Plainsight Introduces Open Source OpenFilter for Scalable Computer Vision AI
SANTA CLARA, Calif.--(BUSINESS WIRE)-- (Embedded Vision Summit, booth #518) -- Plainsight, the leader in automated infrastructure for data-centric AI pipelines, today announced the launch of OpenFilter, an open source project that simplifies and accelerates the development, deployment, and scaling of production-grade computer vision applications. Available now under the Apache 2.0 license, OpenFilter introduces an innovative "filter" abstraction that combines code and AI models into modular components that allow developers to assemble vision pipelines.
'OpenFilter has revolutionized how we deploy vision AI for our manufacturing and logistics clients,' said Priyanshu Sharma, Senior Data Engineer at BrickRed Systems.
Plainsight will demonstrate OpenFilter at the Embedded Vision Summit, where it will be showcased at booth #518. CEO Kit Merker will present on Thursday, May 22, with a talk titled 'Beyond the Demo: Turning Computer Vision Prototypes into Scalable, Cost-Effective Solutions.'
'OpenFilter has revolutionized how we deploy vision AI for our manufacturing and logistics clients,' said Priyanshu Sharma, Senior Data Engineer at BrickRed Systems. 'With its modular filter architecture, we can quickly build and customize pipelines for tasks like automated quality inspection and real-time inventory tracking, without having to rewrite core infrastructure. This flexibility has enabled us to deliver robust, scalable solutions that meet our clients' evolving needs, while dramatically reducing development time and operational complexity.'
OpenFilter directly addresses the challenges enterprises face when working to deploy AI computer vision in production. Its frame deduplication and priority scheduling reduce GPU inference costs and its advanced abstractions reduce deployment timelines from weeks to days. Its extensible architecture future-proofs investments, making it easy to adapt it to audio, text, and multimodal AI, and positioning OpenFilter as a foundational platform for scalable, agentic computer vision systems.
Bridging the Prototype-to-Production Gap
Traditional computer vision projects often stall due to fragmented tooling and scalability challenges. OpenFilter addresses this with:
Open Source Core: Apache 2.0-licensed runtime with pre-built filters for common tasks (tracking, cropping, segmentation).
Filter Runtime: Manage video inputs (RTSP, webcams, image files), processing, and output routing to databases, MQTT, or APIs.
Modular Pipelines: Assemble filters for tasks like object detection, deduplication, or alerts into reusable workflows.
Flexible Deployment: Deploy filters across CPUs, GPUs, or edge devices, optimizing resource costs.
Broad Model Support: Integrate PyTorch, OpenCV, or custom models (e.g., YOLO) while avoiding vendor lock-in.
OpenFilter Use Cases:
Manufacturing: Automated quality inspection, defect and foreign object detection, and fill level monitoring on production lines.
Retailers and Food Service: Drive-through analytics, cup and condiment counting, and real-time inventory tracking.
Logistics and Supply Chain: Vehicle tracking, automated inventory management, and workflow automation.
Agriculture: Precision farming and livestock monitoring through drone and camera footage analysis.
Security: People counting, surveillance automation, and safety protocol enforcement
IoT and Edge: Event detection and alerting.
'Filters are the building blocks for operationalizing vision AI,' said Andrew Smith, CTO of Plainsight. 'Instead of wrestling with brittle pipelines and bespoke infrastructure, developers can snap together reusable components that scale from prototypes to production. It's how we make computer vision feel more like software engineering – and less like science experiments.'
'OpenFilter is a leap forward for open source, giving developers and data scientists a powerful, collaborative platform to build and scale computer vision AI,' said Chris Aniszczyk, CTO, CNCF. 'Its modular design and permissive Apache 2.0 license make it easy to adapt solutions for everything from agriculture and manufacturing to retail and logistics, helping organizations of all types and sizes unlock the value of vision-based AI.'
'OpenFilter is the abstraction the AI industry has been waiting for. We're making it possible for anyone – not just experts – to turn camera data into real business value, faster and at lower cost,' said Plainsight CEO Kit Merker. 'By treating vision workloads as modular filters, we give developers the power to build, scale, and update applications with the same ease and flexibility as modern cloud software. This isn't just about productivity, it's about democratizing computer vision, unlocking new use cases, and making AI accessible and sustainable for every organization. We believe this is the foundation for the next wave of AI-powered transformation.'
Availability
OpenFilter is available today under the Apache 2.0 license. Enterprises can join the Early Access Program for the commercial version of OpenFilter. Learn more at plainsight.ai.
Supporting Resources
About Plainsight
Plainsight empowers businesses to unlock actionable insights from visual data. Its open source and commercial solutions serve industries like manufacturing, agriculture, and security, prioritizing privacy, scalability, and responsible AI. Headquartered in Kirkland, Washington, Plainsight is backed by distributed systems pioneers from Amazon, Google, and Microsoft.
