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Freshworks (FRSH)
NASDAQ:FRSH
Earnings Data
Report Date
May 05, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.11Last Year’s EPS
0.18Same Quarter Last Year
Moderate Buy
Based on 12 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong positive momentum: Freshworks achieved its first full-year GAAP profitability, delivered record free cash flow and expanded non-GAAP operating margins, while showing robust ARR and upmarket growth—especially in Employee Experience and AI (Freddie). Key strategic products (Device 42, ESM, FireHydrant) and AI monetization show clear traction and underlie an upgraded growth outlook and FY2026 guidance. Areas of caution include slower CX growth, one-time items inflating GAAP results, Device 42-related mix effects on billings/NRR, integration-related short-term margin impact from FireHydrant, and the need to educate customers for broader AI adoption. Overall, the positives (profitability, cash generation, ARR growth, AI momentum, upmarket wins and guidance raise) substantially outweigh the operational and near-term integration headwinds.Company Guidance
First Full-Year Profitability and Record Cash Generation
Freshworks achieved GAAP profitability for the full year for the first time and generated record adjusted free cash flow of over $223 million in 2025, with Q4 free cash flow of $56.2 million and a Q4 free cash flow margin of 25% (full-year adjusted free cash flow margin 27%).
Strong Revenue and ARR Growth
Q4 total revenue was $222.7 million, up 14% year-over-year (13% constant currency). Full-year ARR finished at $907 million, up 18% year-over-year (14% constant currency). Guidance for FY2026 revenue is $952–960 million, implying ~13.5%–14.5% growth.
Employee Experience (EX) Momentum
EX ARR crossed $510 million, up 26% year-over-year (22% constant currency). EX strength drove upmarket traction, with strategic wins and product integrations (Device 42, FireHydrant) cited as drivers of larger deals.
Upmarket Expansion and Customer Mix Improvements
Customers contributing >$100k ARR exceeded 1,500 (up 28% year-over-year), and customers >$50k ARR reached 3,760 (up 23% year-over-year). The >$50k cohort now represents nearly 55% of ARR, supporting move-upmarket strategy.
Operational Margin and Efficiency Gains
Non-GAAP operating margin expanded to ~19% in Q4 (non-GAAP operating income $41.6 million), driven by top-line outperformance and operational efficiency. Non-GAAP gross margin was 86.8% in Q4 (excluding a $1.5M AWS credit gross margin consistent with prior quarters).
AI Product Traction (Freddie AI)
Freddie AI reached 8,000 paying customers and ~$25 million in ARR (nearly doubled year-over-year). Freddie agent conversations in Q4 rose >80% to 3.5M; AI deflected >50% of tickets for CX/EX customers; net dollar retention for CoPilot customers improved to 116% (from 112%). Company targets $100M AI ARR by 2028.
Device 42 and ESM Growth
Device 42 reached over $40 million in ARR and had a 30% attach rate on top 50 new EX deals in Q4. ESM (Freshservice for business teams) nearly doubled year-over-year to ~$40 million in ARR and is one of the fastest-growing areas.
Calculated Billings and Liquidity
Q4 calculated billings were $259.6 million (up 17% year-over-year as-reported, 13% constant currency). The company ended Q4 with ~$844 million in cash, cash equivalents, marketable securities and restricted cash and reiterated FY2026 free cash flow target of ~$250 million (~25–26% margin).
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 |
|---|---|---|---|
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% |
Apr 29, 2025 | $14.34 | $14.77 | +3.00% |
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 May 05, 2026, After Close (Confirmed).
What is Freshworks (FRSH) earnings time?
Freshworks (FRSH) earnings time is at May 05, 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 (Q1) is 0.11.