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Q4 Fiscal 2026 Earnings September 3, 2026
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Safe Harbor This presentation 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, strategic initiatives, and future business momentum. 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 our 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 our 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 us 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: fluctuations in our quarterly and annual operating results; our reliance on sales to, and renewals from, a relatively small number of large customers and the related substantial negotiating leverage of these customers; the length and complexity of our sales, product development, and implementation cycles; our competitive environment and changes thereto; our ability to effectively manage international expansion; issues in the development, adoption, deployment, workforce use and maintenance of artificial intelligence (“AI”) technologies combined with an uncertain and evolving regulatory environment; long-term pricing commitments made in our customer contracts based on available information; our ability to expand adoption of our cloud-based products and services, and the risk that any of our established products may fail to satisfy customer demands or maintain market acceptance; the impact of seasonal and other variations related to our customer agreements and revenue recognition on our results of operations, ARR, and cash flows; our ability to develop, introduce, and market new and enhanced versions of our products and services; our ability to retain existing and hire new personnel; 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 dependence on the quality of our professional services and third-party global system integrator partners to sell our products and services; the impact of changes in our revenue mix, and the realization of lower gross margins from our services, subscription, and support revenues compared to our license revenue; the impact of global events (including, without limitation, macroeconomic and geopolitical conditions, ongoing global conflicts, inflation, high interest rates, and general economic volatility); data security breaches of our cloud-based services and products or unauthorized access to our employees’ or our customers’ data; the impact of evolving 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; stock price volatility regardless of our operating performance; and other risks and uncertainties. Past performance is not indicative of future results. The forward-looking statements included in this presentation represent Guidewire’s views as of the date of this presentation. 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 our views as of any date subsequent to the date of this presentation.
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Statement Regarding Use of Non-GAAP Financial Measures and Other Metrics This presentation contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP subscription and support gross margin, non-GAAP operating margin, 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, non-GAAP gross margin, non-GAAP subscription and support gross margin, non-GAAP operating margin, and non-GAAP income (loss) from operations exclude stock-based compensation, amortization of intangibles, and acquisition consideration holdback. Non-GAAP net income (loss), non-GAAP net income (loss) per share, 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, gains and losses on sale of strategic investments, retirement of debt, unrealized foreign exchange rate gains and losses, 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 twelve months ended July 31, 2026, the recurring license and support or subscription contract value recognized as services revenue was $7.2 million. Fully ramped annual recurring revenue (“fully ramped ARR” or “FRARR”) is used to quantify the annualized recurring value outlined in active customer contracts including all non-variable price increases outlined in the pricing schedule of an executed customer contract within the first five years. 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 this presentation, including the financial table in the appendix, and not to rely on any single financial measure to evaluate Guidewire’s business. Certain figures included in this document have been subjected to rounding adjustments. Accordingly, figures shown in the same category presented in different tables may vary slightly and figures shown as totals in certain tables may not be an arithmetic aggregation of the figures that precede them.
