Revenue grew from $174.1M in 2024Q2 to $245.4M in 2026Q3 with gross margin holding at 84% to 86%, while operating margin swung from -25.1% to 11.5% but remained uneven, with losses still appearing in 2026Q1 and 2025Q3.
Freshworks Inc. (FRSH) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Sales/Revenue | 934.18M | 838.81M | 720.42M | 596.43M | 498M | 371.02M | 249.66M | 172.38M | 126.43M | 118.66M | 126.88M | 120.21M | 97.4M |
| Revenue Growth % | 15.24% | 16.43% | 20.79% | 19.77% | 34.22% | 48.61% | 44.83% | 36.34% | 6.55% | -6.48% | 5.55% | 23.42% | - |
| Cost of Goods Sold | 138.95M | 126.14M | 113.33M | 103.37M | 95.77M | 78.03M | 52.49M | 36.46M | 20.41M | 25.96M | 28.35M | 26.6M | 19.69M |
| COGS % of Revenue | - | 15.04% | 15.73% | 17.33% | 19.23% | 21.03% | 21.03% | 21.15% | 16.15% | 21.88% | 22.34% | 22.13% | 20.21% |
| Gross Profit | 795.23M | 712.66M | 607.09M | 493.06M | 402.23M | 292.99M | 197.17M | 135.91M | 106.01M | 92.7M | 98.54M | 93.61M | 77.71M |
| Gross Margin % | 85.13% | 84.96% | 84.27% | 82.67% | 80.77% | 78.97% | 78.97% | 78.85% | 83.85% | 78.12% | 77.66% | 77.87% | 79.79% |
| Gross Profit Growth % | - | 17.39% | 23.13% | 22.58% | 37.28% | 48.6% | 45.07% | 28.2% | 14.36% | -5.92% | 5.27% | 20.45% | - |
| Operating Expenses | 729.93M | 699.05M | 745.7M | 663.24M | 635.6M | 497.77M | 253.28M | 165.59M | 65.97M | 37.01M | 31.44M | 31.57M | 34.3M |
| OpEx % of Revenue | - | 83.34% | 103.51% | 111.2% | 127.63% | 134.16% | 101.45% | 96.06% | 52.18% | 31.19% | 24.78% | 26.26% | 35.22% |
| Selling, General & Admin | 543.52M | 535.85M | 571.45M | 525.48M | 500.06M | 377.37M | 184.07M | 127.03M | 49.73M | 33.87M | 28.11M | 28.21M | 29.26M |
| SG&A % of Revenue | - | 63.88% | 79.32% | 88.1% | 100.41% | 101.71% | 73.73% | 73.69% | 39.34% | 28.54% | 22.15% | 23.46% | 30.04% |
| Research & Development | 179.59M | 163.21M | 164.59M | 137.76M | 135.54M | 120.41M | 69.21M | 38.56M | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 19.46% | 22.85% | 23.1% | 27.22% | 32.45% | 27.72% | 22.37% | - | - | - | - | - |
| Other Operating Expenses | 782K | 0 | 9.66M | 0 | 0 | 0 | 0 | 0 | 16.23M | 3.14M | 3.33M | 3.37M | 5.04M |
| Operating Income | 65.96M | 13.61M | -138.61M | -170.17M | -233.37M | -204.78M | -56.11M | -29.67M | 11.27M | -14.27M | 9.65M | 15.63M | 15.3M |
| Operating Margin % | 7.06% | 1.62% | -19.24% | -28.53% | -46.86% | -55.19% | -22.48% | -17.21% | 8.91% | -12.02% | 7.6% | 13.01% | 15.71% |
| Operating Income Growth % | - | 109.82% | 18.55% | 27.08% | -13.96% | -264.95% | -89.12% | -363.29% | 178.98% | -247.89% | -38.29% | 2.16% | - |
| EBITDA | 97.64M | 39.47M | -119.19M | -158.03M | -221.87M | -191.49M | -44.94M | -23.41M | 18.51M | -3.82M | 21.88M | 25.64M | 23.92M |
| EBITDA Margin % | 10.45% | 4.71% | -16.55% | -26.5% | -44.55% | -51.61% | -18% | -13.58% | 14.64% | -3.22% | 17.25% | 21.33% | 24.56% |
