AI-extracted from the 10-Q filed 2026-08-04 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Freshworks posted $237.4M revenue in Q2, up 16% YoY, reaching operating profitability with $6.1M income from operations versus a $8.7M loss in the prior year quarter.
Biggest Revenue Drivers
Subscription services, software licenses and maintenance$234.6M+16% YoY
Increased revenue from both existing customers expanding usage and new customers acquired during the twelve months ended June 30, 2026.
Professional services$2.8M+3% YoY
Fees charged for product configuration, data migration, systems integration, and training.
Biggest Revenue Drivers
Total revenue: $237.4M+16% YoY
Subscription services, software licenses and maintenance$234.6M+16% YoY
Increased revenue from both existing customers expanding usage and new customers acquired during the twelve months ended June 30, 2026.
Professional services$2.8M+3% YoY
Fees charged for product configuration, data migration, systems integration, and training.
Largest Expense Items
Sales and marketing$106.5M+12% YoY
Increased due to $5.3M in marketing sponsorship costs, $3.1M in personnel-related costs from compensation adjustments, and $1.2M in professional service fees.
Research and development$43.8M+10% YoY
Driven by $1.4M increase in personnel-related costs, $0.8M net loss from foreign currency fluctuations, and $0.5M increase in professional service fees.
General and administrative$37.9M-19% YoY
Decreased primarily due to $11.3M lower stock-based compensation from departure of former Executive Chairman in December 2025, partially offset by $1.6M higher personnel-related costs.
Cost of revenue$36.1M+16% YoY
Driven primarily by $4.6M increase in third-party hosting costs to support increased capacity and volume for new customers.
Margins: Gross margin remained stable at 85% for Q2 2026 versus 85% in Q2 2025. The company achieved operating profitability with $6.1M operating income in Q2 2026, compared to an $8.7M operating loss in Q2 2025, despite increased operating investments and restructuring charges of $7.0M.
Watch Items from the Filing
Net dollar retention rate declined to 104% as of June 30, 2026 from 106% as of June 30, 2025, primarily due to unfavorable foreign currency exchange rate fluctuations; company notes this metric may continue to fluctuate due to macroeconomic conditions and FX volatility.
Approximately 29% of revenue exposure relates to euro and British pound currencies; company experienced $11.3M unrealized foreign exchange loss in H1 2026, mostly from Indian rupee depreciation against U.S. dollar.
Company completed FireHydrant acquisition in January 2026 for $88.7M in cash, with $9.0M in unpaid indemnity and purchase price adjustment holdbacks; goodwill increased from $146.7M to $198.0M.
Repurchased 24.0M shares for $204.5M in H1 2026 under February 2026 authorization; $195.5M remains available of the $400M program as of June 30, 2026, while accumulated deficit stands at $3.6B.
Restructuring announced in May 2026 resulted in $7.0M charges in Q2 2026 for employee severance; plan substantially complete with no additional material charges expected.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Manning RyanChief Product & Tech OfficerGrant or award · Sep 1, 2026
Pelzer Francis J.DirectorGrant or award · Jul 1, 2026
About Freshworks Inc. (FRSH): stock profile, AI score and financials
Freshworks Inc. (FRSH) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores FRSH at 68.1/100 on a composite quality score built from its SEC filings, placing it at rank #330 of 2,925 stocks — the top 25% of the AI-ranked universe. FRSH scores in the top quartile across balance sheet strength (89.6), profitability (84.3), free cash flow (80.2). Shareholder dilution risk is elevated at 9.9/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Freshworks Inc. reports quarterly revenue of $237.4M, net income of $3.2M, an operating margin of 2.5%. FRSH trades on the Nasdaq exchange and files with the SEC under CIK 1544522. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate FRSH daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Freshworks Inc. directly from SEC EDGAR.