GWRE — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-09-11

• •increased need for agility and efficiency from core systems to address rapid changes in the industry;

• •an increase in consolidation among insurance providers and associated rationalization of product lines and geographic footprints to eliminate overlap and improve combined ratios;

• •an increasingly complex distribution ecosystem composed of managing agents, wholesalers, and program administrators who pose both threats and opportunities to insurer growth and profitability;

• •demand for coverage of emerging risks such as terrorism, cybersecurity, AI, pandemic, and reputational risk, and the impact of social inflation on increasing liability claims;

• While each insurer may have different goals and priorities when pursuing new technology investments, in response to these trends, changes, challenges, and opportunities, there are several major themes that we believe guide these investments:

Text removed vs the prior filing · source: 10-K · 2025-09-11

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

• •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;

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

• 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.

Text added vs the prior filing · source: 10-K · 2026-09-11

• •issues in the development, adoption, deployment, workforce use, and maintenance of AI technologies, combined with an uncertain regulatory environment, may result in reputational harm, operational disruptions, liability, or other adverse consequences to our business operations;

• •our ability to expand adoption of our cloud-based subscription offerings, 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 c…

• •exposure to risks in relation to data security incidents or breaches of our cloud-based products, including increasingly sophisticated, AI-accelerated cyberattacks that may outpace our defensive measures, unauthorized access to our customers’ or employees’ data, and the related impact on our abilit…

• •retaining existing and hiring new personnel, maintaining our company culture, and managing a hybrid and geographically distributed workforce; and

• •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, all of which have impacted or may impact our stock price and its vo…

Text removed vs the prior filing · source: 10-K · 2025-09-11

• •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 …

• •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;

• •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 custo…

Text added vs the prior filing · source: 10-K · 2026-09-11

• 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.

• Global events have adversely affected and may continue to adversely affect workforces, organizations, economies, and financial markets globally, leading to economic downturns, inflationary pressures, and increased market volatility. For instance, the ongoing war between Russia and Ukraine, conflicts…

• 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 …

• Term license revenue decreased by $17.4 million compared to the prior year, primarily due to agreements that migrate customers from a term license to a subscription service, partially offset by an increase in renewals. Ongoing revenue related to migration agreements is recorded as subscription reven…

• Cost of subscription and support revenue increased by $30.1 million compared to the prior year, primarily due to increases in cloud infrastructure expense of $14.6 million driven by increased transaction volume on our cloud services, personnel costs of $8.9 million due to higher headcount, amortizat…

Text removed vs the prior filing · source: 10-K · 2025-09-11

• Global events have adversely affected and may continue to adversely affect workforces, organizations, economies, and financial markets globally, leading to economic downturns, inflationary pressures, and increased market volatility. For instance, ongoing conflicts such as the war between Russia and …

• 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 …

• Term license revenue increased by $3.0 million compared to the prior year primarily due to higher renewals and expansion orders within our existing customer base, partially offset by the impact of customers that migrated from a term license to a subscription service. Ongoing revenue related to migra…

• The $30.3 million increase in cost of subscription and support revenue was primarily due to increases in cloud infrastructure costs of $26.6 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 …

• Cloud infrastructure expense continues to benefit from the efficiencies that we are achieving from our development efforts associated with our GWCP platform and the five-year agreement we entered into with a cloud infrastructure services provider. As a result of efficiencies that we are seeing from …

Text added vs the prior filing · source: 10-K · 2026-09-11

• Additionally, our 2025 Credit Facility, which was undrawn as of July 31, 2026 and 2025, bears interest at floating rates, including (i) for U.S. Dollar-denominated loans, at our option, either the bank’s base rate plus 0.25% to 1.25% per annum or term SOFR (as defined in the Credit Agreement) plus 1…

Text removed vs the prior filing · source: 10-K · 2025-09-11

• 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, Japanese Yen, New Zealand Dollar, Polish Zloty, and Swiss Franc, the curren…