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Freshworks: Freddy AI—How Agents, Copilots, & New Agentic AI Verticals Could Drive Adoption!

Freshworks’ third-quarter 2025 results highlight a blend of strong revenue growth and strategic advancements in product offerings, particularly in AI and enterprise service management (ESM). Positively, the company achieved a 15% year-over-year revenue increase, reaching $215.1 million, surpassing initial estimates. This growth exhibits Freshworks’ capacity to expand both as-reported and on a constant currency basis, coupled with a notable non-GAAP operating margin expansion to 21%. Additionally, the free cash flow margin stood at an impressive 27%, marking the fifth consecutive quarter meeting the Rule of 40 criteria, indicating a balance of growth and efficiency. A critical growth lever for Freshworks has been its ESM and AI capabilities. Freshworks has over 50 AI-driven applications, currently utilized by its customers, reflecting the strategic focus on directly monetizing AI initiatives and demonstrating tangible outcomes.