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Guidewire Software cash flow, quarter by quarter

Latest: Q4 FY26 · from the cash-flow statements filed with the SEC

Free cash flow$282M in Q4 FY26

Operating cash flow$284M
Capital spending−$2.1M
Free cash flow+$282M
Cash / net income9.0×
Cash conversion cycle13 days

Analysis

In Q4 FY26, Guidewire Software generated $284M of operating cash flow and spent $2.1M on capital projects, leaving free cash flow of $282M. That is $40.3M more than in Q4 FY25 ($241M).

Operating cash flow was $284M against net income of $31.4M — 9.0× profit, cash ran ahead of reported earnings. The largest differences: deferred revenue +$134M, contract assets +$84.0M, receivables −$55.1M.

Its cash conversion cycle was 13 days (receivables 37 + inventory 0 − payables 24).

Free cash flow

Guidewire Software: free cash flow by quarterGuidewire Software: free cash flow by quarter−$63.1MQ1 FY25$85.2MQ2 FY25$31.6MQ3 FY25$241MQ4 FY25−$72.3MQ1 FY26$109MQ2 FY26$59.4MQ3 FY26$282MQ4 FY26
Operating cash flow less capital spending.
Guidewire Software: operating cash flow against capital spendingGuidewire Software: operating cash flow against capital spendingOperating cash flowCapital spending−$62.3M$843KQ1 FY25$86.0M$790KQ2 FY25$32.4M$703KQ3 FY25$245M$3.4MQ4 FY25−$67.4M$4.9MQ1 FY26$112M$3.3MQ2 FY26$61.2M$1.8MQ3 FY26$284M$2.1MQ4 FY26
Latest (Q4 FY26): Operating cash flow $284M, Capital spending $2.1M.

Capital allocation, year by year

Guidewire Software: where the cash came from (up) and went (down), by fiscal yearGuidewire Software: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedCapital spendingAcquisitionsBuybacksFY22: Operating cash flow −$37.9MFY22: Shares issued $116KFY22: Capital spending −$9.5MFY22: Acquisitions −$43.8MFY22: Buybacks −$37.5M$116KFY22FY23: Operating cash flow $38.4MFY23: Shares issued $228KFY23: Capital spending −$5.8MFY23: Buybacks −$262M$38.6MFY23FY24: Operating cash flow $196MFY24: Shares issued $1.1MFY24: Capital spending −$6.4M$197MFY24FY25: Operating cash flow $301MFY25: Net borrowing $672MFY25: Shares issued $3.9MFY25: Capital spending −$5.7MFY25: Acquisitions −$26.9M$977MFY25FY26: Operating cash flow $390MFY26: Shares issued $729KFY26: Capital spending −$12.1MFY26: Acquisitions −$38.0MFY26: Buybacks −$606M$390MFY26
Over these 5 years operating cash flow totalled $887M; the largest uses were buybacks ($906M) and acquisitions ($109M). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$753M
Debtnone
Net cash$753M
Due within a year$8.6M

Guidewire Software funds itself: free cash flow was — over the last twelve months, with $753M of cash and investments and no debt on the balance sheet ($8.6M due within a year, 87.3× covered by cash).

Guidewire Software: debt maturities by year (FY26)Guidewire Software: debt maturities by year (FY26)$8.6MYear 1$8.6MYear 2$8.6MYear 3$694MYear 4
Principal due in each year as disclosed in the annual report, against $753M of cash and investments now.

Where the cash came from and went

Guidewire Software: sources (+) and uses (−) of cash, Q4 FY26Guidewire Software: sources (+) and uses (−) of cash, Q4 FY26Operating cash flow$284MBuybacks−$214MCash drawn (+) / kept (−)−$78.3MOther financing$13.2MAcquisitions−$4.5MOther investing$4.1MExchange rates−$2.6MCapital spending−$2.1MShares issued$190K

From profit to cash

Guidewire Software: net income to operating cash flow, Q4 FY26Guidewire Software: net income to operating cash flow, Q4 FY26Net income$31.4MDepreciation & amortization$7.3MStock-based pay$46.8MGains on investments$64KOther non-cash−$106KReceivables−$55.1MPayables$3.8MEmployee-related liabilities$29.8MDeferred revenue$134MContract assets$84.0MPrepaid and other assets−$21.5MOther liabilities$4.3MOperating cash flow$284M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q4 FY2637—2413
Q3 FY2636—2115
Q2 FY2633—2310
Q1 FY2633—239
Q4 FY2537—2116
Q3 FY2541—2219
Q2 FY2535—2312
Q1 FY2541—2121

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsBuybacksNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q4 FY26$284M−$2.1M−$4.5M−$214M—$190K−$78.3M$282M
Q3 FY26$61.2M−$1.8M−$201K−$244M—$8K$113M$59.4M
Q2 FY26$112M−$3.3M———$118K$85.3M$109M
Q1 FY26−$67.4M−$4.9M———$413K$206M−$72.3M
Q4 FY25$245M−$3.4M−$126K——$728K−$188M$241M
Q3 FY25$32.4M−$703K−$26.7M——$710K$187M$31.6M
Q2 FY25$86.0M−$790K——−$154M$525K$126M$85.2M
Q1 FY25−$62.3M−$843K——$472M$1.9M−$276M−$63.1M

Guidewire Software: income statement and cash flow

Guidewire Software, Q4 FY26: revenue $411M (+15% year over year), operating margin 15.2%. The chart follows the revenue to costs, profit and cash.

Guidewire Software: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.