Freshworks Inc. (Nasdaq: FRSH), a leading provider of user-friendly software designed to enhance both employee and customer experiences, has announced its financial results for the first quarter of 2026, ending March 31. The results reveal a robust performance, continuing the company's trend of exceeding expectations for the sixth consecutive quarter.

1. Strong Momentum and Strategic Focus

Dennis Woodside, CEO and President of Freshworks, highlighted the company's strong start to 2026, emphasizing the robust demand for their Employee Experience (EX) platform. "High demand for our Employee Experience (EX) platform is fueling market traction, characterized by accelerating EX ARR, growing AI Copilot revenue, and strong net dollar retention," stated Woodside. He further noted that Freshworks is committed to investing in the EX opportunity, which is resonating well with customers and contributing to sustainable growth and profitability.

2. First Quarter 2026 Financial Summary

Freshworks' financial results for Q1 2026 reflect significant growth across various metrics:

Total Revenue: The company reported total revenue of $228.6 million, a 16% increase from $196.3 million in Q1 2025. When adjusted for constant currency, revenue growth stands at 14%.

GAAP Loss from Operations: Freshworks posted a GAAP loss from operations of $(8.1) million, translating to an operating margin of (3.5%). This marks an improvement from a loss of $(10.4) million in Q1 2025, which represented an operating margin of (5.3%).

Non-GAAP Income from Operations: Non-GAAP income from operations was reported at $41.0 million, resulting in a non-GAAP operating margin of 17.9%. This is a decline from $46.4 million and a margin of 23.6% in the same quarter last year.

GAAP Net Loss Per Share: The company reported a GAAP diluted net loss per share of $(0.02), based on 283.3 million weighted-average shares outstanding, compared to $0.00 per share on 301.3 million shares in Q1 2025.

Non-GAAP Net Income Per Share: Non-GAAP diluted net income per share stood at $0.11, based on 284.3 million weighted-average shares outstanding, down from $0.18 per share with 306.0 million shares a year prior.

Cash Flow Performance: Net cash provided by operating activities increased to $62.4 million, yielding an operating cash flow margin of 27.3%, compared to $58.0 million and a margin of 29.5% in the previous year. Adjusted free cash flow was reported at $55.8 million, with an adjusted free cash flow margin of 24.4%, slightly up from $55.4 million and a margin of 28.2% in Q1 2025.

Cash Position: As of March 31, 2026, Freshworks had a strong liquidity position, with cash, cash equivalents, restricted cash, and marketable securities totaling $780.4 million.

3. Looking Ahead

With its continued focus on the Employee Experience platform and commitment to enhancing customer satisfaction, Freshworks is well-positioned for future growth. The company’s strategic investments and innovative solutions are expected to bolster its competitive edge in the software market.

As Freshworks navigates through 2026, it remains dedicated to delivering long-term value to its shareholders and customers, reinforcing its reputation as a leader in uncomplicated, effective software solutions. The ongoing momentum and positive financial trajectory are likely to attract further attention from investors and analysts alike in the coming quarters.

Original press release