Companies /Technology

Freshworks Inc Class A

NASDAQ: FRSH Software - Application
$13.53
▼ $0.40 (−2.84%) today
Markets open · 2:35pm ET

Q3 2025 Earnings

Reported Nov 5, 2025, 4:17pm ET · SEC source
$0.16
Beat +25.49%
EPS · est. $0.13
$215.1M
Beat +3.02%
Revenue · est. $208.8M
+18.4%
Beating market
FRSH vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0+3%Nov 5Nov 6report 4:17pm ETearnings−0.9%−5.6%
−6%−3%0+3%Nov 5Nov 6earnings−0.9%−5.6%
FRSH −5.6%S&P 500 −0.9%
−6%−3%0+3%Nov 5Nov 6report 4:17pm ETearnings−1.7%−5.6%
−6%−3%0+3%Nov 5Nov 6earnings−1.7%−5.6%
FRSH −5.6%NASDAQ −1.7%
−4%0+4%Nov 4Nov 13report 4:17pm ETearnings−0.9%+3.9%
−4%0+4%Nov 4Nov 13earnings−0.9%+3.9%
FRSH +3.9%S&P 500 −0.9%
−4%0+4%Nov 4Nov 13report 4:17pm ETearnings−2.4%+3.9%
−4%0+4%Nov 4Nov 13earnings−2.4%+3.9%
FRSH +3.9%NASDAQ −2.4%
−1.90%
Day of report
+3.13%
Next session
+9.77%
One week
+20.28%
30 days

S&P 500 over the same 30 days: +1.90%.

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 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

“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.”

Freshworks CEO, on the earnings call

Forward Guidance & Outlook

Freshworks raised its full-year 2025 guidance. For Q4 2025, the company expects revenue of $217.0–$220.0 million (12%–13% YoY growth, 11%–13% on constant currency), non-GAAP operating income of $30.6–$32.6 million, and non-GAAP EPS of $0.10–$0.12. For full-year 2025, the company expects revenue of $833.1–$836.1 million (16% growth, 16% constant currency), non-GAAP operating income of $167.0–$169.0 million, and non-GAAP EPS of $0.62–$0.64.

FRSH YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$70.0M$140.0M$210.0M$186.6M$215.1MRevenue$156.8M$182.2MGross Profit$-4,124,219$-7,457,000Operating Income$-2,538,236$-4,680,000Net Income
$0$70.0M$140.0M$210.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.