UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 10-K

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(Mark one)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended July 31, ~~2024~~2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission file number: 001-35394

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Guidewire Software, Inc.

(Exact name of registrant as specified in its charter)

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Delaware						36-4468504
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

970 Park Pl., Suite 200, San Mateo, California, 94403

(Address of principal executive offices, including zip code)

(650) 357-9100

(Registrant’s telephone number, including area code)

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Securities registered pursuant to Section 12(b) of the Act:

(Title of each class)

(Trading Symbol(s))

(Name of each exchange on which registered)

Common Stock, $0.0001 par value

GWRE

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes

☐ No ☒

The aggregate market value of common stock held by non-affiliates of the registrant, computed by reference to the closing price at which the common stock was sold on January 31, 2024, the last business day of the registrant’s most recently completed second fiscal quarter, as reported on the New York Stock Exchange, was approximately $6.6 billion. Shares of common stock held by each executive officer, director and holder of 5% or more of the outstanding common stock have been 1

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The aggregate market value of common stock held by non-affiliates of the registrant, computed by reference to the closing price at which the common stock was sold on January 31, 2025, the last business day of the registrant’s most recently completed second fiscal quarter, as reported on the New York Stock Exchange, was approximately $13.4 billion. Shares of common stock held by each executive officer, director and holder of 5% or more of the outstanding common stock have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate status does not reflect a determination that such persons are affiliates of the registrant for any other purpose.

On August 3029, ~~2024~~2025, the registrant had 8384,~~025~~530,~~888~~578 shares of common stock issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive Proxy Statement relating to its ~~2024~~2025 Annual Meeting of Stockholders are incorporated by reference into Part III of this report where indicated. Such Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.

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Guidewire Software, Inc.

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Part I
Item 1.	Business	23
Item 1A.	Risk Factors	13
Item 1B.	Unresolved Staff Comments	4041
Item 1C.	Cybersecurity	4042
Item 2.	Properties	4143
Item 3.	Legal Proceedings	4143
Item 4.	Mine Safety Disclosures	4143
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	4245
Item 6.	[Reserved]	4447
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4447
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	6164
Item 8.	Financial Statements and Supplementary Data	6366
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosures	~~102~~105
Item 9A.	Controls and Procedures	~~102~~105
Item 9B.	Other Information	~~102~~106
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	~~103~~106
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	~~104~~108
Item 11.	Executive Compensation	~~104~~108
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	~~104~~108
Item 13.	Certain Relationships and Related Transactions, and Director Independence	~~104~~108
Item 14.	Principal Accountant Fees and Services	~~104~~108
Part IV
Item 15.	Exhibits and Financial Statement Schedules	~~105~~110
Item 16.	Form 10-K Summary	113

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FORWARD-LOOKING STATEMENTS

The sections titled “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” as well as other parts of this Annual Report on Form 10-K and certain information incorporated herein by reference contain forward-looking statements within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to risks and uncertainties. The forward-looking statements may include statements concerning, among other things, our business strategy (including anticipated trends and developments in, and management plans for, our business and the markets in which we operate), financial results, results of operations, revenue, gross margins, operating expenses, services, products, projected costs and capital expenditures, research and development programs, cloud operations, cybersecurity effectiveness, sales and marketing initiatives, and competition. In some cases, you can identify these statements by forward-looking words, such as “will,” “may,” “might,” “should,” “could,” “estimate,” “expect,” “suggest,” “believe,” “anticipate,” “intend,” “plan” and “continue,” the negative or plural of these words and other comparable terminology. Actual events or results may differ materially from those expressed or implied by these statements due to various factors, including, but not limited to, the matters discussed below, in the section titled “Risk Factors,” and elsewhere in this Annual Report on Form 10-K. Many of the forward-looking statements are located in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The forward-looking statements contained in this Annual Report on Form 10-K are based on information available to us as of the filing date of this Annual Report on Form 10-K and our current expectations about future events, which are inherently subject to change and involve risks and uncertainties. You should not place undue reliance on these forward-looking statements.

We do not undertake any obligation to update any forward-looking statements in this Annual Report on Form 10-K or in any of our other communications, except as required by law. All such forward-looking statements should be read as of the time the statements were made and with the recognition that these forward-looking statements may not be complete or accurate at a later date.

SUMMARY OF MATERIAL RISKS ASSOCIATED WITH OUR BUSINESS

The principal risks and uncertainties affecting our business include (but are not limited to) the following:

•our quarterly and annual results may fluctuate significantly due to economic conditions, customer behavior, contract changes, operational costs, seasonality, and other uncertainties, which could impact our stock price;

•the market for cloud services, including the migration of our existing term license customers to cloud-based offerings on a subscription basis, and the long-term pricing commitments in our customer contracts that are based on available information and estimates about our future costs that may change;

•our reliance on orders from a relatively small number of customers in the property and casualty (“P&C”) insurance industry for a substantial portion of our revenue and Annual Recurring Revenue (“ARR”) and the related substantial negotiating leverage of these customers, as well as our dependence on customer renewals and expansions of their contracts for our products, which may not occur;

•lengthy and variable sales and implementation cycles, with factors beyond our control including competitive pressures, potentially causing expenditure of significant time and resources prior to revenue generation;

•competitive attributes of our applications, including the need to continuously develop and enhance our products to satisfy customer demands, maintain market acceptance, respond to competitive pressures, and meet local requirements of international markets;

•failure to grow our business and manage our expanding operations, including internationally, effectively;

•exposure to risks in relation to data security breaches of our cloud-based products, unauthorized access to our customers’ or employees’ data, or breaches of third-party technologies and systems we rely on and the related impact on our ability to effectively operate our cloud environment for our customers;

•issues in the development and use of artificial intelligence (“AI”), as well as the use of AI by our workforce, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations;

•retaining existing and hiring new personnel, including managing personnel in a hybrid work environment;

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•errors or failures in our products or services, as well as service interruptions or failure of the third-party service providers we rely on, could impair the availability of our products, harm our reputation, lead to customer loss, increase liability claims, or harm our future financial results;

•dependence on the quality and effectiveness of our professional services, technical support, and system integrator (“SI”) partners, and successful development of our global direct sales force and the expansion of our relationships with SI partners;

•factors that could affect our gross and operating margins, including revenue mix and costs related to operating, securing, and enhancing our subscription services;

•pursuing acquisitions or partnerships may lead to management distractions, integration challenges, increased costs, and stockholder dilution, with risks including unforeseen difficulties, capital investment needs, and competitive pressures;

•exposure to market risks, including geographical and global events, supply chain disruptions, inflation, political and regional conflicts, interest rates, foreign currency exchange rates, and financial markets’ volatility and their impact on our stock price and its volatility and our customers, partners, vendors, or our business operations; and

•required compliance with current and evolving local data privacy and cybersecurity laws and regulations in all jurisdictions where we have customers, and our ability to maintain the security of our customers’ data and our cloud-based products, appropriately limit the use of information, and manage related costs and liabilities incurred.

The summary risk factors described above should be read together with the text of the Risk Factors included in Item 1A of Part I of this Annual Report on Form 10-K and the other information set forth in this Annual Report on Form 10-K, including our consolidated financial statements and related notes thereto, as well as in other documents that we file with the U.S. Securities and Exchange Commission (the “SEC”). Additional risks and uncertainties, beyond those summarized above or discussed elsewhere in this Annual Report on Form 10-K may apply to our business, activities, or operations as currently conducted or as we may conduct them in the future or in the markets in which we operate or may in the future operate.

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Unless the context requires otherwise, we are referring to Guidewire Software, Inc. together with its subsidiaries when we use the terms “Guidewire,” the “Company,” “we,” “our,” or “us.” When using the term “products,” we are generally referring to both our subscription services and term license software.

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Item 1.Business

Overview and Purpose

Guidewire is the platform that property and casualty (“P&C”) insurers ~~trust~~rely on to engage with customers, innovate, and ~~grow~~operate more efficiently. ~~Our~~Founded ~~core~~in ~~systems leverage data and analytics~~2001, ~~digital,~~we ~~and~~serve ~~AI.~~insurers Asof aall ~~partner to our customers~~sizes, weranging ~~continually~~from ~~evolve~~global carriers to ~~enable~~regional ~~their~~and ~~success~~local ~~and~~providers, ~~assist~~helping them innavigate ~~navigating~~ a rapidly changing insurance market. ~~We were founded in 2001.~~

Our ~~core~~platform ~~products~~combines ~~are~~core ~~InsuranceSuite Cloud, InsuranceNow, and InsuranceSuite for self-managed installations. These products are transactional~~ systems of record ~~that~~with ~~support the entire insurance lifecycle~~digital, ~~including insurance product definition~~analytics, ~~distribution, underwriting, policyholder services,~~ and ~~claims~~artificial ~~management.~~intelligence We(“AI”) ~~also sell digital engagement and analytics products~~capabilities. Our ~~digital~~foundational ~~engagement~~core products ~~enable digital sales~~, ~~omnichannel~~InsuranceSuite ~~service,~~ and ~~enhanced~~InsuranceNow, ~~claims~~are ~~experiences~~delivered ~~for~~primarily ~~policyholders,~~as ~~agents,~~a ~~vendor~~cloud-based ~~partners,~~subscription ~~and~~service ~~field~~leveraging ~~personnel.~~our ~~Our~~proprietary ~~analytics~~cloud ~~offerings~~platform ~~enable~~which ~~insurers~~we refer to ~~manage~~as ~~data~~Guidewire ~~more~~Cloud ~~effectively,~~Platform ~~gain~~(“GWCP”). ~~insights into their business~~Historically, ~~drive~~InsuranceSuite ~~operational~~has ~~efficiencies,~~also ~~and~~been ~~underwrite~~available ~~new~~for ~~and~~self-managed ~~evolving risks~~installations. ToThese ~~support~~products ~~P&C~~serve ~~insurers~~as ~~globally,~~transactional wesystems ~~have~~of ~~localized~~record, ~~and~~fully ~~will~~supporting ~~continue~~insurance ~~to localize~~operations, ~~our~~including ~~suite~~product ofdefinition, ~~products~~policy ~~for use in a variety of international regulatory~~administration, ~~language,~~claims management and ~~currency environments~~billing.

~~Our~~To ~~customers~~support ~~range~~our ~~from~~core ~~some~~products, ofwe ~~the~~provide ~~largest~~digital ~~global~~engagement ~~insurance~~offerings ~~companies~~that orenable ~~their~~seamless ~~subsidiaries~~sales, toomnichannel ~~predominantly~~service, ~~national~~and orenhanced ~~local~~claims ~~insurers~~experiences for policyholders, agents, vendors, and field personnel and analytics products that ~~serve~~allow ~~specific~~insurers ~~states~~to manage and~~/or~~ ~~regions~~use data more effectively, gain business insights, improve operational efficiency, and underwrite emerging risks. ~~Our~~To ~~customer~~support ~~engagement~~insurers isworldwide, ~~led~~we bylocalize our ~~direct~~products ~~sales~~to ~~team~~address ~~and~~diverse ~~supported~~regulatory, bylanguage, ~~our~~and SIcurrency ~~partners~~requirements. WeAdditionally, ~~maintain~~we ~~and~~provide ~~continue~~Guidewire Marketplace to ~~grow~~empower ~~our~~customers ~~sales~~pursuing ~~and~~innovation ~~marketing~~initiatives ~~efforts~~by ~~globally,~~offering a vetted collection of insurtech applications and ~~maintain~~to ~~regional~~help ~~sales~~them ~~centers~~differentiate ~~throughout~~their businesses by allowing them to leverage capabilities from the ~~world.~~Guidewire ecosystem.

~~Because~~We ~~our~~reach ~~platform~~customers isdirectly ~~critical~~through to our ~~new~~global ~~and~~sales ~~existing~~team ~~customers’~~and ~~businesses,~~in ~~their~~partnership ~~decision~~with third-~~making~~party ~~and~~global ~~product~~system ~~evaluation~~integrators ~~process~~(“SIs”). isBecause ~~thorough,~~our ~~which~~platform ~~often~~is ~~results~~central into aninsurers’ ~~extended~~operations, ~~sales~~customer ~~cycle. These~~ evaluation ~~periods~~cycles ~~can~~are ~~extend~~often ~~further~~extensive, ifparticularly awhen ~~customer purchases~~ multiple products are involved or iswhen ~~considering~~insurers aare ~~move~~moving to aGWCP ~~cloud-based subscription~~ for the first time. Sales toprocesses ~~new~~typically ~~customers~~include ~~also~~detailed ~~involve extensive customer~~ due diligence and customer reference checks. ~~The success of our sales efforts relies on continued improvements and enhancements to our current products, the introduction of new products, efficient operation of our~~

~~Table~~In addition to migration and expansion activity on GWCP, our growth depends on continuously enhancing existing products, introducing new capabilities, ensuring efficient cloud operations, and expanding local content. We sell our products primarily through subscription services for our platform and cloud-delivered products. We generally price our subscription services for core products based on the amount of ~~Contents~~Direct Written Premium (“DWP”) managed on our platform, with certain cloud-delivered products priced based on usage or other metrics. Initial subscription agreements are generally five years in duration, with annual renewals thereafter. In some instances, we have customers that sign contracts with an initial term of seven years or longer. Subscription revenue is recognized ratably over the contract term. We also offer term licenses, primarily for existing on-premise customers, as well as support and professional services. Support is typically priced as a percentage of license fees and recognized ratably, while most professional services are billed monthly on a time-and-materials basis.

cloud infrastructure, continued development of relevant local content and automated tools for updating content, content in the Guidewire Marketplace to improve efficiencies, accelerate integration, and provide access to innovation, and successful implementations and migrations.

We sell our suite of products through subscription services for our platform and cloud-delivered products and term licenses for our self-managed products. We generally price our products based on the amount of Direct Written Premium (“DWP”) that will be managed by our products. Our subscription, term license, and support fees are typically invoiced annually in advance. Subscription services are generally sold with an initial term of between three and five years with optional annual renewals commencing after the initial term. Subscription revenue is recognized on a ratable basis over the committed term, once all revenue recognition criteria are met including providing access to the service. Term licenses are primarily sold to existing on-premise customers and are typically an initial commitment with optional annual renewals thereafter. We may enter into term license arrangements with our customers that have an initial term of more than one year or may renew license arrangements for longer than one year. Term license revenue is typically recognized when software is made available to the customer, provided that all other revenue recognition criteria have been met. Our support revenue is generally recognized ratably over the committed support term of the licensed software. Our support fees are typically priced as a fixed percentage of the associated license fees. We also offer professional services, both directly and through SI partners, to help our customers deploy, migrate, and utilize our platform and suite of products. A majority of our services revenue is billed monthly on a time and materials basis.

Industry Background

The P&C insurance industry is large, fragmented, highly regulated, and complex. It is also highly competitive, with insurers competing primarily on product differentiation, pricing options, customer service, marketing and advertising, affiliate programs, and channel strategies. In some instances, P&C insurers rely on legacy systems that may impact their ability to respond to business and market requirements.

To better respond to market demands, P&C insurers modernize their transactional core systems to manage key functional areas of P&C insurance, including product definition, underwriting and policy administration, claims management, and billing. Product definition specifies the insurance coverage, pricing, and financial and legal terms of insurance policies. Underwriting and policy administration includes collecting information from potential policyholders, determining appropriate coverages and terms, pricing policies, issuing policies, and updating and maintaining policies over their lifetimes. Claims management includes loss intake, investigation and evaluation of incidents, settlement negotiation, vendor management, litigation management, and payment processing. Billing includes policyholder invoicing, payment collection, and agent commission calculation. We believe insurers that adopt modern, cloud-based core systems can enhance customer experience, operate more efficiently, and introduce innovative products more rapidly.

We believe the P&C insurance industry is ~~experiencing~~rapidly ~~accelerating~~evolving ~~change~~ in how insurers engage with, sell to, and manage relationships with, consumers and businesses. Today, P&C insurers are striving to respond to significant changes in their competitive marketplace and the ~~character~~characteristics of the risks they underwrite. The most significant changes include:

•an industry ~~rapidly~~ going through rapid change that requires agility and efficiency from its core systems;

~~•an increase in catastrophes and natural disasters impacting the P&C insurance industry that requires agility and efficiency from its core systems;~~3

•aTable ~~rise~~of ~~in customer expectations for digital, mobile, and omnichannel interaction rather than the traditional agent model;~~Contents

•aan ~~need~~increase ~~for~~in ~~100%~~catastrophes ~~digital~~and ~~engagement~~natural ~~capabilities~~disasters impacting the P&C insurance industry requiring agility and innovation from its core systems;

•a rise in customer expectations for digital, mobile, and omnichannel interaction to augment the traditional agent model;

•a growth in demand for personalized services and products;

•an increase in technology and market-driven changes in vehicular risk, including usage and driving ~~habit~~behavior based insurance;

•an increase in consolidation of providers of insurance products and associated rationalization of markets served given recent claims ratio trends and developments;

•demand for coverage of emerging risks such as terrorism, cybersecurity, pandemic, and reputational risk;

•agrowing ~~wealth of~~ data ~~and~~volumes ~~desire~~which torequire ~~harness~~modern ~~data~~tools to ~~improve~~build analytics and ~~grow~~gain ~~business~~actionable insights;

•advances in the use of data and AI-based analytics to better market to and engage with customers, price policies, and manage claims;

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•development of opportunities to compete or partner with non-traditional players that offer disruptive technology-based value propositions;

•established industry leaders are facing increased competition from new entrants in the market, including insurtech companies; ~~and~~

•~~the~~generational ~~introduction~~turnover ~~and~~in ~~leveraging~~the ofunderwriting ~~new~~and ~~technologies~~claims workforce, ~~such~~ as ~~drones,~~the ~~generative~~baby ~~AI,~~boomer ~~large~~generation ~~language~~retires ~~models,~~and ~~the~~insurers ~~“Internet~~must ~~of Things~~hire,” ~~chatbots~~train, and ~~telematics.~~retain talent at scale; and

~~Many of these trends have increased in importance following~~ •the ~~COVID-19~~introduction ~~pandemic~~ and ~~the~~leveraging ~~resulting~~of ~~change~~new totechnologies, asuch ~~more~~as ~~hybrid~~generative ~~world.~~AI, Inlarge ~~response~~language ~~to these trends~~models, ~~changes,~~autonomous ~~challenges~~driving, and ~~opportunities, we believe that P&C insurers need a core system that can increase agility and enhance digital engagement and analytics offerings~~telematics.

In response to these trends, changes, challenges, and opportunities, we believe that P&C insurers need a modern core platform that can increase agility and enhance digital engagement and analytics offerings.

While each insurer may have different goals and priorities when pursuing new technology investments, there are several major themes that we believe guide these investments:

•~~Digital Engagement Models~~Agility. WeInsurers ~~believe~~face ~~that~~rising ~~insurers~~competitive ~~will~~and ~~need~~market topressures, ~~provide~~including asocial ~~more~~inflation ~~intuitive,~~that ~~digital~~is ~~user~~contributing ~~experience~~ to ~~reduce~~higher ~~the~~claims ~~risk~~severity ofacross ~~customer~~lines ~~dissatisfaction~~of ~~and~~business, ~~loss.~~that ~~Investment~~demand infaster ~~digital~~product ~~user~~definition, ~~experience~~risk ~~will~~selection ~~allow insurers to deepen their engagement with customers~~ and ~~transition~~pricing, ~~from passive~~ and ~~transactional~~market ~~customer~~entry ~~interactions~~or ~~to active and advisory relationships~~exit. ~~This~~These ~~transition~~pressures ~~will~~are ~~require~~heightened ~~investments~~by inclimate-driven ~~software~~risk ~~services~~events ~~and~~such ~~products~~as ~~that~~wildfires ~~are designed to model user journeys~~ and ~~enable more frequent~~floods, ~~informed,~~growing ~~and~~competition ~~dynamic~~from ~~interactions~~digital-first ~~between~~ insurers, and ~~their~~broader ~~customers.~~macroeconomic Wechallenges ~~believe~~including ~~these~~inflation, ~~efforts~~supply ~~can~~chain ~~improve~~volatility, ~~financial performance for insurers through increased lead conversions~~ and ~~lower~~changes ~~customer~~in ~~churn~~trade policies.

•~~Cloud-Delivered~~Digital ~~Solutions~~Engagement Models. WePolicyholders ~~believe~~and ~~that~~agents ~~increased~~increasingly ~~recognition~~expect ofseamless, ~~the~~digital-first ~~compelling~~experiences. ~~economic~~Insurers ~~benefits~~are ofinvesting ~~deploying~~in ~~software~~modern ~~solutions~~engagement ontools ~~public~~to ~~infrastructure~~reduce ~~combined~~customer ~~with~~dissatisfaction ~~increased~~and ~~confidence~~improve inretention ~~the~~while ~~security~~transitioning ~~and~~from ~~reliability~~transactional ofinteractions ~~such~~to ~~platforms will cause~~ more ~~insurers~~advisory toand ~~consider~~personalized ~~cloud-deployed solutions~~relationships. ~~Insurers~~Examples ~~benefit~~include ~~from~~embedded aninsurance ~~optimized~~offerings, ~~division~~omnichannel ofclaims ~~labor~~service, and ~~risk~~personalized ~~and~~product ~~allowing~~recommendations. ~~third~~These ~~parties~~investments tocan ~~manage~~drive ~~their~~higher ~~infrastructure~~lead asconversion ~~they~~and ~~focus~~lower ~~on competitively differentiating activities~~churn.

•~~Data Driven Decision~~Cloud-~~Making~~Delivered Solutions. ~~Insurers~~Adoption ~~are~~of ~~seeking~~cloud toplatforms ~~explore,~~is ~~visualize,~~accelerating ~~and~~as ~~analyze~~insurers ~~proprietary~~recognize ~~and~~the ~~third-party~~cost ~~data~~efficiencies, toscalability, ~~optimize~~and ~~decision-making~~security ~~across~~benefits ~~the~~of ~~insurance~~public ~~lifecycle~~cloud infrastructure. We believe ~~that~~cloud ~~such~~deployment ~~predictive~~also ~~analytical~~enables ~~solutions~~faster ~~are~~innovation ~~most~~cycles, ~~effective~~improved ~~when~~resilience ~~they~~during ~~provide~~catastrophe ~~predictive~~events, ~~scores~~ and ~~other~~easier ~~analytical~~compliance ~~insights~~with toevolving ~~insurers’~~regulatory ~~employees~~requirements. asBy ~~they~~shifting ~~perform~~infrastructure ~~their underwriting and claims~~ management ~~activities. Insurers may also apply data and machine learning or AI~~ to ~~automate~~third ~~certain tasks whenever possible~~parties, ~~thereby~~insurers ~~enabling~~can ~~efficiencies,~~focus ~~such~~more asresources ~~straight-through processing, that lessen the burden~~ on ~~subject~~differentiating ~~matter~~products ~~experts.~~and services.

•Data Driven Decision-Making. Insurers are increasingly leveraging proprietary and third-party data sources, ranging from telematics and internet-connected devices to catastrophe and climate models, to inform decisions across underwriting, claims, and pricing. Predictive analytics and AI technologies can help underwriters and claims professionals improve accuracy and efficiency, while automation enables straight-through processing where possible. At the same time, insurers must balance these gains with transparency and compliance requirements around the use of analytics and AI technologies. Insurers also face costs from fraud in underwriting and claims and are using analytics and AI technologies to improve detection and reduce related expenses.

•Innovation. Insurers are under pressure to innovate across their product lifecycle in order to grow their business and improve service quality. Examples of focus areas include creating services and products to target under-insured risks such as cyber, supply chain disruption, and reputational risk and partnering with insurtech providers to streamline operations and improve service to policyholders and agents.

•Legacy System Modernization. A significant portion of the market continues to rely on legacy systems. We believe new claims, policy management, and billing systems will continue to be adopted as insurers that rely on legacy systems seek to gain operating efficiencies, expand into new markets and lines of business, and introduce new digital and data offerings. 4

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•Legacy System Modernization. A significant portion of the market continues to rely on legacy systems. We believe modern policy administration, claims management, and billing systems will continue to be adopted as insurers that rely on legacy systems seek to gain operating efficiencies, expand into new markets and lines of business, and introduce new digital and data offerings.

Products

The Guidewire ecosystem is designed so that insurers can increase revenue, reduce operational costs and losses, improve pricing, and engage with a customer base that increasingly demands convenience and automated forms of self-service and communication. We are investing in research and development to accelerate improvements in our platform and suite of products to better serve our customers.

Core Operational Products

We offer the following ~~core~~suite of products: Guidewire InsuranceSuite ~~Cloud, Guidewire InsuranceNow,~~ and Guidewire ~~InsuranceSuite for Self-Managed~~InsuranceNow.

Guidewire InsuranceSuite ~~Cloud~~

Guidewire InsuranceSuite ~~Cloud~~ is a highly configurable and scalable product, delivered as a service, and primarily comprised of three core applications (PolicyCenter ~~Cloud~~, ~~BillingCenter Cloud~~ClaimCenter, and ~~ClaimCenter Cloud~~BillingCenter) that can be subscribed to separately or together. These applications are built on and optimized for our GWCP architecture and leverage our in-house cloud operations team. GWCP is a Guidewire-developed ~~Cloud~~infrastructure ~~Platform~~layer enabled by and hosted on Amazon Web Services (“~~GWCP~~AWS”). GWCP’s architecture consists of three primary layers. The specialized cloud infrastructure service and tool layer centered around optimizing service and resource availability, performance, scalability, and cost efficiency, maintaining data security, privacy and regulatory compliance, and offering a high degree of service observability to provide customers with better insight and control consistent with their operational needs. The data platform layer providing access to core and predictive analytics data to allow creation of curated datasets that can be used to drive delivery of actionable insights across the insurance lifecycle. The app platform layer containing modular, cloud-native services decoupled from the InsuranceSuite core that can be used individually or interconnected to enhance existing applications and empower creation of new business applications. GWCP was developed to meet the specialized needs of the P&C insurance industry, providing a scalable cloud architecture that combines multi-tenant cloud services and tools with the ability to isolate each customer’s system of record and database instances. This approach provides our customers with the benefits of cloud-native infrastructure and services and the flexibility to provide differentiated services to their customers.

~~Table~~InsuranceSuite is designed to support multiple releases each year to accelerate delivery of ~~Contents~~new capabilities and ensure that cloud customers remain on the latest version and gain fast access to our innovation efforts. Additionally, InsuranceSuite embeds digital and analytics capabilities natively into our platform. Most new sales and implementations are for InsuranceSuite.

~~architecture~~Guidewire ~~and~~PolicyCenter ~~leverage~~is our ~~in-house~~flexible ~~cloud~~underwriting ~~operations team. GWCP is a Guidewire-developed infrastructure layer enabled by~~ and ~~hosted~~policy onadministration ~~Amazon~~application ~~Web~~that ~~Services~~serves ~~(“AWS”).~~as ~~GWCP’s~~a ~~architecture~~comprehensive ~~consists~~ system-of-record ~~three~~supporting ~~primary~~the ~~layers.~~entire ~~Specialized~~policy ~~cloud~~lifecycle, ~~infrastructure~~including ~~services~~product ~~and~~definition, ~~tools~~underwriting, ~~are centered around maximizing service and resource availability~~quoting, ~~optimizing performance~~binding, ~~scalability~~issuance, ~~and cost efficiency~~endorsements, ~~maintaining data security~~audits, ~~privacy and regulatory compliance~~cancellations, ~~as well as offering a high degree of service observability to provide customers with better insight~~ and ~~control consistent with their operational needs~~renewals. ~~The~~Guidewire ~~Data~~ClaimCenter ~~Platform~~is ~~layer~~a ~~provides~~complete ~~access~~ end-to-end ~~core~~claims ~~and~~management ~~predictive~~solution ~~analytics data to allow creation of curated datasets~~ that ~~can~~offers becore ~~used~~claims tofunctionality. ~~drive~~Guidewire ~~delivery~~BillingCenter ofautomates ~~actionable insights across~~ the ~~insurance~~billing lifecycle~~. The App Platform layer contains modular~~, ~~cloud-native~~enables ~~services decoupled from~~ the ~~InsuranceSuite~~design ~~core that can be used individually or interconnected to enhance existing applications and empower creation~~ of ~~new~~a ~~business~~wide ~~applications.~~variety ~~GWCP was developed to meet the specialized needs~~ of ~~the~~billing ~~P&C~~and ~~insurance~~payment ~~industry~~plans, ~~providing~~manages aagent ~~scalable~~commissions, ~~cloud architecture that combines multi-tenant cloud services~~ and ~~tools~~integrates with ~~the~~external ~~ability~~payment tosystems. ~~isolate~~These ~~each~~primary ~~customer’s~~applications ~~system~~also ofinclude ~~record~~predictive ~~and~~analytics ~~database~~that ~~instances.~~drive ~~This~~smart ~~approach~~decisions, ~~provides~~digital ~~our~~engagement, ~~customers~~and ~~with~~an ~~the~~ecosystem ~~benefits~~ of ~~cloud-native~~partners ~~infrastructure~~ and ~~services and the flexibility to provide differentiated services to their customers~~insurtechs.

InsuranceSuite Cloud is designed to support multiple releases each year to ensure that cloud customers remain on the latest version and gain fast access to our innovation efforts. Additionally, InsuranceSuite Cloud embeds digital and analytics capabilities natively into our platform. Most new sales and implementations are for InsuranceSuite Cloud.

Guidewire PolicyCenter Cloud is our flexible underwriting and policy administration application that serves as a comprehensive system-of-record supporting the entire policy lifecycle, including product definition, underwriting, quoting, binding, issuance, endorsements, audits, cancellations, and renewals. Guidewire BillingCenter Cloud automates the billing lifecycle, enables the design of a wide variety of billing and payment plans, manages agent commissions, and integrates with external payment systems. Guidewire ClaimCenter Cloud is a complete end-to-end claims management solution that offers core claims functionality. These primary applications also include predictive analytics that drive smart decisions, digital engagement, and an ecosystem of partners and insurtechs.

Guidewire InsuranceNow

Guidewire InsuranceNow is a complete, cloud-based application that offers policy, ~~billing~~administration, ~~and~~ claims management, and billing functionality, plus pre-integrated document production, analytics, and other capabilities, that increases agility without adding complexity. Like InsuranceSuite, InsuranceNow is hosted on ~~AWS~~GWCP and managed by our internal cloud operations team. InsuranceNow is currently only available in the United States, and is generally suited to mid-market carriers and managing general agents whose needs are often not as complex as a typical InsuranceSuite customer.

Guidewire InsuranceSuite for Self-Managed

Guidewire InsuranceSuite for self-managed installations is comprised of three core applications (PolicyCenter, BillingCenter, and ClaimCenter) that can be licensed separately or together and can be deployed and updated by our customers and their implementation partners.

Guidewire InsuranceSuite: Complementary Capabilities and Applications

We offer several complementary capabilities and applications, some of which are included in the core operational services and products, and all of which are designed to work seamlessly with our core operational services and products, including:

Guidewire Rating Management

Guidewire Rating Management enables P&C insurers to manage the pricing of their insurance services and products.

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Guidewire Reinsurance Management

Guidewire Reinsurance Management enables P&C insurers to use rules-based logic to execute their reinsurance strategy through their underwriting and claims processes.

Guidewire Client Data Management

Guidewire Client Data Management helps P&C insurers capitalize on customer information more coherently, overcoming traditional siloed practices that impair efficiency and customer service.

Guidewire Advanced Product Designer

Guidewire Advanced Product Designer is a cloud-native application for insurance product design and management across the complete insurance lifecycle. It enables insurers to launch and update products quickly by providing visual product development tools, prebuilt product model templates, product management capability, and auto generated product code.

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Guidewire Product Content Management

Guidewire Product Content Management provides software tools and standards-based, line-of-business templates to enable insurers to more rapidly introduce and modify services and products by reducing product configuration and maintenance efforts. Any such product introduction or modification must connect to and incorporate regulatory or industry-standard data and content, such as Insurance Services Office (“ISO”) or National Council on Compensation Insurance content.

Guidewire Underwriting Management

Guidewire Underwriting Management is a cloud-based, integrated business application designed for commercial and specialty line insurers to drive premium growth and profit from better underwriting. This feature-rich workstation delivers straight-through processing, exception-based underwriting, real-time collaboration, and knowledge management in one integrated solution. Guidewire Underwriting Management is typically sold alongside Guidewire PolicyCenter, although it functions with other policy administration systems as well.

Guidewire AppReader

Guidewire AppReader is a submission intake management solution that enables P&C insurers to process Association for Cooperative Operations Research and Development forms faster and more accurately than with manual processes or traditional upload solutions. AppReader is available for both Guidewire Underwriting Management and Guidewire PolicyCenter.

Guidewire ClaimCenter Package for the London Market

Guidewire ClaimCenter Package for the London Market supports the claims workflow used by London Market insurers and brokers. Integration of London Market Electronic Claims File Write-Back lets insurers perform tasks and interact with the central industry market Claims Loss and Advice Settlement system directly from Guidewire ClaimCenter through message queues.

Digital Engagement

Guidewire Digital Engagement Applications

Our Digital Engagement Applications enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice. As consumers increasingly use self-service functions on the internet and on mobile devices, we believe that many of them prefer to interact with their insurance providers digitally and that they expect to have a consistent and efficient transactional experience through multiple channels, whether online, in-person or by phone. Our Digital Engagement Applications also benefit agents and brokers who are seeking to automate business processes with insurers to improve customer service and productivity. Digital engagement applications are enabled by the Jutro Digital Platform (“Jutro”), allowing insurers to strengthen customer relationships and brand loyalty while reducing operational cost through easy-to-use, self-service interactions. The focus of Jutro is on empowering “digital native users,” or those who understand and expect to interact with their insurers through digital experiences that are seamless, intuitive, user-friendly, mobile-ready, and omnichannel. In order to provide a holistic experience, Digital Applications are unified with InsuranceSuite.

Data and Analytics

We offer a variety of applications that allow insurers to ~~uncover~~evaluate ~~hidden~~risks ~~opportunities~~ and write more profitable business by enabling a seamless path from data to value.

Guidewire Predict

Guidewire Predict is a P&C-specific machine-learning platform that empowers insurers to make intelligent data-driven decisions throughout the insurance lifecycle. By building (or importing) predictive models built from multiple data sets, designing comprehensive solutions, and operationalizing the predictive insights, Predict allows insurers to rapidly turn any model into business value by delivering guidance to frontline decision makers. Predict for Claims helps customers to better manage claim indemnity and loss-adjustment expenses. Predict for Profitability improves pricing accuracy and customer satisfaction.

Guidewire HazardHub

Guidewire HazardHub allows insurers to understand, assess, price, and manage property risk quickly and intelligently. HazardHub provides a single source of geospatial risk data, and provides access to more than 950 risk variables, including perils from air, water, earth, and fire. HazardHub is a cloud-native solution delivered through an Application Programming Interface that provides access to this information for any personal or commercial property located in 19 countries, including, among others, Australia, France, Germany, New Zealand, South Africa, the United Kingdom (“U.K.”), and the United States, and has the ability to evaluate an entire portfolio for property risk.

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perils from air, water, earth, and fire. HazardHub is a cloud-native solution delivered through an Application Programming Interface that provides access to this information for any personal or commercial property located in 19 countries, including, among others, Australia, France, Germany, New Zealand, South Africa, the United Kingdom (“U.K.”), and the United States, and has the ability to evaluate an entire portfolio for property risk.

Guidewire Canvas

Guidewire Canvas is a cloud-native application included with ClaimCenter Cloud. It features an interactive map that enables claims management and catastrophe response teams to geo-visualize claims to help improve customer satisfaction and reduce indemnity by proactively responding to storm events.6

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Guidewire Canvas is a cloud-native application included with ClaimCenter. It features an interactive map that enables claims management and catastrophe response teams to geo-visualize claims to help improve customer satisfaction and reduce indemnity by proactively responding to storm events.

Guidewire Compare

Guidewire Compare is a cloud-native application included with ClaimCenter ~~Cloud~~ that monitors key claims measures and gives feedback on how those compare against peer insurers in the Guidewire community, or within a single insurer across regions or over time. Compare allows claims organizations to increase their processing efficiency by monitoring key claims measures such as indemnity, expenses, cycle times, reserves, salvage, subrogation, percentage closed, catastrophe, and litigated.

Guidewire ~~Explore~~Industry Intel

Guidewire ~~Explore~~Industry isIntel comprises a ~~cloud-native~~set ~~application~~of ~~that~~pre-built ~~gathers and curates InsuranceSuite data in near real~~AI-~~time~~based tomodels ~~augment~~leveraging ~~decision~~our ~~making~~comprehensive ~~inside and outside InsuranceSuite~~datasets. ~~Explore~~Intel ~~includes~~provides ~~free-form~~carriers ~~search across the data set, along~~ with ~~visualizations and dashboards for common~~ line-of-business-specific ~~metrics.~~actionable Itpredictions ~~allows business users~~ to ~~examine~~enhance operational ~~claims~~efficiency ~~data,~~directly ~~underwriting~~embedded ~~management~~into ~~data,~~core ~~and~~workflows ~~operational~~within ~~policy~~PolicyCenter ~~data~~and ClaimsCenter.

Guidewire Data Studio and Explore

Guidewire Data Studio is a cloud-native application leveraging the Guidewire Data Platform. It is designed to provide streamlined access to the data from InsuranceSuite products. It provides a curated content data repository that enables insurers to build, organize, and publish InsuranceSuite datasets for downstream applications. The Guidewire Insurance Data Model contains sets of pre-curated P&C insurance-specific metrics and attributes; data dictionaries; and supporting user diagrams and documentation. It facilitates the generation of financial and business insights, ultimately improving policy and claims outcomes for insurers.

Guidewire Explore is a cloud-native business intelligence application with ready-to-use datasets, reports, and dashboards that provides insurers with financial and operational insights to better understand the health of their business, make informed decisions, identify areas of improvement, stay competitive, and support internal and external stakeholders.

Guidewire Cyence

Guidewire Cyence is a cyber-risk economic modeling product that helps P&C insurers accurately measure the financial impact of cyber risk on their customers. It does this by capturing data about cyber threats from more than 400 sources, including public, open-source, proprietary, and third-party data. Cyence then curates and analyzes the data through AI and machine-learning statistical models to extract meaningful signals. Based on these models, Cyence produces insights delivered through reports that will predict the likelihood and economic impact of cyber attacks on a target company or individual. This can be used for underwriting, pricing, and developing cyber insurance products.

Guidewire DataHub and InfoCenter

Guidewire DataHub is an operational data store that unifies, standardizes, and stores data from the patchwork of insurer’s systems as well as from external sources. ~~It is available for self-managed and InsuranceSuite Cloud customers.~~

Guidewire InfoCenter is a business intelligence warehouse for P&C insurers that provides information in easy-to-use formats for business intelligence, analysis, and enhanced decision making. With Guidewire InfoCenter, insurers gain flexible operational insights as well as the ability to optimize their business.

Guidewire Marketplace

The Guidewire Marketplace is where insurers find ~~trusted~~vetted applications and content that complement the Guidewire platform from our PartnerConnect partners, as well as ~~from~~ Guidewire product and services teams. These applications and content help insurers to rapidly innovate and differentiate their businesses by allowing them to leverage capabilities ~~provided~~from by the Guidewire ecosystem to meet their business goals. The Guidewire Marketplace also empowers customers pursuing innovation initiatives by ~~providing~~offering ~~access to~~ a ~~curated~~vetted collection of insurtech applications. Additionally, we promote innovation through our Insurtech Vanguards which is a community of select startups and technology providers, bringing transformative solutions to the P&C industry and making innovation more accessible. ~~Nine~~Sixteen Insurtech Vanguards have been promoted to our PartnerConnect program. As of July 31, ~~2024~~2025, the Guidewire Marketplace had over ~~215~~315 partner-developed integrations that have been awarded Ready for Guidewire validation and hundreds of Guidewire-developed resources available for download. We are continually expanding the breadth of functionality and depth of partnerships in the Guidewire Marketplace.

Technology

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We have increased the scope of our platform, products, and business through internal development and acquisitions. This growing scope has required greater investment in the development of application interfaces and shared services necessary to unify the operations and user experience across our applications. The prioritization of cloud-delivered solutions has also required significant focus in improving our ability to manage, secure, and operate our applications since our cloud-based deployments, unlike our self-managed implementations, shift many operational responsibilities to us.

Our cloud infrastructure is designed to ~~maximize~~enhance the security, stability, scalability and efficiency of our applications. Our cloud infrastructure leverages AWS, ~~provides services hosted in AWS~~ regions worldwide, and is tailored to provide both the benefit of cloud subscription services delivered in a cloud-native multi-tenant model while still providing insurers with the ability to configure and extend their applications via single-tenant environments which are easily managed via Guidewire Cloud Console. All of our cloud services and products comply with relevant standards set by ISO, American Institute of Certified Public Accountants, and Payment Card Industry Security Standards Council.

Finally, we continue to improve the scalability of our service, which performs millions of complex, business-critical transactions daily. The accuracy and availability of our services must be maintained not only during normal business operations, but also during extraordinary events such as catastrophes, which may result in extremely high transaction volume in a short period of time.

Services

We provide implementation, cloud migration, and integration services to help our customers realize the benefits of our products. Our delivery services teams assist customers in building implementation or migration plans, integrating our software with their existing systems, and defining business rules and specific requirements unique to each customer. We also partner with leading SI consulting firms, certified on our software, to achieve scalable, cost-effective implementations for our customers.

Our investments in services and partners are designed to ensure customer success by committing appropriate resources to ~~both cloud-based and self-managed~~ implementation projects.

Customer Support

We provide support for our subscription customers as part of our subscription services and to our license customers for an annual fee based on a percentage of the license fees. Subscription services also include regular updates to Guidewire software to ensure that Guidewire Cloud customers can easily access our latest innovations. New capabilities are often toggled-off so that customers can activate them at the right time for their businesses. This enables our customers to deliver improvements at a steady pace, optimized for their employees and customers.

Our subscriptions include Guidewire Cloud Assurance Services, which provides for review of all configurations and integrations to ensure they follow published standards, best practices and required security methodologies. Furthermore, our internal cloud operations team monitors application performance and our customer success team works directly with customers to optimize adoption, user experience, and business requirements.

Employees and Human Capital Resources

Our business requires attracting, developing, and retaining a motivated team of individuals who thrive in a culture based on integrity, rationality, and collegiality ~~and that embraces diversity, inclusion, and belonging~~. Understanding and proactively anticipating the priorities and needs of our current and future employees is important to realizing our mission to be the platform P&C insurers ~~trust~~rely on to engage, innovate, and grow efficiently.

As of July 31, ~~2024~~2025, we had 3,~~469~~772 employees, including 1,~~782~~879 in global product development and operations (comprised of research and development, cloud operations, and technical support), ~~750~~873 in professional services, ~~477~~533 in sales and marketing, and ~~460~~487 in general and administrative roles. As of July 31, ~~2024~~2025, we had 1,~~692~~714 employees in the United States and 12,~~777~~058 employees internationally.

Attracting, Developing, and Retaining Employees

Our recruiting, development, and retention objectives focus on providing an optimal employee experience and culture across the employee life cycle from recruitment to retirement, and involve attracting skilled and engaged employees who contribute the talent and ~~diverse~~range of perspectives critical to our innovative, forward-looking, and inclusive workforce. Our recruiting process ~~actively sources diverse talent and~~ is designed to reduce bias, ~~supporting~~and support our ability to hire candidates with professional qualifications, personal potential, and differing perspectives. ~~Our~~For certain roles and when required to meet our business needs, flexible work policies expand our ability to hire for certain roles and retain talent in geographies where we do not have physical offices. Fostering career progression by encouraging regular professional education empowers our employees to pursue their professional goals, which is critical to developing and retaining our employees. We invest in broad-based development by providing diverse growth opportunities, including skills training, on-demand AI learning

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~~including cutting-edge skills training, on-demand AI learning~~ platforms, ~~dynamic~~ mentorship, and ~~transformative~~ leadership programs. We gauge progress and efficacy, identify opportunities for change, and pursue solutions through tracking and analyzing data from various sources such as annual talent reviews, employee feedback, and our progress toward hiring and promotion goals.

~~Diversity,~~People ~~Inclusion,~~ and ~~Belonging~~Community Engagement

We believe that understanding and respecting another’s perspective, experience, background, and beliefs provides anopportunities ~~opportunity~~ to expand horizons, increase innovation, challenge complacency, and foster empathy. ~~Diversity~~A ofbroad ~~perspective,~~range ~~experience,~~of ~~background,~~perspectives and ~~beliefs~~experiences ~~fuel~~drives our innovative, collaborative, and engaged workplace. We aim for the highest standards of fairness and equal opportunity in recruitment, hiring, promotions, job assignments, and compensation. Initiatives to ~~create~~foster ~~greater~~a ~~diversity~~collaborative and ~~belonging~~welcoming ~~among~~workplace ~~our employees~~ include ~~inclusive~~ recruiting and outreach programs ~~for~~and ~~diverse~~various ~~candidates,~~ employee resource groups ~~(“ERGs”),~~open ~~and~~to ~~management-led~~all ~~listening circles~~employees. Our ERGs are employee-led and comprised of volunteers who represent common interests, experiences, backgrounds, or demographics. As of the end of fiscal year 2024, we had eight ERGs including African Ancestry, Asian and Pacific Islander, Early Career Professionals, LatinX and Hispanic, LGBTQ+ and Allies, Veterans and Allies, Visible or Invisible Disabilities, and Women’s Leadership.

