Key Highlights

● Freshworks signed a definitive agreement to acquire Torii; terms were not disclosed.

● Closing is expected in the fourth fiscal quarter of 2026, subject to customary conditions.

● Second-quarter revenue was $237.4 million, up 16.0 per cent from $204.7 million.

● Net income was $3.2 million, a swing from a $1.7 million loss a year earlier.

The Torii agreement

Freshworks Inc. (NASDAQ:FRSH), the customer and employee service software provider, has signed a definitive agreement to acquire Torii. Terms were not disclosed. Closing is expected in the company's fourth fiscal quarter of 2026, subject to customary closing conditions.

Because the closing is expected only in the fourth quarter, the acquisition is a pending transaction, and its financial effect, if any, will not appear in reported results until it completes. Price, funding and expected contribution will be set out in the company's own announcement or later filings.

Latest reported results

The most recent reported quarter, the second quarter ended 30 June 2026, produced revenue of $237.4 million, up 16.0 per cent from $204.7 million a year earlier. Net income was $3.2 million, a swing from a loss of $1.7 million, equal to $0.01 per share.

A profit of this size on revenue of this scale indicates that GAAP margins remain very thin, so small changes in costs or acquisition-related items could change the sign of reported earnings. The $3.2 million profit equals roughly 1.4 per cent of revenue, while revenue growth of 16 per cent suggests demand for the company's products was healthier than the earnings line alone implies.

Third-quarter report and Torii timing

On 3 September the company announced an inducement grant under Nasdaq Listing Rule 5635(c)(4), a routine disclosure related to new-hire equity awards.

On 8 October 2026 Freshworks announced that it will release third-quarter financial results on 3 November 2026. That report will show revenue growth against the second quarter's 16.0 per cent, with the Torii closing still expected in the fourth fiscal quarter and GAAP profit running at only 1.4 per cent of second-quarter revenue.