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Q3 25 EPS
$0.16
BEAT +25.49%
Est. $0.13
Q3 25 Revenue
$215.1M
BEAT +3.02%
Est. $208.8M
vs S&P Since Q3 25
-24.1%
TRAILING MARKET
FRSH -13.4% vs S&P +10.7%
Market Reaction
Did FRSH Beat Earnings? Q3 2025 Results
Freshworks posted a standout third quarter, beating Wall Street on both top and bottom lines as the cloud software company extended its consensus EPS beat streak to four consecutive quarters. The company reported earnings of $0.16 per share against a… Read more Freshworks posted a standout third quarter, beating Wall Street on both top and bottom lines as the cloud software company extended its consensus EPS beat streak to four consecutive quarters. The company reported earnings of $0.16 per share against a consensus estimate of $0.13, a 25.49% beat, while revenue of $215.12 million edged past the $208.80 million estimate by 3.02% and marked 15.3% growth year-over-year. The primary engine behind the profitability surge was a sharp improvement in operating leverage; non-GAAP operating income nearly doubled to $45.18 million, expanding non-GAAP operating margin to 21.0% from 12.8% a year ago, driven in part by a meaningful reduction in stock-based compensation. AI momentum added to the narrative, with Freddy AI products doubling in annual recurring revenue year-over-year. Adding a note of conviction to the results, CEO Dennis Woodside purchased roughly $1.99 million in company shares shortly after the report. Looking ahead, Freshworks raised its full-year 2025 revenue guidance to $833.10 million to $836.10 million, implying 16% growth, with non-GAAP EPS of $0.62 to $0.64.
Key Takeaways
- • 15% revenue growth year-over-year driven by customer expansion and AI adoption
- • Non-GAAP operating margin expanded to 21.0% from 12.8% year-over-year
- • Operating cash flow margin expanded to 29.5% from 22.7% year-over-year
- • Stock-based compensation expense declined to $48.5 million from $58.7 million year-over-year
- • ESM annual recurring revenue surpassed $35 million in Q3 2025
FRSH YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
“Freshworks once again exceeded our previously issued estimates across growth and profitability metrics. Business leaders are realizing that AI belongs in the software their teams use every day. They choose Freshworks because our unified platform delivers real productivity gains, not more complexity strains. From intelligent automation across IT and HR to proactive AI-assisted customer support, Freshworks is helping businesses turn intelligence into impact, creating meaningful value for customers, employees, and shareholders.”
— Dennis Woodside, Q3 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% |