Freshworks Inc.
freshworks.comWhat Do They Do?
Sells software that helps businesses manage IT and employee services, customer support, and sales and marketing.
10-K for FY2025, filed Feb 26, 2026We provide people-first AI service software that organizations use to deliver exceptional employee and customer experiences. Our employee…View ↗
For IT and employee-facing teams, we offer our AI-powered EX family of products, including Freshservice, Freshservice for Business Teams…View ↗
For customer-facing teams, our AI-powered CX family of products are designed to streamline customer service, sales, and marketing…View ↗
How Do They Make Money?
Customers pay for cloud software access through monthly, annual, or multi-year subscriptions, invoiced in advance monthly or annually. Term licenses are sold when the software is made available, maintenance runs over the contract term, and service fees cover work as it is performed.
10-K for FY2025, filed Feb 26, 2026We generate revenue primarily from the sale of subscriptions for accessing our cloud-based software products over the contract term. We…View ↗
Subscription revenue is primarily comprised of fees paid by our customers for accessing our cloud-based software during the term of the…View ↗
Software license revenue is generally sold as bundled arrangements that include the rights to a software license and maintenance and…View ↗
Professional services revenue is comprised of fees charged for services ranging from product configuration, data migration, systems…View ↗
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10-K for FY2025, filed Feb 26, 2026
FY2025 revenue by product or service ↗
$838.8M
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10-K for FY2025, filed Feb 26, 2026
$838.8M ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
Subscription services, software licenses and maintenance
|
99%
FY2022: 97%
|
Subscription services, software licenses and maintenance, FY2025
$829.4M Sources
|
|
|
Professional services
Sold outright
|
1.1%
FY2022: 2.6%
|
Professional services, FY2025
$9.4M Sources
|
Sold outright |
Who Are Their Customers?
Businesses of all sizes buy Freshworks software, from individual users and small teams trying it through its website to larger companies served by sales teams. It sells subscriptions directly and through channel partners.
10-K for FY2025, filed Feb 26, 2026Small- and Mid-Sized Businesses (SMB) (organizations with 250 or fewer employees): We service our SMB customers through inbound and partner…View ↗
Inbound motion: Our inbound motion is the primary way we sell our CX solutions to organizations, regardless of the organization’s size or…View ↗
The foundation of our go-to-market strategy is a highly efficient inbound motion driven by PLG, as well as paid campaigns and search engine…View ↗
We sell subscriptions for our cloud-based solutions directly to customers and indirectly through channel partners through arrangements that…View ↗
Do Revenues Turn Into Profits?
Yes. It kept 22 cents of every revenue dollar as net income in FY2025 and turned 28 cents into free cash flow.
10-K for FY2025, filed Feb 26, 2026
$13.2MView ↗
10-K for FY2025, filed Feb 26, 2026
$183.7MView ↗
10-K for FY2025, filed Feb 26, 2026
$236.7MView ↗
How Are They Changing?
- Net income
-
Sources
10-Q for Q2 FY2026, filed Aug 4, 2026
$3.2MView ↗
- ▲ Now profitable
- vs −$1.7M in Q2 FY2025
10-Q for Q2 FY2026, filed Aug 4, 2026
Open tableView ↗
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Aug 4, 2026
Issued full-year revenue and earnings guidance
Forecast revenue of $963.5-$966.5 million for 2026.
Sources
8-K, filed Aug 4, 2026
($ in millions, except per share data) Third Quarter 2026 Full Year 2026 Revenue(1) $244.5 - $245.5 $963.5 - $966.5 Year-over-year growth…View ↗
Growing. Revenue grew 2.3x in 4 years, from $371M in FY2021 to $838.8M in FY2025, about 23% a year.
Who Do They Compete With?
Competes with ServiceNow, BMC, Ivanti, Atlassian, Salesforce, Zendesk, Intercom, Oracle, SAP, HubSpot, Microsoft Dynamics, and Sage
10-K for FY2025, filed Feb 26, 2026The markets in which we operate are highly competitive. A significant number of companies have developed or are developing products and…View ↗
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