Freshworks posts $205 Mn revenue in Q2 CY25, cuts losses by 80%

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.

“Freshworks delivered another strong quarter, exceeding our previously provided financial estimates in Q2 with 18% year-over-year revenue growth to $204.7 million, a 29% operating cash flow margin, and 27% adjusted free cash flow margin,” said Dennis Woodside, Chief Executive Officer and President of Freshworks.

The company registered a 4% Quarter-on-quarter growth from $196 million in Q1 CY25. For the full fiscal year it registered 20.8% growth from $596 million in CY23 to $720 million in CY24.

Freshworks provides marketing, sales, support, and IT solutions through a portfolio of products: Freshservice, Freshdesk, Freshmarketer, Freshchat, and Freshsales to global companies.

Moving over to the cost side, Freshworks’s sales and marketing formed 52% of the overall expenditure, which saw a decline of 8.7% to $95 million in Q2 CY25. The company’s spending on research, employees, and general overhead took the overall cost to $182 million in Q2 CY25.

The decent increase in growth and controlled cost mechanism helped Freshworks to reduce its losses from operations by 80% to $9 million in Q2 CY25 from $44 million in Q2 CY25.

The company anticipates generating revenue between $822.9 million and $828.9 million in the full financial year of CY25, with an YoY growth between 14%-15%.