EarningsQ2 2026 Earnings Report
DE:7DF Q2 2026 EPS Results
Actual EPS€0.15
Consensus EPS€0.12
Beat/MissBeat by +€0.04
One Year Ago EPS€0.16
DE:7DF Q2 2026 Revenue Results
Actual Revenue€210.83M
Expected Revenue€207.49M
Beat/MissBeat by +€3.34M
YoY Revenue Growth+15.98%
Earnings Announcement Details
QuarterQ2 2026
Date08/04/2026
TimeAfter Close
Conference CallTuesday, August 4, 2026
DE:7DF Upcoming Earnings
Freshworks's next earnings date is estimated for November 3, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:7DF Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlights clear and broad momentum: strong top-line growth (16% YoY), sustained EX strength (24% CC ARR growth), notable AI adoption and productivity gains, positive GAAP and non-GAAP profitability, healthy cash generation, and successful capital returns via buybacks. Offsetting items are concentrated and modest: CX growth is slower (low single digits), some legacy Device42 on-prem transitions create NDR noise, AI monetization for certain products remains early, and FX created small headwinds. Overall, the positive operational and financial developments, particularly the EX and AI traction and achievement of GAAP profitability, materially outweigh the limited lowlights.Company Guidance
Revenue Growth and Record Beat
Total revenue $237.4M in Q2, up 16% year-over-year (15% constant currency), exceeding the high end of estimates and representing a sequential acceleration vs prior quarter.
Profitability Milestones
Achieved positive GAAP net income of $3.2M (GAAP EPS $0.01) and non-GAAP operating margin of 24%; company has achieved Rule of 40 for 8 consecutive quarters and reported non-GAAP EPS of $0.17 for the quarter.
EX Business Driving Upside and Upmarket Traction
EX ARR $567M, up 24% on a constant currency basis, representing ~59% of total ARR. Customers contributing >$100k ARR grew 25% YoY and now represent ~40% of ARR, demonstrating sustained upmarket motion and larger deal traction.
AI Adoption and Monetization Momentum
Over 7,000 customers paying for an AI SKU; Copilot attach rate on larger deals exceeds 70%; Freddy Copilot eligible EX customers paying for Copilot rose to 22% of installed base. Operational AI impacts include agents handling 50% more tickets and Freddy deflection averaging 50% (up to 80% for mature deployments).
Strong Cash Generation and Capital Allocation
Adjusted free cash flow $57.7M in Q2 with a ~24% adjusted FCF margin; ended quarter with $665M cash & investments and no debt. Year-to-date repurchases >$200M and reduced fully diluted share count by ~8.3% since IPO.
Expansion Products and Cross-Sell Momentum (ITAM, ESM, FireHydrant)
ESM crossed $50M ARR, growing 67% YoY. About one-third of large new EX lands include ITAM; FireHydrant generated its first six-figure expansion and was among the Top 3 largest deals of the quarter, signaling cross-sell traction across the EX portfolio.
Billings, Retention and Customer Economics
Calculated billings $245.8M, up 15% YoY (16% CC). Net dollar retention (NDR) 104% as reported (105% CC); EX NDR (excluding legacy Device42) over 111% CC. Customers >$50k ARR grew ~18-19% YoY and now represent over 55% of ARR.
Industry Recognition and Product Leadership
Named a leader in Gartner's 2026 Magic Quadrant for IT service management platforms; Freshservice has over 20,000 customers and EX ARR up ~5x since the start of 2021, supporting market leadership claims.
DE:7DF Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed