11 Feb , 2026 By : Debdeep Gupta
Nasdaq-listed Software firm Freshworks Inc. reported a 16% year-on-year rise in revenue to $838.8 million for the full year ended December 31, 2025, as growing adoption of its AI-powered software helped drive customer expansion and margin improvement.
In the fourth quarter, revenue rose 14% to $222.7 million from $194.6 million a year earlier, or 13% on a constant currency basis. The company swung to GAAP operating income of $39.7 million in Q4, compared with a loss of $23.8 million last year, with operating margin expanding to 17.8%.
“Freshworks had an outstanding Q4 and fiscal 2025, outperforming our estimates across growth and profitability metrics for the fifth consecutive quarter,” said Dennis Woodside, Chief Executive Officer & President of Freshworks, adding that AI-powered offerings continued to be a key growth driver.
Non-GAAP operating income for Q4 stood at $41.6 million, compared with $40.3 million a year ago. GAAP diluted net income per share was $0.67 versus a loss of $0.07 in Q4 2024, while non-GAAP EPS was unchanged at $0.14.
For the full year, GAAP operating income turned positive at $13.2 million compared with a loss of $138.6 million in 2024. Non-GAAP operating income rose to $178 million from $99.1 million. Operating cash flow for FY25 increased to $242.4 million, with adjusted free cash flow at $223.1 million.
GAAP (Generally Accepted Accounting Principles) refers to standardised accounting rules that companies must follow for financial reporting, while non-GAAP metrics exclude certain items such as stock-based compensation, acquisition-related costs, or one-time expenses to provide what companies describe as a clearer view of underlying operating performance.
The company expects 2026 revenue between $952 million and $960 million, indicating continued AI-led growth momentum.
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