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is to power insurance agility with the platform P&C insurers trust to engage, innovate, and grow efficiently Our mission 4
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The P&C industry is large, global, concentrated, and complex APAC AMER EMEA ~90 Insurers ~250 Insurers >2,000 Insurers ~$2.0T DWP ~$0.6T DWP ~$0.4T DWP Tier 1 DWP > $5B Tier 2 $1B < DWP < $5B Tier 3/4/5 DWP < $1B Sources: NAIC and SwissRe Sigma No 2/2025. US DWP from NAIC P&C insurance data. Non-US DWP from SwissRe Sigma No 2/2025 report, which estimates non-life premiums and is inclusive of A&H.Tier 1 and 2 Insurers represent 85%+ of DWP supporting our prolonged focus on the specific complexities of this segment Our ability to leverage a common platform worldwide allows us to more than double our AMER TAM Property & Casualty Insurance ● Durable industry with $3T in global direct written premium (DWP) and steadily growing in-line with GDP ● Led by many segments that are legally and practically compulsory ● Deep and complex regulatory environments ● Concentration has created highly complex IT environments with significant legacy to modernize ~$3.0T DWP Tier 1 and 2 Insurers represent 85%+ of DWP supporting our prolonged focus on the specific complexities of this segment Global industry with DWP across AMER/EMEA/APAC 5
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● Insurance is a highly regulated, trust-based industry that evolves deliberately and depends on precision, resilience, compliance, and accuracy at scale ● Guidewire Cloud Platform (GWCP) is the operational and financial backbone of the insurer, embedded across the core operating functions of the insurance lifecycle, including pricing, underwriting, policy, claims, and billing ● GWCP is run as a continuously improving, secure, reliable, and scalable cloud service DWP under contract1 $858B Customers w/ over $5M FRARR 105 Countries where Guidewire is run 44 9/10 9 of the Top 10 Global Insurers use Guidewire1 Marketplace Guidewire Extensions Partner Extensions Packaged IntegrationsBy Line of Business By Geography Guidewire Cloud Platform Applications PricingCenter GenAI Services MCP Access RAG Access LLM Access Task Management Prompt Management Security/Observability Training/Evaluation Platform Services Containerization Configuration Provisioning Security Connectivity Deployment Observability Application Services Product Integration Rules Workflow Data Digital InsuranceNow UnderwritingCenter HazardHub PolicyCenter Predict BillingCenter Industry Intel ClaimCenter Explore Cloud Infrastructure Guidewire is the P&C industry’s leading core platform * All data as of FY26 (1) Source: S&P Global Market Intelligence. Excludes China market and Lloyd’s of London. 6
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Our 25-year commitment to P&C has created a durable business $1,242 Note: Rolling 4 quarter recurring revenue used as proxy for ARR through Q3'17. Quarterly ARR uses FX rate at the start of each fiscal year. 2010 2011 2012 2013 2014 2015 2016 2017 20212018 2019 2020 2022 2023 2024 2025 2026 ARR (in $millions) 1,000 500 250 750 7
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ARR $1.242B1 +19% YoY Total Revenue $411M +15% YoY Subscription and Support Revenue $267M +32% YoY 65% of total revenue Subscription and Support Gross Margin 74% (GAAP) +6 pts YoY 76% (non-GAAP) +6 pts YoY Total Gross Margin 66% (GAAP) +1 pt YoY 68% (non-GAAP) flat YoY Operating Income (GAAP) $62M +111% YoY and 15% of revenue +7 pts YoY Operating Income (Non-GAAP) $111M +51% YoY and 27% of revenue +6 pts YoY Revenue Gross Margin Operating Income Q4’FY26 financial results reflect continued momentum 1. ARR is $1.237B when updated for FX rates at the end of the fiscal year. Note: ARR growth on a constant currency basis. 8
