOLDERS’ EQUITY:
Common stock
8
8
Additional paid-in capital
2,124,589
2,020,393
Accumulated other comprehensive income (loss)
(2,959
)
(8,922
)
Retained earnings (accumulated deficit)
(611,021
)
(554,249
)
Total stockholders’ equity
1,510,618
1,457,230
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,691,745
$
2,721,099
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except share and per share data)
Three Months Ended
January 31,
Six Months Ended
January 31,
2026
2025
2026
2025
Revenue:
Subscription and support
$
237,209
$
177,838
$
459,412
$
347,580
License
59,528
63,694
101,495
101,064
Services
62,358
47,948
130,827
103,737
Total revenue
359,095
289,480
691,734
552,381
Cost of revenue(1):
Subscription and support
63,928
59,096
127,854
113,120
License
442
942
1,086
1,823
Services
63,205
50,290
121,750
99,894
Total cost of revenue
127,574
110,328
250,690
214,837
Gross profit:
Subscription and support
173,281
118,742
331,558
234,460
License
59,086
62,752
100,409
99,241
Services
(847
)
(2,342
)
9,077
3,843
Total gross profit
231,521
179,152
441,044
337,544
Operating expenses(1):
Research and development
83,324
70,268
161,642
139,148
Sales and marketing
61,475
55,452
125,733
106,930
General and administrative
48,281
41,709
96,750
84,463
Total operating expenses
193,080
167,429
384,125
330,541
Income (loss) from operations
38,441
11,723
56,919
7,003
Interest income
12,487
15,722
27,137
29,328
Interest expense
(3,334
)
(4,183
)
(6,646
)
(6,245
)
Other income (expense), net
26,958
(66,289
)
21,644
(70,344
)
Income (loss) before provision for (benefit from) income taxes
74,552
(43,027
)
99,054
(40,258
)
Provision for (benefit from) income taxes
14,442
(5,750
)
7,636
(12,120
)
Net income (loss)
$
60,110
$
(37,277
)
$
91,418
$
(28,138
)
Net income (loss) per share:
Basic
$
0.71
$
(0.45
)
$
1.08
$
(0.34
)
Diluted
$
0.70
$
(0.45
)
$
1.06
$
(0.34
)
Shares used in computing net income (loss) per share:
Basic
84,858,179
83,705,700
84,819,190
83,490,968
Diluted
86,116,567
83,705,700
86,339,391
83,490,968
(1)Amounts include stock-based compensation expense as follows:
Three Months Ended
January 31,
Six Months Ended
January 31,
2026
2025
2026
2025
Stock-based compensation expense:
Cost of subscription and support revenue
$
3,596
$
3,773
$
7,046
$
6,913
Cost of license revenue
—
36
—
72
Cost of services revenue
6,395
5,361
12,095
10,163
Research and development
12,957
10,469
24,216
20,293
Sales and marketing
11,594
10,880
23,416
20,568
General and administrative
12,216
10,429
23,301
20,999
Total stock-based compensation expense
$
46,758
$
40,948
$
90,074
$
79,008
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Three Months Ended
January 31,
Six Months Ended
January 31,
2026
2025
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
60,110
$
(37,277
)
$
91,418
$
(28,138
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
7,040
5,728
13,402
11,573
Amortization of debt issuance costs
984
1,179
1,964
1,724
Amortization of contract costs
8,502
7,453
17,304
15,233
Stock-based compensation
46,758
40,948
90,074
79,008
Changes to allowance for credit losses and revenue reserves
(21
)
(167
)
2,337
1,090
Deferred income tax
9,993
(6,204
)
1,466
(14,159
)
Amortization of premium (accretion of discount) on available-for-sale securities, net
(2,060
)
(3,321
)
(4,008
)
(6,549
)
Gain on sale of strategic investments
—
(3,671
)
—
(3,671
)
Changes in fair value of strategic investments
(15
)
291
45
238
Loss on retirement of debt
—
53,265
—
53,565
Other non-cash items affecting net income (loss)
(10
)
17
7
3
