Q2 2026 Freshworks Inc Earnings Call Transcript

Aug 4, 2026 / 09:00 PM GMT

Release Date Price: R$19.18

Transcript 10-Q8-K

Key Points

Positve

Revenue grew 16% year-over-year to $237.4 million, exceeding expectations and marking the seventh consecutive quarter of revenue beats.
Achieved positive GAAP net income of $3.2 million ahead of schedule, demonstrating strong profitability and financial discipline.
EX ARR grew 24% on a constant currency basis to $567 million, with strong momentum in large deals and upmarket traction.
AI monetization is gaining traction with over 7,000 customers paying for AI SKUs and Copilot attach rates exceeding 70% on larger deals.
Enterprise service management (ESM) crossed $50 million in ARR, growing 67% year-over-year, and ITAM is expanding with strong new logo wins.

Negative

CX ARR growth remains sluggish at 4% on a constant currency basis, reflecting ongoing challenges in the business.
Net dollar retention (NDR) is relatively low at 104-105%, indicating limited expansion from existing customers.
The company faces a $2 million FX headwind for the full year, which could pressure revenue growth.
Stock-based compensation, while declining, still represents a significant cost, and the company is working to manage it more prudently.
The CX business is undergoing restructuring and consolidation, which may cause near-term disruption and uncertainty.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FRSH.OQ - Freshworks Inc.
Q2 2026 Freshworks Inc Earnings Call
Aug 04, 2026 / 09:00PM GMT

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Presentation
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Unidentified_1 [1]
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Hello, everyone.

Thank you for joining us and welcome to the Freshworks second quarter 2026 earnings conference call.

After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Kate Skolnick, VP of Investor Relations. Kate, please go ahead.

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Unidentified_2 [2]
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Thank you. Good afternoon, and welcome to Freshworks' second-quarter 2026 earnings conference call. Joining me

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