Guidewire(US:GWRE)2025-12-03 21:10Financial Performance - Total revenue for Q1 FY 2026 was $332.6 million, a 27% increase year-over-year[6] - Subscription and support revenue reached $222.2 million, up 31% compared to the same quarter in FY 2025[6] - Annual recurring revenue (ARR) grew to $1,063 million, reflecting a year-over-year increase of 22%[6] - GAAP net income for Q1 FY 2026 was $31.3 million, compared to $9.1 million in the same quarter of FY 2025[6] - Non-GAAP net income for Q1 FY 2026 was $57.0 million, an increase from $36.7 million in Q1 FY 2025[6] - Total revenue for the three months ended October 31, 2025, was $332,639,000, representing a 26.5% increase from $262,901,000 in the same period of 2024[22] - Net income for the three months ended October 31, 2025, was $31,308,000, compared to $9,139,000 in the same period of 2024, marking a significant increase[22] - Subscription and support revenue increased to $222,203,000, up 30.8% from $169,742,000 year-over-year[22] - The company reported a gross profit of $209,522,000, up from $158,392,000, representing a 32.3% increase year-over-year[26] Guidance and Outlook - Guidewire raised its fiscal year 2026 outlook based on strong sales momentum and performance exceeding expectations[2] - The company expects ending ARR for Q2 FY 2026 to be between $1,107 million and $1,113 million[9] - Total revenue guidance for FY 2026 is projected between $1,403 million and $1,419 million[9] - GAAP income from operations outlook for Fiscal Year 2026 is projected to be $19 million for Q2, increasing to $88 million by the end of the fiscal year[29] - Non-GAAP income from operations for Fiscal Year 2026 is expected to rise from $68 million in Q2 to $282 million by the end of the fiscal year[29] Cash and Assets - As of October 31, 2025, Guidewire had $1,409.3 million in cash, cash equivalents, and investments[5] - Total current assets decreased to $1,357,024,000 from $1,507,415,000, a decline of 9.9%[20] - Cash and cash equivalents at the end of the period were $493,230,000, down from $824,754,000, a decrease of 40.2%[25] Expenses and Costs - Research and development expenses increased to $78,317,000, up from $68,880,000, reflecting a growth of 13.3%[22] - Stock-based compensation expense totaled $43,316,000, compared to $38,060,000 in the same period of 2024, an increase of 13.4%[23] - Stock-based compensation for Q2 of Fiscal Year 2026 is estimated at $47 million, totaling $185 million for the fiscal year[29] - Amortization of intangibles for Q2 of Fiscal Year 2026 is projected at $2 million, with a total of $9 million for the fiscal year[29] Share and Cash Flow - The number of diluted shares used in computing non-GAAP net income per share increased from 85,960,868 in Q3 2024 to 86,451,737 in Q3 2025[27] - Free cash flow for Q3 2025 was $(77,364) thousand, a decline from $(67,381) thousand in Q3 2024[27] - Net cash used in operating activities for Q3 2025 was $(67,398) thousand, compared to $(62,305) thousand in Q3 2024[27] - Capitalized software development costs for Q3 2025 were $(5,088) thousand, up from $(4,233) thousand in Q3 2024[27] Product Development - Guidewire launched new pricing and underwriting products at its annual customer conference, enhancing its cloud platform offerings[2]