--- title: "Freshworks | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 237.38 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/294873369.md" datetime: "2026-08-04T21:09:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294873369.md) - [en](https://longbridge.com/en/news/294873369.md) - [zh-HK](https://longbridge.com/zh-HK/news/294873369.md) --- # Freshworks | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 237.38 M Revenue: As of FY2026 Q2, the actual value is USD 237.38 M, beating the estimate of USD 233.59 M. EPS: As of FY2026 Q2, the actual value is USD 0.01. EBIT: As of FY2026 Q2, the actual value is USD 6.06 M. #### Restructuring Plan and Costs Freshworks Inc. recognized $7.0 million in restructuring charges for the three and six months ended June 30, 2026, primarily due to employee severance and benefit costs. During this period, $5.6 million of these costs were paid, leaving an unpaid restructuring liability of $1.4 million as of June 30, 2026, included in accrued liabilities. #### Second Quarter 2026 Financial Highlights #### Revenue Total revenue for Freshworks Inc. was $237.4 million in the second quarter of 2026, representing a 16% year-over-year growth compared to $204.7 million in the second quarter of 2025. When adjusted for constant currency, revenue growth was 15%. #### GAAP Income from Operations GAAP income from operations was $6.1 million, with an operating margin of 2.6% in the second quarter of 2026. This compares to a GAAP loss from operations of - $8.7 million and an operating margin of -4.2% in the second quarter of 2025. #### Non-GAAP Income from Operations Non-GAAP income from operations reached $55.9 million, achieving a non-GAAP operating margin of 23.6% in the second quarter of 2026. This marks an increase from $44.8 million and a non-GAAP operating margin of 21.9% in the second quarter of 2025. #### Net Income Freshworks Inc. reported a positive GAAP Net Income of $3.2 million in the second quarter of 2026, marking the company’s first quarter of GAAP profitability in 2026. #### Operating Costs (Three Months Ended June 30, 2026 vs. 2025) - **Cost of revenue**: $36.1 million in 2026 compared to $31.1 million in 2025. - **Research and development**: $43.8 million in 2026 compared to $39.9 million in 2025. - **Sales and marketing**: $106.5 million in 2026 compared to $95.2 million in 2025. - **General and administrative**: $37.9 million in 2026 compared to $47.0 million in 2025. - **Restructuring charges**: $7.0 million in 2026 compared to $0 in 2025. - **Total operating expenses**: $195.2 million in 2026 compared to $182.2 million in 2025. #### Cash Flow Net cash provided by operating activities was $58.5 million, with an operating cash flow margin of 24.7% in the second quarter of 2026. In the second quarter of 2025, net cash provided by operating activities was $58.6 million, with an operating cash flow margin of 28.6%.Adjusted free cash flow was $57.7 million, representing an adjusted free cash flow margin of 24.3% in the second quarter of 2026. This is an increase from $54.3 million and an adjusted free cash flow margin of 26.5% in the second quarter of 2025. #### Cash and Equivalents Cash, cash equivalents, restricted cash, and marketable securities totaled $665.3 million as of June 30, 2026. #### Operational Metrics The number of customers contributing more than $100,000 in Annual Recurring Revenue (ARR) increased by 25% year-over-year to 1,746. The number of customers contributing more than $50,000 in ARR grew by 18% year-over-year to 4,091, while customers contributing more than $5,000 in ARR increased by 6% year-over-year to 25,356. The net dollar retention rate was 104% in the second quarter of 2026, compared to 106% in the first quarter of 2026 and the second quarter of 2025, with an adjusted constant currency rate of 105%. EX ARR grew 24% year-over-year, and Freddy AI Copilot is attached to over 71% of new enterprise deals. #### Outlook Freshworks Inc. projects third-quarter 2026 revenue between $244.5 million and $245.5 million, representing approximately 14% year-over-year growth, with non-GAAP income from operations expected to be between $59.0 million and $61.0 million. For the full year 2026, total revenue is forecasted between $963.5 million and $966.5 million, and non-GAAP income from operations is anticipated to range from $222.0 million to $228.0 million. The restructuring plan was substantially complete as of June 30, 2026, and no additional material charges related to this plan are expected. ### Related Stocks - [FRSH.US](https://longbridge.com/en/quote/FRSH.US.md) ## Related News & Research - [Freshworks files Form 3 for Chief Product & Tech Officer Ryan Manning](https://longbridge.com/en/news/295978767.md) - [Freshworks Conference: CFO Bets on AI, Enterprise Simplicity to Drive Growth](https://longbridge.com/en/news/295875485.md) - [First Trust Advisors LP Buys 177,963 Shares of Freshworks Inc. $FRSH](https://longbridge.com/en/news/295319027.md) - [Freshworks Freshservice gains FedRAMP In-Process status for Moderate certification](https://longbridge.com/en/news/295107128.md) - [Gran Tierra Energy amends 8-K to file share sale and purchase agreement exhibit](https://longbridge.com/en/news/295388778.md)