Freshworks Inc. announced financial results for its first quarter ended March 31, 2026
"Freshworks began Q1 with strong momentum, building on our 2025 successes and achieving our sixth straight quarter of exceeding expectations," stated Dennis Woodside, CEO & President of Freshworks. "High demand for our Employee Experience (EX) platform is fueling market traction, characterized by accelerating EX ARR, growing AI Copilot revenue, and strong net dollar retention. We are strategically investing in the EX opportunity as our approach continues to resonate with our customers. Freshworks is focused on delivering long-term value to shareholders and customers through sustainable growth and increased profitability."
First Quarter 2026 Financial Summary Results
Revenue: Total revenue was $228.6 million, representing growth of 16% compared to total revenue of $196.3 million in the first quarter of 2025, and 14% adjusting for constant currency.
GAAP (Loss) from Operations: GAAP (loss) from operations was $(8.1) million, representing an operating margin of (3.5)%, compared to $(10.4) million in the first quarter of 2025, representing an operating margin of (5.3)%.
Non-GAAP Income from Operations: Non-GAAP income from operations was $41.0 million, representing a non-GAAP operating margin of 17.9%, compared to $46.4 million in the first quarter of 2025, representing a non-GAAP operating margin of 23.6%.
GAAP Net (Loss) Per Share: GAAP diluted net (loss) per share was $(0.02) based on 283.3 million weighted-average shares outstanding, compared to $0.00 based on 301.3 million weighted-average shares outstanding in the first quarter of 2025.
Non-GAAP Net Income Per Share: Non-GAAP diluted net income per share was $0.11 based on 284.3 million weighted-average shares outstanding, compared to $0.18 based on 306.0 million weighted-average shares outstanding in the first quarter of 2025.
Net Cash Provided by Operating Activities: Net cash provided by operating activities was $62.4 million, representing an operating cash flow margin of 27.3%, compared to $58.0 million in the first quarter of 2025, representing an operating cash flow margin of 29.5%.
Adjusted Free Cash Flow: Adjusted free cash flow was $55.8 million, representing an adjusted free cash flow margin of 24.4%, compared to $55.4 million in the first quarter of 2025, representing an adjusted free cash flow margin of 28.2%.
Cash, Cash Equivalents, Restricted Cash and Marketable Securities: Cash, cash equivalents, restricted cash and marketable securities were $780.4 million as of March 31, 2026.
All financial numbers for 2026 include the results of our FireHydrant business. A description of non-GAAP financial measures is contained in the section titled “Explanation of Non-GAAP Financial Measures” below and a reconciliation of GAAP to non-GAAP financial measures is detailed in the tables below.
First Quarter Operating Metrics and Recent Business Highlights
Number of customers contributing more than $100,000 in ARR was 1,646, an increase of 29% year-over-year and 26% adjusting for constant currency.
Number of customers contributing more than $50,000 in ARR was 3,938, an increase of 22% year-over-year and 20% adjusting for constant currency.
Number of customers contributing more than $5,000 in ARR was 25,088, an increase of 8% year-over-year and 7% adjusting for constant currency.
Net dollar retention rate was 106%, compared to 108% in the fourth quarter of 2025 and 105% in the first quarter of 2025. Adjusted for constant currency, net dollar retention rate was 105%, compared to 104% in the fourth quarter of 2025 and 105% in the first quarter of 2025.
Welcomed and onboarded many new customers to the Freshworks community including Eagle Materials, Everbridge, G4S, Outreach, and University of Connecticut.
Landed the two largest deals in Freshworks' history, including the first $1 million-plus ARR deal.
Integrated Device42’s infrastructure discovery and mapping capabilities natively into Freshservice, giving teams a single AI-powered platform to manage assets, services, and operations.
Unified our global sales organization and appointed Ian Tickle as Chief Revenue Officer.
Introduced a new leader with Kuntal Vahalia joining as Senior Vice President of Global Channels and Alliances.
Financial Outlook
We are providing estimates for the second quarter and for the full year 2026. We emphasize that these estimates are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements” below.
Revenue and non-GAAP income from operations are based on exchange rates as of May 1, 2026 for currencies other than USD. (2) Non-GAAP net income per share was estimated assuming 280 million and 281 million weighted-average shares outstanding for the first quarter and full year 2026, respectively.
These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
We have not reconciled our second quarter and full year 2026 estimates for non-GAAP financial measures, including our estimated non-GAAP income from operations and non-GAAP net income per share, disclosed above, and our estimated non-GAAP tax rate, disclosed below, to GAAP due to the uncertainty and potential variability of expenses that may be incurred in the future.
Accordingly, a reconciliation is not available without unreasonable effort and we are unable to address the probable significance of the unavailable information. We have provided a reconciliation of other GAAP to non-GAAP financial measures in the financial statement tables for our first quarter 2026 and 2025 non-GAAP results included in this press release.
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