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Guidewire Announces Fourth Quarter and Fiscal Year 2025 Financial Results

SAN MATEO, Calif., September 4, 2025 - Guidewire (NYSE: GWRE) today announced its financial results for the fiscal quarter and year ended July 31, 2025.

“We were thrilled to close the year with an outstanding fourth quarter executing 19 cloud deals and surpassing $1 billion in ARR,” said Mike Rosenbaum, chief executive officer, Guidewire. “The fourth quarter was highlighted by a significant 10-year agreement with a major Tier-1 insurer that exemplifies the platform maturity and referenceability driving increased deal sizes and deeper customer commitments.”

“We delivered exceptional results in fiscal 2025, surpassing the high end of our outlook for all our financial targets,” said Jeff Cooper, chief financial officer, Guidewire. “In fiscal 2025 growth accelerated to 19% for ARR, 22% for fully ramped ARR, and 23% for total revenue, while strong operational discipline led to cash flow from operations margin of 25%.”

Fiscal Year 2025 Financial Highlights
Revenue
•Total revenue for fiscal year 2025 was $1,202.5 million, an increase of 23% from fiscal year 2024. Subscription and support revenue was $731.3 million, an increase of 33%; license revenue was $251.9 million, an increase of 1%; and services revenue was $219.2 million, an increase of 21%, each compared to fiscal year 2024.
•As of July 31, 2025, annual recurring revenue, or ARR, was $1,032 million based on currency exchange rates as of July 31, 2024, compared to $864 million as of July 31, 2024. We measure ARR on a constant currency basis during the fiscal year and revalue ARR at year end to current currency rates and, based on this revaluation to currency rates as of July 31, 2025, ARR was $1,041 million. ARR grew in fiscal year 2025 by 19% on a constant currency basis.
Profitability
•GAAP income from operations was $41.1 million for fiscal year 2025, compared with GAAP loss from operations of $52.6 million for fiscal year 2024.
•Non-GAAP income from operations was $208.2 million for fiscal year 2025, compared with $99.5 million for fiscal year 2024.
•GAAP net income was $69.8 million for fiscal year 2025, compared with GAAP net loss of $6.1 million for fiscal year 2024. GAAP net income per share was $0.81 for fiscal year 2025, based on diluted weighted average shares outstanding of 85.9 million, compared with GAAP net loss per share of $0.07 for fiscal year 2024, based on diluted weighted average shares outstanding of 82.3 million.
•Non-GAAP net income was $227.9 million for fiscal year 2025, compared with $114.5 million for fiscal year 2024. Non-GAAP net income per share was $2.65 for fiscal year 2025, based on diluted weighted average shares outstanding of 85.9 million, compared with $1.35 for fiscal year 2024, based on diluted weighted average shares outstanding of 87.4 million.

Liquidity and Capital Resources
•Guidewire had $1,483.2 million in cash, cash equivalents, and investments at July 31, 2025, compared to $1,129.5 million at July 31, 2024.
•Guidewire generated $300.9 million in cash from operations during the fiscal year ended July 31, 2025.



Fourth Quarter Fiscal Year 2025 Financial Highlights

Revenue
•Total revenue for the fourth quarter of fiscal year 2025 was $356.6 million, an increase of 22% from the same quarter in fiscal year 2024. Subscription and support revenue was $201.9 million, an increase of 33%; license revenue was $93.6 million, an increase of 5%; and services revenue was $61.0 million, an increase of 20%, each as compared to the same quarter in fiscal year 2024.

Profitability
•GAAP income from operations was $29.6 million for the fourth quarter of fiscal year 2025, compared with $10.3 million for the same quarter in fiscal year 2024.
•Non-GAAP income from operations was $73.5 million for the fourth quarter of fiscal year 2025, compared with $49.0 million for the same quarter in fiscal year 2024.
•GAAP net income was $52.0 million for the fourth quarter of fiscal year 2025, compared with $16.8 million for the same quarter in fiscal year 2024. GAAP net income per share was $0.60, based on diluted weighted average shares outstanding of 86.3 million, compared with $0.20 for the same quarter in fiscal year 2024, based on diluted weighted average shares outstanding of 85.0 million.
•Non-GAAP net income was $72.1 million for the fourth quarter of fiscal year 2025, compared with $54.0 million for the same quarter in fiscal year 2024. Non-GAAP net income per share was $0.84, based on diluted weighted average shares outstanding of 86.3 million, compared with $0.62 for the same quarter in fiscal year 2024, based on diluted weighted average shares outstanding of 88.5 million.

