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Sep 30, 2025
Freshworks Q3 2025 Earnings Report
Freshworks exceeded its Q3 2025 estimates across growth and profitability metrics, driven by strong demand for its AI-powered software solutions.
Key Takeaways
Freshworks reported a strong third quarter in 2025, surpassing its own estimates for both revenue and profitability. The company achieved $215.1 million in revenue, a 15% increase year-over-year, and significantly improved its non-GAAP operating margin to 21.0%. This performance was attributed to the growing adoption of its AI-integrated software, which is enhancing productivity for customers.
Total revenue reached $215.1 million, marking a 15% year-over-year growth.
Non-GAAP income from operations surged to $45.2 million, with a non-GAAP operating margin of 21.0%, up from 12.8% in Q3 2024.
Non-GAAP diluted net income per share increased to $0.16, compared to $0.11 in the prior year.
Adjusted free cash flow was $57.2 million, representing an adjusted free cash flow margin of 26.6%.
Forward Guidance
Freshworks is providing estimates for the fourth quarter and raising its full-year 2025 guidance, reflecting strong execution and current market conditions.
Positive Outlook
- Fourth quarter 2025 revenue is projected to be between $217.0 million and $220.0 million.
- Full year 2025 revenue guidance raised to $833.1 million - $836.1 million.
- Full year 2025 revenue growth expected to be 16%.
- Non-GAAP income from operations for Q4 2025 is estimated at $30.6 million - $32.6 million.
- Non-GAAP net income per share for Q4 2025 is projected to be $0.10 - $0.12.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the report.
- Estimates are subject to various important cautionary factors.
- Uncertainty and potential variability of future expenses for non-GAAP reconciliation.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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