Financials

Freshworks Inc. financials

FRSH Software

Freshworks Inc., founded in 2010 and headquartered in San Mateo, California, United States, is a leading provider of cloud-based customer engagement and IT service management software. The company’s subscription-based model drives recurring revenues with flagship products like Freshdesk, Freshservice, and Freshsales. Led by CEO Girish Mathrubootham, Freshworks has grown its customer base to over 50,000 while competing with firms such as Zendesk and ServiceNow. Strategic investments in AI and international expansion continue to fuel its future growth.

Snapshot

Freshworks Inc. reported $839M in revenue in fiscal 2025, up 16.4% year over year, with an operating margin of 1.6%.

Revenue (FY2025): $839M
YoY growth: +16.4%
Operating margin: 1.6%
Direction: Expanding

Financial statements

In thousands, USD
	FY 2025	FY 2024	FY 2023	FY 2022
Total Revenues	838,809	720,420	596,432	497,999
Cost of Sales	126,145	113,330	103,369	95,772
Gross Profit	712,664	607,090	493,063	402,227
Selling, General & Administrative Expenses	535,846	571,446	525,479	500,056
Research & Development Expenses	163,208	164,590	137,756	135,543
Other Operating Expenses	405	9,664	—	—
Operating Profit	13,205	(138,610)	(170,172)	(233,372)
Non-Operating Income	40,077	47,773	46,403	12,582
Total Non-Operating Income	40,077	47,773	46,403	12,582
Income Before Provision for Income Taxes	53,282	(90,837)	(123,769)	(220,790)
Provision for Income Taxes	(130,441)	4,531	13,667	11,342
Consolidated Net Income	183,723	(95,368)	(137,436)	(232,132)
Net Income Attributable to Common Shareholders	183,723	(95,368)	(137,436)	(232,132)
Basic EPS	0.63	-0.32	-0.47	-0.82
Diluted EPS	0.63	-0.32	-0.47	-0.82
Basic Weighted Average Shares Outstanding	291,079	300,843	293,087	284,587
Diluted Weighted Average Shares Outstanding	293,769	300,843	293,087	284,587
Shares Outstanding	283,427	303,382	296,695	289,093

In thousands, USD
	FY 2025	FY 2024	FY 2023	FY 2022
Cash and Cash Equivalents	569,774	620,315	488,121	304,083
Short-Term Investments	211,597	449,750	699,506	843,405
Total Cash and Cash Equivalents	781,371	1,070,070	1,187,630	1,147,490
Accounts Receivable	150,817	122,910	97,179	70,470
Total Trade Receivables	150,817	122,910	97,179	70,470
Other Current Assets	164,978	72,452	70,740	59,052
Total Current Assets	1,097,170	1,265,430	1,355,550	1,277,010
Net Property, Plant & Equipment	78,736	62,784	55,496	57,163
Net Intangible Assets	76,986	90,840	—	—
Goodwill	146,676	147,014	6,181	6,181
Other Long-Term Assets	203,148	45,819	39,549	39,862
Total Assets	1,602,710	1,611,880	1,456,770	1,380,220
Accounts Payable	11,507	1,619	3,485	5,908
Accrued Expenses	97,631	81,933	56,608	59,008
Unearned Revenue	385,320	323,435	266,399	205,626
Other Current Liabilities	3,571	728	722	1,150
Total Current Liabilities	498,029	407,715	327,214	271,692
Leases	33,282	30,221	26,795	28,174
Other Long-Term Liabilities	38,751	36,027	30,501	28,532
Total Long-Term Liabilities	72,033	66,248	57,296	56,706
Total Liabilities	570,062	473,963	384,510	328,398
Common Stock	3	3	3	3
Additional Paid-in Capital	4,586,390	4,874,130	4,713,520	4,562,320
Accumulated Other Comprehensive Income	(1,591)	(338)	(754)	(7,431)
Retained Earnings	(3,552,150)	(3,735,880)	(3,640,510)	(3,503,070)
Total Common Shareholders' Equity	1,032,650	1,137,920	1,072,260	1,051,820
Total Shareholders' Equity	1,032,650	1,137,920	1,072,260	1,051,820
Total Liabilities and Shareholders' Equity	1,602,710	1,611,880	1,456,770	1,380,220

In thousands, USD
	FY 2025	FY 2024	FY 2023	FY 2022
Net Income	183,723	(95,368)	(137,436)	(232,132)
Depreciation & Amortization	57,559	47,971	36,109	30,036
Share-Based Compensation Expense	146,819	216,706	210,707	207,696
Other Adjustments	(147,016)	(18,395)	(9,119)	2,979
Changes in Trade Receivables	(28,059)	(17,145)	(26,982)	(18,892)
Changes in Accounts Payable	9,573	(2,204)	(2,423)	77
Changes in Accrued Expenses	19,078	14,454	1,839	7,746
Changes in Unearned Revenue	61,179	54,808	60,773	45,453
Changes in Other Operating Activities	(60,486)	(40,181)	(47,290)	(45,488)
Cash from Operating Activities	242,370	160,646	86,178	(2,525)
Capital Expenditure	(5,700)	(9,177)	(2,069)	(7,129)
Proceeds from Sale of Property, Plant & Equipment	149	279	110	137
Purchases of Intangible Assets	(15,791)	(5,485)	(6,271)	(5,116)
Purchases of Investments	(586,833)	(620,573)	(842,803)	(848,560)
Proceeds from Sale of Investments	832,740	887,664	1,009,530	575,841
Payments for Business Acquisitions	(18,432)	(213,905)	—	—
Cash from Investing Activities	206,133	38,803	158,499	(284,827)
Issuance of Common Shares	6,302	6,732	7,359	10,979
Repurchases of Common Shares	(442,960)	(73,992)	(67,978)	(167,224)
Net Issuance / (Repurchases) of Common Shares	(436,658)	(67,260)	(60,619)	(156,245)
Other Financing Activities	—	—	—	(109)
Cash from Financing Activities	(436,658)	(67,260)	(60,619)	(156,354)
Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash	11,845	132,189	184,058	(443,706)

Key metrics

$3.47B

Market Cap

19.44x

P/E

4.14x

P/S

38.49x

EV/EBITDA

16.9%

Return on Equity

5.8%

Return on Invested Capital

2.20x

Current Ratio

28.2%

Free Cash Flow Margin

Quarterly trend

Quarter	Revenue	YoY growth	Operating margin	Operating income
Q1 2026	$229M	+16.5%	-3.5%	$-8M
Q4 2025	$223M	+14.5%	17.8%	$40M
Q3 2025	$215M	+15.3%	-3.5%	$-7M
Q2 2025	$205M	+17.5%	-4.2%	$-9M
Q1 2025	$196M	—	-5.3%	$-10M
Q4 2024	$195M	—	-12.2%	$-24M
Q3 2024	$187M	—	-20.8%	$-39M
Q2 2024	$174M	—	-25.1%	$-44M

Margins

85.0%

Gross margin

1.6%

Operating margin

21.9%

Net margin

Snapshot

Financial statements

Key metrics

Quarterly trend

Margins

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