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SaaS firm Freshworks registered an 18% year-on-year growth in the second quarter of the ongoing calendar year (2025). Meanwhile, the company narrowed its losses from operations by 80% during the same period. Freshworks operating revenue grew to $204.7 million in the quarter ending June 2025 from $174 million in Q2 CY24, its regulatory filing accessed from NASDAQ shows.
“With an 18% year-over-year revenue growth to $204.7 million, a 29% operating cash flow margin, and a 27% adjusted free cash flow margin, Freshworks delivered another strong quarter, surpassing our previously provided financial estimates in Q2.” stated Dennis Woodside, the company’s President and CEO.
The company’s revenue increased by 4% from $196 million in the first quarter of CY25. It increased by 20.8% during the course of the fiscal year, from $596 million in CY23 to $720 million in CY24. Through a range of products including Freshservice, Freshdesk, Freshmarketer, Freshchat, and Freshsales, Freshworks offers marketing, sales, support, and IT solutions to multinational corporations. On the expense side, Freshworks’ sales and marketing accounted for 52% of total spending, which decreased by 8.7% to $95 million in Q2 of CY25. In Q2 of CY25, the company’s total expenses amounted to $182 million due to expenditures on personnel, research, and general overhead. In the full fiscal year of CY25, the firm expects to generate sales between $822.9 million and $828.9 million, with a YoY growth of 14% to 15%.
About Freshworks
Freshworks has been founded in 2010 by Girish Mathrubootham, Shan Krishnasamy, and Vijay Shankar in Chennai. Freshworks is a cloud-based, SaaS company providing customer engagement software, including solutions for support, sales, and marketing. They offer a suite of products designed to help businesses improve customer relationships, streamline operations, and increase efficiency. Freshworks is headquartered in San Mateo, California, but was originally founded in Chennai, India. With a focus on enabling all kinds of big and small companies and their increasing requirements, Freshworks builds and distributes easy-to-use SaaS software, and helps all of its customers drive clear business results.