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Some notable Q4’FY26 Wins Strong deal activity for Guidewire Cloud Platform, including one or more of our cloud insurance suite modules or InsuranceNow. Notable wins included: Nationwide, a Fortune 100 company, signed a multi-year agreement to move its entire InsuranceSuite estate to Guidewire Cloud Platform, capping a long-standing partnership built on proving out the platform's maturity to support its growth ambitions. MAPFRE US expanded on Guidewire Cloud to support its commercial lines growth strategy and layered ProNavigator onto its broader core expansion. AF Group, a national leader in workers’ compensation and related specialty commercial lines, consolidated multiple core instances and many legacy applications onto the Guidewire Cloud platform. Strong adoption of new products, including PricingCenter and ProNavigator. Notable wins included: Nationwide became our first U.S. Tier-1 customer for PricingCenter, choosing it for their home and auto lines. Integration to PolicyCenter will provide greater price sophistication and improved speed to market for Nationwide. Definity, a leading Canadian P&C insurer, expanded its Guidewire Cloud commitment and adopted ProNavigator for embedded, insurance-domain-specific AI expertise. Hollard Australia selected ProNavigator as its enterprise knowledge layer for Claims to strengthen agent knowledge management, enhance the customer experience and support increasingly stringent regulatory and compliance obligations. 9
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Strong and durable revenue growth Note: Annual ARR Growth is based on in-year constant currency FX rates. FY25 Growth is based on $864M at the start of FY25 and $1,032M at the end of FY25, using FY25 constant currency FX rates. FY26 growth is based on $1,041M at the start of FY26 and $1,242M at the end of FY26, using FY26 constant currency FX rates. Quarterly year-over-year ARR growth is based on in-period as reported ARR. 19% 20% 32% 19% 33% 33% Subscription & Support RevenueARR (in $millions) (in $millions) 10
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Profitability increasing with scale, efficiency, and discipline Note: Please see Appendix for a reconciliation of Non-GAAP financial measures to the most comparable GAAP measures for periods shown above. (in $millions) 11
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Maintaining strategic flexibility and share repurchase discipline $606M FY26 purchases $214M Q4 purchases $32M Remaining Authorization Excess Cash PrioritiesCash Generation 26% FY26 Cash Flow from Operations Margin $390M FY26 Cash Flow from Operations Strong Balance Sheet $1.2B Q4 Cash & Investments $400M Minimum Cash Reserve To run the business and ensure customer confidence Potential M&A Targeted acquisitions focused on product expansion Share Repurchases Repurchased 4.1 million shares in FY26 Share Repurchase Activity Updated capital allocation framework 12