| EBITDA Growth % | 495.09% | 133.11% | 24.57% | 28.77% | -15.87% | -326.07% | -91.98% | -226.47% | 585.06% | -117.44% | -14.64% | 7.18% | - |
| D&A (Non-Cash Add-back) | 31.68M | 25.86M | 19.41M | 12.14M | 11.5M | 13.29M | 11.17M | 6.26M | 7.24M | 10.45M | 12.24M | 10M | 8.62M |
| EBIT | 74.66M | 53.28M | -128.95M | -123.77M | -220.79M | -181.48M | -56.11M | -29.67M | 11.02M | -14.47M | 0 | 0 | 10.58M |
| Net Interest Income | 14.18M | 40.08M | 51.7M | 45.9M | 14.77M | 2.45M | 4.21M | 1.28M | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 14.18M | 40.08M | 51.7M | 45.9M | 14.77M | 2.45M | 4.21M | 1.28M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.21M | 5.08M | 0 | 0 | 8.1M |
| Other Income/Expense | 17.11M | 39.67M | 47.77M | 46.4M | 12.58M | 23.3M | 2.83M | 2.18M | -5.46M | -5.28M | -5.06M | -9.16M | -12.82M |
| Pretax Income | 83.07M | 53.28M | -90.84M | -123.77M | -220.79M | -181.48M | -53.28M | -27.49M | 5.81M | -19.55M | 4.59M | 6.48M | 2.48M |
| Pretax Margin % | 8.89% | 6.35% | -12.61% | -20.75% | -44.34% | -48.91% | -21.34% | -15.95% | 4.59% | -16.48% | 3.62% | 5.39% | 2.55% |
| Income Tax | -125.1M | -130.44M | 4.53M | 13.67M | 11.34M | 10.52M | 4.01M | 3.63M | 1.48M | -19.54M | 1.94M | 2.07M | 1.24M |
| Effective Tax Rate % | -150.61% | -244.81% | -4.99% | -11.04% | -5.14% | -5.79% | -7.54% | -13.22% | 25.54% | 99.96% | 42.31% | 31.92% | 49.74% |
| Net Income | 208.17M | 183.72M | -95.37M | -137.44M | -232.13M | -192M | -57.29M | -31.13M | 4.32M | -7K | 2.65M | 4.91M | 1.25M |
| Net Margin % | 22.28% | 21.9% | -13.24% | -23.04% | -46.61% | -51.75% | -22.95% | -18.06% | 3.42% | -0.01% | 2.09% | 4.09% | 1.28% |
| Net Income Growth % | 802.73% | 292.65% | 30.61% | 40.79% | -20.91% | -235.1% | -84.08% | -819.82% | 61871.43% | -100.26% | -46.06% | 293.51% | - |
| Net Income (Continuing) | 208.17M | 183.72M | -95.37M | -137.44M | -232.13M | -192M | -57.29M | -31.13M | 4.32M | -7K | 2.65M | 4.91M | 1.25M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.78 | 0.63 | -0.32 | -0.47 | -0.82 | -10.39 | -6.40 | -0.66 | 0.25 | -0.00 | 0.16 | 0.29 | 0.10 |
| EPS Growth % | 842.65% | 296.88% | 31.91% | 42.68% | 92.11% | -62.34% | -869.7% | -364% | - | -100.25% | -44.83% | 190% | - |
| EPS (Basic) | - | 0.63 | -0.32 | -0.47 | -0.82 | -10.39 | -6.40 | -0.66 | 0.25 | -0.00 | 0.16 | 0.29 | 0.10 |
| Diluted Shares Outstanding | 266.4M | 293.77M | 300.84M | 293.09M | 284.59M | 275.47M | 252.9M | 46.91M | 17M | 16.87M | 16.77M | 16.87M | 12.1M |
| Basic Shares Outstanding | 261.94M | 291.08M | 300.84M | 293.09M | 284.59M | 275.47M | 252.9M | 46.89M | 17M | 16.87M | 16.74M | 16.65M | 12.1M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying FRSH stock.
For fiscal year 2025, Freshworks Inc. (FRSH) reported total revenue of $838.8M. This represents a 761.2% increase compared to $97.4M in 2014.
Freshworks Inc. (FRSH) is profitable, generating $183.7M in net income for the fiscal year ending 2025 with a net profit margin of 21.9%.