Guidewire Gives Back (“GGB”) is aour program focused on investing in local communities where we operate by encouraging employee volunteerism, philanthropy, and social impact investment. The GGB program is centered around employee engagement and community impact through volunteer hours from the Guidewire community and financial donations, both of which are geared toward making a measurable difference. The GGB strategy, programs, and collaborative partnerships reflect employees’ passions and embody Guidewire’s corporate mission, as well as our customers’ purpose.

Corporate Culture

Our employees are critical to our success, and weour ~~believe~~global ~~creating~~strategy includes cultivating an inclusive ~~culture~~and isengaged ~~essential~~workforce tothat ~~attracting~~fosters collaboration and ~~retaining~~supports ~~engaged~~our ~~employees~~shared values. Our values of integrity, rationality, and collegiality are the foundation of how we work with one another. We incorporate a wide variety of communication and training activities to encourage collaboration ~~amongst~~across our ~~colleagues~~global ~~around the world~~workforce. We measure the ~~program’s~~effectiveness ~~efficacy~~of ~~and~~our ~~identify~~employee ~~opportunities~~programs ~~for improvements~~ through anquarterly ~~engagement~~surveys ~~survey~~and ~~distributed~~use ~~annually, with~~ the ~~last~~results ~~survey~~to ~~completed~~identify inopportunities ~~August~~for ~~2024, and periodic pulse surveys to elicit feedback~~improvement.

Health and Wellness

We believe a healthy, engaged, and high-performing workforce is part of our competitive advantage. We want all of our employees to thrive, and we regularly re-evaluate how to best support our employees’ wellness, health, and safety through management systems, policies, and programs that encompass our global operations. Our current benefit and wellness programs drive engagement that positively impacts our culture, job satisfaction, recruiting, and retention programs. We ~~increased~~demonstrate our commitment to well-being bythrough ~~expanding~~ our physical, mental, and family health programs., Weand ~~enhanced our support through~~ professional development, ~~by launching virtual skill-building workshops, providing a connection point to the community as well as continued growth~~ opportunities ~~for remote roles~~. We also ~~prioritized~~prioritize personal empowerment, wellness initiatives, safe and flexible workspaces, and comprehensive benefits — ensuring our team stays healthy, supported, and connected. ~~Additionally, we have transitioned to a hybrid work environment in which a significant portion of our workforce works in-person on a part-time basis.~~

Employee Relations

Our employees in the United States are not represented by a labor union; however, in certain foreign locations, there are workers’ councils that represent our employees. We have not experienced any work stoppages, and we consider our relations with our employees to be good. We recognize the critical role that our supervisors and managers play in fostering a productive, inclusive and respectful work environment, and we encourage employees to work directly with their supervisors, where possible, to efficiently and effectively resolve workplace concerns. We also respect our employees’ rights to voluntarily establish and join unions and similar associations without unlawful interference. We strive to work collaboratively with the councils and associations that represent our workers.

Customers

We market and sell our products to a wide variety of global P&C insurers ranging from some of the largest global insurers to national, regional, and state companies. We believe strong customer relationships are a key driver of our success given the long-term nature of our customer engagements and importance of customer references for new sales. We focus on developing and maintaining our customer relationships through customer service and account management. Customers are defined as entities that have placed orders for our services or products. In some instances, a parent corporation can have multiple entities, or insurance brands, that place orders for our services or products and, in other instances, customers are in industries adjacent to the insurance industry and do not have an insurance brand. As of July 31, 2025, we had approximately 500 customers representing approximately 570 insurance brands in 43 countries. Our customer definition excludes customers that pay us less than $10,000 per year, which primarily represents customers of our HazardHub product.

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defined as entities that have placed orders for our services or products. In some instances, a parent corporation can have multiple entities, or insurance brands, that place orders for our services or products and, in other instances, customers are in industries adjacent to the insurance industry and do not have an insurance brand. As of July 31, 2024, we had approximately 470 customers representing approximately 570 insurance brands in 42 countries. We have updated our customer definition to exclude customers that pay us less than $10,000 per year, which primarily represents customers of our HazardHub product.

Strategic Relationships

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We have extensive relationships with SI, consulting, technology, and industry partners. Our network of partners has expanded as interest in and adoption of our platform has grown. We encourage our partners to co-market, pursue joint sales initiatives, obtain certifications related to our products, and drive broader adoption of our technology, helping us grow our business more efficiently and enabling us to focus our resources on continued innovation and further enhancement of our solutions.

We work closely with our network of ~~third-party~~ SI partners to facilitate new sales and implementations of our products. Our partnerships with leading SI partners allow us to increase efficiency and scale while reducing customer implementation and migration costs. We continue to invest time and resources to increase the number of qualified consultants employed by our SI partners, develop relationships with new partners in existing and new markets, and ensure that all SI partners are qualified to ~~assist~~implement ~~with implementing~~ our products. We believe this model will continue to serve us well, and we intend to continue to expand our network of partners and the number of certified consultants with whom we work so we can leverage our SI partners more effectively, especially for future subscription migrations and implementations.

As part of our PartnerConnect alliance program, we have a community of solution partners developing integrations that enable software and insurance business solutions to interoperate with our products, many of which are in the Guidewire Marketplace. These integrations help customers reduce implementation risk and effort, and lower the total cost of implementation and operation.

Sales and Marketing

Consistent with our industry focus and the mission-critical needs our products address, our sales and marketing efforts are tailored to communicate effectively to senior executives within the P&C insurance industry. Our sales, marketing, customer success, and executive teams work together to cultivate long-term relationships with current and prospective customers in each of the geographies in which we are active.

Our direct sales team serves as both our exclusive sales channel and our account management function and is organized by geographic region across the Americas, EMEA, and APAC. We augment our sales professionals with a pre-sales team possessing insurance domain and technical expertise, who engage customers to understand their specific business needs and then represent our products through demonstrations tailored to address those needs.

Our marketing team supports sales with competitive analysis and sales tools, while investing to strengthen our brand name and reputation. We participate at industry conferences, are published frequently in the industry press, and have active relationships with all of the major industry analysts. We also host Connections, our annual customer conference, where customers both participate in and deliver presentations on a wide range of Guidewire and insurance technology topics. We invite potential customers and partners to our customer conference, as we believe customer references are a key component of driving new sales. Our strong relationships with leading system integrators enhance our direct sales through co-marketing efforts and by providing additional market validation of the distinctiveness and quality of our offerings.

Our strong relationships with leading SI partners enhance our direct sales through co-marketing efforts and by providing additional market validation of the distinctiveness and quality of our offerings.

Research and Development

Our research and development efforts focus on enhancing our platform, services, and products to meet the complex requirements of P&C insurers with particular emphasis on capabilities, operational efficiency, data analytics, security, and privacy in the cloud. These efforts are intended to help our customers improve their operations; drive greater digital engagement with their customers, agents, and brokers; and gather, store and analyze data to improve business decisions. We also invest significantly in developing our products and necessary integrations to meet the market requirements, including regulations, language, currency, and local terminology, of each country or state in which our customers operate. This market-segment specific functionality must be updated regularly in order to stay current with regulatory changes in each market. We rely on a multi-national engineering team, which has grown organically and through acquisitions.

Our investments in cloud operations are focused on managing the infrastructure for our cloud-based customers in a secure, efficient, and cost-effective manner.

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Competition

The software market that caters to the P&C insurance industry is highly competitive and fragmented. Increased spending by insurers on software solutions and the emergence of new platforms that have broadened from core system modernization to new digital engagement and data and analytics solutions have generated significant interest among investors and entrepreneurs. Increased capital allows market participants, or potential market participants such as insurtech companies, to adopt more aggressive go-to-market strategies, improve existing products, introduce new products, develop innovative solutions that disrupt the market, and consolidate with other vendors. This market is also subject to changing technology preferences, shifting customer needs, and the adoption of cloud deployed solutions. These factors create an environment of ~~increasing~~shifting ~~competition. Our current~~ and ~~future~~increasing ~~competitors vary in size and in the breadth and scope of the products they offer~~competition. ~~As we expand our product portfolio, we may begin to compete with software and service providers we have not traditionally competed against.~~ Our current ~~competitors include, but are not limited to, customers’ internally developed proprietary solutions; P&C insurance software vendors such as Duck Creek, EIS Group, Insurity, Majesco, Origami Risk,~~ and ~~Sapiens; and horizontal software vendors such as SAP SE and Salesforce.~~

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future competitors vary in size and in the breadth and scope of the products they offer. As we expand our product portfolio, we may begin to compete with software and service providers we have not traditionally competed against. Our current competitors include, but are not limited to, customers’ internally developed proprietary solutions; P&C insurance software vendors such as Duck Creek, EIS Group, Insurity, Majesco, Origami Risk, and Sapiens; and horizontal software vendors such as SAP SE, Salesforce and ServiceNow.

Competitive factors in our industry depend on the product being offered and the size, geographic market, and line of business of potential customers. The principal competitive factors include product functionality, performance, customer references, total cost of ownership, solution completeness, implementation track record, security and in-depth knowledge of the P&C insurance industry. We typically compete favorably on the basis of these factors in most geographies.

Intellectual Property

~~The software industry is characterized by the existence of a large number of patents and frequent claims and related litigation regarding patent and other intellectual property rights.~~ Our success and ability to compete depend in part upon our ability to protect our proprietary technology, to establish and adequately protect our intellectual property rights, and to protect against third-party claims and litigation related to intellectual property. To accomplish these objectives, we rely on a combination of patent, trademark, copyright, and trade secret laws in the United States and other jurisdictions, as well as license agreements and other contractual protections. We own or have pending patents and patent applications, which generally apply to our software. Our owned patents have expiration dates starting in ~~2026~~2025. We also rely on several registered and unregistered trademarks, as well as pending applications for such registrations, in order to protect our brand both in the United States and internationally.

Information about Segment and Geographic Revenue

Information about geographic revenue is set forth in Note 2 “Revenue” and information about segment reporting is set forth in Note 1213 “Segment Information” to our consolidated financial statements included in this Annual Report on Form 10-K.

Seasonality

We have experienced seasonal variations in our license revenue and, to a lesser extent, in our subscription revenue as a result of increased customer orders in our fourth fiscal quarter due to efforts by our sales team to achieve annual incentives. Because we recognize revenue upfront for term licenses compared to over time for subscription services, changes in the mix between term license and subscription services may impact our quarterly results. Additionally, any significant multi-year term license renewal or non-renewal could impact quarterly results. Subscription sales now represent the significant majority of total sales and, as a result when compared to term license sales, the revenue we recognize in the initial fiscal year of an order is lower, deferred revenue is higher, and our total reported revenue growth may be adversely affected in the near term due to the ratable nature of these arrangements. Over time, this ratable revenue dynamic has and will dampen the impact of seasonality on our revenue.

Our services revenue is also subject to seasonal fluctuations, though to a lesser degree than our license revenue and subscription revenue. Our services revenue is impacted by the number of billable days in a given fiscal quarter. The fiscal quarter ending January 31 usually has fewer billable days due to the impact of calendar year end holidays in the United States. Our fourth fiscal quarter usually has fewer billable days due to the impact of vacations taken by our services professionals. Because we pay our services professionals the same amount throughout the year, our gross margins on our services revenue are usually lower in these quarters. This seasonal pattern, however, may be absent in any given year.

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WHERE YOU CAN FIND MORE INFORMATION

The following filings are available to view and download free of charge on our investor relations website as soon as reasonably practicable after we file them with the SEC: Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our Proxy Statement for our annual meeting of stockholders. Our website is located at www.guidewire.com, and our investor relations website is located at ir.guidewire.com. We also provide a link to the section of the SEC’s website at www.sec.gov that has all of our public filings, including periodic reports, proxy statements, and other information.

We provide access to a recording of our earnings calls and certain events we participate in or host with members of the investment community on our investor relations website. Additionally, we also provide notifications on our investor relations website of news or announcements regarding our financial performance, including SEC filings, investor events, press releases, and earnings releases. Investors and others can receive notifications of new information posted on our investor relations website in real time by signing up for email alerts and RSS feeds. Corporate governance information, including our governance guidelines and code of business conduct and ethics, is also available on our investor relations website under the heading “Corporate Governance.” Corporate sustainability information is available on our website and is located at www.guidewire.com/corporate-sustainability. The contents of our websites, including any information contained in reports or other resources found on such websites, are not intended to be incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC. Any references to our websites are intended to be inactive, textual references only.

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Current Reports on Form 8-K, and our Proxy Statement for our annual meeting of stockholders. Our website is located at www.guidewire.com, and our investor relations website is located at ir.guidewire.com. We also provide a link to the section of the SEC’s website at www.sec.gov that has all of our public filings, including periodic reports, proxy statements, and other information.

We provide access to a recording of our earnings calls and certain events we participate in or host with members of the investment community on our investor relations website. Additionally, we also provide notifications on our investor relations website of news or announcements regarding our financial performance, including SEC filings, investor events, press releases, and earnings releases. Investors and others can receive notifications of new information posted on our investor relations website in real time by signing up for email alerts and RSS feeds. Corporate governance information, including our governance guidelines and code of business conduct and ethics, is also available on our investor relations website under the heading “Corporate Governance.” Corporate sustainability information, including our approach and progress in respect of environmentally and socially responsible business practices, is available on our website and is located at www.guidewire.com/corporate-sustainability. The contents of our websites, including any information contained in reports or other resources found on such websites, are not intended to be incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC. Any references to our websites are intended to be inactive, textual references only.

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Item 1A.Risk Factors

A description of the risks and uncertainties associated with our business is set forth below. You should carefully consider such risks and uncertainties, together with the other information contained in this Annual Report on Form 10-K, and in our other public filings. ~~The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties may also become important factors that adversely affect our business.~~ If any of such risks and uncertainties actually occurs, our business, ~~results~~financial ofcondition ~~operations,~~ or ~~financial~~results ~~condition~~of operations could differ materially from the plans, projections and other forward-looking statements included in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Annual Report on Form 10-K and in our other public filings. In addition, if any of the following risks and uncertainties, or if any other risks and uncertainties, actually occurs, our business, ~~results~~financial ofcondition ~~operations,~~ or ~~financial~~results ~~condition~~of operations could be harmed substantially, which could cause the market price of our stock to decline, perhaps significantly.

SUMMARY OF MATERIAL RISKS ASSOCIATED WITH OUR BUSINESS

The principal risks and uncertainties affecting our business include the following:

•our quarterly and annual results may fluctuate significantly due to a number of factors, including economic conditions, customer behavior, contract provisions and changes, operational costs and reliability, seasonality, and other uncertainties, which could impact our stock price;

•our reliance on orders from a relatively small number of customers in the P&C insurance industry for a substantial portion of our revenue and Annual Recurring Revenue (“ARR”) and the related substantial negotiating leverage of these customers, as well as our dependence on customer renewals and expansions of their contracts for our products, which may not occur;

•lengthy and variable sales and implementation cycles, with factors beyond our control, including competitive pressures, potentially causing expenditure of significant time and resources prior to revenue generation;

•failure to grow our business and manage our expanding operations, including internationally, effectively;

•our ability to expand adoption of our cloud-based products, migrate existing term license customers to cloud-based offerings on a subscription basis, and manage long-term pricing commitments in our customer contracts that are based on available information and estimates about future costs that may change;

•exposure to risks in relation to data security incidents or breaches of our cloud-based products, unauthorized access to our customers’ or employees’ data, and the related impact on our ability to effectively operate our cloud environment for our customers;

•issues in the development and use of AI, as well as the use of AI by our workforce, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations;

•retaining existing and hiring new personnel, including managing a hybrid and geographically distributed workforce;

•errors or failures in our products or services, as well as failures, security vulnerabilities, or service interruptions of third-party technologies and service providers we utilize, could impair the availability of our products, harm our reputation, lead to customer loss, increase liability claims, or harm our future financial results;

•dependence on the quality and effectiveness of our professional services, technical support, and SI partners, and successful development of our global direct sales force and the expansion of our relationships with SI partners;

•factors that could affect our gross and operating margins, including revenue mix and costs related to operating, securing, and enhancing our subscription services;

•exposure to market risks, including geographical and global events, supply chain disruptions, inflation, political and regional conflicts, interest rates, foreign currency exchange rates, tariffs, and financial markets’ volatility and their impact on our stock price and its volatility and our customers, partners, vendors, or our business operations; and

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Risks Related to our Business and Industry

We may experience significant quarterly and annual fluctuations in our results of operations due to a number of factors.

Our quarterly and annual results of operations may fluctuate significantly due to a variety of factors, many of which are outside of our control. This variability may lead to volatility in our stock price as investors and research analysts respond to quarterly fluctuations. In addition, comparing our results of operations on a period-to-period basis, particularly on a sequential quarterly basis, may not be meaningful. You should not rely on our past results as an indication of our future performance.

Factors that may affect our results of operations include:

•the impact of economic downturns and related market volatility caused by economic volatility, inflation, bank failures and associated financial instability and crises, political uncertainties, or other national and worldwide events on our business and the businesses of our customers, partners, and vendors;

•our ability to attract new domestic and international customers and renew existing customers;

•seasonal buying patterns of our potential customers and our ability to sell additional software and services to existing customers;

•the proportion and timing of subscription sales as opposed to term software licenses, and the variations in revenue recognition between these contract types;

•changes in contract durations of term software licenses and renewals or modifications of customer contracts;

•increases in costs related to cloud operations, cybersecurity, product development, and services;

•our ability to ~~develop~~expand ~~and achieve~~ market adoption of cloud-based services, including the impact of our customers transitioning from term software licenses to subscription services;

•erosion in services margins or significant fluctuations in services revenue caused by changing customer demand, negotiated professional services billing rates, investments in customer implementation and migration projects, utilization rates, or fixed fee contracts;

•our ability to enter into contracts on favorable terms, including terms related to price, payment timing, service levels, acceptance, and product delivery, especially with customers and prospects that possess substantial negotiating leverage and procurement expertise;

•the incurrence of penalties or having to renegotiate contract terms for failing to meet certain contractual obligations, including service levels, product development cycles and functionality, and implementation times and objectives;

•security and privacy concerns related to employee data, customer data, and systems that are accessed or otherwise used by our hybrid workforce and customers;

•employee retention, the ability to hire and onboard appropriate personnel, and the timing of hiring personnel and employee related expenses;

•our ability to realize expected benefits from our acquisitions and other strategic business transactions;

•reductions in our customers’ budgets for information technology purchases and delays in their purchasing decisions;

~~Table~~•the impact of ~~Contents~~a recession or any other adverse global economic condition on our business, including public health crises, such as epidemics and pandemics, changes in political climate, geographic and political conflicts, and uncertainties with respect to trade tariffs, trade agreements, and other trade issues that may cause a delay in entering into, a failure to enter into, or cancellation of significant customer agreements or the fulfillment of professional service arrangements;

•the impact of a recession or any other adverse global economic condition on our business, including public health crises, such as epidemics and pandemics, geographic and political conflicts, trade tariffs, trade agreements, and other uncertainties that may cause a delay in entering into, a failure to enter into, or cancel significant customer agreements or the fulfillment of professional service arrangements;

•adverse litigation judgments, dispute-related settlement payments, or litigation-related costs;

•future accounting pronouncements, changes in accounting rules, new tax laws or regulations, or tax interpretations and our related accounting policies, interpretations, and controls;

•fluctuations in foreign currency exchange rates; and

•the effects of inflation or deflation in the economies in which we operate, and their impact on interest rates, collection timeframes, and our revenue given the multi-year term of most customer agreements.

The foregoing factors are difficult to forecast, and these, as well as other factors, could materially adversely affect our quarterly and annual results of operations. Further, due to multi-year term licenses and multi-year term license renewals, increased cloud-based subscription services, timing of and billing rates for professional services engagements, and other ongoing ~~changes~~aspects toof our business, it is challenging to forecast our quarterly and annual results.

We believe our ability to adjust spending quickly enough to compensate for a potential revenue shortfall is limited and our inability to do so could magnify the adverse impact of a potential revenue shortfall on our results of operations. If we fail to achieve our quarterly forecasts, if our forecasts fall below the expectations of investors or research analysts, or if our actual results fail to meet the expectations of investors or research analysts, our stock price may decline.14

If we do not receive customer or market acceptance of our business model focused on delivering cloud-based offerings on a subscription basis, or if we fail to meet stipulated service levels with our subscription services, our results of operations could be harmed.

To address demand trends in the P&C insurance industry, we offer customers the use of our software products through a cloud-based offering sold on a subscription basis in addition to our self-managed offering. Our subscription business model has required a considerable investment of technical, operational, financial, legal, and sales resources. Our software and cloud services involve the storage and transmission of customer data, including in some cases, personal data, and security breaches could result in the loss of this information, which in turn could result in litigation, breach of contract claims, indemnity obligations, harm to our reputation, and other liabilities for us. Our cloud offerings will continue to be the focus of existing resources, require us to hire additional resources, and increase costs, especially in cost of subscription and support revenue, cost of services revenue, and research and development, in any given period. We may not be able to efficiently scale such investments to meet customer demand and expectations, which may impact our long-term growth and results of operations. Further, the increase in some costs associated with our cloud services, such as the cost of third-party infrastructure in which we rely to host our subscription services, may be difficult to predict over time. Furthermore, we may assume greater responsibilities for implementation of subscription services due to our operating and maintaining the cloud environment for our customers. As a result, we may face risks associated with new and complex implementations or migrations, the cost of which may differ from original estimates. Our subscription contracts also contain penalty clauses, for matters such as failing to meet stipulated service levels or other contractual provisions. Should these penalties be triggered, our results of operations may be adversely affected. These penalties and costs could take the form of monetary credits for current or future service engagements, reduced fees for additional services or products or upon renewal of existing agreements, and a customer’s renegotiation or refusal to pay its contractually obligated subscription or service fees.

Revenue under our cloud-based subscription model is generally recognized ratably over the term of the contract. Ratable revenue recognition results in lower revenue than we otherwise would have recognized in the initial period of the customer agreement under term license agreements. This effect on recognized revenue may be magnified in any fiscal year due to the concentration of our orders in the fourth fiscal quarter. Additionally, the timing of our customers’ decision to transition from self-managed licenses to cloud-based subscription services could negatively affect our ability to forecast the timing and amount of our revenue in any period.

Acceptance of our cloud-based solutions may not develop as anticipated and could be affected by a variety of factors, including, but not limited to, cost, security, reliability, performance, customer preference, perceived value associated with such offerings, public concerns regarding privacy, and the enactment of restrictive laws or regulations. If the market for our cloud-based solutions generally does not evolve as expected, it could result in reduced customer purchases, reduced renewal rates, and decreased revenue, any of which will adversely affect our business, results of operations, or financial condition. Further, for any of our existing customers that have not yet transitioned to our cloud-based offering, any perceived negative impacts or

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~~incremental~~We ~~costs~~believe ~~associated~~our ~~with~~ability to adjust spending quickly enough to compensate for a potential revenue shortfall is limited and our inability to do so could magnify the ~~transition,~~adverse orimpact anof ~~accelerated~~a ~~transition~~potential ~~schedule,~~revenue ~~may~~shortfall ~~lead~~on our results of operations. If we fail to ~~customer~~achieve ~~dissatisfaction~~our ~~and~~quarterly ~~provide~~forecasts, if our ~~competitors~~forecasts ~~with~~fall anbelow ~~opportunity~~the expectations of investors or research analysts, or if our actual results fail to ~~acquire~~meet ~~these~~the ~~customers~~expectations of investors or research analysts, our stock price may decline.

WeOur ~~are~~reliance ~~continually~~on ~~updating~~a ~~our~~relatively ~~existing~~small ~~products~~number ~~and~~of ~~developing~~P&C ~~new~~insurance ~~products in an effort to offer~~ customers ~~greater~~for ~~choices~~a onsignificant ~~how~~portion ~~they~~of ~~utilize~~ our ~~software.~~revenue ~~As our business practices in this area develop~~ and ~~evolve~~ARR ~~over time, we may be required to revise our current subscription agreements, which may result in revised terms~~ and ~~conditions that impact how we recognize revenue and~~ the ~~costs~~substantial ~~and~~negotiating ~~risks~~leverage ~~associated~~of ~~with~~ these ~~offerings.~~customers ~~Whether~~could ~~our~~adversely ~~product~~affect ~~development efforts or business model will prove successful and accomplish~~ our business ~~objectives is subject to numerous uncertainties and risks~~, ~~including,~~results ~~but~~of ~~not limited to~~operations, ~~customer demand, our ability to further develop, manage,~~ and ~~scale~~financial infrastructure, our ability to include functionality and usability in such offerings that address customer requirements, our customers’ ability to successfully migrate to and implement our subscription services, tax and accounting implications, and our costscondition.

InOur ~~addition,~~revenue and ARR are dependent on orders from customers in the ~~metrics~~P&C weinsurance industry, which may be adversely affected by worldwide economic, environmental, public health, and political conditions. A relatively small number of customers have historically accounted for a significant portion of our ~~investors~~revenue. ~~use~~The tocomposition ~~evaluate~~of our ~~business~~individual ~~model~~top ~~may~~customers ~~evolve~~has ~~over~~varied ~~the~~and ~~course~~will ofcontinue ~~time~~to asvary ~~significant~~from ~~trends~~year ~~emerge~~to year. ItOur ~~may~~ten belargest ~~difficult~~customers accounted for 20% and 22% of our revenue in fiscal years 2025 and 2024, ~~therefore~~respectively. Additionally, toour ~~accurately~~ten ~~determine~~largest ~~the~~customers ~~impact~~based on ARR accounted for 20% of total ARR at July 31, 2025. Customers for these metrics are calculated at the parent corporation level, while our ~~business~~total customer count is based on aentities ~~contemporaneous~~that ~~basis,~~have placed orders for our services or products. While we expect this reliance to ~~clearly~~decrease ~~communicate~~over ~~the~~time ~~appropriate~~as ~~metrics~~our revenue, customer base, and subscription services as a percentage of revenue grow, we expect that we will continue to depend upon a relatively small number of customers for a significant portion of our ~~investors~~revenue and ARR for the foreseeable future. IfAs wea ~~are~~result, ~~unable~~if we fail to successfully sell our ~~cloud~~products ~~offerings~~to inone ~~light~~or more of ~~the~~these ~~foregoing~~anticipated ~~risks~~customers ~~and~~in ~~uncertainties~~any particular period or fail to identify additional potential customers, or if such customers purchase fewer of our ~~reputation~~products ~~could~~or ~~suffer~~professional ~~and~~services, defer or cancel orders, fail to renew their license or subscription agreements, or otherwise terminate or reduce their relationship with us, our business, results of operations, ~~could~~and financial condition would be harmed. Additionally, ~~which~~if ~~may~~one ~~cause~~or ~~our~~more ~~stock~~of ~~price~~these anticipated customers enters into or transitions to ~~decline~~a subscription agreement in any particular period, or if we fail to achieve the required performance or acceptance criteria for one or more of this relatively small number of customers, our quarterly and annual results of operations may fluctuate significantly.

WeFurthermore, some of our customers include the world’s largest P&C insurers. These customers have ~~relied~~significant bargaining power when negotiating new licenses or subscriptions or renewals of existing agreements, and ~~expect~~have tothe ~~continue~~ability to ~~rely~~buy onsimilar ~~orders~~products from aother ~~relatively~~vendors ~~small~~or ~~number~~develop ofsuch systems internally. These customers have and may continue to seek advantageous pricing and other commercial and performance terms that may require us to develop additional features in the ~~P&C~~products ~~insurance~~we ~~industry~~sell ~~for~~to athem ~~substantial~~or ~~portion~~add ofcomplexity to our ~~revenue~~customer ~~and~~agreements. ~~ARR~~We have been required to, and may again be required to, reduce the ~~loss~~average ofselling ~~any~~price and ARR of our products, along with agreeing to ramps that delay reaching fully ramped ARR, in response to these ~~customers~~pressures. ~~would~~If ~~significantly~~we ~~harm~~are unable to avoid reducing our ~~business~~average selling prices or ARR, our results of operations could be harmed. In addition, consolidation among P&C insurers may further concentrate our customer base and ~~financial~~increase ~~condition~~the negotiating leverage of our large customers, which could heighten pricing and margin pressures.

Our revenue and ARR are dependent on orders from customers in the P&C insurance industry, which may be adversely affected by worldwide economic, environmental, public health, and political conditions. A relatively small number of customers have historically accounted for a significant portion of our revenue. The composition of our individual top customers has and will vary from year to year. In fiscal years 2023 and 2024, our ten largest customers accounted for 23% and 22% of our revenue, respectively. Additionally, our ten largest customers based on ARR accounted for 22% of total ARR at July 31, 2024. Customers for these metrics are calculated at the parent corporation level, while our total customer count is based on entities that have placed orders for our services or products. While we expect this reliance to decrease over time as our revenue, customer base, and subscription services as a percentage of revenue grows, we expect that we will continue to depend upon a relatively small number of customers for a significant portion of our revenue and ARR for the foreseeable future. As a result, if we fail to successfully sell our products to one or more of these anticipated customers in any particular period or fail to identify additional potential customers or such customers purchase fewer of our products or professional services, defer or cancel orders, fail to renew their license or subscription agreements or otherwise terminate or reduce their relationship with us, our business, results of operations, and financial condition would be harmed. Additionally, if one or more of these anticipated customers enters into or transitions to a subscription agreement in any particular period, or if we fail to achieve the required performance or acceptance criteria for one or more of this relatively small number of customers, our quarterly and annual results of operations may fluctuate significantly.

Our sales and implementation cycles are lengthy and variable, depend upon factors outside our control, and could cause us to expend significant time and resources prior to generating revenue.

The typical sales cycle for our products is lengthy and unpredictable, requires pre-purchase evaluation by a significant number of employees in our customers’ organizations, often involves a significant operational decision by our customers, and could be affected by factors outside of our control. Our sales efforts involve educating our customers about the use and benefits of our products, including the technical capabilities of our products, the potential cost savings achievable by organizations deploying our products, and the benefits and risks associated with cloud-based services. Customers typically undertake a significant evaluation process, which frequently involves not only our products, but also those of our competitors. We spend substantial time, effort, and money in our sales efforts without any assurance that our efforts will produce sales, and our customers have significant negotiating power during the sales process which may result in a lengthy sales cycle and significant contractual complexity. Additionally, we may be unable to predict the size and terms of the initial contract until very late in the sales cycle, which affects our ability to accurately forecast revenue and ARR. In addition, if we commit to include specific features in our base product offering at the request of a customer or group of customers, we may be unable to recognize revenue until the specific features have been delivered with our products or be subject to penalties or costs. Providing this additional functionality may be time consuming and may involve factors that are outside of our control. Customers may also insist that we commit to certain time frames in which systems built around our products will be operational or that once implemented our products will be able to meet certain operational requirements. Our ability to meet such timeframes and requirements may involve factors that are outside of our control, and failure to meet such timeframes and requirements could result in us incurring penalties and costs and/or making additional resource commitments, which would adversely affect our business and results of operations.

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The implementation and testing of our products by our customers typically lasts six to 24 months or longer and unexpected implementation delays and difficulties can occur. Implementing our products typically involves integration with our customers’ and third parties’ systems and creating or updating the digital experience, as well as adding customer and third-party data to our platform. This process can be complex, time consuming, and expensive for our customers and can result in delays in the implementation and deployment of our products. Failing to meet the expectations of our customers during the implementation of our products could result in a loss of customers and negative publicity about us and our products. Such failure could result from deficiencies in our product capabilities, performance issues, or inadequate service engagements by us, our SI partners, or our customers’ employees, the latter two of which are beyond our direct control. The consequences of such failure could include, and have included, monetary credits for current or future service engagements, reduced fees for additional products or upon renewal of existing products, potential reversals of previously recognized revenue, renegotiating existing customers’ contractual terms, and a customer’s refusal to pay their contractually obligated license, subscription, support, or service fees. In addition, time-consuming and delayed implementations may also increase the amount of services personnel we must allocate to the implementation for it to be successful, thereby increasing our costs and adversely affecting our business, results of operations, and financial condition.

Furthermore, our sales and implementation cycles could be interrupted or affected by other factors outside of our control. We have had, and may in the future have, restrictions on travel, which are in accordance with recommendations by the U.S. government, The Centers for Disease Control and Prevention, and other equivalent agencies in the locations in which we operate, and our customers, SI partners, and prospects have likewise enacted their own preventative policies and travel restrictions. Widespread restrictions on travel and in-person meetings have affected and could, in the future, affect services delivery, delay implementations, and interrupt sales activity. We cannot predict the duration or the extent of adverse impacts from pandemics and other global events on our business, results of operations, and financial condition.

We face intense competition in our market, which could negatively impact our business, results of operations, and financial condition and cause our market share to decline.

The market for our products is intensely competitive. The competitors we face in any sale opportunity may change depending on, among other things, the line of business purchasing the software, the application or service being sold, the geography in which the customer is operating, and the size of the insurance carrier to which we are selling. For example, we are more likely to face competition from small independent firms when addressing the needs of small insurers. These competitors may compete on the basis of price, the time and cost required for implementation, custom development, or unique product features or functions. Outside of the United States, we are more likely to compete against vendors that may differentiate themselves based on local advantages in language, market knowledge, and pre-built content applicable to that jurisdiction. We also compete with vendors of horizontal software products that may be customized to address needs of the P&C insurance industry.

Additionally, many of our prospective customers operate firmly entrenched legacy systems, some of which have been in operation for decades. Our implementation cycles may be lengthy, variable, and require the investment of significant time and expense by our customers. These expenses and associated operating risks attendant on any significant process re-engineering and new technology implementation, may cause customers to prefer maintaining legacy systems. Also, maintaining these legacy systems may be so time consuming and costly for our potential customers that they do not have adequate resources to devote to the purchase and implementation of our products. We also compete against technology consulting firms that either helped create such legacy systems or may own, in full or in part, subsidiaries that develop software and systems for the P&C insurance industry. Further, as machine learning, AI technologies, including generative AI technologies, and automated decision-making technologies (collectively, “AI technologies”) continue to evolve, our existing and potential customers may leverage evolving AI technologies to develop their own solutions that could reduce or eliminate the need for our solutions.

As we expand our product portfolio, we may begin to compete with software and service providers we have not competed against previously. Such potential competitors offer data and analytics tools that may, in time, become more competitive with our offerings.

If our competitors’ products, services, or technologies become more accepted than our solutions, if they are successful in bringing their products or services to market earlier than we are, if their products or services are more technologically capable than ours (including, without limitation, as a result of new or better use of evolving AI technologies, such as generative AI), or if our customers or potential customers replace our solutions with custom-built software, then our revenue could be adversely affected.

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We expect the intensity of competition to remain high in the future, as the amount of capital invested in current and potential competitors, including insurtech companies, has increased significantly in recent years. As a result, our competitors or potential competitors may develop improved product or sales capabilities, or even a technology breakthrough that disrupts our market. Continuing intense competition could result in increased pricing pressure, increased sales and marketing expenses, and greater investments in research and development, each of which could negatively impact our profitability. In addition, the failure to increase, or the loss of, market share would harm our business, results of operations, financial condition, and/or future prospects. Our larger current and potential competitors may be able to devote greater resources to the development, promotion, and sale of their services and products than we can devote to ours, which could allow them to respond more quickly than we can to new technologies and changes in customer needs, thus leading to their wider market acceptance. We may not be able to compete effectively and competitive pressures may prevent us from acquiring and maintaining the customer base necessary for us to increase our revenue and profitability.

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In addition, the insurance industry is evolving rapidly, and we anticipate the market for cloud-based solutions will become increasingly competitive. If our current and potential customers move a greater proportion of their data and computational needs to the cloud, new competitors may emerge that offer services either comparable or better suited than ours to address the demand for such cloud-based solutions, which could reduce demand for our offerings. To compete effectively we will likely be required to increase our investment in research and development, as well as the personnel and third-party services required to improve reliability and security and lower the cost of delivery of our cloud-based solutions. New competitors are able to develop cloud-based solutions without the cost of maintaining or migrating existing solutions and satisfying existing customer requirements, which may allow them to introduce new services and products more quickly and on more efficient technologies than us. This may increase our costs more than we anticipate and may adversely impact our results of operations.

Our current and potential competitors may also establish cooperative relationships among themselves or with third parties to further enhance their resources and offerings. Current or potential competitors may be acquired by other vendors or third parties with greater available resources. As a result of such acquisitions, our current or potential competitors might be more able than we are to adapt quickly to new technologies and customer needs, to devote greater resources to the promotion or sale of their products, to initiate or withstand substantial price competition, or to take advantage of emerging opportunities by developing and expanding their product offerings more quickly than we can. Additionally, they may hold larger portfolios of patents and other intellectual property rights as a result of such relationships or acquisitions. If we are unable to compete effectively with these evolving competitors for market share, our business, results of operations, and financial condition could be materially and adversely affected.

Failure to manage our expanding operations effectively could harm our business.

We have experienced consistent growth and expect to continue toexpanding ~~expand~~ our operations, including increasing the number of employees and broadening the locations and scope of our international operations. In particular, we have been expanding and plan to continue to expand our operations in India. Additionally, we operate a hybrid work environment in which a large portion of our workforce works either in-person on a part-time basis or remotely on a permanent basis, which brings challenges to managing our business and workforce. This expansion, ~~and~~combined with the complexity of managing a hybrid ~~work~~and ~~environment~~geographically distributed workforce, has placed, and will continue to place, a significant strain on our ~~operational~~managerial, ~~and~~administrative, operational, financial ~~resources~~ and ~~our~~other ~~personnel~~resources. ToFurther, ~~manage~~ our ~~anticipated~~ability ~~future~~to ~~operational~~expand ~~expansion~~geographically ~~effectively~~depends, wein ~~must~~large ~~continue~~part, toon ~~maintain~~our ~~and~~ability ~~may need~~ to ~~enhance~~attract, ~~our~~retain, ~~information technology~~ and ~~cybersecurity~~integrate ~~infrastructure~~managers ~~and~~with ~~financial~~the ~~and~~appropriate ~~accounting~~skills ~~systems~~to ~~and~~lead ~~controls,~~the ~~and~~local ~~manage~~business ~~expanded operations~~ and employees ~~in geographically distributed locations~~. ~~Our growth could require significant capital expenditures and may divert financial resources from other projects~~Similarly, ~~such~~our asprofitability ~~the~~depends ~~development~~on ofour ~~new,~~ability ~~enhanced,~~to oreffectively ~~more~~utilize ~~secure~~personnel ~~products~~with ~~or investments in cloud operations. If we increase~~ the ~~size~~right mix of ~~our~~skills ~~organization~~and ~~without~~experience ~~experiencing~~to anperform ~~increase~~services infor ~~sales of~~ our ~~products~~customers, weincluding ~~will~~our ~~experience~~ability ~~reductions~~to intransition ~~our~~employees ~~gross~~to ~~and~~new ~~operating~~assignments ~~margins~~on ~~and~~a ~~net~~timely ~~income~~basis. If we are unable to effectively ~~manage~~deploy our ~~expanding~~employees ~~operations~~globally oron ~~hybrid~~a ~~work~~timely ~~environment,~~basis ~~our~~to ~~expenses~~fulfill ~~may~~the ~~increase~~needs ~~more~~of ~~than~~our ~~expected~~customers, our ~~revenue~~reputation could ~~decline~~suffer orand ~~grow~~our ~~more~~ability ~~slowly~~to ~~than~~attract ~~expected,~~new ~~and~~customers we may be ~~unable to implement our business strategy~~harmed.

~~Our~~To ~~large~~manage ~~customers~~our ~~have~~anticipated ~~substantial~~future ~~negotiating~~operational ~~leverage~~expansion effectively, ~~which~~we ~~may~~must ~~require~~continue ~~that~~to wemaintain ~~agree~~and may need to ~~terms~~enhance our information technology and ~~conditions~~cybersecurity ~~that~~infrastructure ~~result~~and infinancial ~~increased~~and ~~cost~~accounting ofsystems ~~sales~~and controls, ~~decreased~~and ~~revenue,~~manage expanded operations and ~~lower~~employees ~~average~~in ~~selling~~geographically ~~prices~~distributed locations. Our growth could require significant capital expenditures and ~~gross~~may ~~margins~~divert financial resources from other projects, ~~all~~such as the development of ~~which~~new, ~~could~~enhanced, ~~harm~~or more secure products or investments in cloud operations. If we increase the size of our ~~results~~organization without experiencing an increase in sales of our products, we will experience reductions in our gross and operating margins and net income. If we are unable to effectively manage our expanding operations or hybrid work environment, our expenses may increase more than expected, our revenue could decline or grow more slowly than expected, and we may be unable to implement our business strategy.

Some of our customers include the world’s largest P&C insurers. These customers have significant bargaining power when negotiating new licenses or subscriptions or renewals of existing agreements, and have the ability to buy similar products from other vendors or develop such systems internally. These customers have and may continue to seek advantageous pricing and other commercial and performance terms that may require us to develop additional features in the products we sell to them or add complexity to our customer agreements. These customers may also delay making payments under existing agreements, or at renewal, in an attempt to obtain more favorable terms from us. We have been required to, and may again be required to, reduce the average selling price and ARR of our products, along with agreeing to steeper ramps that delay reaching fully

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ramped ARR, in response to these pressures. If we are unable to avoid reducing our average selling prices or ARR, our results of operations could be harmed.

Issues in the development and use of AI, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations.

We use, ~~and are continuously incorporating, machine learning and~~ AI technologies in our offerings and business, and we are ~~making~~continuing to make investments in expanding our AI capabilities in our products, professional services, and tools, including ~~the~~by ~~ongoing~~enhancing ~~deployment~~existing or developing new product features and ~~improvement~~functionality ofthat ~~existing~~use ~~machine~~or ~~learning~~incorporate ~~and~~AI technologies. AI technologies, asare ~~well~~complex asand ~~developing~~are ~~new~~rapidly ~~product~~evolving. ~~features~~We ~~using~~expect ~~generative~~that ~~and~~increased ~~other~~investment will be required to continuously improve our use of AI technologies. AIAs ~~technologies~~with ~~are~~many ~~complex~~technological innovations, ~~and~~there ~~generative~~are AIsignificant ~~technologies,~~risks involved in ~~particular~~developing, ~~are~~maintaining ~~rapidly~~and ~~evolving.~~deploying Wethese ~~face~~technologies ~~significant~~and ~~competition~~there ~~from~~can ~~other~~be ~~companies~~no asassurance ~~well~~that asthe anusage ~~evolving~~of ~~regulatory~~or ~~landscape~~our investments in ~~relation~~such totechnologies ~~these~~will ~~technologies.~~always ~~The~~enhance ~~introduction~~our ofproducts AIor ~~technologies~~services or be beneficial to our business, including ~~generative~~our efficiency or profitability. The use of AI, ~~into~~technologies in new or existing ~~products~~offerings may result in new or enhanced governmental or regulatory scrutiny, litigation, confidentiality or ~~security~~cybersecurity risks, privacy concerns, ethical challenges, or other complications that could adversely affect our business, reputation, or financial results.

The complexity of our products that incorporate machine learning and AI technologies could result in unforeseen delays or expenses, or undetected defects, bugs, or ~~security~~new or unknown cybersecurity risks, vulnerabilities, and challenges, which may harm the market acceptance of new products, damage our reputation with current or prospective customers, cause significant remediation expenses, and may harm our business, results of operations, and financial condition. Our products may contain defects when they are first introduced or as new versions or enhancements are released, or their release may be delayed due to unforeseen difficulties during development. Additionally, our products may have undiscovered vulnerabilities that could be exploited by hackers or other malicious actors, potentially exposing our customers to adverse consequences.

The intellectual property ownership and license rights, including without limitation, copyright, surrounding AI technologies generally, and generative AI technologies specifically, has not been fully addressed by competent legal tribunals or applicable laws or regulations. Further, the use or adoption of third-party AI technologies, including generative AI technologies, into our products may result in exposure to claims of copyright infringement or other intellectual property-related causes of action.17

~~The~~Table ~~uncertainty around new and emerging AI technologies, such as generative AI, may require additional investment in the development and maintenance~~ of proprietary datasets and machine learning models, development of new approaches and processes to provide attribution or remuneration to creators of training data, and development of appropriate protections and safeguards for handling the use of customer data with such technologies, which may be costly and could impact our expenses if we decide to expand AI technologies, including generative AI, into our product offerings. AI technologies, including without limitation generative AI, may create content that appears facially correct but is factually inaccurate or flawed. Our customers, employees, or others may rely on or use such factually incorrect or flawed content to their detriment, which may expose us to brand or reputational harm, competitive harm, and/or legal liability. In all events, the development, marketing and use of AI technologies, including, in particular, generative AI, presents emerging ethical and social issues, and if we enable or offer solutions that draw scrutiny or controversy due to their perceived or actual impact on customers or on society as a whole, we may experience brand or reputational harm, competitive harm, additional costs, and/or legal liability. If our AI development, deployment, content labeling or governance is ineffective or inadequate, it may result in incidents that impair the public acceptance of AI solutions or cause harm to individuals, customers or society, or result in our offerings not working as intended or producing unexpected outcomes.Contents

~~Further,~~The ~~the~~uncertainty ~~development~~around ofnew ~~next-generation~~and ~~solutions~~emerging ~~that~~AI ~~utilize~~technologies ~~new~~may require additional investment in the development and ~~advanced~~maintenance ~~features,~~of ~~including~~proprietary AIdatasets and machine learning models, ~~involves~~development ~~making~~of ~~predictions~~new ~~regarding~~approaches ~~the~~and ~~willingness~~processes ofto ~~the~~provide ~~market~~attribution toor ~~adopt~~remuneration ~~such~~to ~~technologies~~creators ~~over~~of ~~legacy~~training ~~solutions.~~data, Weand ~~may~~development beof ~~required~~appropriate toprotections ~~commit~~and ~~significant~~safeguards ~~resources~~for tohandling ~~developing~~the ~~new~~use ~~products~~of ~~before~~customer ~~knowing~~data ~~whether~~with such ~~investment~~technologies, ~~will~~which ~~result~~may inbe ~~products~~costly ~~that~~and ~~the~~could ~~market~~impact ~~will~~our ~~accept~~expenses.

