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- **Record Financial Performance**: 2025 full-year profitability, $907 million ARR, 19% non-GAAP margin, $223 million free cash flow.
- **EX Growth Engine**: $510 million ARR (+26% YoY), 1,500+ >$100k ARR customers, 30% Device42 attach rate in top deals.
- **AI-Driven Expansion**: Freddy AI $25 million ARR, 50%+ ticket deflection, 116% NDR for AI customers.
- **2026 Outlook**: 13.5-14.5% revenue growth, $250 million free cash flow, EX-led acceleration.

**【CEO Summary Section】**
- Achieved **full-year profitability** and record free cash flow in 2025, marking a historic inflection point.
- **EX (Employee Experience) ARR**: Crossed $510 million, up 26% YoY, driven by Freshservice's unified platform and AI-native solutions.
- **Freddy AI**: Over 8,000 customers, with $25 million ARR, and AI Agent Studio deflecting 50%+ tickets in CX and EX.
- **CX (Customer Experience) ARR**: $395 million, growing 9% YoY, with stabilization through Freshdesk Omni platform.
- **Enterprise Cohorts**: 1,500+ customers >$100k ARR (28% YoY growth), 3,700+ >$50k ARR (23% YoY growth).
- **FireHydrant Acquisition**: Adds ITOM capabilities, targeting $8 billion addressable market.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Revenue $222.7 million (+14% YoY), non-GAAP operating margin 19%, free cash flow $56.2 million (25% margin).
- **2026 Guidance**: Revenue $952-960 million (+13.5-14.5% YoY), non-GAAP EPS $0.55-0.57, free cash flow $250 million.
- **Key Metrics**: NDR 108% (104% constant currency), 75,000 total customers, 24,762 >$5k ARR (10% YoY growth).
- **2026 Momentum**: EX growth acceleration, AI monetization, and CX platform stabilization.

**【Q&A Highlights】**
- **CX Growth Constraints**: Focus on EX upmarket expansion, with CX growing mid-single digits as platform unifies.
- **NRR Trends**: Q1 2026 NDR expected at 105% (constant currency), driven by EX product attach rates.
- **Device42 Attach Rate**: 30% in top 50 EX deals, with cloud launch in Q2 2026 targeting ITAM market.
- **AI Penetration**: Freddy AI Copilot attach rate >50% in >$30k ARR deals, NDR for AI customers 116% Q4.
- **Upmarket Momentum**: EX ARR growth 26% YoY, with Device42 and FireHydrant driving ITOM/ITAM expansion.

Freshworks Inc. (FRSH) Q4 2025 Earnings Call Transcript

- **Revenue Surpass**: Q3 revenue of $215.1M (+15% YoY) exceeded expectations, driven by EX (+24% YoY) and CX (+8% YoY) segments.
- **AI Breakthrough**: AI ARR doubled YoY, with Freddy AI agents handling 650,000+ monthly sessions and deflecting 50-80% of tickets. Copilot ARR grew 160% YoY, attached to 60% of new deals.
- **EX Expansion**: EX ARR hit $480M, fueled by ESM ($35M ARR), Device 42 wins, and ITAM adoption. FreshService for Business Teams used by 25% of eligible customers.
- **Financial Strength**: Non-GAAP net income $45.2M (21% margin), free cash flow $57.2M (27% margin). Full-year 2025 billings +16% YoY.
- **Strategic Moves**: Launched standalone ESM product, increased AI pricing, and invested $10M in Q4 demand gen to accelerate EX pipeline.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue reached $215.1 million, up 15% YoY on both as-reported and constant currency bases, driven by EX and CX segments.
- **AI Momentum**: AI ARR doubled YoY, with Freddy AI agents handling over 650,000 monthly sessions and deflecting 50-80% of tickets. Copilot ARR grew 160% YoY, with 60% of new deals over $30,000 including Copilot.
- **EX Expansion**: EX ARR hit $480 million (+24% YoY), fueled by ESM ($35M ARR), Device 42 wins (largest deal in Q3), and ITAM adoption. FreshService for Business Teams now used by 25% of eligible customers.
- **CX Strength**: CX ARR reached $390 million (+8% YoY), with Freshdesk adoption in mid-market and enterprise (e.g., University of Pennsylvania processed 30,000+ tickets in 6 months).
- **Customer Base**: 75,000+ customers, with 24,377 contributing >$5,000 ARR (+9% YoY) and 3,612 >$50,000 ARR (+20% YoY). Net retention 105% (as-reported), 104% (constant currency).

