Freshworks Reports Fourth Quarter and Full Year 2025 Results

Rhea-AI Summary

Freshworks (NASDAQ: FRSH) reported fourth quarter and full year 2025 results with 2025 revenue of $838.8M, up 16% YoY and Q4 revenue of $222.7M, up 14% YoY. The company delivered positive GAAP and non-GAAP operating income, strong cash generation, and exceeded revenue and non-GAAP operating margin guidance.

Key operational highlights: EX business surpassed $500M ARR, Enterprise Service Management and Device42 each exceeded $40M ARR, Freddy AI crossed $25M ARR, and cash and marketable securities totaled $843.7M as of December 31, 2025.

Positive

• 2025 revenue +16% YoY to $838.8M
• Q4 revenue $222.7M, +14% YoY
• EX business ARR crossed $500M
• Non-GAAP operating income $178.0M for 2025 (21.2% margin)
• Adjusted free cash flow $223.1M for 2025 (26.6% margin)
• Cash and marketable securities $843.7M at year-end

Negative

• Guidance shows slower revenue growth: 2026 range implies 13.5%–14.5% growth vs 16% in 2025
• Projected non-GAAP EPS decline: 2026 guidance $0.55–$0.57 vs 2025 non-GAAP EPS $0.66 (~16% lower)
• Q4 non-GAAP operating margin declined to 18.7% from 20.7% a year earlier (200 bps)

Market Reaction

-5.04% $8.29 2.5x vol

15m delay 25 alerts

-5.04% Since News

+3.8% Peak in 0 min

$8.29 Last Price

$8.05 $9.50 Day Range

-$131M Valuation Impact

$2.46B Market Cap

2.5x Rel. Volume

Following this news, FRSH has declined 5.04%, reflecting a notable negative market reaction. Argus tracked a peak move of +3.8% during the session. Our momentum scanner has triggered 25 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $8.29. This price movement has removed approximately $131M from the company's valuation. Trading volume is elevated at 2.5x the average, suggesting increased selling activity.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q4 2025 Revenue: $222.7M FY 2025 Revenue: $838.8M Q4 GAAP Op Income: $39.7M (17.8% margin) +5 more

8 metrics

Q4 2025 Revenue $222.7M Up 14% year-over-year; 13% in constant currency

FY 2025 Revenue $838.8M Up 16% vs $720.4M in 2024; 16% constant currency

Q4 GAAP Op Income $39.7M (17.8% margin) Improved from $(23.8)M and (12.2%) in Q4 2024

FY Non-GAAP Op Income $178.0M (21.2% margin) Up from $99.1M and 13.8% margin in 2024

FY Op Cash Flow $242.4M (28.9% margin) Up from $160.6M and 22.3% margin in 2024

Cash & Securities $843.7M Cash, cash equivalents, restricted cash and marketable securities at 12/31/2025

Customers >$5K ARR 24,762 Q4 2025; up 10% year-over-year (8% constant currency)

Net Dollar Retention 108% Q4 2025; vs 103% in Q4 2024; 104% constant currency

Market Reality Check

Price: $8.73 Vol: Volume 8,954,303 is 1.7x ...

high vol

$8.73 Last Close

Volume Volume 8,954,303 is 1.7x the 20-day average of 5,271,197, indicating elevated trading activity before the release. high

Technical Shares at $8.63 trade 54.03% below the 52-week high and 2.13% above the 52-week low, and remain below the 200-day MA at $12.97.

Peers on Argus

FRSH was down 3.25% while key peers were mixed: INTA +1.75%, BRZE +2.84%, VERX -...

FRSH was down 3.25% while key peers were mixed: INTA +1.75%, BRZE +2.84%, VERX -2.62%, NCNO -0.22%, SPSC -4.7%, pointing to stock-specific dynamics.

Previous Earnings Reports

5 past events · Latest: Nov 05 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 05	Quarterly earnings	Positive	+1.3%	Q3 2025 beat with $215.1M revenue and stronger non-GAAP profitability, solid cash flow.
Jul 29	Quarterly earnings	Positive	-2.4%	Q2 2025 strong 18% revenue growth and higher non-GAAP income; guidance raised.
Apr 29	Quarterly earnings	Positive	+3.0%	Q1 2025 revenue up 19% with robust cash flow and improving AI-driven momentum.
Feb 11	Annual earnings	Positive	-0.3%	Q4 and FY 2024 showed 22% revenue growth and solid non-GAAP profitability metrics.
Nov 06	Quarterly earnings	Positive	+28.5%	Q3 2024 delivered 22% revenue growth and improved cash flow; buyback announced.

Pattern Detected

Earnings releases have generally been received positively, with 3 aligned and 2 divergent reactions and an average move of about 6%, showing mixed but often supportive responses.

Recent Company History

Over the last five earnings cycles (Nov 2024–Nov 2025), Freshworks steadily grew revenue while progressing toward profitability and strong cash generation. Quarterly revenue climbed from $186.6M to $215.1M, and non‑GAAP operating income and cash flow margins improved. Customer counts above $5K ARR and net dollar retention remained healthy. Guidance was repeatedly framed around mid‑teens growth. Today’s Q4 and full‑year 2025 report continues this narrative of disciplined growth and margin expansion.

