EX-first Freshworks passes ARR benchmark ahead of schedule as profits rise
Last month, Freshworks crossed the $1 billion Annual Recurring Revenue (ARR) threshold, a milestone CEO Dennis Woodside had committed to by year-end.
On the back of that ahead-of-schedule notch on the fiscal bedpost, the firm just handed in another strong set of quarterly numbers to support its upwards shift and re-focusing on the Employee Experience (EX) market.
The firm reported a GAAP net profit of $18 million for the third quarter ended September 2026, against a loss of $4.6 million in the same quarter last year. Revenue came in at $245 million, up 14% year-on-year. Within that, the EX vertical saw 22% constant currency growth in ARR to $588 million, now accounting for 59% of total ARR, while Customer Experience (CX) ARR was $404 million, up four percent on a constant currency basis.
EX ARR is now expected to exceed $625 million exiting 2026. At present, overall, 1,821 customers contribute...
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