**【CFO Financial Commentary】**
- **Profitability**: Non-GAAP net income $45.2M (21% margin), up from $30.6M in Q2. Adjusted free cash flow $57.2M (27% margin), up 500bps YoY.
- **Billings**: Q3 calculated billings $224M (+14% YoY). Full-year 2025 billings expected +16% YoY. Q4 billings guidance $217-220M (+12-13% YoY).
- **Share Repurchase**: Completed $400M buyback, repurchasing 27.9M shares at $14.35 avg. Plan to net settle $58M in 2025 for dilution offset.
- **Margins**: Q4 operating margin ~21%, with 2026 exit margin >23%. Q1 2026 margin dip due to merit resets, followed by linear improvement.

**【Q&A Highlights】**
- **ESM Standalone Sales**: Launched FreshService for Business Teams as standalone product to target non-IT functions, preserving optionality for ITSM migration. Early traction with 1,000+ law firms and 17%+ YoY growth in ITAM.
- **AI Pricing**: AI agents will adopt industry-standard pricing, reflecting 80% deflection rates in early access. Copilot pricing remains per-seat, with 112% NRR for AI customers.
- **Government Impact**: No impact from U.S. shutdown; state/local gov and university wins continued (e.g., Pennsylvania Gaming Control Board).
- **Pipeline Visibility**: Q4 demand gen investment (+$10M) to accelerate EX pipeline. EX win rates highest in two years, with Device 42 cloud launch in Q1 2026 targeting mid-market cloud preference.
- **Share Repurchase Strategy**: Board evaluating future buybacks post-inaugural program. Focus on net settling to offset dilution, with $12M Q4 spend at current prices.

Freshworks Inc. (FRSH) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 18% YoY to $204.7M, EX ARR +24% to $450M, CX ARR +11% to $380M. 
- **AI Expansion**: $20M ARR (doubled YoY), 55%+ Copilot attach rate, 5,000+ paying customers. 
- **Profitability**: 22% non-GAAP margin, $54.3M free cash flow (27% margin). 
- **Guidance**: Q3 $207-210M (11-12% YoY), FY25 $822.9-828.9M (14-15% YoY). 
- **Strategic Moves**: Freshservice Journeys, Freddy AI Agent Studio, multiyear McLaren partnership.

**【CEO Summary Section】**
- Q2 revenue grew 18% YoY to $204.7 million, driven by EX (24% YoY ARR growth to $450M) and CX (11% YoY ARR growth to $380M). 
- EX expansion: 19,000+ customers, 35% cost savings for Nexstar Media, 900 agents onboarded at Michaels Stores. 
- AI adoption: 5,000+ paying customers, $20M ARR (doubled YoY), 55%+ Copilot attach rate in large deals. 
- CX momentum: 36-country deployment for Honda, 35% ticket deflection via AI agents. 
- Strategic initiatives: Freshservice Journeys for HR, Freshservice for MSPs, Freddy AI Agent Studio. 

**【CFO Financial Commentary】**
- Non-GAAP operating margin 22%, up 14ppt YoY. Adjusted free cash flow $54.3M (27% margin). 
- Q3 guidance: $207-210M revenue (11-12% YoY), $0.12-0.14 EPS. Full year: $822.9-828.9M (14-15% YoY). 
- Billings growth 16% YoY (14% CC). Share buybacks: $240M+ repurchased. 

**【Q&A Highlights】**
- **AI Adoption**: 5,000+ paying customers, 1,000+ new per quarter. Agentic AI in early access, pricing TBD. 
- **Partnerships**: 130+ new partners, 1/3 of ARR touched by partners. Unisys deal driving large deals. 
- **Macro Impact**: Diversified revenue (48% intl), no industry concentration. 
- **Device42**: 2/3 of EX ARR, cloud version launching Q1 2026. 
- **Growth Drivers**: EX (ESM, Device42), CX (AI, cross-sell), AI (Copilot, Agentic agents).

Freshworks Inc. (FRSH) Q2 2025 Earnings Call Transcript

- **Revenue Growth Leader**: 19% YoY revenue to $196M, EX ARR +33% to $420M, CX ARR +7% to $370M. 
- **Profitability Surge**: 24% non-GAAP margin (vs. 14% last year), 28% free cash flow margin. 
- **AI Adoption Acceleration**: 2,700 Copilot users (+500 QoQ), 1,600 AI Agents, 30% productivity gains. 
- **Customer Expansion**: +1,000 net customers (73,300 total), 24% YoY growth in >$50k ARR cohort. 
- **FY25 Outlook**: $815-824M revenue (+13-14%), 14% constant currency billings growth.

