Freshworks Reports Impressive Growth in Q2 CY26

Freshworks has proudly announced a remarkable 16% year-on-year revenue growth, reaching $237.4 million for the second quarter ending June 2026. Additionally, the company achieved its first GAAP profitability of the year, reporting a net profit of $3.2 million for Q2 CY26, contrasting with a net loss of $1.7 million during the same period last year.

Operational Highlights

Freshworks documented an operating income of $6.1 million, a significant improvement from the operating loss of $8.7 million reported the previous year. The filings indicate that the non-GAAP operating income surged to $55.9 million, translating into a noteworthy operating margin of 23.6%, an increase from 21.9% in the corresponding quarter last year.

Cost Analysis

In terms of expenses, Freshworks saw an increase in its sales and marketing costs, which rose nearly 12% to $106.5 million, up from $95.2 million in Q2 CY25. Research and development expenses also climbed to $43.8 million from $39.9 million. Meanwhile, general and administrative expenses experienced a decline to $37.9 million from $47 million, although the company did incur $7 million in restructuring charges during the quarter.

Financial Overview

The total operating expenses increased to $195.2 million, compared to $182.2 million the previous year. During this quarter, Freshworks generated an operating cash flow of $58.5 million and an adjusted free cash flow of $57.7 million. As of June 30, 2026, the company reported cash and cash equivalents, restricted cash, and marketable securities amounting to $665.3 million.

Customer Growth

Freshworks has also made significant strides in expanding its enterprise customer base. The number of clients contributing over $100,000 in annual recurring revenue (ARR) has grown by 25% year-on-year, now standing at 1,746. Additionally, customers contributing more than $50,000 in ARR rose by 18% to 4,091, with a net dollar retention rate of 104%.

Updated Financial Guidance

Looking ahead, Freshworks has raised its full-year revenue guidance, now estimating CY26 revenue to be between $963.5 million and $966.5 million. The forecast for non-GAAP operating income is projected to be between $222 million and $228 million.