Results · Enterprise Software & IT
Freshworks reports Q4 revenue of $223M, up 15%
By Startup Enthusiast ·
- 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.
More on Freshworks
- Freshworks posts Q2 profit, lifts guidance5 August 2026 · Results
- Freshworks appoints Ryan Manning as CPTO29 July 2026 · People
- Freshworks lays off 500 staff citing AI productivity20 May 2026 · Analysis · around 500 employees
- Freshworks cuts 500 staff and posts Q1 results6 May 2026 · Layoffs · $8 Mn
- Freshworks raises full year revenue guidance to $836 million16 January 2026 · Results
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