# EDGAR Filing Document

**Accession Number:** 0001544522
**File Stem:** 0001544522-25-000051
**Filing Date:** 2025-7
**Character Count:** 171868
**Document Hash:** 2c9fa45eeb5057e79f8ece0fd60d211b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001544522-25-000051.hdr.sgml**: 20250729

**ACCESSION NUMBER**: 0001544522-25-000051

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 91

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250729

**DATE AS OF CHANGE**: 20250729

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Freshworks Inc.
- **CENTRAL INDEX KEY:** 0001544522
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 331218825
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40806
- **FILM NUMBER:** 251162121

**BUSINESS ADDRESS:**
- **STREET 1:** 2950 S. DELAWARE ST.
- **STREET 2:** SUITE 201
- **CITY:** SAN MATEO
- **STATE:** CA
- **ZIP:** 94403
- **BUSINESS PHONE:** (650) 513-0514

**MAIL ADDRESS:**
- **STREET 1:** 2950 S. DELAWARE ST.
- **STREET 2:** SUITE 201
- **CITY:** SAN MATEO
- **STATE:** CA
- **ZIP:** 94403

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FreshDesk Inc.
- **DATE OF NAME CHANGE:** 20120312

?xml version='1.0' encoding='ASCII'? frsh-20250630

**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ________ to ________**

**Commission file number 001-40806** 

**Freshworks Inc.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **2950 S Delaware Street, Suite 201** | **33-1218825** |
| **(State or other jurisdiction of incorporation or organization)** | **San Mateo, CA 94403** | **(I.R.S. Employer Identification No.)** |

---

(Address of principal executive offices and Zip Code)

**(650) 513-0514**

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Class A common stock, par value $0.00001 per share | FRSH | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). &nbsp;&nbsp;&nbsp;&nbsp;Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

------

**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer  | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐&nbsp;&nbsp;&nbsp;&nbsp; No ☒

As of July 24, 2025, the number of shares of the registrant's Class A common stock outstanding was 237,933,261 and the number of shares of the registrant's Class B common stock outstanding was 53,495,414.

------

**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

**FRESHWORKS INC.**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **<u>Page</u>** |
| **<u>[SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#i73cdf813b07c49de9e2acaa5af6f364d_10)</u>** | **<u>[SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#i73cdf813b07c49de9e2acaa5af6f364d_10)</u>** | <u>[2](#i73cdf813b07c49de9e2acaa5af6f364d_10)</u> |
| **<u>[PART I. FINANCIAL INFORMATION](#i73cdf813b07c49de9e2acaa5af6f364d_13)</u>** | **<u>[PART I. FINANCIAL INFORMATION](#i73cdf813b07c49de9e2acaa5af6f364d_13)</u>** | |
| ITEM 1. | <u>[Financial Statements (unaudited)](#i73cdf813b07c49de9e2acaa5af6f364d_16)</u> | <u>[4](#i73cdf813b07c49de9e2acaa5af6f364d_16)</u> |
| | <u>[Condensed Consolidated Balance Sheets](#i73cdf813b07c49de9e2acaa5af6f364d_19)</u> | <u>[4](#i73cdf813b07c49de9e2acaa5af6f364d_19)</u> |
| | <u>[Condensed Consolidated Statements of Operations](#i73cdf813b07c49de9e2acaa5af6f364d_22)</u> | <u>[5](#i73cdf813b07c49de9e2acaa5af6f364d_22)</u> |
| | <u>[Condensed Consolidated Statements of Comprehensive Loss](#i73cdf813b07c49de9e2acaa5af6f364d_25)</u> | <u>[6](#i73cdf813b07c49de9e2acaa5af6f364d_25)</u> |
| | <u>[Condensed Consolidated Statements of Stockholders' Equity](#i73cdf813b07c49de9e2acaa5af6f364d_28)</u> | <u>[7](#i73cdf813b07c49de9e2acaa5af6f364d_28)</u> |
| | <u>[Condensed Consolidated Statements of Cash Flows](#i73cdf813b07c49de9e2acaa5af6f364d_34)</u> | <u>[9](#i73cdf813b07c49de9e2acaa5af6f364d_34)</u> |
| | <u>[Notes to Condensed Consolidated Financial Statements](#i73cdf813b07c49de9e2acaa5af6f364d_37)</u> | <u>[10](#i73cdf813b07c49de9e2acaa5af6f364d_37)</u> |
| ITEM 2. | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i73cdf813b07c49de9e2acaa5af6f364d_106)</u> | <u>[29](#i73cdf813b07c49de9e2acaa5af6f364d_106)</u> |
| ITEM 3. | <u>[Quantitative and Qualitative Disclosures about Market Risk](#i73cdf813b07c49de9e2acaa5af6f364d_127)</u> | <u>[43](#i73cdf813b07c49de9e2acaa5af6f364d_127)</u> |
| ITEM 4. | <u>[Controls and Procedures](#i73cdf813b07c49de9e2acaa5af6f364d_130)</u> | <u>[44](#i73cdf813b07c49de9e2acaa5af6f364d_130)</u> |
| **<u>[PART II. OTHER INFORMATION](#i73cdf813b07c49de9e2acaa5af6f364d_133)</u>** | **<u>[PART II. OTHER INFORMATION](#i73cdf813b07c49de9e2acaa5af6f364d_133)</u>** | |
| ITEM 1. | <u>[Legal Proceedings](#i73cdf813b07c49de9e2acaa5af6f364d_136)</u> | <u>[45](#i73cdf813b07c49de9e2acaa5af6f364d_136)</u> |
| ITEM 1A. | <u>[Risk Factors](#i73cdf813b07c49de9e2acaa5af6f364d_139)</u> | <u>[45](#i73cdf813b07c49de9e2acaa5af6f364d_139)</u> |
| ITEM 2. | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i73cdf813b07c49de9e2acaa5af6f364d_145)</u> | <u>[45](#i73cdf813b07c49de9e2acaa5af6f364d_145)</u> |
| ITEM 3. | <u>[Defaults Upon Senior Securities](#i73cdf813b07c49de9e2acaa5af6f364d_151)</u> | <u>[46](#i73cdf813b07c49de9e2acaa5af6f364d_151)</u> |
| ITEM 4. | <u>[Mine Safety Disclosures](#i73cdf813b07c49de9e2acaa5af6f364d_154)</u> | <u>[46](#i73cdf813b07c49de9e2acaa5af6f364d_154)</u> |
| ITEM 5. | <u>[Other Information](#i73cdf813b07c49de9e2acaa5af6f364d_157)</u> | <u>[47](#i73cdf813b07c49de9e2acaa5af6f364d_157)</u> |
| ITEM 6. | <u>[Exhibits](#i73cdf813b07c49de9e2acaa5af6f364d_163)</u> | <u>[48](#i73cdf813b07c49de9e2acaa5af6f364d_163)</u> |
| **<u>[SIGNATURES](#i73cdf813b07c49de9e2acaa5af6f364d_166)</u>** | **<u>[SIGNATURES](#i73cdf813b07c49de9e2acaa5af6f364d_166)</u>** | <u>[49](#i73cdf813b07c49de9e2acaa5af6f364d_166)</u> |

---

------

**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

**As used in this report, the terms "Freshworks," "registrant," "we," "us," and "our" mean Freshworks Inc. and its subsidiaries unless the context indicates otherwise.**

**SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act), about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations and financial condition, business strategy, and plans and objectives of management for future operations are forward-looking statements. In some cases, forward-looking statements may be identified by words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will" or "would," or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding our annual recurring revenue (ARR), revenue, expenses, and other operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to acquire new customers and successfully retain existing customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to increase the number of users who access our platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to increase usage of existing products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to effectively manage our growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to achieve or sustain profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the costs and success of our sales and marketing efforts, and our ability to maintain and enhance our brand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the estimated addressable market opportunity for existing products and new products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our reliance on key personnel and our ability to identify, recruit, and retain skilled personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to effectively manage our growth, including any international expansion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully integrate acquired businesses, including D42 Parent, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of macroeconomic uncertainties, including high interest rates, foreign exchange rate volatility, global geopolitical uncertainties, inflationary pressures, and other macroeconomic factors beyond our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to protect our intellectual property rights and any costs associated therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to compete effectively with existing competitors and new market entrants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the size and growth rates of the markets in which we compete.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024 and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very

------

**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

Statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject, based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe that such information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

**Where You Can Find More Information**

We announce material information to the public through a variety of means, including filings with the U.S. Securities and Exchange Commission, press releases, public conference calls, our website (freshworks.com), the investor relations section of our website (ir.freshworks.com), our LinkedIn account (linkedin.com/company/freshworks-inc/), and our X (formerly Twitter) account (@FreshworksInc). We use these channels to communicate with investors and the public about our company, our products and services and other matters. Therefore, we encourage investors, the media and others interested in our company to review the information we make public in these locations, as such information could be deemed to be material information.

------

**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

**PART I. FINANCIAL INFORMATION** 

**ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)**

**FRESHWORKS INC.** 

**CONDENSED CONSOLIDATED BALANCE SHEETS**

*(in thousands, except share and per share amounts)*

*(unaudited)*

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| **Assets** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $485970 | $620315 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | 440226 | 449750 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance of $8,244 and $8,885 | 115864 | 122910 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred contract acquisition costs | 27508 | 26106 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 66942 | 46346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1136510 | 1265427 |
| Property and equipment, net | 30894 | 25893 |
| Operating lease right-of-use assets | 32358 | 36891 |
| Deferred contract acquisition costs, noncurrent | 24459 | 22534 |
| Goodwill | 146676 | 147014 |
| Intangible assets, net | 83818 | 90840 |
| Deferred tax assets | 8980 | 8499 |
| Other assets | 17131 | 14786 |
| Total assets | $1480826 | $1611884 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $4899 | $1619 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 86714 | 81933 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 339210 | 323435 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax payable | 1796 | 728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 432619 | 407715 |
| Operating lease liabilities, non-current | 26815 | 30221 |
| Other liabilities | 36750 | 36027 |
| Total liabilities | 496184 | 473963 |
| Commitments and contingencies (Note 8) |  |  |
| Stockholders' equity: |  |  |
| Preferred stock, $0.00001 par value per share; 10,000,000 shares authorized; zero shares issued and outstanding |  |  |
| Class A common stock, $0.00001 par value per share; 1,000,000,000 shares authorized; 238,553,324 and 244,965,000 shares issued and outstanding | 2 | 2 |
| Class B common stock, $0.00001 par value per share; 350,000,000 shares authorized; 53,489,007 and 58,417,396 shares issued and outstanding | 1 | 1 |
| Additional paid-in capital | 4723457 | 4874133 |
| Accumulated other comprehensive income (loss) | 102 | (338) |
| Accumulated deficit | (3738920) | (3735877) |
| Total stockholders' equity | 984642 | 1137921 |
| Total liabilities and stockholders' equity | $1480826 | $1611884 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**FRESHWORKS INC.** 

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

*(in thousands, except per share amounts)* 

*(unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenue | $204678 | $174131 | $400951 | $339274 |
| Cost of revenue | 31142 | 28175 | 61020 | 54065 |
| Gross profit | 173536 | 145956 | 339931 | 285209 |
| Operating expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 39943 | 40993 | 79944 | 75677 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 95223 | 104248 | 184381 | 198890 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 47026 | 44502 | 94273 | 86596 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges |  |  | 405 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 182192 | 189743 | 359003 | 361163 |
| Loss from operations | (8656) | (43787) | (19072) | (75954) |
| Interest and other income, net | 12547 | 13247 | 25516 | 26042 |
| Income (loss) before income taxes | 3891 | (30540) | 6444 | (49912) |
| Provision for (benefit from) income taxes | 5630 | (10356) | 9487 | (6403) |
| Net loss | $(1739) | $(20184) | $(3043) | $(43509) |
| Net loss per share - basic and diluted | $(0.01) | $(0.07) | $(0.01) | $(0.15) |
| Weighted average shares used in computing net loss per share - basic and diluted | 294435 | 299805 | 297839 | 298836 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**FRESHWORKS INC.** 

**CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS**

*(in thousands)*

 *(unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(1739) | $(20184) | $(3043) | $(43509) |
| Other comprehensive income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gain or loss on marketable securities | (433) | 118 | (747) | (598) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change on cash flow hedges | (73) | 127 | 1187 | 323 |
| Total other comprehensive income (loss) | (506) | 245 | 440 | $(275) |
| Comprehensive loss | $(2245) | $(19939) | $(2603) | $(43784) |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**FRESHWORKS INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

*(in thousands)*

*(unaudited)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other Comprehensive Income (Loss)** | **Accumulated Deficit** | **Total Stockholders' <br>Equity** |
| | **Shares** | **Amount** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other Comprehensive Income (Loss)** | **Accumulated Deficit** | **Total Stockholders' <br>Equity** |
| Balances as of March 31, 2025 | 298380 | $3 | $4798400 | $608 | $(3737181) | $1061830 |
| Issuance of common stock upon exercise of stock options | 43 |  | 14 |  |  | 14 |
| Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for taxes | 1519 |  | (13638) |  |  | (13638) |
| Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes | 281 |  | 3307 |  |  | 3307 |
| Repurchase and retirement of common stock, including excise tax | (8181) |  | (114683) |  |  | (114683) |
| Stock-based compensation |  |  | 50057 |  |  | 50057 |
| Other comprehensive income |  |  |  | (506) |  | (506) |
| Net loss |  |  |  |  | (1739) | (1739) |
| Balances as of June 30, 2025 | 292042 | $3 | $4723457 | $102 | $(3738920) | $984642 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Total Stockholders' Equity** |
| | **Shares** | **Amount** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Total Stockholders' Equity** |
| Balances as of March 31, 2024 | 298500 | $3 | $4743236 | $(1274) | $(3663834) | $1078131 |
| Issuance of common stock and options in connection with acquisition | 687 |  | 12874 |  |  | 12874 |
| Issuance of common stock upon exercise of stock options | 89 |  | 26 |  |  | 26 |
| Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for taxes | 1377 |  | (14651) |  |  | (14651) |
| Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes | 308 |  | 3630 |  |  | 3630 |
| Stock-based compensation |  |  | 55028 |  |  | 55028 |
| Other comprehensive income |  |  |  | 245 |  | 245 |
| Net loss |  |  |  |  | (20184) | (20184) |
| Balances as of June 30, 2024 | 300961 | $3 | $4800143 | $(1029) | $(3684018) | $1115099 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**FRESHWORKS INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

*(in thousands)*

*(unaudited)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Total Stockholders' Equity** |
| | **Shares** | **Amount** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Total Stockholders' Equity** |
| Balances as of December 31, 2024 | 303382 | $3 | $4874133 | $(338) | $(3735877) | $1137921 |
| Issuance of common stock upon exercise of stock options | 189 |  | 62 |  |  | 62 |
| Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for taxes | 3103 |  | (30392) |  |  | (30392) |
| Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes | 281 |  | 3307 |  |  | 3307 |
| Repurchase and retirement of common stock, including excise tax | (14913) |  | (226660) |  |  | (226660) |
| Stock-based compensation |  |  | 103007 |  |  | 103007 |
| Other comprehensive income |  |  |  | 440 |  | 440 |
| Net loss |  |  |  |  | (3043) | (3043) |
| Balances as of June 30, 2025 | 292042 | $3 | $4723457 | $102 | $(3738920) | $984642 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other Comprehensive Income** | **Accumulated Deficit** | **Total Stockholders' Equity** |
| | **Shares** | **Amount** | **Additional<br>Paid-in<br>Capital** | **Accumulated Other Comprehensive Income** | **Accumulated Deficit** | **Total Stockholders' Equity** |
| Balances as of December 31, 2023 | 296695 | $3 | $4713522 | $(754) | $(3640509) | $1072262 |
| Issuance of common stock and options in connection with acquisition | 687 |  | 12874 |  |  | 12874 |
| Issuance of common stock upon exercise of stock options | 121 |  | 36 |  |  | 36 |
| Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for taxes | 3150 |  | (37357) |  |  | (37357) |
| Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes | 308 |  | 3630 |  |  | 3630 |
| Stock-based compensation |  |  | 107438 |  |  | 107438 |
| Unrealized loss on marketable securities |  |  |  | (275) |  | (275) |
| Net loss |  |  |  |  | (43509) | (43509) |
| Balances as of June 30, 2024 | 300961 | $3 | $4800143 | $(1029) | $(3684018) | $1115099 |

