Archive · 6 Nov 2025
Freshworks Reports Strong Q3, Narrows Loss and Raises Revenue Guidance
Freshworks, a company that helps businesses with their customer service and other software needs, shared its financial results for the third part of the year.
They earned 15% more money than last year, making $215.1 million.
They also lost much less money, with their operational loss shrinking to $7.5 million from $38.9 million.
Because of this good performance, they are now expecting to earn more money for the whole year than they originally thought, and this is the third time they've increased their prediction!
The number of customers who pay them more than $5,000 a year also went up.
Freshworks has a lot of cash saved up, over $813 million.
They are forecasting their total yearly earnings to be between $833.1 million and $836.1 million.
Freshworks reported a 15% year-on-year increase in revenue to $215.1 million for the quarter ended September 2025.
The company's GAAP loss from operations narrowed significantly to $7.5 million from $38.9 million year-on-year.
Operating margin improved to -3.5% from -20.8% in the same quarter last year.
Freshworks raised its full-year revenue guidance for the third consecutive time, now forecasting $833.1 million to $836.1 million (16% annual growth).
The number of customers contributing over $5,000 in annual recurring revenue increased 9% year-on-year to 24,377.
- Who
- Freshworks
- What
- Reported Q3 financial results, showing a 15% year-on-year revenue increase, narrowed operating loss, and raised full-year revenue guidance.
- When
- For the quarter ended September 2025 (reported on Thursday)
- Where
- Nasdaq-listed (company operations are global, but the listing is relevant)
- Why
- Driven by strong performance exceeding previous estimates and an increase in customers contributing over $5,000 in annual recurring revenue.
Analyst Perspective
Company Performance
Financial Performance
Analyst Perspective
While positive, analysts will closely watch if the trend of narrowing losses and increasing revenue is sustainable amidst market competition.
Company Performance
Freshworks exceeded estimates with a 15% YoY revenue increase, significantly narrowed operating loss, improved operating margin, and raised full-year revenue guidance for the third time.
- Q3 Revenue
- $215.1 million
- Q3 Revenue Growth (YoY)
- 15%
- Q3 GAAP Loss from Operations
- $7.5 million
- Q3 Operating Margin
- -3.5%
- Customers with >$5,000 ARR
- 24,377
- Customers with >$5,000 ARR Growth (YoY)
- 9%
- Full-Year Revenue Forecast
- $833.1 million - $836.1 million
- Full-Year Revenue Growth Forecast
- 16%
- Cash, Cash Equivalents, Marketable Securities (as of Sep 30, 2025)
- $813.2 million