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Description Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2024 FY 2025 FY 2026 Revenue: Subscription and support $ 169,742 $ 177,838 $ 181,823 $ 201,893 $ 222,203 $ 237,209 $ 244,738 $ 266,735 $ 549,087 $ 731,296 $ 970,885 License 37,370 63,694 57,233 93,638 41,967 59,528 55,996 77,086 250,176 251,935 234,578 Services 55,789 47,948 54,452 61,039 68,469 62,358 71,807 67,266 181,234 219,228 269,900 Total revenue 262,901 289,480 293,508 356,570 332,639 359,095 372,541 411,088 980,497 1,202,459 1,475,363 Cost of revenue: Subscription and support 54,024 59,096 57,411 64,575 63,927 63,928 67,882 69,466 204,794 235,106 265,203 License 881 942 892 909 644 442 374 522 4,536 3,624 1,982 Services 49,604 50,290 52,507 59,275 58,546 63,205 67,639 71,420 187,806 211,676 260,810 Total cost of revenue 104,509 110,328 110,810 124,759 123,117 127,574 135,896 141,408 397,136 450,406 527,995 Gross profit: Subscription and support 115,718 118,742 124,412 137,318 158,276 173,281 176,856 197,269 344,293 496,190 705,682 License 36,489 62,752 56,341 92,729 41,323 59,086 55,622 76,564 245,640 248,311 232,596 Services 6,185 (2,342) 1,945 1,764 9,923 (847) 4,167 (4,154) (6,572) 7,552 9,090 Total gross profit 158,392 179,152 182,698 231,811 209,522 231,521 236,645 269,679 583,361 752,053 947,368 Operating expenses: Research and development 68,880 70,268 72,915 84,097 78,317 83,324 87,868 90,587 269,381 296,160 340,097 Sales and marketing 51,478 55,452 57,768 65,648 64,258 61,475 68,201 65,003 199,033 230,346 258,937 General and administrative 42,754 41,709 47,547 52,469 48,469 48,281 49,939 51,771 167,520 184,479 198,460 Total operating expenses 163,112 167,429 178,230 202,214 191,044 193,080 206,008 207,361 635,934 710,985 797,494 Income (loss) from operations (4,720) 11,723 4,468 29,597 18,478 38,441 30,637 62,318 (52,573) 41,068 149,874 Interest income 13,606 15,722 13,794 13,503 14,650 12,487 11,295 10,132 43,478 56,625 48,564 Interest expense (2,062) (4,183) (3,668) (3,298) (3,312) (3,334) (3,318) (3,360) (6,738) (13,211) (13,324) Other income (expense), net (4,055) (66,289) 34,074 1,183 (5,314) 26,958 (18,854) (23,788) (11,005) (35,087) (20,997) Income (loss) before provision for (benefit from) income taxes 2,769 (43,027) 48,668 40,985 24,502 74,552 19,760 45,303 (26,838) 49,395 164,117 Provision for (benefit from) income taxes (6,370) (5,750) 2,677 (10,966) (6,806) 14,442 3,289 13,908 (20,735) (20,409) 24,834 Net income (loss) $ 9,139 $ (37,277) $ 45,991 $ 51,951 $ 31,308 $ 60,110 $ 16,471 $ 31,395 $ (6,103) $ 69,804 $ 139,283 Earnings per share: Basic $ 0.11 $ (0.45) $ 0.55 $ 0.62 $ 0.37 $ 0.71 $ 0.20 $ 0.38 $ (0.07) $ 0.83 $ 1.65 Diluted $ 0.11 $ (0.45) $ 0.54 $ 0.60 $ 0.36 $ 0.70 $ 0.19 $ 0.38 $ (0.07) $ 0.81 $ 1.63 Shares used in computing net earnings per share: Basic 83,276,236 83,705,700 84,044,661 84,366,889 84,780,201 84,858,179 84,241,069 82,870,116 82,291,483 83,846,793 84,186,951 Diluted 85,960,868 83,705,700 85,880,643 86,267,658 86,451,737 86,116,567 85,065,999 83,620,224 82,291,483 85,911,653 85,405,177 These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website at https://ir.guidewire.com/financial-information/quarterly-results. Condensed Consolidated Statement of Operations - GAAP (unaudited, in thousands except share and per share data) 13
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Description Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2024 FY 2025 FY 2026 Subscription revenue $ 152,858 $ 161,659 $ 166,464 $ 186,455 $ 207,459 $ 222,724 $ 232,129 $ 253,480 $ 477,461 $ 667,436 $ 915,792 Support revenue 16,884 16,179 15,359 15,438 14,744 14,485 12,609 13,255 71,626 63,860 55,093 Subscription and support revenue $ 169,742 $ 177,838 $ 181,823 $ 201,893 $ 222,203 $ 237,209 $ 244,738 $ 266,735 $ 549,087 $ 731,296 $ 970,885 Annual recurring revenue (in millions) $ 874 $ 918 $ 960 $ 1,032 $ 1,063 $ 1,121 $ 1,147 $ 1,242 $ 864 $ 1,041 $ 1,237 Fully ramped annual recurring revenue (in millions) (1) $ 1,418 $ 1,578 $ 1,055 $ 1,296 $ 1,573 Remaining performance obligations (in billions) $ 2.0 $ 2.1 $ 2.5 $ 3.1 $ 3.2 $ 3.5 $ 3.6 $ 4.3 $ 2.0 $ 3.1 $ 4.3 Free cash flow: Net cash provided by (used in) operating activities $ (62,305) $85,991 $32,350 $244,831 $ (67,398) $112,046 $ 61,183 $ 283,886 $ 195,748 $ 300,867 $ 389,716 Purchases of property and equipment (843) (790) (703) (3,405) (4,878) (3,284) (1,772) (2,122) (6,362) (5,741) (12,056) Capitalized software development costs (4,233) (2,923) (3,816) (3,742) (5,088) (3,104) (5,747) (5,064) (12,165) (14,714) (19,003) Free cash flow $ (67,381) $ 82,278 $ 27,831 $ 237,684 $ (77,364) $ 105,658 $ 53,664 $ 276,700 $ 177,221 $ 280,412 $ 358,657 Annual recurring revenue ("ARR") for the quarterly periods in fiscal year 2025 are based on actual currency exchange rates at the end of fiscal year 2024, held constant throughout the year. ARR and and fully ramped annual recurring revenue ("FRARR") for the quarterly periods in fiscal year 2026 are based on actual currency exchange rates at the end of fiscal year 2025, held constant throughout the year. ARR and FRARR reflected in the FY 2024, FY 2025, and FY 2026 columns are based on the currency exchange rates at the end of fiscal years 2024, 2025 and 2026, respectively. (1) FRARR is a non-GAAP supplemental metric typically furnished alongside our annual results. From time to time, we may provide updates at an interim period at management's discretion. We do not intend to, nor are we obligated to, furnish or update this metric on a recurring basis in future interim periods. This information is being furnished, not filed, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into our Form 10-Q, Form 10-K, or any other formal SEC filing. Other than noted above, these schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website at https://ir.guidewire.com/financial-information/quarterly-results. Condensed Consolidated Statement of Operations - Key Metrics (unaudited, in thousands) 14
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Condensed Consolidated Statement of Operations - Non-GAAP Adjustments (unaudited, in thousands) Description Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2024 FY 2025 FY 2026 Amortization of intangibles $ 485 $ 485 $ 485 $ 800 $ 808 $ 1,057 $ 1,180 $ 1,187 $ 1,940 $ 2,255 $ 4,232 Stock-based compensation 3,140 3,773 3,598 3,442 3,450 3,596 3,391 3,377 13,425 13,953 13,814 Total adjustment to cost of revenue - subscription and support $ 3,625 $ 4,258 $ 4,083 $ 4,242 $ 4,258 $ 4,653 $ 4,571 $ 4,564 $ 15,365 $ 16,208 $ 18,046 Total adjustment to cost of revenue - license - Stock-based compensation $ 36 $ 36 $ 32 $ 32 $ — $ — $ — $ — $ 186 $ 136 $ — Total adjustment to cost of revenue - services - Stock-based compensation $ 4,802 $ 5,361 $ 5,055 $ 5,541 $ 5,700 $ 6,395 $ 6,108 $ 6,380 $ 19,013 $ 20,759 $ 24,583 Stock-based compensation $ 9,824 $ 10,469 $ 10,267 $ 11,200 $ 11,259 $ 12,957 $ 12,061 $ 12,784 $ 40,213 $ 41,760 $ 49,061 Acquisition consideration holdback — — — 116 116 118 110 92 143 116 437 Total adjustment to research and development $ 9,824 $ 10,469 $ 10,267 $ 11,316 $ 11,375 $ 13,075 $ 12,171 $ 12,876 $ 40,356 $ 41,876 $ 49,497 Stock-based compensation $ 9,688 $ 10,880 $ 10,832 $ 11,870 $ 11,822 $ 11,594 $ 11,598 $ 11,706 $ 34,590 $ 43,270 $ 46,720 Amortization of intangibles 882 793 749 765 647 692 584 546 3,528 3,189 2,469 Acquisition consideration holdback — — — 61 61 328 331 