10-Q · August 4, 2026
Freshworks delivered 16% year-over-year Q2 revenue growth to $237.377 million, maintained an 85% gross margin, and moved to $6.060 million of GAAP operating income from an $8.656 million loss a year ago. Cash generation…
Earnings analysis · 10-Q
FRSH earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Freshworks delivered $245.428 million of revenue and $0.22 of non-GAAP diluted EPS, with EPS materially above the $0.15 consensus estimate. GAAP operating margin expanded to 11.5% from negative 3.5% year over year,…
Read full summary
Freshworks delivered $245.428 million of revenue and $0.22 of non-GAAP diluted EPS, with EPS materially above the $0.15 consensus estimate. GAAP operating margin expanded to 11.5% from negative 3.5% year over year, while adjusted free cash flow rose 29% to $73.896 million. Liquidity remained substantial at $696.2 million across cash, cash equivalents and marketable securities, but foreign-exchange exposure remains material and management disclosed no material changes to the risk factors from the 2025 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.22
- Operating margin
- 11.5%
What stood out
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Revenue in line; EPS beat estimates
Revenue was $245.428 million, essentially in line with the $245.054616 million consensus estimate, while non-GAAP diluted EPS was $0.22 versus the $0.15 estimate.
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Operating profitability expanded
GAAP operating margin improved to 11.5% from negative 3.5% in the year-ago quarter, indicating a substantial year-over-year expansion in operating profitability.
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Free cash flow strengthened
Adjusted free cash flow increased to $73.896 million, up 29% year over year, strengthening internally generated liquidity.
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Large liquidity position
The company had $466.7 million of cash and cash equivalents plus $229.5 million of marketable securities as of September 30, 2026, or approximately $696.2 million of liquid resources.
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Expanded currency hedging
Foreign-exchange hedging was expanded: designated forward contracts had a $71.3 million notional amount and nondesignated contracts had a $249.8 million notional amount as of September 30, 2026.
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Share repurchases continued
The company repurchased 2,737,014 shares during the quarter at an average price of $9.94, with $168.337 million remaining under the repurchase authorization at September 30, 2026.
What to watch
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Foreign-exchange exposure
A hypothetical 10% foreign-currency exchange-rate change would result in an approximately $15.9 million gain or loss. The company states that its results and cash flows are particularly exposed to the Indian rupee, British pound and euro.
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Currency hedges do not fully protect results
Nondesignated forward contracts covered a $249.8 million notional amount but are limited to 90% of identified exposure, so they do not eliminate currency risk. Designated contracts covered an additional $71.3 million notional amount.
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Insider-sale and equity dilution risk
Officers adopted Rule 10b5-1 plans covering up to 569,971 shares for the COO/CFO and up to 218,023 shares for the chief product and technology officer, potentially increasing selling pressure and dilution from equity compensation.
Management's outlook
Management introduced quantitative Q4 and full-year 2026 guidance; no prior quantitative company outlook was disclosed for comparison. Q4 2026 revenue is expected at $253.5 million-$254.5 million with non-GAAP EPS of approximately $0.21; full-year revenue is expected at $965.0 million-$966.0 million with non-GAAP EPS of approximately $0.71.
Earlier filings 4
10-Q · May 5, 2026
Freshworks (FRSH) reported a strong performance for Q1 2026, with revenue of $228.6 million, representing a 16% increase year-over-year. The company also achieved a non-GAAP EPS of $0.11, exceeding estimates and…
10-K · February 26, 2026
Freshworks Inc. reported a solid performance for the year ended December 31, 2025, with total revenue reaching $838.8 million, a 16% increase year-over-year. Notable was the achievement of net income of $183.7 million,…
10-Q · November 5, 2025
Freshworks Inc. reported strong revenue growth in Q3 2025, with revenue of $215.1 million, a 15% increase year-over-year and beating expectations by approximately $4.4 million. Notably, the company also recorded a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.