Business Outlook
Guidewire is issuing the following outlook for the first quarter of fiscal year 2026 based on current expectations:
•Ending ARR between $1,048 million and $1,054 million
•Total revenue between $315 million and $321 million
•Operating income between $1 million and $7 million
•Non-GAAP operating income between $47 million and $53 million

Guidewire is issuing the following outlook for fiscal year 2026 based on current expectations:
•Ending ARR between $1,210 million and $1,220 million
•Total revenue between $1,385 million and $1,405 million
•Operating income between $68 million and $88 million
•Non-GAAP operating income between $259 million and $279 million
•Operating cash flow between $350 million and $370 million

Conference Call Information
What:
Guidewire Fourth Quarter and Fiscal Year 2025 Financial Results Conference Call
When:
Thursday, September 4, 2025
Time:2:00 p.m. PT (5:00 p.m. ET)
Dial-In:
(669) 444-9171
Meeting ID:
983 2009 0111
Password:
580692
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.

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 twelve months ended July 31, 2025, the recurring license and support or subscription contract value recognized as services revenue was $9.5 million. Fully ramped annual recurring revenue (“fully ramped ARR”) is used to quantify the annualized recurring value outlined in active customer contracts including all non-variable price increases outlined in the pricing schedule of an executed customer contract within the first five years.
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, guidance, expectations, business momentum, market opportunities, and financial performance. 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: quarterly and annual operating results may fluctuate more than expected; 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 reliance on sales to and renewals from a relatively small number of large customers for a substantial portion of our revenue and ARR and the related substantial negotiating leverage of these customers; 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 successfully manage our business model, including achieving market acceptance of our cloud-based services and products and the costs related to cloud operations, cybersecurity, product development, and services; the timing, success, and number of professional services engagements and the billing rates and utilization of our professional services employees and contractors; 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) on our employees, our business, and the businesses of our customers, system integrator (“SI”) partners, and vendors; data security breaches of our cloud-based services and products or unauthorized access to our employees’ or our customers’ data; our competitive environment and changes thereto; issues in the development and use of AI and machine learning, combined with an uncertain regulatory environment; use of AI by our workforce may present risks to our business; 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 services revenue produces lower gross margins than our license, subscription and support revenue; our product development and sales cycles are lengthy and may be affected by factors outside of our control; 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; weakened global economic conditions may adversely affect the P&C insurance industry, including the rate of information technology spending; our ability to sell our services and products is highly dependent on the quality of our professional services and SI partners; the risk of losing key employees; the challenges of international operations, including changes in foreign exchange rates; 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.

Investor Contact:
Alex Hughes
Guidewire
(650) 356-4921
ir@guidewire.com

Media Contact:
Melissa Cobb
Guidewire
(650) 464-1177
mcobb@guidewire.com


GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
July 31,
2025		July 31,
2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$697,902 $547,992 
Short-term investments451,541 455,576 
Accounts receivable, net140,639 137,339 
Unbilled accounts receivable, net130,959 87,031 
Prepaid expenses and other current assets86,374 67,596 
Total current assets1,507,415 1,295,534 
Long-term investments333,754 125,885 
Unbilled accounts receivable, net670 4,157 
Property and equipment, net60,436 55,409 
Operating lease assets39,309 43,750 
Intangible assets, net12,042 9,005 
Goodwill393,978 372,214 
Deferred tax assets, net297,234 253,085 
Other assets76,261 67,255 
TOTAL ASSETS$2,721,099 $2,226,294 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable$28,797 $15,209 
Accrued employee compensation140,613 109,084 
Deferred revenue, net340,253 281,855 
Convertible senior notes, net— 398,903 
Other current liabilities35,139 32,584 
Total current liabilities544,802 837,635 
Lease liabilities30,687 34,721 
Convertible senior notes, net674,568 — 
Deferred revenue, net4,533 3,628 
Other liabilities9,279 7,578 
Total liabilities1,263,869 883,562 
STOCKHOLDERS’ EQUITY:
Common stock8 8 
Additional paid-in capital 2,020,393 1,979,021 
Accumulated other comprehensive income (loss)(8,922)(12,244)
Retained earnings (accumulated deficit)(554,249)(624,053)
Total stockholders’ equity1,457,230 1,342,732 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$2,721,099 $2,226,294 



GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except share and per share data)
Three Months Ended July 31,Twelve Months Ended July 31,
2025202420252024
Revenue:
Subscription and support$201,893 $151,848 $731,296 $549,087 
License93,638 88,858 251,935 250,176 
Services61,039 50,809 219,228 181,234 
Total revenue356,570 291,515 1,202,459 980,497 
Cost of revenue(1):
Subscription and support64,575 55,621 235,106 204,794 
License909 997 3,624 4,536 
Services59,275 48,461 211,676 187,806 
Total cost of revenue124,759 105,079 450,406 397,136 
Gross profit:
Subscription and support137,318 96,227 496,190 344,293 
License92,729 87,861 248,311 245,640 
Services1,764 2,348 7,552 (6,572)
Total gross profit231,811 186,436 752,053 583,361 
Operating expenses(1):
Research and development84,097 75,320 296,160 269,381 
Sales and marketing65,648 54,784 230,346 199,033 
General and administrative52,469 46,018 184,479 167,520 
Total operating expenses202,214 176,122 710,985 635,934 
Income (loss) from operations29,597 10,314 41,068 (52,573)
Interest income13,503 11,751 56,625 43,478 
Interest expense
(3,298)(1,677)(13,211)(6,738)
Other income (expense), net1,183 (1,504)(35,087)(11,005)
Income (loss) before provision for (benefit from) income taxes40,985 18,884 49,395 (26,838)
Provision for (benefit from) income taxes(10,966)2,125 (20,409)(20,735)
Net income (loss)$51,951 $16,759 $69,804 $(6,103)
Net income (loss) per share:
Basic
$0.62 $0.20 $0.83 $(0.07)
Diluted$0.60 $0.20 $0.81 $(0.07)
Shares used in computing net income (loss) per share:
Basic
84,366,889 82,845,815 83,846,793 82,291,483 
Diluted86,267,658 84,956,655 85,911,653 82,291,483 



(1)Amounts include stock-based compensation expense as follows:
Three Months Ended July 31,Twelve Months Ended July 31,
2025202420252024
 Stock-based compensation expense:
 Cost of subscription and support revenue$3,442 $3,366 $13,953 $13,425 
 Cost of license revenue32 38 136 186 
 Cost of services revenue5,541 4,852 20,759 19,013 
 Research and development11,200 10,086 41,760 40,213 
 Sales and marketing11,870 9,322 43,270 34,590 
 General and administrative10,106 9,622 41,678 39,033 
 Total stock-based compensation expense$42,191 $37,286 $161,556 $146,460 



GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
 Three Months Ended July 31,Twelve Months Ended July 31,
 2025202420252024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$51,951 $16,759 $69,804 $(6,103)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization6,220 5,784 23,758 22,309 
Amortization of debt issuance costs976 436 3,758 1,732 
Amortization of contract acquisition costs5,453 4,947 20,050 17,816 
Stock-based compensation42,191 37,286 161,556 146,460 
Changes to allowance for credit losses and revenue reserves(581)668 526 526 
Deferred income tax(15,929)2,447 (31,780)(26,847)
Amortization of premium (accretion of discount) on available-for-sale securities, net(1,713)(3,402)(10,326)(12,894)
Gain on sale of strategic investments— (45)(3,671)(1,803)
Changes in fair value of strategic investments1,789 2,255 2,130 1,957 
Loss on retirement of debt— — 53,565 — 
Other non-cash items affecting net income (loss)130 — 186 (74)
Changes in operating assets and liabilities:
Accounts receivable7,261 (33,645)(3,348)12,631 
Unbilled accounts receivable35,541 41,631 (38,930)7,676 
Prepaid expenses and other assets(25,827)(11,452)(47,211)(33,534)
Operating lease assets2,458 2,517 4,441 8,623 
Accounts payable(2,190)(8,395)11,399 (18,933)
Accrued employee compensation50,690 32,057 30,090 6,453 
Deferred revenue81,493 100,584 56,617 72,572 
Lease liabilities(1,770)(2,253)(2,891)(7,389)
Other liabilities6,688 5,598 1,144 4,570 
Net cash provided by (used in) operating activities244,831 193,777 300,867 195,748 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities(186,241)(162,494)(858,571)(615,935)
Maturities and sales of available-for-sale securities135,125 160,587 665,012 576,886 
Purchases of property and equipment(3,405)(1,694)(5,741)(6,362)
Capitalized software development costs(3,742)(2,736)(14,714)(12,165)
Acquisition of strategic investments— (1,000)(1,772)(1,336)
Sale of strategic investments— 45 5,671 6,553 
Acquisition of business, net of acquired cash(127)— (26,850)— 
Net cash provided by (used in) investing activities(58,390)(7,292)(236,965)(52,359)
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)— 
Purchase of capped calls— — (58,788)— 
Payment of revolving credit facility costs— — (2,065)— 
Proceeds from issuance of common stock upon exercise of stock options728 1,041 3,902 1,055 
Net cash provided by (used in) financing activities728 1,041 82,293 1,055 
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash412 865 3,715 (2,050)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH187,581 188,391 149,910 142,394 


CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period511,513 360,793 549,184 406,790 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period$699,094 $549,184 $699,094 $549,184 


