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