Freshworks, Inc. Class A ( (FRSH) ) has released its Q2 earnings. Here is a breakdown of the information Freshworks, Inc. Class A presented to its investors.
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Freshworks, Inc., a provider of AI-powered service software, operates in the technology sector, focusing on enhancing customer and employee experiences through its innovative solutions. In its latest earnings report for the second quarter of 2025, Freshworks announced a robust financial performance, with a notable 18% increase in revenue year-over-year, reaching $204.7 million. The company also reported a significant improvement in its operating cash flow margin, which stood at 29%, and an adjusted free cash flow margin of 27%.
Key financial highlights from the quarter include a reduction in GAAP loss from operations to $8.7 million, down from $43.8 million in the same quarter of the previous year. Non-GAAP income from operations saw a substantial increase to $44.8 million, compared to $13.1 million in Q2 2024. Freshworks also reported a non-GAAP net income per share of $0.18, doubling from $0.08 in the prior year. The company maintained a strong cash position, with cash, cash equivalents, and marketable securities totaling $926.2 million.
Strategically, Freshworks continued to expand its customer base, welcoming new clients such as AEP Energy and Seagate Technology. The company launched the next generation of its Freddy Agentic AI Platform, including the Freddy AI Agent Studio, which simplifies the deployment of AI agents. Additionally, Freshworks announced a partnership with McLaren Racing, integrating its ITSM solution with the McLaren Formula 1 Team.
Looking ahead, Freshworks has raised its guidance for the full year 2025, expecting revenue growth between 14% and 16%. The company remains optimistic about its ability to sustain growth, driven by the increasing demand for its AI-powered solutions. Freshworks’ management is confident in its strategic direction and anticipates continued momentum in the coming quarters.