AI technologies may create content that appears facially correct but is factually inaccurate or flawed. Our customers, employees, or others may rely on or use such factually incorrect or flawed content to their detriment, which may expose us to brand or reputational harm, competitive harm, and/or legal liability. In all events, the development, marketing and use of AI technologies presents emerging ethical and social issues, and if we enable or offer solutions that draw scrutiny or controversy due to their perceived or actual impact on customers or on society as a whole, we may experience brand or reputational harm, competitive harm, additional costs, and/or legal liability. If our AI technologies development, deployment or governance is ineffective or inadequate, it may result in incidents that impair the public acceptance of AI solutions or cause harm to individuals, customers or society, or result in our offerings not working as intended or producing unexpected outcomes.

Further, the development of next-generation solutions that utilize new and advanced features using or incorporating AI technologies involves making predictions regarding the willingness of the market to adopt such technologies over legacy solutions. We may be required to commit significant resources to developing new products before knowing whether such investment will result in products that the market will accept.

We may fail to set the optimal pricing and packaging of our products, which could negatively impact our growth strategy and ability to effectively compete in the market.

We may face challenges in selling our solutions to insurers that have internally developed their own proprietary software solutions, and we face competition from emerging and established vendors. As a result, these companies may offer lower prices, additional products or services, or other incentives that may impact our ability to maintain our prices.

The market for our products is constantly evolving, and our pricing and packaging decisions are made based on the best information available at the time, but may change significantly in the future from our expectations. We are continually analyzing and refining our pricing and packaging models to adapt to this dynamic environment. For example, we may need to change our pricing in future periods in response to market demands, the inflation, tariffs, and interest rate environment, or increased costs. Our contracts are often multi-year in duration and our inability to foresee changing events could impact the profitability of certain contracts. Further, as competitors introduce new products that compete with ours or reduce their prices, we may be unable to attract new customers or retain existing customers based on our historical pricing. As we expand internationally, we also must determine the appropriate price to enable us to compete effectively in each market. In addition, if our mix or bundle of products sold changes, then we may need to, or choose to, revise our pricing. As a result, we may be required or choose to reduce our prices or change our pricing model, which could harm our business, results of operations, and financial condition. In addition, we cannot predict whether our current or prospective customers, or the market in general, will accept these changes. If these adjustments do not gain acceptance, our business and operational results could be adversely affected. Failure to identify an optimal pricing and packaging strategy may harm our business and operational outcomes. Should customers reject our new or modified pricing plans, we may face increasing challenges in attracting new customers and retaining existing ones, particularly if we apply new pricing models to current customer subscriptions.

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~~costs.~~If ~~Our~~we ~~contracts~~ are often multi-year in duration and our inability to foresee changing events could impact the profitability of certain contracts. Further, as competitors introduce new products that compete with ours or reduce their prices, we may be unable to ~~attract new customers or retain existing customers based on our historical pricing. As we~~ expand ~~internationally,~~adoption weof ~~also must determine the appropriate price to enable us to compete effectively in each market. In addition, if~~ our ~~mix~~cloud-based orsubscription ~~bundle of products sold changes~~offerings, ~~then we may need to,~~ or ~~choose~~if ~~to, revise our pricing. As a result,~~ we ~~may~~fail ~~be required or choose~~ to ~~reduce~~meet ~~our~~stipulated ~~prices~~service ~~or change our pricing model~~levels, ~~which could harm~~ our ~~business,~~ results of operations, and financial condition. In addition, we cannot predict whether our current or prospective customers, or the market in general, will accept these changes. If these adjustments do not gain acceptance, our business and operational results could be ~~adversely affected~~harmed. Failure to identify an optimal pricing and packaging strategy may harm our business and operational outcomes. Should customers reject our new or modified pricing plans, we may face increasing challenges in attracting new customers and retaining existing ones, particularly if we apply new pricing models to current customer subscriptions.

To address demand trends in the P&C insurance industry, we offer customers the use of our software products primarily through a cloud-based offering sold on a subscription basis. Our subscription business model has required, and will continue to require, a considerable investment of technical, operational, financial, legal, and sales resources. Our software and cloud services involve the storage and transmission of customer data, including in some cases, personal data, and security incidents or breaches could result in the loss of this information, which in turn could result in litigation, breach of contract claims, indemnity obligations, harm to our reputation, and other liabilities for us. Our cloud offerings will continue to be the focus of existing resources, require us to hire additional resources, and increase costs, especially in cost of subscription and support revenue, cost of services revenue, and research and development, in any given period. We may not be able to efficiently scale such investments to meet customer demand and expectations, which may impact our long-term growth and results of operations. Further, the increase in some costs associated with our cloud services, such as the cost of third-party infrastructure in which we rely to host our subscription services, may be difficult to predict over time. Furthermore, we may assume greater responsibilities for implementation of subscription services due to our operating and maintaining the cloud environment for our customers. As a result, we may face risks associated with new and complex implementations or migrations, the cost of which may differ from original estimates. Our subscription contracts also contain penalty clauses, for matters such as failing to meet stipulated service levels or other contractual provisions. Should these penalties be triggered, our results of operations may be adversely affected. These penalties and costs could take the form of monetary credits for current or future service engagements, reduced fees for additional services or products or upon renewal of existing agreements, and a customer’s renegotiation or refusal to pay its contractually obligated subscription or service fees.

Revenue under our cloud-based subscription model is generally recognized ratably over the term of the contract. Ratable revenue recognition results in lower revenue in the initial period of the customer agreement. This effect on recognized revenue may be magnified due to the concentration of our orders in the fourth fiscal quarter. Additionally, the timing of our customers’ decision to transition from self-managed licenses to cloud-based subscription services could negatively affect our ability to forecast the timing and amount of our revenue in any period.

While market acceptance of our cloud-based solutions has increased, our future growth depends on our ability to further expand adoption among existing and new customers. Factors such as cost, security, reliability, performance, customer preference, perceived value associated with such offerings, public concerns regarding privacy, and the enactment of restrictive laws or regulations could continue to affect the pace and extent of this expansion. If adoption or renewal of our cloud-based solutions does not grow as expected, we could experience reduced customer purchases, reduced renewal rates, lower ARR, and decreased revenue, any of which will adversely affect our business, results of operations, or financial condition.

We are continually updating our existing products and developing new products in an effort to offer customers greater choices on how they utilize our software. As our business practices in this area develop and evolve over time, we may be required to revise our current subscription agreements, which may result in revised terms and conditions that impact how we recognize revenue and the costs and risks associated with these offerings. Whether our product development efforts or business model will prove successful and accomplish our business objectives is subject to numerous uncertainties and risks, including, but not limited to, customer demand, our ability to further develop, manage, and scale infrastructure, our ability to include functionality and usability in such offerings that address customer requirements, our customers’ ability to successfully migrate to and implement our subscription services, tax and accounting implications, and our costs.

In addition, the metrics we and our investors use to evaluate our business model may evolve over the course of time as significant trends emerge. It may be difficult, therefore, to accurately determine the impact on our business on a contemporaneous basis, or to clearly communicate the appropriate metrics to our investors. If we are unable to expand adoption of our cloud offerings in light of the foregoing risks and uncertainties, our reputation could suffer and our results of operations could be harmed, which may cause our stock price to decline.

Our business depends on customers renewing and expanding their license, support, and subscription contracts for our products. A decline in our customer renewals and expansions could harm our future results of operations.

Our customers have no obligation to renew their term licenses or subscriptions after their contract period expires, and these licenses and subscriptions, if renewed, may be done so on less favorable terms. Moreover, under certain circumstances, our customers have the right to cancel their licenses or subscriptions before they expire. We may not accurately predict future trends in customer renewals. Our customers’ renewal rates may fluctuate or decline because of several factors, including their satisfaction or dissatisfaction with our products, the prices of our products, the prices of products offered by our competitors, reduction in our customers’ business including their DWP, reductions in our customers’ spending levels due to the macroeconomic environment or other factors, or the sale of their operations to a buyer that is not a current customer. Additionally, customers may delay making payments under existing agreements, or at renewal, in an attempt to obtain more favorable terms from us.

Also, in some cases, our customers have a right to exercise a perpetual buyout of their term licenses at the end of the initial contract term, which if exercised would eliminate future term license revenue. If our customers do not renew their term licenses or subscriptions for our solutions or renew on less favorable terms, our revenue may decline or grow more slowly than expected and our profitability may be harmed.19

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Also, in certain limited cases, our customers have a right to exercise a perpetual buyout of their term licenses at the end of the initial contract term, which, if exercised, would eliminate future term license revenue. If our customers do not renew their term licenses or subscriptions for our solutions or renew on less favorable terms, our revenue may decline or grow more slowly than expected and our profitability may be harmed.

Seasonal sales patterns may cause significant fluctuations in our results of operations and cash flows and may prevent us from achieving our quarterly or annual forecasts, which may cause our stock price to decline.

We generally see increased new orders in our fourth fiscal quarter, which is the quarter ending July 31, due to efforts by our sales team to achieve annual incentives. As a result, a significantly higher percentage of our annual license revenue and cash receipts have historically been recognized in our fourth fiscal quarter. Since a substantial majority of our license revenue has annual renewals after the initial term of the contract, we expect to continue to experience this seasonality effect in subsequent years. Because of the upfront nature of revenue recognition for new multi-year term licenses and multi-year term license renewals, any quarter in which a significant agreement of this nature is signed, renewed, cancelled, or not renewed when scheduled to do so may be impacted.

We currently anticipate that sales of, and revenue from, subscription services will continue to increase in the future. Subscriptions are recognized ratably over the term of the agreement after provisioning of the service. Over time, this may reduce the impact of our historic revenue seasonality, but in the near term the introduction of proportionally more subscription services into our revenue stream, together with their delayed and ratable recognition, will likely impact quarter-over-quarter and year-over-year revenue growth comparisons. Cash flow expectations and comparisons will most likely remain concentrated in the fourth fiscal quarter and could also be impacted because of the ramped nature of the annual installments of these multi-year subscription services arrangements. Additionally, ARR, which reflects the annualized recurring value of active customer contracts at the end of a reporting period, will be impacted by the seasonality of new sales orders and ramped nature of annual installments over the initial term, even if the revenue is recognized ratably.

Our quarterly growth in revenue or ARR also may not coincide with new orders or cash flows in a given quarter, which could mask the impact of seasonal variations. This mismatch is primarily due to the following reasons:

•our subscription arrangements are recognized ratably and only a portion, if any, of the revenue from an order is recognized in the same fiscal period of the order;

•subscription arrangements generally have ramped invoicing schedules over the initial term, which affects ARR and cash flows, but revenue is recognized ratably over the initial term;

•our term license agreements and multi-year term license renewals ~~generally~~ have annual billing arrangements even though revenue is recognized upfront for the entire committed term;

•as customers enter into a subscription agreement to migrate from an existing term license agreement or as we invest in certain cloud implementations to assist our customers with their migration to our cloud services, the timing of revenue recognition may be impacted by the allocation of revenue between different performance obligations;

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timing of revenue recognition may be impacted by the allocation of revenue between different performance obligations;

•we may enter into agreements with future product delivery requirements, specified terms for product upgrades or functionality, acceptance terms, early termination rights, or unconditional return rights, which may require us to delay revenue recognition for a period of time; and

•revenue recognition may not occur in the period when the order is placed due to certain revenue recognition criteria not being met, such as delivery of the software or providing access to the subscription services.

Additionally, seasonal patterns may be affected by the timing of particularly large transactions and the number of renewals in a given quarter. Seasonal and other variations may cause significant fluctuations in our revenue, ARR, results of operations and cash flows, may make it challenging for an investor to predict our performance on a quarterly basis, and may prevent us from achieving our quarterly or annual forecasts or meeting or exceeding the expectations of research analysts or investors, which in turn may cause our stock price to decline.

If we are unable to develop, introduce, and market new and enhanced versions of our products, we may be put at a competitive disadvantage.

Our success depends on our continued ability to develop, introduce, and market new and enhanced versions of our products to meet evolving customer requirements. Because our products are complex and require rigorous testing, new features, new functionality, and updates to our existing products can take significant time and resources to develop and bring to market. As we expand internationally, our products must be modified and adapted to comply with regulations and other requirements of the countries in which our customers do business. Additionally, market conditions may dictate that we change the delivery method of our products or the technology platform underlying our existing products or that new products be developed on different technology platforms, potentially adding material time and expense to our development cycles. The nature of these development cycles may cause us to ~~experience delays between the time we incur expenses associated with research and development and the time we generate revenue, if any, from such expenses.~~

If we fail to develop new products, enhance our existing products, or manage our products in the cloud, our business could be adversely affected, especially if our competitors are able to introduce products with enhanced functionality in the cloud. It is critical to our success for us to anticipate changes in technology, industry standards and regulations, and customer requirements and to successfully introduce new, enhanced, and competitive products to meet our customers’ and prospective customers’ needs on a timely basis. We have invested and intend to increase investments in research and development and cloud operations to meet these challenges. Revenue may not be sufficient to support the future product development that is required for us to remain competitive. If we fail to develop products in a timely manner that are competitive in technology and price or develop products that fail to meet customer demands, our market share will decline and our business and results of operations could be harmed. If our development efforts do not develop services, products or features that our customers find valuable, then we might incur impairment charges related to our capitalized software development costs.20

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experience delays between the time we incur expenses associated with research and development and the time we generate revenue, if any, from such expenses.

We operate a hybrid in-person and remote workforce, which will subject us to certain operational challenges and risks and potential harm to our business.

We, and many of our third-party providers, operate a hybrid work environment in which a significant portion of our workforce works either in-person on a part-time basis or remotely on a permanent basis. As a result, we are subject to the challenges and risks of having a remote and hybrid workforce. For example, certain security systems in homes or other remote workplaces may be less secure than those used in our offices, which may subject us to increased security risks, including cybersecurity-related events or incidents, and expose us to risks of data or financial loss and associated disruptions to our business operations. Members of our workforce who work remotely may not have access to technology that is as robust as that in our offices, which could cause the networks, information systems, applications, and other tools available to those remote workers to be more limited or less reliable than in our offices. We may also be exposed to risks associated with the locations of remote workers, including compliance with local laws and regulations or exposure to compromised internet infrastructure. Allowing members of our workforce to work remotely may create intellectual property risk if employees create intellectual property on our behalf while residing in a jurisdiction with unenforced or uncertain intellectual property laws. Further, if employees fail to inform us of changes in their work location, we may be exposed to additional risks without our knowledge. Hybrid in-person as well as remote working may also subject us to other operational challenges and risks. For example, hybrid working arrangements may adversely affect our ability to recruit and retain personnel who prefer a fully remote or fully in-person work environment. Operating our business with both remote and in-person workers, or workers who work in flexible locations and on flexible schedules, could have a negative impact on our corporate culture, decrease the ability of our workforce to collaborate and communicate effectively, decrease innovation and productivity, or negatively affect workforce morale and retention rates. In addition, we expect to incur costs related to a hybrid workforce including, among other things, facilitating permanent remote work for a portion of our workforce and updating our offices to offer more collaborative workspaces. If we are unable to effectively operate a hybrid workforce, manage the cybersecurity and other risks of remote work, and maintain our corporate culture and workforce morale, our business could be harmed or otherwise negatively impacted.

Real or perceived errors or failures in our products and professional services, including implementation and cloud support services, may affect our reputation, cause us to lose customers, and reduce sales and renewal rates, which may harm our business and results of operations and subject us to liability for breach of warranty claims.

Because we offer complex products, undetected errors or failures may exist or occur, especially when products are first introduced or when new versions or updates are released. Our products are often ~~installed and~~ used in large-scale computing environments with different operating systems, system management software, and equipment and networking configurations, which may ~~cause~~result in errors or failures ~~in our products~~ or ~~may~~ expose undetected errors, failures, or bugs in our products. Despite extensive testing by us, we may not identify all errors, failures, or bugs in new products or releases until after commencement of commercial sales or installation. InAs ~~the~~is ~~past,~~common wewith ~~have~~complex ~~discovered~~ software, errors, failures, ~~and~~or bugs inmay ~~some~~be ofdiscovered in our offerings after their introduction. While we have implemented, and continually improve, a breadth of industry standard technology controls designed to ensure system stability and availability, we may introduce errors, design flaws, software bugs, and other issues into the environment, and fail to remediate them in a timely manner, which may cause serious or prolonged service interruptions to our customers. Additionally, our Guidewire cloud offerings rely on third-party services including, but not limited to, AWS and Okta. Any material disruption, failure or slowdown in these services or the systems of third parties who we depend upon could cause outages or delays in our products, which could harm our reputation and adversely affect our results of operations.

We provide our customers with upfront estimates regarding the duration, resources, and costs associated with the migration and implementation of our products. Failure to meet these upfront estimates and the expectations of our customers could result from our product capabilities or professional service engagements performed by us, our SI partners, or our customers’ employees, the latter two of which are beyond our direct control. The consequences could include, and have included, monetary credits for current or future service engagements, reduced fees for additional products or upon renewal of existing products, renegotiation or modification of existing contracts that could potentially result in reversals of previously recognized revenue, or a customer’s refusal to pay its contractually obligated fees. In addition, time-consuming or difficult migrations and implementations may also increase the amount of services personnel we must allocate to the project, potentially without commensurate compensation, thereby increasing our costs, lowering our services margin, and adversely affecting our business, results of operations, and financial condition.

The license, subscription, and support of our products creates the risk of significant liability claims against us. Our license and subscription agreements with our customers contain provisions designed to limit our exposure to potential liability claims. It is possible, however, that the limitation of liability provisions contained in such agreements may not be enforced as a result of international, federal, state, and local laws or ordinances or unfavorable judicial decisions. Breach of warranty or damage liability, or injunctive relief resulting from such claims, could harm our results of operations and financial condition.21

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services personnel we must allocate to the project, potentially without commensurate compensation, thereby increasing our costs, lowering our services margin, and adversely affecting our business, results of operations, and financial condition.

Our ability to sell our products is highly dependent on the quality of our professional services and technical support services and the support of our SI partners, and the failure of us or our SI partners to offer high-quality professional services or technical support services could damage our reputation and adversely affect our ability to sell our products to new customers and renew agreements with our existing customers.

If we or our SI partners do not effectively assist our customers in deploying our products, successfully help our customers quickly resolve post-deployment issues, assist our customers in migrating from self-managed licenses to subscription services, and provide effective ongoing support, our ability to renew existing agreements and sell additional products to existing customers would be adversely affected and our reputation with potential customers could be damaged. Once our products are deployed and integrated with our customers’ existing information technology environment, our customers may depend on our technical support services and/or the support of SI partners or internal resources to resolve any issues relating to our products. High-quality support is critical for the continued successful marketing and sale of our products. In addition, as we continue to expand our operations internationally, our support organization will face additional challenges, including those associated with delivering support, training, and documentation in multiple languages. Many enterprise customers require higher levels of support than smaller customers. If we fail to meet the requirements of our larger customers, it may be more difficult to sell additional products to these customers or to transition existing license customers to subscription services, a key strategy for the growth of our revenue and profitability. In addition, as we further expand our cloud-based products, our professional services, cloud operations and support organizations will face new challenges, including hiring, training, and integrating a large number of new personnel with experience in delivering high-quality services and support for cloud-based offerings. Further, as we continue to rely on ~~SIs~~SI partners to provide deployment, migration, and on-going services, our ability to ensure a high level of quality in addressing customer issues and providing a maintainable and efficient cloud environment could be diminished as we may be unable to control the quality or timeliness of the implementation and support of our products by our SI partners. Our failure to maintain high-quality implementation and support services, or to ensure that SIs provide the same, could have a material adverse effect on our business, results of operations, financial condition, and growth prospects.

The use of AI by our workforce may present risks to our business.

Our workforce is exposed to and ~~uses~~is encouraged to use AI technologies for certain tasks related to our business. We have guidelines and policies specifically directed at the use of AI tools in the workplace. Nevertheless, the use of these AI tools, whether authorized or unauthorized, by our workforce, poses potential risks relating to the protection of data, including cybersecurity risk, exposure of our proprietary confidential information to unauthorized recipients, and the misuse of our or third-party intellectual property. Use of AI ~~technology~~technologies by our workforce, even when used consistently with our guidelines, may result in allegations or claims against us related to violation of third-party intellectual property rights, unauthorized access to or use of proprietary information, or failure to comply with open source software requirements. In addition, our employees may use AI tools for various ~~design and engineering~~ tasks, such as writing code and building content, and these AI technology tools may produce responses that appear facially correct but that are factually inaccurate or flawed, ~~responses~~which ~~that~~ could lead to errors in our decision-making, solution development, or other business activities, ~~which~~and ~~could~~ have a negative impact on our business, operating results and financial condition. Our ability to mitigate these risks will depend on our continued effective training, monitoring and enforcement of appropriate policies, guidelines and procedures governing the use of AI technology, and compliance by our workforce.

~~Revenue mix~~Further, aswhile ~~well~~use asof ~~declines~~AI intools to develop software code makes our ~~subscription~~development ~~and~~process ~~support~~more ~~gross~~efficient, ~~margin~~AI technologies have sometimes generated content that is “substantially similar” to proprietary or ~~our~~open ~~services~~source ~~gross~~code ~~margin~~on which the AI tool was trained. If the AI technologies we use generate code that is too similar to other proprietary code, or to software processes that are protected by patent, we could ~~adversely~~be ~~affect~~subject ~~our~~to ~~overall~~intellectual ~~gross~~property ~~margin~~infringement claims. We may also not be able to anticipate and ~~profitability~~detect security vulnerabilities in such AI generated software code. If our tools generate code that is too similar to open source code, we risk losing protection of our own proprietary code that is commingled with such code. Finally, to the extent we use third-party AI technologies to develop software code, the terms of use of these tools may state that the third-party provider retains rights in the generated code.

Our subscription and support revenue was 56% and 48% of total revenue for fiscal years 2024 and 2023, respectively. Our subscription and support revenue produces lower gross margins than our license revenue. The gross margin of our subscription and support revenue was 63% and 51% for fiscal years 2024 and 2023, respectively, while the gross margin for license revenue was 98% and 98% for fiscal years 2024 and 2023, respectively. We expect that subscription revenue will continue to increase as a percentage of total revenue as we contract with new cloud customers and existing customers migrate from term licenses to subscription services. Additionally, we are incurring expenses to operate our cloud services and manage our cloud operations which may not result in an improvement of our subscription and support gross margin. These trends, along with other factors, some of which may be beyond our control, may adversely affect our overall gross and operating margins. These other factors include the percentage of new customers that enter into subscription services agreements as compared to term license agreements, the revenue impact of allocating total contract consideration between license revenue and subscription and support revenue when existing customers transition from term license to subscription services agreements, investments in certain cloud implementations to assist our customers with their migration to our cloud services, continued growth and efficiency of our cloud operations and technical support teams, and the impact on the global economy as a result of economic volatility, inflation, or other global events and disasters.22

Further, our services revenue was 18% and 23% of total revenue for fiscal years 2024 and 2023, respectively. Our services revenue produces lower gross margin than either our license revenue or our subscription and support revenue. The gross margin

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ofRevenue ~~our services revenue was negative in both fiscal years 2024 and 2023. If we experience an increase in the percentage of total revenue represented by services revenue~~mix, ~~due~~as towell ~~acquisitions~~as ordeclines ~~other factors, such increase could reduce our overall gross and operating margins. Fluctuation~~ in our ~~services~~subscription ~~revenue can result from several factors, some of which may be beyond our control, including change in customer demand for our services team’s involvement in the implementation of~~ and ~~migration~~support togross ~~new~~margin ~~products, the rates we charge~~ or ~~discounts we offer for~~ our services, ~~our~~gross ability to bill our customers for all time incurred to complete a project, the extent and quality of implementations and migrations provided by our SI partners, the extent to which we subcontract services to those SI partners, and the impact on the global economy as a result of economic volatility, inflation, or other global events and disasters. Additionally, the failure to improve, or the erosion of, our services margin, ~~whether due to discounts related to encouraging customers to enter into cloud agreements or otherwise, particularly in combination with any increase in services revenue,~~ could adversely affect our overall gross ~~and operating margins. Our services~~ margin ~~may erode if we hire~~ and train additional services personnel to support cloud-based services or markets prior to having customer engagements, if we make investments in customer migrations from self-managed term licenses to subscription services, if we enter into fixed fee services arrangements, if our services personnel are underutilized, if we subcontract out services without an adequate markup, or if we require additional personnel on unexpectedly difficult projects to ensure customer success, perhaps without receiving commensurate compensationprofitability.

Our subscription and support revenue was 61% and 56% of total revenue for fiscal years 2025 and 2024, respectively. Our subscription and support revenue produces lower gross margins than our license revenue. The gross margin of our subscription and support revenue was 68% and 63% for fiscal years 2025 and 2024, respectively, while the gross margin for license revenue was 99% and 98% for fiscal years 2025 and 2024, respectively. We expect that subscription revenue will continue to increase as a percentage of total revenue as we contract with new cloud customers and existing customers migrate from term licenses to subscription services. Additionally, we are incurring expenses to operate our cloud services and manage our cloud operations which may not result in an improvement of our subscription and support gross margin. These trends, along with other factors, some of which may be beyond our control, may adversely affect our overall gross and operating margins. These other factors include the percentage of new customers that enter into subscription services agreements as compared to term license agreements, the revenue impact of allocating total contract consideration between license revenue and subscription and support revenue when existing customers transition from term license to subscription services agreements, investments in certain cloud implementations to assist our customers with their migration to our cloud services, continued growth and efficiency of our cloud operations and technical support teams, and the impact on the global economy as a result of economic volatility, inflation, tariffs, or other global events and disasters.

Further, our services revenue was 18% and 18% of total revenue for fiscal years 2025 and 2024, respectively. Our services revenue produces significantly lower gross margin than either our license revenue or our subscription and support revenue and has at times been negative. If we experience an increase in the percentage of total revenue represented by services revenue, due to acquisitions or other factors, such increase could reduce our overall gross and operating margins. Fluctuation in our services revenue can result from several factors, some of which may be beyond our control, including change in customer demand for our services team’s involvement in the implementation of and migration to new products, the rates we charge or discounts we offer for our services, our ability to bill our customers for all time incurred to complete a project, the extent and quality of implementations and migrations provided by our SI partners, the extent to which we subcontract services to those SI partners, and the impact on the global economy as a result of economic volatility, inflation, tariffs, or other global events and disasters. Additionally, the failure to improve, or the erosion of, our services margin, whether due to discounts related to encouraging customers to enter into cloud agreements or otherwise, particularly in combination with any increase in services revenue, could adversely affect our overall gross and operating margins. Our services margin may erode if we hire and train additional services personnel to support cloud-based services or markets prior to having customer engagements, if we make investments in customer migrations from self-managed term licenses to subscription services, if we enter into fixed fee services arrangements, if our services personnel are underutilized, if we subcontract out services without an adequate markup, or if we require additional personnel on unexpectedly difficult projects to ensure customer success, perhaps without receiving commensurate compensation.

Failure of any of our established products to satisfy customer demands or to maintain market acceptance could harm our business, results of operations, financial condition, and growth prospects.

We derive a significant majority of our revenue and cash flows from our established product offerings, including Guidewire InsuranceSuite ~~Cloud~~, Guidewire InsuranceNow, ~~Guidewire InsuranceSuite for self-managed installations,~~ and our digital and data products. We expect to continue to derive a substantial portion of our revenue from these sources. As such, continued market acceptance of these products is critical to our growth and success. Demand for our products is affected by a number of factors, some of which are beyond our control, including the successful implementation of our products, the timing of development and release of product upgrades, enhancements, and new products by us and our competitors, the cost and effort to migrate from self-managed products to subscription services, the ease of integrating our software to third-party software and services, technological advances that reduce the appeal of our products, changes in the regulations that our customers must comply with in the jurisdictions in which they operate, and the growth or contraction in the worldwide market for technological solutions for the P&C insurance industry. If we are unable to continue to meet customer demands, to achieve and maintain a technological advantage over competitors, or to maintain market acceptance of our products, our business, results of operations, financial condition and growth prospects may be adversely affected.

If we are unable to continue the successful development of our global direct sales force and the expansion of our relationships with our strategic partners, sales of our products will suffer and our growth could be slower than we project.

We believe that our future growth will depend on the continued recruiting, retention, and training of our global direct sales force and their ability to obtain new customers, both large and small P&C insurers, and to manage our existing customer base. New hires require significant training and may, in some cases, take more than a year before becoming productive, if at all. If we are unable to hire and develop sufficient numbers of productive global direct sales personnel, sales of our products will suffer and our growth will be impeded.

Our SI partners help us reach additional customers. We believe our future growth also will depend on the retention and expansion of successful relationships with SI partners, including with SI partners that will focus on products we may acquire in the future. Our growth in revenue, particularly in international markets, will be influenced by the development and maintenance of relationships with SI partners, including regional and local SI partners. Although we have established relationships with some of the leading SI partners, our products may compete directly against products that such leading SI partners support or market. Additionally, we are unable to control the quantity or quality of resources that our SI partners commit to migrating or implementing our products, the quality or timeliness of such migrations and implementations, or the effects of global events on our SI partners. If our partners do not commit sufficient or qualified resources to these activities, our customers will be less satisfied, be less supportive with references, or may require the investment of our resources at discounted rates. These, and other failures by our partners to successfully implement our products, would have an adverse effect on our business and our results of operations could fail to grow in line with our projections.23

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Our international sales and operations subject us to additional risks that can adversely affect our business, results of operations, and financial condition.

We sell our products to customers located outside the United States, and we are continuing to expand our international operations as part of our growth strategy. In fiscal years ~~2024,~~2025 ~~2023,~~ and ~~2022~~2024, $~~347~~431.96 million, ~~$331.5 million,~~ and $~~296~~347.29 million of our revenue, respectively, was from customers outside of the United States. Our current international operations and our plans to expand our international operations subject us to a variety of risks, including:

•increased management, travel, infrastructure, legal, and compliance costs associated with having multiple international operations;

•unique terms and conditions in contract negotiations imposed by customers in foreign countries;

•longer payment cycles and difficulties in enforcing contracts and collecting accounts receivable;

•the need to localize our contracts and our products for international customers;

•lack of familiarity with and unexpected changes in foreign regulatory requirements, including requirements around employee compensation and benefits;

•increased exposure to fluctuations in currency exchange rates, especially on revenue and ARR;

•highly inflationary international economies and related governments;

•geographic and political conflicts, such as the ~~wars~~war between ~~Israel~~Russia and ~~Hamas~~Ukraine, ~~and~~continued ~~between~~geopolitical ~~Russia~~instability ~~and~~in ~~Ukraine~~the Middle East, and the escalating tensions in the South China Sea;

•the burdens and costs of complying with a wide variety of foreign laws and legal standards, including without limitation any new or evolving laws and regulations relating to the use of data in AI, generative AI, machine learning technologies, climate-related disclosures, ~~and~~operational ~~the~~resilience, ~~General~~data ~~Data~~protection ~~Protection~~and ~~Regulation~~privacy, particularly in the European Union (“EU”) and the United Kingdom (“U.K.”);

•compliance with the U.S. Foreign Corrupt Practices Act of 1977, as amended, the U.K. Bribery Act of 2010 and other anti-corruption regulations, particularly in emerging market countries;

•compliance by international staff with accounting practices generally accepted in the United States, including adherence to our accounting policies and internal controls;

•import and export license requirements, tariffs, taxes and other trade barriers;

•increased financial accounting, tax and reporting burdens and complexities;

•weaker protection of intellectual property rights in some countries;

•multiple and possibly overlapping tax regimes, including certain Organization for Economic Cooperation and Development (“OECD”) proposals, ~~including~~such as the implementation of the global minimum tax under the Pillar Two model rules;

•government sanctions that may interfere with our ability to sell into particular countries, such as Russia;

•disruption to our operations caused by public health crises, such as epidemics and pandemics; and

•political, social, and economic instability abroad, terrorist attacks, and security concerns in general.

As we increase the number of products we offer, increase the number of countries in which we operate, and incorporate new technologies and capabilities into our products (including, without limitation, the use of AI, generative AI and machine learning technologies), the complexity of adjusting our offerings to comply with legal and regulatory changes will increase.

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As we continue to expand our business globally, our success will depend, in large part, on our ability to anticipate and effectively manage these and other risks associated with our international operations. Any of these risks could harm our international operations and reduce our international sales, adversely affecting our business, results of operations, financial condition and growth prospects.

We may expand through acquisitions or partnerships with other companies, which may divert our management’s attention and result in unexpected operating and technology integration difficulties, increased costs, and dilution to our stockholders.

Our business strategy includes the potential acquisition of shares or assets of companies with software, cloud-based services, technologies, oras well as businesses that are complementary to ours. Our strategy also includes alliances with such companies. For example, we have made several acquisitions in the past, ~~including~~ most recently our April 2025 acquisition of Quantee Sp. z o.o. (“Quantee”), a Poland-based insurtech company specializing in ~~August~~dynamic ~~2021~~pricing software. From time to time, we ~~acquired~~also ~~HazardHub~~invest in private growth-stage companies to support strategic initiatives, ~~Inc~~and such investments involve the risk of partial or total loss of capital and may not generate a return. Acquisitions, aalliances, ~~leading~~and ~~insurtech~~strategic ~~provider~~investments are inherently risky and may result in unforeseen operating difficulties and expenditures, be dilutive to earnings, negatively impact margins, and fail to generate the anticipated benefits. In particular, we may fail to assimilate or integrate the businesses, technologies, services, products, personnel, or operations of ~~property~~the ~~risk~~acquired ~~insights~~companies, retain key personnel necessary to favorably execute the combined companies’ business plan, retain existing customers or sell acquired products to new customers, or adequately test and assimilate the internal control processes of the acquired business in accordance with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”). ~~Acquisitions~~Our due diligence may fail to identify all of the problems, liabilities, or challenges, and ~~alliances~~our mitigation strategies for identified issues may not be effective. As a result, ~~such~~we asmay overpay, fail to achieve expected synergies or earnings accretion, or incur unexpected costs, any of which could harm our ~~strategic~~business, ~~partnerships~~prospects, ~~with~~financial ~~One~~condition, results of operations, cash flows, or stock price.

~~Table~~Acquisitions and alliances may also disrupt our ongoing business, divert our resources, and require significant management attention that would otherwise be available for ongoing development of ~~Contents~~our current business. In addition, we may be required to make additional capital investments or undertake remediation efforts to ensure the success of our acquisitions, which may reduce the benefits of such acquisitions. We also may be required to use a substantial amount of our cash or issue debt or equity securities to complete an acquisition or realize the potential of an alliance, which could deplete our cash reserves and/or dilute our existing stockholders. Following an acquisition or the establishment of an alliance offering new products, the timing of revenue from the sale of products that we acquired or that result from the alliance, or from the sale of a bundle of products that includes such new products, may be different from the timing of revenue from existing products. In addition, our ability to maintain favorable pricing of new products may be challenging if we bundle such products with existing products. A delay in the recognition of revenue from sales of acquired or alliance products, or reduced pricing due to bundled sales, may cause fluctuations in our quarterly financial results, may adversely affect our operating margins, and may reduce the benefits of such acquisitions or alliances.

~~Inc. and Smart Communications~~Additionally, ~~may~~competition ~~result~~within ~~in unforeseen operating difficulties and expenditures, be dilutive to earnings, and may not result in~~ the ~~benefits~~software ~~anticipated~~industry byfor ~~such~~acquisitions ~~corporate~~of ~~activity. In particular, we may fail to assimilate or integrate the~~ businesses, technologies, ~~services,~~and ~~products,~~assets ~~personnel,~~has ~~or operations of the acquired companies~~been, ~~retain~~and ~~key~~may ~~personnel~~continue ~~necessary~~ to ~~favorably execute the combined companies’ business plan~~be, ~~or retain existing customers or sell acquired products to new customers~~intense. Acquisitions ~~and alliances~~ may ~~also~~be ~~disrupt~~subject ~~our~~to ~~ongoing~~regulatory ~~business~~reviews, ~~divert~~which ~~our~~could ~~resources,~~increase legal and ~~require~~compliance ~~significant~~costs ~~management~~or ~~attention~~delay, ~~that~~limit, ~~would~~or ~~otherwise~~prevent becompletion ~~available for ongoing development~~ of ~~our~~the ~~current business~~transaction. InAs ~~addition~~such, weeven ~~may~~if bewe ~~required~~are able to ~~make~~identify ~~additional~~an ~~capital~~acquisition ~~investments~~that orwe ~~undertake~~would ~~remediation~~like ~~efforts~~ to ~~ensure~~pursue, the ~~success~~target ~~of our acquisitions, which~~ may ~~reduce~~be ~~the~~acquired ~~benefits~~by ofanother ~~such~~strategic ~~acquisitions.~~buyer Weor ~~also~~financial ~~may~~buyer besuch ~~required~~as ~~to use~~ a ~~substantial~~private ~~amount~~equity offirm, ~~our cash~~ or ~~issue~~we ~~debt~~may orotherwise ~~equity~~not ~~securities~~be able to complete anthe acquisition oron ~~realize~~commercially ~~the~~reasonable ~~potential of an alliance~~terms, ~~which~~if ~~could~~at ~~deplete~~all. ~~our~~Moreover, ~~cash~~in ~~reserves~~addition ~~and/or~~to ~~dilute~~ our ~~existing~~failure ~~stockholders.~~to ~~Following~~realize ~~an acquisition or~~ the ~~establishment~~anticipated benefits of anany ~~alliance offering new products~~acquisition, ~~the~~including ~~timing~~our of revenue ~~from the sale of products that we acquired~~ or ~~that~~return ~~result~~on ~~from~~investment ~~the alliance~~assumptions, orwe ~~from the sale of a bundle of products that includes such new products,~~ may be ~~different~~exposed ~~than the timing of revenue from existing products. In addition, our ability~~ to ~~maintain~~unknown ~~favorable~~liabilities ~~pricing of new products may be challenging if we bundle such products with existing products. A delay in the recognition of revenue from sales of acquired~~ or ~~alliance~~impairment ~~products,~~charges ~~or reduced pricing due~~ to ~~bundled~~acquired ~~sales,~~intangible ~~may~~assets ~~cause fluctuations in our quarterly financial results, may adversely affect our operating margins,~~ and ~~may~~goodwill ~~reduce~~as ~~the~~a ~~benefits~~result of ~~such~~ acquisitions orwe ~~alliances~~do complete.

Additionally, competition within the software industry for acquisitions of businesses, technologies, and assets has been, and may continue to be, intense. As such, even if we are able to identify an acquisition that we would like to pursue, the target may be acquired by another strategic buyer or financial buyer such as a private equity firm, or we may otherwise not be able to complete the acquisition on commercially reasonable terms, if at all. Moreover, in addition to our failure to realize the anticipated benefits of any acquisition, including our revenue or return on investment assumptions, we may be exposed to unknown liabilities or impairment charges to acquired intangible assets and goodwill as a result of acquisitions we do complete.

Incorrect or improper use of our products or our failure to properly train customers on how to utilize our products could result in customer dissatisfaction and negatively affect our business, results of operations, financial condition, and growth prospects.

Our products are complex and are deployed in a wide variety of environments. The proper use of our products requires training of the customer. If our products are not used correctly or as intended, inadequate performance may result. Our products may also be intentionally misused or abused by customers or their employees or third parties who are able to access or use our products. Because our customers rely on our services, products, and support to manage a wide range of operations, the incorrect or improper use of our products, our failure to properly train customers on how to efficiently and effectively use our products, or our failure to properly provide services to our customers may result in negative publicity or legal claims against us. Also, any failure by us to properly provide training or other services to existing customers will likely result in lost opportunities for follow-on and increased sales of our products.

In addition, if there is substantial turnover of customer personnel responsible, especially at the executive level, for the use and support of our products, or if customer personnel are not well trained in the use and support of our products, customers may defer the deployment of our products, may deploy them in a more limited manner than originally anticipated, or may not deploy them at all. Further, if there is substantial turnover of the customer personnel responsible for use of our products, our ability to renew existing licenses and make additional sales may be substantially limited.

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We may not be able to obtain capital when desired on favorable terms, if at all, and we may not be able to obtain capital or complete acquisitions through the use of equity without dilution to our stockholders.

We may need additional financing to execute on our current or future business strategies, including to develop new or enhance existing products, acquire businesses and technologies, service our existing debt, or otherwise to respond to competitive pressures.

If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our existing stockholders could be significantly diluted, and newly issued securities may have rights, preferences, or privileges senior to those of existing stockholders. If we accumulate additional funds through debt financing, a substantial portion of our operating cash flow may be dedicated to the payment of principal and interest on such indebtedness, thus limiting funds available for our business activities. We cannot be assured that additional financing will be available on terms favorable to us, or at all. If adequate funds are not available, or are not available on acceptable terms, when we desire them, our ability to fund our operations, take advantage of unanticipated opportunities, develop or enhance our products, or otherwise respond to competitive pressures would be significantly limited. Any of these factors could harm our results of operations.

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Risks Related to Data Security and Privacy, Intellectual Property, and Information Technology

If our products experience cybersecurity incidents or breaches, there is unauthorized access to our customers’ data, or unauthorized use of our products or any of these events are perceived to happen, we may lose current or future customers and our reputation and business may be harmed.

Our products and business involve the collection, storage and processing of customer data ~~(including~~and, in some cases, information that relates to individuals and/or constitutes personal data (including from our employees, business partners and others, and, in some cases, from our customers), and our products may provide business critical software and analytics necessary for our customers’ operations. As such, we may be an attractive target for data security attacks that threaten the confidentiality, integrity, and availability of our information technology systems and confidential information. Security incidents or breaches could result in public disclosure of confidential information or personal information, loss or modification of data affecting our customers’ operations, fraud or theft, ransom demands, or other misuse of confidential information or personal information, which in turn could result in our cloud services being perceived as not being secure, a reduction in customers using our products, as well as litigation, breach of contract claims, indemnity obligations, additional reporting requirements and/or oversight, restrictions on processing ~~customer~~ data, and other liabilities for our Company, all of which could lead to loss of revenue, a diminished ability to retain or attract new customers due to reputational harm, fines, costs, or other penalties or sanctions. While we have taken, and are continually updating and enhancing, steps to protect the confidential information, ~~and~~ customer data toand ~~which~~personal wedata ~~have~~that ~~access~~we steward, including confidential information we may obtain through our customer support services or customer usage of our cloud-based services, our security measures or the security measures of companies we rely on, ~~such as AWS,~~ could be breached. We rely on third-party technology and systems for a variety of information technology systems and related products and services, including, without limitation, cloud computing services, encryption and authentication technology, employee email, content delivery to customers, back-office support, and other functions. Our ability to control or prevent breaches of any of these systems may be beyond our control. Any failure by a third party to prevent or mitigate data security incidents, breaches or improper access to, or use, acquisition, disclosure, alteration or destruction of customer data could have adverse consequences for us. Because techniques used to obtain unauthorized access or infiltrate, sabotage, disable or degrade systems change frequently and generally are not identified until they are launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures despite our efforts in implementing and deploying security measures. The use of constantly evolving technologies by diverse threat actors, including state-sponsored organizations, opportunistic hackers and hacktivists, such as the increased use of AI technologies, are sophisticated and complex and may increase the velocity of such threats, frequency of incident cases, and otherwise magnifying the risks associated with these types of attacks. These attack vectors may include social engineering/phishing, malware (including ransomware), malfeasance by insiders, human or technological error, and as a result of malicious code embedded in open source software or the exploitation of bugs, misconfigurations or exploited vulnerabilities in software or hardware that is integrated into our (or our suppliers’ or service providers’) information technology systems, products or services. Although we have developed systems and processes designed to protect our and our customers’ data, prevent loss or unauthorized modification of data, ensure only authorized use of services, and prevent other cybersecurity incidents or breaches, including systems and processes designed to reduce the impact of a security incident or breach to a third-party vendor, such measures cannot provide absolute security, and our systems may be vulnerable to malware or physical or electronic break-ins that our security measures may not ~~detect. There can also~~ be noable ~~assurance~~to ~~that our cybersecurity risk management program and processes~~detect, ~~including our policies~~investigate, ~~controls~~remediate or ~~procedures~~recover from, ~~will~~or beto ~~fully~~avoid ~~implemented,~~a ~~complied~~material ~~with~~adverse orimpact ~~effective~~to ~~in protecting~~ our information technology systems, or confidential information~~. Individuals~~, ~~including~~supply ~~trusted~~chain ~~employees and contractors, who circumvent our security measures may misappropriate proprietary, confidential,~~ or ~~personal data held by or on behalf of us, disrupt our operations, damage our systems, or otherwise damage our~~ business. ~~In addition~~Moreover, we ~~may~~have ~~need~~acquired toand ~~expend~~continue ~~significant resources~~ to ~~protect~~acquire ~~against~~companies ~~data~~whose ~~security~~systems ~~breaches~~may orcontain ~~mitigate~~cybersecurity ~~the~~vulnerabilities ~~impact of any such breaches. Any~~ and/or ~~all~~unsophisticated ofsecurity ~~these issues could negatively impact our ability to attract new customers or to increase engagement with existing customers~~measures, ~~could~~which ~~cause~~may ~~existing~~expose ~~customers~~us to ~~elect~~significant ~~not to renew their term licenses or subscription agreements~~cybersecurity, ~~or could subject us to third-party lawsuits~~operational, ~~regulatory~~and ~~fines~~financial orrisks. ~~other~~Because ~~action~~our orproducts ~~liability,~~are ~~which~~integrated ~~could~~with ~~adversely affect~~ our ~~business,~~customers’ ~~results~~systems ofand ~~operations~~processes, ~~financial condition, or reputation. We cannot guarantee that~~ any ~~costs~~circumvention ~~and liabilities incurred in relation to an attack~~ or ~~incident~~failure ~~will~~of ~~be covered by~~ our ~~existing~~cybersecurity ~~insurance~~defenses ~~policies~~ or ~~that~~measures ~~applicable~~could ~~insurance~~compromise ~~will~~the beconfidentiality, ~~available~~integrity, toand usavailability inof ~~the~~our ~~future~~customers’ onown ~~economically~~information ~~reasonable~~technology ~~terms~~systems and/or atconfidential ~~all~~information as well.

