Form 8-K

8-K — Freshworks Inc.

Accession: 0001544522-26-000135

Filed: 2026-08-04

Period: 2026-08-04

CIK: 0001544522

SIC: 7372 (SERVICES-PREPACKAGED SOFTWARE)

Item: Results of Operations and Financial Condition

Item: Cost Associated with Exit or Disposal Activities

Item: Financial Statements and Exhibits

Documents

8-K — frsh-20260804.htm (Primary)

EX-99.1 (q226quarterlyearningsrelea.htm)

GRAPHIC (frshlogo.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: frsh-20260804.htm · Sequence: 1

frsh-20260804

0001544522FALSE00015445222026-08-042026-08-04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 4, 2026

FRESHWORKS INC.

(Exact name of Registrant as Specified in Its Charter)

Delaware 001-40806 33-1218825

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

2950 S. Delaware Street, Suite 201

San Mateo, CA 94403

(Address of Principal Executive Offices and Zip Code)

(650) 513-0514

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

Class A Common Stock, $0.00001 par value per share FRSH The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On August 4, 2026, Freshworks Inc. issued a press release announcing its financial results for the second quarter ended June 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The foregoing information (including Exhibit 99.1 hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, regardless of any general incorporation language in such filings, except as shall be expressly set forth by specific reference in such filing.

Item 2.05 Costs Associated with Exit or Disposal Activities.

In May 2026, the Company announced a restructuring plan (the Plan) to streamline the Company’s organizational efforts and product development process, as well as increase leverage of AI and automation across the business. During the three and six months ended June 30, 2026, we recognized $7.0 million in restructuring charges primarily associated with employee severance and benefit costs, in our condensed consolidated statements of operations. During the three and six months ended June 30, 2026, we paid $5.6 million of the restructuring costs, resulting in an unpaid restructuring liability of $1.4 million as of June 30, 2026, which is included in accrued liabilities in our condensed consolidated balance sheets. The Plan is substantially complete as of June 30, 2026, and the Company does not expect to incur any additional material charges.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No. Description

99.1

Press Release dated August 4, 2026

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Freshworks Inc.

Dated: August 4, 2026

By: /s/ Tyler Sloat

Tyler Sloat

Chief Operating Officer and Chief Financial Officer (Principal Financial Officer)

EX-99.1

Filename: q226quarterlyearningsrelea.htm · Sequence: 2

Document

Freshworks Reports Record Second Quarter 2026 Results

Beats revenue and profitability expectations, raises full year estimates

•Total revenues of $237.4 million, representing 16% year-over-year growth

•Positive GAAP Net Income of $3.2 million, representing the Company’s first quarter of GAAP profitability in 2026

•Achieved the 8th consecutive quarter of Rule of 40 demonstrating consistent growth and profitability

San Mateo, Calif. – August 4, 2026 – Freshworks Inc. (Nasdaq: FRSH), today announced financial results for its second quarter ended June 30, 2026.

"Freshworks just delivered its seventh straight quarter beating revenue estimates, its eighth consecutive quarter hitting Rule of 40, and a milestone we said we'd hit - GAAP profitability, months ahead of plan. This isn't just a moment, this has been a pattern of execution," stated Dennis Woodside, CEO & President of Freshworks. "EX ARR grew 24% year-over-year, and Freddy AI Copilot is now attached to over 71% of new enterprise deals. Customers aren't testing AI with us, they’re adopting and using Freddy AI. We built a platform for the mid-market and agile enterprise that we believe no one else can match, and we're demonstrating you can grow fast, stay disciplined, and be profitable all at the same time. This is what a durable, category-defining business should look like."

Second Quarter 2026 Financial Summary Results

•Revenue: Total revenue was $237.4 million, representing growth of 16% compared to total revenue of $204.7 million in the second quarter of 2025, and 15% adjusting for constant currency.

•GAAP Income (Loss) from Operations: GAAP income (loss) from operations was $6.1 million, representing an operating margin of 2.6%, compared to $(8.7) million, representing an operating margin of (4.2)%, in the second quarter of 2025.

•Non-GAAP Income from Operations: Non-GAAP income from operations was $55.9 million, representing a non-GAAP operating margin of 23.6%, compared to $44.8 million, representing a non-GAAP operating margin of 21.9%, in the second quarter of 2025.

