Guidewire Software Inc (GWRE)
Net profit margin
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 69,804 | -6,103 | -111,855 | -180,431 | -66,507 |
| Revenue | US$ in thousands | 1,202,460 | 980,497 | 905,341 | 812,614 | 743,267 |
| Net profit margin | 5.81% | -0.62% | -12.36% | -22.20% | -8.95% |
July 31, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $69,804K ÷ $1,202,460K
= 5.81%
The net profit margin of Guidewire Software Inc. exhibits a notable trend over the specified period from July 31, 2021, to July 31, 2025. In fiscal year 2021, the company reported a negative net profit margin of -8.95%, indicating that it incurred a net loss relative to its revenue. This margin widened significantly in 2022, reaching -22.20%, suggesting an increased loss relative to its sales.
During the subsequent year, 2023, the net profit margin improved to -12.36%, reflecting a reduction in net losses compared to the previous year, although the company still operated at a loss. The positive trend continued in 2024, with the net profit margin approaching near breakeven at -0.62%, demonstrating substantial progress toward profitability.
By 2025, the net profit margin turns positive, registering at 5.81%. This marks a significant turnaround, as the company transitions from consistent losses to profitability, indicating improved operational efficiency, cost management, or revenue growth strategies. Overall, the progression suggests a gradual but steady recovery from initial losses, culminating in a profitable position by 2025.