Quality Investor

Guidewire Software, Inc.

Rank #153HypergrowthWatchlistCompare with other stocks

GWRE · NYSE · Technology

Guidewire Software, Inc. (GWRE) — Rank #153 by gross profitability (GP/assets 0.37) · ROE 11.7% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0001528396 · all metrics point-in-time as of the filing date.

About

Guidewire Software, Inc. provides a platform for property and casualty (P&C) insurers the United States, Canada, other Americas, Europe, the Middle East, Africa, and Asia-Pacific.

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It offers Guidewire InsuranceSuite, such as PolicyCenter, ClaimCenter, BillingCenter, PricingCenter, and UnderwritingCente applications. The company also provides Guidewire InsuranceNow, a cloud-based application that offers policy administration, claims management, and billing functionality, plus pre-integrated document production, analytics, and other capabilities. In addition, it offers Guidewire Rating Management to manage the pricing of insurance services and products; Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes; Guidewire Client Data Management that helps P&C insurers to capitalize on customer information; Guidewire Advanced Product Designer, a cloud-native application for insurance product design and management; Guidewire Product Content Management provides software tools and standards-based, line-of-business templates; and Guidewire ProNavigator, an AI-powered intelligent assistant. Further, the company provides Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences; Guidewire HazardHub that allows insurers to understand, assess, price, and manage property risk; Guidewire Predict, a P&C-specific machine-learning platform; Guidewire Data Studio, Guidewire Canvas, Guidewire Compare, Guidewire industry Intel, and Guidewire Explore, an cloud-native applications; Guidewire Cyence, a cyber-risk economic modeling product; Guidewire DataHub, an operational data store; and Guidewire InfoCenter, a business intelligence warehouse for P&C insurers.

The company was incorporated in 2001 and is headquartered in San Mateo, California.

Industry
Software - Application
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
July 31

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

4,174

Industry

Software - Application

Exchange

NYSE

11/11

Flags passed

GWRE passes 11/11 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · RPO outpacing revenue

No data Balance sheet — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.37
Return on equity
11.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.16
Current ratio
1.79×
Net cash
—

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
12.3%

Growth

2/2 pass
Revenue growth
22.7%
Piotroski F-Score
N/A
Share dilution
-0.6%

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 51st percentile of 36 SIC 7372 peers

Gross profitability (GP / assets)

0.37

Primary signal (Novy-Marx).

51st pctl of 36 SIC 7372 peers

Return on equity

11.7%

Gross margin

64.2%

31st pctl of 36 SIC 7372 peers

Revenue growth (YoY)

22.7%

RPO growth (YoY)

38.7%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

17.7%

Revenue CAGR (5Y)

14.7%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

126.3%

Cash Flow Health

Is the cash real?

No warning flags · FCF 171% above net income

Free cash flow

$377.66M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

171.1%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

12.3%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.16

16th pctl of 32 SIC 7372 peers (best = lowest)

Current ratio

1.79×

43rd pctl of 36 SIC 7372 peers

Quick ratio

1.42×

Net cash

—

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

2.0 / 5

Fair
Share count trend(net buybacks)
-0.6%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory
N/A0/5 Weak

Lifecycle Phase History

20212026
Startup
Hypergrowth

Price History

GWRE+18.9% · +3.5% CAGRSPY+82.9% · +12.8% CAGR