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 July 31,Twelve Months Ended July 31,
2025202420252024
Gross profit reconciliation:
GAAP gross profit$231,811 $186,436 $752,053 $583,361 
Non-GAAP adjustments:
Stock-based compensation9,015 8,256 34,848 32,624 
Amortization of intangibles800 485 2,255 1,940 
Non-GAAP gross profit$241,626 $195,177 $789,156 $617,925 
Income (loss) from operations reconciliation:
GAAP income (loss) from operations$29,597 $10,314 $41,068 $(52,573)
Non-GAAP adjustments:
Stock-based compensation42,191 37,286 161,556 146,460 
Amortization of intangibles1,565 1,367 5,444 5,468 
Acquisition consideration holdback177 — 177 143 
Non-GAAP income (loss) from operations$73,530 $48,967 $208,245 $99,498 
Net income (loss) reconciliation:
GAAP net income (loss)$51,951 $16,759 $69,804 $(6,103)
Non-GAAP adjustments:
Stock-based compensation42,191 37,286 161,556 146,460 
Amortization of intangibles1,565 1,367 5,444 5,468 
Acquisition consideration holdback177 — 177 143 
Amortization of debt issuance costs976 436 3,758 1,732 
Changes in fair value of strategic investments
1,789 2,255 2,130 1,957 
Gain on sale of strategic investments
— (45)(3,671)(1,803)
Retirement of debt (1)
— — 53,565 — 
Tax impact of non-GAAP adjustments(26,561)(4,044)(64,888)(33,333)
Non-GAAP net income (loss)$72,088 $54,014 $227,875 $114,521 
Tax provision (benefit) reconciliation:
GAAP tax provision (benefit)$(10,966)$2,125 $(20,409)$(20,735)
Non-GAAP adjustments:
Stock-based compensation7,504 3,822 25,414 13,930 
Amortization of intangibles278 140 858 520 
Acquisition consideration holdback31 — 31 25 
Amortization of debt issuance costs174 45 591 165 
Changes in fair value of strategic investments
318 231 365 208 
Gain on sale of strategic investments
— (5)(463)(196)
Retirement of debt (1)
— — 6,756 — 
Tax impact of non-GAAP adjustments18,256 (189)31,336 18,681 
Non-GAAP tax provision (benefit)$15,595 $6,169 $44,479 $12,598 


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 July 31,Twelve Months Ended July 31,
2025202420252024
Net income (loss) per share reconciliation:
GAAP net income (loss) per share – diluted$0.60 $0.20 $0.81 $(0.07)
Non-GAAP adjustments:
Stock-based compensation0.49 0.44 1.89 1.78 
Amortization of intangibles0.02 0.02 0.06 0.07 
Acquisition consideration holdback— — — (0.01)
Amortization of debt issuance costs
0.01 0.01 0.04 0.02 
Changes in fair value of strategic investments
0.02 0.03 0.02 0.02 
Gain on sale of strategic investments
— — (0.04)(0.02)
Retirement of debt(1)
— — 0.63 — 
Tax impact of non-GAAP adjustments(0.30)(0.06)(0.76)(0.41)
Interest expense on convertible debt— 0.01 — 0.05 
Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation— (0.03)— (0.08)
Non-GAAP net income (loss) per share – diluted $0.84 $0.62 $2.65 $1.35 
Shares used in computing non-GAAP net income (loss) per share amounts:
GAAP weighted average shares – diluted86,267,659 84,956,656 85,911,653 82,291,483 
Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation— 3,516,480 — 5,072,080 
GAAP and pro forma weighted average shares — diluted
86,267,659 88,473,136 85,911,653 87,363,563 
(1) During the fiscal year ended July 31, 2025, the Company recorded a $53.6 million loss on retirement of debt in other income (expense) comprised of $53.3 million loss on extinguishment and $0.3 million loss on the induced conversion of a portion of its convertible senior notes due March 2025. Prior to fiscal year 2025, there were no transactions similar to the retirement of debt in any periods presented on the consolidated statements of operations.
The following table summarizes our free cash flow for the periods indicated below:

Three Months Ended July 31,Twelve Months Ended July 31,
2025202420252024
Free cash flow:
Net cash provided by (used in) operating activities$244,831 $193,777 $300,867 $195,748 
Purchases of property and equipment(3,405)(1,694)(5,741)(6,362)
Capitalized software development costs(3,742)(2,736)(14,714)(12,165)
Free cash flow$237,684 $189,347 $280,412 $177,221 



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):
First Quarter
Fiscal Year 2026
Fiscal Year 2026
Income (loss) from operations outlook reconciliation:
GAAP income (loss) from operations$1—$7$68—$88
Non-GAAP adjustments:
Stock-based compensation 44—44185—185
Amortization of intangibles & other
2—26—6
Non-GAAP income (loss) from operations$47—$53$259—$279