353 — 61 1,073 Total adjustment to sales and marketing $ 10,570 $ 11,673 $ 11,581 $ 12,696 $ 12,530 $ 12,614 $ 12,513 $ 12,605 $ 38,118 $ 46,520 $ 50,262 Total adjustment to general and administrative - Stock-based compensation $ 10,570 $ 10,429 $ 10,573 $ 10,106 $ 11,085 $ 12,216 $ 11,784 $ 12,537 $ 39,033 $ 41,678 $ 47,622 Total adjustment to interest expense - Amortization of debt issuance costs $ 545 $ 1,179 $ 1,058 $ 976 $ 980 $ 984 $ 984 $ 992 $ 1,732 $ 3,758 $ 3,939 Changes in fair value of strategic investments $ (53) $ 291 $ 103 $ 1,789 $ 60 $ (15) $ (599) $ 64 $ 1,957 $ 2,130 $ (489) (Gains) losses on sale of strategic investments — (3,671) — — — — (632) — (1,803) $ (3,671) $ (632) Retirement of debt 300 53,265 — — — — — — — $ 53,565 $ — Unrealized foreign exchange rate (gains) losses† $ 3,780 $ 16,429 $ (34,176) $ (2,776) $ 5,260 $ (26,914) $ 20,141 $ 23,975 † $ (16,743) $ 22,462 Total adjustment to other income (expense), net $ 4,027 $ 66,314 $ (34,073) $ (987) $ 5,320 $ (26,930) $ 18,910 $ 24,039 $ 154 $ 35,281 $ 21,340 Total adjustment to provision for (benefit from) income taxes - Non-GAAP tax impact $ (12,979) $ (15,194) $ (7,157) $ (25,572) $ (21,381) $ (4,051) $ (13,864) $ (22,244) $ (33,333) $ (60,902) $ (61,541) These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website at https://ir.guidewire.com/financial-information/quarterly-results. †During the third quarter of fiscal year 2026, we began excluding unrealized foreign currency exchange rate (gains) losses as a non-GAAP adjustment to other income (expense), net. Accordingly, we have recast previously reported amounts in our non-GAAP schedules for the quarterly and annual periods beginning in the first quarter of fiscal year 2025. 15
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Condensed Consolidated Statement of Operations - Non-GAAP Reconciliations (unaudited, in thousands except percentage) Description Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2024 FY 2025 FY 2026 Gross profit reconciliation: GAAP gross profit $ 158,392 $ 179,152 $ 182,698 $ 231,811 $ 209,522 $ 231,521 $ 236,645 $ 269,679 $ 583,361 $ 752,053 $ 947,368 Non-GAAP adjustments: Stock-based compensation 7,978 9,170 8,685 9,015 9,150 9,991 9,498 9,757 32,624 34,848 38,396 Amortization of intangibles 485 485 485 800 808 1,057 1,180 1,187 1,940 2,255 4,232 Non-GAAP gross profit $ 166,855 $ 188,807 $ 191,868 $ 241,626 $ 219,480 $ 242,569 $ 247,324 $ 280,623 $ 617,925 $ 789,156 $ 989,996 Gross profit reconciliation - subscription and support: GAAP gross profit - subscription and support $ 115,718 $ 118,742 $ 124,412 $ 137,318 $ 158,276 $ 173,281 $ 176,856 $ 197,269 $ 344,293 $ 496,190 $ 705,682 Non-GAAP adjustments: Stock-based compensation 3,140 3,773 3,598 3,442 3,450 3,596 3,391 3,377 13,425 13,953 13,814 Amortization of intangibles 485 485 485 800 808 1,057 1,180 1,187 1,940 2,255 4,232 Non-GAAP gross profit - subscription and support $ 119,343 $ 123,000 $ 128,495 $ 141,560 $ 162,534 $ 177,934 $ 181,427 $ 201,833 $ 359,658 $ 512,398 $ 723,728 Gross profit reconciliation - license: GAAP gross profit - license $ 36,489 $ 62,752 $ 56,341 $ 92,729 $ 41,323 $ 59,086 $ 55,622 $ 76,564 $ 245,640 $ 248,311 $ 232,596 Non-GAAP adjustments: Stock-based compensation 36 36 32 32 — — — — 186 136 — Non-GAAP gross profit - license $ 36,525 $ 62,788 $ 56,373 $ 92,761 $ 41,323 $ 59,086 $ 55,622 $ 76,564 $ 245,826 $ 248,447 $ 232,596 Gross profit reconciliation - services: GAAP gross profit - services $ 6,185 $ (2,342) $ 1,945 $ 1,764 $ 9,923 $ (847) $ 4,167 $ (4,154) $ (6,572) $ 7,552 $ 9,090 Non-GAAP adjustments: Stock-based compensation 4,802 5,361 5,055 5,541 5,700 6,395 6,108 6,380 19,013 20,759 24,583 Non-GAAP gross profit - services $ 10,987 $ 3,019 $ 7,000 $ 7,305 $ 15,623 $ 5,548 $ 10,275 $ 2,226 $ 12,441 $ 28,311 $ 33,672 These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website at https://ir.guidewire.com/financial-information/quarterly-results. 16
