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Apr 30, 2025
Guidewire Q3 2025 Earnings Report
Guidewire announced its financial results for the third quarter of fiscal year 2025, with revenue and profitability exceeding guidance.
Key Takeaways
Guidewire delivered exceptional third-quarter results, with total revenue increasing by 22% year-over-year to $293.5 million and GAAP net income reaching $46.0 million. The company also reported strong ARR growth and raised its full-year fiscal 2025 targets.
Total revenue for Q3 FY25 was $293.5 million, a 22% increase from Q3 FY24.
GAAP net income for Q3 FY25 was $46.0 million, compared to a GAAP net loss of $5.5 million in Q3 FY24.
Annual Recurring Revenue (ARR) reached $960 million as of April 30, 2025, up from $864 million as of July 31, 2024.
GAAP diluted EPS was $0.54, and Non-GAAP diluted EPS was $0.88 for Q3 FY25.
Revenue by Segment
Forward Guidance
Guidewire is raising its full-year fiscal year 2025 targets, reflecting strong execution and a robust pipeline, and providing outlook for the fourth quarter of fiscal year 2025.
Positive Outlook
- Ending ARR for FY25 is projected between $1,012 million and $1,022 million.
- Total revenue for FY25 is projected between $1,178 million and $1,186 million.
- Non-GAAP operating income for FY25 is projected between $187 million and $195 million.
- Operating cash flow for FY25 is projected between $255 million and $275 million.
- Fourth quarter total revenue is expected to be between $332 million and $340 million.
Challenges Ahead
- Fourth quarter GAAP operating income (loss) is projected between $7 million and $15 million, indicating potential for lower GAAP profitability.
- The guidance for GAAP operating income for the full fiscal year 2025 is between $20 million and $28 million, which is significantly lower than Non-GAAP operating income.
- The company's reliance on non-GAAP measures suggests that GAAP results may be less favorable due to certain non-cash items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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