Filing Flows › Freshworks (FRSH) › Q1 2025
Freshworks (FRSH) Q1 2025 earnings results (first quarter 2025)
10-Q filed Apr 29, 2025
Freshworks (FRSH) reported revenue of $196M for the first quarter 2025 (Q1 2025), +19% from a year earlier and +0.9% from the quarter before. Operating margin was -5.3%, net loss $1.3M (0.7% of revenue).
Freshworks, Q1 2025: revenue $196M (+19% year over year), operating margin -5.3%, net loss $1.3M, operating cash flow $58.0M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $196M | +0.9% | +19% |
| Operating profit | −$10.4M | — | — |
| Net earnings | −$1.3M | — | — |
| Operating cash flow | $58.0M | +40% | +43% |
| Free cash flow | $55.4M | — | +43% |
What changed
Revenue was $196.3M in Q1 2025, up 19% year over year and up 1% from the previous quarter. Subscription services, software licenses and maintenance was the largest line at 99% of revenue. Subscription services, software licenses and maintenance added $31.6M year over year (up 19%), 102% of the total change. Professional services declined 19%.
Gross margin was 84.8%, up 0.5 points from a year earlier. Operating costs exceeded revenue by $10.4M, an operating margin of -5.3%. Operating expenses grew 3% against revenue growth of 19%. The fastest-growing cost line was Research & development (+15%). The quarter ended with a net loss of $1.3M, narrower than the previous quarter's $21.9M loss. Non-operating items added $13.0M, 508% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $58.0M (up 43% year over year). Non-cash charges added back $6.4M of depreciation and amortization and $51.7M of share-based compensation. After capitalized internal-use software, net ($1.3M) and purchases of property and equipment ($1.3M), adjusted free cash flow as the company reports it was $55.4M.
Questions
What was Freshworks' revenue in the first quarter 2025?
Freshworks (FRSH) reported revenue of $196M for the first quarter 2025 (Q1 2025), +19% from a year earlier and +0.9% from the quarter before.
Was Freshworks profitable in the first quarter 2025?
Operating loss was $10.4M (-5.3% of revenue) and net loss $1.3M.
Source: Freshworks 10-Q on SEC EDGAR.