NASDAQ-listed SaaS firm Freshworks delivered a strong close to calendar year 2025, reporting $223 million in revenue for Q4 CY25, up 15% year-on-year from $195 million in the same quarter last year. The company also achieved a key milestone by posting a GAAP operating profit, signaling sustained margin improvement.
On a sequential basis, revenue rose 4% from $215 million in Q3 CY25, reflecting steady demand across its customer engagement and IT service management solutions.
Turns GAAP Profitable at Operating Level
Freshworks reported GAAP operating income of $40 million in Q4 CY25, compared to an operating loss of $24 million in Q4 CY24. The shift to profitability highlights improved cost discipline and operating leverage as the company scales.
For the full year CY25, revenue grew 16% to $839 million, up from $720 million in 2024. The company posted a GAAP operating profit of $13.2 million, a sharp turnaround from a $138.6 million loss in the previous year.
Customer Growth and Retention Strengthen
Freshworks continued to expand its enterprise footprint. The number of customers contributing over $5,000 in annual recurring revenue increased 10% year-on-year to 24,762.
Its net dollar retention rate improved to 108% in Q4, compared to 103% a year earlier, indicating stronger upsell momentum and improved customer stickiness.
Strategic Expansion and AI Push
During the quarter, Freshworks announced the acquisition of FireHydrant, strengthening its IT service management capabilities. The company also launched new AI-driven enhancements across Freshservice and Freshdesk, deepening automation and customer support intelligence.
Additionally, Freshworks appointed Kady Srinivasan as Chief Marketing Officer, reinforcing leadership ahead of its next growth phase.
Outlook for CY26
Freshworks expects revenue in the range of $222–225 million for Q1 CY26 and projects full year 2026 revenue between $952 million and $960 million, indicating continued double digit growth momentum.
With improving profitability, stronger retention metrics, and product-led expansion into AI capabilities, Freshworks appears positioned to sustain its disciplined growth trajectory in the global SaaS market.
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