Description

Freshworks: Inside Freddy AI—What 8,000 Paying Customers Signal for Revenue Upside!

Freshworks Inc. concluded the fourth quarter and full financial year of 2025 with notable achievements and challenges. On the positive side, the company achieved profitability for the first time in its history and recorded a significant increase in free cash flow. This financial milestone underlines Freshworks’ disciplined execution, product innovation, and improved operational efficiency, which were central to its strategic goals. The company achieved a year-over-year revenue increase of over 14%, surpassing expectations in revenue and profitability for five consecutive quarters. Freshworks ended the fiscal year with $907 million in annual recurring revenue, reflecting an 18% year-over-year growth rate on an as-reported basis. The financial success is further emphasized by the growth in its enterprise customer base, now comprising over 1,500 customers with annual recurring revenue exceeding $100,000, marking a 28% increase from the previous year.