Freshworks Inc. stock rose 3.2% following the company's announcement of fourth quarter and full year 2025 financial results on February 10, 2026. The company exceeded the high end of guidance for revenue and non-GAAP operating margin. Full year 2025 revenue grew 16% year-over-year. Fourth quarter revenue reached 222.7 million dollars, up 14% compared to the prior year quarter. The company reported GAAP operating income of 39.7 million dollars with an operating margin of 17.8%, compared to an operating loss in the fourth quarter of 2024. Non-GAAP operating income was 41.6 million dollars with an 18.7% margin. This marked the fifth consecutive quarter of outperformance against estimates. The company's EX business crossed half a billion dollars in annual recurring revenue. However, Jefferies downgraded the stock and cut its price target.
Read full analysisFreshworks Inc. stock rose 3.2% following the company's announcement of fourth quarter and full year 2025 financial results on February 10, 2026. The company exceeded the high end of guidance for revenue and non-GAAP operating margin. Full year 2025 revenue grew 16% year-over-year. Fourth quarter revenue reached 222.7 million dollars, up 14% compared to the prior year quarter. The company reported GAAP operating income of 39.7 million dollars with an operating margin of 17.8%, compared to an operating loss in the fourth quarter of 2024. Non-GAAP operating income was 41.6 million dollars with an 18.7% margin. This marked the fifth consecutive quarter of outperformance against estimates. The company's EX business crossed half a billion dollars in annual recurring revenue. However, Jefferies downgraded the stock and cut its price target.
Freshworks makes cloud-based customer service and IT service management software, competing with larger players like Salesforce and ServiceNow. The company delivered strong Q4 2025 results with 14% revenue growth and its first sustained GAAP profitability, but FY2026 EPS guidance came in roughly 20% below consensus, triggering a ~40% selloff in early February. At current levels the stock trades well below even the lowest analyst price target, and a recent Jefferies downgrade has added further pressure.