Guidewire Software, Inc. (GWRE): Business Model Canvas [Dec-2025 Updated]

You're looking at a core software vendor making a tough, expensive pivot to the cloud, and the numbers for Guidewire Software, Inc. show the payoff is starting to hit. Honestly, seeing their Annual Recurring Revenue climb to $1,041 million in fiscal 2025, driven by subscription growth, confirms their strategy is working, even while they spend $296.1 million on R&D to keep the platform ahead. I want to show you precisely how they structure this value-from their key partnerships with AWS to how they capture that $1,202.5 million in total 2025 revenue-so stick around to see the full Business Model Canvas breakdown.

Guidewire Software, Inc. (GWRE) - Canvas Business Model: Key Partnerships

You're looking at the engine room of Guidewire Software, Inc.'s growth-the partnerships that make their cloud platform stick and scale across the P&C world. This isn't just about selling software; it's about building an ecosystem that implements, extends, and validates the platform for the world's largest insurers. Here's the breakdown of the key alliances as of late 2025.

Global Technology Partners like AWS for cloud infrastructure

The foundation of Guidewire Cloud Platform relies heavily on its hyperscaler partners. For 2025, the recognition for this relationship is clear: AWS was named the Global Technology Partner of the Year at the 2025 Partner Excellence Awards. This highlights the strategic importance of the cloud infrastructure provider in Guidewire Software, Inc.'s go-to-market strategy.

Consulting Partners (System Integrators) such as Deloitte and PwC for complex implementations

The consulting network, which includes System Integrators (SIs), is crucial for complex, large-scale deployments. As of October 2025, Guidewire PartnerConnect Consulting partners had over 28,000 consultants worldwide trained or experienced in Guidewire products. This network has collectively earned more than 250 specializations as of April 2025. Deloitte and PwC are clearly central players here:

• PwC has a 20-year dynamic, long-standing partnership with Guidewire Software, Inc.
• PwC sponsored Guidewire Connections 2025 as a Diamond Plus Sponsor for a record eighth year in a row.
• Deloitte received the Consulting Partner Outstanding Market Growth Award for AMER in 2025.
• PwC secured the Consulting Partner Global Outstanding Market Growth Award and the Consulting Partner Marketplace Excellence Award in 2025.

The work with these SIs directly translates to major customer wins. For instance, Amerisure transformed its Loss Sensitive billing solutions working with partner PwC, saving thousands of manual hours annually. CNA renewed its digital processes with Guidewire Cloud Platform and Jutro, also with the help of partner PwC.

Over 220 Technology Partners providing 290+ integrations in the Guidewire Marketplace

The Guidewire Marketplace is the largest integration ecosystem in the Property and Casualty (P&C) insurance industry. As of late 2025, the PartnerConnect program includes over 220 technology partners offering more than 290 integrations. This ecosystem saw significant activity in the latter half of the year. For example, in Q4 2025, new extensions were added from 16 Consulting and Technology partners, including OpenText and Earnix. The sheer volume of usage is also a key metric; the Marketplace surpassed 20,000 partner integration downloads as of Q3 Fiscal Year 2025, marking 32% year-over-year growth in downloads. This demonstrates deep adoption of complementary solutions.

Here is a snapshot of the partner ecosystem scale:

InsurTech Vanguard program for co-developing innovative solutions

Guidewire Software, Inc. actively scouts and mentors promising startups through the InsurTech Vanguard program to co-develop solutions. ProNavigator is cited as a direct example of a company that graduated from this initiative. The program highlights innovation across global regions. The 2025 global InsurPitch winners, recognized for their novel solutions, included Adjusto (Las Vegas), Nettle (London), and Wisedocs (Toronto). Nettle, an AI-powered risk assessment solution, officially joined the program in July 2025.

Strategic customer agreements, including a 10-year Tier-1 insurer deal

The partnership strategy is validated by major, long-term customer commitments, which drive significant Annual Recurring Revenue (ARR). In the fourth quarter of Fiscal Year 2025 (ending July 31, 2025), Guidewire Software, Inc. executed 19 cloud deals and surpassed $1 billion in ARR. A key highlight was securing a significant 10-year agreement with a major Tier-1 insurer during that same quarter. This deal structure exemplifies the deeper customer commitments being secured. Furthermore, in Q1 FY2025, the company recorded nine cloud deals, including five with Tier-1 insurers, and signed a global framework agreement with Zurich Insurance Group. The total revenue for Fiscal Year 2025 reached $1,202.5 million, a 23% increase year-over-year.

Guidewire Software, Inc. (GWRE) - Canvas Business Model: Key Activities

You're looking at the core engine room of Guidewire Software, Inc. as of late 2025. The key activities here are all about building, selling, and implementing that massive cloud platform, which is where the real money is now flowing.

Research and Development (R&D) to enhance the Guidewire Cloud Platform (GCP)

The investment in R&D is substantial and clearly prioritized toward the cloud and intelligence layer. For the twelve months ending July 31, 2025, Guidewire Software's research and development expenses hit $0.296B. That represents a 9.94% increase year-over-year, showing a commitment to staying ahead of the curve, especially with new technology like AI. This spending fuels the continuous evolution of the Guidewire Cloud Platform (GCP).

Cloud migration and deployment for new and existing P&C customers

This activity is the primary driver of Guidewire Software, Inc.'s current financial success. The shift is evident in the revenue mix. Total revenue for the fiscal year 2025 reached $1,202.5 million, a 23% increase from fiscal year 2024's $977.6 million. The Subscription and Support segment, which captures the cloud transition, was the star, bringing in $731.3 million in FY2025, up 33% year-over-year. Management highlighted executing 19 cloud deals in the fourth quarter of fiscal 2025 alone. The company's Annual Recurring Revenue (ARR) ended July 31, 2025, at $1,041 million. Honestly, the growth in ARR to $1.063 billion by October 31, 2025, shows this migration activity is accelerating into the new fiscal year.

Here's a quick look at how the revenue streams reflect this focus:

Developing and integrating Generative AI features like PricingCenter

Guidewire Software, Inc. is actively embedding intelligence across its suite. They are building Generative AI features into new and existing applications to boost operational efficiency. At Connections 2025, they introduced the Guidewire AI Agentic framework and AI platform. They have announced plans for 50 new AI agents across upcoming releases. This work includes enhancing core products; for instance, AI capabilities are being built for PricingCenter and UnderwritingCenter to improve risk selection and pricing accuracy. The platform uses AI Connect as a secure gateway to models from providers like OpenAI and Amazon Bedrock.

Sales, marketing, and securing large, long-term subscription contracts

The sales activity is centered on locking in long-term cloud commitments, which directly feeds the high-growth Subscription and Support revenue. A key indicator of success here was closing a significant 10-year agreement with a major Tier-1 insurer during the fourth quarter of fiscal 2025. This type of deal exemplifies the platform maturity driving increased deal sizes. The company's strong operational discipline in this area is reflected in the 25% cash flow from operations margin achieved in fiscal year 2025. Furthermore, Guidewire Software, Inc. ended July 31, 2025, with $1,483.2 million in cash, cash equivalents, and investments, providing a solid foundation for sales and marketing efforts.

Professional services and support for core system implementation

Implementation and support are critical for ensuring customers successfully adopt the cloud platform, which in turn secures the recurring revenue. Guidewire Software, Inc. boasts an unparalleled implementation record with over 1,700+ successful projects supported by its R&D team and partner ecosystem. Services revenue for fiscal year 2025 was $219.2 million, growing 21%. The efficiency gains seen by customers underscore the value of this activity. For example, one customer, Amerisure, reduced invoice processing times to just three days after migrating its Loss Sensitive billing program to Guidewire Cloud Platform, saving an estimated 4,000-6,000 manual hours per year across their credit and IT teams. The non-GAAP gross margin for the Services segment in the first quarter of fiscal 2026 was 22.8%, up from 19.7% a year prior, suggesting improving efficiency in service delivery.

You should definitely track the services margin as a leading indicator of implementation efficiency.

Guidewire Software, Inc. (GWRE) - Canvas Business Model: Key Resources

When we look at Guidewire Software, Inc. (GWRE) as a Key Resource, you're really looking at the core technology and the network effect built around it. The most tangible assets are definitely the proprietary software itself, specifically the Proprietary Guidewire Cloud Platform (GCP) and InsuranceSuite software. These aren't just off-the-shelf tools; they are the transactional systems of record for property and casualty (P&C) insurers, handling everything from product definition to claims management, and they're delivered primarily as cloud-based subscription services, though InsuranceSuite was historically available for self-managed installations too.

