FRSH · Freshworks Inc.

Freshworks reported Q1 2026 revenue of $228.6 million, up 16% year-over-year, exceeding its own expectations. Non-GAAP income from operations was $41.0 million, representing a 17.9% margin, down from 23.6% in the prior year due to increased investments. The company highlighted strong demand for its Employee Experience (EX) platform, accelerating EX ARR, and growing AI Copilot revenue. It landed the two largest deals in company history, including a $1 million-plus ARR deal. Net dollar retention rate was 106%, down from 108% in Q4 2025 but stable year-over-year. The company also announced a restructuring plan to streamline operations and increase AI/automation leverage, affecting approximately 500 employees (11% of workforce) with estimated charges of $7-9 million in Q2 2026. For Q2 2026, Freshworks guided revenue of $232-235 million (13-15% YoY growth) and non-GAAP income from operations of $41-43 million. The restructuring and guidance suggest a focus on profitability amid moderating growth.