Freshworks Posts 14% Revenue Growth In Q4 2025

Freshworks Inc. 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.