Freshworks Inc. reported its financial results for the third quarter of 2025, revealing a revenue of $215.1 million, a 15% increase from $186.6 million in the same period last year. For the nine months ending September 30, 2025, the company generated $616.1 million in revenue, up 17% from $525.8 million in the prior year. Despite this growth, Freshworks recorded a net loss of $4.7 million for the quarter, a significant improvement compared to a net loss of $30.0 million in Q3 2024. The nine-month net loss also decreased to $7.7 million from $73.5 million year-over-year.

The company’s operating expenses for the third quarter decreased by 3% to $189.6 million, down from $195.6 million in the previous year. This reduction was primarily attributed to lower personnel-related costs following a restructuring initiative. Research and development expenses fell by 13% to $41.5 million, while sales and marketing expenses remained relatively stable at $101.0 million. The gross profit margin improved slightly to 85%, up from 84% in the same quarter last year, reflecting the benefits of economies of scale.

Freshworks continues to expand its customer base, with 24,377 customers contributing more than $5,000 in annual recurring revenue (ARR), a 9% increase from 22,359 in the previous year. The company reported a net dollar retention rate of 105%, down from 107% a year earlier, indicating some challenges in upselling to existing customers amid macroeconomic pressures. The company’s total cash and cash equivalents stood at $420.9 million, alongside $392.3 million in marketable securities, providing a solid liquidity position.

Strategically, Freshworks completed a share repurchase program, buying back 26.9 million shares for approximately $384.5 million, which was part of a broader initiative to enhance shareholder value. The company also continues to invest in its product offerings, including the recent launch of generative AI solutions aimed at improving customer and employee experiences. Looking ahead, Freshworks anticipates ongoing challenges from macroeconomic conditions but remains focused on leveraging its subscription-based model to drive future growth.

About Freshworks Inc.

Freshworks Inc. provides cloud-based, AI-driven customer and employee experience software. Its product suite includes solutions for customer support, sales, marketing, IT service management, and workforce automation. Serving businesses of all sizes globally, Freshworks emphasizes ease of use, rapid deployment, and scalable, integrated platforms. Its business model relies on subscription revenue, product-led growth, and a strong partner ecosystem to deliver innovative, cost-effective digital transformation tools.

This description was generated via AI from an annual report. Updated 9 months ago.

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