Does Guidewire Software, Inc. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Guidewire Software, Inc. (GWRE) 43.2 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 84, returns on capital 0, balance-sheet safety 30, capital discipline 60.

How has GWRE's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 43.2 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Guidewire Software, Inc.

GWRE · Technology · $12.7B mkt cap · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power84

Median gross margin 54.7% over 10y, stable.

Returns on capital0

Median ROIC -1.1%, above the 9% hurdle in 0% of years.

Balance-sheet safety30

Net debt/EBITDA n/ax, interest coverage 3x.

Capital discipline60

Owner earnings +20.2%/yr, share count growing (dilution).

Margin of safety

Above valueOn sale

No price data

Owner earnings (normalized): —
Est. intrinsic value / share: —
Recent price: $150.02
Discount to value: No price data

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

17 years of fundamentals

The business, in plain English

Guidewire Software, Inc. booked $1.2B of revenue in FY2025 in the Technology sector and kept 62.5% of it as gross profit — a high-margin business by that measure. After every other cost, 5.8% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $144.7M (FY2010) to $1.2B (FY2025) — about 15.2% a year compounded over 15 years.

It earned 5.4% on invested capital in FY2025, with a median of 0.1% across 13 filed years. The Returns on Capital filter above scores it 0/100.

The balance sheet carried $398.9M of total debt in FY2024. Balance-Sheet Safety scores it 30/100.

The share count rose 486.1% between FY2011 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 60/100.

Put together: Pricing Power is the strongest of the four filters (84/100) and Returns on Capital the weakest (0/100), which is how GWRE lands at 43/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$1.2B FY2025

Gross marginRevenue kept after cost of goods62.5% FY2025

Return on invested capitalOperating profit on the capital employed5.4% FY2025

Owner earningsCash an owner could take out$87.8M FY2025

Gaps in a line mean that item isn’t in GWRE’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale43.2 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — GWRE has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Technology context

#276 of 532 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

#274S SENTINELONE, INC43.3 out of 100, Shallow moatShallow moat
#275RUN Sunrun Inc.43.2 out of 100, Shallow moatShallow moat
#277U UNITY SOFTWARE INC.43.2 out of 100, Shallow moatShallow moat
#278OTEX OPEN TEXT CORP43.0 out of 100, Shallow moatShallow moat

Compare GWRE with its nearest peers →All Technology companies on the Index →

Common questions about GWRE

Does Guidewire Software, Inc. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Guidewire Software, Inc. (GWRE) 43.2 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 84, returns on capital 0, balance-sheet safety 30, capital discipline 60.
How has GWRE's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 43.2 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell GWRE. See the disclaimer.