---

------

**FRESHWORKS INC.** 

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

*(in thousands)*

*(unaudited)*

---

| | | |
|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** |
| **Cash Flows from Operating Activities:** |  |  |
| Net loss | $(3043) | $(43509) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 12641 | 6713 |
| &nbsp;&nbsp;&nbsp;Amortization of deferred contract acquisition costs | 15431 | 13538 |
| &nbsp;&nbsp;&nbsp;Non-cash lease expense | 4623 | 4399 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 100944 | 107581 |
| &nbsp;&nbsp;&nbsp;Discount amortization on marketable securities | (3694) | (8721) |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | (459) | (13801) |
| &nbsp;&nbsp;&nbsp;Other | 470 | (231) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 6981 | 4948 |
| &nbsp;&nbsp;&nbsp;Deferred contract acquisition costs | (18758) | (16902) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (22689) | (7176) |
| &nbsp;&nbsp;&nbsp;Accounts payable | 3280 | 5981 |
| &nbsp;&nbsp;&nbsp;Accrued and other liabilities | 7813 | 8873 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 15439 | 17219 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | (2415) | (1957) |
| Net cash provided by operating activities | 116564 | 76955 |
| **Cash Flows from Investing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of property and equipment | (1676) | (3054) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment | 40 | 63 |
| &nbsp;&nbsp;&nbsp;Capitalized internal-use software | (7448) | (2406) |
| &nbsp;&nbsp;&nbsp;Purchases of marketable securities | (347206) | (393183) |
| &nbsp;&nbsp;&nbsp;Maturities and redemptions of marketable securities | 359679 | 391990 |
| &nbsp;&nbsp;&nbsp;Business combination, net of cash acquired |  | (213905) |
| Net cash provided by (used in) investing activities | 3389 | (220495) |
| **Cash Flows from Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock under employee stock purchase plan, net | 3307 | 3630 |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | 62 | 36 |
| &nbsp;&nbsp;&nbsp;Payment of withholding taxes on net share settlement of equity awards | (30460) | (37984) |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock | (227196) |  |
| Net cash used in financing activities | (254287) | (34318) |
| Net decrease in cash, cash equivalents and restricted cash | (134334) | (177858) |
| Cash, cash equivalents and restricted cash, beginning of period | 620405 | 488216 |
| Cash, cash equivalents and restricted cash, end of period | $486071 | $310358 |
| **Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $485970 | $310266 |
| &nbsp;&nbsp;&nbsp;Restricted cash included in prepaid expenses and other current assets |  | 3 |
| &nbsp;&nbsp;&nbsp;Restricted cash included in other assets | 101 | 89 |
| &nbsp;&nbsp;&nbsp;Total cash, cash equivalents and restricted cash | $486071 | $310358 |

---

---

| | | |
|:---|:---|:---|
| **Supplemental cash flow information:** | | |
| &nbsp;&nbsp;&nbsp;Cash paid for taxes | $7146 | $4189 |
| **Non-cash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets obtained in exchange for operating lease obligations, net of modifications | $90 | $4601 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation capitalized as internal-use software | $1713 | $756 |
| &nbsp;&nbsp;&nbsp;Issuance of common stock and options in connection with acquisition | $— | $12874 |
| &nbsp;&nbsp;&nbsp;Excise tax liability accrued for common stock repurchased | $1305 | $— |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

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**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

**FRESHWORKS INC.** 

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**1. Basis of Presentation and Summary of Significant Accounting Policies**

***Basis of Presentation and Principles of Consolidation***

The accompanying condensed consolidated financial statements of Freshworks Inc. and its subsidiaries have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation.

The accompanying condensed consolidated balance sheet as of June 30, 2025, the condensed consolidated statements of operations, of comprehensive loss, of cash flows, and of stockholders'equity for the three and six months ended June 30, 2025 and 2024, and the related notes to such condensed consolidated financial statements are unaudited. These unaudited condensed consolidated financial statements are presented in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. In management's opinion, the unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of our financial position as of June 30, 2025 and our results of operations and cash flows for the three and six months ended June 30, 2025 and 2024. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period.

The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 20, 2025.

***Use of Estimates***

The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• determination of standalone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• allowance for doubtful accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• benefit period of deferred contract acquisition costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• capitalization of internal-use software development costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair value of goodwill;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• useful lives of long-lived assets, including intangible assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• valuation of deferred tax assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• valuation of employee defined benefit plan and other compensation liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair value of share-based awards; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• incremental borrowing rate used for operating leases.

***Concentrations of Risk***

Financial instruments that potentially expose us to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. Our cash, cash equivalents and marketable securities are generally held with large financial institutions and are in excess of the federally insured limits provided on such deposits. In addition, we have cash and cash equivalents held in international bank accounts, which are denominated primarily in euros, British Pounds, and Indian Rupees.

There were no customers that individually exceeded 10% of our revenue for the three and six months ended June 30, 2025 and 2024 or that represented 10% or more of our consolidated accounts receivable balance as of June 30, 2025.

We primarily rely upon our third-party cloud infrastructure partner, Amazon Web Services, to serve customers and operate certain aspects of its services. Any disruption of this cloud infrastructure partner would impact our operations and our business could be adversely impacted.

***Significant Accounting Policies***

Our significant accounting policies are described in the Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes to these policies that have had a material impact on the condensed consolidated financial statements and the related notes for the three and six months ended June 30, 2025.

***Recent Accounting Pronouncements***

*Accounting Standards Not Yet Adopted*

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires entities to provide more information in the rate reconciliation table and about income taxes paid, including certain disclosures that would be disaggregated by jurisdiction and other categories. This authoritative guidance should be applied prospectively and will be effective for us starting in our annual disclosures for 2025. Retrospective application is permitted. This guidance is only related to disclosures and is not expected to have a significant impact on our condensed consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses, which requires more detailed information about specified categories of expenses included in certain expense captions presented on the face of the income statement. This authoritative guidance is effective for us starting in our annual disclosures for 2027 and interim periods starting 2028. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. This guidance is only related to disclosure and is not expected to have a significant impact on our condensed consolidated financial statements.

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**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

**2. Cash Equivalents and Marketable Securities**

Cash equivalents and available-for-sale debt securities consisted of the following as of the periods presented below (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Amortized Cost** | **Unrealized Gains** | **Unrealized Losses** | **Fair Value** |
| Cash equivalents: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market funds | $308108 | $— | $— | $308108 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. treasury securities | 46104 |  | (1) | 46103 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government agency securities | 11738 |  | (1) | 11737 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial paper | 52980 |  |  | 52980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash equivalents | 418930 |  | (2) | 418928 |
| Debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. treasury securities | 192126 | 220 | (47) | 192299 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government agency securities | 102914 | 61 | (28) | 102947 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities | 47228 | 57 | (24) | 47261 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial paper | 8169 |  |  | 8169 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 89550 |  |  | 89550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt securities | 439987 | 338 | (99) | 440226 |
| Total cash equivalents and debt securities | $858917 | $338 | $(101) | $859154 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Amortized Cost** | **Unrealized Gains** | **Unrealized Losses** | **Fair Value** |
| Cash equivalents: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market funds | $507655 | $— | $— | $507655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash equivalents | 507655 |  |  | 507655 |
| Debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. treasury securities | 215773 | 612 | (17) | 216368 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government agency securities | 144474 | 321 | (12) | 144783 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities | 45682 | 101 | (21) | 45762 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial paper | 16388 |  |  | 16388 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 26449 |  |  | 26449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt securities | 448766 | 1034 | (50) | 449750 |
| Total cash equivalents and debt securities | $956421 | $1034 | $(50) | $957405 |

---

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**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

The following table presents gross unrealized losses and fair values for the securities that were in a continuous unrealized loss position as of the periods presented below (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Less than 12 months** | **Less than 12 months** | **Greater than 12 months** | **Greater than 12 months** | **Total** | **Total** |
| | **Fair Value** | **Unrealized Loss** | **Fair Value** | **Unrealized Loss** | **Fair Value** | **Unrealized Loss** |
| U.S. treasury securities | $80632 | $(47) | $— | $— | $80632 | $(47) |
| U.S. government agency securities | 42306 | (28) |  |  | 42306 | (28) |
| Corporate debt securities | 24361 | (24) |  |  | 24361 | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $147299 | $(99) | $— | $— | $147299 | $(99) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or Greater** | **12 Months or Greater** | **Total** | **Total** |
| | **Fair Value** | **Unrealized Loss** | **Fair Value** | **Unrealized Loss** | **Fair Value** | **Unrealized Loss** |
| U.S. treasury securities | $13819 | $(16) | $4993 | $(1) | $18812 | $(17) |
| U.S. government agency securities | 8197 | (7) | 9995 | (5) | 18192 | (12) |
| Corporate debt securities | 7998 | (19) | 5982 | (2) | 13980 | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $30014 | $(42) | $20970 | $(8) | $50984 | $(50) |

---

The amortized cost and fair value of the available-for-sale debt securities based on contractual maturities are as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** |
| | **Amortized Cost** | **Fair Value** |
| Due within one year | $387115 | $387382 |
| Due after one year but within five years | 52872 | 52844 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $439987 | $440226 |

---

Accrued interest receivable of $2.8 million and $3.3 million was classified in prepaid expenses and other current assets in the condensed consolidated balance sheet as of June 30, 2025 and December 31, 2024, respectively

**3. Fair Value Measurements**

We measure our financial assets at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

***Level 1***—Inputs are observable and reflect quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.

***Level 2***—Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

***Level 3***—Inputs that are unobservable.

Money market funds and U.S. treasury securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Other debt securities and investments are classified within Level 2 if the investments are valued using model driven valuations

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which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Available-for-sale debt securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models.

We did not have any assets or liabilities subject to fair value remeasurement on a nonrecurring basis as of June 30, 2025 and December 31, 2024.

