Freshworks posts $215 Mn revenue in Q3 CY25; narrows losses

NASDAQ-listed SaaS company Freshworks delivered a strong third quarter for 2025. The Chennai-born, San Mateo-headquartered firm reported $215 million in revenue, a 15% increase year-over-year from $186.6 million in Q3 2024.

On a quarter-on-quarter basis, its revenue has increased modestly by 5%, compared to $204.7 million in Q2 CY25, as shown in its regulatory filing accessed from NASDAQ.

According to the filings, its GAAP loss from operations nosedived by 80.7% to $7.5 million, compared with $38.9 million a year earlier. On a non-GAAP basis, income from operations surged to $45.2 million, implying a 21% margin, versus 12.8% in the year-ago quarter.

As per the company,  the number of customers contributing more than $5,000 in annual recurring revenue (ARR) grew 9% YoY to 24,377. The company’s net dollar retention rate came in at 105%.

For the fourth quarter, Freshworks expects revenue between $217 million and $220 million, representing 12–13% YoY growth. The firm also raised its full-year FY25 guidance to $833–836 million, implying 16% annual growth.

“Once again, Freshworks exceeded our estimates across growth and profitability metrics,” CEO Dennis Woodside said, adding that demand for AI-powered software continues to drive platform adoption across enterprises.

The company’s cash, cash equivalents, and marketable securities stood at $813.2 million as of September 30, 2025. With sustained margin expansion, good cash flows, and renewed FY25 optimism, Freshworks appears to be balancing growth and profitability more effectively than most mid-tier SaaS peers.