In addition, data security breaches could expose us to liability under various laws and regulations across jurisdictions, increase the risk of litigation and governmental or regulatory investigation, and increase our costs for compliance. For example, we may need to notify governmental authorities and/or affected individuals with respect to certain data security breach in light of a growing number of laws, including those in the European Economic Area (“EEA”), U.K., and the United States. Complying with such numerous and complex regulations in the event of a data security breach would be expensive and difficult, and failure to comply with these regulations could subject us to regulatory scrutiny and additional liability. We may also be contractually required to notify customers or other counterparties of a security incident, including a data security breach. 26

Service interruptions or failures of our third-party service providers may impair the availability of our products, which may expose us to liability, damage our reputation, and harm our future financial results.

We rely on services provided by third-parties to operate our products, any of which such services, if they encounter interruptions, failure, or slowdown for any reason, could cause outages or delays in our products, negatively affect our platform,

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~~damage~~In addition, we cannot ensure that our ~~reputation~~cybersecurity ~~with~~risk ~~current~~management program and ~~potential~~processes, ~~customers~~including our policies, ~~expose~~controls usor toprocedures, ~~liability~~will be fully implemented, ~~cause~~complied uswith toor ~~lose~~effective ~~customers,~~in ~~adversely~~all ~~affect~~instances, ~~our~~and ~~results~~even ofif ~~operations~~fully implemented, orthey ~~otherwise~~may ~~harm~~not fully protect our ~~business~~information technology systems or confidential information. ~~For~~Furthermore, ~~example~~given the nature of complex systems, software and services like ours, as well as the scanning tools we ~~host~~deploy across our ~~platform~~networks ~~using~~and ~~AWS~~products, ~~data~~even ~~centers~~if we regularly identify and track security vulnerabilities, we may be unable to comprehensively apply patches, confirm that measures are in place to mitigate all ofsuch ~~our~~vulnerabilities, ~~cloud~~or ~~products~~ensure ~~rely~~that onpatches ~~resources~~are ~~operated~~applied before vulnerabilities are exploited by ~~AWS~~a threat actor. ~~Our~~Individuals, ~~operations~~including ~~depend~~our onemployees ~~protecting~~and contractors, who circumvent our ~~virtual~~security ~~cloud~~measures ~~infrastructure~~may ~~hosted~~misappropriate proprietary, confidential, or personal data held by ~~service~~or ~~providers;~~on ~~preserving~~behalf ~~the~~of ~~infrastructure’s~~us, ~~configuration~~disrupt our operations, ~~architecture~~damage our systems, ~~and~~or ~~interconnection~~otherwise ~~specifications;~~damage ~~and~~our ~~maintaining~~business. ~~access~~While to date no incidents have had a material impact on our ~~products~~operations ~~and~~or ~~the~~financial ~~information~~results, ~~stored~~we incannot ~~virtual~~guarantee ~~data~~that ~~centers~~material ~~and~~incidents ~~transmitted~~will ~~over~~not ~~internet~~occur ~~service~~in ~~providers~~the future. ~~Although~~In addition, we ~~have~~may ~~disaster~~need ~~recovery~~to ~~plans~~expend ~~that~~significant ~~use~~resources ~~multiple~~to ~~virtual~~protect ~~data~~against ~~center~~cybersecurity ~~locations,~~incidents or breaches or mitigate the impact of any ~~incident~~such ~~affecting~~incidents ~~our~~or ~~service~~breaches. ~~providers’~~Any ~~operations~~or ~~and~~all ~~infrastructure~~of these issues that adversely impact the availability, ~~including~~integrity ~~but~~or ~~not~~confidentiality ~~limited~~of our information technology systems or confidential information could negatively impact our ability to ~~those~~attract ~~caused~~new bycustomers ~~power~~or ~~loss,~~to ~~telecommunications~~increase ~~failures~~engagement with existing customers, ~~unauthorized~~could ~~intrusion~~cause existing customers to elect not to renew their term licenses or ~~malicious~~subscription ~~action~~agreements, ~~malware~~or ~~and~~could ~~disabling~~subject ~~devices~~us to third-party lawsuits (including class actions), ~~natural~~regulatory ~~catastrophes~~investigations and enforcement actions, ~~terrorism~~fines and penalties, ~~wars~~other action or liability, and/or ~~other~~significant ~~similar~~incident ~~events~~response, ~~beyond~~system ~~our~~restoration ~~control~~or remediation and future compliance costs, which could ~~negatively~~adversely affect our ~~products.~~business, Aresults ~~prolonged~~of ~~third-party~~operations, ~~service~~financial ~~disruption~~condition, ~~affecting~~or ~~our~~reputation. ~~platform~~We ~~for~~cannot ~~any~~guarantee ofthat ~~the~~any ~~foregoing~~costs ~~reasons~~and ~~could~~liabilities beincurred ~~detrimental~~in relation to ~~our~~an ~~business.~~attack Weor ~~may~~incident ~~also~~will ~~incur~~be ~~significant~~covered ~~costs~~by ~~for~~our ~~taking~~existing ~~other~~insurance ~~actions~~policies inor ~~preparation~~that ~~for,~~applicable orinsurance inwill ~~reaction~~be available to, ~~events~~us ~~that~~in ~~disrupt~~ the ~~third-party~~future ~~services~~on weeconomically ~~use~~reasonable terms or at all.

~~Our~~In ~~platform~~addition, isdata ~~accessed~~security byincidents aor ~~large~~breaches ~~number~~could ofexpose ~~customers,~~us ~~often~~to atliability ~~the~~under ~~same~~various ~~time,~~laws and weregulations doacross ~~not~~jurisdictions, ~~control~~increase the ~~operation~~risk of ~~our~~litigation ~~third-party~~and ~~service~~governmental ~~providers.~~or Asregulatory weinvestigation, ~~continue~~and toincrease ~~expand the number of~~ our ~~customers~~costs ~~and~~for ~~products~~compliance. ~~available~~For ~~to our customers~~example, we may ~~not~~need ~~be able~~ to ~~scale~~notify ~~our~~governmental ~~technology~~authorities toand/or ~~accommodate~~affected ~~the~~individuals ~~increased~~with ~~capacity~~respect ~~requirements,~~to ~~which~~certain ~~may~~cybersecurity ~~result~~incidents ~~in interruptions~~ or ~~delays~~breaches in ~~our~~light ~~products.~~of Ina ~~addition,~~growing ~~the~~number ~~failure~~ of ~~third-party virtual data centers~~laws, ~~third-party~~including ~~internet~~those ~~service~~in ~~providers,~~the orEuropean ~~other~~Economic ~~third-party~~Area ~~service~~(“EEA”), ~~providers whose services are integrated with our products~~U.K., toand ~~meet~~the ~~our~~United ~~capacity~~States. ~~requirements,~~Complying ~~could~~with ~~result~~such innumerous ~~interruptions~~and orcomplex ~~delays~~regulations in ~~access to our products or impede our ability to scale our operations. In~~ the event ~~that~~of ~~our~~a ~~third-party~~cybersecurity ~~service~~incident ~~agreements are not renewed~~ or ~~are~~breach ~~terminated,~~would orbe ~~there~~expensive isand ~~a lapse of service~~difficult, ~~interruption~~and offailure ~~service provider connectivity or damage~~ to ~~such~~comply ~~services,~~with wethese regulations could ~~experience~~subject ~~interruptions~~us ~~in access~~ to ~~our~~regulatory ~~products~~scrutiny asand ~~well~~additional asliability. ~~delays~~We ~~and~~may ~~additional~~also ~~expense~~be incontractually ~~arranging~~required ~~new~~to ~~third-party~~notify ~~service~~customers ~~providers,~~or ~~all~~other counterparties of ~~which~~a ~~could~~cybersecurity ~~harm~~incident ~~our~~or ~~business~~breach.

~~Evolving~~Service ~~policy~~interruptions ~~and~~or ~~regulatory~~failures ~~responses~~of toour AIthird-party ~~and~~service ~~machine~~providers ~~learning~~or ~~and their potential implications for the fields of information~~ technology, ~~data~~could ~~privacy,~~disrupt ~~and~~our ~~security~~products ~~may result in increased compliance costs~~ and ~~associated~~harm ~~concerns~~our ~~for us~~business.

AtWe ~~present,~~utilize ~~multiple~~services ~~jurisdictions~~and ~~are~~technology ~~taking~~and aintellectual ~~heightened~~property ~~interest~~provided inor AIlicensed ~~and~~by ~~machine~~unaffiliated ~~learning.~~third ~~There~~parties ~~has~~to ~~been~~operate aour ~~recent~~products, ~~wave~~including ofAWS, ~~policy~~Okta and ~~regulatory~~Datadog. ~~responses~~Any ~~from~~interruptions, ~~various~~failure, ~~governments~~slowdown, ~~rolling~~errors, ~~out~~defects, ~~action~~bugs, ~~plans~~design ~~for~~flaws, ~~risk~~or ~~mitigation~~security tovulnerabilities ~~legislation~~in ~~being~~our ~~introduced~~services toor ~~generally~~in ~~oversee~~third-party ~~the~~technology ~~use~~on ofwhich ~~AI.~~we ~~For~~rely ~~example,~~could incause ~~2023,~~outages ~~the~~or ~~President~~delays ofin ~~the~~our ~~United~~products, ~~States~~negatively ~~issued~~affect anour ~~executive order~~platform, ~~promulgating~~damage ~~guidelines~~our toreputation ~~executive~~with ~~departments,~~current and ~~various~~potential ~~states~~customers, ~~have~~expose ~~enacted~~us ~~legislation~~to ~~relating~~liability, cause us to ~~disclosure~~lose ~~requirements~~customers, ~~for~~adversely ~~the~~affect ~~use~~our results of AIoperations, ~~and~~or inotherwise ~~the~~harm ~~EU,~~our ~~the~~business. EUOur AIoperations ~~Act,~~depend ~~adopted~~on inour ~~2024~~ability, ~~establishes~~and athat ~~comprehensive~~of our service providers, ~~risk-based~~to ~~governance~~protect ~~framework~~our ~~and~~virtual ~~applies~~cloud toinfrastructure, ~~amongst~~preserve ~~other~~GWCP’s ~~entities~~configuration, ~~providers~~delivering capability, ~~importers~~and interconnections, and ~~distributors~~maintain ofaccess AIto ~~systems~~our orproducts ~~general-purpose~~and AIto ~~models~~the ~~that~~information ~~are~~stored ~~placed~~in onvirtual ~~the~~data EUcenters ~~market~~and ortransmitted ~~put~~over ~~into~~internet service orproviders. ~~used~~Although inwe ~~the~~have ~~EU.~~disaster ~~There~~recovery isplans athat ~~risk~~use ~~that~~multiple ~~our~~virtual ~~current~~data orcenter ~~future~~locations, ~~products~~any ~~may~~incident beaffecting ~~subject~~our toservice ~~heightened~~providers’ ~~obligations~~operations ~~under~~and ~~the~~infrastructure, EUincluding AIsoftware ~~Act~~errors, ~~which~~bugs, ~~may~~design ~~impose~~flaws, ~~additional~~power ~~costs~~loss, ontelecommunications usfailures, ~~increase~~unauthorized ~~our~~intrusion ~~risk~~or ofmalicious ~~liability~~action, malware and disabling devices, natural catastrophes, terrorism, wars, or ~~adversely~~other similar events beyond our control, could negatively affect our ~~business~~products. ~~New~~A prolonged third-party service disruption affecting our supply chain or ~~evolving~~our ~~regulations~~platform ~~relating~~for toany ~~rapidly~~of ~~evolving~~the ~~generative~~foregoing AIreasons ~~and~~could ~~machine~~be ~~learning~~detrimental ~~technologies~~to our business. We may ~~impose~~also ~~additional~~incur ~~rules~~significant ~~and~~costs ~~restrictions~~for ontaking ~~the~~other ~~use~~actions ofin ~~the~~preparation AIfor, or in ~~our~~reaction ~~products.~~to, events that disrupt the third-party services we use.

~~Compliance~~Our ~~with~~platform ~~such~~is ~~global~~accessed ~~laws~~by ~~and~~a ~~regulations,~~large ~~including~~number ~~but~~of ~~not~~customers, ~~limited~~often toat the EUsame AItime, ~~Act~~ and ~~any~~we ~~new~~do ornot ~~evolving~~control ~~regulations~~the ~~relating~~operation of our third-party service providers. As we continue to ~~generative~~expand AIthe number of our customers and ~~machine~~products ~~learning~~available ~~technologies~~to our customers, ~~has~~we and/or ~~will~~our ~~continue~~third-party toservice ~~require~~providers ~~valuable~~may ~~management,~~not ~~operating~~be ~~expenses,~~able ~~and~~to ~~employee~~scale ~~time~~our ~~and~~technology ~~resources~~to accommodate the increased capacity requirements, ~~and~~which ~~any~~may ~~actual~~result in interruptions or ~~perceived~~delays in our products. In addition, the failure toof ~~comply~~third-party ~~with~~virtual ~~these~~data ~~laws~~centers, ~~and~~third-party ~~regulations~~internet service providers, or other ~~actual~~third-party orservice ~~asserted~~providers ~~obligations~~whose ~~relating~~services toare ~~privacy~~integrated with our products, ~~data~~to ~~protection~~meet our capacity requirements, could result in interruptions or ~~cybersecurity~~delays ~~could~~in ~~lead~~access to ~~inspections,~~our ~~audits,~~products ~~regulatory~~or ~~investigations~~impede ~~and~~our ~~other~~ability ~~proceedings,~~to ~~significant~~scale ~~fines,~~our ~~severe~~operations. ~~penalties,~~In ~~and~~the ~~other~~event ~~relief~~that ~~imposed~~our bythird-party ~~governmental~~service ~~agencies~~agreements ~~and~~are ~~regulatory~~not ~~bodies,~~renewed ~~and~~or ~~claims~~are terminated, ~~demands~~or there is a lapse of service, ~~and~~interruption ~~litigation~~of byservice ~~our~~provider ~~customers~~connectivity or ~~third~~damage ~~parties~~to such services, ~~which~~we ~~may~~could ~~reduce~~experience ~~demand~~interruptions ~~for~~in access to our products as well as material delays and ~~result~~material additional expense in ~~reputational~~securing ~~harm~~alternative third-party service providers, ~~substantial~~particularly ~~damages~~where such service providers perform critical functions and ~~other~~may ~~liabilities~~not be readily replaceable, all of which could harm our business.

~~Privacy concerns could result in regulatory changes and impose additional costs and liabilities on us, limit our use of information, and adversely affect our business.~~27

As adoption of our cloud-based products occurs, the amount of customer data, including customer personal data, that we manage, hold, and/or collect continues to increase. In addition, our products may collect, process, store, and use transaction-level data aggregated across insurers using our common data model. We anticipate that over time, we will continue to expand the use and collection of personal data as greater amounts of such personal data may be transferred from our customers to us. We recognize that privacy and data security has become a significant issue in the United States, Europe, the U.K., and many other jurisdictions where we operate.

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~~Many~~We ~~federal,~~use ~~state,~~technology and ~~foreign~~intellectual ~~legislatures~~property ~~and~~licensed ~~government~~from ~~agencies~~unaffiliated ~~have~~third ~~imposed,~~parties ~~are~~in ~~considering~~certain ~~imposing,~~of orour ~~are~~products, ~~considering changing restrictions~~ and ~~requirements~~we ~~about~~may ~~the~~license ~~collection,~~additional ~~use,~~third-party technology and ~~disclosure~~intellectual ofproperty ~~personal~~in ~~data~~the future. ~~Changes~~This tomay ~~laws~~include orcertain ~~regulations~~AI ~~affecting~~technologies ~~privacy~~that ~~could~~are, ~~impose~~or ~~additional~~may ~~costs~~in ~~and~~the ~~liabilities~~future be, ~~including~~integrated ~~fines,~~into onour usproducts and ~~could~~licensed ~~limit~~from ~~our~~third ~~use~~parties. ofOur ~~such~~ability ~~information~~ to ~~add~~provide ~~value~~these ~~for~~AI-enabled ~~customers,~~capabilities ~~including,~~may ~~for~~depend ~~example,~~on ~~the~~access ~~California~~to ~~Consumer~~specific ~~Privacy~~third-party ~~Act~~software ~~and~~or ~~the~~infrastructure, ~~California~~and ~~Privacy~~any ~~Rights~~loss ~~Act~~of access, ~~which~~unfavorable ~~substantially~~changes ~~went~~in ~~into~~terms, ~~effect~~incompatibility, onor ~~January~~disruption 1,in ~~2023~~such ~~and~~technologies ~~other~~could ~~state~~reduce ~~privacy~~the ~~laws~~functionality ~~enacted~~of inour ~~recent~~products, ~~years.~~make ~~New~~them EUless ~~laws~~appealing ~~related~~ to ~~the~~customers, ~~use~~and ofharm ~~data,~~our ~~including~~reputation inand ~~the~~business. ~~Digital~~Any ~~Services~~errors, ~~Act~~defects, ~~the~~or EUsecurity ~~Data~~issues ~~Act,~~in ~~and~~this ~~the~~third-party EUtechnology ~~Artificial~~and ~~Intelligence~~intellectual ~~Act~~property ~~(“EU~~or AIthe ~~Act”),~~integration ~~may~~of ~~impose~~third-party ~~additional~~technology ~~rules~~ and ~~restrictions~~intellectual onproperty ~~the~~with ~~use~~our ofproducts ~~the~~could ~~data~~result in errors that could harm our ~~products~~brand and business. IfThough we ~~were~~have ~~required~~not toexperienced ~~change~~any ~~our~~material ~~business~~impact ~~activities~~to ordate, ~~revise~~industry orincidents ~~eliminate~~involving ~~services,~~vulnerabilities orin tothird-party ~~implement~~technology ~~burdensome~~underscore ~~compliance~~the ~~measures,~~potential ~~our~~risks ~~business~~associated ~~and~~with ~~results~~the use of ~~operations~~third-party ~~could~~technology beand ~~harmed~~intellectual property. WeMoreover, licensed technology and intellectual property may benot ~~subject~~continue to ~~fines,~~be ~~penalties,~~available ~~and~~on ~~potential~~commercially ~~litigation~~reasonable terms, ~~including~~or ~~class~~at ~~action lawsuits~~all, ifor weotherwise ~~fail~~will tobe ~~comply~~subject ~~with~~to ~~applicable~~restrictions ~~privacy~~that ~~and/or~~under ~~data~~applicable ~~security~~law ~~laws,~~could ~~regulations,~~adversely ~~standards,~~affect ~~and~~our ~~other~~proprietary ~~requirements~~software. The ~~costs~~loss of ~~compliance~~the ~~with~~right ~~and~~to ~~other~~license ~~burdens~~and ~~imposed~~distribute bythis ~~evolving privacy~~third-~~related~~party ~~laws,~~technology ~~regulations,~~could ~~and standards may~~ limit the ~~use~~functionality ~~and adoption~~ of our products and ~~reduce~~might ~~overall~~require ~~demand~~us to redesign our products.

~~Furthermore,~~Evolving ~~concerns~~policy ~~regarding data privacy~~ and~~/or~~ ~~security~~regulatory ~~may~~responses ~~cause our customers’ customers~~ to ~~resist~~AI ~~providing~~technologies ~~the data~~ and ~~information~~their ~~necessary~~potential toimplications ~~allow~~for ~~our customers to use our products effectively. Even~~ the ~~perception~~fields ~~that the privacy and/or security~~ of ~~personal~~information ~~data is not satisfactorily managed~~technology, ordata ~~does not meet applicable legal~~privacy, ~~regulatory,~~ and ~~other~~security ~~requirements,~~may ~~could~~result ~~inhibit sales of our products, and could limit adoption of our solutions, resulting~~ in aincreased ~~negative~~compliance ~~impact~~costs ~~on our sales, reputation,~~ and ~~results~~associated ofconcerns ~~operations~~for us.

At present, various governments are taking an increased interest in developments in AI technologies and are responding to such developments in various ways, including by issuing action plans for risk mitigation and introducing legislation to generally oversee the use of AI. In the United States, federal and state authorities have introduced, and may continue to introduce, requirements related to AI oversight, disclosure, and accountability, and the scope and direction of such laws and policies remain uncertain. In the EU, the EU Artificial Intelligence Act (“EU AI Act”) establishes a comprehensive governance framework for AI and similar efforts are emerging in other jurisdictions. New or evolving regulations relating to rapidly evolving AI technologies may impose additional rules and restrictions on the use of AI in our products.

Compliance with such global laws and regulations may require valuable management and employee time, resources, and operating expenses, and any actual or perceived failure to comply with these laws and regulations or other actual or asserted obligations relating to privacy, data protection, or cybersecurity could lead to inspections, audits, regulatory investigations and other proceedings, significant fines, severe penalties, and other relief imposed by governmental agencies and regulatory bodies, and claims, demands, and litigation by our customers or third parties, which may reduce demand for our products and result in reputational harm, substantial damages and other liabilities, all of which could harm our business.

Privacy concerns could result in regulatory changes, and compliance with ever-evolving privacy and data protection laws could impose additional costs and require significant resources, and any actual or alleged failure by us or our vendors to comply could result in significant liabilities, limit our use of information, cause negative publicity and/or an erosion of trust, and adversely affect our business, results of operations, and financial condition.

As adoption of our cloud-based products expands, the amount of customer data and transaction-level data that we manage continues to increase. We anticipate that over time, we will continue to expand the use and collection of personal data as greater amounts of such personal data may be transferred from our customers to us. We recognize that privacy and data security has become a significant issue in the United States, Europe, the U.K., and many other jurisdictions where we operate, and we and our vendors are subject to a variety of federal, state and foreign data privacy laws, rules, regulations, industry standards and other requirements. Even though we believe we are generally in compliance with applicable laws, rules and regulations relating to privacy and data security, these laws are in some cases relatively new and the interpretation and application of these laws are uncertain. In addition, we depend on our vendors to comply with such requirements, and any failure by them to do so may subject us to liability or other adverse consequences.

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Many federal, state, and foreign legislatures and government agencies have imposed, are considering imposing, or are considering changing restrictions and requirements about the collection, use, and disclosure of personal data. New, or changes to existing, laws or regulations affecting privacy could impose additional costs and liabilities, including fines, on us, require us to implement new processes, and limit our use of such information to add value for customers, including, for example, the California Consumer Privacy Act, as amended by the California Privacy Rights Act (collectively, “CCPA”), and other state privacy laws enacted in recent years. The enactment of the CCPA has prompted a wave of similar legislative developments in other states in the United States, which has created a patchwork of overlapping but different state laws, which we may become subject to directly or by contract. Additionally, we may be considered a service provider to “financial institutions” under the Gramm-Leach Bliley Act (the “GLBA”). The GLBA includes a “Safeguards Rule,” which imposes obligations on financial institutions, and indirectly, their service providers to implement and maintain physical, administrative and technological measures to protect the security of personal data. New EU laws related to the use of data, including the Digital Services Act, the EU Data Act, and the EU AI Act, may impose additional rules and restrictions on the use of the data in our products. Additionally, evolving regulations aimed at enhancing financial sector resilience, such as the Digital Operational Resilience Act, may impact our operations by requiring adaptations for risk management and compliance, potentially leading to increased costs and operational adjustments. If we were required to change our business activities or revise or eliminate services, or to implement burdensome compliance measures, our business and results of operations could be harmed. We may be subject to significant fines, penalties, and damages resulting from potential litigation, including class action lawsuits, proceedings or actions by individuals, consumer rights groups, government agencies, or others, if we fail or are perceived to fail to comply with applicable privacy and/or data security laws, regulations, standards, and other requirements, and could incur significant costs in investigating and defending such claims. The costs of compliance with and other burdens imposed by evolving privacy-related laws, regulations, and standards may limit the use and adoption of our products and reduce overall demand.

Furthermore, concerns regarding data privacy and/or security may cause our customers’ customers to resist providing the data and information necessary to allow our customers to use our products effectively. Even the perception that the privacy and/or security of personal data is not satisfactorily managed, or does not meet applicable legal, regulatory, and other requirements, could inhibit sales of our products, and could limit adoption of our solutions, resulting in a negative impact on our sales, reputation, and results of operations. If any of these events were to occur, our business, results of operations, and financial condition could be adversely affected.

Privacy concerns in the EU and the U.K. are evolving and we may face fines and other penalties, as well as reputational harm, if we fail to comply with these current and evolving laws, and compliance with these laws may increase our expenses and adversely affect our business and results of operations.

OnThe ~~April 27, 2016, the EU adopted the~~ European General Data Protection Regulation (the “GDPR”), ~~that took effect on May 25~~applies, ~~2018. The GDPR applies to any company established~~ in ~~the~~part, ~~EEA as well as~~ to ~~those~~companies outside the EEA ifthat ~~they~~ carry out processing of personal data of individuals in the EEA that is related to the offering of goods or services to them or the monitoring of their behavior. The GDPR has enhanced data protection obligations for processors and controllers of personal data and non-compliance with the GDPR can trigger ~~fines~~substantial ~~of up to €20 million, or 4% of total worldwide annual revenues, whichever is higher~~fines. ~~Given~~We ~~the breadth and depth of changes in data protection obligations, we~~ have ~~previously invested significant resources to comply with GDPR requirements. While our expenditures have decreased~~ in ~~recent periods as we have improved our compliance efforts, we have in~~ the past, and may in the future, need to allocate additional resources in response to new interpretations, regulatory guidance, and enforcement decisions, or ongoing negotiation of data processing agreements with our customers and business partners, which may increase our costs of compliance and impose limitations on our operations.

In addition, the GDPR restricts transfers of personal data outside the EEA to countries without adequate privacy protections, such as the United States, unless an appropriate safeguard specified by the GDPR such as the Standard Contractual Clauses is implemented. We expect the existing legal complexity and uncertainty regarding international personal data transfers to continue, with changes to the regulatory landscape recently adopted or anticipated from the EU and other jurisdictions such as Switzerland and the U.K. We (and many other companies) have and may in the future be required to adopt additional measures to accomplish and maintain legitimate means for the transfer and receipt of personal data from the EU to the United States and other countries. As data protection authorities continue to issue ~~further~~ guidance and orders on personal data export mechanisms ~~and/~~or ~~continue~~take ~~taking~~ enforcement action, we could suffer additional costs, complaints, ~~and/or~~ regulatory investigations, or fines,. ~~and/or~~If if we are ~~otherwise~~ unable to transfer personal data between and among countries and regions in which we operate, it could affect the manner in which we provide our services, the geographical location or segregation of our relevant systems and operations, and could adversely affect our financial results.

WeFurther, we may experience hesitancy, reluctance, or refusal by European or multi-national customers to continue to use our products due to the potential risk exposure to such customers as a result of such developments and the data protection obligations imposed on them by various data protection authorities. Such customers may also view any alternative approaches to the transfer of any personal data as being too costly, too burdensome, or otherwise objectionable, and therefore may decide not to do business with us.

Given the nature of our cloud-based products and the current data protection landscape in the EU, we may be subject to greater risk of potential inquiries and/or enforcement actions from regulators. We may find it necessary to establish alternative systems to maintain EEA personal data within the EEA, which may involve substantial expense and may cause us to need to divert resources from other aspects of our business, all of which may adversely affect our results from operations. Further, any inability to adequately address privacy concerns in connection with our cloud-based services, or comply with applicable privacy or data protection laws, regulations, and policies, could result in additional cost and liability to us, including fines and harm to our reputation, and adversely affect our ability to offer cloud-based services.29

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InGiven ~~addition,~~the asnature weof ~~are~~our ~~subject~~cloud-based toproducts and the ~~supervision~~current ~~of relevant~~ data protection ~~authorities~~landscape ~~under~~in ~~both~~ the ~~GDPR and United Kingdom’s General Data Protection Regulation (“U.K. GDPR”)~~EU, we ~~could~~may be ~~fined~~subject ~~under~~to ~~each~~greater ofrisk ~~those regimes independently in respect~~ of ~~the~~potential ~~same~~inquiries ~~breach. The U.K. GDPR mirrors the data protection obligations~~ and/or ~~fines~~enforcement ~~under~~actions ~~the~~from ~~GDPR,~~regulators. ~~but~~We ~~there~~ may befind ~~further~~it ~~developments~~necessary ~~causing the obligations and fines~~ to ~~diverge,~~establish ~~which~~alternative ~~could~~systems ~~cause our cost of and risks associated with compliance~~ to ~~increase.~~maintain ~~Anticipated~~EEA ~~further~~personal ~~evolution~~data ofwithin EUthe ~~and~~EEA, ~~U.K.~~which ~~regulations~~may oninvolve ~~data~~substantial ~~privacy~~expense and ~~security~~may ~~and~~cause ~~any~~us ~~related changes~~ to ~~the~~divert ~~regulatory~~resources ~~framework~~from ~~in these or~~ other ~~countries~~aspects ~~may~~of ~~increase substantially~~ our ~~risk~~business, ~~exposure~~all toof ~~the penalties to~~ which wemay ~~could~~adversely beaffect ~~subject~~our inresults ~~the~~from ~~event~~operations. ofFurther, any ~~non-compliance.~~inability Weto ~~may~~adequately ~~incur~~address ~~substantial~~privacy ~~expense~~concerns in ~~complying~~connection with ~~the~~our ~~new~~cloud-based ~~obligations~~services, toor becomply ~~imposed~~with byapplicable ~~new~~privacy ~~regulations~~or ~~and~~data ~~interpretations~~protection oflaws, ~~existing~~ regulations, and wepolicies, ~~may~~could beresult ~~required~~in toadditional ~~make~~cost ~~significant~~and ~~changes~~liability to ~~our~~us, ~~software~~including ~~applications~~fines and ~~expanding~~harm ~~business~~to ~~operations~~our reputation, ~~all~~and ~~of which may~~ adversely affect our ~~results~~ability ofto ~~operations~~offer cloud-based services.

In addition, as we are subject to the supervision of relevant data protection authorities under both the GDPR and United Kingdom’s General Data Protection Regulation (“U.K. GDPR”), we could be fined under each of those regimes independently in respect of the same breach. There may be further developments under the U.K. GDPR, independent of the GDPR, that could cause our cost of and risks associated with compliance to increase. Further evolution of EU and U.K. regulations on data privacy and security and any related changes to the regulatory framework in these or other countries may substantially increase our risk exposure to the penalties to which we could be subject in the event of any non-compliance. We may incur substantial expense in complying with the new obligations to be imposed by new regulations and interpretations of existing regulations and we may be required to make significant changes to our software applications and expanding business operations, all of which may adversely affect our results of operations.

Assertions by third parties of infringement or other violation by us of their intellectual property rights could result in significant costs and substantially harm our business and results of operations.

The software industry is characterized by the existence of a large number of patents and frequent claims and related litigation regarding patents and other intellectual property rights. In particular, leading companies in the software industry own large numbers of patents, copyrights, trademarks, and trade secrets, which they may use to assert claims against us. From time to time, third parties holding such intellectual property rights, including leading companies, competitors, patent holding companies, and/or non-practicing entities, may assert patent, copyright, trademark, or other intellectual property claims against us, our customers and partners, and those from whom we license technology and intellectual property.

Although we believe that our products do not infringe upon the intellectual property rights of third parties, we cannot assure that we are not infringing or otherwise violating any third-party intellectual property rights or that third parties will not assert infringement or misappropriation claims against us with respect to current or future products, or that any such assertions will not require us to enter into royalty arrangements, result in costly litigation, or result in us being unable to use certain intellectual property. Infringement assertions from third parties may involve patent holding companies or other patent owners who have no relevant product revenue, and therefore our own issued and pending patents may provide little or no deterrence to these patent owners in bringing intellectual property rights claims against us.

Legal questions related to ownership of intellectual property rights in output generated by generative artificial intelligence models, as well as the rights of developers of artificial intelligence or machine learning models to train such models on third-party data, have not been fully addressed by competent legal tribunals or applicable laws or regulations in all applicable jurisdictions. Further, the use or adoption of third-party AI technologies, including generative AI technologies, into our products may result in exposure to claims of copyright infringement or other intellectual property-related causes of action. While some providers of AI technologies may offer to indemnify their end users for any copyright or other intellectual property infringement claims arising from the output of their AI technologies, we may not be successful in adequately recovering our losses in connection with such claims.

If we are forced to defend against any infringement or misappropriation claims, whether they are with or without merit, are settled out of court, or are determined in our favor, we may be required to expend significant time and financial resources on the defense of such claims. Furthermore, an adverse outcome of a dispute may require us to pay damages, potentially including treble damages and attorneys’ fees, if we are found to have willfully infringed a party’s intellectual property; cease making, licensing, or using our products that are alleged to infringe or misappropriate the intellectual property of others; expend additional development resources to redesign our products; enter into potentially unfavorable royalty or license agreements in order to obtain the right to use necessary technologies or works; and to indemnify our partners, customers, and other third parties. Any of these events could seriously harm our business, results of operations, and financial condition.

Failure to protect our intellectual property could substantially harm our business and results of operations.

Our success depends in part on our ability to enforce and defend our intellectual property rights. We rely upon a combination of trademark, trade secret, copyright, patent, and unfair competition laws, as well as license agreements and other contractual provisions, to do so.

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We have filed, and may in the future file, patent applications related to certain of our innovations. We do not know whether those patent applications will result in the issuance of a patent or whether the examination process will require us to narrow our claims. In addition, we may not receive competitive advantages from the rights granted under our patents and other intellectual property. Our existing patents and any patents granted to us or that we otherwise acquire in the future, may be contested, circumvented, or invalidated, and we may not be able to prevent third parties from infringing these patents. Therefore, the extent of the protection afforded by these patents cannot be predicted with certainty. In addition, given the costs, effort, risks, and downside of obtaining patent protection, including the requirement to ultimately disclose the invention to the public, we may choose not to seek patent protection for certain innovations; however, such patent protection could later prove to be important to our business.

We also rely on several registered and unregistered trademarks to protect our brand. Nevertheless, competitors may adopt service names similar to ours, or purchase our trademarks and confusingly similar terms as keywords in internet search engine advertising programs, thereby impeding our ability to build brand identity and possibly leading to confusion in the marketplace. In addition, there could be potential trade name or trademark infringement claims brought by owners of other registered trademarks or trademarks that incorporate variations of our trademarks. Any claims or customer confusion related to our trademarks could damage our reputation and brand and substantially harm our business and results of operations.

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We attempt to protect our intellectual property, technology, and confidential information by generally requiring our employees and consultants to enter into confidentiality agreements and assignment of inventions agreements and third parties to enter into nondisclosure agreements, all of which offer only limited protection. These agreements may not effectively prevent unauthorized use or disclosure of our confidential information, intellectual property or technology and may not provide an adequate remedy in the event of unauthorized use or disclosure of our confidential information, intellectual property, or technology. Despite our efforts to protect our confidential information, intellectual property, and technology, unauthorized third parties may gain access to our confidential proprietary information, develop and market services or products similar to ours, or use trademarks similar to ours, any of which could materially harm our business and results of operations. In addition, others may independently discover our trade secrets and confidential information, and in such cases, we could not assert any trade secret rights against such parties. Existing United States federal, state, and international intellectual property laws offer only limited protection. The laws of some foreign countries do not protect our intellectual property rights to as great an extent as the laws of the United States, and many foreign countries do not enforce these laws as diligently as governmental agencies and private parties in the United States. Moreover, policing our intellectual property rights is difficult, costly, and may not always be effective.

From time to time, legal action by us may be necessary to enforce our patents and other intellectual property rights, to protect our trade secrets, to determine the validity and scope of the intellectual property rights of others, or to defend against claims of infringement or invalidity. Such litigation could result in substantial costs and diversion of resources and could negatively affect our business, reputation, results of operations, and financial condition. If we are unable to protect our technology and to adequately maintain and protect our intellectual property rights, we may find ourselves at a competitive disadvantage to others who need not incur the additional expense, time, and effort required to create the innovative products that have enabled us to be successful to date.

We and our customers rely on technology and intellectual property of third parties, the loss of which could limit the functionality of our products and disrupt our business.

We use technology and intellectual property licensed from unaffiliated third parties in certain of our products, and we may license additional third-party technology and intellectual property in the future. Any errors, defects, or security issues in this third-party technology and intellectual property or the integration of third-party technology and intellectual property with our products could result in errors that could harm our brand and business. Though we have not experienced resulting impact to date, recent industry incidents, such as the CrowdStrike incident, involving vulnerabilities in third-party technology, underscore the potential risks associated with the use of third-party technology and intellectual property. Moreover, licensed technology and intellectual property may not continue to be available on commercially reasonable terms, or at all, or otherwise will be subject to restrictions that under applicable law could adversely affect our proprietary software. The loss of the right to license and distribute this third-party technology could limit the functionality of our products and might require us to redesign our products.

In addition, our Guidewire cloud offerings rely on third-party hosting and infrastructure services provided by AWS and other service providers, for the continuous, reliable, and secure operation of servers, related hardware and software, and network infrastructure. A prolonged AWS service disruption or slowdown for any reason could damage our reputation with current and potential customers, expose us to liability, cause us to lose customers, or otherwise harm our business.

Some of our products and technologies may use “open source” software, which may restrict how we use or distribute our services or require that we release the source code of certain products subject to those licenses.

Some of our products and technologies may incorporate software licensed under so-called “open source” licenses. In addition to risks related to license requirements, usage of open source software can lead to greater risks than use of third-party commercial software, as open source licensors generally do not provide warranties or controls on origin of the software. Additionally, some open source licenses require that source code subject to the license be made available to the public and that any modifications or derivative works to open source software continue to be licensed under open source licenses. These open source licenses typically mandate that proprietary software, when combined in specific ways with open source software, become subject to the open source license. If we combine our proprietary software in such ways with open source software, we could be required to release the source code of our proprietary software. Further, this third-party technology and intellectual property has the potential for security-related concerns, given that we do not create or maintain such third-party technology and intellectual property that may be exposed to unknown future security risks.

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We take steps to ensure that our proprietary software is not combined with, and does not incorporate, open source software in ways that would require our proprietary software to be subject to many of the restrictions in an open source license. However, few courts have interpreted open source licenses, and the manner in which these licenses may be interpreted and enforced is therefore subject to some uncertainty. Additionally, we rely on hundreds of software programmers to design our proprietary technologies, and although we take steps to prevent our programmers from including objectionable open source software in the technologies and software code that they design, write and modify, we do not exercise complete control over the development efforts of our programmers and we cannot be certain that our programmers have not incorporated such open source software into our proprietary products and technologies or that they will not do so in the future. In the event that portions of our proprietary technology are determined to be subject to an open source license, we could be required to publicly release the affected portions of our source code, re-engineer all or a portion of our technologies, or otherwise be limited in the licensing of our technologies, each of which could reduce or eliminate the value of our services and technologies and materially and adversely affect our business, results of operations, and prospects.

We may be obligated to disclose our proprietary source code to our customers, which may limit our ability to protect our intellectual property and could reduce the renewals of our support services.

Our software license agreements typically contain provisions permitting the customer to become a party to, or a beneficiary of, a source code escrow agreement under which we place the proprietary source code for our applicable products in escrow with a third party. Under these escrow agreements, the source code to the applicable product may be released to the customer, typically for its use to maintain, modify, and enhance the product, upon the occurrence of specified events, such as our filing for bankruptcy, discontinuance of our support services, and breaching our representations, warranties, or covenants of our agreements with our customers. Additionally, in some cases, customers have the right to request access to our source code upon demand. Some of our customers have obtained the source code for certain of our products by exercising this right, and others may do so in the future.

Disclosing the content of our source code may limit the intellectual property protection we can obtain or maintain for that source code or the products containing that source code and may facilitate intellectual property infringement claims against us. It also could permit a customer to which a product’s source code is disclosed to support and maintain that software product without being required to purchase our support services. Each of these could harm our business, results of operations, and financial condition.

Risks Related to Legal, Regulatory, Accounting, and Tax Matters

~~The~~Changes ~~nature~~in ofaccounting ~~our~~standards ~~business~~or ~~requires~~our ~~the application of~~ accounting ~~guidance that requires management to make~~ estimates, ~~and~~or ~~assumptions.~~variability ~~Reported~~between ~~results under United States Generally Accepted Accounting Principles (“~~GAAP”) ~~may~~results ~~vary~~and ~~from~~ key metrics ~~used to measure our business. Additionally~~, ~~changes in accounting guidance~~ may ~~cause~~adversely usaffect ~~to experience greater volatility in~~ our ~~quarterly~~operating ~~and annual~~ results. ~~If we are unsuccessful in adapting to~~ and ~~interpreting the requirements of new guidance, or in clearly explaining to stockholders how new guidance affects reporting of our results of operations, our~~ stock price ~~may decline~~.

We prepare our consolidated financial statements to conform to United States Generally Accepted Accounting Principles (“GAAP”). These accounting principles are subject to interpretation by the SEC, Financial Accounting Standards Board (“FASB”), and various bodies formed to interpret and create accounting rules and regulations. Accounting standards, or the guidance relating to interpretation and adoption of standards, could have a significant effect on our financial results and could affect our business. Additionally, the FASB and the SEC are focused on the integrity of financial reporting, and our accounting policies are subject to scrutiny by regulators and the public. We cannot predict the impact of future changes to accounting principles or our related accounting policies on our financial statements going forward. If we are unsuccessful in adapting to the requirements of any new standard, or if changes to our business model create new risks, then we may experience greater volatility in our quarterly and annual results, which may cause our stock price to decline.

WeIn ~~cannot~~addition, ~~predict~~GAAP ~~the~~requires ~~impact~~management ofto ~~future~~make ~~changes~~estimates toand ~~accounting~~assumptions ~~principles~~that oraffect ~~our~~the ~~related~~amounts ~~accounting~~reported ~~policies~~in onthe ~~our~~consolidated financial statements ~~going forward~~. InWere ~~addition, were~~ we to change our accounting estimates, including those related to the timing of revenue recognition and those used to allocate revenue between various performance obligations, our reported revenue and results of operations could be significantly impacted. IfWe webase ~~are~~our ~~unsuccessful~~estimates inon ~~adapting~~historical toexperience ~~the~~and ~~requirements~~on ofvarious ~~any~~other ~~new~~assumptions ~~standard,~~that orwe ifbelieve ~~changes~~ to ~~our~~be ~~go-to-market~~reasonable ~~strategy~~under ~~create~~the ~~new risks~~circumstances, ~~then~~the weresults ~~may~~of ~~experience~~which ~~greater~~form ~~volatility~~the inbasis ~~our~~for ~~quarterly~~making ~~and~~judgments ~~annual~~about ~~results~~the carrying values of assets, ~~which~~liabilities, ~~may~~equity, ~~cause~~revenue, ~~our~~and ~~stock~~expenses ~~price~~that toare ~~decline~~not readily apparent from other sources.

~~In addition~~Further, ~~GAAP~~revenue ~~requires~~recognition ~~management~~standards torequire ~~make~~significant ~~estimates~~judgment and ~~assumptions~~estimates that ~~affect~~impact ~~the~~our ~~amounts~~ reported inrevenue ~~the~~and ~~consolidated~~results ~~financial~~of ~~statements~~operations. WeAdditionally, ~~base~~reported ~~our~~revenue ~~estimates~~has onand ~~historical~~will ~~experience~~vary from ARR, a non-GAAP metric, and oncash ~~various~~flow ~~other~~associated ~~assumptions~~with ~~that~~each wecustomer ~~believe~~agreement. toFor beexample, ~~reasonable~~for ~~under~~some ~~the~~arrangements ~~circumstances~~with multiple performance obligations, ~~the~~a ~~results~~portion of ~~which~~recurring ~~form~~license ~~the~~and ~~basis~~support or subscription contract value is allocated to services revenue for ~~making~~revenue ~~judgments~~recognition ~~about~~purposes, but does not get allocated for purposes of calculating ARR. This revenue allocation only impacts the ~~carrying~~initial ~~values~~term of ~~assets,~~the ~~liabilities,~~contract. ~~equity~~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, ~~and~~but ~~expenses~~our ~~that~~reported ~~are~~ARR amount would not ~~readily~~be ~~apparent~~impacted. ~~from~~This ~~other~~potential ~~sources.~~difference and variability in the trends of reported amounts may cause volatility in our stock price.

Further, revenue recognition standards require significant judgment and estimates that impact our reported revenue and results of operations. Additionally, reported revenue has and will vary from ARR, a non-GAAP metric, and cash flow associated with each customer agreement. For example, for 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 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 32

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not be impacted. This potential difference and variability in the trends of reported amounts may cause volatility in our stock price.

If we fail to maintain effective internal control over financial reporting or identify a material weakness in our internal control over financial reporting, our ability to report our financial condition and results of operations in a timely and accurate manner could be adversely affected, investor confidence in our Company could diminish, and the value of our common stock may decline.

