Chennai: Nasdaq-listed software as a service firm Freshworks’ revenue grew 16% to $ 237.4 million in the second quarter, compared to $204.7 million in the corresponding period last year. It reported a GAAP net profit of $3.2 million against a net loss of $1.7 million last year.This is the company’s first quarter of GAAP profitability in 2026 and was achieved through a combination of workforce restructuring, operational discipline and traction in its efforts targeting mid-market customers and what it calls agile enterprises. Freshworks’ general and administration expenses, which include the salary component, declined 19.5% YoY, while incurring $7 million in restructuring charges and recording growth in expenses for research and development and sales and marketing. The company laid off 500 employees or about 11% of its headcount in May as part of its restructuring and to invest in AI.Freshworks hit GAAP profitability, months ahead of plan, Dennis Woodside, chief executive and president of Freshworks, said in a statement. Talking to TOI in late June, he said the company targets GAAP profitability in the second half of this year.GAAP refers to US accounting standards. Freshworks’ GAAP income from operations and operating margin for the quarter stood at $6.1 million and 2.6%, respectively, compared to a loss of $8.7 million and an operating margin of -4.2% last year. Net dollar retention rate, which is a measure of recurring revenue and growth from existing customers, was 104%.The number of customers contributing more than $100,000 in annual recurring revenue (ARR) was up 25% YoY, while customers contributing more than $50,000 in ARR increased 18% YoY.
