Freshworks has reported remarkable results for the third quarter of 2025. This prominent SaaS company, which originated in Chennai and is now based in San Mateo, achieved revenue of $215 million, marking a 15% increase compared to $186.6 million in Q3 2024. When compared to the previous quarter, there was a modest increase of 5%, up from $204.7 million in Q2 CY25, as detailed in their regulatory disclosures with NASDAQ.
According to these filings, the GAAP loss from operations dramatically decreased by 80.7% to $7.5 million, down from $38.9 million the prior year. On a non-GAAP basis, operations income surged to $45.2 million, equivalent to a margin of 21%, compared to 12.8% from the same quarter last year.
As reported by the company, there was a 9% year-on-year growth in the number of customers contributing over $5,000 in annual recurring revenue (ARR), bringing the total to 24,377. The net dollar retention rate stood at an impressive 105%.
For the upcoming fourth quarter, Freshworks anticipates revenue between $217 million and $220 million, which translates to a projected year-on-year growth of 12–13%. Furthermore, the company has adjusted its full-year FY25 guidance to between $833 million and $836 million, indicating a 16% annual growth rate.
CEO Dennis Woodside remarked that Freshworks consistently surpassed expectations in terms of both growth and profitability metrics, while also highlighting that the demand for AI-driven software continues to propel platform adoption among enterprises.
As of September 30, 2025, Freshworks had cash, cash equivalents, and marketable securities amounting to $813.2 million. With ongoing margin growth, robust cash flows, and renewed optimism for FY25, Freshworks seems to be striking a commendable balance between growth and profitability, standing out among many mid-tier SaaS competitors.
