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FreshworksNASDAQ: FRSH reported third-quarter 2026 revenue of $245.4 million, up 14% year over year on both a reported and constant-currency basis, as the software company emphasized growth in its employee experience, or EX, business and continued profitability improvements.
Chief Executive Officer and President Dennis Woodside said the company met or exceeded its top- and bottom-line targets during the quarter. Non-GAAP operating income reached $73.2 million, representing a 30% margin, while GAAP net income was $18.3 million, or $0.07 per share. Non-GAAP earnings per share were $0.22.
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Adjusted free cash flow totaled $73.9 million, also a 30% margin, and adjusted free cash flow per share increased 40% from the prior-year quarter. Woodside said Freshworks expects to exceed $0.94 in adjusted free cash flow per share for the full year, ahead of its stated 20% growth target.
EX business drives growth and upmarket push
Freshworks’ EX annual recurring revenue, which includes its IT service management and employee service offerings, ended the quarter at $588 million, rising 22% year over year in constant currency and accounting for 59% of total ARR.
The company continued to target larger organizations. Customers contributing more than $100,000 in ARR grew 26% in constant currency and represented approximately 41% of total ARR. New EX customer average revenue per account increased 35% year over year, and Freshworks closed its second seven-figure EX deal of 2026.
Woodside said customers are increasingly looking for a unified platform spanning IT, human resources, finance and other departments rather than individual point products. He said the company’s sales focus has shifted toward what Freshworks calls “agile enterprises,” including organizations seeking alternatives to larger incumbent vendors.
Multi-product adoption also increased. New EX deals containing multiple products rose more than 35% year over year, while associated ARR increased more than 50%. Two-thirds of the company’s top 50 new EX deals included IT asset management, or ITAM.
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