Guidewire Software Inc (GWRE)
Operating profit margin
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 41,068 | -52,573 | -149,490 | -199,447 | -105,584 |
| Revenue | US$ in thousands | 1,202,460 | 980,497 | 905,341 | 812,614 | 743,267 |
| Operating profit margin | 3.42% | -5.36% | -16.51% | -24.54% | -14.21% |
July 31, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $41,068K ÷ $1,202,460K
= 3.42%
The operating profit margin of Guidewire Software Inc. demonstrates a significant improvement over the analyzed period from July 31, 2021, to July 31, 2025.
Initially, on July 31, 2021, the company exhibited an operating profit margin of -14.21%, indicating operational losses relative to revenue. This negative margin widened markedly by July 31, 2022, reaching -24.54%, reflecting increased operational challenges or expenses surpassing revenues. However, subsequent data shows a notable turnaround: by July 31, 2023, the operating profit margin narrowed to -16.51%, signaling a reduction in operational losses.
The trend of recovery continued, with the operating margin further improving to -5.36% by July 31, 2024. This marks a substantial reduction in operating losses, approaching break-even territory, and suggests successful operational adjustments or revenue growth initiatives. Finally, by July 31, 2025, the company achieved a positive operating profit margin of 3.42%, indicating that operational activities are generating profit, transitioning from a loss-making position to profitability.
This progression reflects a significant trend of operational improvement over the four-year span, moving from negative margins of increasing severity to positive profitability. The shift to profitability in 2025 suggests effective management strategies, cost controls, or revenue growth that have ultimately enhanced the company's operational efficiency and overall financial health.