Nasdaq-listed SaaS company Freshworks swung to a consolidated net profit of $18.3 Mn in the third quarter of 2026 (Q3 2026) from a $4.7 Mn loss a year earlier, helped by higher revenue and lower operating expenses.

Revenue rose 14% to $245.4 Mn from $215.1 Mn in the corresponding quarter last year.

Sequentially, revenue increased 3.4% from $237.4 Mn, while net profit rose from $3.2 Mn.

The company’s operating expenses declined 4.4% to $181.2 Mn from $189.6 Mn. General and administrative expenses fell to $38.2 Mn from $47.1 Mn, while stock-based compensation dropped to $38.8 Mn from $48.5 Mn.

CEO Dennis Woodside said Freshworks’ strategy of targeting larger customers supported its quarterly performance. New deals involving multiple employee experience products increased more than 35%, while partners participated in more than half of its new business, he said.

The number of customers contributing over $100,000 in annual recurring revenue (ARR) increased 25% to 1,821. Customers generating more than $50,000 in ARR grew 18% to 4,257.

Freshworks also crossed $1 Bn in ARR after the quarter ended, ahead of its earlier year-end target.

However, its net dollar retention (NDR) rate remained unchanged sequentially at 104%, down from 105% a year earlier. NDR measures changes in revenue from existing customers, accounting for upgrades, cross-sells, renewals, and customer churn.

New customers during the quarter included Tata Technologies, Texas Christian University, Unilabs (UK), and Jose Cuervo.

Freshworks has been increasingly positioning itself as an AI-powered service operations platform spanning customer experience, employee experience, and IT service management.

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