Freshworks Exceeds Expectations with 17.5% YoY Revenue Growth in Q2 CY2025

Freshworks reported Q2 CY2025 revenue of $204.7 million, up 17.5% YoY, exceeding analysts' expectations. Adjusted EPS was $0.18, 55.9% above consensus estimates. The company slightly lifted its FY2025 revenue guidance to $825.9 million and adjusted EPS guidance to $0.57. Freshworks delivered another strong quarter, exceeding its previously provided financial estimates. The company's revenue growth was 21.3% CAGR over the last three years.

SAN MATEO, Calif., July 29, 2025 (GLOBE NEWSWIRE) -- Freshworks Inc. (Nasdaq: FRSH), a leading provider of AI-powered employee and customer service solutions, reported its second-quarter (Q2) 2025 financial results, showcasing robust growth and exceeding analysts' expectations. The company reported total revenue of $204.7 million, representing a year-over-year (YoY) increase of 17.5%, and an adjusted earnings per share (EPS) of $0.18, which was 55.9% above consensus estimates [1].

Freshworks' revenue growth was driven by a 10% increase in the number of customers contributing more than $5,000 in annual recurring revenue (ARR) to 23,975, and a net dollar retention rate of 106%, compared to 105% in the first quarter of 2025. The company also welcomed and onboarded several new customers, including AEP Energy, California Franchise Tax Board, Covington & Burling LLP, Manchester Metropolitan University, Reed, and Seagate Technology.

The company's strong performance in Q2 2025 led it to slightly lift its full-year (FY) 2025 revenue guidance to $825.9 million and adjusted EPS guidance to $0.57. Freshworks' revenue growth has been impressive, with a compound annual growth rate (CAGR) of 21.3% over the last three years [1].

Freshworks also announced several strategic initiatives during the quarter, including the launch of Freddy AI Agent Studio, a no-code platform for creating and deploying autonomous AI agents, and Freshservice Journeys, an AI-assisted capability within its IT and employee service management offering. The company also entered into a multi-year partnership with McLaren Racing, integrating Freshworks' ITSM solution, Freshservice.

Freshworks will host its Investor Day 2025 on September 11, 2025, at 8:30 a.m. Pacific Time in San Francisco. The company will provide a detailed overview of its financial results and business highlights during the event.

References:
[1] https://finance.yahoo.com/news/freshworks-reports-second-quarter-2025-201000864.html