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"Based on this strong execution and our robust pipeline, we are raising our full-year fiscal 2025 targets, reinforcing our confidence in our growth trajectory and long-term value creation." Third Quarter Fiscal Year 2025 Financial Highlights Revenue Total revenue for the third quarter of fiscal year 2025 was $293.5 million, an increase of 22% from the same quarter in fiscal year 2024. Subscription and support revenue was $181.8 million, an increase of 32%; license revenue was $57.2 million, an increase of 2%; and services revenue was $54.5 million, an increase of 17%, each as compared to the same quarter in fiscal year 2024. As of April 30, 2025, annual recurring revenue, or ARR, was $960 million, compared to $864 million as of July 31, 2024. ARR results for interim quarterly periods in fiscal year 2025 are based on actual currency rates at the end of fiscal year 2024, held constant throughout the year. Profitability GAAP income from operations was $4.5 million for the third quarter of fiscal year 2025, compared with GAAP loss from operations of $16.7 million for the same quarter in fiscal year 2024. Non-GAAP income from operations was $46.1 million for the third quarter of fiscal year 2025, compared with $20.8 million for the same quarter in fiscal year 2024. GAAP net income was $46.0 million for the third quarter of fiscal year 2025, compared with GAAP net loss of $5.5 million for the same quarter in fiscal year 2024. GAAP net income per share was $0.54, based on diluted weighted average shares outstanding of 85.9 million, compared to GAAP net loss per share of $0.07 for the same quarter in fiscal year 2024, based on diluted weighted average shares outstanding of 82.5 million. Non-GAAP net income was $75.2 million for the third quarter of fiscal year 2025, compared with $21.7 million for the same quarter in fiscal year 2024. Non-GAAP net income per share was $0.88, based on diluted weighted average shares outstanding of 85.9 million, compared with $0.26 for the same quarter in fiscal year 2024, based on diluted weighted average shares outstanding of 84.0 million. Liquidity and Capital Resources Guidewire had $1,243.7 million in cash, cash equivalents, and investments at April 30, 2025, compared to $1,129.5 million at July 31, 2024. The increase was primarily due to proceeds received from our October 2024 issuance of the convertible senior notes due 2029 (the "2029 Convertible Senior Notes") and operating cash flow, partially offset by the settlement of the convertible senior notes due 2025 (the "2025 Convertible Senior Notes") and the purchase of capped calls related to the 2029 Convertible Senior Notes. The 2025 Convertible Senior Notes matured on March 15, 2025. The Company fully settled the outstanding $179.1 million aggregate principal amount of the 2025 Convertible Senior Notes through aggregate cash payments totaling $180.2 million, which included related accrued interest of $1.1 million, and the gross issuance of 671,202 shares of common stock. The Company received 697,140 gross shares of common stock from the settlement of the capped calls related to the 2025 Convertible Senior Notes. These shares received offset the 671,202 shares issued to holders of the 2025 Convertible Senior Notes upon maturity. As a result, the Company received 25,938 net shares, which were retired, resulting in a small decrease in the Company's shares outstanding. Business Outlook Guidewire is issuing the following outlook for the fourth quarter of fiscal year 2025 based on current expectations: Ending ARR between $1,012 million and $1,022 million Total revenue between $332 million and $340 million Operating income (loss) between $7 million and $15 million Non-GAAP operating income between $52 million and $60 million Guidewire is issuing the following updated outlook for fiscal year 2025 based on current expectations: Ending ARR between $1,012 million and $1,022 million Total revenue between $1,178 million and $1,186 million Operating income between $20 million and $28 million Non-GAAP operating income between $187 million and $195 million Operating cash flow between $255 million and $275 million Conference Call Information What: Guidewire Third Quarter Fiscal Year 2025 Financial Results Conference Call When: Tuesday, June 3, 2025 Time: 2:00 p.m. PT (5:00 p.m. ET) Dial-In: (669) 444-9171 Meeting ID: 938 6797 7475 Password: 779928 Webcast: (live and replay) The webcast will be archived on Guidewire's website ( for a period of three months. Non-GAAP Financial Measures and Other Metrics This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP tax provision (benefit), non-GAAP net income (loss) per share, and free cash flow. Non-GAAP gross profit and non-GAAP income (loss) from operations exclude stock-based compensation, amortization of intangibles, and acquisition consideration holdback. Non-GAAP net income (loss) and non-GAAP tax provision (benefit) also exclude the amortization of debt issuance costs from our convertible senior notes, changes in fair value of strategic investments, gain (loss) on sale of strategic investments, retirement of debt, and related tax effects of the non-GAAP adjustments. Free cash flow consists of net cash flow provided by (used in) operating activities less cash used for purchases of property and equipment and capitalized software development costs. These non-GAAP measures enable us to analyze our financial performance without the effects of certain non-cash items such as amortization and stock-based compensation. Annual recurring revenue ("ARR") is used to quantify the annualized recurring value outlined in active customer contracts at the end of a reporting period. ARR includes the annualized recurring value of term licenses, subscription agreements, support contracts, and hosting agreements based on customer contractual terms and invoicing activities for the current reporting period, which may not be the same as the timing and amount of revenue recognized. ARR reflects all fee changes due to contract renewals, non-renewals, expansion, cancellations, attrition, or renegotiations at a higher or lower fee arrangement that are effective as of the ARR reporting date. All components of the licensing and other arrangements that are not expected to recur (primarily perpetual licenses and professional services) are excluded from our ARR calculations. In some arrangements with multiple performance obligations, a portion of recurring license and support or subscription contract value is allocated to services revenue for revenue recognition purposes, but does not get allocated for purposes of calculating ARR. This revenue allocation generally only impacts the initial term of the contract. This means that if we increase arrangements with multiple performance obligations that include services at discounted rates, more of the total contract value would be recognized as services revenue, but our reported ARR amount would not be impacted. During the nine months ended April 30, 2025, the recurring license and support or subscription contract value recognized as services revenue was $8.1 million. Guidewire believes that these non-GAAP financial measures and other metrics provide useful information to management and