Financially, the scale of their recurring commitment is a massive resource. As of July 31, 2025, Guidewire Software, Inc. reported an Annual Recurring Revenue (ARR) base of $1,041 million. This number reflects the committed, recurring value from their customer base, which is a huge indicator of stickiness. To keep that platform leading the pack, they pour significant capital back into development. For fiscal year 2025, the company reported a Substantial R&D investment of $296.1 million. That investment fuels the intellectual property and deep domain expertise Guidewire holds in the P&C insurance space, allowing them to combine core systems with digital, analytics, and artificial intelligence capabilities.

Here's a quick look at some of the hard numbers defining the scale of these resources as of late 2025:

The third critical resource is the Global partner ecosystem (PartnerConnect), which is essential for sales and service delivery across the globe. This isn't just a list of vendors; it's a validated, invitation-only network helping insurers implement and extend the platform. As of early 2025, the technology side of this ecosystem was quite developed:

• Over 210 technology partners providing solutions.
• More than 250 integrations available in the Guidewire Marketplace.
• Over 26,000 consultants worldwide trained or experienced in Guidewire products through Consulting Alliances.

These partners, including system integrators, help drive business value by developing and delivering integrations and complementary solutions, all validated for security and compatibility with the Guidewire Cloud Platform. Honestly, the depth of this ecosystem is what helps Guidewire Software, Inc. serve insurers of all sizes, from regional players to the largest global carriers.

Guidewire Software, Inc. (GWRE) - Canvas Business Model: Value Propositions

You're looking at the core reasons why property and casualty (P&C) insurers choose Guidewire Software, Inc. It's about moving away from old, rigid systems to something built for today's speed.

Core systems modernization for P&C insurers (Policy, Billing, Claims)

Guidewire Software, Inc. provides the essential backbone for P&C carriers, covering the three main operational pillars: Policy administration, Billing, and Claims management. This isn't just a software swap; it's a fundamental shift in how these core functions operate. As of the end of fiscal year 2025, more than 570 insurers across 43 countries rely on Guidewire products.

Cloud-native platform for operational agility and lower total cost of ownership

The value here is rooted in the cloud transition. Guidewire Cloud Platform adoption is driving significant financial improvements. For fiscal year 2025, total revenue hit $1,202.5 million, with subscription and support revenue-the recurring engine-reaching $731.3 million, a 33% increase year-over-year. The company achieved a cash flow from operations margin of 25% in fiscal year 2025, showing operational discipline alongside growth. Furthermore, the subscription and support gross margin is projected to be between 72-73% for fiscal year 2026, indicating efficiency gains as the platform matures. Cloud ARR, a key indicator of this shift, expanded by 36% year-over-year in Q4 2025, representing 74% of the total ARR at that time.

Here's a quick look at the financial momentum supporting this cloud shift:

Integrated data, analytics, and AI for better decision-making

Guidewire Software, Inc. is embedding intelligence directly into workflows. This includes launching new applications like PricingCenter and UnderwritingCenter, which specifically incorporate generative AI capabilities. The platform's maturity is referenced by the fact that a significant 10-year agreement was signed with a major Tier-1 insurer in Q4 2025, citing platform maturity and referenceability as key drivers.

Faster time-to-market for new insurance products via Jutro Digital Platform

The Jutro Digital Platform is designed to speed up digital experience deployment. Insurers using Jutro, alongside the Cloud Platform and Advanced Product Designer, have seen direct results in speed. For example, CNA adopted these tools to enable faster product delivery and streamline underwriting. The platform offers a web application framework, an experience-led design system, and pre-built templates to accelerate implementation. The impact on efficiency is clear; one recognized industry expert's work on a digital transformation initiative resulted in $3.2 million in annual cost savings.

High reliability and proven implementation record (1,700+ successful projects)

Reliability is quantified by the sheer volume of successful deployments. Guidewire Software, Inc. boasts an unparalleled implementation record, supporting over 1,700 successful projects. This track record is supported by the industry's largest R&D team and SI partner ecosystem. The platform's stability helps drive deeper customer commitments, as seen in the large, multi-year agreements secured.

The value proposition is further supported by partner success metrics:

• One implementation professional's work helped implement 40 states.
• That same work resulted in a 99% improvement in operational efficiency when implementing states on InsuranceNow.
• The company's marketplace represents the largest partner community in P&C, offering access to hundreds of applications.

Finance: draft 13-week cash view by Friday.

