Freshworks Inc. Class A Common Stock Q3 2026 Earnings Recap

Freshworks shares fell 6.3% after earnings. The transcript points to a likely concern: despite Q3 revenue at the high end of estimates, growth was 14% year over year, and the call excerpt provides no forward guidance to offset that deceleration risk; the stock move itself does not establish the market’s specific concern.

Key Takeaways

• Q3 revenue was $245.4 million, up 14% year over year and at the high end of company estimates.
• Non-GAAP operating income was $73.2 million, a 30% margin; non-GAAP EPS was $0.22. GAAP net income was $18.3 million, with GAAP EPS of $0.07.
• Adjusted free cash flow was $73.9 million, also a 30% margin. Management expects adjusted free cash flow per share to exceed $0.94 for the year.
• EX ARR grew 22% in constant currency to $588 million, or 59% of total ARR. Customers above $100,000 in ARR grew 26%.
• The call highlighted enterprise and multiproduct momentum, including over 400 new Freshservice ITAM customers since its Q2 launch; however, the supplied excerpt does not include the company’s Q4 or full-year revenue outlook.