Freshworks Inc. Class A Common Stock

Freshworks Inc. Class A Common Stock Earnings Recaps

FRSH Information Technology 2 recaps
Q1 2026 May 7, 2026

Shares declined modestly by 1% following Freshworks' Q1 report, reflecting investor caution despite stable growth, with no clear upside catalyst strong enough to drive the stock higher amid ongoing margin pressures and a restrained outlook.

Key takeaways
  • Q1 revenue rose 16% year-over-year, slightly above internal targets, with EX ARR growing 27% driven by mid-market and enterprise customer expansion.
  • Non-GAAP operating margin was 18%, approximately 3 points above estimates, while adjusted free cash flow margin reached 24%, indicating solid profitability metrics.
  • AI product adoption showed strong momentum: Freddy AI Copilot customer growth exceeded 80% YoY, with over 1/3 of new EX customers attaching Copilot.
  • CX ARR growth remained modest at 6% YoY, highlighting slower progress compared to EX business and ongoing replatforming efforts.
  • Despite notable enterprise deals and AI integration advances, investor response suggests concerns over deceleration in CX growth and limited incremental visibility into FY26 guidance.
Full recap
Q3 2025 Nov 6, 2025

Freshworks reported strong Q3 2025 results, exceeding revenue and profitability expectations with a 15% year-over-year growth to $215.1 million and a non-GAAP operating margin of 21%.

Key takeaways
  • Added nearly 75,000 customers, including notable new clients such as Stellantis and Societe Generale.
  • Achieved over 40% year-over-year growth in deals exceeding $50,000 in ARR.
  • Employee Experience segment drove 24% ARR growth, surpassing $480 million; expansion into non-IT departments fueled strong demand.
  • Freshservice for Business Teams doubled its ARR, exceeding $35 million, and is now available as a standalone product.
  • Continued momentum in the enterprise market, with 25% growth in ARR from clients spending over $100,000 in Q3.
Full recap