•GAAP Net Income (Loss) Per Share: GAAP diluted net income (loss) per share was $0.01 based on 273.0 million weighted-average shares outstanding, compared to $(0.01) based on 294.4 million weighted-average shares outstanding in the second quarter of 2025.

•Non-GAAP Net Income Per Share: Non-GAAP diluted net income per share was $0.17 based on 273.0 million weighted-average shares outstanding, compared to $0.18 based on 297.3 million weighted-average shares outstanding in the second quarter of 2025.

•Net Cash Provided by Operating Activities: Net cash provided by operating activities was $58.5 million, representing an operating cash flow margin of 24.7%, compared to $58.6 million, representing an operating cash flow margin of 28.6%, in the second quarter of 2025.

•Adjusted Free Cash Flow: Adjusted free cash flow was $57.7 million, representing an adjusted free cash flow margin of 24.3%, compared to $54.3 million, representing an adjusted free cash flow margin of 26.5%, in the second quarter of 2025 .

•Cash, Cash Equivalents, Restricted Cash and Marketable Securities: Cash, cash equivalents, restricted cash and marketable securities were $665.3 million as of June 30, 2026.

All financial numbers for 2026 include the results of our FireHydrant business. A description of non-GAAP financial measures is contained in the section titled “Explanation of Non-GAAP Financial Measures” below and a reconciliation of GAAP to non-GAAP financial measures is detailed in the tables below.

Second Quarter Metrics and Recent Business Highlights

•Number of customers contributing more than $100,000 in ARR was 1,746, an increase of 25% year-over-year and 26% adjusting for constant currency.

•Number of customers contributing more than $50,000 in ARR was 4,091, an increase of 18% year-over-year and 19% adjusting for constant currency.

•Number of customers contributing more than $5,000 in ARR was 25,356, an increase of 6% year-over-year and 6% adjusting for constant currency.

•Net dollar retention rate was 104%, compared to 106% in the first quarter of 2026 and 106% in the second quarter of 2025. Adjusted for constant currency, net dollar retention rate was 105%, compared to 105% in the first quarter of 2026 and 104% in the second quarter of 2025.

•Announced AI Agent Studio and MCP Gateway for Freshservice.

•Welcomed and onboarded many new customers to the Freshworks community including Van Marcke, Hydrite Chemical, Simpar, Upland Software, Paddle, and Open Health Communications.

•Appoints Ryan Manning as Chief Product and Technology Officer.

•Named a Leader in the 2026 Gartner® Magic Quadrant™ for IT Service Management Platforms.

Financial Outlook

We are providing estimates for the third quarter and for the full year 2026. We emphasize that these estimates are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements” below.

For the third quarter and full year 2026, we currently expect the following results:

($ in millions, except per share data) Third Quarter 2026 Full Year 2026

Revenue(1)

$244.5 - $245.5 $963.5 - $966.5

Year-over-year growth ~14% ~15%

Year-over-year growth (constant currency) 14% - 15% 14% - 15%

Non-GAAP income from operations(1)

$59.0 - $61.0 $222.0 - $228.0

Non-GAAP net income per share(2)

$0.18 $0.66 - $0.68

(1) Revenue and non-GAAP income from operations are based on exchange rates as of August 1, 2026 for currencies other than USD.

(2) Non-GAAP net income per share was estimated assuming 265.8 million and 272.8 million weighted-average shares outstanding for the third quarter and full year 2026, respectively.

These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

We have not reconciled our third quarter and full year 2026 estimates for non-GAAP financial measures to GAAP due to the uncertainty and potential variability of expenses that may be incurred in the future. Accordingly, a reconciliation is not available without unreasonable effort and we are unable to address the probable significance of the unavailable information. We have provided a reconciliation of other GAAP to non-GAAP financial measures in the financial statement tables for our second quarter 2026 and 2025 non-GAAP results included in this press release.

Webcast and Conference Call Information

We will host a conference call for investors on August 4, 2026 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss the Company’s financial results and business highlights. Investors are invited to listen to a live audio webcast of the conference call by visiting the investor relations website at ir.freshworks.com. A replay of the audio webcast will be available shortly after the call on the Freshworks Investor Relations website and will be available for twelve months thereafter.

