Filing Flows › Freshworks (FRSH) › Q2 2025
Freshworks (FRSH) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 29, 2025
Freshworks (FRSH) reported revenue of $205M for the second quarter 2025 (Q2 2025), +18% from a year earlier and +4% from the quarter before. Operating margin was -4.2%, net loss $1.7M (0.8% of revenue).
Freshworks, Q2 2025: revenue $205M (+18% year over year), operating margin -4.2%, net loss $1.7M, operating cash flow $58.6M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $205M | +4% | +18% |
| Operating profit | −$8.7M | — | — |
| Net earnings | −$1.7M | — | — |
| Operating cash flow | $58.6M | +1% | +61% |
| Free cash flow | $54.3M | — | — |
What changed
Revenue was $204.7M in Q2 2025, up 18% year over year and up 4% 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 $30.4M year over year (up 18%), 99% of the total change.
Gross margin was 84.8%, up 1.0 points from a year earlier. Operating costs exceeded revenue by $8.7M, an operating margin of -4.2%. Operating expenses fell 4% while revenue rose 18%. The quarter ended with a net loss of $1.7M, wider than the previous quarter's $1.3M loss. Non-operating items added $12.5M, 322% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $58.6M (up 61% year over year). Non-cash charges added back $6.3M of depreciation and amortization and $49.3M of share-based compensation. Working capital and other items added $4.8M. After capitalized internal-use software, net ($3.9M) and purchases of property and equipment ($380K), adjusted free cash flow as the company reports it was $54.3M.
Questions
What was Freshworks' revenue in the second quarter 2025?
Freshworks (FRSH) reported revenue of $205M for the second quarter 2025 (Q2 2025), +18% from a year earlier and +4% from the quarter before.
Was Freshworks profitable in the second quarter 2025?
Operating loss was $8.7M (-4.2% of revenue) and net loss $1.7M.
Source: Freshworks 10-Q on SEC EDGAR.