investors regarding certain financial and business trends relating to Guidewire's financial condition and results of operations. Guidewire's management uses these non-GAAP measures and other metrics to compare the Company's performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation, and for budgeting and planning purposes. Guidewire believes that the use of these non-GAAP financial measures and other metrics provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Guidewire's financial measures with other software companies, many of which present similar non-GAAP financial measures and other metrics to investors. Guidewire's management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Guidewire's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Guidewire urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including the financial tables at the end of this press release, and not to rely on any single financial measure to evaluate Guidewire's business. About Guidewire Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. More than 570 insurers in 42 countries, from new ventures to the largest and most complex in the world, rely on Guidewire products. With core systems leveraging data and analytics, digital, and artificial intelligence, Guidewire defines cloud platform excellence for P&C insurers. We are proud of our unparalleled implementation record, with 1,700+ successful projects supported by the industry's largest R&D team and SI partner ecosystem. Our marketplace represents the largest solution partner community in P&C, where customers can access hundreds of applications to accelerate integration, localization, and innovation. Guidewire uses its Investor Relations website ( X (formerly known as Twitter) feed (@Guidewire_PandC), and LinkedIn page ( as a means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD. The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to Guidewire's press releases, filings with the Securities and Exchange Commission, public conference calls, and webcasts. NOTE: For information about Guidewire's trademarks, visit Cautionary Language Concerning Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and targets, and our future business momentum relating to our market leadership, sales activities, and financial performance expectations. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Guidewire's control. Guidewire's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Guidewire's most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission (the "SEC") as well as other documents that may be filed by Guidewire from time to time with the SEC. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: quarterly and annual operating results may fluctuate more than expected; seasonal and other variations related to our customer agreements and related revenue recognition may cause significant fluctuations in our results of operations, ARR, and cash flows; our reliance on sales to and renewals from a relatively small number of large customers for a substantial portion of our revenue and ARR; our making long-term pricing commitments in our customer contracts based on available information and estimates about our future costs that may change; our ability to successfully manage our business model, including achieving market acceptance of our cloud-based services and products and the costs related to cloud operations, cybersecurity, product development, and services; the timing, success, and number of professional services engagements and the billing rates and utilization of our professional services employees and contractors; the impact of global events (including, without limitation, ongoing global conflicts, inflation, high interest rates, economic volatility, political uncertainties, tariffs, bank failures and associated financial instability, and supply chain issues) on our employees, our business, and the businesses of our customers, system integrator ("SI") partners, and vendors; data security breaches of our cloud-based services and products or unauthorized access to our employees' or our customers' data; our competitive environment and changes thereto; issues in the development and use of AI and machine learning, combined with an uncertain regulatory environment; use of AI by our workforce may present risks to our business; errors or failures in our products or services, as well as service interruptions or failure of the third-party service providers we rely on; our services revenue produces lower gross margins than our license, subscription and support revenue; our product development and sales cycles are lengthy and may be affected by factors outside of our control; the impact of new regulations and laws (including, without limitation, security, privacy, AI and machine learning, tax regulations and laws, and accounting standards); assertions by third parties that we violate their intellectual property rights; weakened global economic conditions may adversely affect the P&C insurance industry, including the rate of information technology spending; our ability to sell our services and products is highly dependent on the quality of our professional services and SI partners; the risk of losing key employees; the challenges of international operations, including changes in foreign exchange rates; and other risks and uncertainties. Past performance is not indicative of future results. The forward-looking statements included in this press release represent Guidewire's views as of the date of this press release. Guidewire anticipates that subsequent events and developments will cause its views to change. Guidewire undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Guidewire's views as of any date subsequent to the date of this press release. GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) April 30, 2025 July 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 510,321 $ 547,992 Short-term investments 410,116 455,576 Accounts receivable, net 147,296 137,339 Unbilled accounts receivable, net 166,925 87,031 Prepaid expenses and other current assets 78,311 67,596 Total current assets 1,312,969 1,295,534 Long-term investments 323,305 125,885 Unbilled accounts receivable, net 791 4,157 Property and equipment, net 55,561 55,409 Operating lease assets 41,767 43,750 Intangible assets, net 13,482 9,005 Goodwill 393,592 372,214 Deferred tax assets, net 281,344 253,085 Other assets 65,260 67,255 TOTAL ASSETS $ 2,488,071 $ 2,226,294 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 28,952 $ 15,209 Accrued employee compensation 89,230 109,084 Deferred revenue, net 258,786 281,855 Convertible senior notes, net — 398,903 Other current liabilities 28,946 32,584 Total current liabilities 405,914 837,635 Lease liabilities 33,013 34,721 Convertible senior notes, net 673,696 — Deferred revenue, net 4,937 3,628 Other liabilities 7,936 7,578 Total liabilities 1,125,496 883,562 STOCKHOLDERS' EQUITY: Common stock 8 8 Additional paid-in capital 1,977,364 1,979,021 Accumulated other comprehensive income (loss) (8,597 ) (12,244 ) Retained earnings (accumulated deficit) (606,200 ) (624,053 ) Total stockholders' equity 1,362,575 1,342,732 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,488,071 $ 2,226,294 GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands except share and per share data) Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Revenue: Subscription and support $ 181,823 $ 137,970 $ 529,403 $ 397,239 License 57,233 56,210 158,297 161,318 Services 54,452 46,498 158,189 130,425 Total revenue 293,508 240,678 845,889 688,982 Cost of revenue(1): Subscription and support 57,411 51,185 170,531 149,173 License 892 837 2,715 3,539 Services 52,507 46,429 152,401 139,345 Total cost of revenue 110,810 98,451 325,647 292,057 Gross profit: Subscription and support 124,412 86,785 358,872 248,066 License 56,341 55,373 155,582 157,779 Services 1,945 69 5,788 (8,920 ) Total gross profit 182,698 142,227 520,242 396,925 Operating expenses(1): Research and development 72,915 66,134 212,063 194,061 Sales and marketing 57,768 50,487 164,698 144,249 General and administrative 47,547 42,302 132,010 121,502 Total operating expenses 178,230 158,923 508,771 459,812 Income (loss) from operations 4,468 (16,696 ) 11,471 (62,887 ) Interest income 13,794 10,824 43,122 31,727 Interest expense (3,668 ) (1,686 ) (9,913 ) (5,061 ) Other income (expense), net 34,074 (6,535 ) (36,270 ) (9,501 ) Income (loss) before provision for (benefit from) income taxes 48,668 (14,093 ) 8,410 (45,722 ) Provision for (benefit from) income taxes 2,677 (8,615 ) (9,443 ) (22,860 ) Net income (loss) $ 45,991 $ (5,478 ) $ 17,853 $ (22,862 ) Net income (loss) per share: Basic $ 0.55 $ (0.07 ) $ 0.21 $ (0.28 ) Diluted $ 0.54 $ (0.07 ) $ 0.21 $ (0.28 ) Shares used in computing net income (loss) per share: Basic 84,044,661 82,500,109 83,671,443 82,105,357 Diluted 85,880,643 82,500,109 85,654,903 82,105,357 (1)Amounts include stock-based compensation expense as follows: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Stock-based compensation expense: Cost of subscription and support revenue $ 3,598 $ 3,183 $ 10,511 $ 10,059 Cost of license revenue 32 — 104 148 Cost of services revenue 5,055 4,729 15,218 14,161 Research and development 10,267 10,003 30,560 30,127 Sales and marketing 10,832 9,349 31,400 25,268 General and administrative 10,573 9,386 31,572 29,411 Total stock-based compensation expense $ 40,357 $ 36,650 $ 119,365 $ 109,174 GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 45,991 $ (5,478 ) $ 17,853 $ (22,862 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 5,965 5,591 17,538 16,525 Amortization of debt issuance costs 1,058 434 2,782 1,296 Amortization of contract acquisition costs 4,726 4,124 14,597 12,869 Stock-based compensation 40,357 36,650 119,365 109,174 Changes to allowance for credit losses and revenue reserves 17 52 1,107 (142 ) Deferred income tax (1,692 ) (11,904 ) (15,851 ) (29,294 ) Amortization of premium (accretion of discount) on available-for-sale securities, net (2,064 ) (3,269 ) (8,613 ) (9,492 ) Gain on sale of strategic investments — — (3,671 ) (1,758 ) Changes in fair value of strategic investments 103 (298 ) 341 (298 ) Loss on retirement of debt — — 53,565 — Other non-cash items affecting net income (loss) 53 (28 ) 56 (74 ) Changes in operating assets and liabilities: Accounts receivable (23,426 ) 23,729 (10,609 ) 46,276 Unbilled accounts receivable (50,377 ) (35,057 ) (74,471 ) (33,955 ) Prepaid expenses and other assets (9,539 ) (9,551 ) (21,384 ) (22,082 ) Operating lease assets 1,375 2,060 1,983 6,106 Accounts payable 3,439 1,674 13,589 (10,538 ) Accrued employee compensation 26,278 14,053 (20,600 ) (25,604 ) Deferred revenue (7,354 ) (14,256 ) (24,876 ) (28,012 ) Lease liabilities (970 ) (1,891 ) (1,121 ) (5,136 ) Other liabilities (1,590 ) (1,832 ) (5,544 ) (1,028 ) Net cash provided by (used in) operating activities 32,350 4,803 56,036 1,971 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of available-for-sale securities (242,588 ) (138,595 ) (672,330 ) (453,441 ) Maturities and sales of available-for-sale securities 226,776 148,883 529,887 416,299 Purchases of property and equipment (703 ) (678 ) (2,336 ) (4,668 ) Capitalized software development costs (3,816 ) (3,371 ) (10,972 ) (9,429 ) Acquisition of strategic investments (1,000 ) (86 ) (1,772 ) (336 ) Sale of strategic investments — — 5,671 6,508 Acquisition of business, net of acquired cash (26,724 ) — (26,724 ) — Net cash provided by (used in) investing activities (48,055 ) 6,153 (178,576 ) (45,067 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of convertible senior notes, net of issuance costs — — 671,840 — Payment for the retirement of convertible senior notes — — (353,535 ) — Payment for the maturity of convertible senior notes (179,061 ) — (179,061 ) — Purchase of capped calls — — (58,788 ) — Payment of revolving credit facility costs — — (2,065 ) — Proceeds from issuance of common stock upon exercise of stock options 710 10 3,174 14 Net cash provided by (used in) financing activities (178,351 ) 10 81,565 14 Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash 6,888 (1,354 ) 3,303 (2,915 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (187,168 ) 9,612 (37,672 ) (45,997 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period 698,680 351,181 549,184 406,790 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period $ 511,512 $ 360,793 $ 511,512 $ 360,793 GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited, in thousands) The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Gross profit reconciliation: GAAP gross profit $ 182,698 $ 142,227 $ 520,242 $ 396,925 Non-GAAP adjustments: Stock-based compensation 8,685 7,912 25,833 24,368 Amortization of intangibles 485 485 1,455 1,455 Non-GAAP gross profit $ 191,868 $ 150,624 $ 547,530 $ 422,748 Income (loss) from operations reconciliation: GAAP income (loss) from operations $ 4,468 $ (16,696 ) $ 11,471 $ (62,887 ) Non-GAAP adjustments: Stock-based compensation 40,357 36,650 119,365 109,174 Amortization of intangibles 1,234 1,367 3,879 4,101 Acquisition consideration holdback — (542 ) — 143 Non-GAAP income (loss) from operations $ 46,059 $ 20,779 $ 134,715 $ 50,531 Net income (loss) reconciliation: GAAP net income (loss) $ 45,991 $ (5,478 ) $ 17,853 $ (22,862 ) Non-GAAP adjustments: Stock-based compensation 40,357 36,650 119,365 109,174 Amortization of intangibles 1,234 1,367 3,879 4,101 Acquisition consideration holdback — (542 ) — 143 Amortization of debt issuance costs 1,058 434 2,782 1,296 Changes in fair value of strategic investments 103 (298 ) 341 (298 ) Gain on sale of strategic investments — — (3,671 ) (1,758 ) Retirement of debt (1) — — 53,565 — Tax impact of non-GAAP adjustments (13,576 ) (10,469 ) (38,327 ) (29,289 ) Non-GAAP net income (loss) $ 75,167 $ 21,664 $ 155,787 $ 60,507 Tax provision (benefit) reconciliation: GAAP tax provision (benefit) $ 2,677 $ (8,615 ) $ (9,443 ) $ (22,860 ) Non-GAAP adjustments: Stock-based compensation 7,175 2,890 17,910 10,108 Amortization of intangibles 219 108 580 380 Acquisition consideration holdback — (43 ) — 25 Amortization of debt issuance costs 188 34 417 120 Changes in fair value of strategic investments 18 (23 ) 47 (23 ) Gain on sale of strategic investments — — (463 ) (191 ) Retirement of debt (1) — — 6,756 — Tax impact of non-GAAP adjustments 5,976 7,503 13,080 18,870 Non-GAAP tax provision (benefit) $ 16,253 $ 1,854 $ 28,884 $ 6,429 GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited, in