Changes in operating assets and liabilities:
Accounts receivable
(67,341
)
(25,792
)
(23,665
)
12,817
Unbilled accounts receivable
(11,625
)
14,795
(43,095
)
(24,094
)
Prepaid expenses and other assets
(9,571
)
(8,275
)
(14,281
)
(17,207
)
Operating lease assets
206
(1,149
)
1,879
608
Accounts payable
(2,451
)
(6,056
)
1,813
10,150
Accrued employee compensation
11,973
9,667
(57,657
)
(46,878
)
Deferred revenue
56,270
40,585
(32,515
)
(17,522
)
Lease liabilities
207
1,534
(1,330
)
(151
)
Other liabilities
3,097
2,441
(510
)
(3,954
)
Net cash provided by (used in) operating activities
112,046
85,991
44,648
23,686
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities
(217,024
)
(218,093
)
(535,549
)
(429,742
)
Maturities and sales of available-for-sale securities
193,217
163,215
382,943
303,111
Purchases of property and equipment
(3,284
)
(790
)
(8,162
)
(1,633
)
Capitalized software development costs
(3,104
)
(2,923
)
(8,192
)
(7,156
)
Acquisition of strategic investments
(2,348
)
—
(2,348
)
(772
)
Sale of strategic investment
—
5,671
—
5,671
Acquisition of business, net of acquired cash
(33,252
)
—
(33,252
)
—
Net cash provided by (used in) investing activities
(65,795
)
(52,920
)
(204,560
)
(130,521
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible senior notes, net of issuance costs
—
(910
)
—
671,840
Payment for the retirement of convertible senior notes
—
(153,141
)
—
(353,535
)
Purchase of capped calls
—
—
—
(58,788
)
Payment of revolving credit facility costs
—
(2,065
)
—
(2,065
)
Proceeds from issuance of common stock under employee stock purchase plan
13,364
—
13,364
—
Proceeds from issuance of common stock upon exercise of stock options
118
525
531
2,464
Repurchase and retirement of common stock
(148,192
)
—
(148,192
)
—
Net cash provided by (used in) financing activities
(134,710
)
(155,591
)
(134,297
)
259,916
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
3,175
(3,554
)
3,061
(3,585
)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
(85,284
)
(126,074
)
(291,148
)
149,496
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period
493,230
824,754
699,094
549,184
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period
$
407,946
$
698,680
$
407,946
$
698,680
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited, in thousands)
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below:
Three Months Ended
January 31,
Six Months Ended
January 31,
2026
2025
2026
2025
Gross profit reconciliation:
GAAP gross profit
$
231,521
$
179,152
$
441,044
$
337,544
Non-GAAP adjustments:
Stock-based compensation
9,991
9,170
19,141
17,148
Amortization of intangibles
1,057
485
1,864
970
Non-GAAP gross profit
$
242,569
$
188,807
$
462,049
$
355,662
Income (loss) from operations reconciliation:
GAAP income (loss) from operations
$
38,441
$
11,723
$
56,919
$
7,003
Non-GAAP adjustments:
Stock-based compensation
46,758
40,948
90,074
79,008
Amortization of intangibles
1,748
1,278
3,203
2,645
Acquisition consideration holdback
447
—
624
—
Non-GAAP income (loss) from operations
$
87,394
$
53,949
$
150,820
$
88,656
Net income (loss) reconciliation:
GAAP net income (loss)
$
60,110
$
(37,277
)
$
91,418
$
(28,138
)
Non-GAAP adjustments:
Stock-based compensation
46,758
40,948
90,074
79,008
Amortization of intangibles
1,748
1,278
3,203
2,645
Acquisition consideration holdback
447
—
624
—
Amortization of debt issuance costs
984
1,179
1,963
1,724
Changes in fair value of strategic investments
(15
)
291
45
238
Gain on sale of strategic investments
—
(3,671
)
—
(3,671
)
Retirement of debt
—