Explanation of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain non-GAAP financial measures, including revenue adjusted for constant currency, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income per share, non-GAAP net income, adjusted free cash flow, and adjusted free cash flow margin. This press release and the accompanying tables also contain certain other metrics, including annual recurring revenue, net dollar retention rates, revenue growth rates, and related presentation thereof adjusted for constant currency.

We adjust revenue and related growth rates for constant currency to provide a framework for assessing business performance excluding the effect of foreign currency rate fluctuations. To present this information, current period results for currencies other than USD are converted into USD at the average exchange rates in effect during the comparison period (for Q2 2025, the average exchange rates in effect for our major currencies were 1 EUR to 1.05 USD and 1 GBP to 1.26 USD), rather than the actual average exchange rates in effect during the current period (for Q2 2026, the average exchange rates in effect for our major currencies were 1 EUR to 1.16 USD and 1 GBP to 1.34 USD).

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. We believe these non-GAAP measures provide investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our operating results. We believe these non-GAAP measures are useful in evaluating our operating performance compared to that of other companies in our industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.

Investors, however, are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures.

We exclude the following items from one or more of our non-GAAP financial measures:

•Stock-based compensation expense. We exclude stock-based compensation, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this expense provides meaningful supplemental information regarding operational performance. In particular, stock-based compensation expense is not comparable across companies given the variety of valuation methodologies and assumptions.

•Employer payroll taxes on employee stock transactions. We exclude the amount of employer payroll taxes on equity awards from certain of our non-GAAP financial measures because they are dependent on our stock price at the time of vesting or exercise and other factors that are beyond our control and do not believe these expenses have a direct correlation to the operation of our business.

•Amortization of acquired intangibles. We exclude amortization of acquired intangibles, which is a non-cash expense, from certain of our non-GAAP financial measures. Our expenses for amortization of acquired intangibles are inconsistent in amount and frequency because they are significantly affected by the timing, size of acquisitions, and the allocation of purchase price. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operation of our business.

•Restructuring charges. We exclude restructuring charges, which primarily consists of employee severance and other employee termination benefits associated with the restructuring program initiated in November 2024 and May 2026, from our non-GAAP financial measures, because we do not believe these expenses have a direct correlation to the operating performance of our business.

•Acquisition expenses. We exclude acquisition expenses, which primarily consist of legal fees and due diligence costs, from our non-GAAP financial measures because we do not believe these expenses have a direct correlation to the operating performance of our business.

•Income tax effect and adjustments. Starting January 1, 2026, we utilize a long-term projected non-GAAP tax rate to compute our non-GAAP income tax provision in order to provide better consistency across interim reporting periods. Our non-GAAP tax rate reflects our estimated long-term effective tax rate based on our anticipated geographic earnings mix and statutory tax regimes. For fiscal year 2026, we determined the projected non-GAAP tax rate to be 24%. The difference between our GAAP income tax provision and our non-GAAP income tax provision is presented as non-GAAP income tax reconciling adjustments. Prior to 2026, we excluded the income tax effect of the above adjustments, income tax effect associated with acquisitions and tax charges or benefits that are a result of a change in valuation allowance on deferred tax assets and its related impacts, from our non-GAAP financial measures. We excluded these costs because we do not believe these expenses have a direct correlation to the operating performance of our business.

We define adjusted free cash flow as net cash provided by operating activities, less purchases of property and equipment, capitalized internal-use software, plus acquisition costs and restructuring charges. We believe that adjusted free cash flow is a useful indicator of liquidity as it measures our ability to generate cash from our core operations after purchases of property and equipment. Adjusted free cash flow is a measure to determine, among other things, cash available for strategic initiatives, including further investments in our business and potential acquisitions of businesses. We define adjusted free cash flow margin as adjusted free cash flow as a percentage of revenue. We believe that adjusted free cash flow margin is a useful indicator of how efficiently we convert revenue into adjusted free cash flow.

