Freshworks Reports 16% Growth in Q1 CY26 Revenue

Freshworks, the NASDAQ-listed SaaS company, has announced a 16% increase in its year-on-year revenue for the first quarter of calendar year 2026 (Q1 CY26), reaching $228.6 million. This is an increase from $196.3 million during the same time last year. When comparing quarter-on-quarter, the revenue saw a slight rise of around 2%, up from $223 million in the fourth quarter of calendar year 2025 (Q4 CY25).

Operating Performance and Financial Details

According to the recent filing, Freshworks has consistently enhanced its operating performance in this period. The non-GAAP operating income for the company was reported at $41 million with a margin of 17.9%. However, net losses in Q1 CY26 were recorded at $4.8 million, compared to a loss of $1.3 million in the first quarter of the previous year.

Key Financial Metrics

In terms of earnings, Freshworks posted a non-GAAP net income per share of $0.11 in Q1 CY26, which is a decrease from $0.18 noted in the same quarter last year. The operating cash flow generated by the company during this quarter totalled $62.4 million.

Growth Drivers

The growth experienced in this quarter was primarily driven by continued demand for its employee experience (EX) products, along with an increasing uptake of AI-driven features, such as Copilot functionalities, across its platforms.

Workforce Restructuring

During this period, Freshworks also declared a workforce reduction, decreasing its employee count by approximately 500 individuals, which represents nearly 11% of its overall workforce. This restructuring effort is intended to enhance efficiency and align operations with the growing implementation of artificial intelligence.

Future Expectations

Freshworks anticipates incurring a one-off restructuring expense of approximately $8 million, the majority of which will be reflected in the second quarter of 2026. The company forecasts its revenue for Q2 CY26 to fall within the range of $232 million to $235 million.