Historical Comparison

earnings

+6.0 %

Average Historical Move

Historical Analysis

Recent earnings releases saw an average move of 6%, with mostly positive sentiment but mixed price reactions, underscoring that even strong results have not always translated into consistent upside.

Typical Pattern

Across these earnings updates, Freshworks has shown recurring mid‑teens revenue growth, improving non‑GAAP operating margins, healthier cash flow, and steady expansion in higher‑value customers and net dollar retention.

Market Pulse Summary

The stock is down -5.0% following this news. A negative reaction despite solid reported metrics woul...

Analysis

The stock is down -5.0% following this news. A negative reaction despite solid reported metrics would fit the pattern of occasionally divergent earnings responses, where strong growth and margin expansion did not always translate into gains. Historical earnings moves averaged about 6%, with both positive and negative reactions. Elevated pre-announcement volume and the stock’s position near 52-week lows could have amplified disappointment versus guidance or forward commentary.

Key Terms

non-gaap operating margin, annual recurring revenue, net dollar retention rate, adjusted free cash flow, +4 more

8 terms

non-gaap operating margin financial

"Exceeded high end of guidance for revenue and non-GAAP operating marginDelivered 2025 revenue"

Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.

annual recurring revenue financial

"EX business crossed half a billion dollars in annual recurring revenue SAN MATEO, Calif."

Annual recurring revenue is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses understand how much steady income they can count on, much like a subscription service that charges customers every month or year. This figure is important because it shows the company's stability and growth potential.

net dollar retention rate financial

"Net dollar retention rate was 108%, compared to 105% in the third quarter of 2025"

Net dollar retention rate measures how much revenue a company keeps from its existing customers over a set period after accounting for additional sales to them, reduced spending, and customers who leave. It matters to investors because it shows whether a company’s customer base is growing in value or shrinking—like checking whether the same garden produces more or fewer fruits over time—which signals the health and sustainability of recurring revenue.

adjusted free cash flow financial

"Adjusted Free Cash Flow: Adjusted free cash flow was $56.2 million, representing an adjusted free"

Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.

non-gaap net income per share financial

"Non-GAAP Net Income Per Share: Non-GAAP diluted net income per share was $0.14 based on"

Non-GAAP net income per share is a company's profit per share calculated after removing certain one-time or non-recurring items that standard accounting rules would normally include. Investors use it to see an adjusted view of recurring earnings, like cleaning up a snapshot to focus on the regular picture rather than one-off blips; this helps compare performance across periods or peers but can vary by what adjustments a company chooses.

operating cash flow margin financial

"Net cash provided by operating activities was $62.3 million, representing an operating cash flow margin"

Operating cash flow margin shows how much cash a company generates from its core operations relative to its sales. It is expressed as a percentage, indicating the efficiency of the company's main business activities in turning sales into cash. A higher margin suggests the company is good at converting sales into cash, which is important for covering expenses, investing in growth, and indicating financial health to investors.

constant currency financial

"and 13% adjusting for constant currency. GAAP Income (Loss) from Operations:"

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

non-gaap financial measures financial

"A description of non-GAAP financial measures is contained in the section titled"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

AI-generated analysis. Not financial advice.

Exceeded high end of guidance for revenue and non-GAAP operating margin
Delivered 2025 revenue growth of 16% year-over-year
EX business crossed half a billion dollars in annual recurring revenue 

SAN MATEO, Calif., Feb. 10, 2026 (GLOBE NEWSWIRE) -- Freshworks Inc. (Nasdaq: FRSH), the leading provider of uncomplicated software that delivers exceptional employee and customer experiences, today announced financial results for its fourth quarter and year ended December 31, 2025.

“Freshworks had an outstanding Q4 and fiscal 2025, outperforming our estimates across growth and profitability metrics for the fifth consecutive quarter,” said Dennis Woodside, Chief Executive Officer & President of Freshworks. “We ended the year with strong momentum, fueled by products that tackle complex service problems in an uncomplicated way. Our AI-powered software continues to be an important growth driver and path for customer expansion and it shows in the product adoption results.”

Fourth Quarter 2025 Financial Summary Results

• Revenue: Total revenue was $222.7 million, representing growth of 14% compared to total revenue of $194.6 million in the fourth quarter of 2024, and 13% adjusting for constant currency.

• GAAP Income (Loss) from Operations: GAAP income (loss) from operations was $39.7 million, representing an operating margin of 17.8%, compared to $(23.8) million, representing an operating margin of (12.2)%, in the fourth quarter of 2024.

• Non-GAAP Income from Operations: Non-GAAP income from operations was $41.6 million, representing a non-GAAP operating margin of 18.7%, compared to $40.3 million, representing a non-GAAP operating margin of 20.7%, in the fourth quarter of 2024.

• GAAP Net Income (Loss) Per Share: GAAP diluted net income (loss) per share was $0.67 based on 283.9 million weighted-average shares outstanding, compared to $(0.07) based on 303.6 million weighted-average shares outstanding in the fourth quarter of 2024.