Operating Metrics

Number of Customers Contributing More Than $5,000, $50,000 and $100,000 in ARR. We define ARR as the sum total of subscription, software license, and maintenance revenue we would contractually expect to recognize over the next 12 months from all customers at a point in time, assuming no increases, reductions or cancellations in their subscriptions, and assuming that revenues are recognized ratably over the term of subscription and maintenance contracts and upon delivery for software licenses. We define our total customers contributing more than $5,000, $50,000 and $100,000 in ARR as of a particular date as the number of business entities or individuals, represented by a unique domain or a unique email address, with one or more paid subscriptions to one or more of our products that contributed ARR above the applicable threshold.

Net Dollar Retention Rate. To calculate net dollar retention rate as of a given date, we first determine Entering ARR, which is ARR from the population of our customers as of 12 months prior to the end of the reporting period. We then calculate the Ending ARR from the same set of customers as of the end of the reporting period. We then divide the Ending ARR by the Entering ARR to arrive at our net dollar retention rate. Ending ARR includes upsells, cross-sells, renewals and expansion as a result of acquisitions during the measurement period and is net of any contraction or attrition over this period.

We also adjust the above operating metrics, growth rates of customers contributing more than $5,000, $50,000 and $100,000 in ARR and related presentation thereof for constant currency to provide a framework for assessing our business performance excluding the effects of foreign currency rates fluctuations. To present this information, the Ending ARR of the current period in currencies other than USD is converted into USD at the exchange rates in effect at the end of the comparison period (for Q2 2025, the period end exchange rates in effect for our major currencies were 1 EUR to 1.17 USD and 1 GBP to 1.37 USD), rather than the actual exchange rates in effect at the end of the current period (for Q2 2026, the period end exchange rates in effect for our major currencies were 1 EUR to 1.14 USD and 1 GBP to 1.32 USD).

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, our GAAP and non-GAAP estimates for the third quarter and full year 2026, our financial outlook, our ability to sustain profitability, and our expectations regarding impact of new product capabilities and our AI-powered software. These forward-looking statements are based on our current expectations, estimates and projections about our business and industry, including our financial outlook and macroeconomic uncertainties, management’s beliefs and certain assumptions made by the company, all of which are subject to change. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, “future,” “believe,” “expectation,” “may,” “will,” “outlook,” “estimate,” “continue,” “anticipate,” “could,” “would,” or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, many of which involve factors or circumstances that are beyond our control, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include our ability to achieve our long-term plans and key initiatives; our ability to sustain or manage any future growth and profitability effectively; our ability to attract and retain customers or expand sales to existing customers; delays in product development or deployments or the success of such products; the impact to the economy, our customers and our business due to uncertain global economic conditions, including market volatility, foreign exchange rates, and impact of inflation, as well as the other potential factors described under “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2025 as such factors may be updated from time to time in our periodic and other documents of Freshworks Inc. filed with the Securities and Exchange Commission from time to time (available at www.sec.gov).

We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof and are based on information available to us at the time the statements are made and/or management’s good faith

belief as of that time with respect to future events. We assume no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.

About Freshworks Inc.

Freshworks is the AI-powered, unified service operations platform that is fast to deploy, intuitive to use, and enables every employee to be more productive. We offer powerful governance and scale, without the operational drag of legacy platforms. Organizations including Bridgestone, New Balance, S&P Global, and Sony Music trust Freshworks to deliver quality employee and customer service and manage efficient technology operations. For the latest updates, visit freshworks.com and follow Freshworks on LinkedIn, X, and Facebook.

© 2026 Freshworks Inc. All Rights Reserved. Freshworks, Freshservice and any associated logo are trademarks of Freshworks Inc. All other company, brand and product names may be trademarks or registered trademarks of their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of Freshworks Inc. or any aspect of this press release.

Gartner Source Citation

Gartner, Magic Quadrant for IT Service Management Platforms, Rich Doheny, Ankita Hundal, et al., 27 July 2026

Gartner Disclaimer

Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s business and technology insights research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. (“Gartner”), and is not a representation of fact. Gartner Content speaks as of its original publication date and not as of the date of this press release, and the opinions expressed in the Gartner Content are subject to change without notice.

