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Results · Enterprise Software & IT

Freshworks reports Q4 revenue of $223M, up 15%

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Date
Company
Freshworks
What it does
SaaS customer engagement software
Kind
Results
Sector
Enterprise Software & IT

What they do

Freshworks makes cloud-based software for customer support and IT management

What happened

Q4 CY25 revenue was $223M, up 15% year-on-year, with GAAP operating income of $40M

Why it matters

The company turned profitable on a GAAP basis for the full year, with $13.2M operating profit

The details

  • Freshworks reported Q4 CY25 revenue of $223M, up 15% year-on-year from $195M.
  • Revenue grew 4% sequentially from $215M in Q3 CY25.
  • GAAP operating income for Q4 CY25 was $40M, compared to a loss of $24M in Q4 CY24.
  • Full year CY25 revenue was $839M, up 16% from $720M in CY24.
  • Full year CY25 GAAP operating profit was $13.2M, versus a loss of $138.6M in CY24.
  • Customers with annual recurring revenue over $5K reached 24,762, up 10% year-on-year.
  • Net dollar retention rate in Q4 CY25 was 108%, up from 103% in Q4 CY24.
  • Freshworks acquired FireHydrant to strengthen its IT service management portfolio.
  • It launched new AI-led capabilities across Freshservice and Freshdesk.
  • Kady Srinivasan was appointed as chief marketing officer.

The bigger picture

  • Freshworks turned profitable on a GAAP basis for the full year, a milestone for the company.
  • The net dollar retention rate improved to 108%, indicating existing customers are spending more.
  • The acquisition of FireHydrant and new AI features show Freshworks is investing in product expansion.

About the business

  • Freshworks provides cloud-based software for customer support, IT service management, and sales.
  • Its main products are Freshdesk (customer support) and Freshservice (IT service management).
  • The company serves over 24,000 business customers globally.
  • It makes money through subscription fees based on annual recurring revenue.
  • Freshworks is headquartered in San Mateo, California, and was founded in India.

What happens next

  • Freshworks guided Q1 CY26 revenue between $222M and $225M.
  • Full year CY26 revenue guidance is $952M to $960M.

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