• Non-GAAP Net Income Per Share: Non-GAAP diluted net income per share was $0.14 based on 283.9 million weighted-average shares outstanding, compared to $0.14 based on 306.1 million weighted-average shares outstanding in the fourth quarter of 2024.

• Net Cash Provided by Operating Activities: Net cash provided by operating activities was $62.3 million, representing an operating cash flow margin of 28.0%, compared to $41.4 million, representing an operating cash flow margin of 21.3%, in the fourth quarter of 2024.

• Adjusted Free Cash Flow: Adjusted free cash flow was $56.2 million, representing an adjusted free cash flow margin of 25.2%, compared to $41.7 million, representing an adjusted free cash flow margin of 21.4%, in the fourth quarter of 2024.

• Cash, Cash Equivalents, Restricted Cash and Marketable Securities: Cash, cash equivalents, restricted cash and marketable securities were $843.7 million as of December 31, 2025.
  
  

Full Year 2025 Financial Summary Results

• Revenue: Total revenue was $838.8 million, representing growth of 16% compared to total revenue of $720.4 million in 2024, and 16% adjusting for constant currency.

• GAAP Income (Loss) from Operations: GAAP income (loss) from operations was $13.2 million, representing an operating margin of 1.6%, compared to $(138.6) million, representing an operating margin of (19.2)% in 2024.

• Non-GAAP Income from Operations: Non-GAAP income from operations was $178.0 million, representing a non-GAAP operating margin of 21.2%, compared to $99.1 million, representing a non-GAAP operating margin of 13.8%, in 2024.

• GAAP Net Income (Loss) Per Share: GAAP diluted net income (loss) per share was $0.63 based on 293.8 million weighted-average shares outstanding, compared to $(0.32) based on 300.8 million weighted-average shares outstanding in 2024.

• Non-GAAP Net Income Per Share: Non-GAAP diluted net income per share was $0.66 based on 293.8 million weighted-average shares outstanding, compared to $0.43 based on 305.1 million weighted-average shares outstanding in 2024.

• Net Cash Provided by Operating Activities: Net cash provided by operating activities was $242.4 million, representing an operating cash flow margin of 28.9%, compared to net cash provided by operating activities of $160.6 million, representing an operating cash flow margin of 22.3%, in 2024.

• Adjusted Free Cash Flow: Adjusted free cash flow was $223.1 million, representing an adjusted free cash flow margin of 26.6% compared to $153.3 million, representing an adjusted free cash flow margin of 21.3% in 2024.
  
  

All financial numbers for 2025 include the results of our Device42 business. All financial numbers for the second, third and fourth quarters of 2024 include the results of our Device42 business for the period after the closing of the acquisition. A description of non-GAAP financial measures is contained in the section titled “Explanation of Non-GAAP Financial Measures” below and a reconciliation of GAAP to non-GAAP financial measures is detailed in the tables below.

Fourth Quarter Key Metrics and Recent Business Highlights

• Number of customers contributing more than $5,000 in ARR was 24,762, an increase of 10% year-over-year and 8% adjusting for constant currency.
• Net dollar retention rate was 108%, compared to 105% in the third quarter of 2025 and 103% in the fourth quarter of 2024. Adjusted for constant currency, net dollar retention rate was 104%, compared to 104% in the third quarter of 2025 and 105% in the fourth quarter of 2024.
• Welcomed and onboarded many new customers to the Freshworks community including Armanino, British Film Institute, ENGIE Impact, EquipmentShare, Kidde, and NBT Bancorp, Inc.
• Announced the acquisition of FireHydrant, reinforcing Freshworks’ IT Service Management offerings with a unified AI-native ServiceOps solution designed to simplify operations, proactively prevent disruptions, and ensure exceptional IT service reliability.
• Unveiled new capabilities on Freshservice to make it easier for IT teams to resolve issues faster, prevent problems earlier, and identify performance drivers proactively.
• Launched new capabilities including Freshdesk Command Center, Vertical AI Agents, and Freddy AI Insights to help CX teams reduce response times, enhance resolution rates, and gain clearer insights into issues and escalations that impact efficiency and growth.
• Appointed Kady Srinivasan as Chief Marketing Officer.
• Enterprise Service Management (ESM) and Device42 both surpassed $40 million and Freddy AI surpassed $25 million in annual recurring revenue in the fourth quarter of 2025.
  
  

Financial Outlook

We are providing estimates for the first quarter and for the full year 2026. We emphasize that these estimates are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements” below.

For the first quarter and full year 2026, we currently expect the following results:

	($ in millions, except per share data)	First Quarter 2026	Full Year 2026
	Revenue(1)	$222.0 - $225.0	$952.0 - $960.0
	Year-over-year growth	13% - 15%	13.5% - 14.5%
	Non-GAAP income from operations(1)	$33.0 - $35.0	$181.0 - $189.0
	Non-GAAP net income per share(2)	$0.10 - $0.12	$0.55 - $0.57

⁽¹⁾ Revenue and non-GAAP income from operations are based on exchange rates as of February 6, 2026 for currencies other than USD.
⁽²⁾ Non-GAAP net income per share was estimated assuming 287.4 million and 291.5 million weighted-average shares outstanding for the first quarter and full year 2026, respectively.

