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.