Preparing our consolidated financial statements involves a number of complex manual and automated processes, which are dependent upon individual data input or review and require significant management judgment. One or more of these processes may result in errors that may not be detected and could result in a material misstatement of our consolidated financial statements. The Sarbanes-Oxley Act ~~of 2002 (the “Sarbanes-Oxley Act”)~~ requires, among other things, that as a publicly traded company we disclose whether our internal control over financial reporting and disclosure controls and procedures are effective.

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

While we continually undertake steps to improve our internal control over financial reporting as our business changes, we may not be successful in making the improvements and changes necessary to be able to identify and remediate control deficiencies or material weaknesses on a timely basis. If we are unable to successfully remediate any future material weaknesses in our internal control over financial reporting, the accuracy and timing of our financial reporting may be adversely affected; our liquidity, access to capital markets and perceptions of our creditworthiness may be adversely affected; we may be unable to maintain compliance with securities laws, stock exchange listing requirements and debt instruments covenants regarding the timely filing of periodic reports; we may be subject to regulatory investigations and penalties; investors may lose confidence in our financial reporting; we may suffer defaults under our debt instruments; and our stock price may decline.

If tax laws change or we experience adverse outcomes resulting from examination of our income tax returns, it could adversely affect our results of operations.

We are subject to federal, state, and local income taxes in the United States and in foreign jurisdictions. Our future effective tax rates and the value of our deferred tax assets could be adversely affected by changes in, interpretations of, and guidance regarding tax laws, including impacts of the Tax Cuts and Jobs Act of 2017, the Coronavirus Aid, Relief, Economic Security Act of 2020, the Inflation Reduction Act of 2022, the One Big Beautiful Bill Act of 2025, and certain OECD proposals, including the implementation of the global minimum tax under the Pillar Two model rules.

In addition, we are subject to the examination of our income tax returns by the IRS and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from such examinations to determine the adequacy of our provision for income taxes. Significant judgment is required in determining our worldwide provision for income taxes. Although we believe we have made appropriate provisions for taxes in the jurisdictions in which we operate, changes in the tax laws or challenges from tax authorities under existing tax laws could adversely affect our business, results of operations, or financial condition.

Risks Related to Ownership of Our Common Stock

Our stock price may be volatile, which could result in securities class action litigation against us.

The market price of our common stock could be subject to wide fluctuations in response to, among other things, the risk factors described in this report, the timing and amount of any share repurchases by us, and other factors beyond our control, such as fluctuations in the valuation of companies perceived by investors to be comparable to us and research analyst coverage about our business.

Furthermore, the stock markets have experienced price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political, and market conditions, such as recessions, interest rate changes, inflation or deflation, armed conflict, international currency fluctuations, tariffs, or other global events have and may continue to affect the market price of our common stock.

In the past, we and many companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation and we may become the target of complaints of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert our management’s attention from our business, which could seriously harm our business, results of operations, and financial condition.

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We currently do not intend to pay dividends on our common stock and, consequently, the only opportunity to achieve a return on investment is if the price of our common stock appreciates.

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We currently do not plan to declare dividends on shares of our common stock in the foreseeable future. Consequently, the only opportunity to achieve a return on investment in our Company will be if the market price of our common stock appreciates and shares are sold at a profit.

Certain provisions of our certificate of incorporation and bylaws and of Delaware law could prevent a takeover that stockholders consider favorable and could also reduce the market price of our stock.

Our amended and restated certificate of incorporation and our amended and restated bylaws contain provisions that could delay or prevent a merger, acquisition, or other change in control that stockholders may consider favorable, including transactions in which stockholders might otherwise receive a premium for their shares. These provisions may also prevent or delay attempts by stockholders to replace or remove our current management or members of our board of directors. These provisions include:

•not providing for cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;

•authorizing our board of directors to issue, without stockholder approval, preferred stock rights senior to those of common stock, which could be used to significantly dilute the ownership of a hostile acquirer;

•prohibiting stockholder action by written consent, which forces stockholder action to be taken at an annual or special meeting of our stockholders;

•limiting the persons who may call special meetings of stockholders, which could delay the ability of our stockholders to force consideration of a proposal or to take action, including the removal of directors; and

•requiring advance notification of stockholder nominations and proposals, which may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of us.

The affirmative vote of the holders of at least a majority of our shares of capital stock entitled to vote is generally necessary to amend or repeal the above provisions that are contained in our amended and restated certificate of incorporation. Also, absent approval of our board of directors, our amended and restated bylaws may only be amended or repealed by the affirmative vote of the holders of at least 50% of our shares of capital stock entitled to vote.

In addition, we are subject to the provisions of Section 203 of the Delaware General Corporation Law. These provisions may prohibit large stockholders, in particular those owning 15% or more of our outstanding common stock, from engaging in certain business combinations without approval of substantially all of our stockholders for a certain period of time.

These and other provisions in our amended and restated certificate of incorporation, our amended and restated bylaws, and under Delaware law could discourage potential takeover attempts, reduce the price that investors might be willing to pay for shares of our common stock in the future, and result in the market price of our shares being lower than it would be without these provisions.

Our amended and restated bylaws designate certain state or federal courts as the exclusive forum for certain litigation that may be initiated by our stockholders, which could limit stockholders’ ability to obtain a favorable judicial forum for disputes with us.

Our amended and restated bylaws provide that, unless we consent in writing to the selection of an alternative forum, to the fullest extent permitted by law, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for any state law claim for:

•any derivative action or proceeding brought on our behalf;

•any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, or other employees to us or our stockholders;

•any action asserting a claim arising pursuant to the Delaware General Corporation Law, our amended and restated certificate of incorporation or our amended and restated bylaws; or

•any action asserting a claim that is governed by the internal affairs doctrine (the “Delaware Forum Provision”).

The Delaware Forum Provision will not apply to any causes of action arising under the Securities Act or the Exchange Act. Further, our amended and restated bylaws provide that, unless we consent in writing to the selection of an alternative forum, the United States District Court for the Northern District of California will be the sole and exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act (the “Federal Forum Provision”), as we are based in the State of California. In addition, our amended and restated bylaws provide that any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock is deemed to have notice of and consented to the Delaware Forum Provision and the Federal Forum Provision;

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United States District Court for the Northern District of California will be the sole and exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act (the “Federal Forum Provision”), as we are based in the State of California. In addition, our amended and restated bylaws provide that any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock is deemed to have notice of and consented to the Delaware Forum Provision and the Federal Forum Provision; provided, however, that stockholders cannot and will not be deemed to have waived our compliance with the U.S. federal securities laws and the rules and regulations thereunder.

The Delaware Forum Provision and the Federal Forum Provision in our amended and restated bylaws may impose additional litigation costs on stockholders in pursuing any such claims. Additionally, these forum selection clauses may limit our stockholders’ ability to bring a claim in a judicial forum that they find favorable for disputes with us or our directors, officers or employees (including, without limitation, any claims in respect of stockholder nominations of directors as permitted under our amended and restated bylaws), which may discourage the filing of lawsuits against us and our directors, officers and employees, even though an action, if successful, might benefit our stockholders. In addition, while the Delaware Supreme Court ruled in March 2020 that federal forum selection provisions purporting to require claims under the Securities Act be brought in federal court are “facially valid” under Delaware law, there is uncertainty as to whether other courts will enforce our Federal Forum Provision. If the Federal Forum Provision is found to be unenforceable, we may incur additional costs associated with resolving such matters. The Federal Forum Provision may also impose additional litigation costs on stockholders who assert that the provision is not enforceable or invalid. The Court of Chancery of the State of Delaware and the United States District Court for the Northern District of California may also reach different judgments or results than would other courts, including courts where a stockholder considering an action may be located or would otherwise choose to bring the action, and such judgments may be more or less favorable to us than our stockholders.

We cannot guarantee that any share repurchase program will be fully consummated or it will enhance stockholder value, and share repurchases could affect the price of our common stock.

In September 2022, our board of directors authorized and approved a share repurchase program of up to $400.0 million of our outstanding common stock. As of July 31, ~~2024~~2025, $138.2 million of the share repurchase program remained available for future repurchases. Share repurchases under the program may be made from time to time, in the open market, in privately negotiated transactions and otherwise, at the discretion of management and in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act, and other applicable legal requirements. Such repurchases may also be made in compliance with Rule 10b5-1 trading plans entered into by us. The timing, pricing, and size of these repurchases will depend on a number of factors, including the market price of our common stock and general market and economic conditions. The share repurchase program does not obligate us to repurchase any dollar amount or number of shares, and the program may be suspended or discontinued at any time, which may result in a decrease in the price of our common stock. The share repurchase program could affect the price of our common stock, increase volatility, and diminish our cash reserves.

General Risk Factors

If we are unable to retain our personnel and hire and integrate additional skilled personnel, we may be unable to achieve our goals and our business will suffer.

Our future success depends upon our ability to continue to attract, train, integrate, and retain highly skilled employees, particularly our executive officers, sales and marketing personnel, professional services personnel, cloud operations personnel, and software engineers, especially personnel experienced in developing and delivering cloud-based offerings. ~~Additionally, our stakeholders expect us to have a culture that embraces diversity, inclusion, and belonging.~~ Our inability to attract and retain ~~diverse~~qualified employees and ~~qualified~~key personnel, or delays in hiring required personnel, ~~may~~including ~~seriously harm our business~~attrition, ~~results~~retention ~~of operations,~~ and ~~financial~~delay ~~condition.~~issues Ifdue ~~U.S. immigration policy related~~ to ~~skilled~~macroeconomic ~~foreign~~and ~~workers~~other ~~were~~factors ~~materially~~beyond ~~adjusted~~our control, ~~such~~may aseriously ~~change~~harm ~~could hamper~~ our ~~efforts to hire highly skilled foreign employees~~business, ~~including~~results ~~highly~~of ~~specialized engineers~~operations, ~~which~~and ~~would~~financial ~~adversely impact our business~~condition.

Any one of our executive officers and other key employees could terminate his or her relationship with us at any time. The loss of one or more of our executive officers or key employees, and any failure to have in place and execute an effective succession plan for key executive officers, could significantly delay or prevent us from achieving our business and/or development objectives and could disrupt or materially harm our business. Although we strive to reduce the challenges of any transition, failure to ensure effective transfer of knowledge and a smooth transition could disrupt or adversely affect our business, results of operations, financial condition, and prospects.

We face competition for qualified individuals from numerous software and other technology companies. Competition for qualified personnel is particularly intense in the San Francisco Bay Area, where our headquarters are located, though we also face significant competition in all of our domestic and foreign development centers. Further, significant amounts of time and resources are required to train technical, sales, services, operations, and other personnel. We may incur significant costs to attract, train, and retain such personnel, and we may lose new employees to our competitors or other technology companies before we realize the benefit of our investment after recruiting and training them.

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~~resources~~Also, ~~are~~to ~~required~~the toextent ~~train~~that ~~technical,~~we ~~sales,~~hire ~~services~~personnel from competitors, ~~operations~~we may be subject to allegations that such personnel have been improperly solicited or have divulged proprietary or other confidential information. In addition, we have a limited number of sales people and ~~other~~the ~~personnel~~loss of several sales people within a short period of time could have a negative impact on our sales efforts. We may ~~incur~~be ~~significant~~unable ~~costs~~ to attract, ~~train,~~ and retain ~~such~~suitably ~~personnel~~qualified individuals who are capable of meeting our growing technical, operational, and wemanagerial ~~may~~requirements, ~~lose~~including ~~new~~managing employees toand ~~our~~contractors ~~competitors~~remotely or ~~other~~in ~~technology~~a ~~companies~~hybrid ~~before~~environment, or we ~~realize~~may ~~the~~be ~~benefit~~required ofto ~~our~~pay ~~investment~~increased ~~after~~compensation ~~recruiting~~in ~~and~~order ~~training~~to ~~them~~do so.

Also, to the extent that we hire personnel from competitors, we may be subject to allegations that such personnel have been improperly solicited or have divulged proprietary or other confidential information. In addition, we have a limited number of sales people and the loss of several sales people within a short period of time could have a negative impact on our sales efforts. Additionally, current global events and recent economic conditions have increased attrition and decreased the number of available candidates for open positions, which has increased the time to identify and hire new employees. We may be unable to attract and retain suitably qualified individuals who are capable of meeting our growing technical, operational, and managerial requirements, including managing employees and contractors remotely or in a hybrid environment, or we may be required to pay increased compensation in order to do so.

Further, our ability to expand geographically depends, in large part, on our ability to attract, retain, and integrate managers with the appropriate skills to lead the local business and employees. Similarly, our profitability depends on our ability to effectively utilize personnel with the right mix of skills and experience to perform services for our customers, including our ability to transition employees to new assignments on a timely basis. If we are unable to effectively deploy our employees globally on a timely basis to fulfill the needs of our customers, our reputation could suffer and our ability to attract new customers may be harmed.

Because of the technical nature of our products and the dynamic market in which we compete, any failure to attract, integrate, and retain qualified direct sales, professional services, cloud operations, and product development personnel, as well as our contract workers, could harm our ability to generate sales, deliver consulting services, manage our customers’ cloud environments, or successfully develop new products and enhancements of existing products.

~~Our~~Servicing our indebtedness ~~related~~requires toa ~~our~~significant ~~Convertible~~amount ~~Senior~~of ~~Notes~~cash. isWe ~~due~~may ~~within~~not ~~twelve~~have ~~months.~~sufficient ~~Servicing~~cash flow from our ~~indebtedness~~business ~~requires~~to apay ~~significant~~our ~~amount~~substantial ofindebtedness, ~~cash.~~and Wewe may not have the ability to ~~use~~raise ~~significant~~the funds necessary to settle for cash conversions of the 2029 Convertible Senior Notes or to ~~pay~~repurchase ~~our~~the ~~indebtedness~~2029 Convertible Senior Notes upon a fundamental change, which could adversely affect our business and results of operations.

As of July 31, ~~2024~~2025, we had outstanding an aggregate principal amount of $~~400~~690.0 million of our ~~1.25%~~ Convertible Senior Notes, due ~~March~~November ~~2025~~2029. ~~(the~~In ~~“Convertible~~addition, ~~Senior~~we ~~Notes”)~~have available a $300.0 million senior revolving credit facility, arranged by a syndicate of financial institutions. Our indebtedness may increase our vulnerability to any generally adverse economic and industry conditions, and we and our subsidiaries may, subject to the limitations in the terms of our existing and future indebtedness, incur additional debt, secure existing or future debt, or recapitalize our debt. If we incur additional indebtedness, the risks related to our business would increase and our ability to service or repay our indebtedness may be adversely impacted.

~~Pursuant~~Before toNovember 1, ~~their terms~~2029, holders ~~may~~of ~~convert~~the ~~their~~2029 Convertible Senior Notes atwill ~~their~~have ~~option~~the ~~prior~~right to ~~the~~convert ~~scheduled~~their ~~maturities~~notes ofonly ~~their~~upon ~~Convertible~~the ~~Senior~~occurrence ~~Notes~~of ~~under~~ certain ~~circumstances.~~events, ~~Upon~~and ~~conversion~~on ofor after August 1, 2029, the 2029 Convertible Senior Notes, ~~unless~~become weconvertible ~~elect~~at toany ~~deliver~~time ~~solely~~at ~~shares~~the election of ~~our~~the ~~common~~holders ~~stock~~until tothe ~~settle~~close ~~such~~of ~~conversion~~business ~~(other~~on ~~than~~the ~~paying~~second ~~cash~~scheduled intrading ~~lieu~~day immediately preceding the maturity date of ~~delivering~~November ~~any~~1, ~~fractional~~2029. ~~share)~~Upon conversion of the 2029 Convertible Senior Notes, we will be obligated to make cash payments. In addition, holders of our 2029 Convertible Senior Notes will have the right to require us to repurchase their 2029 Convertible Senior Notes upon the occurrence of a fundamental change (as defined in the ~~Indenture,~~2029 ~~dated as of March 13, 2018, between the Company and U.S. Bank National Association, as trustee (the “Trustee”) (the “Base~~ Indenture”), ~~as amended and supplemented by the First Supplemental Indenture, dated as of March 13, 2018, between the Company and the Trustee (together with the Base Indenture, the “Indenture”))~~ at a repurchase price equal to 100% of the principal amount of the 2029 Convertible Senior Notes to be repurchased, plus accrued and unpaid interest, if any, to, but not including, the fundamental change purchase date. Although ~~it is our intention and~~ we ~~currently expect to~~ have the ~~ability~~option to settle the 2029 Convertible Senior Notes in either cash, ~~there~~or is a ~~risk~~combination ~~that~~of cash and shares, we may not have ~~enough~~sufficient available cash or be able to obtain financing at the time we are required to ~~make~~settle ~~repurchases~~the of2029 Convertible Senior Notes ~~surrendered therefor or Convertible Senior Notes being converted~~. ~~In addition~~Additionally, our ability to make payments may be limited by law, by regulatory authority, or by agreements governing our future indebtedness. Our failure to repurchase the 2029 Convertible Senior Notes at a time when the repurchase is required by the 2029 Indenture or to pay any cash payable on future conversions of the 2029 Convertible Senior Notes as required by such Indenture would constitute a default under such Indenture. A default under the 2029 Indenture or the fundamental change itself could also lead to a default under agreements governing our existing or future indebtedness. If the repayment of the related indebtedness were to be accelerated after any applicable notice or grace periods, we may not have sufficient funds to repay the indebtedness and ~~repurchase~~settle the 2029 Convertible Senior Notes or make cash payments upon conversions thereof.

Our ability to make scheduled payments of the principal and interest on our indebtedness when due or to make payments upon conversion or repurchase demands with respect to our 2029 Convertible Senior Notes, or to refinance our indebtedness as we may need or desire, depends on our future performance, which is subject to economic, financial, competitive, and other factors beyond our control. Our business may not continue to generate cash flow from operations in the future sufficient to satisfy our obligations under our existing indebtedness, and any future indebtedness we may incur, and to make necessary capital expenditures. If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as reducing or delaying investments or capital expenditures, selling assets, refinancing, or obtaining additional equity capital on terms that may be onerous or highly dilutive. Our ability to refinance existing or future indebtedness will depend on the capital markets and our financial condition at such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in a default on our existing or future indebtedness and have a material adverse effect on our business, results of operations, and financial condition.

Our revolving credit facility contains restrictive and financial covenants that may limit our operational flexibility. If we fail to meet our obligations under the credit facility, our operations may be interrupted and our business, results of operations, and financial condition could be adversely affected.

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~~obligations~~In ~~under~~December ~~our~~2024, ~~existing~~we ~~indebtedness~~entered into a five-year, $300.0 million senior revolving credit facility by and ~~any~~among ~~future~~us, ~~indebtedness~~certain weof ~~may~~our ~~incur~~subsidiaries, and certain lenders to ~~make~~fund ~~necessary~~working capital and general corporate purpose expenditures. IfThe werevolving ~~are~~credit ~~unable~~facility tocontains ~~generate~~customary ~~such~~conditions ~~cash~~to ~~flow~~borrowing, weevents ~~may~~of bedefault, ~~required~~covenants, toand ~~adopt~~consent ~~one~~requirements orand ~~more~~other ~~alternatives,~~provisions ~~such~~that asmay ~~reducing~~limit orour ~~delaying~~flexibility ~~investments~~to ortake ~~capital~~certain ~~expenditures,~~actions. ~~selling~~Covenants ~~assets~~include, ~~refinancing,~~but orare ~~obtaining~~not ~~additional~~limited ~~equity~~to, ~~capital~~restrictions on ~~terms~~our ~~that~~and ~~may~~certain beof ~~onerous~~our orsubsidiaries’ ~~highly dilutive. Our~~ ability to ~~refinance~~incur ~~existing~~indebtedness, orgrant ~~future~~liens, ~~indebtedness~~dispose ~~will~~of ~~depend~~assets, onmake ~~the~~certain ~~capital~~restricted ~~markets~~payments ~~and~~such ~~our~~as ~~financial~~distributions ~~condition~~to atholders ~~such~~of ~~time.~~our Wecapital ~~may~~stock ~~not~~or bethe ~~able~~capital tostock ~~engage~~of inour ~~any~~subsidiaries, ofshare ~~these~~repurchases, ~~activities~~make investments, or engage in ~~these~~transactions ~~activities~~with onour ~~desirable terms~~affiliates, ~~which~~and ~~could~~require ~~result~~us into maintain a ~~default~~minimum onconsolidated ~~our~~net ~~existing~~cash orinterest ~~future~~coverage ~~indebtedness~~ratio and ~~have~~ a ~~material~~maximum ~~adverse~~total ~~effect~~net onleverage ratio. Our obligations are guaranteed by our ~~business,~~material ~~results~~domestic subsidiaries and secured by substantially all of ~~operations~~our assets, ~~and~~including ~~financial~~intellectual ~~condition~~property assets.

~~Increased~~Various risks, uncertainties, and ~~complex~~events ~~scrutiny~~beyond our control could affect our ability to comply with these covenants in the future. Failure to comply with any of ~~environmental,~~the ~~social,~~covenants ~~and~~could ~~governance~~result ~~(“ESG”)~~in ~~matters~~a ~~may~~default ~~require~~under usthe credit facility. Such a default could permit lenders to ~~incur~~accelerate ~~additional~~the ~~costs~~maturity orof ~~otherwise~~outstanding ~~adversely~~amounts under our credit facility, if any, which in turn could result in adverse consequences that negatively impact our business, the market price for our common stock, and our ability to obtain other financing in the future.

Increased ~~investor,~~scrutiny ~~governmental,~~ and ~~societal~~varying ~~attention~~stakeholder ~~to and~~ expectations ~~around~~with ~~the~~respect ~~wide range of issues generally referred~~ to assustainability ~~ESG~~ matters ~~and~~may ~~our~~require ~~response~~us to ~~the~~incur ~~same,~~additional ~~may result in increased~~ costs ~~(including, but not limited to, increased costs related to compliance, stakeholder engagement and contracting), impact our reputation,~~ or otherwise ~~negatively~~adversely ~~affect~~impact our business ~~performance~~. In addition, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on ESG matters, while other organizations are pushing corporations not to focus on ESG matters in decision making. Both unfavorable ESG ratings and engaging in activities designed to improve such ratings could lead to negative investor sentiment toward us and/or our industry, which could have a negative impact on our access to and costs of capital. To the extent ESG matters negatively impact our reputation, we may also not be able to compete as effectively to recruit or retain employees. We may take certain actions in relation to ESG matters in response to stakeholder demand; however, such actions may be costly or be subject to numerous conditions that are outside our control, and we cannot guarantee that such actions will have the desired effect or outcome. Moreover, while we may create and publish voluntary disclosures regarding ESG matters (in particular, information related to sustainability, environmental and human capital matters) from time to time, many of the statements in such voluntary disclosures are based on certain expectations and assumptions that may or may not be representative of current or actual risks or events or forecasts of expected risks or events, including the costs associated therewith. Such expectations and assumptions are necessarily uncertain and may be prone to error or subject to misinterpretation given the long timelines involved and the lack of an established single approach to identifying, measuring and reporting on many sustainability, environmental and human capital matters. Such disclosures may also be at least partially reliant on third-party information that we have not independently verified or that otherwise cannot be independently verified.

~~Statements~~Increased ~~about~~scrutiny ~~our~~regarding ~~sustainability~~climate change, ~~environmental~~human capital, and ~~human~~other ~~capital~~sustainability ~~initiatives~~matters, ~~and~~as ~~goals~~well as our response to the same, may result in increased costs (including, but not limited to, increased costs related to compliance, stakeholder engagement and ~~progress~~contracting), ~~against~~impact ~~those~~our ~~goals~~reputation, or otherwise negatively affect our business performance. We engage in certain actions (including disclosures) to manage sustainability-related matters or respond to stakeholder expectations; however, such actions may be ~~based~~costly onor ~~standards~~be ~~for~~subject ~~measuring~~to ~~progress~~numerous conditions that are ~~still~~outside ~~developing~~our control, ~~internal~~and ~~controls~~we ~~and~~cannot ~~processes~~guarantee that ~~continue~~such toactions ~~evolve~~will have the desired effect or outcome. For example, many sustainability initiatives leverage data, methodologies, technologies, and/or ~~assumptions~~standards that are complex, subject to ~~change~~varying ininterpretations, ~~the~~and ~~future~~continuing to evolve. IfAs ~~our~~with ~~related~~other ~~data~~companies, ~~processing~~our approach is expected to continue to evolve as well, and ~~reporting~~we ~~are~~cannot ~~incomplete~~guarantee that our approach will align with the expectations or ~~otherwise~~interpretations ~~inaccurate~~of any particular stakeholder. Stakeholders (including policymakers) have varying, orand ifat wetimes ~~fail~~conflicting, expectations. We may face reputational damage (including impacts to ~~achieve~~any ~~progress~~related onratings) ~~certain~~or ~~metrics~~additional oncosts ain ~~timely~~the ~~basis,~~event our ~~reputation,~~sustainability ~~business,~~procedures ~~financial~~or ~~performance~~standards do not meet the standards set by various constituencies, and ~~growth~~any ~~could~~failure beto ~~adversely~~successfully ~~affected~~navigate competing stakeholder interests may also result in adverse impacts to our business.

In addition, we expect there will likely continue to be increasing levels of regulation, as policymakers in jurisdictions such as Europe, California, and ~~disclosure-related~~Australia ~~requirements~~are ~~with~~adopting ~~respect~~or toconsidering adopting various requirements regarding sustainability disclosures or actions. Such regulations are not uniform, ~~environmental~~which may increase the cost and ~~human~~complexity ~~capital~~of compliance, as well as associated risks. Moreover, both advocates and opponents of sustainability matters are increasingly resorting to a range of activism forms, including litigation, to advance their perspectives. Addressing stakeholder expectations and ~~increased~~regulatory ~~regulation~~requirements ~~will~~may ~~likely~~be ~~lead~~costly and any failure to ~~increased~~successfully ~~compliance~~navigate ~~costs~~such expectations, as well as ~~scrutiny~~evolving ~~that~~interpretations ~~could~~of ~~heighten~~any ~~all~~existing ofor ~~the~~new ~~associated~~governmental ~~risks~~laws ~~identified~~or requirements, may result in ~~this~~reputational ~~risk~~harm, ~~factor.~~loss ~~Such~~of ~~compliance~~customers ~~matters~~or ~~may~~contracts, ~~also~~regulatory ~~impact~~or investor engagement, or other adverse impacts to our business. Our customers and other stakeholders are also subject to many of these expectations and regulatory considerations, which may augment or result in additional risks that also could adversely impact our business, results of operations, or financial condition.

Global events have adversely affected, and may continue to adversely affect, our business, results of operations, and financial condition.

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Global events have adversely affected and may continue to adversely affect workforces, organizations, economies, and financial markets globally, leading to economic downturns, inflation, and increased market volatility. Ongoing conflicts such as the ~~wars~~war between ~~Israel~~Russia and ~~Hamas~~Ukraine, ~~and~~continued ~~between~~geopolitical ~~Russia~~instability ~~and~~in ~~Ukraine~~the Middle East, escalating tensions in the South China Sea, high interest rates, tariffs, financial instability and crises, pandemics, and supply chain issues have added to global economic and market volatility. Our past business and financial results, including our ARR growth rates, services revenue, and margins, have been adversely impacted due to the disruptions resulting from such events, and may be again in the future. Such global events have disrupted and may again disrupt the normal operations of our customers’ businesses and our SI partners’ businesses. The related impacts of global events on the global economy could decrease or delay technology spending and adversely affect demand for our products. Further, our sales and implementation cycles could increase, which could result in contract terms more favorable to customers and a potentially longer delay between incurring operating expenses and the generation of corresponding revenue, if any, or difficulty in accurately forecasting our financial results. Additionally, our customers may be unable to pay outstanding invoices or may request amended payment terms due to the economic impacts from such global events and related implementation delays. As a result of such developments and the related economic impact to our business, we may be required to record impairment related to our operating lease assets, investments, long-lived assets, or goodwill. Due to the continuing and evolving nature of such global events, it is not possible for us to accurately predict the duration or magnitude of the adverse impacts and effects on our business, results of operations, or financial condition. Further, to the extent global events adversely ~~affects~~affect our business, results of operations, or financial condition, it may also have the effect of heightening many of the other risks described in this “Risk Factors” section.

Our customers may defer or forego purchases of our products in the event of weakened global economic conditions, political transitions, and industry consolidation.

General worldwide economic conditions remain unstable, and prolonged economic uncertainties or downturns could harm our business, results of operations, or financial condition. In particular, global inflation concerns, ongoing conflicts such as the ~~wars~~war between ~~Israel~~Russia and ~~Hamas~~Ukraine, ~~and~~continued ~~between~~geopolitical ~~Russia~~instability ~~and~~in ~~Ukraine~~the Middle East, escalating tensions in the South China Sea, tariffs, and the occurrence of regional epidemics or a global pandemic and related public health measures, ~~and escalating tensions in the South China Sea,~~ have created and may continue to create global economic uncertainty in regions in which we have significant operations. These conditions may make it difficult for our customers and us to forecast and plan future business activities accurately, and could cause our customers to reevaluate their decision to purchase our products, which could delay and lengthen our sales cycles, delay or increase pricing pressures on services engagements, or result in cancellations of planned purchases. Moreover, during challenging economic times our customers may face issues in gaining timely access to sufficient credit, which could result in an impairment of their ability to make timely payments to us. If that were to occur, we may not receive amounts owed to us and may be required to record an accounts receivable allowance, which would adversely affect our financial results. A substantial downturn in the P&C insurance industry may cause firms to react to worsening conditions by reducing their capital expenditures, reducing their spending on information technology, delaying or canceling information technology projects, or seeking to lower their costs by renegotiating vendor contracts. Negative or worsening conditions in the general economy both in the United States and abroad, including conditions resulting from financial and credit market fluctuations, tariffs, and inflation, could cause a decrease in corporate spending on enterprise software in general, and in the insurance industry specifically, and negatively affect the rate of growth of our business.

Furthermore, the increased pace of consolidation in the P&C insurance industry may result in reduced overall spending on our products and professional services. Acquisitions of customers or potential customers can delay or cancel sales cycles or result in existing arrangements not being renewed and because we cannot predict the timing or duration of such acquisitions, our results of operations could be materially impacted.

Factors outside of our control, including, but not limited to, natural catastrophes, the geopolitical landscape, and terrorism may adversely impact the P&C insurance industry or third parties we rely on, preventing us from expanding or maintaining our existing customer base and harming our business. Our business is subject to the risks of earthquakes, fire, floods, and other natural catastrophic events~~, and to interruption by man-made problems such as computer viruses~~.

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Our customers are P&C insurers that have experienced, and will likely experience in the future, losses from catastrophes or terrorism that may adversely impact their businesses. Catastrophes that impact our business, our customers, or third parties we rely on can be caused by various events, including, without limitation, hurricanes, tsunamis, floods, typhoons, windstorms, earthquakes, hail, tornadoes, explosions, volcanic eruptions, severe weather, excessive heat, epidemics, pandemics, and fires. Climate change and other environmental factors are contributing to an increase in erratic weather patterns globally and intensifying the impact of certain types of catastrophes. Moreover, acts of terrorism, or armed conflict, or uncertainty in the geopolitical landscape, including ~~as a result of escalation in~~ the ongoing ~~conflicts~~war ~~such as the wars~~ between ~~Israel~~Russia and ~~Hamas~~Ukraine and ~~between~~continued ~~Russia~~geopolitical ~~and~~instability ~~Ukraine~~in the Middle East, as well as the escalation of tensions in the South China Sea, could cause disruptions to our business or our customers’ businesses or the economy as a whole. The risks associated with natural catastrophes, the geopolitical landscape, and terrorism are inherently unpredictable, and it is difficult to forecast the timing of such events or estimate the amount of losses they will generate. ~~Recently,~~Events ~~for~~such ~~example,~~as ~~various parts of the United States have suffered damage from Hurricane Idalia~~hurricanes, wildfires ~~in Maui~~, ~~Hawaii~~heatwaves, ~~and heatwaves affecting the Pacific Northwest~~earthquakes, ~~while Turkey~~ and ~~Syria~~flooding ~~experienced~~in ~~severe~~various ~~earthquakes,~~regions ~~Canada~~illustrate ~~faced~~the ~~wildfires,~~potential ~~and~~severity ~~Australia~~of ~~experienced~~such ~~wildfires~~occurrences and ~~flooding.~~their ~~The~~significant ~~combined~~impact ~~and expected effect of those losses~~ on P&C insurers ~~is significant~~. Such ~~losses and losses due to future~~ events may adversely impact our current or potential customers, which may prevent us from maintaining or expanding our customer base and increasing our revenue, as such events may cause customers to postpone purchases and professional service engagements or to discontinue existing projects.

Our corporate headquarters and a substantial portion of our operations are located in the San Francisco Bay Area, a region known for seismic activity, ~~and~~ rising ocean levels, and ~~near~~proximity anto ~~area~~areas ~~subject~~prone to severe ~~fire damage~~wildfires. A significant natural disaster, such as an earthquake, tsunami, ~~fire~~wildfire, flood or ~~flood~~significant power outage affecting the Bay Area, could have a material adverse impact on our business, results of operations, and financial condition.

In addition, our information technology systems are vulnerable to computer viruses, break-ins, and similar disruptions from unauthorized tampering, such as the recent CrowdStrike incident. To the extent that such disruptions result in delays or cancellations of customer orders or collections, or the deployment or availability of our products, our business, results of operations, and financial condition would be adversely affected.

Adverse developments affecting certain financial institutions, as well as the banking system as a whole, could negatively affect our current and projected business operations and our financial condition and results of operations.

Adverse developments that may affect certain financial institutions and the banking system as a whole, such as events involving liquidity that are either rumored or actual, have in the past and may in the future lead to bank failures and market-wide liquidity concerns. For example, in March 2023, Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation as receiver. Similarly, other institutions have been and may continue to be swept into receivership. Up until March of 2023, our primary banking partner in the United States was Silicon Valley Bank. Since such time, we have further diversified our banking relationships. In connection with such developments, we have not experienced any material adverse impact to our cash flow or to our current and projected business operations, financial condition, or results of operations. Although we are continuing to evaluate and diversify our banking relationships, uncertainty may remain over liquidity concerns in the broader financial services industry. As a consequence, our business, our business partners, or industry as a whole may be adversely impacted in ways that we cannot predict at this time. Further, a significant portion of our assets are held in cash, cash equivalent and marketable securities. If any financial uncertainty were to impact a broad segment of the financial services industry, our enterprise value and our future prospects could be harmed or otherwise negatively impacted.

Our revenue, results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Australian Dollar, British Pound, Canadian Dollar, Euro, Indian Rupee, ~~and~~Japanese Yen, New Zealand Dollar, Polish Zloty, and Swiss Franc.

The volatility of exchange rates depends on many factors that we cannot forecast with reliable accuracy. Although we believe our operating activities act as a natural hedge for a majority of our foreign currency exposure at the cash flow or operating income level because we typically collect revenue and incur costs in the currency of the location in which we provide our ~~software~~products and services, our relationships with our customers are long-term in nature so it is difficult to predict if our operating activities will provide a natural hedge in the future. In addition, because our contracts are characterized by large annual payments, significant fluctuations in foreign currency exchange rates that coincide with annual payments may affect our cash flows, revenue or financial results in such ~~quarter~~quarters. Our results of operations may also be impacted by transaction gains or losses related to revaluing certain current asset and liability balances that are denominated in currencies other than the functional currency of the entity in which they are recorded. Moreover, significant and unforeseen changes in foreign currency exchange rates may cause us to fail to achieve our stated projections for revenue, ARR, and operating income, which could have an adverse effect on our stock price. We expect global exchange rates for various currencies may be more volatile than normal as a result of ongoing conflicts, including the ~~wars~~war between ~~Israel~~Russia and ~~Hamas~~Ukraine, ~~and~~continued ~~between~~geopolitical ~~Russia~~instability ~~and~~in ~~Ukraine~~the Middle East, the escalation of tensions in the South China Sea, and related events. We will continue to experience fluctuations in foreign currency exchange rates, which, if material, may harm our revenue, ARR, or results of operations.

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~~related~~The ~~events.~~conversion Wefeature ~~will~~of ~~continue~~the to2029 ~~experience~~Convertible ~~fluctuations~~Senior inNotes ~~foreign currency exchange rates, which, if material,~~ may ~~harm~~adversely affect our ~~revenue,~~financial ~~ARR,~~condition orand results of operations.

~~The~~In the event the conditional conversion feature of the 2029 Convertible Senior Notes is triggered, ifthe holders thereof will be entitled under the terms of the 2029 Indenture to convert their 2029 Convertible Senior Notes at their option. As of July 31, 2025, the conditional conversion feature of our 2029 Convertible Senior Notes was not triggered. If the conditional conversion feature of the 2029 Convertible Senior Notes is triggered and one or more holders elect to convert their 2029 Convertible Senior Notes, ~~may~~we would be required to settle a portion or all of our conversion obligation through the payment of cash, which could adversely affect our ~~financial~~liquidity. ~~condition~~In ~~and~~addition, ~~results~~in certain circumstances, such as conversions by holders or redemption, we could be required under applicable accounting rules to reclassify all or certain of ~~operations~~the outstanding principal of such series of notes as a current rather than long-term liability, which would result in a material reduction of our net working capital.

InTransactions ~~the~~relating ~~event~~to ~~the conditional conversion feature of the notes is triggered, holders of~~ our 2029 Convertible Senior Notes ~~will~~may beaffect ~~entitled to convert~~ the ~~Convertible~~value Senior Notes at any time during specified periods at their option. If one or more holders elect to convert their Convertible Senior Notes, unless we elect to satisfy our conversion obligation by delivering solely shares of our common stock (other than paying cash in lieu of delivering any fractional share), we would be required to settle a portion or all of our conversion obligation through the payment of cash, which could adversely affect our liquidity.

~~Transactions~~The ~~relating~~conversion of some or all of the 2029 Convertible Senior Notes may dilute the ownership interests of existing stockholders to the extent we satisfy our conversion obligation by delivering shares of our common stock upon any conversion of such Convertible Senior Notes. Our 2029 Convertible Senior Notes may ~~affect~~become in the ~~value~~future convertible at the option of their holders under certain circumstances. If holders of our 2029 Convertible Senior Notes elect to convert their notes, in certain circumstances we will be required to settle our conversion obligation by delivering shares of our common stock, which would cause dilution to our existing stockholders.

~~The~~In ~~conversion~~connection ofwith ~~some~~the orissuance ~~all~~ of the 2029 Convertible Senior Notes, ~~would~~we ~~dilute~~entered ~~the~~into ~~ownership~~capped ~~interests~~call oftransactions ~~existing~~with ~~stockholders~~certain tofinancial institutions (collectively, the ~~extent~~“option wecounterparties”). ~~satisfy~~The ~~our~~capped ~~conversion~~call ~~obligation~~transactions byare ~~delivering~~expected ~~shares~~generally ofto reduce the potential dilution to our common stock upon any conversion of ~~such~~the ~~Convertible~~notes ~~Senior~~and/or ~~Notes.~~offset ~~Our~~any ~~Convertible~~cash ~~Senior~~payments ~~Notes~~we ~~may~~are ~~become~~required into ~~the~~make ~~future~~in ~~convertible~~excess atof the ~~option~~principal ofamount ~~their holders under certain circumstances. If holders~~ of ~~our~~converted ~~Convertible~~notes, ~~Senior~~as ~~Notes~~the ~~elect~~case tomay ~~convert their notes~~be, wewith ~~may~~such ~~settle~~reduction ~~our~~and/or ~~conversion~~offset ~~obligation~~subject ~~by delivering~~ to ~~them~~ a ~~significant number of shares of our common stock, which would cause dilution to our existing stockholders~~cap.

InFrom ~~connection~~time ~~with~~to ~~the~~time, ~~issuance of~~ the ~~Convertible~~option ~~Senior~~counterparties ~~Notes,~~or wetheir ~~entered~~respective ~~into~~affiliates ~~capped~~may ~~call~~modify ~~transactions~~their ~~with~~hedge ~~certain~~positions ~~financial~~by ~~institutions~~entering ~~(the~~into ~~“option~~or ~~counterparties”).~~unwinding ~~The~~various ~~capped~~derivative ~~call~~ transactions ~~are~~with ~~expected~~respect ~~generally~~ to ~~reduce~~our ~~the~~common ~~potential~~stock ~~dilution~~and/or topurchasing or selling our common stock ~~upon~~or ~~any~~other ~~conversion~~securities of ~~the~~ours ~~notes~~in ~~and/or~~secondary ~~offset~~market ~~any~~transactions ~~cash~~prior ~~payments we are required~~ to ~~make~~the inmaturity ~~excess~~ of the ~~principal~~2029 ~~amount~~Convertible ofSenior ~~converted~~Notes. ~~notes,~~Such asactivities ~~the~~could ~~case~~cause ~~may~~a ~~be,~~decrease ~~with~~in ~~such~~the ~~reduction~~market ~~and/or~~price ~~offset~~of ~~subject~~our tocommon ~~a cap~~stock.

From time to time, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivative transactions with respect to our common stock and/or purchasing or selling our common stock or other securities of ours in secondary market transactions prior to the maturity of the Convertible Senior Notes. This activity could cause a decrease in the market price of our common stock.

The accounting method for convertible debt securities that may be settled in cash, such as the Convertible Senior Notes, could have a material effect on our reported financial results.

In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which we adopted on August 1, 2022. The ASU simplifies the accounting for convertible instruments, and among other things, eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. When calculating diluted EPS, the if-converted method requires us to assume that convertible debt instruments (and any applicable conversion premium) are converted to common stock as of the beginning of the period presented regardless of the price of our stock in periods that we have net income. Additionally, the if-converted method does not allow us to offset the impact of our capped call transactions on the calculation. We expect that such calculations will negatively affect our reported diluted EPS in the periods that we have net income irrespective of actual conversion of the Convertible Senior Notes.

We are subject to counterparty risk with respect to the capped call transactions.

The option counterparties are financial institutions, and we will be subject to the risk that any or all of them might default under the capped call transactions. Our exposure to the credit risk of the option counterparties will not be secured by any collateral. Past and recent global economic conditions have resulted in the actual or perceived failure or financial difficulties of many financial institutions. If an option counterparty becomes subject to insolvency proceedings, we will become an unsecured creditor in those proceedings with a claim equal to our exposure at that time under the capped call transactions with such option counterparty. Our exposure will depend on many factors but, generally, an increase in our exposure will be correlated to an increase in the market price and in the volatility of our common stock. In addition, upon a default by an option counterparty, we may suffer adverse tax consequences and more dilution than we currently anticipate with respect to our common stock. We can provide no assurances as to the financial stability or viability of the option counterparties.

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Item 1B.Unresolved Staff Comments

Not applicable.

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Item 1C. Cybersecurity

Our products involve the collection, storage and processing of customer data (including, in some cases, personal data), and may provide business critical software and analytics necessary for our customers’ operations. Guidewire develops, implements, and maintains cybersecurity measures designed to safeguard our products and protect the confidentiality, integrity, and availability of our customer data and our confidential information.

Risk Management and Strategy

We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems, information, and products. Our cybersecurity risk management program includes a cybersecurity incident response plan.

We maintain various internationally recognized security certifications and aim to adopt best practices from industry-leading frameworks and standards for cybersecurity and cloud computing, including, without limitation, ISO 27001 certification, SOC 2, U.S. NIST Cybersecurity Framework (CSF), and the CIS Critical Security Controls. This does not imply that we have met any particular technical standards, specifications, or requirements, only that we use these frameworks, industry best practices, and standards as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business.

Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.

Our cybersecurity risk management program includes:

•risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, and our broader enterprise IT environment;

•an enterprise-wide security team principally responsible for managing our cybersecurity risk assessment processes, implementing and maintaining our security controls, and responding to cybersecurity incidents;

•the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security controls;

•cybersecurity awareness training of our employees, including incident response personnel, product development personnel, and senior management;

•a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and

•a third-party risk management process for service providers, suppliers, and vendors, including, among others, vetting, periodic monitoring, and the implementation of contractual safeguards to ensure adherence to our cybersecurity standards.

We have not identified risks from known cybersecurity threats to date, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. However, we face ongoing cybersecurity risks, including threats that might become more sophisticated and effective over time, and we cannot anticipate when or the extent to which cybersecurity incidents or breaches will materially affect the Company. Additional information on the cybersecurity risks we face is discussed in Part I, Item 1A, “Risk Factors.”

Governance

Our Board, by way of our Risk Committee, oversees management of cybersecurity and other information technology risks. The Risk Committee receives periodic reports from management on our cybersecurity risks and control structure. In addition, management updates the Risk Committee, as necessary, regarding cybersecurity incidents.

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The Risk Committee reports to the full Board regarding its activities, including those related to cybersecurity. The full Board also receives briefings from management on our cybersecurity risk management program. Board members receive reports on cybersecurity risks from our Chief Information Security Officer (“CISO”), internal security staff and/or external experts as part of the Board’s continuing education on topics that impact public companies.

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Our management team, including our CISO, is responsible for assessing and managing our material risks from cybersecurity threats. The team has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants. Our CISO has over 20 years of experience in the technology sector, including 18 years dedicated to information security. He has held multiple executive security roles in a large Fortune 500 company, overseeing product security, mergers and acquisitions security, marketplace security, and enterprise security. He holds a Bachelor of Science in Information Systems Management and a Masters of Business Administration.

Our management team will periodically receive information on our cybersecurity program designed to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include periodic briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in our information technology environment.

Item 2.Properties

Our corporate headquarters in San Mateo, California consists of approximately 79,000 square feet of space leased through June 2027. Our European headquarters in Dublin, Ireland consists of approximately 85,000 square feet of space leased through March 2032. As of July 31, ~~2024~~2025, we also lease facilities for our sales, services, development, operations and administrative activities in various locations in the United States and around the world, including in the Americas, Europe, and Asia-Pacific.