These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

We have not reconciled our first quarter and full year 2026 estimates for non-GAAP financial measures to GAAP due to the uncertainty and potential variability of expenses that may be incurred in the future. Accordingly, a reconciliation is not available without unreasonable effort and we are unable to address the probable significance of the unavailable information. We have provided a reconciliation of other GAAP to non-GAAP financial measures in the financial statement tables for our fourth quarter and full year 2025 and 2024 non-GAAP results included in this press release.

Webcast and Conference Call Information

We will host a conference call for investors on February 10, 2026 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss the Company’s financial results and business highlights. Investors are invited to listen to a live audio webcast of the conference call by visiting the investor relations website at ir.freshworks.com. A replay of the audio webcast will be available shortly after the call on the Freshworks Investor Relations website and will be available for twelve months thereafter.

Explanation of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain non-GAAP financial measures, including revenue adjusted for constant currency, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income per share, non-GAAP net income, adjusted free cash flow, and adjusted free cash flow margin. This press release and the accompanying tables also contain certain other metrics, including annual recurring revenue, net dollar retention rates, revenue growth rates, and related presentation thereof adjusted for constant currency.

We adjust revenue and related growth rates for constant currency to provide a framework for assessing business performance excluding the effect of foreign currency rate fluctuations. To present this information, current period results for currencies other than USD are converted into USD at the average exchange rates in effect during the comparison period (for Q4 2024, the average exchange rates in effect for our major currencies were 1 EUR to 1.07 USD and 1 GBP to 1.28 USD), rather than the actual average exchange rates in effect during the current period (for Q4 2025, the average exchange rates in effect for our major currencies were 1 EUR to 1.16 USD and 1 GBP to 1.33 USD). To present constant currency for full year results, we combine the quarterly constant currency results for the year that were converted into USD at the average exchange rates in effect during the relevant comparison periods (for example, for Q1 2025 results, we use the average exchange rates in effect for Q1 2024).

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. We believe these non-GAAP measures provide investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our operating results. We believe these non-GAAP measures are useful in evaluating our operating performance compared to that of other companies in our industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.

Investors, however, are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures.

We exclude the following items from one or more of our non-GAAP financial measures:

• Stock-based compensation expense. We exclude stock-based compensation, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this expense provides meaningful supplemental information regarding operational performance. In particular, stock-based compensation expense is not comparable across companies given the variety of valuation methodologies and assumptions.

• Employer payroll taxes on employee stock transactions. We exclude the amount of employer payroll taxes on equity awards from certain of our non-GAAP financial measures because they are dependent on our stock price at the time of vesting or exercise and other factors that are beyond our control and do not believe these expenses have a direct correlation to the operation of our business.

• Amortization of acquired intangibles. We exclude amortization of acquired intangibles, which is a non-cash expense, from certain of our non-GAAP financial measures. Our expenses for amortization of acquired intangibles are inconsistent in amount and frequency because they are significantly affected by the timing, size of acquisitions, and the allocation of purchase price. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operation of our business.

• Restructuring charges. We exclude restructuring charges, which primarily consists of employee severance and other employee termination benefits associated with the restructuring plan initiated in November 2024, from our non-GAAP financial measures, because we do not believe these expenses have a direct correlation to the operating performance of our business.

• Gain on sale of non-marketable equity investments. We exclude gains on sale of non-marketable equity investments from certain of our non-GAAP financial measures because we believe they are unrelated to our ongoing operating performance and are not expected to recur in our continuing operating results.

• Acquisition expenses. We exclude acquisition expenses, which primarily consist of legal fees and due diligence costs, from our non-GAAP financial measures because we do not believe these expenses have a direct correlation to the operating performance of our business.

• Income tax effect and adjustments. We exclude the income tax effect of the above adjustments, income tax effect associated with acquisitions and tax charges or benefits that are a result of a change in valuation allowance on deferred tax assets and its related impacts, from our non-GAAP financial measures. We exclude these costs because we do not believe these expenses have a direct correlation to the operating performance of our business.
  
  

We define adjusted free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized internal-use software, plus restructuring charges. We believe that adjusted free cash flow is a useful indicator of liquidity as it measures our ability to generate cash from our core operations after purchases of property and equipment. Adjusted free cash flow is a measure to determine, among other things, cash available for strategic initiatives, including further investments in our business and potential acquisitions of businesses. We define adjusted free cash flow margin as adjusted free cash flow as a percentage of revenue. We believe that adjusted free cash flow margin is a useful indicator of how efficiently we convert revenue into adjusted free cash flow.

