Freshworks Inc
NASDAQ:FRSH
Freshworks Inc
In the dynamic landscape of SaaS (Software as a Service), Freshworks Inc. emerged in 2010, born out of a small setup in Chennai, India. Backed by an ambition to revolutionize business software, Freshworks captured attention with its commitment to offering affordable, intuitive solutions for customer engagement. The company's journey began with its flagship product, Freshdesk, a cloud-based customer service platform, designed to simplify interaction between businesses and their clientele. Fast-paced growth saw it quickly expand its suite of offerings to include products like Freshservice for IT service management and Freshsales for CRM automation. These strategic expansions were coupled with a customer-centric approach, focusing on seamless integrations with various business tools and ensuring ease of use, which soon positioned Freshworks as an indispensable ally for small to medium-sized enterprises globally.
Freshworks’ monetization strategy reflects an astute understanding of the modern business ecosystem. The company capitalizes on its robust product lineup with a subscription-based model, underscoring the principle of scalability. This pricing structure allows businesses of all sizes to access and leverage cutting-edge technology without the burden of heavy upfront costs. By offering tiered subscription plans, Freshworks caters to diverse customer needs—whether it's a small startup or a growing mid-size company. In addition to subscription revenue, Freshworks benefits from a strong upselling strategy, encouraging existing customers to adopt additional products from their suite, often enabled through a unified platform that supports business growth. This dual approach of attracting new subscribers and enhancing value among existing users anchors Freshworks firmly in the competitive SaaS domain, promising a compelling growth trajectory.
In the dynamic landscape of SaaS (Software as a Service), Freshworks Inc. emerged in 2010, born out of a small setup in Chennai, India. Backed by an ambition to revolutionize business software, Freshworks captured attention with its commitment to offering affordable, intuitive solutions for customer engagement. The company's journey began with its flagship product, Freshdesk, a cloud-based customer service platform, designed to simplify interaction between businesses and their clientele. Fast-paced growth saw it quickly expand its suite of offerings to include products like Freshservice for IT service management and Freshsales for CRM automation. These strategic expansions were coupled with a customer-centric approach, focusing on seamless integrations with various business tools and ensuring ease of use, which soon positioned Freshworks as an indispensable ally for small to medium-sized enterprises globally.
Freshworks’ monetization strategy reflects an astute understanding of the modern business ecosystem. The company capitalizes on its robust product lineup with a subscription-based model, underscoring the principle of scalability. This pricing structure allows businesses of all sizes to access and leverage cutting-edge technology without the burden of heavy upfront costs. By offering tiered subscription plans, Freshworks caters to diverse customer needs—whether it's a small startup or a growing mid-size company. In addition to subscription revenue, Freshworks benefits from a strong upselling strategy, encouraging existing customers to adopt additional products from their suite, often enabled through a unified platform that supports business growth. This dual approach of attracting new subscribers and enhancing value among existing users anchors Freshworks firmly in the competitive SaaS domain, promising a compelling growth trajectory.
Historic Profitability: Freshworks achieved GAAP profitability for the first time in company history for full year 2025, with record free cash flow.
Revenue Growth: Q4 revenue rose 14% year-over-year, surpassing expectations by nearly $3 million and ending 2025 with $907 million in annual recurring revenue (ARR), up 18% YoY.
Strong Enterprise Momentum: The number of customers with over $100,000 in ARR grew 28% YoY, and enterprise cohorts outpaced overall growth.
AI Driving Upsell: Freddy AI ARR surpassed $25 million in 2025, with over 8,000 customers and attach rates above 50% in large deals; AI net dollar retention rose from 112% to 116%.
EX Segment Outperformance: Employee Experience (EX) ARR crossed $510 million, growing 26% YoY, fueled by platform enhancements and acquisitions.
Billings and Free Cash Flow: Q4 calculated billings were $259.6 million, up 17% YoY; Q4 free cash flow was $56.2 million, with a margin of 25%.
Raised 2026 Guidance: Full year 2026 revenue is now guided to $952–$960 million (up 13.5%–14.5% YoY), above previous targets, with accelerating growth expected in the second half.
Mid-Market Focus: Management emphasized strong momentum and pipeline in the mid-market segment, with no signs of weakness.
