Overview

* Freshworks Q3 2025 revenue grows 15% yr/yr, beating analyst expectations

* Non-GAAP income from operations was $45.2 mln, up from $24.0 mln in Q3 2024

* Company reports growth in AI-driven solutions and customer base expansion

Outlook

* Freshworks ( FRSH ) raises full-year 2025 revenue guidance to $833.1 mln - $836.1 mln

* Company expects Q4 2025 revenue between $217 mln and $220 mln

* Freshworks ( FRSH ) projects full-year 2025 non-GAAP EPS of $0.62 - $0.64

Result Drivers

* AI ADOPTION - Freshworks ( FRSH ) attributes growth to increased adoption of AI in its software solutions, enhancing productivity and customer satisfaction

* FREDDY AI GROWTH - Freddy AI products doubled in annual recurring revenue, contributing to overall growth

* ESM EXPANSION - Expanded Enterprise Service Management offerings contributed to revenue growth, with ESM annual recurring revenue surpassing $35 mln

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $215.12 $208.90

Revenue mln mln (11

Analysts

)

Q3 Net -$4.68

Income mln

Q3 -$52,000

Pretax

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Freshworks Inc ( FRSH ) is $19.00, about 42.5% above its November 4 closing price of $10.92

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)