Freshworks hit profitability in 2025, boosted by tax benefits and cost cuts, with strong revenue, cash flow, and AI-driven growth.

Freshworks reported strong Q4 2025 results, achieving its first full-year profitability with $191.4 million in GAAP net income, driven by one-time tax benefits and reduced stock-based compensation. Revenue rose 14% year-over-year to $222.7 million, surpassing estimates for the fifth straight quarter, while free cash flow reached $223 million for the year. Annual recurring revenue hit $907 million, up 18%, with employee experience (EX) surpassing $500 million in ARR. The company unified its CX platform, expanded EX through acquisitions, and saw growing adoption of its AI-powered Freddy platform. Despite a slight miss on fiscal 2026 EPS guidance, net revenue retention remained strong at 104%, and billings grew 16.7%.