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30. July 2025

Freshworks Boosts Revenue By 18 Despite 17M Net Loss In Q2

Freshworks Boosts Revenue By 18 Despite 17M Net Loss In Q2

Freshworks Reports Net Loss of $1.7 Mn in Q2 as Revenue Rises 18%, Exhibiting Strong Momentum Amidst Industry Changes

The Nasdaq-listed SaaS company Freshworks has reported a significant reduction in its consolidated net loss for the second quarter of 2025 (Q2 2025), marking a substantial improvement from the same period last year. The company’s revenue has also seen a substantial increase, driven by enhanced operational efficiency through the use of Artificial Intelligence (AI).

According to Dennis Woodside, CEO & President of Freshworks, “We believe our strong momentum through the first half of the year reflects that businesses are increasingly turning to Freshworks to reduce complexity. They want AI-powered employee and customer service solutions that are fast to implement, easy to use, and built to deliver results.” This statement highlights the company’s commitment to providing innovative solutions that cater to the evolving needs of its customers.

Freshworks’ Q2 2025 revenue increased by 17.5% to $204.7 million, up from $174.1 million in Q2 2024. On a quarterly basis, it rose by 4.3% to $194.6 million. This growth demonstrates the company’s ability to expand its customer base and increase its market share. The steady increase in revenue is a testament to Freshworks’ robust product offerings and its capacity to deliver value to its customers.

The generally accepted accounting principles (GAAP) loss from operations improved significantly to $8.7 million, down from $43.8 million in the same quarter a year ago. This reduction in losses reflects the company’s efforts to optimize its operational efficiency and reduce costs. The improvement in GAAP loss from operations is a significant milestone for Freshworks, demonstrating its ability to navigate challenging market conditions.

Non-GAAP income from operations jumped to $44.8 million, up from $13.1 million in Q2 2024. This increase highlights the company’s efforts to generate more revenue through its non-GAAP financial measures. The GAAP net loss per share decreased to $0.01, based on 294.4 million shares outstanding, compared to $0.07 with 299.8 million shares last year.

Freshworks reported that the number of customers contributing over $5,000 in annual recurring revenue (ARR) grew by 10% year-over-year (YoY) to reach 23,975 in the second quarter. ARR is a critical metric for SaaS companies, as it represents the total expected revenue from subscriptions, software licenses, and maintenance over the next year from all clients. The company’s ability to attract and retain high-value customers reflects its strong brand reputation and the value it delivers to its clients.

The AI service provider offers a range of employee experience solutions, including IT and enterprise service management, as well as customer service, sales, and marketing products. Freshworks’ commitment to innovation is evident in its focus on developing cutting-edge solutions that leverage AI to improve employee and customer engagement. The company’s product offerings cater to the diverse needs of businesses, providing tailored solutions that help them navigate complex operations.

The growth of Freshworks reflects the evolving demands of businesses in the modern era. As companies strive to stay competitive, they require innovative solutions that can help them reduce complexity and increase efficiency. Freshworks is well-positioned to meet these demands, leveraging AI to provide fast-to-implement, easy-to-use solutions that deliver results.

The company’s commitment to innovation and customer satisfaction is evident in its Q2 2025 financial performance. As businesses continue to navigate an increasingly complex landscape, the demand for robust SaaS solutions will only continue to grow. Freshworks’ ability to adapt and innovate will be critical in meeting this demand, positioning the company for long-term success.

The strong momentum of Freshworks is driven by its focus on developing AI-powered solutions that address the evolving needs of businesses. By leveraging AI to improve employee and customer engagement, Freshworks is well-positioned to capitalize on the growing demand for innovative SaaS solutions. With a solid track record of growth and a commitment to innovation, Freshworks is poised to continue delivering value to its customers and positioning itself as a leader in the industry.

As businesses navigate an increasingly complex landscape, they require robust solutions that can help them reduce complexity and increase efficiency. Freshworks’ AI-powered employee and customer service solutions are well-positioned to meet these demands, providing fast-to-implement, easy-to-use solutions that deliver results. With its strong momentum and commitment to innovation, Freshworks is poised for continued success in the competitive SaaS market.

Freshworks’ growth demonstrates the company’s ability to adapt to changing market conditions and navigate complex operations. By leveraging AI to improve employee and customer engagement, Freshworks has positioned itself as a leader in the industry, delivering innovative solutions that cater to the evolving needs of businesses worldwide.

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