***Assets and Liabilities Measured at Fair Value on a Recurring Basis***

The following table represents the fair value hierarchy for our financial assets measured at fair value on a recurring basis as of the periods presented below (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Fair Value Measured Using** | **Fair Value Measured Using** | **Fair Value Measured Using** |
| | **Level 1** | **Level 2** | **Total** |
| **Financial assets:** | | | |
| Cash equivalents: |  |  |  |
| &nbsp;&nbsp;&nbsp;Money market funds | $308108 | $— | $308108 |
| &nbsp;&nbsp;&nbsp;U.S. treasury securities | 46103 |  | 46103 |
| &nbsp;&nbsp;&nbsp;U.S. government agency securities |  | 11737 | 11737 |
| &nbsp;&nbsp;&nbsp;Commercial paper |  | 52980 | 52980 |
| Marketable securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. treasury securities | 192299 |  | 192299 |
| &nbsp;&nbsp;&nbsp;U.S. government agency securities |  | 102947 | 102947 |
| &nbsp;&nbsp;&nbsp;Corporate debt securities |  | 47261 | 47261 |
| &nbsp;&nbsp;&nbsp;Commercial paper |  | 8169 | 8169 |
| &nbsp;&nbsp;&nbsp;Certificates of deposit |  | 89550 | 89550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total financial assets | $546510 | $312644 | $859154 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Fair Value Measured Using** | **Fair Value Measured Using** | **Fair Value Measured Using** |
| | **Level 1** | **Level 2** | **Total** |
| **Financial assets:** | | | |
| Cash equivalents: |  |  |  |
| &nbsp;&nbsp;&nbsp;Money market funds | $507655 | $— | $507655 |
| Marketable securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. treasury securities | 216368 |  | 216368 |
| &nbsp;&nbsp;&nbsp;U.S. government agency securities |  | 144783 | 144783 |
| &nbsp;&nbsp;&nbsp;Corporate debt securities |  | 45762 | 45762 |
| &nbsp;&nbsp;&nbsp;Commercial paper |  | 16388 | 16388 |
| &nbsp;&nbsp;&nbsp;Certificates of deposit |  | 26449 | 26449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total financial assets | $724023 | $233382 | $957405 |

---

The fair value of derivative assets and liabilities as of June 30, 2025, and all related unrealized and realized gains and losses during the three and six months ended June 30, 2025, were not material. As of June 30, 2025 and December 31, 2024, the total notional amount of outstanding designated foreign currency forward contracts was $63.6 million and $50.5 million, respectively.

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**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

**4. Balance Sheet Components**

***Property and Equipment, net***

The following table summarizes property and equipment, net as of the periods presented below (in thousands):

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Computers | $19472 | $19694 |
| Capitalized internal-use software | 43416 | 34255 |
| Office equipment | 7045 | 6700 |
| Furniture and fixtures | 10187 | 10066 |
| Motor vehicles | 267 | 400 |
| Leasehold improvements | 8333 | 7847 |
| Construction in progress |  | 13 |
| &nbsp;&nbsp;Total property and equipment | 88720 | 78975 |
| Less: accumulated depreciation and amortization | (57826) | (53082) |
| &nbsp;&nbsp;Property and equipment, net | $30894 | $25893 |

---

The following table summarizes depreciation expense and internal-use software capitalization and amortization during the periods presented below (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Capitalization of costs associated with internal-use software | 5697 | 1581 | 9161 | 3162 |
| Amortization expense of capitalized internal-use software | 1634 | 1432 | 3274 | 2795 |
| Depreciation expense | 1138 | 1342 | 2345 | 2942 |

---

As of June 30, 2025 and December 31, 2024, the net carrying value of capitalized internal-use software was $20.4 million and $14.5 million, respectively.

***Accrued Liabilities***

The following table summarizes accrued liabilities as of the periods presented below (in thousands):

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Accrued compensation | $24980 | $28269 |
| Accrued third-party cloud infrastructure expenses | 3375 |  |
| Accrued reseller commissions | 14430 | 11569 |
| Accrued advertising and marketing expenses | 4734 | 4414 |
| Advanced payments from customers | 5668 | 4487 |
| Accrued taxes | 13041 | 14747 |
| Operating lease liabilities, current | 9208 | 8073 |
| Contributions withheld for employee stock purchase plan | 1116 | 1127 |
| Unsettled share repurchases |  | 1840 |
| Other accrued expenses | 10162 | 7407 |
| Total accrued liabilities | $86714 | $81933 |

---

Noncurrent liabilities include $20.9 million and $21.1 million of long term accrued compensation as of June 30, 2025 and December 31, 2024, respectively.

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**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

**5. Business Combinations**

In June 2024, we acquired all outstanding shares of D42 Parent, Inc., an IT asset management company, for $238.1 million. This consideration included a combination of approximately $225.3 million in cash, $8.9 million in common stock issued, and $3.9 million in assumed and converted stock option awards. Through the combination, we are able to offer a more comprehensive IT solution for customers. The identifiable assets and liabilities acquired are primarily $140.8 million of goodwill, $99.0 million of intangible assets, and $(1.7) million in other net assets and liabilities. The assets acquired and liabilities assumed were recorded at fair value. As of June 30, 2025, we finalized the purchase price allocation, including the valuation pertaining to deferred tax liabilities. An immaterial adjustment was recorded during the measurement period, resulting in a decrease to goodwill and an increase to deferred tax balances.

We have included the operating results of D42 Parent, Inc. in our condensed consolidated financial statements since the date of the acquisition.

The following unaudited supplemental pro forma financial information is provided for informational purposes only and summarizes the combined results of operations as if the acquisition had occurred on January 1, 2023 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2024** | **2023** | **2024** | **2023** |
| Revenue | $180588 | $153690 | $354445 | $300038 |
| Net loss | $(20129) | $(40985) | $(47195) | $(86699) |

---

The unaudited supplemental pro forma results reflect certain adjustments for the amortization of acquired intangible assets, recognition of stock-based compensation, and acquisition-related transaction expenses. Such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisition been completed on the date indicated, nor is it indicative of our future operating results.

**6. Intangible Assets, Net**

Acquired intangible assets consist of developed technology, customer relationships and trademarks and are amortized on a straight-line basis over their estimated useful lives. The following tables summarize acquired intangible assets as of the periods presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Gross Amount** | **Accumulated Amortization** | **Net Carrying Value** | **Weighted Average Remaining Useful Life** |
| | **(amounts in thousands)** | **(amounts in thousands)** | **(amounts in thousands)** | **(in years)** |
| Developed technology | $41196 | $(15958) | $25238 | 4.9 |
| Customer relationships | 69200 | (10620) | 58580 | 6.9 |
| Trademarks | 700 | (700) |  | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $111096 | $(27278) | $83818 |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Gross Amount** | **Accumulated Amortization** | **Net Carrying Value** | **Weighted Average Remaining Useful Life** |
| | **(amounts in thousands)** | **(amounts in thousands)** | **(amounts in thousands)** | **(in years)** |
| Developed technology | $41196 | $(13423) | $27773 | 5.4 |
| Customer relationships | 69200 | (6433) | 62767 | 7.4 |
| Trademarks | 700 | (400) | 300 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $111096 | $(20256) | $90840 |  |

---

Amortization of acquired intangible assets is as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Cost of revenue | $1275 | $350 | $2536 | $350 |
| Sales and marketing | 2233 | 626 | 4486 | 626 |
| Total amortization expense | $3508 | $976 | $7022 | $976 |

---

As of June 30, 2025, expected future amortization expense related to acquired intangible assets is as follows (in thousands):

---

| | |
|:---|:---|
| **Year Ending December 31,** | **Amortization Expense** |
| Remainder of 2025 | $6833 |
| 2026 | 13553 |
| 2027 | 13553 |
| 2028 | 13590 |
| 2029 | 13553 |
| Thereafter | 22736 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total future amortization | $83818 |

---

**7. Leases**

We have operating leases primarily for office space. The leases have remaining lease terms of one to seven years, some of which include options to extend the lease for up to an additional six years. Our leases do not contain any residual value guarantee.

The following table presents various components of the lease costs (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Operating Leases** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Operating lease cost | $3181 | $3333 | $6289 | $6064 |
| Short-term lease cost | 153 | 116 | 283 | 217 |
| Variable lease cost | 1228 | 949 | 2531 | 1860 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease cost | $4562 | $4398 | $9103 | $8141 |

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The weighted-average remaining term of our operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Lease Term and Discount Rate** | **June 30, 2025** | **June 30, 2024** |
| Weighted-average remaining lease term (in years) | 3.9 | 4.7 |
| Weighted-average discount rate | 8.9% | 9.0% |

---

The following table presents supplemental information arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of the operating lease liabilities, and as such, are excluded from the amounts below (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|<br>**Supplemental Cash Flow Information:** | **2025** | **2024** | **2025** | **2024** |
| Cash payments included in the measurement of operating lease liabilities, net of tenant allowance receipts | $3715 | $498 | $4752 | $4001 |

---

As of June 30, 2025, maturities of the operating lease liabilities are as follows (in thousands):

---

| | |
|:---|:---|
| | **Operating Leases** |
| Remainder of 2025 | $5718 |
| 2026 | 11998 |
| 2027 | 9861 |
| 2028 | 8724 |
| 2029 | 3932 |
| Thereafter | 3015 |
| Total lease payments | 43248 |
| Less: imputed interest | (7225) |
| Present value of operating lease liabilities | $36023 |

---

As of June 30, 2025, there were no material future payments related to signed leases that have not yet commenced.

