Freshworks Inc. Q4 2025 results

The primary purpose of today's call is to provide you with information regarding our fourth quarter and full year 2025 performance and our financial outlook for our first quarter and full year 2026. Such risks include, but are not limited to, our ability to sustain our growth, to innovate, to reach our long-term revenue goals, to meet customer demand, and to control costs and improve operating efficiency. Reconciliations between GAAP and Non-GAAP financial measures for historical periods are included in our earnings release, which is available on our investor relations website at ir.freshworks.com. I encourage you to visit our investor relations site to access our earnings release, supplemental earnings slides, periodic SEC reports, and a replay of today's call or to learn more about Freshworks.

For the first time in our company's history, we achieved profitability for the full year and generated record free cash flow, a testament to our disciplined execution, product innovation, and operational excellence. I'm also happy that we remain on track for sustained growth and profitability exiting 2026. Whether it's EquipmentShare's high-growth debut on Nasdaq, or a global sustainability consultancy's global scale, we are winning. Freddy AI is proving that AI at Freshworks is a tangible revenue engine.

We have outperformed our estimates across growth and profitability metrics for five consecutive quarters, and in Q4, we also achieved profitability. We grew Q4 revenue over 14% year-over-year on an as-reported basis, nearly $3 million above the high end of our estimates. We ended the year at $907 million in annual recurring revenue, which represents 18% growth year-over-year on an as-reported basis and over 14% growth on a constant currency basis. Non-GAAP operating margin expanded to 19%, nearly five points above our free cash flow margin was 25%, and this was the sixth straight quarter we achieved Rule of 40.