Guidewire Software Inc (GWRE)
Net profit margin
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 69,804 | 34,612 | -16,857 | 30,107 | -6,103 | -10,642 | -50,732 | -69,608 | -111,855 | -155,105 | -166,981 | -198,473 | -180,431 | -150,433 | -129,622 | -97,593 | -66,507 | -26,700 | -21,105 | -32,397 |
| Revenue (ttm) | US$ in thousands | 1,202,459 | 1,137,404 | 1,084,574 | 1,035,991 | 980,497 | 958,940 | 925,752 | 917,466 | 905,341 | 879,982 | 869,940 | 841,962 | 812,614 | 797,450 | 763,970 | 739,399 | 743,267 | 757,506 | 761,703 | 755,099 |
| Net profit margin | 5.81% | 3.04% | -1.55% | 2.91% | -0.62% | -1.11% | -5.48% | -7.59% | -12.36% | -17.63% | -19.19% | -23.57% | -22.20% | -18.86% | -16.97% | -13.20% | -8.95% | -3.52% | -2.77% | -4.29% |
July 31, 2025 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $69,804K ÷ $1,202,459K
= 5.81%
The net profit margin of Guidewire Software Inc demonstrates a substantial transformation over the period analyzed. Initially, the company reported negative net profit margins from October 2020 through early 2024, indicating consistent profitability challenges. Specifically, the margin declined from -4.29% in October 2020, reaching a low of -23.57% in October 2022, which reflects increasing losses relative to revenue during this period. This persistent negative trend suggests operational inefficiencies or potentially high costs outweighing revenues.
From January 2024 onward, a positive trend is observable, with the net profit margin improving markedly. The margin narrows from -5.48% in January 2024 to an almost break-even point at -0.62% in July 2024, and finally crosses into positive territory at 2.91% in October 2024. Subsequently, it fluctuates slightly but remains positive, reaching as high as 5.81% in July 2025.
This progression indicates a significant turnaround in profitability, suggesting that Guidewire has implemented effective operational strategies or cost management measures. The transition from persistent losses to consistent positive margins reflects a strengthening financial position and improved operational efficiency over the analyzed period.