Freshworks Posts First GAAP Profit, Q2 Revenue Beats, Raises Full-Year Outlook
FRSH sits 75% above its 52-week low of $6.79.
Summary
Freshworks delivered a milestone quarter: Q2 revenue of $237.4M beat the $233.6M consensus, and the company posted its first GAAP profit with net income of $3.2M. Revenue grew 16% YoY, driven by AI adoption and a 25% jump in large customers. Management raised the full-year revenue guide to $963.5M-$966.5M and set Q3 revenue at $244.5M-$245.5M, both above prior expectations. This follows the May long-term outlook raise and signals accelerating execution. The stock trades at 16x forward earnings, up from 13x three months ago, reflecting improving sentiment. Watch for sustained GAAP profitability in Q3 to confirm the inflection.
At the time of this announcement, FRSH was trading at $11.85 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.5B. The 52-week trading range was $6.79 to $14.06. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.