Investor Relations Contact:

IR@freshworks.com

Media Relations Contact:

PR@freshworks.com

FRESHWORKS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

2026 2025 2026 2025

Revenue $ 237,377 $ 204,678 $ 466,010 $ 400,951

Cost of revenue(1)

36,096 31,142 70,784 61,020

Gross profit 201,281 173,536 395,226 339,931

Operating expenses:

Research and development(1)

43,815 39,943 93,076 79,944

Sales and marketing(1)

106,450 95,223 218,767 184,381

General and administrative(1)

37,924 47,026 78,351 94,273

Restructuring charges 7,032 — 7,032 405

Total operating expenses 195,221 182,192 397,226 359,003

Income (loss) from operations 6,060 (8,656) (2,000) (19,072)

Interest and other income, net 4,204 12,547 5,630 25,516

Income before income taxes 10,264 3,891 3,630 6,444

Provision for income taxes 7,025 5,630 5,201 9,487

Net income (loss) 3,239 (1,739) (1,571) (3,043)

Weighted-average shares used in calculating net income (loss) per share:

Basic 271,951 294,435 277,612 297,839

Diluted 272,988 294,435 277,612 297,839

Net income (loss) per share - basic and diluted

Basic

$ 0.01 $ (0.01) $ (0.01) $ (0.01)

Diluted

$ 0.01 $ (0.01) $ (0.01) $ (0.01)

______________________

(1) Includes stock-based compensation expense as follows (in thousands):

Three Months Ended

June 30, Six Months Ended

June 30,

2026 2025 2026 2025

Cost of revenue $ 1,636 $ 1,437 $ 3,254 $ 2,955

Research and development 8,956 8,618 21,257 17,831

Sales and marketing 11,088 11,819 24,088 25,228

General and administrative

16,168 27,406 33,170 54,930

Total stock-based compensation expense, net of amounts capitalized $ 37,848 $ 49,280 $ 81,769 $ 100,944

FRESHWORKS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

June 30, 2026 December 31, 2025

(unaudited)

Assets

Current assets:

Cash and cash equivalents $ 494,665 $ 569,774

Restricted cash 1,154 62,374

Marketable securities 169,442 211,597

Accounts receivable, net 137,678 150,817

Deferred contract acquisition costs 32,105 29,830

Prepaid expenses and other current assets 66,866 72,774

Total current assets 901,910 1,097,166

Property and equipment, net 46,387 38,843

Operating lease right-of-use assets 32,264 39,893

Deferred contract acquisition costs, noncurrent 28,661 27,179

Goodwill 198,010 146,676

Intangible assets, net 92,473 76,986

Deferred tax assets, net

174,047 157,466

Other assets 16,716 18,503

Total assets $ 1,490,468 $ 1,602,712

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ 26,902 $ 11,507

Accrued liabilities 105,290 101,202

Deferred revenue 400,469 385,320

Total current liabilities 532,661 498,029

Operating lease liabilities, non-current 25,565 33,282

Other liabilities 36,299 38,751

Total liabilities 594,525 570,062

Stockholders' equity:

Common stock 3 3

Additional paid-in capital 4,451,395 4,586,392

Accumulated other comprehensive loss

(1,730) (1,591)

Accumulated deficit (3,553,725) (3,552,154)

Total stockholders' equity 895,943 1,032,650

Total liabilities and stockholders' equity $ 1,490,468 $ 1,602,712

FRESHWORKS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

2026 2025 2026 2025

Cash Flows from Operating Activities:

Net income (loss)

$ 3,239 $ (1,739) $ (1,571) $ (3,043)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization 8,263 6,281 16,126 12,641

Amortization of deferred contract acquisition costs 8,966 7,848 17,533 15,431

Non-cash lease expense 2,683 2,320 5,608 4,623

Stock-based compensation 37,849 49,280 81,770 100,944

Discount amortization on marketable securities

(297) (1,793) (1,244) (3,694)

Deferred income taxes 3,224 — (2,641) (459)

Other 1,582 487 9,390 470

Changes in operating assets and liabilities:

Accounts receivable (10,340) (3,613) 14,577 6,981

Deferred contract acquisition costs (11,093) (10,054) (21,290) (18,758)

Prepaid expenses and other assets 2,295 (7,372) (10,269) (22,689)

Accounts payable 8,674 2,754 15,568 3,280

Accrued and other liabilities (2,307) 8,309 (5,749) 7,813

Deferred revenue 8,429 8,390 9,456 15,439

Operating lease liabilities (2,644) (2,507) (6,352) (2,415)

Net cash provided by operating activities

58,523 58,591 120,912 116,564

Cash Flows from Investing Activities:

Purchases of property and equipment (5,041) (380) (8,942) (1,676)

Proceeds from sale of property and equipment 3 2 8 40

Capitalized internal-use software (1,471) (4,676) (4,850) (7,448)

Purchases of marketable securities (126,404) (225,273) (273,825) (347,206)

Maturities and redemptions of marketable securities 187,545 187,485 316,896 359,679

Business combination, net of cash acquired — — (56,913) —

Net cash provided by (used in) investing activities

54,632 (42,842) (27,626) 3,389

Cash Flows from Financing Activities:

Proceeds from issuance of common stock under employee stock purchase plan, net 3,061 3,307 3,061 3,307

Proceeds from exercise of stock options 2 14 2 62

Payment of withholding taxes on net share settlement of equity awards (9,826) (13,749) (16,986) (30,460)

Repurchase of common stock

(159,042) (113,586) (207,411) (227,196)

Net cash used in financing activities (165,805) (124,014) (221,334) (254,287)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(862) — (8,383) —

Net decrease in cash, cash equivalents and restricted cash

(53,512) (108,265) (136,431) (134,334)

Cash, cash equivalents and restricted cash, beginning of period 549,331 594,336 632,250 620,405

Cash, cash equivalents and restricted cash, end of period $ 495,819 $ 486,071 $ 495,819 $ 486,071

FRESHWORKS INC.

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES

(in thousands, except percentages and per share data)

(unaudited)

Three Months Ended June 30,

2026 2025 Growth Rates

Revenue

GAAP revenue $ 237,377 $ 204,678 16%

Effects of foreign currency rate fluctuations $ (1,466)

Revenue adjusted for constant currency $ 235,911 $ 204,678 15%

FRESHWORKS INC.

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES

(in thousands, except percentages and per share data)

(unaudited)

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Reconciliation of gross profit and gross margin:

GAAP gross profit $ 201,281 $ 173,536 $ 395,226 $ 339,931

Non-GAAP adjustments:

Stock-based compensation expense 1,636 1,437 3,254 2,955

Employer payroll taxes on employee stock transactions 27 30 56 57

Amortization of acquired intangibles 1,655 1,275 3,292 2,536

Non-GAAP gross profit $ 204,599 $ 176,278 $ 401,828 $ 345,479

GAAP gross margin 84.8 % 84.8 % 84.8 % 84.8 %

Non-GAAP gross margin 86.2 % 86.1 % 86.2 % 86.2 %

Reconciliation of operating expenses:

GAAP research and development $ 43,815 $ 39,943 $ 93,076 $ 79,944

Non-GAAP adjustments:

Stock-based compensation expense (8,956) (8,618) (21,257) (17,831)

Employer payroll taxes on employee stock transactions (104) (57) (217) (209)

Non-GAAP research and development $ 34,755 $ 31,268 $ 71,602 $ 61,904

GAAP research and development as percentage of revenue 18.5 % 19.5 % 20.0 % 19.9 %

Non-GAAP research and development as percentage of revenue 14.6 % 15.3 % 15.4 % 15.4 %

GAAP sales and marketing $ 106,450 $ 95,223 $ 218,767 $ 184,381

Non-GAAP adjustments:

Stock-based compensation expense (11,088) (11,819) (24,088) (25,228)

Employer payroll taxes on employee stock transactions (402) (372) (792) (934)

Amortization of acquired intangibles (2,574) (2,233) (5,120) (4,486)

Non-GAAP sales and marketing $ 92,386 $ 80,799 $ 188,767 $ 153,733

GAAP sales and marketing as percentage of revenue 44.8 % 46.5 % 46.9 % 46.0 %

Non-GAAP sales and marketing as percentage of revenue 38.9 % 39.5 % 40.5 % 38.3 %

GAAP general and administrative $ 37,924 $ 47,026 $ 78,351 $ 94,273

Non-GAAP adjustments:

Stock-based compensation expense (16,168) (27,406) (33,170) (54,930)

Employer payroll taxes on employee stock transactions (188) (243) (413) (701)

Acquisition expense (38) — (193) —

Non-GAAP general and administrative $ 21,530 $ 19,377 $ 44,575 $ 38,642

GAAP general and administrative as percentage of revenue 16.0 % 23.0 % 16.8 % 23.5 %

Non-GAAP general and administrative as percentage of revenue 9.1 % 9.5 % 9.6 % 9.6 %

FRESHWORKS INC.

