Freshworks registers profit in Q4 of 2025

Freshworks, the Nasdaq-listed software-as-a-service (SaaS) company, registered a profit for the fourth quarter of 2025, reversing from a loss it had recorded a year and revenues grew by 14% during this period.

The company reported a profit of $39.7 million for the fourth quarter of 2025 as compared to a loss of $23.8 million in 2024. The revenue during this period touched $222.7 million.

On the performance of the company, Freshworks CEO Dennis Woodside said, “We ended the year with strong momentum, fueled by products that tackle complex service problems in an uncomplicated way. Our AI-powered software continues to be an important growth driver and path for customer expansion, and it shows in the product adoption results.”

For the full year 2025, Freshworks posted revenue of $838.8 million, up 16% from $720.4 million in 2024. The net profit rose to $13.2 million compared to a loss of $138.6 million in the prior year.

According to the company, customer momentum remained solid, with the number of customers contributing more than $5,000 in annual recurring revenue increasing 10% year-over-year to 24,762. The net dollar retention improved to 108%. The employee experience (EX) business crossed $500 million in ARR, while Enterprise Service Management and Device42 each surpassed $40 million in ARR. Freddy AI exceeded $25 million in ARR.

For 2026, Freshworks expects first-quarter revenue between $222 million and $225 million and full-year revenue between $952 million and $960 million, implying mid-teens growth.