We believe that our facilities are suitable to meet our current needs. In the future, we may expand our facilities or add new facilities as we add employees and enter new geographic markets, and we believe that suitable additional or alternative space will be available as needed to accommodate any such growth. We expect to incur additional expenses in connection with any such new or expanded facilities.

Item 3.Legal Proceedings

From time to time we are involved in legal proceedings that arise in the ordinary course of our business. Any such proceedings, whether meritorious or not, could be time consuming, costly, and result in the diversion of significant operational resources and/or management time.

Although the outcomes of legal proceedings are inherently difficult to predict, we are not currently involved in any legal proceeding in which the outcome, in our judgment based on information currently available, is likely to have a material adverse effect on our business or financial position.

As described in Note 89 “Commitments and Contingencies” to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K, which is incorporated by reference herein, we are not party to any material pending legal proceedings.

Item 4.Mine Safety Disclosures

Not applicable.

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PART II

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Item 5.Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Our common stock is listed on the New York Stock Exchange under the symbol “GWRE.”

On July 31, ~~2024~~2025, the last reported sale price of our common stock on the New York Stock Exchange for fiscal year ~~2024~~2025 was $~~150~~226.0722 per share. As of July 31, ~~2024~~2025, we had 3231 holders of record of our common stock. The actual number of stockholders is greater than this number of record holders, and includes stockholders who are beneficial owners, but whose shares are held in street name by brokers and other nominees. This number of holders of record also does not include stockholders whose shares may be held in trust by other entities.

We have never declared or paid, and do not anticipate declaring or paying, any cash dividends on our common stock. Any future determination as to the declaration and payment of dividends, if any, will be at the discretion of our board of directors and will depend on then existing conditions, including our financial condition, operating results, contractual restrictions, capital requirements, business prospects, and other factors our board of directors may deem relevant.

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Performance Graph

This performance graph shall not be deemed “soliciting material” or to be “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any of our filings under the Securities Act of 1933 or the Exchange Act.

The following graph shows a comparison of the cumulative total return for our common stock, the NASDAQ Composite-Total Return Index and S&P Software & Services Select Industry Index for the period from July 31, ~~2019~~2020 through July 31, ~~2024~~2025. Such returns are based on historical results and are not intended to suggest future performance. Data for the NASDAQ Composite Total Return Index and S&P Software & Services Select Industry Index assume reinvestment of dividends.

	7/31/2019		7/31/2020		7/31/2021		7/31/2022		7/31/2023		7/31/2024
	7/31/2020		7/31/2021		7/31/2022		7/31/2023		7/31/2024		7/31/2025
Guidewire Software, Inc.	$	100.00	$	~~115~~97.2691	$	~~112~~66.8505	$	7672.1409	$	83127.0855	$	~~146~~192.9727
NASDAQ Composite-Total Return Index	$	100.00	$	~~132~~137.7853	$	~~182~~116.6296	$	~~155~~136.3163	$	~~181~~168.4391	$	~~224~~204.2914
S&P Software & Services Select Industry Index	$	100.00	$	~~118~~147.3780	$	~~175~~104.1747	$	123.6774	$	~~146~~135.4795	$	~~160~~162.9385

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Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities

None.

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Item 6.[Reserved]

Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes thereto included in Item 8 and the Risk Factors included in Item 1A of Part I of this Annual Report on Form 10-K. All information presented herein is based on our fiscal calendar. Unless otherwise stated, references in this Annual Report on Form 10-K to particular years or quarters refer to our fiscal years ended in July and the associated quarters of those fiscal years. We assume no obligation to revise or update any forward-looking statements for any reason, except as required by law.

We have elected to omit discussion on the earliest of the three years covered by the consolidated financial statements presented. Refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations located in our Form 10-K for the fiscal year ended July 31, ~~2023~~2024, filed on September 1816, ~~2023~~2024, for reference to discussion of the fiscal year ended July 31, ~~2022~~2023, the earliest of the three fiscal years presented.

Overview

Guidewire is the platform that property and casualty (“P&C”) insurers ~~trust~~rely on to engage with customers, innovate, and ~~grow~~operate more efficiently. Our platform combines core systems ~~leverage~~of ~~data~~record ~~and~~with ~~analytics~~digital, ~~digital~~analytics, and artificial intelligence (“AI”) capabilities. AsWe aserve ~~partner~~insurers toof ~~our~~all ~~customers~~sizes, weranging ~~continually~~from ~~evolve~~global carriers to ~~enable~~regional ~~their~~and ~~success~~local ~~and~~providers, ~~assist~~helping them innavigate ~~navigating~~ a rapidly changing insurance ~~market~~landscape.

Our foundational core products, ~~are~~ InsuranceSuite ~~Cloud,~~and InsuranceNow, ~~and~~are delivered primarily as cloud-based subscription services. Historically, InsuranceSuite has also been available for self-managed installations. These products ~~are~~serve as transactional systems of record, ~~that~~fully ~~support~~supporting ~~the entire~~ insurance ~~lifecycle~~operations, including ~~insurance~~ product definition, ~~distribution,~~policy ~~underwriting~~administration, ~~policyholder services, and~~ claims management. ~~We also sell digital engagement~~ and ~~analytics products~~billing. Our digital engagement products enable digital sales, omnichannel service, and enhanced claims experiences for policyholders, agents, vendor partners, and field personnel. Our analytics offerings enable insurers to manage data more effectively, gain insights into their business, drive operational efficiencies, and underwrite new and evolving risks. To support P&C insurers globally, we have localized, and will continue to localize, our suite of products for use in a variety of international regulatory, language, and currency environments.

~~InsuranceSuite~~In ~~Cloud~~addition, iswe aprovide ~~highly~~digital ~~configurable~~engagement ~~and~~products ~~scalable~~that ~~product,~~enable ~~delivered~~seamless assales, aomnichannel service, and ~~primarily~~enhanced ~~comprised~~claims ofexperiences ~~three~~for ~~core~~policyholders, ~~applications (PolicyCenter Cloud~~agents, ~~BillingCenter Cloud~~vendors, and ~~ClaimCenter~~field ~~Cloud)~~personnel. ~~that~~Our ~~can~~analytics beproducts ~~subscribed~~allow insurers to ~~separately~~manage orand ~~together.~~use ~~These~~data ~~applications~~more ~~are~~effectively, ~~built~~gain onbusiness ~~and~~insights, ~~optimized~~improve ~~for~~operational ~~our~~efficiency, ~~Guidewire Cloud Platform (“GWCP”) architecture~~ and ~~leverage~~underwrite ~~our~~emerging ~~in-house cloud operations team~~risks. ~~InsuranceSuite~~To ~~Cloud is designed to~~ support ~~multiple~~insurers ~~releases~~worldwide, ~~each~~we ~~year~~localize toour ~~ensure~~products ~~that cloud customers remain on the latest version and gain fast access~~ to ~~our~~address ~~innovation~~diverse ~~efforts.~~regulatory, ~~Additionally~~language, ~~InsuranceSuite Cloud embeds digital~~ and ~~analytics~~currency ~~capabilities natively into our platform~~requirements. ~~Most new sales and implementations are for InsuranceSuite Cloud.~~

~~InsuranceNow~~InsuranceSuite is a ~~complete,~~highly ~~cloud-based~~configurable ~~application~~and ~~that~~scalable ~~offers policy~~product, ~~billing~~delivered as a service, and ~~claims~~primarily ~~management~~comprised ~~functionality,~~of ~~plus~~three ~~pre-integrated~~core ~~document~~applications ~~production~~(PolicyCenter, ~~analytics~~ClaimCenter, and ~~other~~BillingCenter) ~~capabilities,~~ that ~~increases~~can ~~agility~~be ~~without~~subscribed ~~adding~~to ~~complexity~~separately or together. ~~InsuranceNow~~These isapplications ~~hosted~~are built on ~~AWS~~ and ~~managed~~optimized byfor our ~~internal~~Guidewire Cloud Platform (“GWCP”) architecture and leverage our in-house cloud operations team. InsuranceSuite is designed to support multiple releases each year to accelerate delivery of new capabilities and ensure that cloud customers remain on the latest version and gain fast access to our innovation efforts. Additionally, InsuranceSuite embeds digital and analytics capabilities natively into our platform. Most new sales and implementations are for InsuranceSuite.

~~InsuranceSuite~~InsuranceNow ~~for~~is ~~self~~a complete, cloud-~~managed~~based ~~installations~~application isthat ~~comprised~~offers ofpolicy ~~three~~administration, ~~core~~claims ~~applications~~management, ~~(PolicyCenter~~and billing functionality, ~~BillingCenter~~plus pre-integrated document production, analytics, and ~~ClaimCenter)~~other capabilities, that ~~can~~increases beagility ~~licensed~~without ~~separately~~adding orcomplexity. ~~together~~Like ~~and~~InsuranceSuite, ~~can~~InsuranceNow beis ~~deployed~~hosted on GWCP and ~~updated~~managed by our ~~customers~~internal cloud operations team. InsuranceNow is currently only available in the United States, and ~~their~~is ~~implementation~~generally ~~partners.~~suited to mid-market carriers and managing general agents whose needs are often not as complex as a typical InsuranceSuite customer.

~~Our~~We reach customers ~~range~~directly ~~from~~through ~~some~~our ofglobal ~~the~~sales ~~largest~~team and in partnership with third-party global ~~insurance~~system ~~companies~~integrators or(“SI’s”). ~~their~~Because ~~subsidiaries~~our platform is central to ~~predominantly~~insurers’ ~~national~~operations, orcustomer ~~local~~evaluation ~~insurers~~cycles ~~that~~are ~~serve~~often ~~specific~~extensive, ~~states~~particularly ~~and/~~when multiple products are involved or ~~regions.~~when ~~Our~~insurers ~~customer~~are ~~engagement~~moving isto ~~led~~GWCP byfor ~~our~~the ~~direct~~first ~~sales~~time. ~~team~~Sales ~~and~~processes ~~supported~~typically byinclude ~~our~~detailed ~~system~~due ~~integrator~~diligence ~~(“SI”)~~and ~~partners~~customer reference checks. WeOur ~~maintain~~growth ~~and~~depends ~~continue~~on tocontinuously ~~grow~~enhancing ~~our~~existing ~~sales~~products, ~~and~~introducing ~~marketing~~new ~~efforts~~capabilities, ~~globally~~ensuring efficient cloud operations, expanding local content, and ~~maintain~~providing ~~regional~~access ~~sales~~to ~~centers~~innovation ~~throughout~~through the ~~world.~~Guidewire Marketplace.

~~Because~~We sell our ~~platform~~products isprimarily ~~critical~~through tosubscription services for our ~~new~~platform and ~~existing~~cloud-delivered ~~customers’~~products. ~~businesses,~~We ~~their~~generally ~~decision-making~~price ~~and~~our ~~product~~subscription ~~evaluation~~services ~~process~~for isthe ~~thorough,~~core ~~which~~products ~~often~~based ~~results~~on inthe anamount ~~extended~~of ~~sales~~Direct ~~cycle.~~Written ~~These~~Premium ~~evaluation~~(“DWP”) ~~periods~~managed ~~can~~on ~~extend~~our ~~further~~platform, ifwith acertain ~~customer~~cloud-delivered ~~purchases~~products ~~multiple~~priced ~~products~~based on usage or isother ~~considering~~metrics. aInitial ~~move~~subscription toagreements aare ~~cloud-based~~generally ~~subscription~~five ~~for~~years ~~the~~in ~~first~~duration, ~~time~~with annual renewals thereafter. ~~Sales~~In tosome ~~new~~instances, we have customers ~~often~~that ~~involve~~sign ~~extensive~~contracts ~~customer~~with ~~due~~an ~~diligence~~initial ~~and~~term ~~reference~~of ~~checks.~~seven ~~The~~years ~~success~~or oflonger. ~~our~~Subscription ~~sales~~revenue ~~efforts~~is ~~relies~~recognized onratably ~~continued~~over ~~improvements~~the ~~and~~contract ~~enhancements~~term. toWe ~~our~~also ~~current~~offer ~~products~~term licenses, ~~the~~primarily ~~introduction~~for ofexisting ~~new~~on-premise ~~products~~customers, ~~efficient~~as ~~operation~~well ofas ~~our~~support ~~cloud~~and ~~infrastructure,~~professional ~~continued~~services. ~~development~~Support ofis ~~relevant~~typically ~~local~~priced ~~content~~as ~~and~~a ~~automated~~percentage ~~tools~~of ~~for~~license ~~updating~~fees ~~content~~and recognized ratably, ~~and~~while ~~successful~~most ~~implementations~~professional services are billed monthly on a time-and-materials ~~migrations~~basis.

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WeOver ~~sell~~the ~~our~~past ~~suite~~few ofyears, ~~products~~we ~~through~~have ~~subscription~~primarily ~~services~~been ~~for~~entering ~~our~~into ~~platform and~~ cloud-~~delivered products and term licenses for our self-managed products. We generally price our products~~ based ~~on the amount of Direct Written Premium (“DWP”) that will be managed by our products. Our~~ subscription, ~~term~~arrangements ~~license, and support fees are typically invoiced annually in advance. Subscription services are generally sold~~ with anour ~~initial~~new ~~term of between three~~ and five years with optional annual renewals commencing after the initial term. Subscription revenue is recognized on a ratable basis over the committed term, once all revenue recognition criteria are met including providing access to the service. Term licenses are primarily sold to existing ~~on-premise~~ customers, and ~~are~~we ~~typically~~anticipate ~~an initial commitment with optional renewals thereafter. We may enter into term license arrangements with our customers~~ that ~~have~~subscription ~~an initial term of more than one year or may renew license~~ arrangements ~~for~~will ~~longer~~continue ~~than one year. Term license revenue is typically recognized when software is made available~~ to ~~the~~be customer, provided that all other revenue recognition criteria have been met. Our support revenue is generally recognized ratably over the committed support term of the licensed software. Our support fees are typically priced as a ~~fixed~~significant ~~percentage~~majority of ~~the~~annual ~~associated~~new ~~license~~sales ~~fees~~going forward. We ~~also~~may ~~offer~~decide ~~professional~~to ~~services,~~change ~~both~~certain ~~directly~~contract ~~and~~terms ~~through~~in SInew ~~partners,~~arrangements to ~~help~~remain ~~our~~competitive ~~customers~~or ~~deploy,~~otherwise ~~migrate,~~meet ~~and~~market ~~utilize~~demands ~~our~~which ~~platform~~may ~~and~~impact ~~suite~~the ofway ~~products.~~we Arecognize ~~majority of our services~~ revenue ~~is billed monthly on a time~~ and/or ~~materials basis~~ARR.

Over the past few years, we have primarily been entering into cloud-based subscription arrangements with our new and existing customers, and we anticipate that subscription arrangements will be a significant majority of annual new sales going forward. We may decide to change certain contract terms in new arrangements to remain competitive or otherwise meet market demands which may impact the way we recognize revenue and/or ARR.

To extend our technology leadership in the global market and to drive operating efficiency, we continue to invest in product development and cloud operations to enhance and improve our current products, introduce new products, and advance our ability to securely and cost-effectively deliver our services in the cloud. Continued investment is critical as we seek to assist our customers in achieving their technology goals, maintain our competitive advantage, grow our revenue, expand internationally, and meet evolving customer demands. In certain cases, we may also acquire skills and technologies to manage our cloud infrastructure and accelerate our time to market for new products, solutions, and upgrades.

Our track record of success with customers and their implementations is central to maintaining our strong competitive position. We rely on our global services team and SI partners to ensure that teams with the right combination of product, business, and language skills are used in the most efficient way to meet our customers’ implementation and migration needs. We have extensive relationships with SI, consulting, technology, and other industry partners. Our network of partners has expanded as interest in and adoption of our platform has grown. We encourage our partners to co-market, pursue joint sales initiatives, and drive broader adoption of our technology, helping us grow our business more efficiently and enabling us to focus our resources on continued innovation and further enhancement of our solutions.

We work closely with our network of ~~third-party~~ SI partners to facilitate new sales and implementations of our products. Our partnership with leading SI partners allows us to increase efficiency and scale while reducing customer implementation and migration costs. We continue to invest time and resources to increase the number of qualified consultants employed by our SI partners, develop relationships with new partners in existing and new markets, and ensure that all SI partners are qualified to assist with implementing our products. We believe this model will continue to serve us well, and we intend to continue to expand our network of partners and the number of certified consultants with whom we work so we can leverage our SI partners more effectively, especially for future subscription migrations and implementations.

We face a number of risks in the execution of our strategy, including, but not limited to, risks related to ~~expanding~~fluctuations toin ~~new~~our ~~markets,~~results ~~managing~~due ~~lengthy~~to ~~sales~~factors ~~cycles,~~largely ~~competing~~outside ~~effectively~~of inour ~~the global market~~control, ~~relying~~reliance on sales to a relatively small number of large customers, ~~developing~~and ~~new~~the orrelated ~~acquiring~~substantial ~~existing~~negotiating ~~products~~leverage ~~successfully~~of these customers, ~~making~~lengthy ~~long-term~~and ~~pricing~~variable ~~commitments~~sales and implementation cycles, competing effectively in the global market, growing our ~~customer~~business ~~contracts~~and ~~based~~managing onour ~~available~~expanding ~~information~~operations, development and ~~estimates~~use ~~about~~of ~~our~~AI ~~future~~in ~~costs~~an evolving regulatory environment, making long-term pricing commitments based on cost estimates that may change, ~~increasing~~expanding ~~the overall~~ market ~~acceptance~~adoption of our cloud-based ~~products~~offerings, maintaining customer satisfaction and renewals ~~of our products~~, and cost-effectively and securely managing the infrastructure of our cloud-based customers. In response to these and other risks we might face, we continue to invest in many areas of our business, including product development, cloud operations, cybersecurity, introduction of new products and/or new features, implementation and migration services, and sales and marketing.

Seasonality

We have experienced seasonal variations in our license revenue and, to a lesser extent, in our subscription revenue as a result of increased customer orders in our fourth fiscal quarter, which is the quarter ending July 31. We generally see significantly increased orders in our fourth fiscal quarter, due to efforts by our sales team to achieve annual incentives. Because we recognize revenue upfront for term licenses compared to over time for subscription services, changes in the mix between term license and subscription services may impact our quarterly results. Additionally, any significant multi-year term license or term license non-renewal could impact quarterly results. Subscription sales now represent the significant majority of total sales and, as a result when compared to term license sales, the revenue we recognize in the initial fiscal year of an order is lower, deferred revenue is higher, and our total reported revenue growth may be adversely affected in the near term due to the ratable nature of these arrangements. Over time, this ratable revenue dynamic will dampen the impact of seasonality on our revenue.

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term license non-renewal could impact quarterly results. Subscription sales now represent the significant majority of total sales and, as a result when compared to term license sales, the revenue we recognize in the initial fiscal year of an order is lower, deferred revenue is higher, and our total reported revenue growth may be adversely affected in the near term due to the ratable nature of these arrangements. Over time, this ratable revenue dynamic will dampen the impact of seasonality on our revenue.

Our services revenue is also subject to seasonal fluctuations, though to a lesser degree than our license revenue and subscription revenue. Our services revenue is impacted by the number of billable days in a given fiscal quarter. Our second fiscal quarter, which is the quarter ending January 31, usually has fewer billable days due to the impact of calendar year end holidays in Europe and the United States. Our fourth fiscal quarter usually has fewer billable days due to the impact of vacations taken by our services professionals. Because we pay our services professionals the same amount throughout the year, our gross margins on our services revenue are usually lower in these quarters. This seasonal pattern, however, may be absent in any given year.

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Global Events

Our business and financial results have been and may in the future be impacted due to these disruptions, which may affect our ARR and revenue growth rates, sales cycles, services revenue and margins, operating cash flow and expenses, employee attrition, hiring and onboarding necessary personnel, allowance for collectibility of accounts receivable and unbilled receivables, and the change in fair value of strategic investments. Additionally, inflation levels and political uncertainty are impacting the global economy and have magnified the impact of these disruptions.

Our customers may be unable to pay or may request amended payment terms for their outstanding invoices due to the economic impacts from these disruptions, and we may need to increase our accounts receivable allowances. A decrease in orders in a given period could negatively affect our revenue and ARR in future periods, particularly if experienced on a sustained basis, because a substantial proportion of our new software subscription services orders is recognized as revenue over time. Also, the global economic impact of these disruptions could affect our customers’ DWP, which could ultimately impact our revenue as we generally price our products based on the amount of DWP that will be managed by our products. As a result of these developments and the related economic impact to our business, we may be required to record impairment related to our operating lease assets, investments, long-lived assets, intangible assets, or goodwill.

We will continue to monitor and evaluate the nature and extent of these global events on our business.

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Key Business Metrics

We use certain key metrics and financial measures not prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) to evaluate and manage our business, including ARR and free cash flow. For a further discussion of how we use key metrics and certain non-GAAP financial measures, see “Non-GAAP Financial Measures” in this Annual Report on Form 10-K.

Annual Recurring Revenue (“ARR”)

We use ARR 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. In fiscal year ~~2024~~2025, the recurring license and support or subscription contract value recognized as services revenue was $109.75 million.

If a customer contract contains invoicing amounts that increase over the contract term, then ARR reflects the annualized invoicing amount outlined in the contract for the current reporting period. For example, given a contract with annual invoicing of $1.0 million at the beginning of year one, $2.0 million at the beginning of year two, and $3.0 million at the beginning of year three, and the reporting period is subsequent to year two invoicing and prior to year three invoicing, the reported ARR for that contract would be $2.0 million.

As of July 31, ~~2024~~2025, ARR was $~~864~~1,041 million, or $~~872~~1,032 million based on currency exchange rates as of July 31, ~~2023~~2024. We measure ARR results on a constant currency basis during the fiscal year and revalue ARR at year end to current currency rates. ARR grew in fiscal year ~~2024~~2025 by 1320%, or 1419% on a constant currency basis.

~~Free Cash Flow~~49

We monitor our free cash flow as a key measure of our overall business performance, which enables us to analyze our financial performance without the effects of certain non-cash items such as depreciation, amortization, and stock-based compensation expenses. Additionally, free cash flow takes into account the impact of changes in deferred revenue, which reflects the receipt of cash payment for products before they are recognized as revenue, and unbilled accounts receivable, which reflects revenue that has been recognized that has yet to be invoiced to our customers. Our net cash provided by (used in) operating activities is significantly impacted by the timing of invoicing and collections of accounts receivable, the timing and amount of annual bonus payments, as well as payroll and tax payments. Our capital expenditures consist of purchases of property and equipment, primarily computer hardware, software, and leasehold improvements, and capitalized software development costs. Free cash flow improved in fiscal year 2024 from fiscal year 2023 primarily due to our lower net loss and increased cash collections from customers. For a further discussion of our operating cash flows, see “Liquidity and Capital Resources – Cash Flows.”

	Fiscal years ended July 31,
	2024		2023
	(in thousands)
Net cash provided by (used in) operating activities	$	195,748	$	38,395
Purchases of property and equipment	(6,362)		(5,821)
Capitalized software development costs	(12,165)		(11,606)
Free cash flow	$	177,221	$	20,968

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Free Cash Flow

We monitor our free cash flow as a key measure of our overall business performance, which enables us to analyze our financial performance without the effects of certain non-cash items such as depreciation, amortization, and stock-based compensation expenses. Additionally, free cash flow takes into account the impact of changes in deferred revenue, which reflects the receipt of cash payments for products before they are recognized as revenue, and unbilled accounts receivable, which reflects revenue that has been recognized that has yet to be invoiced to our customers. Our net cash provided by (used in) operating activities is significantly impacted by the timing of invoicing and collections of accounts receivable, the timing and amount of annual bonus payments, as well as payroll, commissions, payroll taxes, and other tax payments. Our capital expenditures consist of purchases of property and equipment, primarily computer hardware, software, and leasehold improvements, and capitalized software development costs. For a further discussion of our operating cash flows, see “Liquidity and Capital Resources – Cash Flows.”


	Fiscal years ended July 31,
	2025		2024
	(in thousands)
Net cash provided by (used in) operating activities	$	300,867	$	195,748
Purchases of property and equipment	(5,741)		(6,362)
Capitalized software development costs	(14,714)		(12,165)
Free cash flow	$	280,412	$	177,221

Critical Accounting Policies and Estimates

Our consolidated financial statements are prepared in accordance with GAAP. Accounting policies, methods, and estimates are an integral part of the preparation of our consolidated financial statements in accordance with GAAP and, in part, are based upon management’s current judgments. Those judgments are normally based on knowledge and experience with regard to past and current events and assumptions about future events. Certain accounting policies, methods, and estimates are particularly sensitive because of their significance to our consolidated financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. While there are a number of significant accounting policies, methods, and estimates affecting our consolidated financial statements, which are described in Note 1 “The Company and a Summary of Significant Accounting Policies and Estimates” to our consolidated financial statements included in this Annual Report on Form 10-K, our revenue recognition policies are critical to the periods presented.

Revenue Recognition

Revenue recognition requires judgment and the use of estimates, especially in identifying and evaluating the various non-standard terms and conditions in our contracts with customers as to their effect on reported revenue.

Our revenue is derived from contracts with customers. The majority of our revenue is derived from subscriptions to our cloud services, licensing arrangements for our software, and implementation and other professional services arrangements. We account for revenue in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 is to recognize revenue upon the transfer of services or products to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services or products. We apply a five-step framework to recognize revenue as described in our Revenue Recognition policy included in Note 1 of our consolidated financial statements included in this Annual Report on Form 10-K.

Our customers have significant negotiating power during the sales process, which can and does result in terms and conditions that are different from our standard terms and conditions. When terms and conditions of our customer contracts are not standard, certain negotiated terms may require significant judgment in order to determine the appropriate revenue recognition in accordance with ASC 606.

The estimates and assumptions requiring significant judgment under our revenue policy in accordance with ASC 606 are as follows:

Allocation of the transaction price to the performance obligations in the contract

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on its standalone selling price (“SSP”) in relation to the total fair value of all performance obligations in the arrangement. Some of our performance obligations, such as support, implementation services, and training services, have observable inputs that are used to determine the SSP of those distinct performance obligations. Where SSP is not directly observable, we determine the SSP using information that may include market conditions and other observable inputs. In the circumstances when available information to determine SSP is highly variable or uncertain, such as for our term licenses, we will use the residual method.

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obligation based on its standalone selling price (“SSP”) in relation to the total fair value of all performance obligations in the arrangement. Some of our performance obligations, such as support, implementation services, and training services, have observable inputs that are used to determine the SSP of those distinct performance obligations. Where SSP is not directly observable, we determine the SSP using information that may include market conditions and other observable inputs. In the circumstances when available information to determine SSP is highly variable or uncertain, such as for our term licenses, we will use the residual method.

The majority of our contracts contain multiple performance obligations, such as when licenses are sold with support, implementation services or training services. As customers enter into a subscription agreement to migrate from an existing term license agreement, customers may be under contract for self-managed licenses and support, in addition to subscription services, for a period of time, which may require an allocation of the transaction price to each performance obligation. New and migration subscription agreements also typically include implementation, configuration, and training services, which may require an allocation of the transaction price to each performance obligation.

Additionally, contract modifications for products that are distinct but are not priced commensurate with their SSP or are not distinct from the existing contract may affect the initial transaction price or the allocation of the transaction price to the performance obligations in the contract. In such cases, revenue recognized may be adjusted.

Recent Accounting Pronouncements

See Note 1 “The Company and Summary of Significant Accounting Policies and Estimates” to our consolidated financial statements included in this Annual Report on Form 10-K for a full description of recent accounting pronouncements adopted, including the dates of adoption, and recent accounting pronouncements not yet adopted.

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Results of Operations

The following table sets forth our results of operations for the years presented. The data has been derived from the consolidated financial statements contained in this Annual Report on Form 10-K. The results of operations for any period should not be considered indicative of results for any future period.

Fiscal years ended July 31,

2024

As a % of total revenue

2023

As a % of total revenue

2025

As a % of total revenue

2024

As a % of total revenue

(in thousands except percentages)

Revenue:

Subscription and support

~~549~~731,~~087~~296

5661

~~429~~549,~~667~~087

4856

License

~~250~~251,~~176~~935

2621

~~265~~250,~~593~~176

2926

Services

~~181~~219,~~234~~228

~~210~~181,~~081~~234

2318

Total revenue

~~980~~1,~~497~~202,459

100

~~905~~980,~~341~~497

100

Cost of revenue:

Subscription and support

~~204~~235,~~794~~106

2120

~~210~~204,~~507~~794

2321

License

43,~~536~~624

—

64,~~488~~536

1—

Services

~~187~~211,~~806~~676

1918

~~230~~187,~~135~~806

2519

Total cost of revenue

~~397~~450,~~136~~406

4038

~~447~~397,~~130~~136

4940

Gross profit:

Subscription and support

~~344~~496,~~293~~190

3541

~~219~~344,~~160~~293

2535

License

~~245~~248,~~640~~311

2621

~~259~~245,~~105~~640

2826

Services

(67,~~572)~~552

~~(1)~~—

(206,~~054~~572)

(21)

Total gross profit

~~583~~752,~~361~~053

6062

~~458~~583,~~211~~361

5160

Operating expenses:

Research and development

~~269~~296,~~381~~160

2724

~~249~~269,~~746~~381

Sales and marketing

~~199~~230,~~033~~346

2019

~~188~~199,~~224~~033

2120

General and administrative

~~167~~184,~~520~~479

1715

~~169~~167,~~731~~520

1917

Total operating expenses

~~635~~710,~~934~~985

6458

~~607~~635,~~701~~934

6764

Income (loss) from operations

~~(52~~41,~~573)~~068

(4)

(~~149~~52,~~490~~573)

(164)

Interest income

4356,~~478~~625

2443,~~389~~478

Interest expense

(613,~~738~~211)

(1)

(6,~~716~~738)

(1)

Other income (expense), net

(1135,~~005~~087)

(13)

(211,~~277~~005)

—(1)

Income (loss) before provision for (benefit from) income taxes

~~(26~~49,~~838)~~395

~~(2)~~4

(~~134~~26,~~094~~838)

(142)

Provision for (benefit from) income taxes

(20,~~735~~409)

(32)

(2220,~~239~~735)

(32)

Net income (loss)

(669,~~103)~~804

~~(1)~~6

(~~111~~6,~~855~~103)

~~(11)~~—

Comparison of the Fiscal Years Ended July 31, ~~2024~~2025 and ~~2023~~2024

Revenue

We derive our revenue primarily from delivering cloud-based services, licensing our software applications, providing support, and delivering professional services.

Subscription and Support

AThe ~~growing~~majority ~~portion~~ of our revenue consists of fees for our subscription services, which are generally priced based on the amount of DWP that is managed by our subscription services. Subscription revenue is recognized ratably over the term of the arrangement, beginning at the point in time our provisioning process has been completed and access has been made available to the customer. The initial term of such arrangements is generally ~~from~~five ~~three~~years, tothough ~~five~~in some instances customers have entered into contracts with an initial term of seven years or longer. Subscription agreements contain optional annual renewals commencing upon the expiration of the initial contract term. A majority of our subscription customers are billed annually in advance. In some arrangements with multiple ~~performance obligations, a portion of recurring subscription contract value may be allocated to~~

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performance obligations, a portion of recurring subscription contract value may be allocated to license revenue or services revenue for revenue recognition purposes. For example, in arrangements with multiple performance obligations that include services at discounted rates, a portion of the total contract value related to subscription services will be allocated and recognized as services revenue. Additionally, agreements to migrate an existing term license customer to subscription services contain multiple performance obligations, including a provision to continue using the term license during the subscription service implementation period. Under these migration agreements, a portion of the total contract value related to subscription services could be allocated and recognized as term license and support revenue in the period renewed or delivered.

Our support revenue is generally recognized ratably over the committed support term of the licensed software. Our support fees are typically priced as a fixed percentage of the associated term license fees. We generally invoice support annually in advance. Support related to subscription arrangements is included in subscription revenue, as support is not quoted or priced separately from the subscription services.

License

AThe ~~substantial~~ majority of our license revenue consists of term license fees. Our term license revenue is primarily generated through license fees that are billed annually in advance during the term of the contract, including any renewals. Our term license fees are generally priced based on the amount of DWP that will be managed by our licensed software. Our term licenses are sold under an initial term with optional annual renewals after the initial term. Term license revenue for the committed term of the customer agreement is generally fully recognized upon delivery of the software or at the beginning of the renewal term. We do enter into license arrangements that have an initial term of two or more years and renewal terms of more than one year which results in significantly higher revenue in the initial year of the committed term than arrangements for our subscription services .

Services

Our services revenue is primarily derived from implementation and migration services performed for our customers, reimbursable travel expenses, and training fees. A majority of our services engagements are billed and revenue is recognized on a time and materials basis upon providing our services.

	Fiscal years ended July 31,
	2024				2023				Change
	2025				2024				Change
			As a % of total				As a % of total
	Amount		revenue		Amount		revenue		($)		(%)
	(in thousands, except percentages)
Revenue:
Subscription and support:
Subscription	$	~~477~~667,~~460~~436	4956	%	$	~~352~~477,~~145~~460	3949	%	$	~~125~~189,~~315~~976	3640	%
Support	7163,~~627~~860		75		7771,~~522~~627		97		(57,~~895~~767)		(811)
License:
Term license	~~248~~251,~~849~~817		2621		~~265~~248,~~389~~849		2926		~~(16~~2,~~540)~~968		~~(6)~~1
Perpetual license	~~1,327~~118		—		~~204~~1,327		—		(1,~~123~~209)		~~550~~(91)
Services	~~181~~219,~~234~~228		18		~~210~~181,~~081~~234		2318		~~(28~~37,~~847)~~994		~~(14)~~21
Total revenue	$	~~980~~1,~~497~~202,459	100	%	$	~~905~~980,~~341~~497	100	%	$	75221,~~156~~962	823	%

Subscription and Support

We anticipate subscriptions will continue to represent a significant majority of new arrangements, including customers migrating from existing term license arrangements to subscription services, in future periods. Due to the ratable recognition of subscription revenue, growth in subscription revenue will lag behind the growth of subscription orders and will impact the comparative growth of our reported revenue on a year-over-year basis. If we complete a higher percentage of subscription arrangements towards the end of a given period, our short-term growth rates will be negatively impacted. Due to the seasonal nature of our business, the impact of new subscription orders in our fourth fiscal quarter, our historically largest quarter for new orders, is not fully reflected in revenue until the following fiscal year.

Subscription revenue increased by $~~125~~190.30 million compared to the prior year primarily due to the impact of new subscription agreements and cloud transition agreements entered into and provisioned since July 31, ~~2023~~2024 of $~~101~~154.0 million, and the renewal or extension of subscription services at the fully ramped annual fees after the initial committed term of $2428.92 million.

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Support revenue decreased by $57.98 million compared to the prior year, primarily due to customers migrating from on-premise term licenses to subscription services. Support related to subscription arrangements is included in subscription revenue, as support is not quoted or priced separately from the subscription services. As customers enter into a subscription agreement to migrate from an existing term license agreement, the timing and amount of revenue recognized will be impacted by allocations of the total contract value between the license, subscription, and support performance obligations. As a result, we expect the increase in subscription orders as a percentage of total new sales and customers migrating from term licenses to subscription services will result in lower support revenue in the future.

License

Revenue related to new term licenses and multi-year term license renewals is generally recognized upfront and, as a result, no additional license revenue is recognized until after the committed term expires. As a customer enters into a subscription agreement to migrate from an existing term license agreement, the timing and amount of revenue recognition will be impacted by allocations of total contract value between license, subscription, and support performance obligations. License revenue growth has and will be negatively impacted as subscription sales increase as a percentage of total new sales and as customers migrate from term licenses to subscription services instead of renewing their term licenses.

Term license revenue ~~decreased~~increased by $163.50 million compared to the prior year primarily due to ~~agreements~~higher ~~that~~renewals ~~migrated~~and ~~from~~expansion aorders ~~term~~within ~~license~~our toexisting acustomer ~~subscription service in the prior year~~base, partially offset by ~~higher~~the ~~renewals~~impact ~~and~~of ~~expansion~~customers ~~orders~~that ~~within~~migrated ~~our~~from ~~existing~~a ~~customer~~term ~~base~~license to a subscription service. Ongoing revenue related to migration agreements is recorded as subscription revenue. The impact on term license revenue from contracts with an initial term of greater than two years or a renewal term of greater than one year was $20.75 million during fiscal year ~~2024~~2025, as compared to $72.67 million in the prior year.

Services

Services revenue ~~decreased~~increased by $2838.80 million compared to the prior year. ~~Services~~primarily ~~revenue~~due ~~was impacted by the completion of implementations, partially offset by an increase from new and existing subscription implementation and migration projects. Services revenue overall continues~~ to beimproved ~~impacted~~operational byfocus ~~contracts~~that ~~with~~resulted ~~lower average services billing rates and investments~~ in ~~customer~~higher ~~implementations,~~utilization ~~including~~of ~~fixed~~services ~~fee~~employees or capped arrangements, to accelerate customer transition to the cloud. In these arrangements when a project extends longer than originally anticipated, the average billing rate we recognize may decrease, which can result in revenue adjustments and ~~lower gross profit. Additionally, our SI partners are leading~~ more new subscription implementation and migration projects than inprojects that were completed over the past. year.

As we successfully leverage our SI partners to lead more implementations and migrations, we expect our services revenue could fluctuate between periods. Additionally, services revenue overall may continue to be ~~flat~~impacted orby ~~decline~~contracts with lower average services billing rates and investments in customer implementations, including fixed fee or capped arrangements, to accelerate customer transition to the ~~near-term~~cloud. In these arrangements when a project extends longer than originally anticipated, the average billing rate we recognize may decrease, which can result in revenue adjustments and lower gross profit. As we continue to expand into new markets and develop new products, we have, and may continue to, enter into contracts with lower average billing rates, make investments in customer implementation and migration engagements, and enter into fixed price contracts~~, which may impact services revenue and services margin~~.

Cost of Revenue and Gross Profit

Our cost of subscription and support revenue primarily consists of personnel costs for our cloud operations and technical support teams, cloud infrastructure costs, development of online training curriculum, amortization of intangible assets, and royalty fees paid to third parties. Our cost of license revenue primarily consists of development of online training curriculum, royalty fees paid to third parties, and amortization of intangible assets. Our cost of services revenue primarily consists of personnel costs for our professional service employees, third-party subcontractors or consultants, and travel costs. In instances where we have primary responsibility for the delivery of services, subcontractor fees are expensed as cost of services revenue. In each case, personnel costs include salaries, bonuses, benefits, and stock-based compensation.

We allocate overhead such as information technology infrastructure and software expenses, information security infrastructure and software expenses, and facilities expenses to all functional departments based on headcount. As such, these general overhead expenses are reflected in cost of revenue and each functional operating expense.

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Cost of Revenue:

	Fiscal years ended July 31,
	2024				2023				Change
	2025				2024				Change
	Amount		As a % of total revenue		Amount		As a % of total revenue		($)		(%)
	(In thousands, except percentages)
Cost of revenue:
Subscription and support	$	~~204~~235,~~794~~106	2120	%	$	~~210~~204,~~507~~794	2321	%	$	(530,~~713)~~312	~~(3)~~15	%
License	43,~~536~~624		—		64,~~488~~536		1—		(~~1,952~~912)		(3020)
Services	~~187~~211,~~806~~676		1918		~~230~~187,~~135~~806		2519		~~(42~~23,~~329)~~870		~~(18)~~13
Total cost of revenue	$	~~397~~450,~~136~~406	4038	%	$	~~447~~397,~~130~~136	4940	%	$	~~(49~~53,~~994)~~270	~~(11)~~13	%
Includes stock-based compensation of:
Cost of subscription and support revenue	$	13,~~425~~953			$	1413,~~073~~425			$	~~(648)~~528
Cost of license revenue	~~186~~136				~~463~~186				(~~277~~50)
Cost of services revenue	1920,~~013~~759				19,~~257~~013				~~(244)~~1,746
Total	$	3234,~~624~~848			$	3332,~~793~~624			$	(12,~~169)~~224

The $530.73 million ~~decrease~~increase in cost of subscription and support revenue was primarily due to ~~decreases~~increases in ~~professional~~cloud ~~services~~infrastructure costs of $526.26 million from increased transaction volume on our cloud services, personnel costs of $4.5 million as a result of higher compensation related to bonus and other benefits, internal-use software amortization of $1.2 million, royalties of $0.6 million due to ~~lower~~higher ~~headcount~~usage, and amortization of intangibles of $10.43 million due to ~~certain~~newly acquired intangible assets being ~~fully~~ amortized. These ~~decreases~~increases were partially offset by ~~increases~~a decrease in ~~royalties~~professional ofservices ~~$1.9 million, cloud infrastructure~~ expense of $12.89 million ~~for our growing cloud usage and customer base, and internal-use software amortization of $1~~.~~3 million.~~

Cloud ~~hosting~~infrastructure ~~costs~~expense ~~are~~continues ~~benefiting~~to benefit from the efficiencies that we are achieving from our development efforts associated with our GWCP platform and the ~~cost benefits associated with the~~ five-year agreement we entered into with a cloud infrastructure services provider ~~that was entered into in the second quarter of fiscal year 2023~~. As a result of efficiencies that we are seeing from our previous investments in cloud operations and development efforts, we ~~are~~continue to critically ~~evaluating~~evaluate headcount additions, professional services contracts, and third-party software costs, along with other investment opportunities. However, we expect cost of subscription and support revenue to increase in absolute dollars due to the increased number of customers utilizing our cloud services, the volume of transactions by our cloud customers, and the impact of inflation and other macroeconomic events.

The $2.0.9 million decrease in our cost of license revenue was primarily due to a $0.6 million decrease in personnel costs associated with the development of online training curriculum included with the latest releases of InsuranceSuite ~~of $1.6 million~~ and lower royalties of $0.43 million.

We continue to anticipate lower cost of license revenue over time as our term license customers transition to cloud subscription agreements.

The $4223.39 million ~~decrease~~increase in cost of services revenue was primarily due to ~~decreases~~increases in ~~subcontractor~~personnel ~~expenses~~expense of $4413.45 million, ~~and~~subcontractor ~~software~~expense ~~subscriptions, travel expenses, professional services, and web hosting costs~~ of $19.3 million. ~~These~~due ~~decreases~~to ~~were~~implementations ~~partially~~involving ~~offset~~our bySI anpartners, ~~increase~~professional inservices ~~personnel~~expense ~~expenses~~ of $30.46 million, ~~which~~and ~~includes~~software ~~severance~~subscriptions ~~payments~~and travel expenses of $30.35 million.

We had ~~613~~606 cloud operations and technical support employees and ~~750~~873 professional service employees as of July 31, ~~2024~~2025 compared to ~~648~~613 cloud operations and technical support employees and ~~784~~750 professional services employees as of July 31, ~~2023~~2024.

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Gross Profit

	Fiscal years ended July 31,
	2024				2023				Change
	2025				2024				Change
	Amount		Margin %		Amount		Margin %		($)		(%)
	(In thousands, except percentages)
Gross profit:
Subscription and support	$	~~344~~496,~~293~~190	6368	%	$	~~219~~344,~~160~~293	5163	%	$	~~125~~151,~~133~~897	5744	%
License	~~245~~248,~~640~~311		9899		~~259~~245,~~105~~640		98		~~(13~~2,~~465)~~671		~~(5)~~1
Services	(67,~~572)~~552		~~(4)~~3		(206,~~054~~572)		(104)		1314,~~482~~124		(67215)
Total gross profit	$	~~583~~752,~~361~~053	5963	%	$	~~458~~583,~~211~~361	5159	%	$	~~125~~168,~~150~~692	2729	%

Our gross profit increased by $~~125~~168.27 million compared to the prior year. Gross profit was impacted by an increase in subscription and support gross profit due to the increase in subscription revenue and cloud operations efficiencies. License gross profit ~~decreased~~slightly increased primarily as a result of customer renewals and lower ~~revenue~~costs ~~primarily~~associated ~~from~~with ~~our~~development ~~customers~~of ~~migrating~~online ~~from~~training ~~licenses~~curriculum. Services gross margin increased due to ~~cloud~~increased ~~subscriptions.~~revenue ~~The~~from ~~decrease~~new inimplementation ~~license~~and ~~gross~~migration ~~profit~~projects, ~~was~~higher ~~offset~~utilization byrates ~~lower~~and ~~services~~the ~~negative~~completion ~~margin~~of certain implementation projects that required significant investment by us.

Our gross margin increased to 5963% in fiscal year ~~2024~~2025, as compared to 5159% in fiscal year ~~2023~~2024. Gross margin was primarily impacted by the increase in subscription and support revenue at a higher margin due to cloud operations efficiencies and ~~lower~~higher services ~~negative~~ margin after the completion of certain implementation projects that required significant investment by us and higher utilization rates.

We expect subscription and support gross margin to continue to improve, though at a slower rate than in ~~fiscal~~recent ~~year 2024~~years, ~~over the next several years~~ as we gain additional efficiencies and increase the number of cloud customers. We expect services gross margin will continue to improve as we ~~lower our reliance on subcontractors and~~ enter into fewer fixed fee arrangements., Webut ~~expect~~could ~~license~~fluctuate ~~gross~~between ~~profit~~periods ~~and license gross margin to decline~~ based on ~~changes~~the inuse ~~revenue~~of ~~due~~subcontractors to ~~customers~~supplement ~~migrating~~our ~~from~~internal ~~licenses to subscription~~ services, ~~the~~team. ~~timing~~We ofexpect ~~delivery of new multi-year term licenses and the execution of multi-year term~~ license ~~renewals,~~gross asprofit ~~cost~~to ofdecline ~~license~~due ~~revenue is expected~~ to becustomers ~~relatively~~migrating ~~consistent~~ from ~~period~~licenses to ~~period~~subscription ~~in the future~~services. Overall, we expect gross margins to continue to improve over time as improvements in subscription and support gross margin and services gross margin will more than offset the negative impact of revenue shifts away from high margin license revenue.

