Live Nasdaq Composite: Markets Take Breather After Impressive Q2 Showing on Easing Oil Outlook
Q2 25 EPS
$0.18
BEAT +55.84%
Est. $0.12
Q2 25 Revenue
$204.7M
BEAT +2.89%
Est. $198.9M
vs S&P Since Q2 25
-45.6%
TRAILING MARKET
FRSH -28.6% vs S&P +17.0%
Market Reaction
Did FRSH Beat Earnings? Q2 2025 Results
Freshworks posted a decidedly strong second quarter, with the cloud software maker beating Wall Street on both the top and bottom lines as accelerating profitability and growing AI traction defined the period. Revenue climbed 17.5% year over year to … Read more Freshworks posted a decidedly strong second quarter, with the cloud software maker beating Wall Street on both the top and bottom lines as accelerating profitability and growing AI traction defined the period. Revenue climbed 17.5% year over year to $204.68 million, edging past the $198.94 million consensus, while non-GAAP diluted EPS of $0.18 cleared the $0.12 estimate by 55.84%, powered by a dramatic expansion in operating leverage that saw non-GAAP operating income more than triple to $44.83 million and non-GAAP operating margin widen to 21.9% from 7.5% a year earlier. A key driver of the narrative was AI monetization, with Freshworks reporting that its Freddy AI Copilot and Freddy AI Agent products crossed $20 million in combined ARR, underscoring meaningful commercial traction for its autonomous agent strategy. Free cash flow of $54.26 million and $926.20 million in total liquidity reinforced the financial foundation. Encouraged by the momentum, management raised full-year 2025 revenue guidance to $822.90 to $828.90 million, representing 14% to 15% growth, with non-GAAP EPS now expected at $0.56 to $0.58.
Key Takeaways
- • 18% year-over-year revenue growth driven by demand for AI-powered service solutions
- • Freddy AI Copilot and Freddy AI Agent products crossed $20M in combined ARR
- • Net dollar retention rate of 106%
- • Customers contributing more than $5,000 in ARR grew 10% YoY to 23,975
- • Significant operating leverage with non-GAAP operating margin expanding to 21.9% from 7.5%
- • Operating cash flow margin of 28.6% and adjusted free cash flow margin of 26.5%
FRSH YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
“Freshworks delivered another strong quarter, exceeding our previously provided financial estimates in Q2 with 18% year-over-year revenue growth to $204.7 million, a 29% operating cash flow margin, and 27% adjusted free cash flow margin.”
— Dennis Woodside, Q2 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% |