Filing Flows › Guidewire Software (GWRE) › Q3 FY25
Guidewire Software (GWRE) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed Jun 4, 2025
Guidewire Software (GWRE) reported revenue of $294M for the third quarter fiscal 2025 (Q3 FY25), +22% from a year earlier and +1% from the quarter before. Operating margin was 1.5%, net earnings $46.0M (15.7% of revenue).
Guidewire Software, Q3 FY25: revenue $294M (+22% year over year), operating margin 1.5%, net earnings $46.0M, operating cash flow $32.4M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $294M | +1% | +22% |
| Gross profit | $183M | +2% | +28% |
| Operating profit | $4.5M | -62% | — |
| Net earnings | $46.0M | — | — |
| Operating cash flow | $32.4M | -62% | +574% |
| Free cash flow | $31.6M | -63% | +667% |
What changed
Revenue was $293.5M in Q3 FY25, up 22% year over year and up 1% from the previous quarter. Subscription was the largest line at 57% of revenue. Subscription added $46.0M year over year (up 38%), 87% of the total change. Perpetual license declined 90%.
Gross margin was 62.2%, up 3.2 points from a year earlier. Operating profit was $4.5M, a 1.5% margin (up 8.5 points year over year). Operating expenses grew 12% against revenue growth of 22%. The fastest-growing cost line was Sales & marketing (+14%). Net earnings were $46.0M. The effective tax rate was 5.5%. Non-operating items added $44.2M, 91% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $32.4M (up 574% year over year), 70% of net earnings. Non-cash charges added back $6.0M of depreciation and amortization and $40.4M of share-based compensation. Working capital and other items used $60.0M. Capital expenditures of $703K left free cash flow of $31.6M.
Questions
What was Guidewire Software's revenue in the third quarter fiscal 2025?
Guidewire Software (GWRE) reported revenue of $294M for the third quarter fiscal 2025 (Q3 FY25), +22% from a year earlier and +1% from the quarter before.
Was Guidewire Software profitable in the third quarter fiscal 2025?
Operating profit was $4.5M (1.5% of revenue) and net earnings $46.0M.
Source: Guidewire Software 10-Q on SEC EDGAR.