FR

Freshworks Inc. Class A Common Stock Earnings Recaps

FRSH Information Technology 3 recaps
Next earnings: November 4, 2026 (estimated) · full calendar
Q2 2026 Aug 7, 2026

Shares declined 2.1% post-earnings, reflecting some investor caution despite stable growth and sustained profitability. While core metrics held steady, the market appears to be digesting a cautious outlook and lack of clear upside catalysts.

Key takeaways
  • Q2 revenue grew 16% year-over-year to $237.4 million, maintaining consistent top-line growth.
  • Non-GAAP operating margin remained healthy at 24%, continuing a streak of eight quarters achieving Rule of 40.
  • Employee Experience (EX) ARR expanded 24% in constant currency to $567 million, now comprising about 59% of total ARR.
  • Growth driven by increased large customer deals, with 40% of total ARR coming from customers contributing over $100,000 annually.
  • Management highlighted progress on AI integration and upmarket expansion, but no explicit guidance gains or margin expansion to offset cautious investor sentiment.
Full recap
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

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