Freshworks Inc (NASDAQ:FRSH) Surpasses Q2 2025 Earnings Estimates with Strong Revenue and EPS Beat

Freshworks Inc (NASDAQ:FRSH) reported its second-quarter 2025 earnings, surpassing analyst expectations on both revenue and earnings per share (EPS). The company’s performance and subsequent market reaction reflect investor sentiment toward its growth trajectory and profitability.

Earnings Highlights vs. Estimates

• Revenue: Freshworks posted $204.68 million in revenue for Q2 2025, exceeding the consensus estimate of $202.81 million. This represents a modest beat of approximately 0.9%.
• EPS: The company reported earnings of $0.18 per share, significantly higher than the estimated $0.117, marking a 53.8% beat.
• Full-Year Estimates: Analysts project full-year 2025 revenue at $835.6 million, with earnings expected to reach $0.58 per share.
• Q3 Outlook: For the next quarter, revenue is forecasted at $212.48 million, with earnings estimated at $0.129 per share.

Market Reaction

Following the earnings release, Freshworks’ stock saw an after-hours surge of 1.29%, indicating a positive initial response to the results. However, the stock has shown mixed performance over recent periods:

• Last Week: Down 5.6%
• Last Two Weeks: Slightly up 0.87%
• Last Month: Down 6.7%

The immediate after-hours uptick suggests that investors were encouraged by the earnings beat, particularly the strong EPS outperformance. However, the broader monthly decline may reflect lingering concerns about growth sustainability or broader market conditions.

Key Takeaways from the Press Release

Freshworks emphasized its "people-first AI service software" offerings, which continue to drive its SaaS business. The company’s product families—Customer Experience (CX) and Employee Experience (EX)—remain central to its strategy, with AI enhancements like Freddy AI Agent and Freddy AI Copilot playing a growing role in its solutions.

While the press release did not provide an explicit forward-looking outlook, the market’s reaction aligns with the earnings outperformance. The lack of guidance does not appear to have dampened investor enthusiasm in the short term.

For a deeper dive into Freshworks’ earnings history and future estimates, see Freshworks Earnings & Estimates.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.