Guidewire Software, Inc. key statistics and ratios

In fiscal 2026, Guidewire Software, Inc. had return on equity of 10.5%, an operating margin of 10.2%, debt equal to 60.3% of equity and a current ratio of 1.79. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Guidewire Software, Inc.: financial ratios, annual
Fiscal year	2010Jul 2010	2011Jul 2011	2012Jul 2012	2013Jul 2013	2014Jul 2014	2015Jul 2015	2016Jul 2016	2017Jul 2017	2018Jul 2018	2019Jul 2019	2020Jul 2020	2021Jul 2021	2022Jul 2022	2023Jul 2023	2024Jul 2024	2025Jul 2025	2026Jul 2026
Gross margin	61.7%	60.4%	61.2%	58.2%	57.5%	61.3%	64.2%	62.4%	54.5%	54.9%	54.5%	52.4%	46.4%	50.6%	59.5%	62.5%	64.2%
Operating margin	12.4%	4.0%	12.5%	9.9%	5.3%	4.3%	3.9%	4.3%	−2.4%	0.2%	−3.2%	−14.2%	−24.5%	−16.5%	−5.4%	3.4%	10.2%
Net margin	3.0%	6.8%	5.4%	8.2%	4.2%	2.6%	3.5%	3.5%	−4.1%	2.9%	−3.7%	−8.9%	−22.2%	−12.4%	−0.6%	5.8%	9.4%
Free-cash-flow margin	5.0%	14.4%	4.9%	7.8%	20.1%	15.1%	21.9%	26.1%	20.1%	9.9%	12.4%	12.5%	−5.8%	3.6%	19.3%	24.5%	25.6%
Return on equity	—	—	12.8%	12.2%	3.4%	1.5%	2.0%	2.2%	−2.3%	1.4%	−1.7%	−4.2%	−12.0%	−8.4%	−0.5%	5.0%	10.5%
Return on assets	—	9.2%	6.2%	8.4%	2.8%	1.3%	1.7%	1.8%	−1.7%	1.0%	−1.2%	−2.8%	−7.9%	−5.2%	−0.3%	2.8%	5.3%
Asset turnover	—	1.36	1.13	1.02	0.66	0.49	0.49	0.51	0.43	0.35	0.33	0.32	0.35	0.42	0.46	0.49	0.56
Current ratio	—	1.15	2.82	2.81	5.41	6.34	5.94	4.03	5.13	5.75	5.96	4.51	3.71	2.95	1.55	2.77	1.79
Debt to equity	—	0.0%	0.0%	0.0%	0.0%	0.0%	0.8%	0.0%	21.6%	20.2%	19.9%	22.3%	24.7%	33.1%	30.2%	50.0%	60.3%
Interest cover (operating income ÷ interest)	—	—	—	—	—	—	—	—	n/m	0.1x	n/m	n/m	n/m	n/m	n/m	3.1x	11.2x
Effective tax rate	12.4%	—	34.5%	18.1%	26.2%	40.9%	27.9%	36.6%	—	—	—	—	—	—	—	−41.3%	15.1%
R&D as % of revenue	19.5%	20.2%	21.1%	21.0%	21.7%	24.6%	26.5%	25.6%	26.3%	26.2%	27.0%	27.1%	28.2%	27.6%	27.5%	24.6%	23.1%
Capital spending as % of revenue	1.5%	1.6%	2.4%	3.1%	1.4%	1.7%	1.7%	1.2%	1.4%	6.2%	2.9%	2.6%	1.2%	0.6%	0.6%	0.5%	0.8%
Free cash flow ÷ net income	169.5%	212.9%	90.7%	94.6%	478.9%	580.4%	619.6%	735.2%	—	343.5%	—	—	—	—	—	422.8%	271.1%
Dividends and buybacks ÷ free cash flow	—	—	—	—	—	—	—	—	—	0.0%	0.0%	174.3%	—	803.7%	0.0%	0.0%	160.5%

US$ thousands unless shown otherwise. Fiscal quarters.

Guidewire Software, Inc.: financial ratios, quarterly
Quarter	2025 Q1Oct 2024	2025 Q2Jan 2025	2025 Q3Apr 2025	2025 Q4Jul 2025	2026 Q1Oct 2025	2026 Q2Jan 2026	2026 Q3Apr 2026	2026 Q4Jul 2026
Gross margin	60.2%	61.9%	62.2%	65.0%	63.0%	64.5%	63.5%	65.6%
Operating margin	−1.8%	4.0%	1.5%	8.3%	5.6%	10.7%	8.2%	15.2%
Net margin	3.5%	−12.9%	15.7%	14.6%	9.4%	16.7%	4.4%	7.6%
Free-cash-flow margin	−24.0%	29.4%	10.8%	67.7%	−21.7%	30.3%	15.9%	68.5%
Current ratio	2.66	2.65	3.23	2.77	3.48	2.93	2.44	1.79
Debt to equity	75.0%	67.1%	49.4%	46.3%	44.0%	44.8%	51.4%	56.8%
R&D as % of revenue	26.2%	24.3%	24.8%	23.6%	23.5%	23.2%	23.6%	22.0%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

4 of 7 checks passed · July 31, 2026

What it owns · $2.6bn

Short-term assets $1.2bnLonger-term assets $1.4bn

What it owes, and who funded it · $2.6bn

Short-term liabilities $664mLonger-term liabilities $719mShareholders' equity $1.2bn

Short-term assets cover short-term liabilities $1.2bn of assets due within a year against $664m of liabilities due within a year.
Short-term assets cover long-term liabilities $1.2bn short-term assets against $719m of longer-dated liabilities.
More cash than debt $373m of cash against $678m of debt.
Debt below 40% of shareholders' equity Debt is 57% of equity.
Debt burden no higher than five years ago Debt to equity moved from 23% to 57% over five years.
A year's operating cash flow covers at least 20% of debt $390m of operating cash flow against $678m of debt.
Operating profit covers interest at least five times over Operating income of $150m against $13m of interest.

From Guidewire Software, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

44 /100

Weak moat

How hard Guidewire Software's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 11 / 20

Cash operating profit has been a median 9.3% of total assets over 10 years.
Pricing power 15 / 20

Gross margin has been a median 54.7%, moving by 5.5 percentage points (standard deviation) across 10 years.
Durability 10 / 20

Operating margin has been a median -2.8%; its worst year was -24.5%.
Cash conversion 17 / 20

Free cash flow was positive in 9 of 10 years, at a median 15.9% of revenue.
Discipline 6 / 20

The diluted share count rose 2.2% over five years; stock-based pay has been a median 13.9% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (59 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Guidewire Software, Inc.'s SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Guidewire Software, Inc.