Operating Metrics

Number of Customers Contributing More Than $5,000 in ARR. We define ARR as the sum total of subscription, software license, and maintenance revenue we would contractually expect to recognize over the next 12 months from all customers at a point in time, assuming no increases, reductions or cancellations in their subscriptions, and assuming that revenues are recognized ratably over the term of subscription and maintenance contracts and upon delivery for software licenses. We define our total customers contributing more than $5,000 in ARR as of a particular date as the number of business entities or individuals, represented by a unique domain or a unique email address, with one or more paid subscriptions to one or more of our products that contributed more than $5,000 in ARR.

Net Dollar Retention Rate. To calculate net dollar retention rate as of a given date, we first determine Entering ARR, which is ARR from the population of our customers as of 12 months prior to the end of the reporting period. We then calculate the Ending ARR from the same set of customers as of the end of the reporting period. We then divide the Ending ARR by the Entering ARR to arrive at our net dollar retention rate. Ending ARR includes upsells, cross-sells, renewals and expansion as a result of acquisitions during the measurement period and is net of any contraction or attrition over this period.

We also adjust the above operating metrics, growth rates of customers contributing more than $5,000 in ARR and related presentation thereof for constant currency to provide a framework for assessing our business performance excluding the effects of foreign currency rates fluctuations. To present this information, the Ending ARR of the current period in currencies other than USD is converted into USD at the exchange rates in effect at the end of the comparison period (for Q4 2024, the period end exchange rates in effect for our major currencies were 1 EUR to 1.04 USD and 1 GBP to 1.26 USD), rather than the actual exchange rates in effect at the end of the current period (for Q4 2025, the period end exchange rates in effect for our major currencies were 1 EUR to 1.17 USD and 1 GBP to 1.34 USD).

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, our GAAP and non-GAAP estimates for the first quarter and full year 2026, our financial outlook, the value of our products to customers, our expectations regarding impact of new product capabilities and our AI-powered software, and potential benefits related to acquisitions. These forward-looking statements are based on our current expectations, estimates and projections about our business and industry, including our financial outlook and macroeconomic uncertainties, management’s beliefs and certain assumptions made by the company, all of which are subject to change. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, “future,” “believe,” “expect,” “may,” “will,” “intend,” “outlook,” “estimate,” “continue,” “anticipate,” “could,” “would,” “projects,” “plans,” “targets” or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, many of which involve factors or circumstances that are beyond our control, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include our ability to achieve our long-term plans and key initiatives; our ability to sustain or manage any future growth effectively; our ability to attract and retain customers or expand sales to existing customers; delays in product development or deployments or the success of such products; the failure to deliver competitive service offerings and lack of market acceptance of any offerings delivered; the impact to the economy, our customers and our business due to uncertain global economic conditions, including market volatility, foreign exchange rates, and impact of inflation; the timeframes for and severity of the impact of any weakened global economic conditions on our customers’ purchasing and renewal decisions, which may extend the length of our sales cycles or adversely affect our industry; our history of net losses and ability to achieve or sustain profitability, as well as the other potential factors described under “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2024 as such factors may be updated from time to time in our periodic and other documents of Freshworks Inc. filed with the Securities and Exchange Commission from time to time (available at www.sec.gov), including our Annual Report on Form 10-K that will be filed for the year ended December 31, 2025.

We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof and are based on information available to us at the time the statements are made and/or management’s good faith belief as of that time with respect to future events. We assume no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.

About Freshworks Inc.

Freshworks Inc. (NASDAQ: FRSH) builds uncomplicated service software that delivers exceptional employee and customer experiences. Our enterprise-grade solutions are powerful, yet easy to use, and quick to deliver results. Our people-first approach to AI eliminates friction, making employees more effective and organizations more efficient. Nearly 75,000 companies, including Bridgestone, New Balance, Nucor, S&P Global, and Sony Music, trust Freshworks’ Employee Experience (EX) and Customer Experience (CX) software to eliminate complexity and increase productivity, loyalty and growth. For the latest company news and customer stories, visit www.freshworks.com and follow us on Facebook, LinkedIn, and X.

© 2026 Freshworks Inc. All rights reserved. Freshworks and its associated logos are trademarks of Freshworks Inc. All other trademarks are property of their respective owners. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third party of Freshworks Inc. or any aspect of this press release.

Investor Relations Contact:
Kate Scolnick
IR@freshworks.com

Media Relations Contact:
Jayne Gonzalez
PR@freshworks.com

FRESHWORKS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited)
	Three Months Ended December 31,								Year Ended December 31,
	2025				2024				2025				2024
Revenue	$	222,740			$	194,571			$	838,809			$	720,420
Cost of revenue(1)		32,170				29,459				126,145				113,330
Gross profit		190,570				165,112				712,664				607,090
Operating expense:
Research and development(1)		41,802				41,028				163,208				164,590
Sales and marketing(1)		109,363				90,674				394,753				390,817
General and administrative(1, 2)		(329	)			47,538				141,093				180,629
Restructuring charges		—				9,664				405				9,664
Total operating expenses		150,836				188,904				699,459				745,700
Income (loss) from operations		39,734				(23,792	)			13,205				(138,610	)
Interest and other income, net		7,156				7,802				40,077				47,773
Income (loss) before income taxes		46,890				(15,990	)			53,282				(90,837	)
Provision for (benefit from) income taxes		(144,556	)			5,910				(130,441	)			4,531
Net income (loss)		191,446				(21,900	)			183,723				(95,368	)
Net income (loss) per share - basic	$	0.68			$	(0.07	)		$	0.63			$	(0.32	)
Net income (loss) per share - diluted	$	0.67			$	(0.07	)		$	0.63			$	(0.32	)
Weighted-average shares used in computing net income (loss) per share:
Basic		282,760				303,560				291,079				300,843
Diluted		283,911				303,560				293,769				300,843

