ResultsEnterprise Software & IT
Freshworks turns profitable, crosses $1B ARR
By Abha Lohia · Editor ·
Freshworks: funding and every story →
ChennaiFounded 2010
- Freshworks is a Nasdaq-listed software company, founded in Chennai, selling customer support and IT service tools worldwide
- Quarterly revenue rose 14% to $245.4 million, and annual recurring revenue (yearly subscription income) reached $1 billion
- It posted an $18.3 million net profit against a $4.7 million loss a year earlier, with operating margin at 11.5%
What happened
- Q3 revenue was $245.4M, up 14%.
- Net profit was $18.3M versus a $4.7M loss.
- ARR hit $1 billion.
Why it matters
- Operating expenses fell 4.4% while revenue grew, lifting margins.
The business
- Freshworks sells SaaS tools for customer service and IT teams.
The founders
In numbers
$245.4MRevenue · Q3 CY26
85.3%Gross margin · Q3 CY26
$77.7MOperating cash flow · Q3 CY26
Other articles talking about it
Terms in this story
- ARR and MRR: MRR is the monthly recurring revenue a company expects from subscriptions, and ARR is that figure times twelve. They suit software and subscription companies only. ARR is a run rate, not booked revenue, so ARR claims in Indian news can differ from filed accounts.
- Profitability: A path to profitability is the plan and evidence that a startup will earn more than it spends. In India the usual order is contribution positive, then EBITDA positive, then net profit and positive cash flow. Each step is a different test, so claims of profit need the definition.
- Profitability: Profitable can mean five different things in a startup headline: profit after tax, positive EBITDA, positive adjusted EBITDA, positive cash flow or profit on each order. Only the first is a profit in the full accounting sense. Always check which one a story means.
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