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Nasdaq-listed SaaS major Freshworks turned profitable in the fourth quarter of 2025, posting a net profit of $191.4 Mn as against a net loss of $21.9 Mn in the same quarter last year on the back of tax benefits.
In the September quarter (Q3 2025), the company had reported a net loss of $4.7 Mn.
Notably, the SaaS giant recorded a “release of valuation allowance” gain worth $151 Mn and deferred tax worth $3.1 Mn during the quarter under review. Both of these metrics represented gains on the balance sheet but no cash income was recorded. Excluding these gains, the company posted a profit of $46.8 Mn.
Revenue from operations grew 14% to $222 Mn during the December quarter from $194 Mn in the fourth quarter of 2024.
The company posted an operating profit of $39.7 Mn during the quarter under review as against an operating loss of $23.7 Mn in Q4 2024. Freshworks managed to trim its total expenses to $150.8 Mn from $188.9 in the year-ago quarter.
Revenue from operations jumped 16% to $838 Mn in 2025 from $720.4 Mn in 2024. The company recorded a net profit of $183 Mn during the year as against a net loss of $95.4 Mn in 2024.
“Our AI-powered software continues to be an important growth driver and path for customer expansion and it shows in the product adoption results,” said Freshworks CEO and president Dennis Woodside.
As per the company, the number of customers which are contributing more than $5 Mn in ARR stood at 24,762 in the fourth quarter, an increase of 10% YoY. It onboarded new customers like Armanino, British Film Institute, ENGIE Impact, EquipmentShare, Kidde, and NBT Bancorp, Inc. during the quarter under review.
Freshworks also inked an agreement during the quarter to acquire AI-powered incident management platform FireHydrant for an undisclosed amount to build an AI-native solution for preventing disruptions and ensuring service reliability.
Founded in 2010 by Girish Mathrubootham and Shanmugam Krishnasamy, Freshworks listed on the Nasdaq in September 2021. Since then, the company has undergone significant leadership changes while sharpening its focus on AI.
Freshworks offers a suite of cloud-based software to help companies manage customer engagement, sales, IT service management and marketing.
The post Freshworks In The Black, Posts $191 Mn Profit In Q4 2025 appeared first on Inc42 Media.
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