Freshworks Inc. announced financial results for Q2 2025, with revenue reaching $204.7 million, a growth of 18% from the previous year. GAAP (loss) from operations was $(8.7) million, a significant improvement from $(43.8) million in Q2 2024. Non-GAAP income from operations was $44.8 million, up from $13.1 million in the same period last year.

Key metrics include 23,975 customers contributing over $5,000 in ARR, a 10% increase YoY. Net dollar retention rate was 106%. Freshworks welcomed new customers like AEP Energy and Covington & Burling LLP. The company also launched new products and services, such as Freshservice Journeys and the Freddy Agentic AI Platform.

Freshworks provided estimates for Q3 and full year 2025. Revenue is expected to be $207.0 – $210.0 million for Q3 and $822.9 – $828.9 million for the full year, with a growth rate of 11% – 12% and 14% – 15% respectively. Non-GAAP net income per share is projected to be $0.12 – $0.14 for Q3 and $0.56 – $0.58 for the full year.

The company uses non-GAAP financial measures to assess performance, including adjusted free cash flow and net dollar retention rate. These measures provide investors with consistency and comparability with past performance. Freshworks excludes items like stock-based compensation and amortization of acquired intangibles from non-GAAP measures to better evaluate operating performance.

Freshworks’ financial outlook is subject to market conditions and expectations. The company cautions that actual results may differ from forward-looking statements due to factors beyond its control. Investors are advised to refer to the “Risk Factors” section in Freshworks’ filings with the Securities and Exchange Commission for more information on potential risks.

Read more at GlobeNewswire: Freshworks Reports Second Quarter 2025 Results