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Freshworks (FRSH) guidance and outlook
Freshworks (FRSH) reaffirmed its guidance on Nov 3, 2026: Revenue $245M for FY2026; Revenue +14% for FY2026; Net income $18.3M for FY2026; Tax rate 24% for FY2026. Freshworks' 10-Q filed Nov 3, 2026 makes 16 forward-looking statements.
Guidance and outlook
Latest guidance
| Metric | Period | Range | Change |
|---|---|---|---|
| Revenue | FY2026 | $245M | new |
| Revenue | FY2026 | +14% | new |
| Net income | FY2026 | $18.3M | new |
| Free cash flow | FY2026 | $73.9M | new |
| Free cash flow | FY2026 | +29% | new |
| Tax rate | FY2026 | 24% | reaffirmed |
From the earnings release filed Nov 3, 2026 (8-K on EDGAR).
Forward-looking statements, 10-Q filed Nov 3, 2026
- These macroeconomic events could adversely affect demand for our products and services and we expect these pressures to persist for the foreseeable future.
- We define ARR as the sum total of subscription, software license, and maintenance revenue we would contractually expect to recognize over the next 12 months from all customers at a point in time, assuming no increases, reductions, or cancellations in their subscriptions, and assuming that revenues are recognized ratably over the term of subscription and maintenance contracts and upon delivery for software licenses.
- We expect our net dollar retention rate may fluctuate more in future periods due to a number of factors, including, but not limited to, difficult macroeconomic conditions, volatility in foreign currency exchange rates, our expected growth, the level of penetration within our customer base, our ability to upsell and cross-sell products to existing customers, and our ability to retain our customers.
- In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.
- We exclude gains on sale of non-marketable equity investments from certain of our non-GAAP financial measures because we believe they are unrelated to our ongoing operating performance and are not expected to recur in our continuing operating results.
- Starting 2026, we utilize a long-term projected non-GAAP tax rate to compute our non-GAAP income tax provision in order to provide better consistency across interim reporting periods.
- Our non-GAAP tax rate reflects our estimated long-term effective tax rate based on our anticipated geographic earnings mix and statutory tax regimes.
- For fiscal year 2026, we determined the projected non-GAAP tax rate to be 24%.
- We have not provided a reconciliation of our projected non-GAAP tax rate for fiscal year 2026 to GAAP due to the uncertainty and potential variability of the items we exclude from our GAAP financial measures to calculate our non-GAAP financial measures and the resulting income tax effects of such items.
- We expect our cost of revenue to continue to increase in dollar amount as we invest additional resources in our cloud-based infrastructure and customer support and professional services organizations.
- We believe that continued investment in our products is important for our growth, and as such, we expect that our research and development expenses will continue to increase in dollar amount for the foreseeable future, but such expenses as a percentage of revenue may fluctuate from period to period depending upon the timing and amount of these expenses.
- We expect to continue to make significant investments as we expand our customer acquisition, retention efforts and marketing events and associated business travel.
Freshworks' latest quarter
Freshworks, Q3 2026: revenue $245M (+14% year over year), operating margin 11.5%, net earnings $18.3M, operating cash flow $77.7M. The chart follows the revenue to costs, profit and cash.
Questions
Did Freshworks raise or lower its guidance?
Freshworks (FRSH) reaffirmed its guidance on Nov 3, 2026: Revenue $245M for FY2026; Revenue +14% for FY2026; Net income $18.3M for FY2026; Tax rate 24% for FY2026.
What does Freshworks expect?
These macroeconomic events could adversely affect demand for our products and services and we expect these pressures to persist for the foreseeable future. We define ARR as the sum total of subscription, software license, and maintenance revenue we would contractually expect to recognize over the next 12 months from all customers at a point in time, assuming no increases, reductions, or cancellations in their subscriptions, and assuming that revenues are recognized ratably over the term of subscription and maintenance contracts and upon delivery for software licenses. We expect our net dollar
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.