In July 2025, we entered into lease agreements related to our headquarters in San Mateo. See Note 15—Subsequent Events

**8. Commitments and Contingencies**

***Other Contractual Commitments***

Our other contractual commitments primarily consist of third-party cloud infrastructure agreements, service subscription purchase arrangements used to support operations at the enterprise level, and sponsorship arrangement to promote our brand and services. As of June 30, 2025, other contractual commitments totaling $284.0 million remain outstanding under these agreements through 2028.

***Litigation and Loss Contingencies***

On November 1, 2022, a purported Company stockholder filed a securities class action complaint in the U.S. District Court for the Northern District of California against us, certain of our current officers and directors, and underwriters of our initial public offering (IPO). On February 8, 2023, the court-appointed lead plaintiff and lead counsel. On April 14, 2023, lead plaintiff filed an amended complaint. The amended complaint alleges that defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 by making material misstatements or

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omissions in offering documents filed in connection with our IPO. The amended complaint seeks unspecified damages, interest, fees, costs, and rescission on behalf of purchasers and/or acquirers of common stock issued in our IPO. On September 28, 2023, the court issued an order granting in part and denying in part defendants' motion to dismiss. On January 16, 2025, we filed a motion for summary judgment, which the court granted and entered judgment in our and the other defendants' favor on April 10, 2025. Plaintiff filed a notice of appeal, and has until July 31, 2025 to appeal the judgment.

On March 20, 2023, a purported stockholder derivative complaint was filed in the U.S. District Court for the Northern District of California. The complaint names as defendants our current directors, as well as Freshworks, as nominal defendant, and asserts state and federal claims based on some of the same alleged misstatements as the securities class action complaint. The derivative complaint seeks unspecified damages, attorneys' fees, and other costs. On June 21, 2023, the court stayed the case in light of the pending securities class action. On October 16, 2023, the court extended the stay of the case in light of the pending securities class action. We and the other defendants continue to vigorously defend against the claims in this action.

From time to time, we have been and may be in the future subject to other legal proceedings, claims, investigations, and government inquiries (collectively, legal proceedings) in the ordinary course of business. We have received and may receive claims from third parties asserting, among other things, infringement of their intellectual property rights, defamation, labor and employment rights, privacy, and contractual rights. There are no currently pending legal proceedings that we believe will have a material adverse impact on our business or condensed consolidated financial statements.

***Indemnifications***

In the ordinary course of business, we enter into contractual arrangements under which we agree to provide indemnification of varying scope and terms to customers, business partners, and other parties with respect to certain matters, including losses arising out of intellectual property infringement claims made by third parties, if we have violated applicable laws, if we are negligent or commit acts of willful misconduct, and other liabilities with respect to its products and services and its business. In these circumstances, payment is typically conditional on the other party making a claim pursuant to the procedures specified in the particular contract. We also indemnify certain of our officers, directors and employees while they are serving in good faith in their respective capacities. To date, we have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in its condensed consolidated financial statements.

**9. Revenue From Contracts with Customers**

We primarily derive revenue from subscription fees and related professional services, as well as through sale of software licenses with associated maintenance and professional services.

We sell subscriptions and software licenses directly to customers and indirectly through channel partners with arrangements that are non-cancelable and non-refundable. Our subscription arrangements do not provide customers with the right to take possession of the software supporting the solutions and, as a result, are accounted for as service arrangements. Subscription revenue is recognized ratably over the contract term when the cloud-based software is made available to customers.

Software license revenue is generally sold as bundled arrangements that include the rights to a software license and maintenance and cloud-based software in some cases. For software licenses sold with maintenance and professional services, revenue from the software license is recognized when the software is made available to the

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customer and maintenance revenue is recognized as support and updates are provided, which is generally ratably over the contract term.

Professional services revenue is comprised of fees charged for services ranging from product configuration, data migration, systems integration, and training. We recognize professional services revenues as services are performed.

We record revenue net of sales or value-added taxes.

***Disaggregation of Revenue***

The following table summarizes revenue by our product and service offerings during the periods presented (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Subscription services, software licenses and maintenance | 201982 | $171604 | $396175 | $334173 |
| Professional services | 2696 | 2527 | 4776 | 5101 |
| &nbsp;&nbsp;&nbsp;Total revenue | $204678 | $174131 | $400951 | $339274 |

---

See Note 10 for revenue by geographic location.

***Unbilled Receivables, Deferred Revenue and Remaining Performance Obligations***

Unbilled receivables primarily represent revenue recognized in excess of billings from non-cancellable multi-year contract arrangements. As of June 30, 2025 and December 31, 2024, we had $7.3 million and $6.3 million of unbilled receivables, respectively. Unbilled receivables are included within accounts receivable, net on the condensed consolidated balance sheets.

Deferred revenue consists of customer billings in excess of revenue being recognized. As of June 30, 2025 and December 31, 2024, non-current deferred revenue of $3.5 million and $3.9 million, respectively, was included in other liabilities on the condensed consolidated balance sheet.

Revenue recognized during the three months ended June 30, 2025 and 2024 from amounts included in deferred revenue at the beginning of these periods was $152.1 million and $127.8 million, respectively. Revenue recognized during the six months ended June 30, 2025 and 2024 from amounts included in deferred revenue at the beginning of these periods was $243.8 million and $202.3 million, respectively.

The aggregate balance of remaining performance obligations as of June 30, 2025 was $568.9 million. We expect to recognize $414.3 million of the balance as revenue in the next 12 months and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future

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periods.

***Deferred Contract Acquisition Costs***

The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Balance at beginning of the period | $49761 | $43092 | $48640 | $42672 |
| &nbsp;&nbsp;&nbsp;Add: Contract costs capitalized during the period | 10054 | 9830 | 18758 | 16902 |
| &nbsp;&nbsp;&nbsp;Less: Amortization of contract costs during the period | (7848) | (6886) | (15431) | (13538) |
| Balance at end of the period | $51967 | $46036 | $51967 | $46036 |

---

**10. Segment and Geographic Information**

We operate in a single operating segment composed of the condensed consolidated financial results of Freshworks. Our Chief Executive Officer (CEO) is the chief operating decision maker (CODM) of Freshworks and the key measures of segment profit or loss that our CODM uses to allocate resources and assess performance is our revenue and consolidated net loss. Significant segment expenses reviewed by our CODM for our single operating segment comprise of stock-based compensation, amortization of acquired intangible assets, and other segment expenses. Other segment expenses utilize operating expenses recognized as research and development, selling and marketing, and general and administrative expenses within our condensed consolidated statement of operations less stock-based compensation and amortization of acquired intangible assets, and primarily related to personnel-related costs. Refer to Note 11—Stockholders' Equity and Stock-Based Compensation and Note 6—Intangible Assets, Net for information regarding amounts pertaining to stock-based compensation and amortization of acquired intangibles.

Revenue by geographic location is determined based on the customers' billing address. The following table summarizes revenue by geographic location (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| North America | $95140 | $78907 | $186611 | $152937 |
| Europe, Middle East and Africa | 79279 | 67266 | 155089 | 131373 |
| Asia Pacific | 24704 | 22781 | 48058 | 44844 |
| Other | 5555 | 5177 | 11193 | 10120 |
| &nbsp;&nbsp;&nbsp;Total revenue | $204678 | $174131 | $400951 | $339274 |

---

Revenue from North America consists primarily of revenue from the United States. For the three months ended June 30, 2025 and 2024, revenue generated from the United States was approximately $86.1 million and $70.4 million, or approximately 42% and 40% of total consolidated revenue, respectively. For the six months ended June 30, 2025 and 2024, revenue generated from the United States was $168.5 million and $136.2 million, or 42% and 40% of total consolidated revenue, respectively.

The United Kingdom, included within Europe, Middle East and Africa in the table above, contributed $27.2 million and $22.2 million, or approximately 13% and 13% of total consolidated revenue for the three months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, revenue generated from

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the United Kingdom was $54.3 million and $43.4 million, or 14% and 13% of the total consolidated revenue, respectively.

Long-lived assets consist primarily of property, plant and equipment and ROU assets. The following table summarizes long-lived assets by geographic information (in thousands):

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| North America | $24996 | $20052 |
| Europe, Middle East and Africa | 7410 | 8391 |
| Asia Pacific | 30846 | 34341 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-lived assets | $63252 | $62784 |

---

Long-lived assets in North America are primarily located in the United States, and long-lived assets in Asia Pacific are primarily located in India.

