Live Nasdaq Composite: Markets Take Breather After Impressive Q2 Showing on Easing Oil Outlook
Q1 25 EPS
$0.18
BEAT +39.32%
Est. $0.13
Q1 25 Revenue
$196.3M
BEAT +2.28%
Est. $191.9M
vs S&P Since Q1 25
-69.6%
TRAILING MARKET
FRSH -35.8% vs S&P +33.8%
Market Reaction
Did FRSH Beat Earnings? Q1 2025 Results
Freshworks kicked off 2025 with a notably strong quarter, posting first-quarter revenue of $196.27 million, up 18.9% year over year and ahead of the $191.90 million consensus estimate, while earnings per share of $0.18 beat the $0.13 consensus by 39.… Read more Freshworks kicked off 2025 with a notably strong quarter, posting first-quarter revenue of $196.27 million, up 18.9% year over year and ahead of the $191.90 million consensus estimate, while earnings per share of $0.18 beat the $0.13 consensus by 39.32%, underscoring a meaningful profitability shift in the business. The primary driver behind the margin expansion was a dramatic improvement in operating efficiency, with non-GAAP operating income more than doubling to $46.37 million from $21.76 million a year ago, pushing non-GAAP operating margin to 23.6% from 13.2%. GAAP net loss narrowed to a near-breakeven $1.30 million, compared to a $23.32 million loss in Q1 2024, as the company also generated $57.97 million in operating cash flow. Freshworks further returned $113.61 million to shareholders through share repurchases during the quarter. The company's AI-driven service management portfolio, which recently expanded with the acquisition of FireHydrant, continued to attract enterprise customers, with ARR contributors above $5,000 growing 13% year over year to 23,275. Looking ahead, Freshworks guided Q2 revenue of $197.30 million to $200.30 million and full-year revenue of $815.30 million to $824.30 million, reflecting 13% to 14% growth, a moderation from Q1's pace that investors will likely monitor closely.
Key Takeaways
- • Revenue grew 19% year-over-year to $196.3 million
- • Non-GAAP operating margin expanded to 23.6% from 13.2% year-over-year
- • Operating cash flow margin of 29.5% and adjusted free cash flow margin of 28.2%
- • Customers contributing more than $5,000 in ARR grew 13% YoY to 23,275
- • Net dollar retention rate of 105%
FRSH YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
“Freshworks had another fantastic quarter, outperforming our previously provided financial estimates in Q1 with revenue growing 19% year-over-year to $196.3 million, operating cash flow margin of 30% and adjusted free cash flow margin of 28%. We continue to outperform because businesses are choosing Freshworks for our uncomplicated customer and employee service solutions.”
— Dennis Woodside, Q1 2025 Earnings Press Release
FRSH Earnings Trends
FRSH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
FRSH EPS Trend
Earnings per share: estimate vs actual
FRSH Revenue Trend
Quarterly revenue: estimate vs actual
FRSH Quarterly Results
12 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.11 | $0.11 | -2.14% | $228.6M | +2.44% |
| Q4 25 BEAT FY | $0.11 | $0.14 | +23.78% | $222.7M | +1.82% |
| FY Full Year | — | $0.66 | — | $838.8M | — |
| Q3 25 BEAT | $0.13 | $0.16 | +25.49% | $215.1M | +3.02% |
| Q2 25 BEAT | $0.12 | $0.18 | +55.84% | $204.7M | +2.89% |
| Q1 25 BEAT | $0.13 | $0.18 | +39.32% | $196.3M | +2.28% |
| Q4 24 BEAT FY | $0.12 | $0.14 | +16.86% | $194.6M | +1.19% |
| FY Full Year | — | $0.43 | — | $720.4M | — |
| Q3 24 BEAT | $0.08 | $0.11 | +37.50% | $186.6M | +0.00% |
| Q2 24 BEAT | $0.06 | $0.08 | +33.33% | $174.1M | +3.03% |
| Q1 24 BEAT | $0.08 | $0.10 | +25.00% | $165.1M | +0.00% |
| Q4 23 BEAT FY | $0.05 | $0.08 | +60.00% | $160.1M | +1.02% |
| FY Full Year | — | $0.26 | — | $596.4M | — |
| Q3 23 BEAT | $0.05 | $0.08 | +60.00% | $153.6M | +1.89% |
| Q1 23 BEAT | $-0.02 | $0.03 | +250.00% | $137.7M | +2.56% |