Guidewire Software Inc (GWRE)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 41,068 | 21,785 | 621 | -23,512 | -52,573 | -56,792 | -97,912 | -108,718 | -149,490 | -187,794 | -192,382 | -208,623 | -199,447 | -167,322 | -151,744 | -139,357 | -105,584 | -61,159 | -39,933 | -30,893 |
| 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 |
| Operating profit margin | 3.42% | 1.92% | 0.06% | -2.27% | -5.36% | -5.92% | -10.58% | -11.85% | -16.51% | -21.34% | -22.11% | -24.78% | -24.54% | -20.98% | -19.86% | -18.85% | -14.21% | -8.07% | -5.24% | -4.09% |
July 31, 2025 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $41,068K ÷ $1,202,459K
= 3.42%
The operating profit margin of Guidewire Software Inc. has undergone significant fluctuations over the specified period. Initially, as of October 31, 2020, the company reported an operating profit margin of -4.09%. The margin progressively deteriorated through the subsequent quarters, reaching a low of -24.78% by October 31, 2022, indicating persistent operating losses and declining operational efficiency during this period. The negative margins suggest that the company's operating expenses consistently exceeded its gross profit, reflecting challenges in controlling costs or generating sufficient revenue relative to expenses.
From the beginning of 2023, a gradual improvement in operating profit margin is observed. By January 31, 2023, the margin narrowed to -22.11%, and it continued to improve through the subsequent quarters, reaching -16.51% on July 31, 2023. This positive trend continued into late 2023 and early 2024, with margins approaching break-even territory, recorded at -11.85% on October 31, 2023, and further to -10.58% on January 31, 2024.
The most notable development occurs from April 30, 2024, onwards, where the operating profit margin shifts into positive territory. By October 31, 2024, it improves to -2.27%, and subsequently turns positive to reach 0.06% as of January 31, 2025. This positive trajectory indicates a transition from operational losses to modest profitability, reflecting enhanced operational efficiency or revenue growth surpassing expense increases. The upward momentum continues, with margins reaching 1.92% in April 2025 and further increasing to 3.42% by July 2025.
Overall, the data illustrates a period of substantial operational losses that gradually diminish over time, culminating in a turn to positive operating profitability in early 2025. The trend suggests an ongoing recovery and potential improvements in operating efficiency, cost management, or revenue streams that are progressively translating into operational gains.