53,265
—
53,565
Tax impact of non-GAAP adjustments
(9,345
)
(12,084
)
(29,680
)
(24,751
)
Non-GAAP net income (loss)
$
100,687
$
43,929
$
157,647
$
80,620
Tax provision (benefit) reconciliation:
GAAP tax provision (benefit)
$
14,442
$
(5,750
)
$
7,636
$
(12,120
)
Non-GAAP adjustments:
Stock-based compensation
8,996
5,160
17,310
10,735
Amortization of intangibles
336
161
615
361
Acquisition consideration holdback
86
—
120
—
Amortization of debt issuance costs
189
149
377
229
Changes in fair value of strategic investments
(3
)
37
9
29
Gain on sale of strategic investments
—
(463
)
—
(463
)
Retirement of debt
—
6,712
—
6,756
Tax impact of non-GAAP adjustments
(260
)
328
11,249
7,104
Non-GAAP tax provision (benefit)
$
23,787
$
6,334
$
37,317
$
12,631
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited, in thousands except share and per share data)
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below:
Three Months Ended
January 31,
Six Months Ended
January 31,
2026
2025
2026
2025
Net income (loss) per share reconciliation:
GAAP net income (loss) per share – diluted
$
0.70
$
(0.45
)
$
1.06
$
(0.34
)
Non-GAAP adjustments:
Stock-based compensation
0.54
0.49
1.04
0.95
Amortization of intangibles
0.02
0.02
0.04
0.03
Acquisition consideration holdback
—
—
—
—
Amortization of debt issuance costs
0.01
0.01
0.02
0.02
Changes in fair value of strategic investments
—
—
—
—
Gain on sale of strategic investments
—
(0.04
)
—
(0.04
)
Retirement of debt
—
0.64
—
0.64
Tax impact of non-GAAP adjustments
(0.11
)
(0.14
)
(0.34
)
(0.30
)
Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation
—
(0.02
)
—
(0.02
)
Non-GAAP net income (loss) per share – diluted
$
1.17
$
0.51
$
1.83
$
0.94
Shares used in computing non-GAAP net income (loss) per share amounts:
GAAP weighted average shares – diluted
86,116,567
83,705,700
86,339,391
83,490,968
Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation
—
2,510,517
—
2,494,953
GAAP and pro forma weighted average shares — diluted
86,116,567
86,216,217
86,339,391
85,985,921
The following table summarizes our free cash flow for the periods indicated below:
Three Months Ended
January 31,
Six Months Ended
January 31,
2026
2025
2026
2025
Free cash flow:
Net cash provided by (used in) operating activities
$
112,046
$
85,991
$
44,648
$
23,686
Purchases of property and equipment
(3,284
)
(790
)
(8,162
)
(1,633
)
Capitalized software development costs
(3,104
)
(2,923
)
(8,192
)
(7,156
)
Free cash flow
$
105,658
$
82,278
$
28,294
$
14,897
GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Outlook
The following table reconciles the specific items excluded from GAAP outlook in the calculation of non-GAAP outlook for the periods indicated below (in millions):
Third Quarter
Fiscal Year 2026
Fiscal Year 2026
Income (loss) from operations outlook reconciliation:
GAAP income (loss) from operations
$11
—
$17
$100
—
$110
Non-GAAP adjustments:
Stock-based compensation
46
—
46
185
—
185
Amortization of intangibles & other
2
—
2
9
—
9
Non-GAAP income (loss) from operations
$59
—
$65
$293
—
$303
Certain figures included in this document have been subjected to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the figures that precede them.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260305249334/en/
Investor Contact:
Alex Hughes
Guidewire
(650) 356-4921
ir@guidewire.com
Media Contact:
Melissa Cobb
Guidewire
(650) 464-1177
mcobb@guidewire.com
Original: Guidewire Announces Second Quarter Fiscal Year 2026 Financial Results
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