Is the business good?
How good a business is GWRE?
Guidewire Software, Inc. earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.3 points above what the capital costs: growth creates value
- Operating margin
- 8.3%
Operating margin · Software - Application median 8.2% · 12 months to Q3 2026
- Cash conversion
- 2.11×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −0.95%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −3.2% |
| FY2021 | −14% |
| FY2022 | −25% |
| FY2023 | −17% |
| FY2024 | −5.4% |
| FY2025 | 3.4% |
Details›
- Gross margin12 months to Q3 2026
- 64%
- Operating margin12 months to Q3 2026
- 8.3%
- Net margin12 months to Q3 2026
- 11%
- Free cash flow margin
- 24%
- R&D as % of revenue
- 23%
- Revenue, trailing twelve months
- $1.42B
- Free cash flow, trailing twelve months
- $337M
- Net income, trailing twelve months
- $160M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #42 of 90 by Smart Score