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Freshworks Q3 revenue up 15% to $215 million, company raises full-year guidance

The firm's GAAP loss from operations narrowed to $7.5 million in Q3 from $38.9 million a year ago.

November 06, 2025 / 09:46 IST
Freshworks

Nasdaq-listed Freshworks reported a 15% year-on-year rise in revenue to $215.1 million for the quarter ended September 30, 2025, compared with $186.6 million in the same period last year. The company’s revenue also grew about 2% sequentially from $210.2 million in the second quarter on the back of on the back of improved operating performance.

“Freshworks once again exceeded our previously issued estimates across growth and profitability metrics," said Dennis Woodside, Chief Executive Officer & President of Freshworks.

GAAP loss from operations narrowed to $7.5 million in Q3 from $38.9 million a year ago. On a non-GAAP basis, income from operations rose to $45.2 million, up from $24 million in the year-ago quarter and higher than $40.6 million reported in Q2 2025.

GAAP net loss per share improved to $0.02 from $0.10 in Q3 2024. Non-GAAP diluted net income per share stood at $0.16, compared with $0.11 a year earlier and $0.14 in the previous quarter.

Operating cash flow increased to $63.5 million, up from $42.3 million a year ago and $61.7 million in Q2. Adjusted free cash flow rose to $57.2 million from $40.1 million in Q3 2024 and $54.8 million in the previous quarter.

The company’s cash, cash equivalents, and marketable securities stood at $813.2 million as of September 30, 2025.

Freshworks reported 24,377 customers contributing more than $5,000 in annual recurring revenue (ARR), a 9% increase year-on-year. Its net dollar retention rate was 105%, slightly lower than 106% in Q2 2025 and 107% in Q3 2024.

For the fourth quarter, Freshworks expects revenue between $217 million and $220 million and non-GAAP income from operations in the range of $30.6 million to $32.6 million. For the full year, it raised its revenue guidance to between $833.1 million and $836.1 million, representing 16% annual growth.

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Moneycontrol News
first published: Nov 6, 2025 09:46 am

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