Guidewire Software Inc (GWRE)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 49,395 | 27,294 | -35,467 | 14,524 | -26,838 | -29,965 | -72,100 | -87,274 | -134,094 | -186,395 | -203,388 | -246,814 | -229,715 | -198,978 | -170,463 | -141,728 | -104,281 | -49,059 | -40,742 | -33,557 |
| 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 |
| Pretax margin | 4.11% | 2.40% | -3.27% | 1.40% | -2.74% | -3.12% | -7.79% | -9.51% | -14.81% | -21.18% | -23.38% | -29.31% | -28.27% | -24.95% | -22.31% | -19.17% | -14.03% | -6.48% | -5.35% | -4.44% |
July 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $49,395K ÷ $1,202,459K
= 4.11%
The pretax margin of Guidewire Software Inc. has exhibited significant fluctuations over the analyzed periods. Initially, the company recorded negative pretax margins, indicating operational losses, beginning at -4.44% as of October 31, 2020. This negative trend intensified over subsequent quarters, reaching a low of -29.31% in October 2022, reflecting increased operational challenges or expense pressures relative to revenues.
Despite the persistent negativity, a gradual trend of improvement emerged starting in late 2022. By October 31, 2023, the pretax margin narrowed to -9.51%, and this positive trajectory continued into early 2024, with margins reaching -3.12% as of April 30, 2024. The most notable shift occurred thereafter; the pretax margin turned positive as of October 31, 2024, reaching 1.40%, marking a transition from losses to profitability on a pre-tax basis.
Subsequently, the margins demonstrated variability, with a brief decline to -3.27% as of January 31, 2025, before recovering again to positive territory at 2.40% in April 2025. The most recent data indicates an upward trend, with the pretax margin reaching 4.11% as of July 31, 2025, suggesting an ongoing improvement in profitability.
Overall, the data reflects a trajectory from sustained operational losses for multiple quarters toward a period of consistent improvement, culminating in profitable margins by late 2024 and into mid-2025. This shift suggests enhanced operational efficiency, revenue growth, or cost management strategies that have progressively contributed to moving the company's pretax margin into positive territory.