**11. Stockholders' Equity and Stock-Based Compensation**

***Share Repurchase***

In November 2024, our board of directors (the Board) approved the share repurchase program, which authorized the repurchase of up to $400 million of our outstanding Class A common stock. During the three and six months ended June 30, 2025 we repurchased a total of 8,180,399 shares and 14,912,789 shares of Class A common stock, respectively, under this program in open market transactions for an aggregate purchase price of $113.6 million and $225.4 million, resulting in an average price of $13.89 per share and $15.11 per share, respectively. As of June 30, 2025, $159.1 million remained available for future share repurchases under the program. All shares of Class A common stock subsequently repurchased were retired. Upon retirement, the par value of the common stock repurchased was deducted from common stock and any excess of repurchase price over par value was recorded entirely to additional-paid-in capital, or in the absence of additional-paid-in capital, to accumulated deficit, in the condensed consolidated balance sheets.

***Equity Compensation Plans***

In August 2021, the Board adopted the 2021 Equity Incentive Plan (the 2021 Plan) and the 2021 Employee Stock Purchase Plan (ESPP). Pursuant to the 2021 Plan, the Board may grant incentive stock options to purchase shares of our common stock, non-statutory stock options to purchase shares of our common stock, stock appreciation rights, restricted stock, restricted stock units (RSUs), performance restricted stock units (PRSUs) and other awards. The ESPP enables eligible employees to purchase shares of our Class A common stock. Both the 2021 Plan and ESPP include an automatic increase to their shares reserve on January 1 of each year as set forth in the respective plan documents.

In August 2022, the Compensation Committee of the Board adopted the 2022 Inducement Plan (the Inducement Plan) in accordance with Listing Rule 5635(c)(4) of the Nasdaq Stock Market. Under the Inducement Plan, nonstatutory stock options, stock appreciation rights, restricted stock, RSUs, PRSUs and other awards may be granted as an inducement material to an eligible person's entering into employment with us.

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Shares of common stock outstanding and reserved for future issuance were as follows (in thousands):

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| | |
|:---|:---|
| | **June 30, 2025** |
| 2011 Stock Plan: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Options, RSUs and PRSUs outstanding | 551 |
| 2021 Equity Incentive Plan: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Options, RSUs and PRSUs outstanding <sup>(1)</sup> | 24759 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares reserved for future award issuances | 89465 |
| 2022 Inducement Plan: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Options and RSUs outstanding | 2412 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares reserved for future award issuances | 6811 |
| 2021 Employee Stock Purchase Plan |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares reserved for future award issuances | 15714 |
| Total awards outstanding and shares of common stock reserved for issuance | 139712 |

---

(1)Outstanding shares include the 2025 Executive PRSUs as discussed below, based on 100% achievement of target performance.

***2021 Employee Stock Purchase Plan***

Under the ESPP, the price at which common stock is purchased is equal to 85% of the fair market value of a share of our common stock on the first day of the offering period or the applicable purchase date, whichever is lower. The fair market value of common stock will generally be the closing sales price on the determination date. The ESPP provides an offering period of 24 months. We issued 280,870 and 308,059 shares under the ESPP in the three and six months ended June 30, 2025 and 2024, respectively, in each case net of shares withheld and retired to satisfy withholding tax requirements for certain employees in jurisdictions outside the United States. The weighted average purchase price per share was $11.84 with aggregate net proceeds of $3.3 million in the three and six months ended June 30, 2025, and the weighted average purchase price was $11.85 with aggregate net proceeds of $3.6 million in the three and six months ended June 30, 2024.

The ESPP also includes a reset provision for the purchase price if the fair market value of a share of our common stock on the first day of any purchase period is less than or equal to the fair market value of a share of our common stock on the first day of an ongoing offering. If the reset provision is triggered, a new 24-month offering period begins. Each triggering of the reset provision was considered a modification in accordance with ASC 718, *Stock Based Compensation*, *and* the modification charge recognized on a straight-line basis over the new offering period. Historically, the reset provision has been triggered by stock price declines, and the resulting modification have not been material on our stock-based compensation expense.

Stock-based compensation expense related to the ESPP was $1.1 million and $1.3 million for the three months ended June 30, 2025 and 2024, respectively, and $2.0 million and $2.5 million for the six months ended June 30, 2025 and 2024, respectively.

***Determination of Fair Value of the ESPP***

We estimate the fair value of the ESPP using the Black-Scholes option-pricing model, which requires certain complex valuation assumption inputs such as expected term, expected stock price volatility, risk-free interest rate, and dividend yield. The fair value of each of the four purchase periods is estimated separately. The following table summarizes the range of valuation assumptions used in estimating the fair value of the ESPP during the period.

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| | | |
|:---|:---|:---|
| | **Three and Six Months Ended June 30,** | **Three and Six Months Ended June 30,** |
|<br>**Valuation Assumption Inputs** | **2025** | **2024** |
| Expected terms (in years) | 0.5 - 1.0 | 0.5 - 2.0 |
| Stock price volatility | 48.2% - 48.5% | 48.3% - 57.2% |
| Risk-free interest rate | 4.13% - 4.30% | 4.78% - 5.41% |
| Dividend yield | —% | —% |

---

***Stock Options***

Stock options are generally granted with an exercise price equal to the fair market value of a share of common stock on the date of grant, have a 10-year contractual term, and vest over a four-year period.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Share Information:** | **Number of Shares (in thousands)** | **Weighted-Average Exercise Price** | **Weighted-Average Remaining Contractual Term (in years)** | **Aggregate Intrinsic Value (in thousands)** <sup>(1)</sup> |
| **Balance as of December 31, 2024** | 2569 | $10.30 | 7.4 | $15066 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock options expired | (11) | $0.42 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock options exercised | (189) | $0.33 |  |  |
| **Balance as of June 30, 2025** | 2369 | $11.14 | 7.4 | $9138 |
| Options vested and expected to vest as of June 30, 2025 | 2369 | $11.14 | 7.4 | $9138 |
| Options exercisable as of June 30, 2025 | 1290 | $13.19 | 7.0 | $2341 |

---

(1)Aggregate intrinsic value for stock options represents the difference between the exercise price and the per share fair value of our common stock as of the end of the period, multiplied by the number of stock options outstanding, exercisable, or vested.

***Restricted Stock Units***

RSUs are granted at fair market value as of the date of the grant and typically vest over a four-year period.

RSU activity, which includes PRSUs, during the six months ended June 30, 2025 was as follows:

---

| | | |
|:---|:---|:---|
| **Share Information:** | **Number of Shares** | **Weighted-Average Grant Date Fair Value Per Share** |
| | **(in thousands, except per share data)** | **(in thousands, except per share data)** |
| **Unvested, as of December 31, 2024** | 21797 | $18.54 |
| Granted | 10878 | $15.60 |
| Vested <sup>(1)</sup> | (5000) | $21.20 |
| Forfeited/Cancelled | (2322) | $16.36 |
| **Unvested, as of June 30, 2025** | 25353 | $16.96 |

---

(1) During the six months ended June 30, 2025, total shares that vested were 5.0 million, of which 1.9 million were withheld for tax purposes.

The total fair value of vested RSUs during the three months ended June 30, 2025 and 2024 was $50.4 million and $43.5 million, respectively. For the six months ended June 30, 2025 and 2024, the total fair value of vested RSUs was $106.0 million and $88.6 million, respectively.

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***Performance-Based Awards***

*Executive Chairman Awards*

In September 2021, the Board approved a grant of 6,000,000 PRSUs to the Company's then CEO, now current Executive Chairman, with a time-based service condition beginning January 1, 2022, and a market condition involving five separate stock price hurdles ranging from $70.00 to $200.00 per share for each of the five vesting tranches (2021 Executive Chairman Performance Award). In February 2024, the Board approved the cancellation of the 2021 Executive Chairman Performance Award and the grant of a new 2024 Executive Chairman Award, both effective March 1, 2024. The 2024 Executive Chairman Award comprised of 70% time-based RSUs that vest quarterly over four years and 30% PRSUs with terms consistent with the 2024 Executive PRSUs discussed below. The 2024 Executive Chairman Award is considered a modification and the remaining unrecognized stock-based compensation expense of $61.9 million from the 2021 Executive Chairman Performance Award is being recognized over the vesting period of the modified awards. During the three months ended June 30, 2025 and 2024, we recognized $4.2 million and $5.8 million, respectively, of stock-based compensation expense related to the 2024 Executive Chairman Award. For the six months ended June 30, 2025 and 2024, we recognized $9.4 million and $7.7 million, respectively, of stock-based compensation expense related to the 2024 Executive Chairman Award. As of March 31, 2025, the performance conditions for this award have been met and time-based vesting was the only condition yet to be satisfied over the remaining requisite service period.

