Freshworks (FRSH)
NASDAQ:FRSH
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Earnings Data
Report Date
Aug 04, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.13Last Year’s EPS
0.18Same Quarter Last Year
Moderate Buy
Based on 13 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial momentum driven by EX growth, AI adoption, margin expansion, free cash flow generation, and large enterprise wins, while acknowledging near‑term headwinds from CX replatforming, Device42 legacy churn, and a one‑time restructuring (11% headcount reduction and ~$8M charges). Management emphasized disciplined capital allocation (share repurchase) and a longer‑term focus on compounding adjusted free cash flow per share.Company Guidance
Revenue Beat and Growth
Q1 revenue of $228.6M, up 16% year-over-year as reported (14% constant currency), exceeding the high end of the company's estimates; Q2 revenue guide $232M–$235M (~13%–15% y/y).
Strong EX (Employee Experience) Momentum
EX ARR > $540M, grew 27% year-over-year as reported (25% constant currency); EX expected to grow in the mid‑twenties and to represent >60% of total ARR by year‑end; EX net dollar retention ~111% (109% cc).
Large Enterprise Wins
Signed the two largest deals in company history in Q1 (including first seven‑figure EX ARR deal); customers with >$100k ARR grew 29% y/y (26% cc) and represent ~39% of total ARR.
Profitability and Margins Above Expectations
Non‑GAAP operating margin of 18% (nearly 3 points above company estimate); non‑GAAP gross margin 80.3%; adjusted free cash flow margin of 24% in Q1.
Free Cash Flow and Capital Allocation
Generated $55.8M free cash flow in Q1 (24% margin); adjusted free cash flow per share $0.20, up 8% y/y; board authorized $400M share repurchase program and repurchased 5.7M shares for $45.4M in Q1.
AI Product Traction
Freddy AI Copilot customer growth exceeded 80% y/y; attach rate for new deals >$30k ARR >65%; EX AI penetration >20% (nearly doubled y/y); roughly one‑third of new EX customers had Copilot attached in Q1.
CX Replatforming Early Benefits
CX ARR > $395M, up 6% y/y (4% cc); over 80% of CX base migrated to Freshdesk Omni; ARPA for new Freshdesk Omni customers is 2.5x the prior platform for new customers.
Billings, Balance Sheet and Liquidity
Calculated billings $235M, up ~16% y/y (13.5% cc); ended quarter with ~$780M in cash and investments and ~318M fully diluted shares outstanding (down ~2% y/y).
Strategic M&A and Product Integrations
Completed acquisition of FireHydrant; launched cloud-native Device42 ITAM integration into Freshservice; integration of FireHydrant to be completed over 2026, expanding service ops and asset capabilities.
Forward Financial Targets
Full‑year adjusted free cash flow per share guidance of $0.94, up ~24% vs FY2025; company targets compounding adjusted free cash flow per share by at least 20% annually over next three years.
FRSH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
FRSH Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 05, 2026 | $9.19 | $8.89 | -3.26% |
Feb 10, 2026 | $8.73 | $7.30 | -16.38% |
Nov 05, 2025 | $11.06 | $10.85 | -1.90% |
Jul 29, 2025 | $13.91 | $13.57 | -2.44% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Freshworks (FRSH) report earnings?
Freshworks (FRSH) is schdueled to report earning on Aug 04, 2026, After Close (Confirmed).
What is Freshworks (FRSH) earnings time?
Freshworks (FRSH) earnings time is at Aug 04, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is FRSH EPS forecast?
FRSH EPS forecast for the fiscal quarter 2026 (Q2) is 0.13.