Guidewire Software, Inc. (GWRE) - Canvas Business Model: Customer Relationships

You're looking at how Guidewire Software, Inc. keeps its major insurance clients locked in and growing their spend, which is key given the multi-year nature of core system transformations.

Dedicated account management for large, Tier-1 insurer relationships

The focus on the largest carriers is evident in deal structure. Guidewire Software, Inc. highlighted a significant 10-year agreement with a major Tier-1 insurer during the fourth quarter of fiscal year 2025. This commitment level shows deep customer reliance. To give you a sense of recent traction, in the first quarter of fiscal year 2025, the company recorded nine cloud deals, five of which were with Tier-1 insurers.

Subscription-based model requiring continuous engagement and support

The shift to recurring revenue defines the relationship's structure. For the full fiscal year 2025, Subscription and support revenue hit $731.3 million, marking a 33% increase from fiscal year 2024. Total revenue for fiscal year 2025 reached $1,202.5 million. Annual Recurring Revenue (ARR) as of July 31, 2025, stood at $1,032 million, or $1,041 million when revalued to current currency rates. This represented a 19% growth for ARR on a constant currency basis in fiscal year 2025. The company serves more than 570 insurers across 43 countries.

Here's a look at the revenue mix from the fiscal year 2025 results:

The engagement remains high, as seen in the first quarter of fiscal year 2026 (ended October 31, 2025), where Subscription and support revenue grew 31% year-over-year to $222.2 million, and the subscription and support gross margin reached 73%.

Professional services and consulting for complex, multi-year cloud migrations

Complex cloud migrations necessitate deep, ongoing professional services involvement. Guidewire Software, Inc. saw its Services revenue grow to $219.2 million in fiscal year 2025, a 21% increase over the prior year. For the first quarter of fiscal year 2026, the professional services margin improved to 23%. The company noted a healthy backlog for services execution, requiring strategic investment in subcontractor utilization to ensure every cloud program is successful. The firm boasts an unparalleled implementation record with over 1,700+ successful projects.

Key metrics related to services and implementation:

• Unparalleled implementation record: 1,700+ successful projects.
• Professional Services Margin (Q1 FY2026): 23%.
• Services Revenue Growth (FY 2025): 21%.

Community and Marketplace for self-service and partner-developed apps

The ecosystem approach fosters self-service and partner-driven value addition. Guidewire Software, Inc.'s Marketplace is described as the industry's hub for innovation, featuring over 220 technology partners providing more than 290 integrations. This community engagement is visible at their customer events; more than 3,000 customers and partners attended the Connections conference in October 2025.

The PartnerConnect program includes Consulting partners who deliver specialized services, with over 26,000 consultants worldwide trained or experienced in Guidewire products.

Finance: draft 13-week cash view by Friday.

Guidewire Software, Inc. (GWRE) - Canvas Business Model: Channels

You're looking at how Guidewire Software, Inc. gets its platform and services to the global Property and Casualty (P&C) insurance market as of late 2025. The channels are a mix of direct enterprise selling, heavy reliance on implementation partners, and a growing digital marketplace.

Direct sales force for enterprise-level P&C insurers globally

Guidewire Software, Inc. maintains a direct sales motion focused on securing large, complex deals with P&C insurers worldwide. This is evident in the significant revenue generated directly from their core offerings.

For the fiscal year ended July 31, 2025, the total revenue reached $1,202.5 million, with a substantial portion coming from subscription and license sales, which are typically driven by the direct sales force.

Here's the quick math on the revenue mix for the full fiscal year 2025:

The Annual Recurring Revenue (ARR) as of July 31, 2025, stood at $1,032 million, showing a 19% growth on a constant currency basis for the year, which is a key metric tied to the long-term commitment secured through direct enterprise sales.

Consulting Partner channel (System Integrators) for implementation services

The Consulting Partner channel, often composed of System Integrators (SIs), is critical for the implementation services component of the business model. While Guidewire Software, Inc. reports Services Revenue, the scale of the partner network indicates significant co-delivery.

The ecosystem supporting implementation and transformation is quite large:

• Consulting network of over 26,000 consultants worldwide trained on Guidewire products.
• Consulting partners have achieved a total of 251 specializations to date, demonstrating deep expertise across solutions.
• Guidewire Software, Inc. reports an unparalleled implementation record of 1,700+ successful projects, heavily reliant on this partner network.

