Freshworks Inc
F:7DF
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Freshworks Inc
F:7DF
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Freshworks Inc
Freshworks makes business software that helps companies manage customer support, sales, and internal IT requests. Its main products include help desk tools, customer relationship software, and IT service management software, all delivered through the cloud and sold as subscriptions. The company focuses on making software that is simpler and faster to set up than the larger enterprise systems many businesses struggle with. Its customers are usually small and midsize businesses, along with some larger organizations that want easier-to-use software for their frontline teams. These companies use Freshworks to track customer tickets, manage sales leads, answer employee support requests, and organize work across service teams. Freshworks makes money mainly by charging recurring subscription fees for access to its software. What makes Freshworks different is its role as a practical, lower-friction alternative in the business software market. Instead of selling one huge system, it sells focused products that solve everyday support and service problems for companies that want quick adoption and straightforward pricing. That puts it in the middle of the workflow between a business’s customers or employees and the teams that respond to their requests.
Freshworks makes business software that helps companies manage customer support, sales, and internal IT requests. Its main products include help desk tools, customer relationship software, and IT service management software, all delivered through the cloud and sold as subscriptions. The company focuses on making software that is simpler and faster to set up than the larger enterprise systems many businesses struggle with.
Its customers are usually small and midsize businesses, along with some larger organizations that want easier-to-use software for their frontline teams. These companies use Freshworks to track customer tickets, manage sales leads, answer employee support requests, and organize work across service teams. Freshworks makes money mainly by charging recurring subscription fees for access to its software.
What makes Freshworks different is its role as a practical, lower-friction alternative in the business software market. Instead of selling one huge system, it sells focused products that solve everyday support and service problems for companies that want quick adoption and straightforward pricing. That puts it in the middle of the workflow between a business’s customers or employees and the teams that respond to their requests.
Beat: Freshworks said Q1 revenue, profitability and free cash flow all came in above expectations, with revenue up 16% year over year and non-GAAP operating margin at 18%.
EX momentum: Employee experience remained the main growth engine, with EX ARR up 27% year over year and the two largest deals in company history closed in the quarter.
AI push: Management said AI is becoming a core part of the sales pitch, with Freddy AI Copilot growth above 80% year over year and more than 20% AI penetration in EX.
Restructuring: Freshworks announced an 11% workforce reduction to simplify operations, focus more on EX and use AI and automation more aggressively.
Guidance: Full-year revenue guidance was raised to $958 million to $964 million, and the company now expects about $265 million of adjusted free cash flow for 2026.