*Executive PRSUs*

In March 2025 and February 2024, the Board approved the grant of PRSUs to certain members of the executive team (Executive PRSUs), subject to service and performance-based vesting conditions. The performance-based vesting conditions include revenue and free cash flow targets for each respective performance year, from January 1 to December 31, and vest over three years from the grant date. 70% and 30% of each Executive PRSU award will be earned based on our achievement of revenue and free cash flow targets, respectively. As of March 31, 2025, the performance conditions for the 2024 Executive PRSUs have been met and time-based vesting was the only condition yet to be satisfied over the remaining requisite service period. The 2025 performance target allows our executives to earn up to a maximum of 173.6% of target performance in the aggregate for significant outperformance.

The fair value of each PRSU is based on the fair value of our common stock on the date of grant. Stock-based compensation associated with these Executive PRSUs is recognized using the accelerated attribution method over the requisite service period, based on our periodic assessment of the probability that the performance will be achieved. During the three months ended June 30, 2025 and 2024, we recognized $2.5 million and $1.9 million of stock-based compensation expense related to the Executive PRSUs, respectively. For the six months ended June 30, 2025 and 2024, we recognized $4.4 million and $2.5 million of stock-based compensation expense related to the Executive PRSUs, respectively.

***Stock-Based Compensation***

Total stock-based compensation expense recorded for the three and six months ended June 30, 2025 and 2024 was as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Cost of revenue | $1437 | $1682 | $2955 | $3203 |
| Research and development<sup>(1)</sup> | 8618 | 10355 | 17831 | 19021 |
| Sales and marketing | 11819 | 18376 | 25228 | 35677 |
| General and administrative<sup>(2)</sup> | 27406 | 24726 | 54930 | 49680 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation, net of amounts capitalized | 49280 | 55139 | 100944 | 107581 |
| Capitalized stock-based compensation | 1021 | 382 | 1713 | 756 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense | $50301 | $55521 | $102657 | $108337 |

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(1) &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense recorded to research and development in the condensed consolidated statements of operations excludes amounts that were capitalized for internal-use software.

(2)&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense includes stock-based compensation associated with RSUs and PRSUs granted to our Executive Chairman of $10.4 million and $12.7 million for the three months ended June 30, 2025 and 2024, respectively, and $21.7 million and $26.2 million for the six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, unrecognized stock-based compensation expense related to unvested stock-based awards was as follows (in thousands, except for period data):

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** |
| | **Unrecognized Stock-Based Compensation** | **Weighted-Average Period to Recognize Expense<br>(in years)** |
| RSUs and PRSUs | $378094 | 2.9 |
| Stock options | 5211 | 1.1 |
| ESPP | 3354 | 0.7 |
| &nbsp;&nbsp;Total unrecognized stock-based compensation expense | $386659 |  |

---

**12. Restructuring Charges**

In November 2024, the Board approved a restructuring plan as a part of our efforts to align our talent with our strategic priorities and to improve operating efficiency. As a result, during the six months ended June 30, 2025, we recorded restructuring charges of $0.4 million, respectively, in our condensed consolidated statements of operations. The restructuring plan is complete, with no remaining liability as of June 30, 2025 .

The following table shows the total amount incurred and accrued related to restructuring charges (in thousands):

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| | |
|:---|:---|
| | **Amount** |
| Accrued restructuring costs as December 31, 2024 | $2350 |
| Restructuring charges incurred during the period | 405 |
| Amounts paid during the period | (2221) |
| Other | (534) |
| Accrued restructuring costs as of June 30, 2025 | $— |

---

**13. Income Taxes**

Our quarterly tax provision and the estimated annual effective tax rate are estimates based on several factors, including changes in pre-tax income (or loss), the mix of jurisdictions to which such income relates, discrete items (such as windfalls or shortfalls from stock-based compensation) in the period, which are offset with our valuation allowance. Income tax provision (benefit) was $5.6 million and $(10.4) million for the three months ended June 30, 2025 and 2024, respectively, and income tax provision (benefit) was $9.5 million and $(6.4) million for the six months ended June 30, 2025 and 2024, respectively. The change in income taxes for the three and six months ended June 30, 2025, compared to the same periods in the prior year, is primarily due to a tax benefit of $14.3 million generated from the Device42 acquisition in the prior year, and higher tax expense due to higher foreign profits before tax this year.

We continue to maintain a full valuation allowance against our U.S. federal and state deferred tax assets. While we have seen improvements in profitability, we will continue to evaluate all available positive and negative evidence in future periods to determine whether a release of the valuation allowance is warranted.

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**14. Net Loss Per Share**

Basic net loss per share attributable to common stockholders is computed by dividing the net loss by the number of weighted-average outstanding shares of common stock. Diluted net loss per share attributable to common stockholders is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result. We consider our stock options and RSUs as potential common stock equivalents, but excluded them from the computation of diluted net loss per share attributable to common stockholders for the three and six months ended June 30, 2025 and 2024, as their effect was antidilutive.

The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders, are the same for both Class A and Class B common stock on both an individual and combined basis.

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Numerator:** |  |  |  |  |
| Net loss | $(1739) | $(20184) | $(3043) | $(43509) |
| **Denominator:** |  |  |  |  |
| Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted | 294435 | 299805 | 297839 | 298836 |
| Net loss per share attributable to Class A and Class B common stockholders - basic and diluted | $(0.01) | $(0.07) | $(0.01) | $(0.15) |

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The following table summarizes the potential common equivalents that were excluded from the computation of diluted net loss per share attributable to Class A and Class B common stockholders for the periods presented (in thousands):

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| | | |
|:---|:---|:---|
| | **Three and Six Months Ended June 30,** | **Three and Six Months Ended June 30,** |
| | **2025** | **2024** |
| RSUs and PRSUs | 25353 | 23933 |
| Stock options | 2369 | 2785 |
| ESPP | 95 | 126 |
| Total | 27817 | 26844 |

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**15. Subsequent Events**

*One Big Beautiful Bill Act*

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. This legislation includes provisions allowing for the immediate expensing of domestic U.S. research and development costs, the immediate expensing of certain capital expenditures, and other significant changes to the U.S. tax code. We expect the impact on our tax expense for the third and fourth quarters of 2025 to be immaterial, primarily due to net operating loss carryforwards. We continue to evaluate the overall impact of the new legislation on our consolidated financial statements, including provisions that become effective beginning in 2026, and will evaluate the impact on future periods as further guidance becomes available.

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*San Mateo Lease*

In July 2025, we entered into a sublease agreement for adjacent office space at our headquarters, with a lease term expected to commence no later than November 2025 and end in November 2028. Concurrently, we entered into an agreement with the primary landlord to extend the lease term of our existing headquarters and to expand into the sublease space following the sublease's expiration in November 2028. Both the extended lease term and the expanded office space will expire in July 2031. The total lease commitment, net of expected tenant incentives, is estimated to be approximately $18.0 million.

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes that appear elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" for the year ended December 31, 2024 included in the Annual Report on Form 10-K. As described in the section titled "Special Note About Forward-Looking Statements," the following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q, particularly in the section titled "Risk Factors."*

**Overview**

We provide people-first, AI service software that organizations use to deliver exceptional customer and employee experiences. We provide our solutions in two product families: Customer Experience (CX) and Employee Experience (EX). CX products include Freshdesk, Freshdesk Omni, Freshchat, Freshsales, and Freshmarketer. EX products include Freshservice, Freshservice for Business Teams and Device42. Our latest generative AI solutions, Freddy AI Agent and Freddy AI Copilot, further enhance the customer and employee experience. Freddy AI Agent offers always-on, autonomous, personalized resolutions to customer and employee queries. Freddy AI Copilot provides always-on contextual assistance for customer support, employee support, marketing and sales use cases to boost productivity.

We generate revenue primarily from the sale of subscriptions for accessing our cloud-based software products over the contract term. We generally enter into subscription agreements with our customers on monthly, annual, or multi-year terms and invoice customers in advance in either monthly or annual installments. We also sell professional services that include product configuration, data migration, systems integration, and training. With the acquisition of D42 Parent, Inc. in 2024, we also sell software licenses with associated maintenance.

Our customer base and operations have scaled over time. Our total revenue was $204.7 million and $174.1 million in the three months ended June 30, 2025 and 2024, respectively, representing year-over-year growth of 18%; and $401.0 million and $339.3 million in the six months ended June 30, 2025 and 2024, respectively, representing year-over-year growth of 18%. We incurred operating losses of $8.7 million and $43.8 million for three months ended June 30, 2025 and 2024, respectively; and $19.1 million and $76.0 million for the six months ended June 30, 2025 and 2024, respectively.