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Condensed Consolidated Statement of Operations - Non-GAAP Reconciliations (unaudited) Description Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2024 FY 2025 FY 2026 Gross margin: Subscription and support: GAAP gross margin 68.2 % 66.8 % 68.4 % 68.0 % 71.2 % 73.1 % 72.3 % 74.0 % 62.7 % 67.9 % 72.7 % Stock-based compensation 1.8 % 2.1 % 1.9 % 1.8 % 1.6 % 1.5 % 1.3 % 1.3 % 2.4 % 1.9 % 1.4 % Amortization of intangibles 0.3 % 0.3 % 0.3 % 0.4 % 0.4 % 0.5 % 0.5 % 0.4 % 0.4 % 0.3 % 0.4 % Non-GAAP gross margin 70.3 % 69.2 % 70.6 % 70.2 % 73.2 % 75.0 % 74.1 % 75.7 % 65.5 % 70.1 % 74.5 % License: GAAP gross margin 97.6 % 98.5 % 98.4 % 99.0 % 98.5 % 99.3 % 99.3 % 99.3 % 98.2 % 98.6 % 99.2 % Stock-based compensation 0.1 % 0.1 % 0.1 % 0.1 % — % — % — % — % 0.1 % 0.1 % — % Non-GAAP gross margin 97.7 % 98.6 % 98.5 % 99.1 % 98.5 % 99.3 % 99.3 % 99.3 % 98.3 % 98.7 % 99.2 % Services: GAAP gross margin 11.1 % (4.9) % 3.6 % 2.9 % 14.5 % (1.4) % 5.8 % (6.2) % (3.6) % 3.4 % 3.4 % Stock-based compensation 8.6 % 11.2 % 9.3 % 9.1 % 8.3 % 10.3 % 8.5 % 9.5 % 10.5 % 9.5 % 9.1 % Non-GAAP gross margin 19.7 % 6.3 % 12.9 % 12.0 % 22.8 % 8.9 % 14.3 % 3.3 % 6.9 % 12.9 % 12.5 % Overall: GAAP gross margin 60.2 % 61.9 % 62.3 % 65.0 % 63.0 % 64.5 % 63.6 % 65.6 % 59.5 % 62.5 % 64.2 % Amortization of intangibles 0.2 % 0.2 % 0.2 % 0.2 % 0.2 % 0.3 % 0.3 % 0.3 % 0.2 % 0.2 % 0.3 % Stock-based compensation 3.1 % 3.1 % 3.0 % 2.5 % 2.8 % 2.8 % 2.5 % 2.4 % 3.3 % 2.9 % 2.6 % Non-GAAP gross margin 63.5 % 65.2 % 65.5 % 67.7 % 66.0 % 67.6 % 66.4 % 68.3 % 63.0 % 65.6 % 67.1 % These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10- Q and 10-K may be found on our website at https://ir.guidewire.com/financial-information/quarterly-results. 17
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Condensed Consolidated Statement of Operations - Non-GAAP Reconciliations (unaudited, in thousands) Description Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2024 FY 2025 FY 2026 Income (loss) from operations reconciliation: GAAP income (loss) from operations $ (4,720) $ 11,723 $ 4,468 $ 29,597 $ 18,478 $ 38,441 $ 30,637 $ 62,318 $ (52,573) $ 41,068 $ 149,874 Non-GAAP adjustments: Stock-based compensation 38,060 40,948 40,357 42,191 43,316 46,758 44,941 46,784 146,460 161,556 181,799 Amortization of intangibles 1,367 1,278 1,234 1,565 1,455 1,748 1,765 1,733 5,468 5,444 6,701 Acquisition consideration holdback — — — 177 177 447 440 445 143 177 1,510 Non-GAAP income (loss) from operations $ 34,707 $ 53,949 $ 46,059 $ 73,530 $ 63,426 $ 87,394 $ 77,784 $ 111,280 $ 99,498 $ 208,245 $ 339,884 Net income (loss) reconciliation: GAAP net income (loss) $ 9,139 $ (37,277) $ 45,991 $ 51,951 $ 31,308 $ 60,110 $ 16,471 $ 31,395 $ (6,103) $ 69,804 $ 139,283 Non-GAAP adjustments: Stock-based compensation 38,060 40,948 40,357 42,191 43,316 46,758 44,941 46,784 146,460 161,556 181,799 Amortization of intangibles 1,367 1,278 1,234 1,565 1,455 1,748 1,765 1,733 5,468 5,444 6,701 Acquisition consideration holdback — — — 177 177 447 440 445 143 177 1,510 Amortization of debt issuance costs 545 1,179 1,058 976 980 984 984 992 1,732 3,758 3,939 Changes in fair value