Freshworks Swings To $18 Mn Profit In Q3, Revenue Rises 14% YoY To $245 Mn

The software-as-a-service (SaaS) firm Freshworks reported a strong third quarter of 2026, swinging to an $18.3 million consolidated net profit from a $4.7 million loss the prior year. Revenue surged 14% year-over-year to $245.4 million, up from $215.1 million in Q3 2025. Revenue growth accelerated sequentially by 3.4% to $237.4 million, while net profit rose from $3.2 million to $18.3 million.

Expenses fell 4.4% to $181.2 million, driven by a 4.4% decline in operating expenses from $189.6 million to $181.2 million. Freshworks' CEO Dennis Woodside credited the company's strategy of targeting larger customers as a key driver of its quarterly results. New deals involving multiple employee experience products increased by more than 35%, with partners contributing to more than half of Freshworks' new business.

The number of customers generating over $100,000 in annual recurring revenue (ARR) climbed 25% to 1,821, while customers exceeding $50,000 in ARR grew 18% to 4,257. Freshworks surpassed the $1 billion ARR milestone after the quarter ended, beating its earlier year-end target. Despite this revenue growth, the company's net dollar retention (NDR) rate remained flat at 104% sequentially, down from 105% a year earlier.

Freshworks has been positioning itself as an AI-powered service operations platform, encompassing customer experience, employee experience, and IT service management. The company raised its full-year outlook for 2026, forecasting revenue between $253.5 million and $254.5 million, representing approximately 14% growth. For the full year, Freshworks expects revenue between $965 million and $966 million, indicating a growth of around 15%.