GWREGuidewire Software, Inc.
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (3.1×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GWRE?
Guidewire Software, Inc. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 1.6 points above what the capital costs: growth creates value
- Operating margin
- 10%
Operating margin · Software - Application median 6.9% · 12 months to Q4 2026
- Cash conversion
- 3.06×
Cash conversion · 9.27× a year ago · operating cash flow covers the operating profit after tax
- R&D as % of revenue
- 23%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | −14% |
| FY2022 | −25% |
| FY2023 | −17% |
| FY2024 | −5.4% |
| FY2025 | 3.4% |
| FY2026 | 10% |
Details›
- Gross margin12 months to Q4 2026
- 64%
- Operating margin12 months to Q4 2026
- 10%
- Net margin12 months to Q4 2026
- 9.4%
- Free cash flow margin
- 26%
- R&D as % of revenue
- 23%
- Revenue, trailing twelve months
- $1.48B
- Free cash flow, trailing twelve months
- $378M
- Net income, trailing twelve months
- $139M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from GWRE and who it buys from, as the companies report it.
- Ten largest customers21%
Combined share of revenue · FY2026 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; GWRE’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.
Software, Application
Ranks #51 of 92 by RyuScore