thousands except share and per share data) The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Net income (loss) per share reconciliation: GAAP net income (loss) per share – diluted $ 0.54 $ (0.07 ) $ 0.21 $ (0.28 ) Non-GAAP adjustments: Stock-based compensation 0.47 0.44 1.39 1.31 Amortization of intangibles 0.01 0.02 0.05 0.05 Acquisition consideration holdback — (0.01 ) — — Amortization of debt issuance costs 0.01 0.01 0.03 0.02 Changes in fair value of strategic investments — — — — Gain on sale of strategic investments — — (0.04 ) (0.02 ) Retirement of debt (1) — — 0.63 — Tax impact of non-GAAP adjustments (0.15 ) (0.13 ) (0.45 ) (0.35 ) Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation — — — (0.01 ) Non-GAAP net income (loss) per share – diluted $ 0.88 $ 0.26 $ 1.82 $ 0.72 Shares used in computing non-GAAP net income (loss) per share amounts: GAAP weighted average shares – diluted 85,880,643 82,500,109 85,654,903 82,105,357 Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation — 1,453,086 — 1,293,859 GAAP and pro forma weighted average shares — diluted 85,880,643 83,953,195 85,654,903 83,399,216 (1) During the nine months ended April 30, 2025, the Company recorded a $53.6 million loss on retirement of debt in other income (expense) comprised of $53.3 million loss on extinguishment and $0.3 million loss on the induced conversion of a portion of its convertible senior notes due March 2025. Prior to the first quarter of fiscal year 2025, there were no transactions similar to the retirement of debt in any periods presented on the condensed consolidated statements of operations. The following table summarizes our free cash flow for the periods indicated below: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Free cash flow: Net cash provided by (used in) operating activities $ 32,350 $ 4,803 $ 56,036 $ 1,971 Purchases of property and equipment (703 ) (678 ) (2,336 ) (4,668 ) Capitalized software development costs (3,816 ) (3,371 ) (10,972 ) (9,429 ) Free cash flow $ 27,831 $ 754 $ 42,728 $ (12,126 ) GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Outlook The following table reconciles the specific items excluded from GAAP outlook in the calculation of non-GAAP outlook for the periods indicated below (in millions): Fourth Quarter Fiscal Year 2025 Fiscal Year 2025 Income (loss) from operations outlook reconciliation: GAAP income (loss) from operations $7 — $15 $20 — $28 Non-GAAP adjustments: Stock-based compensation 43 — 43 162 — 162 Amortization of intangibles 2 — 2 5 — 5 Non-GAAP income (loss) from operations $52 — $60 $187 — $195 View source version on Contacts Investor Contact: Alex HughesGuidewire(650) 356-4921ir@ Media Contact: Melissa CobbGuidewire(650) 464-1177mcobb@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Wire
19 minutes ago
- Business Wire
Guidewire Announces Third Quarter Fiscal Year 2025 Financial Results
SAN MATEO, Calif.--(BUSINESS WIRE)--Guidewire (NYSE: GWRE) today announced its financial results for the fiscal quarter ended April 30, 2025. 'We delivered exceptional third-quarter results, highlighted by record Q3 sales activity and 17 cloud deals,' said Mike Rosenbaum, chief executive officer, Guidewire. 'With Guidewire established as the clear worldwide leader in P&C core systems, we're increasing our market engagement activity, hosting our largest ever industry events in Paris, Tokyo, and Sydney, and our second annual Developer Summit in Bangalore, where we activated the industry's largest developer ecosystem.' 'ARR, revenue, and operating income results all finished above the high end of our guidance ranges in the third fiscal quarter,' said Jeff Cooper, chief financial officer, Guidewire. 'Based on this strong execution and our robust pipeline, we are raising our full-year fiscal 2025 targets, reinforcing our confidence in our growth trajectory and long-term value creation.' Third Quarter Fiscal Year 2025 Financial Highlights Revenue Total revenue for the third quarter of fiscal year 2025 was $293.5 million, an increase of 22% from the same quarter in fiscal year 2024. Subscription and support revenue was $181.8 million, an increase of 32%; license revenue was $57.2 million, an increase of 2%; and services revenue was $54.5 million, an increase of 17%, each as compared to the same quarter in fiscal year 2024. As of April 30, 2025, annual recurring revenue, or ARR, was $960 million, compared to $864 million as of July 31, 2024. ARR results for interim quarterly periods in fiscal year 2025 are based on actual currency rates at the end of fiscal year 2024, held constant throughout the year. Profitability GAAP income from operations was $4.5 million for the third quarter of fiscal year 2025, compared with GAAP loss from operations of $16.7 million for the same quarter in fiscal year 2024. Non-GAAP income from operations was $46.1 million for the third quarter of fiscal year 2025, compared with $20.8 million for the same quarter in fiscal year 2024. GAAP net income was $46.0 million for the third quarter of fiscal year 2025, compared with GAAP net loss of $5.5 million for the same quarter in fiscal year 2024. GAAP net income per share was $0.54, based on diluted weighted average shares outstanding of 85.9 million, compared to GAAP net loss per share of $0.07 for the same quarter in fiscal year 2024, based on diluted weighted average shares outstanding of 82.5 million. Non-GAAP net income was $75.2 million for the third quarter of fiscal year 2025, compared with $21.7 million for the same quarter in fiscal year 2024. Non-GAAP net income per share was $0.88, based on diluted weighted average shares outstanding of 85.9 million, compared with $0.26 for the same quarter in fiscal year 2024, based on diluted weighted average shares outstanding of 84.0 million. Liquidity and Capital Resources Guidewire had $1,243.7 million in cash, cash equivalents, and investments at April 30, 2025, compared to $1,129.5 million at July 31, 2024. The increase was primarily due to proceeds received from our October 2024 issuance of the convertible senior notes due 2029 (the '2029 Convertible Senior Notes') and operating cash flow, partially offset by the settlement of the convertible senior notes due 2025 (the '2025 Convertible Senior Notes') and the purchase of capped calls related to the 2029 Convertible Senior Notes. The 2025 Convertible Senior Notes matured on March 15, 2025. The Company fully settled the outstanding $179.1 million aggregate principal amount of the 2025 Convertible Senior Notes through aggregate cash payments totaling $180.2 million, which included related accrued interest of $1.1 million, and the gross issuance of 671,202 shares of common stock. The Company received 697,140 gross shares of common stock from the settlement of the capped calls related to the 2025 Convertible Senior Notes. These shares received offset the 671,202 shares issued to holders of the 2025 Convertible Senior Notes upon maturity. As a result, the Company received 25,938 net shares, which were retired, resulting in a small decrease in the Company's shares outstanding. Business Outlook Guidewire is issuing the following outlook for the fourth quarter of fiscal year 2025 based on current expectations: Ending ARR between $1,012 million and $1,022 million