Freshworks reported FY 2025 revenue of USD 838.8 million (+16.0%), including USD 829.4 million (+17.0%) from subscription services, software licenses and maintenance and USD 9.4 million (-3.0%) from professional services. Gross profit was USD 712.7 million and gross margin was 85%. Operating income was USD 13.2 million, while net income was USD 183.7 million, reflecting an income tax benefit of USD 130.4 million tied to a USD 151.7 million release of valuation allowance on U.S. deferred tax assets. Net cash provided by operating activities was USD 242.4 million and free cash flow was USD 220.9 million. Key business metrics included nearly 75,000 paying customers as of December 31, 2025, with 24,762 customers contributing more than USD 5,000 in ARR (91% of total ARR), and net dollar retention rate of 108%. Freshworks said about 31% of customers purchased two or more products, representing 45% of total ARR, and it ended 2025 with about 3,760 customers contributing USD 50,000 or more in ARR (+23%). Corporate updates included the June 2024 acquisition of Device42 parent D42 Parent, Inc. for about USD 238.1 million, and the January 2026 completion of the FireHydrant acquisition, to be accounted for as a business combination with purchase price allocation not yet completed.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Freshworks Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001544522-26-000036), on February 26, 2026, and is solely responsible for the information contained therein.
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