Filing Flows › Freshworks (FRSH) › How it makes money
How Freshworks (FRSH) makes money
Freshworks (FRSH) made $245M of revenue in the third quarter 2026 (Q3 2026), +14% from a year earlier. Subscription services, software licenses and maintenance brought in $243M (99%); Professional services brought in $2.7M (1%). Of every dollar of revenue, 85¢ was left as gross profit, 11¢ was left as operating profit, 7¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Subscription services, software licenses and maintenance | $243M | 98.9% | +3% | +14% |
| Professional services | $2.7M | 1.1% | -3% | +27% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $245M | 100.0% |
| Cost of revenue | $36.0M | 14.7% |
| Gross profit | $209M | 85.3% |
| Operating expenses | $181M | 73.8% |
| Operating profit | $28.2M | 11.5% |
| Income tax | $14.3M | 5.8% |
| Net earnings | $18.3M | 7.5% |
| Operating cash flow | $77.7M | 31.7% |
| Free cash flow | $73.9M | 30.1% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $245M | +14% |
| Q2 2026 | $237M | +16% |
| Q1 2026 | $229M | +16% |
| Q4 2025 | $223M | +14% |
| Q3 2025 | $215M | +15% |
| Q2 2025 | $205M | +18% |
| Q1 2025 | $196M | +19% |
From Freshworks' 10-Q filed Nov 3, 2026 (on EDGAR).
Questions
How does Freshworks make money?
Freshworks (FRSH) made $245M of revenue in the third quarter 2026 (Q3 2026), +14% from a year earlier. Subscription services, software licenses and maintenance brought in $243M (99%); Professional services brought in $2.7M (1%). Of every dollar of revenue, 85¢ was left as gross profit, 11¢ was left as operating profit, 7¢ was left as net earnings.
What is Freshworks' biggest business?
Subscription services, software licenses and maintenance: $243M in the third quarter 2026, 99% of revenue, +14% from a year earlier.
What is Freshworks' profit margin?
Net earnings were $18.3M, 7.5% of revenue, in the third quarter 2026; the operating margin was 11.5%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.