Filing Flows › Guidewire Software (GWRE) › Q2 FY25
Guidewire Software (GWRE) Q2 FY25 earnings results (second quarter fiscal 2025)
10-Q filed Mar 7, 2025
Guidewire Software (GWRE) reported revenue of $289M for the second quarter fiscal 2025 (Q2 FY25), +20% from a year earlier and +10% from the quarter before. Operating margin was 4.0%, net loss $37.3M (12.9% of revenue).
Guidewire Software, Q2 FY25: revenue $289M (+20% year over year), operating margin 4.0%, net loss $37.3M, operating cash flow $86.0M. The chart follows the revenue to costs, profit and cash.
| Q2 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $289M | +10% | +20% |
| Operating profit | $11.7M | — | — |
| Net earnings | −$37.3M | — | — |
| Operating cash flow | $86.0M | — | +24% |
| Free cash flow | $85.2M | — | +29% |
What changed
Revenue was $289.5M in Q2 FY25, up 20% year over year and up 10% from the previous quarter. Subscription was the largest line at 56% of revenue. Subscription added $48.5M year over year (up 43%), 100% of the total change. Support declined 13%.
Gross margin was 61.9%, up 2.8 points from a year earlier. Operating profit was $11.7M, a 4.0% margin (up 9.2 points year over year). Operating expenses grew 8% against revenue growth of 20%. The fastest-growing cost line was Sales & marketing (+13%). The quarter ended with a net loss of $37.3M, after a profit of $9.1M the previous quarter. Net interest and other expense of $54.8M was the main reason.
Operating cash flow was $86.0M (up 24% year over year). Non-cash charges added back $5.7M of depreciation and amortization and $40.9M of share-based compensation. Working capital and other items added $76.6M. Capital expenditures of $790K left free cash flow of $85.2M.
Questions
What was Guidewire Software's revenue in the second quarter fiscal 2025?
Guidewire Software (GWRE) reported revenue of $289M for the second quarter fiscal 2025 (Q2 FY25), +20% from a year earlier and +10% from the quarter before.
Was Guidewire Software profitable in the second quarter fiscal 2025?
Operating profit was $11.7M (4.0% of revenue) and net loss $37.3M.
Source: Guidewire Software 10-Q on SEC EDGAR.