Key Highlights

  • Freshworks reported second-quarter 2026 Revenue of $237.4m, up 16% from $204.7m a year earlier.
  • The company repurchased $159.0m of shares in the quarter and held $665.3m in cash and marketable securities at 30 June 2026.
  • Full-year 2026 revenue is guided at $963.5m to $966.5m, about 15% growth.

Second-quarter results

Freshworks Inc. (NASDAQ:FRSH) reported second-quarter 2026 results on 4 August 2026 for the quarter ended 30 June. Revenue was $237.4m, up 16% from $204.7m a year earlier, or 15% in constant currency. GAAP Operating Income was $6.1m, a 2.6% margin, compared with a loss of $8.7m a year earlier. GAAP Net Income was $3.2m, or $0.01 per diluted share.

On a non-GAAP basis, operating income was $55.9m, a 23.6% Margin against 21.9%, while non-GAAP Earnings Per Share were $0.17, against $0.18 a year earlier. The company's headline profit measures improved in margin terms even though non-GAAP earnings per share dipped slightly, which is a distinction readers should note.

Cash flow and buybacks

Operating Cash Flow was $58.5m, a 24.7% margin, and adjusted free cash flow was $57.7m, or 24.3%. Cash, equivalents, restricted cash and marketable securities totalled $665.3m at 30 June 2026. Freshworks repurchased $159.0m of shares in the quarter, about $207.4m for the year to date.

Large repurchases return cash to shareholders and can reduce the share count, but they also reduce the cash balance. The pace of Buybacks can therefore be weighed against the level of cash generation reported for the quarter.

Customers and the AI case

Customers with annual Recurring Revenue above $100,000 numbered 1,746, up 25%, and those above $50,000 numbered 4,091, up 18%. Those above $5,000 grew 6% to 25,356. Net dollar retention was 104%, down from 106% a year earlier. Chief executive Dennis Woodside said employee-experience annual recurring revenue grew 24%.

Management is positioning artificial intelligence as a growth driver. Mr Woodside said customers "aren't testing AI with us, they're adopting and using Freddy AI", and the company said the Freddy AI Copilot is attached to more than 71% of new enterprise deals. These are company statements, and the company does not disclose AI revenue in dollars, so the contribution to growth cannot be sized independently.

The company also described the quarter as the eighth consecutive one meeting the so-called Rule of 40, a measure that combines growth and profitability. Definitions of such metrics vary between companies, so comparisons require care. It also announced AI Agent Studio and MCP Gateway for Freshservice, although product launches do not by themselves translate into revenue.

Guidance

Guidance is a forecast. For the third quarter Freshworks expects revenue of $244.5m to $245.5m, about 14% growth, non-GAAP operating income of $59.0m to $61.0m and non-GAAP earnings per share of $0.18. For full-year 2026 it expects revenue of $963.5m to $966.5m, about 15% growth, non-GAAP operating income of $222.0m to $228.0m and non-GAAP earnings per share of $0.66 to $0.68.

What to watch

The next earnings date is expected to be 3 November 2026, which the company should confirm. Points to monitor include whether revenue lands inside the guided range, whether net dollar retention stabilises, how AI attach rates translate into reported revenue, and the continuing pace of buybacks. The company also appointed Ryan Manning as chief product and technology officer, so product execution under new Leadership may draw attention.