Freshworks Inc. (FRSH)

Freshworks reported second-quarter 2026 revenue of $237.4 million, up 16 percent from a year earlier 4.

The quarter was its first of profit under standard accounting rules in 2026, with net income of $3.2 million 4.

In May 2026 it announced a restructuring plan, with $7.0 million of charges, mostly severance, to streamline its teams and use more AI and automation 3.

Net dollar retention, which tracks how much more existing customers spend year over year, slipped to 104 percent from 106 percent, mainly because of currency swings 2.

The company expects full-year 2026 revenue of $963.5 million to $966.5 million, about 15 percent growth 4.

Revenue grew from $596.4 million in 2023 to $720.4 million in 2024 and $838.8 million in 2025 1.

The company lost money on operations in 2023 and 2024, with operating losses of $170.2 million and $138.6 million 1. In 2025 it reported operating income of $13.2 million 1.

In June 2024 it bought all the shares of D42 Parent, Inc., an IT asset management company, for about $238.1 million, mostly in cash 1.

In November 2024 it started a restructuring plan, with severance charges of $9.7 million in 2024 and $0.4 million in 2025 1.

In November 2024 the board also approved buying back up to $400 million of Class A stock 1. The company bought 26,895,424 shares for $384.5 million in 2025 and completed the program in August 2025 1.

Net income in 2025 was $183.7 million, against a net loss of $95.4 million in 2024 1. A tax item helped: the company released a $151.7 million valuation allowance, a reserve against future tax savings 1.

Revenue growth slowed from 21 percent in 2024 to 16 percent in 2025, as the company reported 1.

What it sells

Freshworks sells subscription software in two families: employee experience products, and customer experience products built around Freshdesk 1.

Freshservice is its unified IT and enterprise service management platform, with automation and AI-driven insights 1. Freshdesk Omni brings every customer support channel into one workspace 1.

Nearly 75,000 companies use its products, in about 170 countries 1.

Almost all revenue is subscriptions, licenses and maintenance: $829.4 million of $838.8 million in 2025, with professional services at $9.4 million 1.

Customers and regions

In 2025, 46 percent of revenue came from North America, 39 percent from Europe, the Middle East and Africa, and 15 percent from the rest of the world 1.

At June 30, 2026, 25,356 customers each contributed more than $5,000 a year in recurring revenue, up 6 percent 2. The release counts 1,746 above $100,000, up 25 percent 4.

About 29 percent of second-quarter 2026 revenue was exposed to the euro and British pound, so currency moves matter 2.

Rivals

For IT service software it names ServiceNow, BMC, Ivanti and Atlassian as rivals 1. For customer service it names Salesforce, Zendesk and Intercom 1.

People and places

It had about 4,500 full-time employees at the end of 2025, most of them in India 1.

Dennis Woodside is chief executive and president, and Tyler Sloat is chief operating officer and chief financial officer 2. The August release names Ryan Manning chief product and technology officer 4.

The San Mateo headquarters is leased, more than 55,000 square feet, and the company owns no real property 1.

Current problems

A $4.2 million unrealized exchange loss hit the second quarter, mostly from the Indian rupee against the U.S. dollar 2. The accumulated deficit, past losses added up, was $3.6 billion 2.

The umbrella, in words

Freshworks owns D42 Parent, Inc., which sells Device42, bought in June 2024, and FireHydrant, Inc., an incident management software provider bought in January 2026 12.

Its other brands include Freshchat for messaging, Freshcaller for voice calls and the Freddy AI assistants 1.

Class B stock has 10 votes a share and Class A has one 1. Directors, executive officers and holders of more than 5 percent held about 71.1 percent of the voting power at the end of 2025 1.

Its former executive chairman, Rathnagirish Mathrubootham, controlled about 18.3 percent of the voting power 1.

The company expects third-quarter 2026 revenue of $244.5 million to $245.5 million and full-year revenue of $963.5 million to $966.5 million 4.

It also expects full-year non-GAAP operating income of $222.0 million to $228.0 million 4. Non-GAAP leaves out items such as stock-based pay 2.

The company says the restructuring plan is substantially complete and expects no more material charges 3.

Under the buyback approved in February 2026, up to $400.0 million of Class A stock, $195.5 million remained available at June 30, 2026 2.

It says it intends to keep investing in product, outbound sales and partners, and to add languages and countries 1.

No clue on file points to a new direction yet.