Total revenue between $332 million and $340 million Operating income (loss) between $7 million and $15 million Non-GAAP operating income between $52 million and $60 million Guidewire is issuing the following updated outlook for fiscal year 2025 based on current expectations: Ending ARR between $1,012 million and $1,022 million Total revenue between $1,178 million and $1,186 million Operating income between $20 million and $28 million Non-GAAP operating income between $187 million and $195 million Operating cash flow between $255 million and $275 million Conference Call Information The webcast will be archived on Guidewire's website ( for a period of three months. Non-GAAP Financial Measures and Other Metrics This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP tax provision (benefit), non-GAAP net income (loss) per share, and free cash flow. Non-GAAP gross profit and non-GAAP income (loss) from operations exclude stock-based compensation, amortization of intangibles, and acquisition consideration holdback. Non-GAAP net income (loss) and non-GAAP tax provision (benefit) also exclude the amortization of debt issuance costs from our convertible senior notes, changes in fair value of strategic investments, gain (loss) on sale of strategic investments, retirement of debt, and related tax effects of the non-GAAP adjustments. Free cash flow consists of net cash flow provided by (used in) operating activities less cash used for purchases of property and equipment and capitalized software development costs. These non-GAAP measures enable us to analyze our financial performance without the effects of certain non-cash items such as amortization and stock-based compensation. Annual recurring revenue ('ARR') is used to quantify the annualized recurring value outlined in active customer contracts at the end of a reporting period. ARR includes the annualized recurring value of term licenses, subscription agreements, support contracts, and hosting agreements based on customer contractual terms and invoicing activities for the current reporting period, which may not be the same as the timing and amount of revenue recognized. ARR reflects all fee changes due to contract renewals, non-renewals, expansion, cancellations, attrition, or renegotiations at a higher or lower fee arrangement that are effective as of the ARR reporting date. All components of the licensing and other arrangements that are not expected to recur (primarily perpetual licenses and professional services) are excluded from our ARR calculations. In some arrangements with multiple performance obligations, a portion of recurring license and support or subscription contract value is allocated to services revenue for revenue recognition purposes, but does not get allocated for purposes of calculating ARR. This revenue allocation generally only impacts the initial term of the contract. This means that if we increase arrangements with multiple performance obligations that include services at discounted rates, more of the total contract value would be recognized as services revenue, but our reported ARR amount would not be impacted. During the nine months ended April 30, 2025, the recurring license and support or subscription contract value recognized as services revenue was $8.1 million. Guidewire believes that these non-GAAP financial measures and other metrics provide useful information to management and investors regarding certain financial and business trends relating to Guidewire's financial condition and results of operations. Guidewire's management uses these non-GAAP measures and other metrics to compare the Company's performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation, and for budgeting and planning purposes. Guidewire believes that the use of these non-GAAP financial measures and other metrics provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Guidewire's financial measures with other software companies, many of which present similar non-GAAP financial measures and other metrics to investors. Guidewire's management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Guidewire's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Guidewire urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including the financial tables at the end of this press release, and not to rely on any single financial measure to evaluate Guidewire's business. About Guidewire Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. More than 570 insurers in 42 countries, from new ventures to the largest and most complex in the world, rely on Guidewire products. With core systems leveraging data and analytics, digital, and artificial intelligence, Guidewire defines cloud platform excellence for P&C insurers. We are proud of our unparalleled implementation record, with 1,700+ successful projects supported by the industry's largest R&D team and SI partner ecosystem. Our marketplace represents the largest solution partner community in P&C, where customers can access hundreds of applications to accelerate integration, localization, and innovation. Guidewire uses its Investor Relations website ( X (formerly known as Twitter) feed (@Guidewire_PandC), and LinkedIn page ( as a means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD. The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to Guidewire's press releases, filings with the Securities and Exchange Commission, public conference calls, and webcasts. Cautionary Language Concerning Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and targets, and our future business momentum relating to our market leadership, sales activities, and financial performance expectations. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as 'expect,' 'anticipate,' 'should,' 'believe,' 'hope,' 'target,' 'project,' 'goals,' 'estimate,' 'potential,' 'predict,' 'may,' 'will,' 'might,' 'could,' 'intend,' variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Guidewire's control. Guidewire's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Guidewire's most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission (the 'SEC') as well as other documents that may be filed by Guidewire from time to time with the SEC. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: quarterly and annual operating results may fluctuate more than expected; seasonal and other variations related to our customer agreements and related revenue recognition may cause significant fluctuations in our results of operations, ARR, and cash flows; our reliance on sales to and renewals from a relatively small number of large customers for a substantial portion of our revenue and ARR; our making long-term pricing commitments in our customer contracts based on available information and estimates about our future costs that may change; our ability to successfully manage our business model, including achieving market acceptance of our cloud-based services and products and the costs related to cloud operations, cybersecurity, product development, and services; the timing, success, and number of professional services engagements and the billing rates and utilization of our professional services employees and contractors; the impact of global events (including, without limitation, ongoing global conflicts, inflation, high interest rates, economic volatility, political uncertainties, tariffs, bank failures and associated financial instability, and supply chain issues) on our employees, our business, and the businesses of our customers, system integrator ('SI') partners, and vendors; data security breaches of our cloud-based services and products or unauthorized access to our employees' or our customers' data; our competitive environment and changes thereto; issues in the development and use of AI and machine learning, combined with an uncertain regulatory environment; use of AI by our workforce may present risks to our business; errors or failures in our products or services, as well as service interruptions or failure of the third-party service providers we rely on; our services revenue produces lower gross margins than our license, subscription and support revenue; our product development and sales cycles are lengthy and may be affected by factors outside of our control; the impact of new regulations and laws (including, without limitation, security, privacy, AI and machine learning, tax regulations and laws, and accounting standards); assertions by third parties that we violate their intellectual property rights; weakened global economic conditions may adversely affect the P&C insurance industry, including the rate of information technology spending; our ability to sell our services and products is highly dependent on the quality of our professional services and SI partners; the risk of losing key employees; the challenges of international operations, including changes in foreign exchange rates; and other risks and uncertainties. Past performance is not indicative of future results. The forward-looking statements included in this press release represent Guidewire's views as of the date of this press release. Guidewire anticipates that subsequent events and developments will cause its views to change. Guidewire undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Guidewire's views as of any date subsequent to the date of this press release. (unaudited, in thousands) 2 025 July 31, 2 024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 510,321 $ 547,992 Short-term investments 410,116 455,576 Accounts receivable, net 147,296 137,339 Unbilled accounts receivable, net 166,925 87,031 Prepaid expenses and other current assets 78,311 67,596 Total current assets 1,312,969 1,295,534 Long-term investments 323,305 125,885 Unbilled accounts receivable, net 791 4,157 Property and equipment, net 55,561 55,409 Operating lease assets 41,767 43,750 Intangible assets, net 13,482 9,005 Goodwill 393,592 372,214 Deferred tax assets, net 281,344 253,085 Other assets 65,260 67,255 TOTAL ASSETS $ 2,488,071 $ 2,226,294 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 28,952 $ 15,209 Accrued employee compensation 89,230 109,084 Deferred revenue, net 258,786 281,855 Convertible senior notes, net — 398,903 Other current liabilities 28,946 32,584 Total current liabilities 405,914 837,635 Lease liabilities 33,013 34,721 Convertible senior notes, net 673,696 — Deferred revenue, net 4,937 3,628 Other liabilities 7,936 7,578 Total liabilities 1,125,496 883,562 STOCKHOLDERS' EQUITY: Common stock 8 8 Additional paid-in capital 1,977,364 1,979,021 Accumulated other comprehensive income (loss) (8,597 ) (12,244 ) Retained earnings (accumulated deficit) (606,200 ) (624,053 ) Total stockholders' equity 1,362,575 1,342,732 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,488,071 $ 2,226,294 Expand GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES (unaudited, in thousands except share and per share data) 2025 2024 2025 2024 Revenue: Subscription and support $ 181,823 $ 137,970 $ 529,403 $ 397,239 License 57,233 56,210 158,297 161,318 Services 54,452 46,498 158,189 130,425 Total revenue 293,508 240,678 845,889 688,982 Cost of revenue (1): Subscription and support 57,411 51,185 170,531 149,173 License 892 837 2,715 3,539 Services 52,507 46,429 152,401 139,345 Total cost of revenue 110,810 98,451 325,647 292,057 Gross profit: Subscription and support 124,412 86,785 358,872 248,066 License 56,341 55,373 155,582 157,779 Services 1,945 69 5,788 (8,920 ) Total gross profit 182,698 142,227 520,242 396,925 Operating expenses (1): Research and development 72,915 66,134 212,063 194,061 Sales and marketing 57,768 50,487 164,698 144,249 General and administrative 47,547 42,302 132,010 121,502 Total operating expenses 178,230 158,923 508,771 459,812 Income (loss) from operations 4,468 (16,696 ) 11,471 (62,887 ) Interest income 13,794 10,824 43,122 31,727 Interest expense (3,668 ) (1,686 ) (9,913 ) (5,061 ) Other income (expense), net 34,074 (6,535 ) (36,270 ) (9,501 ) Income (loss) before provision for (benefit from) income taxes 48,668 (14,093 ) 8,410 (45,722 ) Provision for (benefit from) income taxes 2,677 (8,615 ) (9,443 ) (22,860 ) Net income (loss) $ 45,991 $ (5,478 ) $ 17,853 $ (22,862 ) Net income (loss) per share: Basic $ 0.55 $ (0.07 ) $ 0.21 $ (0.28 ) Diluted $ 0.54 $ (0.07 ) $ 0.21 $ (0.28 ) Shares used in computing net income (loss) per share: Expand (1) Amounts include stock-based compensation expense as follows: GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 45,991 $ (5,478 ) $ 17,853 $ (22,862 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 5,965 5,591 17,538 16,525 Amortization of debt issuance costs 1,058 434 2,782 1,296 Amortization of contract acquisition costs 4,726 4,124 14,597 12,869 Stock-based compensation 40,357 36,650 119,365 109,174 Changes to allowance for credit losses and revenue reserves 17 52 1,107 (142 ) Deferred income tax (1,692 ) (11,904 ) (15,851 ) (29,294 ) Amortization of premium (accretion of discount) on available-for-sale securities, net (2,064 ) (3,269 ) (8,613 ) (9,492 ) Gain on sale of strategic investments — — (3,671 ) (1,758 ) Changes in fair value of strategic investments 103 (298 ) 341 (298 ) Loss on retirement of debt — — 53,565 — Other non-cash items affecting net income (loss) 53 (28 ) 56 (74 ) Changes in operating assets and liabilities: Accounts receivable (23,426 ) 23,729 (10,609 ) 46,276 Unbilled accounts receivable (50,377 ) (35,057 ) (74,471 ) (33,955 ) Prepaid expenses and other assets (9,539 ) (9,551 ) (21,384 ) (22,082 ) Operating lease assets 1,375 2,060 1,983 6,106 Accounts payable 3,439 1,674 13,589 (10,538 ) Accrued employee compensation 26,278 14,053 (20,600 ) (25,604 ) Deferred revenue (7,354 ) (14,256 ) (24,876 ) (28,012 ) Lease liabilities (970 ) (1,891 ) (1,121 ) (5,136 ) Other liabilities (1,590 ) (1,832 ) (5,544 ) (1,028 ) Net cash provided by (used in) operating activities 32,350 4,803 56,036 1,971 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of available-for-sale securities (242,588 ) (138,595 ) (672,330 ) (453,441 ) Maturities and sales of available-for-sale securities 226,776 148,883 529,887 416,299 Purchases of property and equipment (703 ) (678 ) (2,336 ) (4,668 ) Capitalized software development costs (3,816 ) (3,371 ) (10,972 ) (9,429 ) Acquisition of strategic investments (1,000 ) (86 ) (1,772 ) (336 ) Sale of strategic investments — — 5,671 6,508 Acquisition of business, net of acquired cash (26,724 ) — (26,724 ) — Net cash provided by (used in) investing activities (48,055 ) 6,153 (178,576 ) (45,067 