Freshworks Inc. (FRSH)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$903.9M

Revenue growth

15.6%

Net income, last twelve months

$185.2M

Earnings per share

$0.64

Gross margin

85.0%

Operating margin

3.3%

Net margin

20.5%

Free cash flow

$233.8M

Return on equity

20.7%

Market value

$2.4B

Price to earnings

24.0x

Cash

$494.7M

Debt

$0

Debt to equity

0.00

Shares outstanding

153.9M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter 2026 results, filed 4 August 2026.

• Revenue grew 16% to $237.4 million. Revenue was $237.4 million, up from $204.7 million a year earlier, or 15% at constant currency. Foreign exchange reduced reported revenue by $1.5 million.
• First quarter of GAAP net income in 2026. GAAP net income was $3.2 million, or $0.01 diluted per share, against a net loss of $1.7 million a year earlier. The company described this as its first quarter of GAAP profitability in 2026.
• GAAP operating income turned positive. GAAP income from operations was $6.1 million, a 2.6% operating margin, compared with a loss of $8.7 million a year earlier. The figure includes $7.0 million of restructuring charges.
• Non-GAAP operating margin rose to 23.6%. Non-GAAP income from operations was $55.9 million, a 23.6% margin, up from 21.9%. Non-GAAP diluted EPS was $0.17, against $0.18 a year earlier, on 273.0 million weighted-average shares.
• Eighth quarter of Rule of 40. The company said it achieved its eighth consecutive quarter of Rule of 40, reflecting growth and profitability together.
• Full-year estimates raised. Full-year 2026 revenue, non-GAAP operating income and non-GAAP EPS estimates were all raised in this release.
• Customers above $100,000 ARR rose 25%. Customers above $100,000 ARR reached 1,746, up 25% year-over-year and 26% at constant currency, from 1,646 in the first quarter.
• Mid-tier customer counts grew. Customers above $50,000 ARR were 4,091, up 18%. Customers above $5,000 ARR were 25,356, up 6%, compared with 25,088 in the first quarter.
• Net dollar retention fell to 104%. Net dollar retention was 104%, down from 106% in the first quarter and 106% a year earlier. At constant currency it was 105%, against 105% in the first quarter.
• EX ARR grew 24%, Copilot attach over 71%. EX ARR grew 24% year-over-year. Freddy AI Copilot is attached to over 71% of new enterprise deals, according to the CEO.
• Named new customers onboarded. The company named Van Marcke, Hydrite Chemical, Simpar, Upland Software, Paddle, and Open Health Communications among customers it welcomed and onboarded.
• Non-GAAP gross margin held at 86.2%. Non-GAAP gross margin was 86.2%, against 86.1% a year earlier. GAAP gross margin was 84.8% in both periods.
• Sales and marketing ratio declined. Non-GAAP sales and marketing was 38.9% of revenue, against 39.5% a year earlier. GAAP sales and marketing was 44.8% of revenue, against 46.5%.
• G&A ratio fell on lower stock compensation. GAAP general and administrative expense was 16.0% of revenue, against 23.0%. Stock-based compensation in this line was $16.2 million, against $27.4 million a year earlier.

Revenue by segment

As the company reports it in the segment note of its annual report.

By product, FY2025

Company events

The newest 8-K filings of 44 held.

Every filing

The newest filings with the SEC of 124 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

401 funds held it at 30 Jun 2026: 208 added and 74 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Microsoft Corp. (MSFT): revenue $346.4B, market value $3.95T
• Palantir Technologies Inc. (PLTR): revenue $6.2B, market value $473.1B
• Oracle Corp. (ORCL): revenue $71.8B, market value $436.3B
• SAP SE (SAP): revenue $41.6B, market value $276.7B
• CrowdStrike Holdings, Inc. (CRWD): revenue $5.4B, market value $273.1B
• Shopify Inc. (SHOP): revenue $13.3B, market value $218.4B
• Salesforce, Inc. (CRM): revenue $43.9B, market value $199.5B
• ServiceNow, Inc. (NOW): revenue $15.4B, market value $155.6B
• Snowflake Inc. (SNOW): revenue $5.4B, market value $119.8B
• Cloudflare, Inc. (NET): revenue $2.5B, market value $113.0B

What the company does

Freshworks provides software that organizations use to serve their employees and their customers, which it calls people-first AI service software. Its employee experience products include Freshservice, Freshservice for Business Teams, Device42 and FireHydrant, and its customer experience products are the Freshdesk suite. Its AI offerings are Freddy AI Agents, Freddy AI Copilot and Freddy AI Insights. Nearly 75,000 companies use its products, in approximately 170 countries. The company is headquartered in San Mateo, CA, and has approximately 4,500 full-time employees.

