Beats revenue and profitability expectations
- Total revenues of $245.4 million, representing 14% year-over-year growth
- GAAP Net Income of $18.3 million
- Record Adjusted Free Cash Flow of $73.9 million, representing 29% year-over-year growth
- Record Adjusted Free Cash Flow of $73.9 million, representing 29% year-over-year growth
Chennai, India, 4th November, 2026: Freshworks Inc. (Nasdaq:FRSH), today announced financial results for its third quarter ended September 30, 2026.
“Our upmarket strategy delivered another strong quarter,” said Dennis Woodside, CEO & President of Freshworks. “We delivered a 30% non-GAAP operating margin and grew adjusted free cash flow by 29%. Our momentum upmarket accelerated, with new multi-product EX deals increasing over 35% and partners participating in more than half of our new business. Customers want a unified platform and single data model for service operations, and they are increasingly choosing Freshworks.”
Third Quarter 2026 Financial Summary Results
- Revenue: Total revenue was $245.4 million, representing growth of 14% compared to total revenue of $215.1 million in the third quarter of 2025, and 14% adjusting for constant currency.
- GAAP Income (Loss) from Operations: GAAP income (loss) from operations was $28.2 million, representing an operating margin of 11.5%, compared to $(7.5) million, representing an operating margin of (3.5) %, in the third quarter of 2025.
- Non-GAAP Income from Operations: Non-GAAP income from operations was $73.2 million, representing a non-GAAP operating margin of 29.8%, compared to $45.2 million, representing a non-GAAP operating margin of 21.0%, in the third quarter of 2025.
- GAAP Net Income (Loss) Per Share: GAAP diluted diluted net income (loss) per share was $0.07 based on 266.4 million weighted-average shares outstanding, compared to $(0.02) based on 286.2 million weighted-average shares outstanding in the third quarter of 2025.
- Non-GAAP Net Income Per Share: Non-GAAP diluted net income per share was $0.22 based on 266.4 million weighted-average shares outstanding, compared to $0.16 based on 288.3 million weighted-average shares outstanding in the third quarter of 2025.
- Net Cash Provided by Operating Activities: Net cash provided by operating activities was $77.7 million, representing an operating cash flow margin of 31.7%, compared to $63.5 million, representing an operating cash flow margin of 29.5%, in the third quarter of 2025.
- Adjusted Free Cash Flow: Adjusted free cash flow was $73.9 million, representing an adjusted free cash flow margin of 30.1%, compared to $57.2 million, representing an adjusted free cash flow margin of 26.6%, in the third quarter of 2025.
- Cash, Cash Equivalents, Restricted Cash and Marketable Securities: Cash, cash equivalents, restricted cash and marketable securities were $697.3 million as of September 30, 2026.
All financial numbers for 2026 include the results of our FireHydrant business. A description of non-GAAP financial measures is contained in the section titled “Explanation of Non-GAAP Financial Measures” below and a reconciliation of GAAP to non-GAAP financial measures is detailed in the tables below.
Third Quarter Metrics and Recent Business Highlights
- Number of customers contributing more than $100,000 in ARR was 1,821, an increase of 25% year-over-year and 26% adjusting for constant currency.
- Number of customers contributing more than $50,000 in ARR was 4,257, an increase of 18% year-over-year and 18% adjusting for constant currency.
- Number of customers contributing more than $5,000 in ARR was 25,498, an increase of 5% year-over-year and 5% adjusting for constant currency.
- Net dollar retention rate was 104%, compared to 104% in the second quarter of 2026 and 105% in the third quarter of 2025. Adjusted for constant currency, net dollar retention rate was 105%, compared to 105% in the second quarter of 2026 and 104% in the third quarter of 2025.
- Welcomed and onboarded many new customers to the Freshworks community including: Tata Technologies Limited, Texas Christian University, Unilabs (UK), and Jose Cuervo.
- Added to the S&P Small Cap 600 Index.
- Named as a Leader in the IDC MarketScape: Worldwide AI-Enabled IT Service Management Software 2026 Vendor Assessment (doc #US54115226, September 2026) for strengths in experience outcome features and growth expansion approach.
Financial Outlook
We are providing estimates for the fourth quarter and for the full year 2026. We emphasize that these estimates are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements” below.
For the fourth quarter and full year 2026, we currently expect the following results:
| ($ in millions, except per share data) | Third Quarter 2026 | Full Year 2026 |
| Revenue(1) | $253.5 – $254.5 | $965.0 – $966 |
| Year-over-year growth | ~14% | ~15% |
| Year-over-year growth(constant currency) | 14% – 15% | 14% – 15% |
| Non-GAAP income from operations(1) | $68.0 – $70.0 | $238.0 – $240.0 |
| Non-GAAP net income per share(2) | $0.21 | $0.71 |
(1) Revenue and and non-GAAP income from operations are based on exchange rates as of October 30, 2026 for currencies other than USD.
(2) Non-GAAP net income per share was estimated assuming 266.0 million and 272.3 million weighted-average shares outstanding for the fourth quarter and full year 2026, respectively.
These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