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of convertible senior notes, net of issuance costs — — 671,840 — Payment for the retirement of convertible senior notes — — (353,535 ) — Payment for the maturity of convertible senior notes (179,061 ) — (179,061 ) — Purchase of capped calls — — (58,788 ) — Payment of revolving credit facility costs — — (2,065 ) — Proceeds from issuance of common stock upon exercise of stock options 710 10 3,174 14 Net cash provided by (used in) financing activities (178,351 ) 10 81,565 14 Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash 6,888 (1,354 ) 3,303 (2,915 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (187,168 ) 9,612 (37,672 ) (45,997 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period 698,680 351,181 549,184 406,790 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period $ 511,512 $ 360,793 $ 511,512 $ 360,793 Expand GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES (unaudited, in thousands) 2025 2024 2025 2024 Gross profit reconciliation: GAAP gross profit $ 182,698 $ 142,227 $ 520,242 $ 396,925 Non-GAAP adjustments: Stock-based compensation 8,685 7,912 25,833 24,368 Amortization of intangibles 485 485 1,455 1,455 Non-GAAP gross profit $ 191,868 $ 150,624 $ 547,530 $ 422,748 Income (loss) from operations reconciliation: GAAP income (loss) from operations $ 4,468 $ (16,696 ) $ 11,471 $ (62,887 ) Non-GAAP adjustments: Stock-based compensation 40,357 36,650 119,365 109,174 Amortization of intangibles 1,234 1,367 3,879 4,101 Acquisition consideration holdback — (542 ) — 143 Non-GAAP income (loss) from operations $ 46,059 $ 20,779 $ 134,715 $ 50,531 Net income (loss) reconciliation: GAAP net income (loss) $ 45,991 $ (5,478 ) $ 17,853 $ (22,862 ) Non-GAAP adjustments: Stock-based compensation 40,357 36,650 119,365 109,174 Amortization of intangibles 1,234 1,367 3,879 4,101 Acquisition consideration holdback — (542 ) — 143 Amortization of debt issuance costs 1,058 434 2,782 1,296 Changes in fair value of strategic investments 103 (298 ) 341 (298 ) Gain on sale of strategic investments — — (3,671 ) (1,758 ) Retirement of debt (1) — — 53,565 — Tax impact of non-GAAP adjustments (13,576 ) (10,469 ) (38,327 ) (29,289 ) Non-GAAP net income (loss) $ 75,167 $ 21,664 $ 155,787 $ 60,507 Tax provision (benefit) reconciliation: GAAP tax provision (benefit) $ 2,677 $ (8,615 ) $ (9,443 ) $ (22,860 ) Non-GAAP adjustments: Stock-based compensation 7,175 2,890 17,910 10,108 Amortization of intangibles 219 108 580 380 Acquisition consideration holdback — (43 ) — 25 Amortization of debt issuance costs 188 34 417 120 Changes in fair value of strategic investments 18 (23 ) 47 (23 ) Gain on sale of strategic investments — — (463 ) (191 ) Retirement of debt (1) — — 6,756 — Tax impact of non-GAAP adjustments 5,976 7,503 13,080 18,870 Non-GAAP tax provision (benefit) $ 16,253 $ 1,854 $ 28,884 $ 6,429 Expand GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited, in thousands except share and per share data) The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below: Three Months Ended April 30, Nine Months Ended April 30, 2025 2024 2025 2024 Net income (loss) per share reconciliation: GAAP net income (loss) per share – diluted $ 0.54 $ (0.07 ) $ 0.21 $ (0.28 ) Non-GAAP adjustments: Stock-based compensation 0.47 0.44 1.39 1.31 Amortization of intangibles 0.01 0.02 0.05 0.05 Acquisition consideration holdback — (0.01 ) — — Amortization of debt issuance costs 0.01 0.01 0.03 0.02 Changes in fair value of strategic investments — — — — Gain on sale of strategic investments — — (0.04 ) (0.02 ) Retirement of debt (1) — — 0.63 — Tax impact of non-GAAP adjustments (0.15 ) (0.13 ) (0.45 ) (0.35 ) Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation — — — (0.01 ) Non-GAAP net income (loss) per share – diluted $ 0.88 $ 0.26 $ 1.82 $ 0.72 Shares used in computing non-GAAP net income (loss) per share amounts: GAAP weighted average shares – diluted 85,880,643 82,500,109 85,654,903 82,105,357 Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation — 1,453,086 — 1,293,859 GAAP and pro forma weighted average shares — diluted 85,880,643 83,953,195 85,654,903 83,399,216 Expand (1) During the nine months ended April 30, 2025, the Company recorded a $53.6 million loss on retirement of debt in other income (expense) comprised of $53.3 million loss on extinguishment and $0.3 million loss on the induced conversion of a portion of its convertible senior notes due March 2025. Prior to the first quarter of fiscal year 2025, there were no transactions similar to the retirement of debt in any periods presented on the condensed consolidated statements of operations. The following table summarizes our free cash flow for the periods indicated below: GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES The following table reconciles the specific items excluded from GAAP outlook in the calculation of non-GAAP outlook for the periods indicated below (in millions): Fourth Quarter Fiscal Year 2025 Fiscal Year 2025 Income (loss) from operations outlook reconciliation: GAAP income (loss) from operations $7 — $15 $20 — $28 Non-GAAP adjustments: Stock-based compensation 43 — 43 162 — 162 Amortization of intangibles 2 — 2 5 — 5 Non-GAAP income (loss) from operations $52 — $60 $187 — $195 Expand
Business Wire
20 minutes ago
- Business Wire
Reinsurance Group of America Ranked #196 on the 2025 Fortune 500 List
ST. LOUIS--(BUSINESS WIRE)-- Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, announced today it has been ranked #196 on the 2025 Fortune 500 list, moving up 27 positions from its 2024 rank and breaking into the top 200 for the first time. The annual list, which ranks US-based companies by total revenue, appears in the June/July issue of Fortune magazine. This achievement, made possible by our incomparable team in the US and worldwide, underscores our strong momentum. Share 'RGA's ascent to the top 200 in the Fortune 500 rankings signifies more than growth—it illustrates our enduring commitment to empower financial security and peace of mind globally,' said Tony Cheng, President and CEO, RGA. 'This achievement, made possible by our incomparable team in the US and worldwide, underscores our strong momentum. By focusing on client relationships and innovative solutions, we continue to lead the way in expanding financial protection and delivering value to our clients and stakeholders.' As the only global reinsurer exclusively dedicated to life and health, RGA has consistently expanded its reach and influence. RGA premiered on the Fortune 500 ranking in 2010 at #321 and has significantly improved its position, rising 125 spots since its debut. RGA's growth underscores its mission-driven approach and commitment to providing meaningful financial solutions that support individuals and families worldwide. About RGA Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is today one of the world's largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus — all directed toward creating sustainable long-term value. RGA has approximately $4.0 trillion of life reinsurance in force and assets of $128.2 billion as of March 31, 2025. To learn more about RGA and its businesses, please visit or follow RGA on LinkedIn and Facebook. Investors can learn more at