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Operating Expenses

Our operating expenses consist of research and development, sales and marketing, and general and administrative expenses. The largest components of our operating expenses are personnel costs for our employees and, to a lesser extent, professional services. In each case, personnel costs include salaries, bonuses, commissions, benefits, and stock-based compensation.

	Fiscal years ended July 31,
	2024				2023				Change
	2025				2024				Change
			As a% of total				As a % of total
	Amount		revenue		Amount		revenue		($)		(%)
	(In thousands, except percentages)
Operating expenses:
Research and development	$	~~269~~296,~~381~~160	2725	%	$	~~249~~269,~~746~~381	2827	%	$	1926,~~635~~779	810	%
Sales and marketing	~~199~~230,~~033~~346		2019		~~188~~199,~~224~~033		2120		1031,~~809~~313		616
General and administrative	~~167~~184,~~520~~479		1715		~~169~~167,~~731~~520		1917		(216,~~211)~~959		~~(1)~~10
Total operating expenses	$	~~635~~710,~~934~~985	6459	%	$	~~607~~635,~~701~~934	6864	%	$	2875,~~233~~051	512	%
Includes stock-based compensation of:
Research and development	$	4041,~~213~~760			$	3940,~~865~~213			$	~~348~~1,547
Sales and marketing	3443,~~590~~270				2934,~~925~~590				48,~~665~~680
General and administrative	3941,~~033~~678				39,~~259~~033				~~(226)~~2,645
Total	$	~~113~~126,~~836~~708			$	~~109~~113,~~049~~836			$	412,~~787~~872

Research and Development

Our research and development expenses primarily consist of personnel costs for our technical staff and consultants providing professional services.

The $1926.68 million increase in research and development expenses was primarily due to increases in personnel costs of $2023.13 million due to higher headcount, ~~software~~professional ~~subscription~~services ~~costs~~ of $1.80 million, ~~travel~~web hosting costs of $1.20 million, ~~and~~software ~~professional~~subscription ~~services~~costs of $0.69 million., ~~These increases were partially offset by decreases in acquisition holdback of $2.8 million~~ and ~~cloud~~travel ~~hosting~~ costs of $10.36 million. Cloud hosting costs are benefiting from the efficiencies that we are achieving with GWCP and the five-year agreement with a cloud infrastructure services provider that was entered into in the second quarter of fiscal year 2023.

Our research and development headcount was 1,~~169~~273 as of July 31, ~~2024~~2025, as compared to 1,~~069~~169 as of July 31, ~~2023~~2024.

We expect our research and development expenses to increase in absolute dollars due to inflation and investments to ~~support~~enhance and develop our ~~growing~~products ~~customer~~and ~~base~~services, but decrease as a percentage of revenue after our recent period of significant investment in cloud platform capabilities as overall hiring slows, and we focus on hiring in lower cost regions. We continue to dedicate internal resources to develop, improve, and expand the functionality, ofefficiency, ~~our solutions~~ and ~~migrate~~security of our solutions toin the cloud. Research and development expenses may also increase if we pursue additional acquisitions.

Sales and Marketing

Our sales and marketing expenses primarily consist of personnel costs for our sales and marketing employees. Included in our personnel costs are commissions, which are considered contract acquisition costs and are capitalized when earned and expensed over the anticipated period of time that goods and services are expected to be provided to a customer, which we estimate to be approximately five years. Sales and marketing expenses also include travel expenses, professional services for marketing activities, and amortization of certain acquired intangibles.

The $31.3 million increase in sales and marketing expenses was primarily due to increases in personnel costs, including higher contract acquisition costs and stock-based compensation, of $24.1 million, travel costs of $3.2 million, web hosting expenses of $2.6

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~~The $10.8~~ million, ~~increase~~marketing ~~in sales~~ and ~~marketing~~advertising expenses ~~was primarily due to increases in personnel costs~~ of $110.46 million ~~due to higher headcount~~, ~~including $2.1 million related to contract acquisition costs, travel costs of $1.1 million due to more in-person client interactions,~~ software subscriptions of $0.36 million, and professional services costs of $0.15 million. These increases were partially offset by ~~decreases~~a decrease in ~~marketing~~amortization ~~and advertising costs~~ of ~~$1.5~~intangibles ~~million and cloud hosting costs~~ of $0.63 million.

Our sales and marketing headcount was ~~477~~533 as of July 31, ~~2024~~2025, as compared to ~~463~~477 as of July 31, ~~2023~~2024.

We expect our sales and marketing expenses to continue to increase in absolute dollars due to inflation and investments to support ongoing growth, but decrease as a percentage of revenue as overall hiring slows after our recent period of investment to build out our customer success team and add analytics and cloud sales capabilities.

General and Administrative

Our general and administrative expenses include executive, finance, human resources, information technology, information security, legal, ~~facilities,~~ and corporate development and strategy functions, and primarily consist of personnel costs and, to a lesser extent, professional services, software costs, and cloud hosting costs.

The $217.20 million ~~decrease~~increase in our general and administrative expenses was primarily due to ~~decreases~~increases in ~~facilities~~professional ~~costs~~services expenses of $116.02 million, ~~primarily~~net ~~due to the assignment~~ of ~~the~~capitalized ~~lease~~implementation ~~agreement~~costs, ~~for~~due ~~our~~to ~~previous~~ongoing ~~headquarters~~projects ~~and~~to ~~concurrent~~upgrade ~~sublease~~our ~~for~~technology ~~less space in San Mateo~~infrastructure, ~~California~~personnel ~~during~~costs ~~the third quarter~~ of ~~fiscal~~$5.6 ~~year~~million, ~~2023~~travel ~~and cloud hosting~~ costs of $03.74 million., ~~These~~bad ~~decreases~~debt ~~were~~expense ~~partially offset by increases in personnel costs~~ of $41.90 million ~~due to higher headcount~~, ~~professional~~software ~~services~~subscription costs of $30.35 million, and ~~software~~web ~~subscription~~hosting costs of $10.3 million.

Our general and administrative headcount was ~~460~~487 as of July 31, ~~2024~~2025, as compared to ~~451~~460 as of July 31, ~~2023~~2024. General and administrative headcount includes facilities personnel whose expenses are allocated across all functional departments.

We expect that our general and administrative expenses will increase in absolute dollars due to inflation and investments required to support our strategic initiatives, grow our business, and meet our product and information security, compliance and reporting obligations, but decrease as a percentage of revenue as overall hiring and investments slow.

Other Income (Expense)

	Fiscal years ended July 31,
	2024		2023		Change
	2025		2024		Change
	Amount		Amount		($)		(%)
	(In thousands, except percentages)
Interest income	$	4356,~~478~~625	$	2443,~~389~~478	$	1913,~~089~~147	7830	%
Interest expense	$	(613,~~738~~211)	$	(6,~~716~~738)	$	(226,473)	—96	%
Other income (expense), net	$	(1135,~~005~~087)	$	(211,~~277~~005)	$	(824,~~728~~082)	~~383~~219	%

Interest Income

Interest income represents interest earned on our cash, cash equivalents, and investments.

Interest income increased by $1913.1 million in fiscal year ~~2024~~2025, primarily due to ~~higher~~increased ~~interest~~funds ~~rates~~available onfor ~~invested~~investment ~~funds~~due to our October 2024 debt offering and positive operating cash flow.

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Interest Expense

Interest expense includes both stated interest and the amortization of debt issuance costs associated with the outstanding amount due on the aggregate principal amount of our 1.25% Convertible Senior Notes due 2025 (“2025 Convertible Senior Notes”) and the aggregate principal amount of our 1.25% Convertible Senior Notes due 2029 (the “2029 Convertible Senior Notes,” together with the 2025 Convertible Senior Notes, the “Convertible Senior Notes”). The amortization of debt issuance ~~costs~~cost ~~are~~is recognized on an effective interest basis. ~~Stated~~Our ~~interest~~2025 ~~expense~~Convertible isSenior ~~consistent~~Notes were partially retired in ~~the~~October ~~comparative~~and ~~periods~~December as2024, and were fully settled on their maturity date of March 15, 2025. Beginning in fiscal year 2025, interest expense also includes the ~~outstanding~~commitment ~~principal~~fees on our undrawn 2025 Credit Facility and ~~stated~~the ~~interest~~amortization ~~rate~~of ~~have~~the ~~not~~associated ~~changed.~~issuance costs.

Interest expense for the fiscal ~~years~~year ended July 31, ~~2024~~2025 ~~and 2023~~ consists of stated interest of $59.0 million, ~~and~~ non-cash interest expense of $13.78 million, ~~related~~and to$0.4 million of commitment fees and amortization of ~~debt~~the associated issuance costs on our undrawn 2025 Credit Facility. Interest expense for the fiscal year ended July 31, 2024 consists of stated interest of $5.0 million and non-cash interest expense of $1.7 million.

Other Income (Expense), Net

Other income (expense), net includes foreign exchange gains and losses resulting from fluctuations in foreign exchange rates on monetary asset and monetary liability balances that are denominated in currencies other than the functional currency of the entity in which they are recorded. Our monetary assets and liabilities denominated in currencies other than the functional currency of the entity in which they are recorded consist primarily of trade accounts receivable, unbilled accounts receivable, trade accounts payable, and intercompany receivables and payables. We have significant transactions in the following currencies: Australian Dollar, British Pound, Canadian Dollar, Euro, Indian Rupee, Japanese Yen, New Zealand Dollar, Polish Zloty, and Swiss Franc. Other income (expense) also includes changes in the fair value of our strategic investments. and expenses related to the retirement of a portion of our 2025 Convertible Senior Notes.

~~Table~~Other income (expense), net in fiscal year 2025 consists of ~~Contents~~a debt retirement loss associated with the 2025 Convertible Senior Notes of $53.6 million and a $2.1 million decrease in the fair value of our strategic investments, partially offset by a $16.7 million gain primarily from foreign currency fluctuations and a $3.7 million gain on the sale of one of our strategic investments. During the second quarter of fiscal year 2025, one of our strategic investments was acquired. As a result, we received $5.7 million in consideration for our equity interest in the investee, composed of $3.4 million in cash and $2.3 million of an ownership interest in the acquirer, and recognized a $3.7 million gain in excess of cost.

WeOther ~~have~~income ~~significant~~(expense), ~~transactions~~net in fiscal year 2024 consists of a $10.8 million loss primarily from foreign currency fluctuations and a $2.0 million decrease in the ~~following~~fair ~~currencies:~~value ~~Australian~~of ~~Dollar~~our strategic investments, ~~British~~offset ~~Pound~~by $1.8 million of other income primarily from the gain on the sale of one of our strategic investments. During the fiscal year ended July 31, ~~Canadian~~2024, ~~Dollar~~one of our investees was acquired by a privately held limited partnership. As a result, ~~Euro~~we received $12.1 million in consideration for our equity interest in the investee, ~~Indian~~composed ~~Rupee~~of $6.5 million cash and $5.6 million of an ownership interest in the privately held limited partnership, and ~~Polish~~recognized ~~Zloty~~a $1.8 million gain in excess of cost.

Other income (expense), net in fiscal year 2024 was expense of $11.0 million compared to expense of $2.3 million in fiscal year 2023. The increase was due to fluctuations in foreign currency exchange rates and a change in the fair value of one of our strategic investments. During the second quarter of fiscal year 2024, one of our strategic investments was acquired by a privately held limited partnership. As a result, we received $12.1 million in consideration for our equity interest in the investee, composed of $6.5 million in cash and $5.6 million of an ownership interest in the privately held limited partnership, and recognized a $1.8 million gain in excess of cost in other income (expense), net.

Provision for (benefit from) Income Taxes

We are subject to taxes in the United States as well as other tax jurisdictions and countries in which we conduct business. Earnings from our non-U.S. activities are subject to local country income tax and may also be subject to U.S. income tax.

	Fiscal years ended July 31,
	2024			2023			Change
	2025			2024			Change
	Amount			Amount			($)		(%)
	(In thousands, except percentages)
Provision for (benefit from) income taxes	$	(20,~~735~~409)		$	(2220,~~239~~735)		$	~~1,504~~326	(72)	%
Effective tax rate	77(41)		%	1777		%

We recognized an income tax benefit of $20.74 million for fiscal year ~~2024~~2025 compared to $2220.27 million for fiscal year ~~2023~~2024. ~~The~~Our ~~decrease~~fiscal inyear ~~our~~2025 income tax benefit ~~for~~was similar to our fiscal year 2024 ~~was~~income ~~primarily~~tax ~~due~~benefit toeven athough ~~decrease~~we ingenerated more pre-tax ~~net~~income ~~loss,~~due ~~offset~~to by an increase in deductions from stock-based compensation, the foreign derived intangible income deduction, change in valuation allowance, and an increase in research and development tax credits, partially offset by non-deductible debt retirement expense and non-deductible executive compensation.

~~As of July 31, 2024, we had unrecognized tax benefits of $13.1 million that, if recognized, would affect our effective tax rate, as certain unrecognized tax benefits have a valuation allowance.~~59

The effective tax rate differs from the statutory U.S. Federal income tax rate of 21% primarily due to state taxes, permanent differences for stock-based compensation including excess tax benefits, research and development credits, foreign earnings taxed in the U.S., the foreign derived intangible income deduction, a change in valuation allowance and certain non-deductible expenses, including, but not limited to, executive compensation limitation.

Comparison of the Fiscal Years Ended July 31, 2023 and 2022

Refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations located in our 10-K for the fiscal year ended July 31, 2023, filed on September 18, 2023, for the discussion of the comparison of the fiscal year ended July 31, 2023 to the fiscal year ended July 31, 2022, the earliest of the three fiscal years presented in the consolidated financial statements.

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The effective tax rate differs from the statutory U.S. Federal income tax rate of 21% primarily due to the debt retirement expense which is non-deductible for tax purposes and other permanent differences related to stock-based compensation including excess tax benefits, research and development credits, foreign earnings taxed in the U.S., the foreign derived intangible income deduction, and certain non-deductible expenses, including, but not limited to, executive compensation limitation.

In the United States, on July 4, 2025, H.R. 1 was signed into law. Among other provisions, the legislation reinstates immediate expensing for domestic research and experimental expenditures, extends 100% bonus depreciation for qualified property placed in service beginning January 20, 2025, and makes certain other provisions of the Tax Cuts and Jobs Act permanent. We are evaluating the impact of the provisions of this legislation that are effective subsequent to fiscal year 2025 and will reflect its impact on our financial statements in the periods in which they are effective.

The Organization for Economic Co-operation and Development has implemented a framework for a global minimum corporate tax of 15% applied on a country-by-country basis for companies with global revenues and profits above certain thresholds (referred to as Pillar 2). Pillar 2 provisions did not have a material impact on our financial statements for any of the years presented.

Comparison of the Fiscal Years Ended July 31, 2024 and 2023

Refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations located in our 10-K for the fiscal year ended July 31, 2024, filed on September 16, 2024, for the discussion of the comparison of the fiscal year ended July 31, 2024 to the fiscal year ended July 31, 2023, the earliest of the three fiscal years presented in the consolidated financial statements.

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Non-GAAP Financial Measures

In addition to the key business metrics presented above, we believe that the following non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. Management uses these non-GAAP measures to compare our 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. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other software companies because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, many of which present similar non-GAAP financial measures to investors. However, our management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP.

The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly- titled non-GAAP measures used by other companies. 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 our 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. We urge investors to review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included herein and not to rely on any single financial measure to evaluate ~~the~~our ~~Company’s~~ business.

The following table reconciles the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below (in thousands, except share and per share data):

	Fiscal years ended July 31,
		2024		2023
		2025		2024
Gross profit reconciliation:
GAAP gross profit		$	~~583~~752,~~361~~053	$	~~458~~583,~~211~~361
Non-GAAP adjustments:
Stock-based compensation		3234,~~624~~848		3332,~~793~~624
Amortization of intangibles		12,~~940~~255		31,~~360~~940
Non-GAAP gross profit		$	~~617~~789,~~925~~156	$	~~495~~617,~~364~~925
Income (loss) from operations reconciliation:
GAAP income (loss) from operations		$	~~(52~~41,~~573)~~068	$	(~~149~~52,~~490~~573)
Non-GAAP adjustments:
Stock-based compensation		~~146~~161,~~460~~556		~~142~~146,~~842~~460
Amortization of intangibles		5,~~468~~444		65,~~888~~468
Acquisition consideration holdback		~~143~~177		~~2,939~~143
Net impact of assignment of lease agreement (1)		—		8,502
Non-GAAP income (loss) from operations		$	208,245	$	99,498
Non-GAAP income (loss) from operations		$	99,498	$	11,681
Net income (loss) reconciliation:
GAAP net income (loss)		$	(669,~~103)~~804	$	(~~111~~6,~~855~~103)
Non-GAAP adjustments:
Stock-based compensation		~~146~~161,~~460~~556		~~142~~146,~~842~~460
Amortization of intangibles		5,~~468~~444		65,~~888~~468
Acquisition consideration holdback		~~143~~177		~~2,939~~143
Net impact of assignment of lease agreement (1)		—		8,502
Amortization of debt issuance costs		3,758		1,732
Amortization of debt issuance costs		1,732		1,703
Changes in fair value of strategic investment		2,130		1,957
Changes in fair value of strategic investment		1,957		802
Gain on sale of strategic investment		(3,671)		(1,803)
Gain on sale of strategic investment (2)		(1,803)		—
Retirement of debt(1)		53,565		—
Tax impact of non-GAAP adjustments		(3364,~~333~~888)		(2233,~~611~~333)
Non-GAAP net income (loss)		$	~~114~~227,~~521~~875	$	29114,~~210~~521
Tax provision (benefit) reconciliation:
GAAP tax provision (benefit)		$	(20,~~735~~409)	$	(2220,~~239~~735)
Non-GAAP adjustments:
Stock-based compensation		25,414		13,930

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Non-GAAP adjustments:
Amortization of intangibles	858		520
Stock-based compensation	13,930		92,849
Acquisition consideration holdback	31		25
Amortization of intangibles	520		4,677
Amortization of debt issuance costs	591		165
Acquisition consideration holdback	25		1,924
Changes in fair value of strategic investment	365		208
Net impact of assignment of lease agreement (1)	—		3,196
Gain on sale of strategic investment	(463)		(196)
Amortization of debt issuance costs	165		1,105
Retirement of debt(1)	6,756		—
Changes in fair value of strategic investment	208		(103)
Tax impact of non-GAAP adjustments	31,336		18,681
Gain on sale of strategic investment (2)	(196)		—
Non-GAAP tax provision (benefit)	$	44,479	$	12,598
Tax impact of non-GAAP adjustments	18,681		(81,037)
Non-GAAP tax provision (benefit)	$	12,598	$	372
Net income (loss) per share reconciliation:
GAAP net income (loss) per share – diluted	$	(0.~~07)~~81	$	(10.3607)
Non-GAAP adjustments:
Stock-based compensation	1.7889		1.7478
Amortization of intangibles	0.0706		0.0807
Acquisition consideration holdback	~~(0.01)~~—		(0.0401)
Net impact of assignment of lease agreement (1)	—		0.10
Amortization of debt issuance costs	0.04		0.02
Amortization of debt issuance costs	0.02		0.02
Changes in fair value of strategic investment	0.02		0.02
Changes in fair value of strategic investment	0.02		0.01
Gain on sale of strategic investment	(0.04)		(0.02)
Gain on sale of strategic investment (2)	(0.02)		—
Retirement of debt(1)	0.63		—
Tax impact of non-GAAP adjustments	(0.4176)		(0.2841)
Interest expense on convertible debt (3)	0.05		—
Interest expense on convertible debt	—		0.05
Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation	~~(0.08)~~—		—(0.08)
Non-GAAP net income (loss) per share – diluted	$	12.3565	$	01.35
Shares used in computing Non-GAAP net income (loss) per share amounts:
GAAP weighted average shares – diluted	8285,~~291~~911,~~483~~653		82,~~176~~291,~~629~~483
Non-GAAP dilutive shares excluded from GAAP net income (loss) per share calculation	~~5,072,080~~—		~~466~~5,~~516~~072,080
Pro forma weighted average shares – diluted	8785,~~363~~911,~~563~~653		8287,~~643~~363,~~145~~563

(1) During the ~~three~~fiscal ~~months~~year ended ~~April~~July 31, ~~2023~~2025, ~~the~~we ~~Company~~ recorded ~~in general and administrative expenses~~ a ~~net loss of~~ $853.56 million ~~related~~loss toon ~~the~~retirement ~~assignment~~ of ~~the~~debt ~~lease~~in ~~agreement~~other ~~for~~income ~~the~~(expense) ~~remaining lease term of the Company’s previous headquarters. The loss is~~ comprised of ana $1853.43 million ~~gain~~loss ~~from~~on ~~the~~extinguishment ~~de-recognition~~ of ~~the~~a ~~operating~~portion ~~lease asset~~ of ~~$56.9 million,~~ the ~~de-recognition~~2025 ofConvertible ~~the~~Senior ~~lease~~Notes ~~liability~~and ofa $750.53 million, ~~and~~loss ~~other~~on ~~expenses related to~~ the ~~lease~~induced ~~assignment~~conversion of ~~$0.2~~a ~~million,~~portion ~~offset by accelerated depreciation expense related to property and equipment, primarily consisting~~ of ~~leasehold improvements, at~~ the ~~previous~~2025 ~~headquarters~~Convertible ofSenior ~~$26~~Notes.9 ~~million.~~ Prior to ~~the third quarter of~~ fiscal year ~~2023~~2025, there were no transactions similar to the ~~lease~~retirement ~~assignment~~of debt in any periods presented in the consolidated statements of operations.

(2) During the three months ended January 31, 2024, one of Guidewire’s strategic investments was acquired by a privately-held limited partnership. As a result, Guidewire received $12.1 million in consideration for its equity interest in the investee, composed of $6.5 million in cash and $5.6 million of an ownership interest in the privately-held limited partnership, and recognized a $1.8 million gain in excess of cost in other income (expense), net. Prior to the second quarter of fiscal year 2024, there were no transactions similar to the gain on sale of strategic investment in any periods presented.

(3) During the fiscal year ended July 31, 2024, the Company's Convertible Notes were dilutive due to non-GAAP net income. Accordingly, interest expense related to the Convertible Notes was excluded from the non-GAAP net income (loss) per share calculation under the “if-converted” method.

Liquidity and Capital Resources

Our principal sources of liquidity are as follows (in thousands):

July 31, 2024

July 31, 2023

July 31, 2025

July 31, 2024

Cash, cash equivalents, and investments

1,~~129~~483,~~453~~197

~~927~~1,~~467~~129,453

Working capital

~~457~~962,~~899~~613

~~726~~457,~~342~~899

Cash, Cash Equivalents, and Investments

Our cash and cash equivalents are comprised of cash and liquid investments with remaining maturities of 90 days or less from the date of purchase, primarily commercial paper and money market funds. Our investments primarily consist of corporate debt securities, U.S. government and agency debt securities, commercial paper, asset-backed securities, and non-U.S. government securities, which include state, municipal, and foreign government securities.

As of July 31, 2025, approximately $90.3 million of our cash and cash equivalents were domiciled in foreign jurisdictions. We may repatriate foreign earnings to the United States in the future to the extent that the repatriation is not restricted by local laws or there are no substantial incremental costs associated with such repatriation.

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As of July 31, 2024, approximately $75.1 million of our cash and cash equivalents were domiciled in foreign jurisdictions. We may repatriate foreign earnings to the United States in the future to the extent that the repatriation is not restricted by local laws or there are no substantial incremental costs associated with such repatriation.

Working Capital

Our working capital ~~decreased~~increased to $~~457~~962.96 million as of July 31, ~~2024~~2025 compared to $~~726~~457.39 million as of July 31, ~~2023~~2024, primarily due to proceeds received from the issuance of the 2029 Convertible Senior Notes ~~becoming~~in ~~current~~October ~~during~~2024 ~~fiscal~~and ~~year~~operating ~~2024.~~cash ~~Our~~flow, partially offset by settlement of the 2025 Convertible Senior Notes ~~are~~and ~~due~~the inpurchase ~~March~~of ~~2025~~capped calls related to the 2029 Convertible Senior Notes. We are required to, and have the ability to, settle the principal of the 2029 Convertible Senior Notes in cash and any conversion premium in cash, equity, or a combination of both.

Revolving Credit Facility

In December 2024, we entered into a revolving credit agreement (the “Credit Agreement”), which provides for a senior secured revolving credit facility in an aggregate principal amount of $300.0 million (the “2025 Credit Facility”). At our discretion, it allows flexibility for an uncommitted upsize of the aggregate principal amount of the 2025 Credit Facility or the establishment of incremental term loan facilities, in each case, as further set forth in the Credit Agreement. As of July 31, 2025, there were no outstanding borrowings under the 2025 Credit Facility and we were in compliance with related covenants.

Share Repurchase Program

In September 2022, our board of directors authorized and approved a share repurchase program of up to $400.0 million of our outstanding common stock. During fiscal ~~year~~years 2024 and 2025, we did not repurchase any shares of our common stock due to the market price of our shares. As of July 31, ~~2024~~2025, $138.2 million remained available for future share repurchases ~~under~~subject ~~the~~to ~~authorized~~our ~~and~~compliance ~~approved~~with ~~share~~the ~~repurchase~~terms ~~program~~of the Credit Agreement.

During fiscal year 2023, the Company repurchased 4,041,284 shares of common stock at an average price of $64.78 per share, for an aggregate purchase price of $261.8 million.

Cash Flows

Our cash flows from operations are significantly impacted by the timing of invoicing and collections of accounts receivable, annual bonus payments, as well as payments of payroll, commissions, payroll taxes, and other taxes. We expect that we will generate positive cash flows from operations on an annual basis in the future, although this may fluctuate significantly on a quarterly basis. In particular, we typically use more cash during our first fiscal quarter, which is the quarter ending October 31, as we generally pay cash bonuses to our employees for the prior fiscal year and seasonally higher sales commissions from increased customer orders booked in our fourth fiscal quarter of the prior year. We typically generate a significant portion of our annual operating cash flow in our fourth fiscal quarter, which is the quarter ending July 31, due to the significant number of customer agreements with annual billings in that quarter. Additionally, our capital expenditures may fluctuate depending on future office build outs and software development activities subject to capitalization.

We believe that our existing cash and cash equivalents and other sources of liquidity will be sufficient to fund our operations for at least the next 12 months. Our future cash requirements will depend on many factors, including our rate of revenue growth, the expansion of our sales and marketing activities, the timing and extent of our spending to support our research and development and cloud operations efforts, investments in cloud infrastructure, cybersecurity, and operating costs, and expansion into other markets. We also may invest in or acquire complementary businesses, applications or technologies, or may execute on a board-authorized share repurchase program, which may require the use of significant cash resources and/or additional financing.

The following summary of cash flows for the periods indicated has been derived from our consolidated financial statements included elsewhere in this Annual Report on Form 10-K (in thousands):

	Fiscal years ended July 31,
	2024		2023
	2025		2024
Net cash provided by (used in) operating activities	$	~~195~~300,~~748~~867	$	38195,~~395~~748
Net cash provided by (used in) investing activities	$	(52236,~~359~~965)	$	12(52,~~712~~359)
Net cash provided by (used in) financing activities	$	182,~~055~~293	$	~~(261~~1,~~579)~~055

Cash Flows from Operating Activities

Net cash provided by operating activities increased by $~~157~~105.41 million in fiscal year ~~2024~~2025 as compared to fiscal year ~~2023~~2024. The increase in cash provided by operating activities was primarily attributable to ana $90146.65 million ~~decrease~~increase in net ~~loss~~income after excluding the impact of non-cash charges such as deferred taxes, stock-based compensation expense, depreciation and amortization expense, loss on retirement of debt, and other non-cash items, ~~and~~offset aby ~~decrease~~an increase of $6641.84 million inof cash used byin working capital activities.

~~Cash Flows from Investing Activities~~63

Net cash used in investing activities increased by $65.1 million in fiscal year 2024 as compared to fiscal year 2023. The increase in cash used in investing activities was primarily due to higher net purchases of available-for-sale securities transactions of $80.1 million, higher capital expenditures and capitalized software development costs of $1.1 million, offset by an increase of $6.6 million in proceeds from the sale of strategic investments and $9.5 million due to a decrease in the acquisition of new strategic investments.

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Cash Flows from Investing Activities

Net cash used in investing activities increased by $184.6 million in fiscal year 2025 as compared to fiscal year 2024. The increase in cash used in investing activities was primarily due to higher net purchases of available-for-sale securities transactions of $154.5 million, $26.9 million cash paid as purchase consideration for the acquisition of Quantee, higher capital expenditures and capitalized software development costs of $1.9 million, a decrease of $0.9 million in proceeds from the sale of strategic investments, and an increase of $0.4 million of acquisition of new strategic investments.

Cash Flows from Financing Activities

Net cash provided by financing activities increased by $~~262~~81.62 million in fiscal year ~~2024~~2025 as compared to fiscal year ~~2023~~2024. The increase in cash provided by financing activities was primarily because of $~~261~~671.8 million cash received, net of ~~shares~~paid ~~repurchased~~issuance ~~under~~costs, from the ~~authorized~~issuance of the 2029 Convertible Senior Notes and ~~approved~~an ~~share~~increase ~~repurchase~~of ~~program~~$2.9 inmillion ~~fiscal~~cash ~~year~~received ~~2023~~from ~~while~~the noissuance ~~shares~~of ~~were~~common ~~repurchased~~stock ~~during~~upon ~~fiscal~~exercise ~~year~~of ~~2024~~stock options, ~~and~~partially anoffset ~~increase~~by in$353.5 ~~proceeds~~million ~~from~~used ~~option~~to ~~exercises~~retire $220.9 million aggregate principal amount of the 2025 Convertible Senior Notes, $0179.1 million used to settle the outstanding principal of the 2025 Convertible Senior Notes at maturity, $58.8 million used to purchase capped calls related to the 2029 Convertible Senior Notes, and $2.1 million used to establish our revolving credit facility.

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Commitments and Contractual Obligations

Our estimated future obligations consist of leases, royalties, purchase obligations, debt, and taxes as of July 31, ~~2024~~2025. Refer to Note 78 ‘’Leases,’’ Note 89 “Commitments and Contingencies” and Note 1011 “Income Taxes” to our consolidated financial statements included in this Annual Report on Form 10-K for more information.

~~Effective~~During ~~during~~ the ~~fiscal~~ year ended July 31, ~~2023~~2025, we ~~entered~~retired ~~into~~$220.9 anmillion ~~agreement~~aggregate ~~with~~principal aamount ~~cloud~~of ~~infrastructure~~the ~~services~~2025 ~~provider~~Convertible Senior Notes in cash for a$354.0 ~~total~~million, ~~obligation~~which included related accrued interest of $~~600~~0.5 million, ~~over~~and aissued ~~five-year~~$690.0 ~~period~~million aggregate principal amount of the 2029 Convertible Senior Notes. In March 2025, we fully settled at maturity the outstanding $179.1 million aggregate principal amount of the 2025 Convertible Senior Notes through aggregate cash payments totaling $180.2 million, which included related accrued interest of $1.1 million. See Note 7 “Debt.”

Effective during the fiscal year ended July 31, 2023, we assigned the remaining lease term of our previous headquarters and concurrently entered into a sublease for office space in San Mateo, California with the same third party for our new worldwide headquarters.

Off-Balance Sheet Arrangements

Through July 31, ~~2024~~2025, we did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily a result of fluctuations in interest rates and foreign currency exchange rates. We do not hold or issue financial instruments for trading purposes.

Interest Rate Sensitivity

Our exposure to market risk for changes in interest rates relates primarily to our cash, cash equivalents, and investments. Our cash, cash equivalents, and investments as of July 31, ~~2024~~2025 and ~~2023~~2024 were $1,~~129~~483.52 million and $~~927~~1,129.5 million, respectively, primarily consisting of cash, money market funds, corporate debt securities, U.S. government and agency debt securities, commercial paper, asset-backed securities and non-U.S. government securities, which include state, municipal, and foreign government securities. Changes in interest rates, primarily in the United States, affect the interest earned on our cash, cash equivalents, and investments, and their market value. A hypothetical one percent increase in interest rates is estimated to result in a decrease of $35.3 million and $3.0 3 million in the market value of our available-for-sale securities as of July 31, ~~2024~~2025 and ~~2023~~2024, respectively. Any realized gains or losses resulting from such interest rate changes would only occur if we sold the investments prior to maturity.

Foreign Currency Exchange Risk

Our results of operations, ARR, and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Australian Dollar, British Pound, Canadian Dollar, Euro, Indian Rupee, ~~and~~Japanese Yen, New Zealand Dollar, Polish Zloty, and Swiss Franc, the currency of the locations within which we have significant operations. The volatility of exchange rates depends on many factors that we cannot forecast with reliable accuracy. We believe our operating activities act as a natural hedge for a substantial portion of our foreign currency exposure because we typically collect revenue and incur costs in the currency of the location in which we provide our services. However, because our relationships with our customers are long-term in nature so it is difficult to predict if our operating activities will provide a natural hedge in the future. Additionally, changes in foreign currency exchange rates can affect our financial results due to transaction gains or losses related to revaluing certain monetary asset and monetary liability balances that are denominated in currencies other than the functional currency of the entity in which they are recorded. Our monetary assets and liabilities denominated in currencies other than the functional currency of the entity in which they are recorded consist primarily of trade accounts receivable, unbilled accounts receivable, trade accounts payable, and intercompany receivables and payables. For the periods ended July 31, 2024 and 2023, we recorded a foreign currency loss of $10.8 million and $1.8 million, respectively, as a component of other income (expense) in our consolidated statements of operations primarily due to currency exchange rate fluctuations. We will continue to experience fluctuations in foreign currency exchange rates. If a hypothetical ten percent change in foreign currency exchange rates were to occur in the future, the resulting transaction gain or loss is estimated to be approximately $39.1 million. As our international operations grow, we will continue to assess our approach to managing our risk relating to fluctuations in currency rates.

~~Fair Value of Financial Instruments~~64

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nature, it is difficult to predict if our operating activities will provide a natural hedge in the future. Additionally, changes in foreign currency exchange rates can affect our financial results due to transaction gains or losses related to revaluing certain monetary asset and monetary liability balances that are denominated in currencies other than the functional currency of the entity in which they are recorded. Our monetary assets and liabilities denominated in currencies other than the functional currency of the entity in which they are recorded consist primarily of trade accounts receivable, unbilled accounts receivable, trade accounts payable, and intercompany receivables and payables. For the periods ended July 31, 2025 and 2024, we recorded a foreign currency gain of $16.7 million and loss of $10.8 million, respectively, as a component of other income (expense) in our consolidated statements of operations primarily due to currency exchange rate fluctuations. We will continue to experience fluctuations in foreign currency exchange rates. If a hypothetical ten percent change in foreign currency exchange rates were to occur in the future, the resulting transaction gain or loss is estimated to be approximately $60.7 million. As our international operations grow, we will continue to assess our approach to managing our risk relating to fluctuations in currency rates.

Fair Value of Financial Instruments

We do not have material exposure to market risk with respect to investments in financial instruments, as our investments primarily consist of high quality liquid investments purchased with a remaining maturity of three years or less. We do not use derivative financial instruments for speculative or trading purposes. However, this current position does not preclude our adoption of specific hedging strategies in the future.

Our strategic investments in privately held securities are in various classes of equity. The particular securities we hold, and their rights and preferences relative to those of other securities within the capital structure, may impact the magnitude by which our investment value moves in relation to movements in the total enterprise value of the company in which we are invested. As a result, our investment in a specific company may move by more or less than any change in value of that overall company. In addition, the financial success of our investment in any company is typically dependent on a liquidity event, such as a public offering, acquisition, or other favorable market event reflecting appreciation to the value of our investment. All of our investments, particularly those in privately held companies, are therefore subject to a risk of partial or total loss of invested capital.

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Item 8.Financial Statements and Supplemental Data

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm (PCAOB ID: 185)			6467
Consolidated Balance Sheets			6669
Consolidated Statements of Operations			6770
Consolidated Statements of Comprehensive Income (Loss)			6871
Consolidated Statements of Stockholders’ Equity			6972
Consolidated Statements of Cash Flows			7072
Notes to Consolidated Financial Statements			7174

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Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors

Guidewire Software, Inc.:

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting

We have audited the accompanying consolidated balance sheets of Guidewire Software, Inc. and subsidiaries (the Company) as of July 31, ~~2024~~2025 and ~~2023~~2024, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for each of the years in the three-year period ended July 31, ~~2024~~2025, and the related notes (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of July 31, ~~2024~~2025, based on criteria established in Internal Control -– Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of July 31, ~~2024~~2025 and ~~2023~~2024, and the results of its operations and its cash flows for each of the years in the three-year period ended July 31, ~~2024~~2025, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of July 31, ~~2024~~2025 based on criteria established in Internal Control -– Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Basis for Opinions

The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Evaluation of revenue related to software licensing arrangements and subscriptions to cloud services with non-standard terms

As discussed in Notes 1 and 2 to the consolidated financial statements, revenue was derived principally from subscriptions to cloud services, software licensing arrangements, and implementation and other professional services. The Company recognized total revenue of $~~980~~1,202.5 million for the year ended July 31, ~~2024~~2025. The Company’s software licensing arrangements ~~generally~~are ~~have~~sold aunder ~~two-year~~an initial term and subscriptions to cloud services generally have a ~~three to~~ five-year term, with a customer option to renew on an annual basis after the initial term. Consideration for subscriptions to cloud services and software licensing arrangements is typically billed in advance on an annual basis over the term.

We identified the evaluation of revenue from subscriptions to cloud services and software licensing arrangements with non-standard terms and conditions as a critical audit matter. Significant auditor judgment was required to evaluate the Company’s assessment of the impact on revenue recognition of non-standard terms and conditions, including, the identification and evaluation of the accounting impact of contract modifications related to software licensing term extensions, and arrangements that provide a customer with the ability to transition from a software licensing arrangement to a subscription to cloud services during the contractual term.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of an internal control related to the critical audit matter. This control is related to the identification and evaluation of subscriptions to cloud services and software licensing arrangements with non-standard terms and conditions. We tested certain subscriptions to cloud services and software licensing arrangements by reading the underlying customer agreements and evaluating the Company’s assessment of the contractual terms and conditions in accordance with revenue recognition requirements. Specifically, this included an evaluation of the Company’s identification and assessment of non-standard terms and conditions that could give rise to special accounting consideration.

/s/ KPMG LLP

We have served as the Company’s auditor since 2006.

Santa Clara, California

September 1611, ~~2024~~2025

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GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except for share data)

	July 31,2024		July 31,2023
	July 31,2025		July 31,2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	~~547~~697,~~992~~902	$	~~401~~547,~~813~~992
Short-term investments	~~455~~451,~~576~~541		~~396~~455,~~872~~576
Accounts receivable, net of allowances of $646 and $218, respectively	137,339		151,034
Accounts receivable, net of allowances of $1,166 and $646, respectively	140,639		137,339
Unbilled accounts receivable, net	87130,~~031~~959		87,~~752~~031
Prepaid expenses and other current assets	6786,~~596~~374		6267,~~132~~596
Total current assets	1,~~295~~507,~~534~~415		1,~~099~~295,~~603~~534
Long-term investments	~~125~~333,~~885~~754		~~128~~125,~~782~~885
Unbilled accounts receivable, net	~~4,157~~670		114,~~112~~157
Property and equipment, net	5560,~~409~~436		5455,~~499~~409
Operating lease assets	4339,~~750~~309		5243,~~373~~750
Intangible assets, net	912,~~005~~042		149,~~473~~005
Goodwill	~~372~~393,~~214~~978		372,214
Deferred tax assets, net	~~253~~297,~~085~~234		~~226~~253,~~875~~085
Other assets	6776,~~255~~261		67,~~957~~255
TOTAL ASSETS	$	2,~~226~~721,~~294~~099	$	2,~~027~~226,~~888~~294
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	1528,~~209~~797	$	3415,~~627~~209
Accrued employee compensation	~~109~~140,~~084~~613		~~103~~109,~~980~~084
Deferred revenue, net	~~281~~340,~~855~~253		~~206~~281,~~923~~855
Convertible senior notes, net	~~398,903~~—		—398,903
Other current liabilities	3235,~~584~~139		2732,~~731~~584
Total current liabilities	~~837~~544,~~635~~802		~~373~~837,~~261~~635
Lease liabilities	3430,~~721~~687		4234,~~972~~721
Convertible senior notes, net	—674,568		~~397,171~~—
Deferred revenue, net	34,~~628~~533		53,~~988~~628
Other liabilities	79,~~578~~279		97,~~030~~578
Total liabilities	~~883~~1,~~562~~263,869		~~828~~883,~~422~~562
Commitments and contingencies (Note 8)
Commitments and contingencies (Note 9)
STOCKHOLDERS’ EQUITY:
Common stock, par value $0.0001 per share—500,000,000 shares authorized as of July 31, 2024 and 2023; 83,025,637 and 81,440,669 shares issued and outstanding as of July 31, 2024 and 2023, respectively	8		8
Common stock, par value $0.0001 per share—500,000,000 shares authorized as of July 31, 2025 and 2024; 84,530,418 and 83,025,637 shares issued and outstanding as of July 31, 2025 and 2024, respectively	8		8
Additional paid-in capital	12,~~979~~020,~~021~~393		1,~~831~~979,~~267~~021
Accumulated other comprehensive income (loss)	(128,~~244~~922)		(1312,~~859~~244)
Retained earnings (accumulated deficit)	(~~624~~554,~~053~~249)		(~~617~~624,~~950~~053)
Total stockholders’ equity	1,~~342~~457,~~732~~230		1,~~199~~342,~~466~~732
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,~~226~~721,~~294~~099	$	2,~~027~~226,~~888~~294

See accompanying Notes to Consolidated Financial Statements.

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GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

Fiscal years ended July 31,

2024

2023

2022

2025

2024

2023

Revenue:

Subscription and support

~~549~~731,~~087~~296

~~429~~549,~~667~~087

~~343~~429,~~708~~667

License

~~250~~251,~~176~~935

~~265~~250,~~593~~176

~~258~~265,~~631~~593

Services

~~181~~219,~~234~~228

~~210~~181,~~081~~234

210,~~275~~081

Total revenue

~~980~~1,~~497~~202,459

~~905~~980,~~341~~497

~~812~~905,~~614~~341

Cost of revenue:

Subscription and support

~~204~~235,~~794~~106

~~210~~204,~~507~~794

~~202~~210,~~832~~507

License

43,~~536~~624

64,~~488~~536

86,~~754~~488

Services

~~187~~211,~~806~~676

~~230~~187,~~135~~806

~~223~~230,~~852~~135

Total cost of revenue

~~397~~450,~~136~~406

~~447~~397,~~130~~136

~~435~~447,~~438~~130

Gross profit:

Subscription and support

~~344~~496,~~293~~190

~~219~~344,~~160~~293

~~140~~219,~~876~~160

License

~~245~~248,~~640~~311

~~259~~245,~~105~~640

~~249~~259,~~877~~105

Services

(67,~~572)~~552

(206,~~054~~572)

(1320,~~577~~054)

Total gross profit

~~583~~752,~~361~~053

~~458~~583,~~211~~361

~~377~~458,~~176~~211

Operating expenses:

Research and development

~~269~~296,~~381~~160

~~249~~269,~~746~~381

~~229~~249,~~230~~746

Sales and marketing

~~199~~230,~~033~~346

~~188~~199,~~224~~033

~~182~~188,~~620~~224

General and administrative

~~167~~184,~~520~~479

~~169~~167,~~731~~520

~~164~~169,~~773~~731

Total operating expenses

~~635~~710,~~934~~985

~~607~~635,~~701~~934

~~576~~607,~~623~~701

Income (loss) from operations

~~(52~~41,~~573)~~068

(~~149~~52,~~490~~573)

(~~199~~149,~~447~~490)

Interest income

4356,~~478~~625

2443,~~389~~478

624,~~277~~389

Interest expense

(613,~~738~~211)

(6,~~716~~738)

(196,~~446~~716)

Other income (expense), net

(1135,~~005~~087)

(211,~~277~~005)

(172,~~099~~277)

Income (loss) before provision for (benefit from) income taxes

~~(26~~49,~~838)~~395

(~~134~~26,~~094~~838)

(~~229~~134,~~715~~094)

Provision for (benefit from) income taxes

(20,~~735~~409)

(2220,~~239~~735)

(4922,~~284~~239)

Net income (loss)

(669,~~103)~~804

(~~111~~6,~~855~~103)

(~~180~~111,~~431~~855)

Net income (loss) per share:

Basic and diluted

(0.07)

(1.36)

(2.16)

Basic

0.83

(0.07)

(1.36)

Diluted

0.81

(0.07)

(1.36)

Shares used in computing net income (loss) per share:

Basic and diluted

82,291,483

82,176,629

83,569,517

Basic

83,846,793

82,291,483

82,176,629

Diluted

85,911,653

82,291,483

82,176,629

See accompanying Notes to Consolidated Financial Statements.