What it sells

The employee experience products serve IT and other internal teams. Freshservice is an IT and enterprise service management platform that covers IT Service Management, IT Operations Management and IT Infrastructure Management. Freshservice for Business Teams extends service management and workflow automation to HR, Facilities, Finance and Legal, and individual business units can deploy it on their own. Device42 handles IT discovery, dependency mapping and asset management. FireHydrant is an incident management platform that covers alerting, on-call scheduling, major-incident coordination and post-incident analytics.

The customer experience products serve customer-facing teams. Freshdesk Omni is an omnichannel customer service platform that brings support channels into one workspace. The portfolio also includes Freshdesk for ticketing and case management, Freshchat for messaging, Freshcaller for cloud-based voice operations, Freshsales as a sales CRM, and Freshmarketer for marketing automation.

Freddy AI runs across these products. Its AI Agents handle conversational support, its Copilot helps agents summarize tickets and suggest responses, and its Insights feature monitors metrics and flags anomalies. The Freshworks Marketplace offers over 1,200 apps, and customers and partners can build their own using the developer framework and SDKs.

How it makes money

Substantially all revenue comes from subscriptions to its cloud-based software. Contracts run on monthly, annual or multi-year terms, and customers are invoiced in advance in monthly or annual installments. Monthly subscriptions were 13% of ARR as of 31 December 2025. Since the June 2024 acquisition of Device42, the company also sells software licenses with maintenance. Professional services cover configuration, data migration, systems integration and training, and make up less than 5% of total revenue.

Who buys from it

The company sorts customers by size. SMB means 250 or fewer employees, mid-market means 251 to 5,000, and enterprise means 5,001 or more, where it focuses on divisions or departments within the organization. Over 60% of ARR came from customers with more than 250 employees. About 31% of customers bought two or more products, and they represented 45% of ARR.

By region, 46% of revenue came from North America, 39% from Europe, Middle East and Africa, and 15% from the rest of the world. Revenue exposure to the euro and British pound was approximately 28%.

How it sells

The company uses three sales motions. The inbound motion is the main route for CX products and relies on search marketing, word of mouth and 14-day free trials. The outbound motion uses outbound marketing, sales development representatives and field sales representatives, mainly for mid-market and enterprise buyers. The partner ecosystem includes channel resellers, independent software vendors and marketplace partners. Sales teams are organized by customer size, and the SMB team is based in India. After purchase, customer success teams run digital onboarding, health checks and business reviews, and they handle renewals and expansion.

How the software is built

The products are cloud-native, multi-tenant SaaS systems built on Ruby on Rails, Java and MySQL. They run as independent pods of compute, storage and database infrastructure, hosted in AWS regions in the United States, EU, India, Australia and the United Arab Emirates. A Network Operations Center monitors them around the clock. The company holds ISO 27001 and SOC 2 Type 2 certifications. Research and development is carried out in the United States and India. The company holds twenty issued US patents and has twenty pending applications.

Competition and regulation

For employee experience products, the filing names ServiceNow, BMC and Ivanti as traditional competitors and Atlassian among the cloud-based ones. For customer experience products, it names Salesforce, Zendesk, Intercom, Oracle, SAP, HubSpot, Microsoft Dynamics and Sage. The company says many rivals offer only one component, such as customer service or IT service management alone. It is subject to privacy and data protection laws, including the California Consumer Privacy Act and European cross-border data transfer rules.

Its people

Most of the approximately 4,500 employees work in India, where teams support engineering, product design, customer support, inbound sales, and general and administrative functions. The workforce is hybrid and spread across North America, Europe, Asia and Australia, with 11 offices besides the San Mateo headquarters. The company runs the Freshworks STS Software Academy, which gives free software-skills training to youth in India.

*From Freshworks's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1544522/000154452226000036/frsh-20251231.htm)*

From the company's 10-K.