Results · Enterprise Software & IT

Freshworks raises full year revenue guidance to $836 million

By Startup Enthusiast · 16 January 2026

What they do

Freshworks builds AI-powered customer and employee service software for global enterprises

The company raised its full-year revenue forecast to $833–836 million after strong Q3 growth

AI-related revenue more than doubled in Q3 as the firm targets GAAP profitability by 2026

Freshworks reported $215 million in third-quarter revenue for calendar year 2025.
This figure represents a 15% year-over-year increase compared to the same period last year.
The company raised its full-year revenue guidance to a range of $833–836 million.
Net loss narrowed significantly by 84% to just $4.7 million in the quarter.
Management stated it is targeting GAAP profitability (standard accounting profit) by the end of 2026.
CEO Dennis Woodside has led an AI-first strategy since taking charge in 2024.
The business is shifting from traditional helpdesk tools to an AI-native platform structure.
Quarterly growth was split between 8% for customer experience and 24% for employee experience products.

Freshworks became the first Indian SaaS company to list on Nasdaq in September 2021.
The company acquired Device 42 for $230 million in 2024 to expand its capabilities.
Founder Girish Mathrubootham stepped down as CEO in May 2024 to focus on other roles.
CTO Shan Krishnasamy left the company in September 2022 after more than ten years.
The strategic pivot aims to modernize legacy software into agentic AI workflows.

Freshworks provides software that helps companies manage customer and employee interactions.
It offers Freddy AI, which acts as a cross-suite layer embedded in daily workflows.
Freshdesk is positioned as an AI-first software solution for customer support teams.
Freshservice has expanded beyond IT to handle finance and HR via AI automation.
The company launched vertical AI agents for ecommerce, fintech, travel, and logistics in late 2025.
These new agents claim to resolve up to 80% of queries instantly without human help.
High-value customers paying over $5,000 annually grew faster than the overall customer base.
AI-related annual recurring revenue (ARR) more than doubled year-over-year in Q3 2025.
The firm operates globally as a cloud-based enterprise software provider.

Freshworks aims to achieve GAAP profitability by the end of 2026.
The company plans to continue embedding Freddy AI across all product suites.
Vertical AI agents will likely expand into additional industry sectors beyond current launches.