of strategic investments (53) 291 103 1,789 60 (15) (599) 64 1,957 2,130 (489) (Gains) losses on sale of strategic investments — (3,671) — — — — (632) — (1,803) (3,671) (632) Retirement of debt 300 53,265 — — — — — — — 53,565 — Unrealized foreign exchange rate (gains) losses† 3,780 16,429 (34,176) (2,776) 5,260 (26,914) 20,141 23,975 † (16,743) 22,462 Non-GAAP tax impact (12,979) (15,194) (7,157) (25,572) (21,381) (4,051) (13,864) (22,244) (33,333) (60,902) (61,541) Non-GAAP net income (loss) $ 40,159 $ 57,249 $ 47,409 $ 70,301 $ 61,174 $ 79,066 $ 69,648 $ 83,143 $ 114,521 $ 215,118 $ 293,031 These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website at https://ir.guidewire.com/financial-information/quarterly-results. †During the third quarter of fiscal year 2026, we began excluding unrealized foreign currency exchange rate (gains) losses as a non-GAAP adjustment to other income (expense), net. Accordingly, we have recast previously reported amounts in our non-GAAP schedules for the quarterly and annual periods beginning in the first quarter of fiscal year 2025. 18
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Description Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2024 FY 2025 FY 2026 Reconciliation of GAAP to Non-GAAP earnings per share: GAAP diluted earnings per share $ 0.11 $ (0.45) $ 0.54 $ 0.60 $ 0.36 $ 0.70 $ 0.19 $ 0.38 $ (0.07) $ 0.81 $ 1.63 Stock-based compensation 0.44 0.49 0.47 0.49 0.51 0.54 0.53 0.56 1.78 1.89 2.13 Amortization of intangibles 0.02 0.02 0.01 0.02 0.02 0.02 0.02 0.02 0.07 0.06 0.08 Acquisition consideration holdback — — — — — — — 0.01 (0.01) — 0.01 Amortization of debt issuance costs 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.02 0.04 0.05 Changes in fair value of strategic investments — — — 0.02 — — (0.01) — 0.02 0.02 (0.01) (Gains) losses on sale of strategic investments — (0.04) — — — — (0.01) — (0.02) (0.04) (0.01) Retirement of debt — 0.64 — — — — — — — 0.63 — Unrealized foreign exchange rate (gains) losses† 0.04 0.20 (0.40) (0.03) 0.06 (0.31) 0.24 0.29 † (0.19) 0.26 Non-GAAP tax impact (0.15) (0.18) (0.08) (0.30) (0.25) (0.05) (0.16) (0.27) (0.41) (0.71) (0.72) Interest expense on convertible debt — — — — — — — — 0.05 — — Non-GAAP dilutive shares excluded from GAAP EPS calculation — (0.03) — — — — — — (0.08) — — Non-GAAP diluted earnings per share $ 0.47 $ 0.66 $ 0.55 $ 0.81 $ 0.71 $ 0.92 $ 0.82 $ 0.99 $ 1.35 $ 2.51 $ 3.43 Diluted weighted average shares outstanding 85,960,868 83,705,700 85,880,643 86,267,658 86,451,737 86,116,567 85,065,999 83,620,224 82,291,483 85,911,653 85,405,177 Non-GAAP dilutive shares excluded from GAAP EPS calculation — 2,510,517 — — — — — — 5,072,080 — — Pro forma weighted average shares – diluted 85,960,868 86,216,217 85,880,643 86,267,658 86,451,737 86,116,567 85,065,999 83,620,224 87,363,563 85,911,653 85,405,177 These schedules have been derived from, and should be read in conjunction with, our financial statements in our reports on Forms 10-Q and 10-K which are filed with the SEC. Our Forms 10-Q and 10-K may be found on our website at https://ir.guidewire.com/financial-information/quarterly-results. †During the third quarter of fiscal year 2026, we began excluding unrealized foreign currency exchange rate (gains) losses as a non-GAAP adjustment to other income (expense), net. Accordingly, we have recast previously reported amounts in our non-GAAP schedules for the quarterly and annual periods beginning in the first quarter of fiscal year 2025. Condensed Consolidated Statement of Operations - Non-GAAP Reconciliations (unaudited) 19