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Dec 31, 2025
Freshworks Q4 2025 Earnings Report
Freshworks reported strong fourth quarter and full year 2025 results, exceeding guidance for revenue and non-GAAP operating margin, with significant growth in revenue and profitability.
Key Takeaways
Freshworks delivered an outstanding Q4 and fiscal 2025, outperforming estimates across growth and profitability metrics for the fifth consecutive quarter, driven by strong product momentum and AI-powered software. The company achieved 14% year-over-year revenue growth in Q4 2025 and crossed half a billion dollars in annual recurring revenue for its EX business.
Fourth quarter revenue reached $222.7 million, a 14% increase year-over-year, exceeding the high end of guidance.
Non-GAAP operating margin was 18.7% in Q4 2025, outperforming expectations.
The EX business surpassed $500 million in annual recurring revenue, demonstrating strong segment growth.
Net cash provided by operating activities was $62.3 million, representing a 28.0% operating cash flow margin.
Forward Guidance
Freshworks provided a positive outlook for the first quarter and full year 2026, expecting continued revenue growth and strong non-GAAP income from operations.
Positive Outlook
- Q1 2026 revenue is projected to be between $222.0 million and $225.0 million, indicating continued growth.
- Full year 2026 revenue is expected to be between $952.0 million and $960.0 million, representing 13.5% - 14.5% year-over-year growth.
- Non-GAAP income from operations for Q1 2026 is estimated to be $33.0 million to $35.0 million.
- Full year 2026 non-GAAP income from operations is projected to be $181.0 million to $189.0 million.
- Non-GAAP net income per share for Q1 2026 is expected to be $0.10 to $0.12, and $0.55 to $0.57 for the full year 2026.
Challenges Ahead
- The forward-looking statements are subject to various important cautionary factors and macroeconomic uncertainties.
- Actual results may differ materially from projections due to factors beyond the company's control.
Historical Earnings Impact
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