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Freshworks posts $245 Mn revenue in Q3 CY26; turns profitable with $18 Mn net profit

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Freshworks posts $245 Mn revenue in Q3 CY26; turns profitable with $18 Mn net profit

Freshworks reported a 14% year-on-year growth in revenue to $245.4 million in Q3 CY26, compared to $215.1 million in the corresponding quarter last year. The Nasdaq-listed SaaS company also turned profitable, posting a net profit of $18.3 million against a net loss of $4.7 million in Q3 CY25.

The company’s gross profit increased 15% to $209.4 million during the quarter from $182.2 million in the year-ago period. Its gross margin improved to 85.3% from 84.7%.

On the operational front, Freshworks reported an operating profit of $28.2 million, compared to an operating loss of $7.5 million in Q3 CY25. Its operating margin stood at 11.5% against a negative margin of 3.5% in the corresponding quarter last year.

The company’s non-GAAP operating income rose 62% to $73.2 million, while its non-GAAP operating margin expanded to 29.8% from 21%.

On the expenditure front, sales and marketing expenses declined 2.5% to $98.5 million. Research and development expenses increased 7.8% to $44.7 million, while general and administrative expenses fell 19% to $38.2 million. Consequently, total operating expenses declined 4.4% to $181.2 million from $189.6 million in Q3 CY25.

Freshworks generated $77.7 million in cash from operating activities during the quarter, compared to $63.5 million in the year-ago period. Adjusted free cash flow rose 29% to $73.9 million, with its margin improving to 30.1% from 26.6%.

The company had cash, cash equivalents, restricted cash and marketable securities worth $697.3 million as of September 30, 2026.

Freshworks also crossed $1 billion in annual recurring revenue (ARR) after the close of the third quarter, ahead of its earlier year-end estimate.


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