Freshworks Q3: Loss Narrows 84% YoY To $4.7 Mn

SUMMARY

The company’s revenue jumped 15.3% to $215.1 Mn during the quarter under review from $186.6 Mn in Q3 2024

Freshworks managed to trim its quarterly expenses by almost 3% to $189.6 Mn from $182.2 Mn in the year-ago quarter

Freshworks expects its fourth quarter revenue to grow 12% to 13% on a YoY basis, while it sees full year 2025 revenue increasing 16% YoY

Nasdaq-listed SaaS major Freshworks narrowed its consolidated net loss by 84.4% to $4.7 Mn in the third quarter of the calendar year 2025 (Q3 2025) from almost $30 Mn in the previous year on the back of a steady rise in customer adoption and strong top line growth.

However, loss widened 2.8X from $1.7 Mn in Q2 2025.

The company’s revenue jumped 15.3% to $215.1 Mn during the quarter under review from $186.6 Mn in Q3 2024. On a quarterly basis, it grew 5% from $204.7 Mn.

Freshworks managed to trim its quarterly expenses by almost 3% to $189.6 Mn from $182.2 Mn in the year-ago quarter.

The company said the number of customers contributing more than $5,000 in annual recurring revenue (ARR) stood at 24,377 during the quarter, up 9% YoY.

ARR comprises the sum total of subscription, software licence, and maintenance revenue that the company would contractually expect to recognise over the next 12 months from all customers at a point in time.

Freshworks expects its fourth quarter revenue to grow 12% to 13% on a YoY basis, while it sees full year 2025 revenue increasing 16% YoY.

Commenting on the results, chief executive and president Dennis Woodside said that the company once again exceeded its previously issued estimates across growth and profitability metrics.

Founded in 2010 by Girish Mathrubootham and Shanmugam Krishnasamy, Freshworks went public in September 2021, making its debut on the Nasdaq. Since its listing, the company has seen a number of changes, including a major reshuffle at the top level and increased focus on AI.

After transitioning to the role of executive chairman from CEO in 2024, Mathrubootham announced in September this year that he would be exiting the company, effective December 1. He is stepping away to fully focus on the VC fund he cofounded, Together Fund.