For the latest quarter, the first quarter of fiscal year 2026 (ending October 2025), total revenue was $333 million, with subscription and support revenue hitting $222.2 million, suggesting that while the platform sale is direct, the associated services revenue is often channeled through these implementation partners.

Guidewire Marketplace for technology partner integrations and apps

The Marketplace acts as a direct-to-customer channel for value-added solutions built by Technology Partners, extending the core platform's capabilities. This channel supports the push toward cloud adoption and innovation.

Key statistics for this ecosystem as of mid-to-late 2025 include:

• The Guidewire Marketplace hosts more than 290 integrations.
• The PartnerConnect program includes over 220 technology partners.
• Partner integration downloads on the Marketplace surpassed 20,000, marking a 32% year-over-year growth as of the third quarter of fiscal year 2025.

The company serves more than 570 insurers across 43 countries, and this broad reach is supported by the breadth of the Marketplace offerings.

Online channels for investor relations and product information

Guidewire Software, Inc. uses standard digital channels to communicate with investors and provide product transparency, which is a key channel for maintaining market confidence and valuation.

The company explicitly directs stakeholders to monitor these online touchpoints:

• Investor Relations website: ir.guidewire.com.
• Official X (formerly Twitter) feed: @Guidewire_PandC.
• Official LinkedIn page: www.linkedin.com/company/guidewire-software.

As of July 31, 2025, the company maintained a strong balance sheet with $1,483.2 million in cash, cash equivalents, and investments, a figure frequently highlighted on these investor channels.

Guidewire Software, Inc. (GWRE) - Canvas Business Model: Customer Segments

You're looking at the core of Guidewire Software, Inc.'s business: the Property & Casualty (P&C) insurance carriers globally. This isn't a broad market play; it's deep specialization in mission-critical core systems.

The customer base is substantial and geographically diverse. As of late 2025, Guidewire Software, Inc. supports over 570 insurers operating across 43 countries. These clients range from brand new ventures needing a modern start to the absolute largest and most intricate carriers in the world. The company boasts an unparalleled implementation record, having supported 1,700+ successful projects. This installed base is the foundation for their recurring revenue streams, which saw Subscription and support revenue hit $222.2 million in the first quarter of fiscal year 2026.

A key segment involves the large, complex, Tier-1 insurers requiring core system replacement. These are the biggest deals, often involving multi-year commitments to the Guidewire Cloud Platform. For instance, in the first quarter of fiscal year 2025, Guidewire Software, Inc. secured nine cloud deals, five of which were with these major Tier-1 carriers. The platform maturity is now driving bigger commitments; the fourth quarter of fiscal year 2025 was highlighted by a significant 10-year agreement with one such major Tier-1 insurer. These large clients are key to the platform's referenceability and the overall Annual Recurring Revenue (ARR), which reached $1,063 million as of October 31, 2025.

The midmarket insurers are primarily served through the InsuranceNow cloud offering, which is designed for speed and scalability. This segment is crucial for driving cloud adoption velocity. For example, the InsuranceNow GO Commercial Lines product delivers out-of-the-box ISO-based coverage, allowing these carriers to launch new commercial products up to 50% faster. To be fair, while InsuranceNow is targeted at this segment, the overall cloud migration strategy is broad, with over 50% of Guidewire Software, Inc.'s entire customer base being on the cloud as of mid-2025.

Here's a quick look at the scale of the customer base and recent financial performance tied to that base:

You can see the focus on cloud migration is directly impacting the revenue quality. The growth in the most important recurring revenue segment is strong, indicating customer commitment to the platform.

Specific customer segment traction points include:

• Tier-1 Cloud Deals: Five Tier-1 insurer cloud deals closed in Q1 Fiscal Year 2025 alone.
• Cloud Platform Penetration: Over 50% of the total customer base is now running on the cloud.
• Commercial Lines Speed: InsuranceNow GO Commercial Lines enables launching new products up to 50% faster.
• Global Frameworks: Signed a global framework agreement with Zurich Insurance Group to facilitate easier cloud adoption across its entities.

The overall customer base is definitely migrating, and that's the defintely key driver for the 31% year-over-year increase in subscription and support revenue.

Guidewire Software, Inc. (GWRE) - Canvas Business Model: Cost Structure

You're looking at the expense side of Guidewire Software, Inc.'s (GWRE) engine, which is heavily weighted toward supporting its cloud transition and maintaining its product lead. The cost structure reflects a high-growth, high-investment software company.