**【CEO Summary Section】**
- **Revenue Growth**: Q1 2025 revenue reached $196.3 million, up 19% YoY, driven by EX business ARR growth of 33% to $420 million and CX ARR of $370 million. 
- **Profitability**: Non-GAAP operating margin expanded to 24% (vs. 14% last year), adjusted free cash flow margin of 28%, achieving Rule of 47. 
- **AI Adoption**: 2,700 Copilot customers (+500 QoQ), 1,600 AI Agent users, and 1,000 AI Insights beta users. AI deflection rates 50-70%, 30% productivity gains. 
- **Customer Expansion**: +1,000 net customers (73,300 total), NDR 105% (constant currency), 24% YoY growth in >$50k ARR customers. 
- **Strategic Wins**: Freudenberg Group, All3Media, Sophos, and largest U.S. title company replaced legacy vendors with Freshworks solutions. 

**【CFO Financial Commentary】**
- **Revenue**: $196.3M (+19% YoY), beating estimates. EX/CX ARR growth 33%/7% (constant currency). 
- **Margins**: Gross margin 86%, operating margin 24% (vs. 14% last year). Adjusted free cash flow $55.4M (+43% YoY). 
- **Billings**: $203.3M (+17% constant currency), Q2 guidance 11-12% growth, FY25 14% constant currency. 
- **Share Repurchases**: $111.8M in Q1, total $127.3M since program launch. 
- **FY25 Outlook**: Revenue $815-824M (+13-14% YoY), non-GAAP EPS $0.56-0.58. 

**【Q&A Key Themes】**
1. **AI Efficiency**: Internal AI use reduces costs 20%, 80% query deflection in support. 
2. **Pipeline Strength**: Stable NDR 105%, pipeline momentum in EX upmarket and CX SMB. 
3. **Partner Program**: Expanded reseller model drives 500+ transacting partners. 
4. **Market Resilience**: 70% of deals replace legacy vendors, 30%+ productivity gains from AI. 
5. **Expense Management**: Q2 opex up due to merit cycle, but 20% headcount reduction YoY from AI automation.

Freshworks (FRSH)-29 Apr 25-2025 Q1 Earnings call transcript

- **EX dominance**: EX ARR ($400M+) grows 35% YoY, outpacing CX (7% YoY). Device42 adds $10.3M Q4, 50%+ cross-sell to Freshservice. 
- **AI acceleration**: Freddy Copilot adds 500+ Q4, 50% attach rate on large deals. 1,300+ paying AI Agent customers. 
- **Financial strength**: 21% non-GAAP margin, $41.7M adj. FCF. FY25 $210M+ FCF target. 
- **Growth catalysts**: Free-to-paid conversions (+2,000 CX customers), Unisys MSP partnership, AI expansion into EX. 
- **Risk management**: 1ppt FY25 revenue guidance FX sensitivity, 11% share count growth controlled via net settle.

**【CEO Summary Section】**
- Q4 revenue grew 22% YoY to $194.6 million, driven by EX business ARR surpassing $400 million (35% YoY growth on constant currency). 
- EX expansion via ESM (25% attach rate in Q4) and Device42 (highest net new ARR quarter) outperformed expectations. 
- AI adoption accelerated with Freddy Copilot adding 500+ net customers Q4, achieving 50% attach rate on deals >$30k. 
- CX business added 2,000+ net customers through free-to-paid conversions, maintaining 7% YoY ARR growth. 
- New partnerships like Unisys highlight mid-market ITSM growth opportunity. 

**【CFO Financial Commentary】**
- Non-GAAP operating margin expanded to 21% (vs. 13% prior year), driven by $41.7M adj. free cash flow (21% margin). 
- FY24 adj. free cash flow nearly doubled to $153.3M, with $210M+ target for FY25. 
- Q1 2025 guidance: $190-193M revenue (15-17% YoY), $32.5-34.5M non-GAAP op income. 
- FY25 revenue expected $809-821M (12-14% YoY), with margin improvements post Q2 merit cycle. 

**【Q&A Highlights】**
- EX growth sustainability: Mid-market ITSM pipeline up 100% QoQ, Device42 cross-sell driving 22%+ EX growth. 
- AI monetization: Freddy Copilot ARR ahead of internal targets, 1,300+ paying AI Agent customers. 
- Cash allocation: $15.5M share buybacks in Q4, $71M FY25 net settle for dilution management. 
- FX impact: 3ppt ARR growth drag in Q4, 1ppt FY25 revenue guidance reduction. 
- MSP strategy: 1,000+ existing MSP customers, enhanced multi-account management features launching Q2.

Freshworks (FRSH)-11 Feb 25-2024 Q4 Earnings call transcript

Freshworks (FRSH)-6 Nov 24-2024 Q3 Earnings call transcript

Freshworks Inc - Ordinary Shares (FRSH)-30 Jul 24-2024 Q2 Earnings call transcript

Freshworks Inc - Ordinary Shares (FRSH)-1 May 24-2024 Q1 Earnings call transcript

Freshworks (FRSH)-6 Feb 24-2023 Q4 Earnings call transcript

Freshworks (FRSH)-31 Oct 23-2023 Q3 Earnings call transcript

- **Revenue Growth**: Q2 revenue exceeded expectations at $145.1 million, driven by ITSM and larger deals.
- **AI Strategy**: Freddy AI add-ons (e.g., Copilot at $29/agent/month) and a modern customer service suite launched.
- **Financial Health**: Non-GAAP EPS of $0.06, free cash flow of $18.1 million.
- **Customer Focus**: 46% of ARR from >$50k ARR customers.
- **Guidance**: Full-year billings of $587-595 million (18-19% YoY growth).

**【CEO Summary Section】**
- Freshworks reported Q2 revenue of $145.1 million, exceeding the high end of its guidance range, driven by IT service management (ITSM) product growth and larger customer deals.
- CEO Girish Mathrubootham highlighted the launch of Freddy AI capabilities (Self-service, Copilot, Insights) across customer service and IT products, with plans to monetize AI add-ons like Freddy Copilot at $29 per agent/month.
- The company introduced a modern customer service suite powered by Freddy AI, enabling conversational self-service and agent collaboration.
- Gross margin improved to 84% due to AWS cost reductions, and non-GAAP operating profit reached $11.7 million.

**【CFO Financial Commentary】**
- Q2 non-GAAP EPS was $0.06, exceeding expectations, with free cash flow of $18.1 million.
- CFO Tyler Sloat noted a 5% year-over-year decline in operating expenses due to cost control and a shift to larger, more profitable customers.
- Calculated billings grew 22% YoY to $158.9 million, with guidance for Q3 billings of $149-151.5 million (16-18% YoY growth).
- Full-year 2023 billings guidance is $587-595 million (18-19% YoY growth), with free cash flow expected to reach $60 million.

**【Q&A Highlights】**
- **AI Adoption**: Early adopters of Freddy Copilot include a New York shipping company, with plans to monetize Copilot later this year.
- **Customer Retention**: Net dollar retention rate of 102% (105-106% on constant currency) due to cross-sell opportunities (e.g., Freshservice to Freshdesk).
- **Go-to-Market Changes**: President Dennis Woodside reported 33% YoY growth in customers >$50k ARR, contributing 46% of ARR.
- **Currency Impact**: Q2 revenue growth of 20% (19% in USD), with FX headwinds noted.
- **Free Cash Flow**: $18.1 million in Q2, with full-year guidance of $60 million.


Actual	-0.04	-0.06	-0.01	-0.06	-0.01	0.01	0.03	0.07	0.08	0.08	0.1	0.08	0.11	0.14	0.18	0.18	0.16	0.14
Forecast	-0.1075	-0.056	-0.0524	-0.0665	-0.0546	-0.0375	-0.0173	0.0158	0.052	0.0525	0.0753	0.0628	0.0776	0.102	0.1292	0.1148	0.1285	0.1127
Surprise	+62.79%	-7.14%	+80.92%	+9.77%	+81.68%	+126.67%	+273.41%	+343.04%	+53.85%	+52.38%	+32.80%	+27.39%	+41.75%	+37.25%	+39.32%	+56.79%	+24.51%	+24.22%

FRSH

FRSH fundamentals

FRSH Q4 2025 Earnings

Earnings Call

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FRSH

FRSH fundamentals

FRSH Q4 2025 Earnings

Earnings Call

FRSH Earnings Call Summary for Q4/20255:00 PM on Feb 10, 2026

FRSH Earnings Call Summary for Q3/20255:00 PM on Nov 5, 2025

FRSH Earnings Call Summary for Q2/20255:00 PM on Jul 29, 2025

FRSH Earnings Call Summary for Q1/20255:00 PM on Apr 29, 2025

FRSH Earnings Call Summary for Q4/20245:00 PM on Feb 11, 2025

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