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GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

Fiscal years ended July 31,

2024

2023

2022

2025

2024

2023

Net income (loss)

(669,~~103)~~804

(~~111~~6,~~855~~103)

(~~180~~111,~~431~~855)

Other comprehensive income (loss):

Foreign currency translation adjustments

(13,~~640)~~668

2(1,~~642~~640)

(72,~~201)~~642

Unrealized gain (loss) on available-for-sale securities

~~4,505~~(217)

54,~~377~~505

(85,~~342)~~377

Tax benefit (expense) on unrealized gain (loss) on available-for-sale securities

(~~558~~283)

(~~1,053~~558)

2(1,~~009~~053)

Reclassification adjustment for realized gain (loss) included in net income (loss)

(693)

(980)

(93)

Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)

154

(693)

(980)

Total other comprehensive income (loss)

13,~~614~~322

51,~~986~~614

~~(13~~5,~~627)~~986

Comprehensive income (loss)

(473,~~489)~~126

(~~105~~4,~~869~~489)

(~~194~~105,~~058~~869)

See accompanying Notes to Consolidated Financial Statements.

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GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands, except for share data)

	Common stock			Additionalpaid-incapital		Accumulatedothercomprehensiveincome (loss)		Retained earnings (accumulated deficit)		Totalstockholders’equity
	Shares	Amount
Balance as of July 31, 2021	83,194,157	$	8	$	1,617,204	$	(6,218)	$	(66,100)	$	1,544,894
Net income ( loss)	—	—		—		—		(180,431)		(180,431)
Issuance of common stock upon exercise of stock options	10,472	—		116		—		—		116
Issuance of common stock upon vesting of RSUs	1,202,125	—		—		—		—		—
Stock-based compensation	—	—		138,156		—		—		138,156
Repurchase and retirement of common stock	(322,545)	—		—		—		(37,451)		(37,451)
Foreign currency translation adjustment	—	—		—		(7,201)		—		(7,201)
Unrealized gain (loss) on available-for-sale securities, net of tax	—	—		—		(6,333)		—		(6,333)
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)	—	—		—		(93)		—		(93)
Balance as of July 31, 2022	84,084,209	$	8	$	1,755,476	$	(19,845)	$	(283,982)	$	1,451,657
Net income (loss)	—	—		—		—		(111,855)		(111,855)
Net income ( loss)	—	—		—		—		(111,855)		(111,855)
Issuance of common stock upon exercise of stock options	6,582	—		228		—		—		228
Issuance of common stock upon vesting of RSUs	1,391,162	—		—		—		—		—
Stock-based compensation	—	—		143,566		—		—		143,566
Repurchase and retirement of common stock	(4,041,284)	—		—		—		(261,807)		(261,807)
Foreign currency translation adjustment	—	—		—		2,642		—		2,642
Unrealized gain (loss) on available-for-sale securities, net of tax	—	—		—		4,324		—		4,324
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)	—	—		—		(980)		—		(980)
Adoption of Accounting Standards Update ("ASU") 2020-06				(68,003)				39,694		(28,309)
Balance as of July 31, 2023	81,440,669	$	8	$	1,831,267	$	(13,859)	$	(617,950)	$	1,199,466
Net income (loss)	—	—		—		—		(6,103)		(6,103)
Issuance of common stock upon exercise of stock options	15,517	—		1,054		—		—		1,054
Issuance of common stock upon vesting of RSUs	1,569,451	—		—		—		—		—
Stock-based compensation	—	—		146,700		—		—		146,700
Foreign currency translation adjustment	—	—		—		(1,640)		—		(1,640)
Unrealized gain (loss) on available-for-sale securities, net of tax	—	—		—		3,948		—		3,948
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)	—	—		—		(693)		—		(693)
Balance as of July 31, 2024	83,025,637	$	8	$	1,979,021	$	(12,244)	$	(624,053)	$	1,342,732
Net income (loss)	—	—		—		—		69,804		69,804
Issuance of common stock upon exercise of stock options	56,880	—		3,902		—		—		3,902
Issuance of common stock upon vesting of RSUs	1,473,839	—		—		—		—		—
Stock-based compensation		—		161,678		—		—		161,678
Purchase of capped calls	—	—		(58,788)		—		—		(58,788)
Retirement of convertible senior notes	—	—		(79,366)		—		—		(79,366)
Deferred tax asset related to debt issuance of convertible senior notes	—	—		13,952		—		—		13,952
Settlement of convertible senior notes	671,202	—		(6)		—		—		(6)
Settlement of capped calls	(697,140)	—		—		—		—		—
Foreign currency translation adjustment	—	—		—		3,668		—		3,668
Unrealized gain (loss) on available-for-sale securities, net of tax	—	—		—		(500)		—		(500)
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss)	—	—		—		154		—		154
Balance as of July 31, 2025	84,530,418	$	8	$	2,020,393	$	(8,922)	$	(554,249)	$	1,457,230

See accompanying Notes to Consolidated Financial Statements.

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GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Fiscal years ended July 31,
	2024		2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(6,103)	$	(111,855)	$	(180,431)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	22,309		24,838		33,540
Amortization of debt discount and issuance costs	1,732		1,703		14,391
Amortization of contract costs	17,816		17,966		14,456
Stock-based compensation	146,460		142,842		137,011
Changes to allowance for credit losses and revenue reserves	526		(131)		2,597
Deferred income tax	(26,847)		(27,516)		(54,115)
Amortization of premium (accretion of discount) on available-for-sale securities, net	(12,894)		(4,858)		5,498
Gain on sale of strategic investment	(1,803)		—		—
Changes in fair value of strategic investments	1,957		802		(1,545)
Accelerated depreciation related to lease assignment	—		26,921		—
Gain from lease assignment	—		(18,419)		—
Other non-cash items affecting net income (loss)	(74)		164		63
Changes in operating assets and liabilities:
Accounts receivable	12,631		(7,301)		(42,545)
Unbilled accounts receivable	7,676		(13,435)		18,106
Prepaid expenses and other assets	(33,534)		(22,613)		(23,390)
Operating lease assets	8,623		(19,000)		7,160
Accounts payable	(18,933)		(6,080)		13,580
Accrued employee compensation	6,453		12,440		(8,942)
Deferred revenue	72,572		34,635		31,564
Lease liabilities	(7,389)		9,548		(9,637)
Other liabilities	4,570		(2,256)		4,699
Net cash provided by (used in) operating activities	195,748		38,395		(37,940)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities	(615,935)		(506,115)		(519,536)
Maturities and sales of available-for-sale securities	576,886		547,094		908,914
Purchases of property and equipment	(6,362)		(5,821)		(9,510)
Capitalized software development costs	(12,165)		(11,606)		(12,266)
Acquisition of strategic investments	(1,336)		(10,840)		(11,560)
Sale of strategic investment	6,553		—		—
Acquisition of business, net of acquired cash	—		—		(43,830)
Net cash provided by (used in) investing activities	(52,359)		12,712		312,212
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock upon exercise of stock options	1,055		228		116
Repurchase and retirement of common stock	—		(261,807)		(37,451)
Net cash provided by (used in) financing activities	1,055		(261,579)		(37,335)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(2,050)		2,576		(7,161)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	142,394		(207,896)		229,776
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period	406,790		614,686		384,910
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period	$	549,184	$	406,790	$	614,686
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	$	5,000	$	5,000	$	5,000
Cash paid for income taxes, net of tax refunds	$	8,919	$	5,167	$	4,323
Accruals for purchase of property and equipment	$	682	$	1,136	$	1,114
Accruals for capitalized cloud software development costs	$	920	$	1,094	$	1,250

See accompanying Notes to Consolidated Financial Statements.

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	Fiscal years ended July 31,
	2025		2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	69,804	$	(6,103)	$	(111,855)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	23,758		22,309		24,838
Amortization of debt issuance costs	3,758		1,732		1,703
Amortization of contract acquisition costs	20,050		17,816		17,966
Stock-based compensation	161,556		146,460		142,842
Changes to allowance for credit losses and revenue reserves	526		526		(131)
Deferred income tax	(31,780)		(26,847)		(27,516)
Amortization of premium (accretion of discount) on available-for-sale securities, net	(10,326)		(12,894)		(4,858)
Gain on sale of strategic investments	(3,671)		(1,803)		—
Changes in fair value of strategic investments	2,130		1,957		802
Accelerated depreciation related to lease assignment	—		—		26,921
Gain from lease assignment	—		—		(18,419)
Loss on retirement of debt	53,565		—		—
Other non-cash items affecting net income (loss)	186		(74)		164
Changes in operating assets and liabilities:
Accounts receivable	(3,348)		12,631		(7,301)
Unbilled accounts receivable	(38,930)		7,676		(13,435)
Prepaid expenses and other assets	(47,211)		(33,534)		(22,613)
Operating lease assets	4,441		8,623		(19,000)
Accounts payable	11,399		(18,933)		(6,080)
Accrued employee compensation	30,090		6,453		12,440
Deferred revenue	56,617		72,572		34,635
Lease liabilities	(2,891)		(7,389)		9,548
Other liabilities	1,144		4,570		(2,256)
Net cash provided by (used in) operating activities	300,867		195,748		38,395
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities	(858,571)		(615,935)		(506,115)
Maturities and sales of available-for-sale securities	665,012		576,886		547,094
Purchases of property and equipment	(5,741)		(6,362)		(5,821)
Capitalized software development costs	(14,714)		(12,165)		(11,606)
Acquisition of strategic investments	(1,772)		(1,336)		(10,840)
Sale of strategic investments	5,671		6,553		—
Acquisition of business, net of acquired cash	(26,850)		—		—
Net cash provided by (used in) investing activities	(236,965)		(52,359)		12,712
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible senior notes, net of issuance costs	671,840		—		—
Payment for the retirement of convertible senior notes	(353,535)		—		—
Payment for the maturity of convertible senior notes	(179,061)		—		—
Purchase of capped calls	(58,788)		—		—
Payment of revolving credit facility costs	(2,065)		—		—
Proceeds from issuance of common stock upon exercise of stock options	3,902		1,055		228
Repurchase and retirement of common stock	—		—		(261,807)
Net cash provided by (used in) financing activities	82,293		1,055		(261,579)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	3,715		(2,050)		2,576
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	149,910		142,394		(207,896)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period	549,184		406,790		614,686
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period	$	699,094	$	549,184	$	406,790
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	$	11,796	$	5,000	$	5,000
Cash paid for income taxes, net of tax refunds	$	7,557	$	8,919	$	5,167
Accruals for purchase of property and equipment	$	2,809	$	682	$	1,136
Accruals for capitalized software development costs	$	1,114	$	920	$	1,094
Accruals for business acquisition purchase consideration holdback	$	987	$	—	$	—

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See accompanying Notes to Consolidated Financial Statements.

GUIDEWIRE SOFTWARE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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1. The Company and Summary of Significant Accounting Policies and Estimates

Company

Guidewire Software, Inc., a Delaware corporation, was incorporated on September 20, 2001. Guidewire Software, Inc., together with its subsidiaries (the “Company”), provides a technology platform which combines core ~~operations,~~systems ~~digital~~of ~~engagement~~record with digital, analytics, ~~machine learning,~~ and artificial intelligence (“AI”) applications. The Company’s technology platform supports core insurance operations, including underwriting, policy administration, claim management, and billing; insights into data that can improve business decision making; and digital sales, service, and claims experiences for policyholders, agents, and other key stakeholders. The Company’s customers are primarily property and casualty insurance carriers.

Basis of Presentation and Consolidation

The ~~Company’s~~ consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements and notes include the Company and its wholly-owned subsidiaries and reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the periods presented. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. Significant items subject to such estimates include, but are not limited to, revenue recognition, the useful lives of property and equipment and intangible assets, accounts receivable and unbilled accounts receivable allowances, valuation allowance for deferred tax assets, stock-based compensation, annual bonus attainment, income tax uncertainties, fair value of convertible senior notes and investments, valuation of goodwill and intangible assets, fair value of acquired assets and assumed liabilities, software development costs to be capitalized, leases, and contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from these estimates.

Segment Information

The Company has determined that the chief executive officer is the chief operating decision maker. The Company’s chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources and assess performance. Accordingly, the Company has determined that it operates in a single reportable segment. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements and accompanying notes.

Foreign Currency

The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable balance sheet date. Revenue and expenses are translated at the average exchange rate prevailing during the period in which the transactions occur. The effects of foreign currency translations are recorded in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity in the accompanying consolidated balance sheets. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency of the recording entity are included in other income (expense) in the consolidated statements of operations.

Cash and Cash Equivalents

Cash and cash equivalents are comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Cash equivalents primarily consist of commercial paper and money market funds.

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Restricted Cash

Unearned acquisition consideration holdback subject to service conditions is held in escrow and considered restricted cash. AtThe ~~July 31, 2024 and 2023,~~ unearned ~~acquisition~~ consideration acquisition holdback ~~of $1.2 million and $2.9 million, respectively, was~~ included in prepaid expenses and other current assets ~~in the consolidated balance sheets. At July 31, 2024, there~~ was ~~no unearned acquisition holdback included in other assets in the consolidated balance sheets~~$1.2 Atmillion at July 31, ~~2023,~~2025 ~~unearned~~and ~~acquisition~~2024 ~~holdback of $2.1 million was included~~ in ~~other assets in~~ the consolidated balance sheets.

Business Combinations

The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. Goodwill is calculated as the difference between the acquisition-date fair value of the consideration transferred and the values assigned to the assets acquired and liabilities assumed. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and subject to refinement, and, as a result, actual results may differ from estimates. During the measurement period, which may be up to one year from the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, the Company may record adjustments to the fair value of these assets and liabilities, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired and liabilities assumed, whichever comes first, subsequent adjustments, if any, are recorded to the consolidated statements of operations.

Investments

Management determines the appropriate classification of investments at the time of purchase based upon management’s intent with regard to such investments. All investments in the periods presented have been classified as available-for-sale.

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The Company classifies investments as short-term when they have remaining contractual maturities of one year or less from the balance sheet date, and as long-term when the investments have remaining contractual maturities of more than one year from the balance sheet date. Investments are recorded at fair value with unrealized holding gains and losses, net of taxes, generally included in accumulated other comprehensive income (loss). Unrealized losses related to the credit worthiness of an investment, if any, are recorded in other income (expense), net on the consolidated statements of operations.

Property, Equipment, and Software Development Costs

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Maintenance and repairs that do not extend the life or improve an asset are expensed in the period incurred.

The estimated useful lives of property and equipment are as follows:


Computer hardware						3 years
Purchased software						3 years
Capitalized software development costs						3 to 5 years
Equipment and machinery						3 to 5 years
Furniture and fixtures						5 years
Leasehold improvements						Shorter of 10 years or remaining lease term

Certain development costs related to software delivered to customers (“self-managed software”) incurred subsequent to the establishment of technological feasibility are subject to capitalization and amortized over the estimated lives of the related products. Technological feasibility is established upon completion of a working model. Costs incurred subsequent to the establishment of technological feasibility have not been material and, therefore, all software development costs related to self-managed software have been charged to research and development expense in the accompanying consolidated statements of operations as incurred.

The Company capitalizes software development costs for technology applications that provide new or significantly enhanced functionality that the Company will offer solely as a cloud-based subscription. Capitalized costs are primarily comprised of compensation for employees who are directly associated with cloud software development projects. The Company begins to capitalize costs when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. If any of these criteria cease being met before the software reaches its intended use, any capitalized costs related to the project will be impaired. When the software reaches its intended use, which is typically once the technology applications are available for general release, capitalized costs are amortized to cost of revenue over the estimated useful lives of the related assets, generally estimated to be three to five years. Costs incurred prior to meeting these capitalization criteria and costs incurred for training and maintenance are recorded as research and development ~~expense in the Company’s consolidated statements of operations. Capitalized software development costs are recorded in property and equipment in the Company’s consolidated balance sheets.~~

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expense in the consolidated statements of operations. Capitalized software development costs are recorded in property and equipment in the consolidated balance sheets.

Leases

The Company accounts for leases under Accounting Standards Codification Topic 842: Leases (“ASC 842”) issued by the Financial Accounting Standards Board. Under ASC 842, the Company determines if an arrangement is a lease at inception of the agreement. If an arrangement is determined to be a lease, an operating lease asset, also known as a right-of-use asset, and lease liability are recorded based on the present value of lease payments over the non-cancellable lease term. In connection with determining the present value of the lease payments, the Company considers only payments that are fixed and determinable at the time of commencement, including non-lease components that are fixed throughout the lease term. Variable components of the lease payments, such as utilities, maintenance, and taxes, are expensed as incurred and not included in determining the present value of the lease liability. As the Company's leases generally do not provide an implicit rate, the Company's incremental borrowing rate, calculated based on available information at the lease commencement date, is used in determining the present value of the lease payments. The Company's incremental borrowing rate is a hypothetical rate based on the Company's understanding of its credit rating. The lease term used to calculate the lease liability and operating lease asset includes options to extend or terminate the lease if it is reasonably certain the Company will exercise that option. Operating lease assets also include any lease payments made prior to commencement and are recorded net of any lease incentives received. Lease expense is recognized on a straight-line basis over the lease term and is reflected in the consolidated statements of operations in each of the cost of revenue and operating expense categories.

The Company may also enter into agreements to sublease unoccupied office space. Any sublease payments received in excess of the straight-line rent expense related to the subleased space are recorded as an offset to operating expenses over the sublease term.

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Operating leases are included in operating lease assets, other current liabilities, and lease liabilities on the consolidated balance sheets.

Impairment of Long-Lived Assets, Intangible Assets, and Goodwill

The Company evaluates its long-lived assets, consisting of property and equipment, operating lease assets, and intangible assets, for indicators of possible impairment when events or changes in circumstances indicate that the carrying amount of certain assets may not be recoverable. Impairment exists if the carrying amount of such assets exceed the estimates of future net undiscounted cash flows expected to be generated by such assets. Should impairment exist, the impairment loss would be measured based on the excess carrying amount of the assets over the estimated fair value of the assets. There have been no long-lived asset impairments during the periods presented.

The Company tests goodwill for impairment annually, during the fourth quarter of each fiscal year, and in the interim whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company evaluates qualitative factors to determine whether it is more likely than not that the fair value of the Company’s single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment test. In performing the qualitative assessment, the Company considers events and circumstances, including, but not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit’s net assets, and changes in the price of the Company’s common stock. If, after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the goodwill impairment test is not performed. There have been no goodwill impairments during the periods presented.

Convertible Senior Notes

In March 2018, the Company issued $400.0 million aggregate principal amount of 1.25% Convertible Senior Notes due March 2025 (the “2025 Convertible Senior Notes”). ~~Prior~~In toOctober ~~the adoption of ASU 2020-06 on August 1~~2024, ~~2022, upon~~ the ~~issuance of the Convertible Senior Notes, the~~ Company ~~separated~~issued ~~the Convertible Senior Notes into liability and equity components~~$690.0 ~~The~~million ~~carrying~~aggregate principal amount of ~~the liability component was calculated by measuring the fair value of a similar liability that did not have an associated convertible feature~~1.25% ~~The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the~~ Convertible Senior Notes asdue aOctober ~~whole.~~2029 ~~The difference between~~ (the ~~principal~~“2029 ~~amount of the~~ Convertible Senior Notes,” and ~~the~~together ~~liability~~with ~~component was initially recorded as a debt discount and was amortized as interest expense using~~ the ~~effective~~2025 ~~interest~~Convertible ~~method~~Senior ~~over~~Notes, the ~~term of the~~ “Convertible Senior Notes”).

The Company accounts for the Convertible Senior Notes as a liability measured at amortized cost. Debt issuance costs incurred in connection with the issuance of the Convertible Senior Notes are reflected in the consolidated balance sheets as a direct deduction from the carrying amount of the outstanding Convertible Senior Notes. These costs are amortized using the effective interest rate method over the terms of the Convertible Senior Notes and are included within interest expense on the consolidated statements of operations.

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Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, investments, accounts receivable, and unbilled accounts receivable. The Company maintains its cash, cash equivalents, and investments with high quality financial institutions. The Company is exposed to credit risk for cash held in financial institutions in the event of a default to the extent that such amounts recorded in the consolidated balance sheets are in excess of amounts that are insured by the Federal Deposit Insurance Corporation.

No customer individually accounted for 10% or more of the Company’s revenue for the years ended July 31, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023. AsFor ofthe periods ended July 31, 2025 and 2024, ~~one~~the ~~customer~~Company ~~accounted~~had ~~for~~one ~~10%~~customer, orwhich ~~more~~were ofdifferent ~~the~~customers ~~Company’s~~in ~~total~~each ~~accounts receivable. As of July 31~~period, ~~2023,~~which ~~no customer~~ accounted for 10% or more of the Company’s total accounts receivable.

Accounts Receivable and Allowances

Accounts receivable are recorded at invoiced amounts and do not bear interest. While the Company does not require collateral, the Company performs ongoing credit evaluations of its customers. The Company maintains an allowance for credit losses based upon the expected collectability of its accounts receivable and unbilled accounts receivable. The expectation of collectability is based on historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with delinquent accounts. Credit losses are recorded in general and administrative expense while billing and other revenue adjustments are recorded against the corresponding revenue financial statement line item in the consolidated statements of operations.

Revenue Recognition

The Company’s revenue is derived from contracts with customers. The majority of the Company’s revenue is derived from subscriptions to its cloud services, licensing arrangements for its software, and implementation and other professional services arrangements. The Company accounts for revenue in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 is to recognize revenue upon the transfer of products to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. When using the term “products,” the Company is generally referring to both our subscription services and term license software.

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Contracts with Customers (“ASC 606”). The core principle of ASC 606 is to recognize revenue upon the transfer of products to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. When using the term “products,” the Company is generally referring to both our subscription services and term license software.

Identification of the contract, or contracts, with the customer

The Company considers the terms and conditions of written contracts and its customary business practices in identifying its contracts. The Company determines it has a contract with a customer when the contract is approved, the Company can identify each party’s rights regarding the products to be transferred, the Company can identify the payment terms for the products, the Company has determined that the customer has the ability and intent to pay, and the contract has commercial substance. In general, contract terms will be reflected in a written document that is signed by both parties. At contract inception, the Company evaluates whether two or more contracts with the same customer should be combined and accounted for as a single contract. The customer’s ability and intent to pay is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer.

Contracts may be modified to account for changes in contract scope or price. The Company considers contract modifications to exist when the modification either creates new rights or obligations or changes the existing enforceable rights and obligations of either party. Contract modifications for products that are distinct from the existing contract and are priced commensurate with their standalone selling price are treated as separate contracts, and are accounted for prospectively. Contract modifications for products that are distinct but are not priced commensurate with their standalone selling price or are not distinct from the existing contract may affect the initial transaction price or the allocation of the transaction price to the performance obligations in the contract. In such cases, recognized revenue may be adjusted.

Identification of the performance obligation in the contract

Performance obligations promised in a contract are identified based on the services or products that will be transferred to the customer that are both:

i.capable of being distinct, whereby the customer can benefit from the service or product either on its own or together with other resources that are readily available from the Company or third parties, and

ii.distinct in the context of the contract, whereby the transfer of the services or products is separately identifiable from other promises in the contract.

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To the extent a contract includes multiple promised services or products, the Company applies judgment to determine whether promised services or products are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised services or products are accounted for as a combined performance obligation.

The Company generates revenue from the following sources, which represent the performance obligations of the Company:

i.Subscription services related to the Company’s Software-as-a-Service ~~(“SaaS”)~~ offerings, including hosting;

ii.Support activities that consist of email and phone support, bug fixes, and unspecified software updates and upgrades released when, and if, available during the support term;

iii.Self-managed software licenses related to term or perpetual agreements; and

iv.Services related to the implementation and configuration of the Company’s products, reimbursable travel, and training.

Subscriptions are typically sold with a ~~three to~~ five-year initial term with a customer option to renew on an annual basis after the initial term. Term licenses have an initial term with a customer option to renew on an annual basis after the initial term. ~~The Company will enter into term licenses with an initial term of two or more years or a renewal period longer than one year.~~ Support for term licenses follows the same contract periods. Professional services typically are time and materials contracts that last for an average period of approximately one year.

Determination of the transaction price

The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services or products to the customer. Consideration may vary due to discounts, incentives, and potential service level credits or contractual penalties. Variable consideration is estimated and included in the transaction price if, in the Company’s judgment, it is probable that there will not be a significant future reversal of cumulative revenue under the contract.

~~Table~~Self-managed ofsoftware ~~Contents~~licenses and subscription services may be subject to either fixed or variable installments. Variable installments are generally subject to changes in a customer’s Direct Written Premium (“DWP”) or a customer’s Gross Written Premium (“GWP”), with certain cloud-delivered products priced based on usage or other metrics. When consideration is subject to variable installments, the Company estimates variable consideration using the expected value method based on historical DWP or GWP usage to the extent that a significant revenue reversal is not probable to occur.

~~Self-managed~~The ~~software~~Company ~~licenses~~elected ~~and~~the ~~subscription~~practical ~~services~~expedient ~~may~~to beevaluate ~~subject~~whether toa ~~either~~significant ~~fixed~~financing orcomponent ~~variable~~exists ~~installments.~~when ~~Variable~~the ~~installments~~contract ~~are~~term ~~generally~~is ~~subject~~greater tothan ~~changes~~one inyear aand ~~customer’s~~the ~~Direct~~timing ~~Written~~of ~~Premium~~revenue ~~(“DWP”)~~recognition oroccurs ain ~~customer’s~~advance ~~Gross~~of ~~Written~~invoicing. ~~Premium~~This ~~(“GWP”).~~timing ~~When~~difference ~~consideration~~occurs when control of the software license is ~~subject~~transferred toat ~~variable~~a ~~installments~~point in time, ~~the~~usually ~~Company~~at ~~estimates~~the ~~variable~~contract ~~consideration~~onset, ~~using~~but the ~~expected~~customer ~~value~~payments ~~method~~occur ~~based~~over ontime. ~~historical~~This ~~DWP~~timing ordifference ~~GWP~~can ~~usage~~also tooccur when subscription services have significant ramps in the ~~extent~~annual ~~that~~invoice aamount over the committed term. A significant ~~revenue~~financing ~~reversal~~component isgenerally does not ~~probable~~exist tounder ~~occur~~the Company’s standard contracting and billing practices.

The Company elected the practical expedient to evaluate whether a significant financing component exists when the contract term is greater than one year and the timing of revenue recognition occurs in advance of invoicing. This timing difference occurs when control of the software license is transferred at a point in time, usually at the contract onset, but the customer payments occur over time. This timing difference can also occur when subscription services have significant ramps in the annual invoice amount over the committed term. A significant financing component generally does not exist under the Company’s standard contracting and billing practices. For example, the Company’s time-based licenses with a two-year initial term have the final payment due at the end of the first year and the Company’s subscription services are generally billed in advance of providing the services.

Allocation of the transaction price to the performance obligations in the contract

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on its standalone selling price (“SSP”) in relation to the total fair value of all performance obligations in the arrangement. Some of the Company’s performance obligations, such as support, implementation services, training services, and a portion of ~~software-as-a-service~~subscription ~~offerings~~services, have observable inputs that are used to determine the SSP of those distinct performance obligations. Where SSP is not directly observable, the Company determines the SSP using information that may include market conditions and other observable inputs. In circumstances when available information to determine SSP is highly variable or uncertain, such as for ~~our~~ term licenses, the Company will use the residual method.

The majority of the Company’s contracts contain multiple performance obligations, such as when licenses are sold with support, implementation services, or training services. Additionally, as customers enter into subscription agreements to migrate from an existing term license agreement, customers may be under contract for self-managed licenses and support, in addition to subscription services, for a period of time, which may require an allocation of the transaction price to each performance obligation. New and migration subscription agreements also typically include implementation, configuration, and training services, which may require an allocation of the transaction price to each performance obligation.

Recognition of revenue when, or as, the Company satisfies a performance obligation

The Company recognizes revenue when control of the services or products is transferred to a customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. The Company is principally ~~responsible for the satisfaction of its distinct performance obligations, which are satisfied either at a point in time or over a period of time.~~

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responsible for the satisfaction of its distinct performance obligations, which are satisfied either at a point in time or over a period of time.

Performance obligations satisfied at a point in time

Self-managed term and perpetual software licenses comprise the majority of distinct performance obligations that are satisfied at a point in time. Revenue is recognized at the point in which the self-managed software licenses are made available to a customer. Consideration for self-managed software licenses is typically billed in advance on an annual basis over the license term.

Performance obligations satisfied over a period of time

Subscriptions, support activities, and professional service arrangements comprise the majority of distinct performance obligations that are satisfied over a period of time.

Revenue from subscription arrangements is recognized ratably over the subscription period using a time-based measure of progress as customers receive the benefits from their subscriptions over the contractually agreed-upon term. ~~The~~Subscription ~~Company’s~~agreements ~~subscription~~generally ~~arrangements~~have ~~are~~an ~~generally~~initial ~~three~~term toof five years, inwith ~~duration~~annual renewals thereafter. In some instances, customers sign subscription agreements with an initial term of seven or more years. Consideration for subscription arrangements is typically billed in advance on an annual basis over the contract period and the annual billing may ramp over the contract period.

Revenue from support activities associated with self-managed licenses is a stand-ready obligation, which is generally recognized over the contractually agreed-upon term using a time-based measure of progress as customers receive benefits from the availability of support technicians over the support period. Consideration for support activities is typically billed in advance on an annual basis. The Company’s support activities are consistently priced as a percentage of the associated self-managed software license.

Revenue from professional service arrangements is recognized over the service period as the underlying services are performed.

~~Table~~In substantially all of ~~Contents~~the Company’s professional service contracts, services are separately identifiable performance obligations for which related revenue and costs are recognized according to when each service obligation is delivered. The majority of the Company’s professional services engagements are billed and recognized on a time and materials basis. In select situations, the Company will contract professional services on a fixed fee basis, where the Company generally recognizes services revenue over time, using an input method. The measure of progress of the professional services being provided under these fixed fee arrangements is based on hours incurred compared to estimates of the total hours to complete the performance obligation.

In substantially all of the Company’s professional service contracts, services are separately identifiable performance obligations for which related revenue and costs are recognized according to when each service obligation is delivered. Substantially all professional services engagements are billed and recognized on a time and materials basis. In select situations, the Company will contract professional services on a fixed fee basis, where the Company generally recognizes services revenue over time, using an input method. The measure of progress of the professional services being provided under these fixed fee arrangements is based on hours incurred compared to estimates of the total hours to complete the performance obligation.

When professional services are sold with a self-managed license or subscription arrangement, the Company evaluates whether the performance obligations are distinct or separately identifiable, or whether they constitute a single performance obligation.

Balance Sheet Presentation

Contracts with customers are reflected in the consolidated balance sheets as follows:

•Accounts receivable, net represents amounts billed to customers in accordance with contract terms for which payment has not yet been received. It is presented net of any allowances as part of current assets in the consolidated balance sheets.

•Unbilled accounts receivable, net represents amounts that are unbilled due to agreed-upon contractual terms in which billing occurs subsequent to revenue recognition. This situation typically occurs when the Company transfers control of self-managed software licenses to customers up-front, but invoices customers annually over the term of the license. Additionally, subscription agreements with ramped billing schedules could result in unbilled accounts receivable in the early years of the committed term. Unbilled accounts receivable is classified as either current or non-current based on the duration of remaining time between the date of the consolidated balance sheets and the anticipated due date of the underlying receivables. Unbilled accounts receivable is evaluated for credit losses based upon the expected collectibility of future accounts receivable, customer payment history, global economic conditions, and ongoing credit evaluations of customers. Unbilled accounts receivable is presented net of allowance for credit losses, if applicable, in the consolidated balance sheets. This balance represents contract assets.

•Contract costs include customer acquisition costs, which consist primarily of sales commissions and related payroll taxes paid to sales personnel and referral fees paid to third-parties, and costs to fulfill a contract, which consist primarily of royalties payable to third-party software providers that support both the Company’s software offerings and support services. The short-term portion is presented as prepaid and other current assets. The long-term portion is presented as other assets.

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•Deferred costs represent costs related to our professional services that have been deferred to align with revenue recognition. The short-term portion is presented as prepaid and other current assets. The long-term portion is presented as other assets.

•Deferred revenue, net represents amounts that have been invoiced and for which the Company has the right to bill, but that have not been recognized as revenue because the related services or products have not been transferred to the customer. Deferred revenue consists primarily of subscriptions and support services that are billed annually in advance but recognized over time. Deferred revenue that will be realized during the 12-month period following the date of the consolidated balance sheets is recorded as current. The remaining deferred revenue is recorded as non-current. These balances represent contract liabilities.

The Company may receive consideration from its customers in advance of performance on a portion of the contract, thereby creating a contractual liability, and, on another portion of the contract, perform in advance of receiving consideration, thereby creating a contractual asset. Contract assets and liabilities related to rights and obligations in a contract are interdependent. Therefore, contract assets and liabilities are presented net at the contract level, as either a single contract asset or a single contract liability, in the consolidated balance sheets.

Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. The Company excludes amounts related to professional services contracts that are on a time and materials basis from remaining performance obligations.

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Contract Costs

Contract costs consist of two components: customer acquisition costs and costs to fulfill a contract.

Customer acquisition costs are capitalized only if the costs are incrementally incurred to obtain a customer contract and the expected amortization period is greater than one year. Contract costs are classified as either current or non-current based on the duration of time remaining between the date of the consolidated balance sheets and the anticipated amortization date of the associated costs. Capitalized customer acquisition costs related to software licenses, subscriptions, and support services are amortized over the anticipated period in which the benefit is expected to be received, which the Company estimates to be approximately five years. The amortization of customer acquisition costs is classified as a sales and marketing expense in the consolidated statement of operations.

Costs to fulfill a contract, or fulfillment costs, are only capitalized if they relate directly to a contract with a customer, the costs generate or enhance resources that will be used to satisfy performance obligations in the future, and the costs are expected to be recoverable. Fulfillment costs would be generally amortized over the same period of time as the customer acquisition costs. The amortization of fulfillment costs is classified as a cost of revenue in the consolidated statement of operations.

Warranties

The Company generally provides a warranty for its software services and products to its customers for periods ranging from three to 12 months. The Company’s software products are generally warranted to be free of defects in materials and workmanship under normal use and to substantially perform as described in published documentation. The Company’s services are generally warranted to be performed in a professional manner and to materially conform to the specifications set forth in the related customer contract. In the event there is a failure of such warranties, the Company generally will correct the problem or provide a reasonable workaround or replacement product. If the Company cannot correct the problem or provide a workaround or replacement product, then the customer’s remedy is generally limited to a refund of the fees paid for the non-conforming products or services. Warranty expense has been insignificant to date.

Advertising Costs

Advertising costs are expensed as incurred and amounts incurred were less than $0.3 million, during the years ended July 31, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, respectively.

Stock-Based Compensation

The Company accounts for stock-based compensation using the fair value method, which requires the Company to measure stock-based compensation based on the grant-date fair value of the awards and recognize the compensation expense over the requisite service period. The Company recognizes compensation expense net of actual forfeitures. The Company has granted stock options, time-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”). RSUs and PSUs are collectively ~~referred to as “Stock Awards.”~~

The fair value of the Company’s RSUs and PSUs is equal to the market value of the Company’s common stock on the date of grant. These awards are subject to time-based vesting, which generally occurs over a period of three to four years. The Company recognizes compensation expense for awards that contain only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes the compensation cost for awards that contain performance conditions using the graded vesting method and a portion of the expense may fluctuate depending on changing estimates of the achievement of the performance conditions.80

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~~The~~referred ~~fair value of the Company’s stock options is estimated at the grant date using the Black-Scholes option-pricing model. Recently granted stock options are subject~~ to ~~time-based~~as ~~vesting,~~“Stock ~~which generally occurs over a period of two years~~Awards.” ~~The~~In ~~Company~~December ~~recognizes compensation expense for stock options that contain only service conditions on a straight-line basis over the requisite service period~~2024, ~~which is generally~~ the ~~vesting~~Company’s ~~period~~stockholders ofapproved the ~~respective~~2024 ~~stock~~Employee ~~options.~~Stock ~~The~~Purchase ~~inputs~~Plan ~~used~~(“ESPP”) inat the ~~Black-Scholes~~Company’s ~~option-pricing~~annual ~~model,~~meeting ~~which~~of ~~are subjective and generally requires significant judgment to determine, include:~~stockholders.

~~Expected~~The ~~Term~~fair —value ~~The~~of ~~expected~~the ~~term~~Company’s ~~represents~~RSUs and PSUs is equal to the ~~period~~market ~~that~~value of the Company’s common stock~~-based~~ on the date of grant. These awards are ~~expected~~subject to betime-based ~~outstanding~~vesting, which generally occurs over a period of three to four years. The ~~simplified~~Company ~~method~~recognizes ~~calculates~~compensation ~~the~~expense ~~expected~~for ~~term~~awards asthat ~~the~~contain ~~average~~only ofservice ~~the~~conditions ~~time~~on a straight-~~to-vesting~~line ~~and~~basis over the ~~contractual~~requisite ~~life~~service period, which is generally the vesting period of the ~~options~~respective awards. The Company ~~uses~~recognizes the ~~simplified~~compensation ~~method~~cost tofor ~~determine~~awards ~~its~~that ~~expected~~contain ~~term~~performance ~~because~~conditions using the graded vesting method and a portion of ~~its~~the ~~limited~~expense ~~history~~may fluctuate depending on changing estimates of ~~stock~~the ~~option~~achievement ~~exercise~~of ~~activity~~the performance conditions.

The fair value of the Company’s stock options and ESPP purchase rights is estimated at the grant date using the Black-Scholes option-pricing model. Stock options are subject to time-based vesting, which generally occurs over a period of two years. The Company recognizes compensation expense for stock options and ESPP purchase rights that contain only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period of the respective stock options and each offering period of the ESPP purchase rights. The inputs used in the Black-Scholes option-pricing model, which are subjective and generally requires significant judgment to determine, include:

Expected Term — The expected term represents the period that the stock-based awards are expected to be outstanding. The simplified method calculates the expected term as the average of the time-to-vesting and the contractual life of the options. For stock options, the Company uses the simplified method to determine its expected term because of its limited history of stock option exercise activity. For the ESPP purchase rights, the Company uses the length of each offering period, which is approximately 0.5 years.

Expected Volatility — The expected volatility is derived from the historical volatility of the Company’s common stock.

Risk-Free Interest Rate — The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term of the options and the offering period of each ESPP purchase rights.

Expected Dividend — The expected dividend is zero, as the Company has never paid dividends and has no expectations to do so.

Income Taxes

Income taxes are accounted for under the asset and liability method. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement carrying amounts and tax basis of existing assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. All deferred tax assets and liabilities are classified as non-current on the ~~Company’s~~ consolidated balance sheets. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded when it is more likely than not that some portion or all of such deferred tax assets will not be realized and is based on both positive and negative evidence about the future, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations.

The effective tax rate in any given financial statement period may differ materially from the statutory rate. These differences may be caused by changes in tax regulations and resulting changes in the deferred tax valuation allowance; changes in the mix and level of income or losses; changes in the expected outcome of tax audits; permanent differences for stock-based compensation, including excess tax benefits; research and development credits; the tax rate differences between the United States and foreign countries; foreign withholding taxes; certain non-deductible expenses, including executive compensation; acquisition-related expenses; and provisions under the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), including a provision to tax global intangible low-taxed income of foreign subsidiaries, a special deduction for foreign-derived intangible income, and a base erosion anti-abuse tax that may tax certain payments between a U.S. corporation and its foreign subsidiaries.

The Company records interest and penalties related to unrecognized tax benefits as income tax expense in its consolidated statement of operations.

Recent Adopted Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items that are regularly provided to the Chief Operating Decision Maker (the “CODM”). Public entities with a single reportable segment are required to apply the disclosure requirements in ASU No. 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. The Company adopted the standard for its annual reporting effective August 1, 2024. While the standard requires additional disclosures related to the

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Company’s single reportable segment in its 2025 annual reporting, adoption of the standard did not have any impact on the consolidated operating results, financial condition, or cash flows. The standard requires retrospective application to all prior periods presented.

In November 2024, the FASB issued ASU No. 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The new standard was early adopted by the Company beginning August 1, 2024 and applied retrospectively for all periods presented. The new standard did not have an impact on prior periods presented on the consolidated financial statements.

Recent Accounting Pronouncements

In ~~November~~December 2023, the ~~Financial Accounting Standards Board (“~~FASB”) issued ASU No. 2023-0709, ~~Segment~~Income ~~Reporting~~Taxes (Topic ~~280~~740): Improvements to ~~Reportable~~Income ~~Segment~~Tax Disclosures, which ~~requires~~improves ~~public~~the ~~entities~~transparency toof ~~disclose~~income ~~information~~tax ~~about~~disclosures ~~their~~by ~~reportable~~requiring ~~segments’~~consistent ~~significant~~categories ~~expenses~~ and ~~other~~greater ~~segment~~disaggregation ~~items~~of oninformation anin ~~interim~~the ~~and~~effective ~~annual~~tax ~~basis.~~rate ~~Public~~reconciliation ~~entities~~and ~~with~~income ataxes ~~single~~paid ~~reportable~~disaggregated ~~segment~~by ~~are required to apply the disclosure requirements in ASU No~~jurisdiction. ~~2023-07,~~It asalso ~~well~~includes ascertain ~~all~~other ~~existing~~amendments ~~segment~~to ~~disclosures~~improve ~~and~~the ~~reconciliation~~effectiveness ~~requirements~~of inincome ~~ASC~~tax ~~280 on an interim and annual basis~~disclosures. The new standard will be effective, and the Company will adopt it ~~for the annual period beginning August 1~~, ~~2024, and for the interim periods~~ beginning ~~after~~ August 1, 2025, ~~with~~on ~~early~~a ~~adoption~~prospective ~~permitted.~~basis ~~The~~and adoption ~~of this ASU~~ will impact the Company’s disclosures.

In ~~December~~November ~~2023~~2024, the FASB issued ASU No. ~~2023~~2024-0903, Income ~~Taxes~~Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (~~Topic~~Subtopic ~~740~~220-40): ~~Improvements~~Disaggregation toof Income ~~Tax~~Statement ~~Disclosures~~Expenses, which ~~improves~~requires ~~the~~public ~~transparency~~business ofentities ~~income~~to ~~tax~~disclose ~~disclosures~~qualitative ~~by requiring consistent categories~~ and ~~greater~~quantitative ~~disaggregation of~~ information inabout ~~the~~certain ~~effective~~costs ~~tax rate reconciliation~~ and ~~income~~expenses ~~taxes~~in ~~paid~~the ~~disaggregated~~notes byto ~~jurisdiction.~~the Itfinancial ~~also~~statements ~~includes~~on ~~certain~~an ~~other~~interim ~~amendments~~and toannual ~~improve the effectiveness of income tax disclosures~~basis. The new standard will be effective and the Company will adopt it for the annual period beginning August 1, ~~2025~~2027, and ~~early~~for ~~adoption~~the isinterim ~~permitted~~periods beginning after August 1, 2028. Upon adoption, the guidance can be applied prospectively or retrospectively. The ~~Company~~adoption ~~is currently assessing the impact~~ of ~~adopting~~ this ~~standard~~ASU onwill impact the ~~consolidated~~Company’s ~~financial statements~~disclosures.

In July 2025, the FASB issued ASU No. 2025-05, Income Statement—Reporting Financial Instruments-Credit Losses (Subtopic 326-20): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient for all entities related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The new standard will be effective and the Company will adopt it beginning August 1, 2026 on a prospective basis. The Company is currently assessing the impact of adopting this standard on the consolidated financial statements.

Other recent accounting pronouncements that will be applicable to the Company are not expected to have a material impact on its present or future financial statements.

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2.Revenue

Disaggregation of Revenue

Revenue by product type is as follows (in thousands):

Fiscal years ended July 31,

2024

2023

2022

2025

2024

2023

Subscription and support

Subscription

~~477~~667,~~461~~436

~~352~~477,~~145~~461

~~259~~352,~~232~~145

Support

7163,~~626~~860

7771,~~522~~626

8477,~~476~~522

License

Term license

~~248~~251,~~849~~817

~~265~~248,~~389~~849

~~258~~265,~~440~~389

Perpetual license

~~1,327~~118

~~204~~1,327

~~191~~204

Services

~~181~~219,~~234~~228

~~210~~181,~~081~~234

210,~~275~~081

Total revenue

~~980~~1,~~497~~202,459

~~905~~980,~~341~~497

~~812~~905,~~614~~341

Revenue by product type and by geography is as follows (in thousands):

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	Fiscal year ended July 31, 2025
	Subscription and support		License		Services		Total

United States	$	485,593	$	133,994	$	151,272	$	770,859
Canada	102,465		18,620		20,296		141,381
Other Americas	7,057		3,043		1,560		11,660
Total Americas	595,115		155,657		173,128		923,900
Total EMEA	84,991		63,947		34,646		183,584
Total APAC	51,190		32,331		11,454		94,975
Total revenue	$	731,296	$	251,935	$	219,228	$	1,202,459


	Fiscal year ended July 31, 2024
	Subscription and support		License		Services		Total

United States	$	373,675	$	133,310	$	125,583	$	632,568
Canada	77,414		19,704		8,643		105,761
Other Americas	6,009		3,330		2,154		11,493
Total Americas	457,098		156,344		136,380		749,822


Total EMEA	59,968		59,274		35,192		154,434
Total APAC	32,021		34,558		9,662		76,241
Total revenue	$	549,087	$	250,176	$	181,234	$	980,497


	Fiscal year ended July 31, 2023
	Subscription and support		License		Services		Total

United States	$	289,152	$	141,465	$	143,243	$	573,860
Canada	71,039		16,677		17,965		105,681
Other Americas	5,891		3,323		3,090		12,304
Total Americas	366,082		161,465		164,298		691,845
Total EMEA	40,661		66,743

Filing Compare · Guidewire Software, Inc.