______________________
(1)        Includes stock-based compensation expense as follows (in thousands):

	Three Months Ended December 31,								Year Ended December 31,
	2025				2024				2025				2024
Cost of revenue	$	1,411			$	1,532			$	5,833			$	6,565
Research and development		8,075				9,037				34,864				41,512
Sales and marketing		11,360				12,239				48,384				63,219
General and administrative (2)		(23,500	)			27,608				57,738				105,410
Total stock-based compensation expense, net of amounts capitalized	$	(2,654	)		$	50,416			$	146,819			$	216,706

(2)        Includes approximately $41 million reversal of stock-based compensation expense during the quarter and year ended December 31, 2025 resulting from the departure of our Executive Chairman.

FRESHWORKS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
	December 31, 2025				December 31, 2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	569,774			$	620,315
Restricted cash		62,374				3
Marketable securities		211,597				449,750
Accounts receivable, net		150,817				122,910
Deferred contract acquisition costs		29,830				26,106
Prepaid expenses and other current assets		72,774				46,343
Total current assets		1,097,166				1,265,427
Property and equipment, net		38,843				25,893
Operating lease right-of-use assets		39,893				36,891
Deferred contract acquisition costs, noncurrent		27,179				22,534
Goodwill		146,676				147,014
Intangible assets, net		76,986				90,840
Deferred tax assets, net		157,466				8,499
Other assets		18,503				14,786
Total assets	$	1,602,712			$	1,611,884
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	11,507			$	1,619
Accrued liabilities		97,631				81,933
Deferred revenue		385,320				323,435
Income tax payable		3,571				728
Total current liabilities		498,029				407,715
Operating lease liabilities, non-current		33,282				30,221
Other liabilities		38,751				36,027
Total liabilities		570,062				473,963
Stockholders' equity:
Common stock		3				3
Additional paid-in capital		4,586,392				4,874,133
Accumulated other comprehensive loss		(1,591	)			(338	)
Accumulated deficit		(3,552,154	)			(3,735,877	)
Total stockholders' equity		1,032,650				1,137,921
Total liabilities and stockholders' equity	$	1,602,712			$	1,611,884

FRESHWORKS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
	Three Months Ended December 31,								Year Ended December 31,
	2025				2024				2025				2024
Cash Flows from Operating Activities:
Net income (loss)	$	191,446			$	(21,900	)		$	183,723			$	(95,368	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		6,612				6,363				25,857				19,415
Amortization of deferred contract acquisition costs		8,284				7,889				31,702				28,556
Non-cash lease expense		2,685				2,235				9,700				8,842
Stock-based compensation		(2,654	)			50,416				146,819				216,706
Discount amortization on marketable securities		(1,041	)			(3,020	)			(6,557	)			(15,992	)
Gain on sale of non-marketable equity investments		—				—				(1,837	)			—
Release of valuation allowance		(151,738	)			—				(151,738	)			—
Deferred income taxes		3,096				1,159				2,637				(12,642	)
Other		62				1,076				779				1,397
Changes in operating assets and liabilities:
Accounts receivable		(31,086	)			(23,747	)			(28,059	)			(17,145	)
Deferred contract acquisition costs		(10,710	)			(9,819	)			(40,071	)			(34,524	)
Prepaid expenses and other assets		3,505				6,340				(11,868	)			(1,393	)
Accounts payable		3,976				(5,326	)			9,573				(2,204	)
Accrued and other liabilities		5,862				4,266				19,078				14,454
Deferred revenue		36,870				27,849				61,179				54,808
Operating lease liabilities		(2,835	)			(2,419	)			(8,547	)			(4,264	)
Net cash provided by operating activities		62,334				41,362				242,370				160,646
Cash Flows from Investing Activities:
Purchases of property and equipment		(2,232	)			(5,067	)			(5,700	)			(9,177	)
Proceeds from sale of property and equipment		55				193				149				279
Capitalized internal-use software		(3,872	)			(1,911	)			(15,791	)			(5,485	)
Sale of non-marketable equity investments		—				—				1,984				—
Purchases of marketable securities		(95,841	)			(53,935	)			(586,833	)			(620,573	)
Maturities and redemptions of marketable securities		277,522				269,868				830,756				887,664
Advances paid for business combination		(18,432	)			—				(18,432	)			—
Business combination, net of cash acquired		—				—				—				(213,905	)
Net cash provided by investing activities		157,200				209,148				206,133				38,803
Cash Flows from Financing Activities:
Proceeds from issuance of common stock under employee stock purchase plan, net		2,921				3,013				6,228				6,643
Proceeds from exercise of stock options		—				50				74				89
Payment of withholding taxes on net share settlement of equity awards		(11,240	)			(10,672	)			(56,654	)			(60,299	)
Repurchase of common stock		—				(13,693	)			(386,306	)			(13,693	)
Net cash used in financing activities		(8,319	)			(21,302	)			(436,658	)			(67,260	)
Net decrease in cash, cash equivalents and restricted cash		211,215				229,208				11,845				132,189
Cash, cash equivalents and restricted cash, beginning of period		421,035				391,197				620,405				488,216
Cash, cash equivalents and restricted cash, end of period	$	632,250			$	620,405			$	632,250			$	620,405

