NYSE$GWRE
Guidewire Software Inc · Q2 2025 earnings
Q2 2025 earnings · · After market close · Investor relations
Briefing
Guidewire reported strong Q2 2025 results, surpassing expectations in revenue and ARR.
Guidewire's total revenue for Q2 2025 reached $289.5 million, up 20% year-over-year. Subscription and support revenue grew 35% to $177.8 million, while license revenue declined 10% to $63.7 million. Services revenue increased 26% to $47.9 million. ARR reached $918.1 million. GAAP income from operations was $11.7 million, compared to a GAAP operating loss of $12.4 million in Q2 2024. Net loss was $37.3 million, translating to a GAAP EPS of -$0.45, while non-GAAP net income was $43.9 million, with non-GAAP EPS of $0.51.
- Total revenue increased 20% year-over-year to $289.5 million.
- Subscription and support revenue surged 35%, reaching $177.8 million.
- GAAP income from operations was $11.7 million, reversing a prior-year loss.
- Non-GAAP EPS rose to $0.51, compared to $0.46 in Q2 2024.
Headline financials
Revenue & EPS history
Guidewire · Revenue · Quarterly
$290M
Revenue by segment
Guidewire · $207M total across 3 segments · Q1 2024
- Subscription and Support$128M+28.8%61.5%
- Services$45.8M-17.2%22.1%
- License$34M-16.9%16.4%
Forward guidance
Guidewire expects continued ARR and revenue growth in Q3 and full-year 2025.
Tailwinds
- Ending ARR projected between $942M and $947M for Q3 2025.
- Total Q3 revenue expected between $283M and $289M.
- Non-GAAP operating income forecasted between $36M and $42M.
- Full-year ARR guidance raised to $1B - $1.01B.
- Full-year revenue guidance increased to $1.164B - $1.174B.
Headwinds
- GAAP operating income for Q3 could be as low as -$4M.
- Potential for continued GAAP net losses due to operating expenses.
- Debt retirement costs may impact profitability in future quarters.
- Ongoing macroeconomic challenges could affect sales cycles.
- License revenue may continue to decline amid subscription model shift.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2025
+2.9%
Avg return
Earnings day
-0.1%
Avg return
5 days after
-0.2%
Avg return
30 days after
59%
36 / 61 earnings
Positive
+32.2%
Q2 2012
Best reaction
-14.6%
Q3 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | +5.0% | -1.6% | -6.2% | |
| Q1 2026 | -2.2% | -8.6% | -13.0% | |
| Q4 2025 | +20.1% | +16.6% | +6.0% | |
| Q3 2025 | +16.3% | +18.0% | +5.6% | |
| Q2 2025 | -7.3% | -5.7% | -6.8% | |
| Q1 2025 | -14.3% | -17.3% | -16.8% | |
| Q4 2024 | +10.0% | +13.9% | +25.3% | |
| Q3 2024 | +16.2% | +18.5% | +26.8% | |
| Q2 2024 | +2.1% | -0.6% | +0.2% | |
| Q1 2024 | -0.2% | -0.5% | +7.1% | |
| Q4 2023 | +9.9% | +8.0% | +6.7% | |
| Q3 2023 | -14.6% | -11.8% | -8.3% | |
| Q2 2023 | +2.7% | -2.3% | +7.5% | |
| Q1 2023 | +4.5% | +9.0% | +5.1% | |
| Q4 2022 | -1.7% | +1.4% | -4.8% | |
| Q3 2022 | +1.4% | -5.4% | -5.1% | |
| Q2 2022 | +2.0% | -2.4% | +4.8% | |
| Q1 2022 | -1.5% | +2.5% | +0.5% | |
| Q4 2021 | +3.8% | +3.6% | +0.0% | |
| Q3 2021 | +4.1% | +6.5% | +16.1% | |
| Q2 2021 | -7.1% | -8.0% | -6.6% | |
| Q1 2021 | -3.6% | -1.8% | +5.6% | |
| Q4 2020 | +0.1% | -1.6% | -12.2% | |
| Q3 2020 | -1.2% | +2.1% | +5.4% | |
| Q2 2020 | -11.7% | -21.4% | -30.2% | |
| Q1 2020 | -6.6% | -10.2% | -7.0% | |
| Q4 2019 | +16.1% | +13.0% | +12.6% | |
| Q3 2019 | -1.8% | +0.2% | +5.9% | |
| Q2 2019 | +2.7% | +2.4% | +13.8% | |
| Q1 2019 | -8.6% | -8.3% | -17.1% | |
| Q4 2018 | -2.3% | -3.0% | -4.5% | |
| Q3 2018 | -2.3% | -6.8% | -4.7% | |
| Q2 2018 | +7.3% | +3.5% | -4.3% | |
| Q1 2018 | -8.7% | -13.5% | -8.9% | |
| Q4 2017 | +6.3% | +5.9% | +3.9% | |
| Q3 2017 | +4.4% | +4.4% | +3.4% | |
| Q2 2017 | +3.3% | +2.7% | +1.3% | |
| Q1 2017 | -4.6% | -10.3% | -14.4% | |
| Q4 2016 | -1.5% | -2.2% | -6.0% | |
| Q3 2016 | +5.0% | +5.8% | +4.7% | |
| Q2 2016 | +6.5% | — | — | |
| Q1 2016 | +0.7% | — | — | |
| Q4 2015 | -2.2% | — | — | |
| Q3 2015 | +10.1% | — | — | |
| Q2 2015 | -2.8% | — | — | |
| Q1 2015 | +0.5% | — | — | |
| Q4 2014 | +0.2% | — | — | |
| Q3 2014 | -1.9% | — | — | |
| Q2 2014 | +7.0% | — | — | |
| Q1 2014 | +1.6% | — | — | |
| Q4 2013 | -6.3% | — | — | |
| Q3 2013 | +3.6% | — | — | |
| Q2 2013 | +19.0% | — | — | |
| Q1 2013 | +5.3% | — | — | |
| Q4 2010 | -4.9% | — | — | |
| Q4 2012 | +13.0% | — | — | |
| Q3 2011 | -2.5% | — | — | |
| Q3 2012 | +4.5% | — | — | |
| Q4 2011 | +26.1% | — | — | |
| Q2 2011 | +26.1% | — | — | |
| Q2 2012 | +32.2% | — | — | |
| Q1 2012 | — | — | — | |
| Q1 2011 | — | — | — |
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