# Freshworks turns profitable with $237 Mn revenue in Q2 CY26 — retained record

> Retained news record from news:india-entrackr.

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source: [news](https://highsignal.app/data/news) (news:india-entrackr)  published 2026-08-05 05:53 ingested 2026-08-05 08:44

[original source ↗](https://entrackr.com/fintrackr/freshworks-turns-profitable-with-237-mn-revenue-in-q2-cy26-12231169)

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Nasdaq-listed SaaS firm Freshworks reported a 16% year-on-year increase in revenue to $237.4 million in the second quarter ended June 2026, while achieving its first quarterly GAAP profitability this year.
The company posted a GAAP net profit of $3.2 million in Q2 CY26, compared to a net loss of $1.7 million in the corresponding quarter last year. Operating income stood at $6.1 million, against an operating loss of $8.7 million a year earlier.
According to the filing, non-GAAP operating income grew to $55.9 million, translating into a 23.6% operating margin, compared to 21.9% in the year ago quarter.
For Freshworks, sales and marketing costs rose nearly 12% to $106.5 million from $95.2 million in Q2 CY26, while research and development expenses increased to $43.8 million from $39.9 million. General and administrative expenses declined to $37.9 million from $47 million, although the company incurred $7 million in restructuring charges during the quarter.
Total operating expenses increased to $195.2 million from $182.2 million.
The company generated $58.5 million in operating cash flow and $57.7 million in adjusted free cash flow during the quarter. Cash & cash equivalents, restricted cash and marketable securities stood at $665.3 million as of June 30, 2026.
Freshworks also continued to expand its enterprise customer base. The number of customers contributing more than $100,000 in annual recurring revenue (ARR) rose 25% year-on-year to 1,746, while customers contributing over $50,000 in ARR increased 18% to 4,091. Net dollar retention rate stood at 104%.
Freshworks raised its full-year guidance and now expects CY26 revenue between $963.5 million and $966.5 million, with non-GAAP operating income projected at $222 million to $228 million.
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