Freshworks reports 15% rise in revenue, losses down 81% for Q3
For Q4 of the fiscal year, Freshworks has projected an annual revenue growth in the range of 12-13%. This is the third consecutive time the company has raised its revenue guidance higher.
Freshworks, the Nasdaq-listed Software as a Service (SaaS) company, on Thursday reported a 15% annual rise in revenue, while the losses narrowed by 81% for the third quarter of the fiscal.
The total revenue of Freshworks was $215.1 million for the third quarter ending September 30, 2025, compared with $186.6 million in the similar period a year ago. The loss from the operation at the end of the third quarter was $7.5 million, compared with $38.9 million a year ago.
On the company's performance, CEO and President Dennis Woodside said, “Freshworks once again exceeded our previously issued estimates across growth and profitability metrics.”
He further noted, “Business leaders are realising that AI belongs in the software their teams use every day. They choose Freshworks because our unified platform delivers real productivity gains, not more complexity strains.”
For the fourth quarter of the fiscal year, Freshworks has projected an annual revenue growth in the range of 12-13%. This is the third consecutive time the company has raised its revenue guidance higher.
In the third quarter, Freshworks said the number of customers contributing more than $5,000 in annual recurring revenue (ARR) stood at 24.377—a 9% annual increase.
The company said the net dollar retention rate—a metric to measure revenue generated from existing customers—was 105% compared to 107% in the third quarter of 2024. Freshworks said its Freddy AI products doubled its annual recurring revenue (ARR) over the last year.
The company also announced that its Freshservice for Business Teams will now be available as a standalone product, no longer requiring an existing Freshservice IT Service Management (ITSM) implementation. The move is expected to provide businesses more options to accelerate uninterrupted service delivery to HR, Finance, Legal and other teams, allowing non-IT departments to streamline complex processes and deliver consistent, personalised employee experiences.
The product has doubled its ARR in the past year, reaching over $35 million as of September 30, 2025.
Freshworks Chief Product Officer Srini Raghavan said, “Now businesses have another option. Enabling non-IT workers to create their own support environments is a force multiplier that can benefit the entire organisation by enabling workers closest to business processes to create the employee experiences they want and need.”
Edited by Suman Singh