Freshworks Inc., a software development company, provides software-as-a-service products in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. ...
Freshworks Inc. (NASDAQ: FRSH) is a leading provider of AI-first, cloud-based software-as-a-service (SaaS) products designed to enhance customer and employee experiences. Founded in 2010 in Chennai, India, by Girish Mathrubootham, the company was originally known as Freshdesk Inc. and rebranded to Freshworks in June 2017. It is headquartered in San ...Freshworks Inc. (NASDAQ: FRSH) is a leading provider of AI-first, cloud-based software-as-a-service (SaaS) products designed to enhance customer and employee experiences. Founded in 2010 in Chennai, India, by Girish Mathrubootham, the company was originally known as Freshdesk Inc. and rebranded to Freshworks in June 2017. It is headquartered in San Mateo, California, with operations globally. Freshworks serves businesses of all sizes, from startups to large enterprises, offering a suite of solutions under two main categories: Customer Experience (CX) and Employee Experience (EX). Its CX products include Freshdesk Omni, an AI-powered omnichannel customer service platform; Freshdesk for ticketing; Freshchat for conversational messaging; Freshcaller for cloud-based voice solutions; Freshsales for sales CRM; and Freshmarketer for marketing automation. Its EX products include Freshservice for IT and enterprise service management, Freshservice for Business Teams, Device42 for IT discovery and dependency mapping, and FireHydrant for incident management. The Freshworks platform integrates these products, providing a unified, AI-powered foundation. The company has a strong financial profile, with a market cap of approximately $3.27 billion as of recent data, a gross profit margin of 85%, and a net profit margin of 20.5% (TTM). It employs around 4,500 people across 13 locations. In 2022, Dennis Woodside became President and later CEO, with founder Girish Mathrubootham transitioning to Executive Chairman. Freshworks went public on NASDAQ in September 2021. The company focuses on simplifying enterprise software, making it fast to deploy, intuitive to use, and affordable. Its vision is to help businesses deliver exceptional experiences to their customers and employees, driving growth and innovation.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$838.8M
+16.4%
+3.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$183.7M
+292.6%
+167.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+85.0%
+0.8%
-0.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+1.6%
+108.4%
+172.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+21.9%
+265.5%
+164.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$245.2M
+68.0%
-8.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+29.2%
+44.3%
-11.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
4.1%
+22.3%
-25.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.20x
-29.0%
-12.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello everyone, thank you for joining us and welcome to Freshworks Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Kate Scolnick, VP of Investor Relations. Kate, please go ahead.
Kate Scolnick: Thank you. Good afternoon, and welcome to Freshworks Second Quarter 2026 Earnings Conference Call. Joining me today are Dennis Woodside, Freshworks' Chief Executive Officer and President; and Tyler Sloat, Freshworks' Chief Operating Officer and Chief Financial Officer. The primary purpose of today's call is to provide you with the information regarding our second quarter 2026 performance and our financial outlook for our third quarter and full year 2026. Some of our discussion and responses to your questions may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our management's beliefs about our business and industry, including our financial expectations and estimates, uncertainties in the macroconomic environment in which we operate and market volatility, and certain other assumptions made by the company, all of which are subject to change. These statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those projected in the forward-looking statements. Such risks include, but are not limited to, our ability to sustain growth, to innovate, to reach our long-term revenue goals to meet customer demand and to control costs and improve operating efficiency. For a discussion of additional material risks and other important factors that could affect our results, please refer to today's earnings release, our most recently filed Form 10-K, and other periodic filings with the SEC. Freshworks assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this call, except as required by law. During the course of today's call, we will refer to certain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP financial measures for historical periods are included in our earnings release, which is available on our Investor Relations website at ir.freshworks.com. I encourage you to visit our Investor Relations site to access our earnings release, supplemental earnings slides, periodic SEC reports and a replay of today's call to learn more about Freshworks. I will now turn the call over to Dennis. Please go ahead.
Dennis Woodside: Good afternoon, everyone, and thank you for joining us. Freshworks is the AI-powered unified service operations platform for the modern agile enterprise. In Q2, we delivered another quarter of strong growth and profitability. Revenue was $237.4 million, up 16% year-over-year. Our non-GAAP operating margin was 24%. We have now achieved Rule of 40 for 8 straight quarters. We are growing our business with discipline …