FRESHWORKS INC. RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except percentages and per share data) (unaudited)
		Three Months Ended December 31,
		2025				2024				Growth Rates
Revenue
GAAP revenue		$	222,740			$	194,571			14%
Effects of foreign currency rate fluctuations			(2,462	)
Revenue adjusted for constant currency		$	220,278			$	194,571			13%

		Twelve Months Ended December 31,
		2025				2024				Growth Rates
Revenue
GAAP revenue		$	838,809			$	720,420			16%
Effects of foreign currency rate fluctuations			(2,636	)
Revenue adjusted for constant currency		$	836,173			$	720,420			16%

FRESHWORKS INC. RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except percentages and per share data) (unaudited)
	Three Months Ended December 31,								Year Ended December 31,
	2025				2024				2025				2024
Reconciliation of gross profit and gross margin:
GAAP gross profit	$	190,570			$	165,112			$	712,664			$	607,090
Non-GAAP adjustments:
Stock-based compensation expense		1,411				1,532				5,833				6,565
Employer payroll taxes on employee stock transactions		13				13				95				123
Amortization of acquired intangibles		1,289				1,288				5,113				2,927
Non-GAAP gross profit	$	193,283			$	167,945			$	723,705			$	616,705
GAAP gross margin		85.6	%			84.9	%			85.0	%			84.3	%
Non-GAAP gross margin		86.8	%			86.3	%			86.3	%			85.6	%
Reconciliation of operating expenses:
GAAP research and development	$	41,802			$	41,028			$	163,208			$	164,590
Non-GAAP adjustments:
Stock-based compensation expense		(8,075	)			(9,037	)			(34,864	)			(41,512	)
Employer payroll taxes on employee stock transactions		(65	)			(30	)			(334	)			(290	)
Non-GAAP research and development	$	33,662			$	31,961			$	128,010			$	122,788
GAAP research and development as percentage of revenue		18.8	%			21.1	%			19.5	%			22.8	%
Non-GAAP research and development as percentage of revenue		15.1	%			16.4	%			15.3	%			17.0	%
GAAP sales and marketing	$	109,363			$	90,674			$	394,753			$	390,817
Non-GAAP adjustments:
Stock-based compensation expense		(11,360	)			(12,239	)			(48,384	)			(63,219	)
Employer payroll taxes on employee stock transactions		(203	)			(241	)			(1,528	)			(1,880	)
Amortization of acquired intangibles		(2,127	)			(2,304	)			(8,741	)			(5,233	)
Non-GAAP sales and marketing	$	95,673			$	75,890			$	336,100			$	320,485
GAAP sales and marketing as percentage of revenue		49.1	%			46.6	%			47.1	%			54.2	%
Non-GAAP sales and marketing as percentage of revenue		43.0	%			39.0	%			40.1	%			44.5	%
GAAP general and administrative	$	(329	)		$	47,538			$	141,093			$	180,629
Non-GAAP adjustments:
Stock-based compensation expense		23,500				(27,608	)			(57,738	)			(105,410	)
Employer payroll taxes on employee stock transactions		(154	)			(150	)			(1,069	)			(930	)
Acquisition expense		(684	)			—				(684	)			—
Non-GAAP general and administrative	$	22,333			$	19,780			$	81,602			$	74,289
GAAP general and administrative as percentage of revenue		(0.1)	%			24.4	%			16.8	%			25.1	%
Non-GAAP general and administrative as percentage of revenue		10.0	%			10.2	%			9.7	%			10.3	%
Reconciliation of operating loss and operating margin:
GAAP income (loss) from operations	$	39,734			$	(23,792	)		$	13,205			$	(138,610	)
Non-GAAP adjustments:
Stock-based compensation expense		(2,654	)			50,416				146,819				216,706
Employer payroll taxes on employee stock transactions		435				434				3,026				3,223
Amortization of acquired intangibles		3,416				3,592				13,854				8,160
Restructuring charges		—				9,664				405				9,664
Acquisition expense		684				—				684				—
Non-GAAP income from operations		41,615				40,314				177,993				99,143
GAAP operating margin		17.8	%		(12.2		)%			1.6	%		(19.2		)%
Non-GAAP operating margin		18.7	%			20.7	%			21.2	%			13.8	%
Reconciliation of net loss:
GAAP net income (loss)	$	191,446			$	(21,900	)		$	183,723			$	(95,368	)
Non-GAAP adjustments:
Stock-based compensation expense		(2,654	)			50,416				146,819				216,706
Employer payroll taxes on employee stock transactions		435				434				3,026				3,223
Amortization of acquired intangibles		3,416				3,592				13,854				8,160
Gain on sale of non-marketable equity investments		—				—				(1,837	)			—
Restructuring charges		—				9,664				405				9,664
Acquisition expense		684				—				684				—
Income tax adjustments (2, 3)		(153,750	)			655				(151,900	)			(12,017	)
Non-GAAP net income	$	39,577			$	42,861			$	194,774			$	130,368
Reconciliation of net loss per share - diluted:
GAAP net loss per share - diluted	$	0.67			$	(0.07	)		$	0.63			$	(0.32	)
Non-GAAP adjustments:
Stock-based compensation expense		(0.01	)			0.17				0.50				0.72
Employer payroll taxes on employee stock transactions		—				—				0.01				0.01
Amortization of acquired intangibles		0.01				0.01				0.05				0.03
Restructuring charges		—				0.03				—				0.03
Gain on sale of non-marketable equity investments		—				—				(0.01	)			—
Acquisition expense		—				—				—				—
Income tax adjustments (2, 3)		(0.53	)			—				(0.52	)			(0.04	)
Non-GAAP net income per share - diluted	$	0.14			$	0.14			$	0.66			$	0.43
Weighted-average shares used in computing GAAP net income (loss) per share - diluted		283,911				303,560				293,769				300,843
Weighted-average shares used in computing non-GAAP net income per share - diluted (1)		283,911				306,109				293,769				305,085
Computation of adjusted free cash flow:
Net cash provided by operating activities	$	62,334			$	41,362			$	242,370			$	160,646
Less:
Purchases of property and equipment		(2,232	)			(5,067	)			(5,700	)			(9,177	)
Capitalized internal-use software		(3,872	)			(1,911	)			(15,791	)			(5,485	)
Add:
Restructuring costs paid		—				7,314				2,221				7,314
Adjusted free cash flow	$	56,230			$	41,698			$	223,100			$	153,298
Operating cash flow margin		28.0	%			21.3	%			28.9	%			22.3	%
Adjusted free cash flow margin		25.2	%			21.4	%			26.6	%			21.3	%
Net cash provided by investing activities	$	157,200			$	209,148			$	206,133			$	38,803
Net cash used in financing activities	$	(8,319	)		$	(21,302	)		$	(436,658	)		$	(67,260	)

(1) Diluted net income (loss) per share is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result. The company considers its stock options and RSUs as potential common stock equivalents but excludes them from the computation of GAAP diluted net loss per share if their effect was antidilutive.

(2) During the quarter ended December 31, 2025, income tax adjustments primarily included approximately $151.7 million or $0.53 per share of tax benefit from a release of our valuation allowance on U.S. deferred tax assets and $37.3 million or $0.13 per share of income tax effect of non-GAAP adjustments, partially offset by $35.2 million or $0.13 per share of transition impact of releasing our valuation allowance. During the year ended December 31, 2025, income tax adjustments primarily included approximately $151.7 million or $0.52 per share of tax benefit from a release of our valuation allowance on U.S. deferred tax assets and $39.1 million or $0.13 per share of income tax effect of non-GAAP adjustments, partially offset by $38.9 million or $0.13 per share of transition impact as a result of releasing our valuation allowance.

(3) During the year ended December 31, 2024, income tax adjustments included $14.3 million or $0.05 per share of income tax benefit associated with acquisitions.

FAQ

What were Freshworks (FRSH) fourth quarter 2025 revenue and growth rates?

Freshworks reported Q4 2025 revenue of $222.7 million, a 14% year-over-year increase. According to the company, constant-currency growth was 13%, reflecting international currency effects on reported revenue.

How much revenue did Freshworks (FRSH) generate in full year 2025 and what was the growth?

Freshworks reported full year 2025 revenue of $838.8 million, up 16% year-over-year. According to the company, this growth was 16% on a constant-currency basis as well.

What cash and liquidity did Freshworks (FRSH) report at year-end 2025?

Freshworks had $843.7 million in cash, cash equivalents, restricted cash and marketable securities as of December 31, 2025. According to the company, this reflects strong operating cash generation and balance-sheet liquidity.

What guidance did Freshworks (FRSH) give for full year 2026 revenue and growth?

Freshworks guided to $952.0M–$960.0M revenue for 2026, implying 13.5%–14.5% year-over-year growth. According to the company, these estimates use foreign exchange rates as of February 6, 2026.

How did Freshworks (FRSH) perform on profitability metrics in 2025?

Freshworks delivered 2025 non-GAAP income from operations of $178.0M (21.2% margin) and GAAP operating income of $13.2M (1.6% margin). According to the company, non-GAAP measures exclude stock-based compensation and other items.

What ARR milestones did Freshworks (FRSH) announce in Q4 2025?

Freshworks said its EX business surpassed $500M ARR, Enterprise Service Management and Device42 each exceeded $40M ARR, and Freddy AI topped $25M ARR. According to the company, these milestones reflect product adoption and customer expansion.