The total operating expenses for the fiscal year ending July 31, 2025, reached $1.161B. Cost of Revenue, which covers the cloud infrastructure and service delivery necessary to support the growing subscription base, was reported at $450.4 million for the same fiscal year. This is a critical component as the shift to cloud accelerates.

The investment in future platform leadership is clear in the Research & Development (R&D) spend. To maintain platform leadership, R&D costs were $296.1 million. This significant outlay funds the continued evolution of the core platform and the integration of new capabilities like generative AI.

Selling, General & Administrative (SG&A) expenses were reported at $414.8 million. This category covers the costs of sales execution, marketing to drive new cloud adoption, and general corporate overhead. Honestly, for a company scaling its Annual Recurring Revenue (ARR) by 22% in fiscal 2025, this level of spending is expected.

Stock-based compensation remains a material non-cash expense, which is common for software firms aiming to align employee incentives with shareholder returns without immediately depleting cash reserves. For instance, the overall stock-based compensation for the fourth quarter of fiscal 2025 was $162 million. The company projected this expense to be approximately $185 million for the full fiscal year 2026.

The company also incurs costs related to strategic growth moves, such as the acquisition of ProNavigator, an AI-powered knowledge management platform. While the definitive agreement was signed in late 2025, the financial terms were undisclosed. However, management noted they are absorbing incremental costs associated with this acquisition, expecting it to add approximately $2 million in revenue in fiscal year 2026.

Here's a look at some of the key financial figures that define the cost base for the fiscal year ending July 31, 2025:

You can see how R&D and SG&A together make up the bulk of the operating costs, which is the price of maintaining market relevance in the core insurance platform space. The Cost of Revenue is also substantial, reflecting the operational expense of running a large, multi-tenant cloud environment.

The cost structure involves several key expense buckets:

• Cloud Infrastructure: Directly tied to Cost of Revenue, supporting the 74% Cloud ARR.
• Personnel Costs: The largest driver within SG&A and R&D, covering the engineering and sales teams.
• Acquisition Integration: Incremental costs absorbed following strategic purchases like ProNavigator.
• Stock Compensation: A material non-cash charge, expected around $185 million in fiscal 2026.

Finance: draft 13-week cash view by Friday.

Guidewire Software, Inc. (GWRE) - Canvas Business Model: Revenue Streams

You're looking at how Guidewire Software, Inc. converts its value proposition into actual cash flow as of late 2025. The revenue mix clearly shows a strong pivot to recurring models, which is what investors focus on for valuation.

The total revenue for Guidewire Software, Inc. for the fiscal year 2025 was $1,202.5 million. This represented a significant increase, showing a 23% jump from fiscal year 2024. The structure of this revenue is what really tells the story of their business model evolution.

The primary engine for growth is the recurring revenue component, which is why Annual Recurring Revenue (ARR) is the defintely critical metric for valuation. As of July 31, 2025, Guidewire Software, Inc.'s ARR stood at $1,032 million based on currency exchange rates as of July 31, 2024, and was $1,041 million after revaluation to current currency rates. This was a 19% increase on a constant currency basis for fiscal year 2025.

Here's the quick math on how the FY2025 revenue broke down across the main streams:

Subscription and support revenue was $731.3 million for the full fiscal year 2025, showing a strong 33% increase year-over-year. This stream is clearly where Guidewire Software, Inc. is placing its strategic bet, aligning with the industry shift to cloud platforms.

The other components round out the total, but show different dynamics:

• Term License revenue was $251.9 million in FY2025.
• Services revenue, tied to implementation and consulting, was $219.2 million in FY2025.
• For context, in the fourth quarter of fiscal year 2025, Subscription and support revenue was $201.9 million, License revenue was $93.6 million, and Services revenue was $61.0 million.

It's important to note that ARR calculation excludes non-recurring items like perpetual licenses and professional services revenue, even if they are part of a larger contract. For instance, during the twelve months ending July 31, 2025, $9.5 million of recurring license and support or subscription contract value was allocated to services revenue for accounting but excluded from ARR.

The shift is evident when you look at the growth rates; Subscription and support revenue grew by 33% in FY2025, while license revenue grew by only 1%. If onboarding takes 14+ days, churn risk rises, but the 33% growth in the core recurring stream suggests they are managing the transition well.

Finance: draft 13-week cash view by Friday.