Freshworks Inc. (FRSH) reported an operating income of $13.6M, resulting in an operating profit margin of 1.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Freshworks Inc. (FRSH) generated $712.7M in gross profit for the year, representing a gross profit margin of 85.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Net margin reliance on interest income
Metrics are mathematically derived from official filings.
Revenue Growth Holding Near Mid-Teens
Based on reported quarterly figures, Freshworks' revenue rose from $174.1M in 2024Q2 to $245.4M in 2026Q3, with year-over-year growth running between roughly 14% and 17% over the most recent quarters, suggesting a durable but no longer accelerating top line.
The growth rate has compressed modestly from the 20% to 21% range seen in 2024, indicating that the company is scaling a larger base rather than gaining momentum. Sustaining mid-teens expansion will depend on net dollar retention and upmarket wins, which the reported figures alone cannot confirm. Investors should monitor whether the sequential revenue step-up in the latest quarter reflects a genuine reacceleration or a temporary lift.
Gross Margin Steady Near 85 Percent
Reported gross margins have held in a tight 84% to 86% band across the ten quarters shown, which may reflect an efficient cloud delivery model with limited pricing pressure on the core subscription base.
Stability at this level across a period of rising revenue suggests that hosting and support costs scale in line with the customer base rather than ahead of it. The consistency also implies the company has not needed to trade price for volume to win accounts. Because the figures are gross rather than adjusted, the stability is a reasonable read but does not isolate the effect of any single cost category.
Operating Leverage Emerging Only Recently
Operating margin moved from roughly -25% in 2024Q2 to 11.5% in 2026Q3 according to reported figures, but the path was uneven, with 2026Q1 and 2025Q3 both showing losses despite growing revenue.
The improvement is driven largely by SG&A falling from about $148M in 2024Q2 to $137M in the latest quarter while revenue grew by more than a third, which points to real overhead discipline. The lumpy quarterly pattern, however, suggests the leverage has not yet proven durable across cycles. Operating income alone should be watched more closely than the headline profit line.
Net Income Inflated by Non-Operating Gains
Net margin of 21.9% for 2025Q4 sits far above the 17.8% operating margin and the surrounding quarters, with reported net income of $191.4M against operating income of $39.7M, which warrants further investigation into one-time or non-operating drivers.
The gap between operating and net results in the most recent profitable period appears to reflect a large non-operating or tax-related item rather than core business earnings. Such gains are typically non-recurring, so the reported EPS spike should not be extrapolated. Stock-based compensation of roughly $38M to $50M per quarter also remains a material drag on the cash profile that GAAP earnings do not fully reflect.
Sales and Marketing Dominates Cost Base
SG&A consistently represents the largest operating expense line, at about $137M to $153M per quarter across recent periods, which is roughly 55% to 65% of revenue, and the reported figures show it stepping down only gradually.
Such a heavy go-to-market cost load is consistent with a mid-market SaaS model that depends on sales capacity to sustain growth. The trend suggests management is trading some growth intensity for efficiency, though the reported data does not separate sales from general and administrative spend. R&D at roughly $40M to $49M per quarter remains comparatively modest, which may constrain product velocity against larger competitors.
Late 2024 Turn Toward Operating Breakeven
The most notable inflection appears in the 2024Q2 to 2026Q3 window, where operating margin improved from about -25% to 11.5% according to reported figures, with the sharpest move occurring as losses narrowed through 2025 and turned positive.
The shift coincides with SG&A growing far more slowly than revenue, which points to deliberate cost restructuring rather than a cyclical revenue surge. Whether this inflection is lasting depends on sustaining SG&A discipline while growth continues in the mid-teens. Since the reported quarterly margin has not yet been positive for consecutive periods of comparable strength, the durability of the turn remains an open question.
Profitability Narrative Rests on Interest Income
The strongest challenge to the income statement story is that reported net profitability, including the 21.9% net margin in 2025Q4, may be substantially supported by interest on cash balances rather than recurring software operations, a risk visible in the gap between operating and net results.
If rates decline, the non-operating contribution that lifts net income could shrink quickly, exposing a thinner underlying margin. Operating margin has been positive in only a handful of recent quarters, so the sustainability of profitability is not yet established. Investors should treat the operating line as the cleaner signal and question whether the valuation implicitly assumes non-operating income persists.