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES

(in thousands, except percentages and per share data)

(unaudited)

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Reconciliation of operating income (loss) and operating margin:

GAAP income (loss) from operations $ 6,060 $ (8,656) $ (2,000) $ (19,072)

Non-GAAP adjustments:

Stock-based compensation expense 37,848 49,280 81,769 100,944

Employer payroll taxes on employee stock transactions 721 702 1,478 1,901

Amortization of acquired intangibles 4,229 3,508 8,412 7,022

Restructuring charges

7,032 — 7,032 405

Acquisition expense 38 — 193 —

Non-GAAP income from operations

55,928 44,834 96,884 91,200

GAAP operating margin 2.6 % (4.2) % (0.4) % (4.8) %

Non-GAAP operating margin 23.6 % 21.9 % 20.8 % 22.7 %

Reconciliation of net income (loss):

GAAP net income (loss) $ 3,239 $ (1,739) $ (1,571) $ (3,043)

Non-GAAP adjustments:

Stock-based compensation expense 37,848 49,280 81,769 100,944

Employer payroll taxes on employee stock transactions 721 702 1,478 1,901

Amortization of acquired intangibles 4,229 3,508 8,412 7,022

Restructuring charges

7,032 — 7,032 405

Acquisition expense 38 — 193 —

Income tax adjustments

(7,407) 782 (19,403) 1,192

Non-GAAP net income

$ 45,700 $ 52,533 $ 77,910 $ 108,421

Reconciliation of net income (loss) per share - diluted:

GAAP net income (loss) per share - diluted $ 0.01 $ (0.01) $ (0.01) $ (0.01)

Non-GAAP adjustments:

Stock-based compensation expense 0.14 0.17 0.29 0.34

Employer payroll taxes on employee stock transactions — 0.01 0.01 0.01

Amortization of acquired intangibles 0.02 0.01 0.03 0.02

Restructuring charges

0.03 — 0.03 —

Acquisition expense — — — —

Income tax adjustments

(0.03) — (0.07) —

Non-GAAP net income per share - diluted

$ 0.17 $ 0.18 $ 0.28 $ 0.36

Weighted-average shares used in computing GAAP net income (loss) per share - diluted 272,988 294,435 277,612 297,839

Weighted-average shares used in computing non-GAAP net income (loss) per share - diluted (1)

272,988 297,254 278,623 301,913

FRESHWORKS INC.

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES

(in thousands, except percentages and per share data)

(unaudited)

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Computation of adjusted free cash flow:

Net cash provided by operating activities

$ 58,523 $ 58,591 $ 120,912 $ 116,564

Less:

Purchases of property and equipment (5,041) (380) (8,942) (1,676)

Capitalized internal-use software (1,471) (4,676) (4,850) (7,448)

Add:

Acquisition and restructuring costs paid 5,648 728 6,367 2,221

Adjusted free cash flow

$ 57,659 $ 54,263 $ 113,487 $ 109,661

Operating cash flow margin

24.7 % 28.6 % 25.9 % 29.1 %

Adjusted free cash flow margin

24.3 % 26.5 % 24.4 % 27.4 %

Net cash provided by (used in) investing activities

$ 54,632 $ (42,842) $ (27,626) $ 3,389

Net cash used in financing activities $ (165,805) $ (124,014) $ (221,334) $ (254,287)

(1) Diluted net income (loss) per share attributable to common stockholders is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result. The company considers its stock options and RSUs as potential common stock equivalents but excluded them from the computation of GAAP diluted net income (loss) per share attributable to common stockholders, as their effect was antidilutive. For the three months ended June 30, 2026 and 2025, potentially dilutive shares of 1.0 million and 2.8 million shares, respectively, were included in the weighted average shares used in computing non-GAAP diluted net income per share. For the six months ended June 30, 2026 and 2025, potentially dilutive shares of 1.0 million and 4.1 million shares, respectively, were included in the weighted average shares used in computing non-GAAP diluted net income per share.

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Aug. 04, 2026

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2950 S. Delaware Street

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