**Macroeconomic and Other Factors**

Current macroeconomic uncertainties, including inflationary pressures, significant volatility in global markets, tariffs, the threat of new or increased tariffs, escalating trade tensions, and geopolitical developments have impacted and may continue to impact business spending and the overall economy, and in turn our business. These macroeconomic events could adversely affect demand for our products and services. For example, during the recent quarters, our net dollar retention rate was adversely impacted by lower expansion within existing customers driven by macroeconomic pressures and we expect these pressures to persist for the foreseeable future. Additionally, foreign currency exchange rate fluctuations negatively impacted our revenue growth historically and volatility in the foreign currency market still exist. For each of the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, we had approximately 27% of revenue exposure related to the euro and British Pound. If adverse conditions arise, they could have a material adverse impact on our results and our ability to accurately predict our future results and earnings.

Given our business model is primarily subscription-based, the effects of the macroeconomic conditions may not be fully reflected in our revenue until future periods. The ultimate impact on our business and operations remains highly uncertain, and it is not possible for us to predict the duration and extent to which this will affect our business, future results of operations, and financial condition.

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**Key Business Metrics**

We monitor and review a number of metrics, including the following key metrics, to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections, and make strategic decisions. Key business metrics and our financial performance are impacted by various factors discussed below, including fluctuations in the value of foreign currencies relative to the U.S. dollar. We also review customer data used for calculating these key business metrics on an ongoing basis and make necessary modifications resulting from such review. We believe these key business metrics provide meaningful supplemental information for management and investors in assessing our operating performance.

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| | | | |
|:---|:---|:---|:---|
| | **As of June 30,** | **As of June 30,** | **As of June 30,** |
| | **2025** | **2024** | **% Growth** |
| Number of customers contributing more than $5,000 in ARR | 23975 | 21744 | 10% |
| &nbsp;&nbsp;*ARR from customers contributing more than $5,000 in ARR as a percentage of total ARR* | 91% | 90% |  |
| Net dollar retention rate | 106% | 106% |  |

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*Number of Customers Contributing More Than $5,000 in ARR*

We define our total customers contributing more than $5,000 in annual recurring revenue (ARR) as of a particular date as the number of business entities or individuals, represented by a unique domain or a unique email address, with one or more paid subscriptions to one or more of our products that contributed more than $5,000 in ARR. We believe that the number of customers that contribute more than $5,000 in ARR is an indicator of our success in attracting, retaining, and expanding with larger businesses.

*Net Dollar Retention Rate*

Our net dollar retention rate measures our ability to increase revenue across our existing customer base through expansion of users and products associated with a customer as offset by our churn and contraction in the number of users and products associated with a customer. To calculate net dollar retention rate as of a particular date, we first determine "Entering ARR," which is ARR from the population of our customers as of 12 months prior to the end of the reporting period. We then calculate the "Ending ARR," which is ARR from the same set of customers as of the end of the reporting period. We then divide the Ending ARR by the Entering ARR to arrive at our net dollar retention rate. Ending ARR includes upsells, cross-sells, renewals and expansion as a result of acquisitions during the measurement period and is net of any contraction or attrition over this period.

We define ARR as the sum total of subscription, software license, and maintenance revenue we would contractually expect to recognize over the next 12 months from all customers at a point in time, assuming no increases, reductions, or cancellations in their subscriptions, and assuming that revenues are recognized ratably over the term of the contract. For monthly subscriptions, we take the recurring revenue run-rate of such subscriptions for the last month of the period and multiply it by 12 to get to ARR. While monthly subscribers as a group have historically maintained or increased their subscriptions over time, there is no guarantee that any particular customer on a monthly subscription will renew its subscription in any given month, and therefore the calculation of ARR for these monthly subscriptions may not accurately reflect revenue to be received over a 12-month period from such customers, and net dollar retention rate may reflect a higher rate than the actual rate if customers on monthly subscriptions choose not to renew during the course of the 12 months. Monthly subscriptions represented 13% and 15% of ARR as of June 30, 2025 and 2024, respectively. The net dollar retention rate for customers on monthly contracts has generally been lower than our overall net dollar retention rate. In addition, as part of our regular review of customer data that includes reviewing customers purchasing our products via resellers so we can properly attribute them as end customers, we may make adjustments that could impact the calculation of net dollar retention rate.

Our net dollar retention rate remained flat at 106% as of June 30, 2025, compared to 106% as of June 30, 2024, primarily due to lower expansion within existing customers driven by macroeconomic pressures, offset by a favorable foreign currency impact and slight improvement on overall churn rate. We expect our net dollar retention

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rate may fluctuate in future periods due to a number of factors, including, but not limited to, difficult macroeconomic conditions, our expected growth, the level of penetration within our customer base, our ability to upsell and cross-sell products to existing customers, and our ability to retain our customers.

**Non-GAAP Financial Measures**

In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), we believe the following non-GAAP financial measures are useful in evaluating our operating performance: non-GAAP income from operations, non-GAAP net income, and free cash flow. We use these non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe these non-GAAP financial measures may be helpful to investors because they provide consistency and comparability with past financial performance.

Non-GAAP financial measures have limitations in their usefulness to investors and should not be considered in isolation or as substitutes for financial information presented under GAAP. Non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only.

We exclude the following items from one or more of our non-GAAP financial measures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Stock-based compensation expense.* We exclude stock-based compensation, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this expense provides meaningful supplemental information regarding operational performance. In particular, stock-based compensation expense is not comparable across companies given the variety of valuation methodologies and assumptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Employer payroll taxes on employee stock transactions.* We exclude the amount of employer payroll taxes on equity awards from certain of our non-GAAP financial measures because they are dependent on our stock price at the time of vesting or exercise and other factors that are beyond our control and do not believe these expenses have a direct correlation to the operation of the business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Amortization of acquired intangibles.* We exclude amortization of acquired intangibles, which is a non-cash expense, from certain of our non-GAAP financial measures. Our expenses for amortization of acquired intangibles are inconsistent in amount and frequency because they are significantly affected by the timing, size of acquisitions, and the allocation of purchase price. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operating performance of our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Restructuring charges.* We exclude restructuring charges, which primarily consist of employee severance and other employee termination benefits associated with the restructuring plan initiated in November 2024, from our non-GAAP financial measures, because we do not believe these expenses have a direct correlation to the operating performance of our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Income tax effect and adjustments.* We exclude the income tax effect of the above adjustments and income tax effect associated with acquisitions from our non-GAAP financial measures. We exclude these costs because we do not believe these expenses have a direct correlation to the operating performance of our business.

***Non-GAAP Income From Operations and Non-GAAP Net Income***

We define non-GAAP income from operations as GAAP loss from operations, excluding stock-based compensation expense, employer payroll taxes on employee stock transactions, amortization of acquired intangibles, and restructuring charges.

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We define non-GAAP net income as GAAP net loss, excluding stock-based compensation expense, employer payroll taxes on employee stock transactions, restructuring charges, and amortization of acquired intangibles, and income tax adjustments.

The following tables present a reconciliation of our GAAP loss from operations to our non-GAAP income from operations and our GAAP net loss to our non-GAAP net income for each of the periods presented (in thousands):

*Non-GAAP Income from Operations*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Loss from operations | $(8656) | $(43787) | $(19072) | $(75954) |
| Non-GAAP adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 49280 | 55139 | 100944 | 107581 |
| &nbsp;&nbsp;&nbsp;&nbsp;Employer payroll taxes on employee stock transactions | 702 | 785 | 1901 | 2266 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangibles | 3508 | 976 | 7022 | 976 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges |  |  | 405 |  |
| Non-GAAP income from operations | $44834 | $13113 | $91200 | $34869 |

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*Non-GAAP Net Income*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(1739) | $(20184) | $(3043) | $(43509) |
| Non-GAAP adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 49280 | 55139 | 100944 | 107581 |
| &nbsp;&nbsp;&nbsp;&nbsp;Employer payroll taxes on employee stock transactions | 702 | 785 | 1901 | 2266 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangibles | 3508 | 976 | 7022 | 976 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges |  |  | 405 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax adjustments | 782 | (13729) | 1192 | (13380) |
| Non-GAAP net income | $52533 | $22987 | $108421 | $53934 |

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***Free Cash Flow***

We define free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized internal-use software costs. We believe that free cash flow is a useful indicator of liquidity as it measures our ability to generate cash from our core operations after purchases of property and equipment. Free cash flow is a measure to determine, among other things, cash available for strategic initiatives, including further investments in our business and potential acquisitions of businesses.

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The following table presents a reconciliation of free cash flow to net cash provided by operating activities, the most directly comparable measure calculated in accordance with GAAP for each of the periods presented (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net cash provided by operating activities | $58591 | $36336 | $116564 | $76955 |
| Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (380) | (2315) | (1676) | (3054) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalized internal-use software | (4676) | (1199) | (7448) | (2406) |
| Free cash flow, including restructuring costs<sup>(1)</sup> | $53535 | $32822 | $109661 | $71495 |
| Net cash provided by (used in) investing activities | $(42842) | $(182724) | $3389 | $(220495) |
| Net cash used in financing activities | $(124014) | $(11364) | $(254287) | $(34318) |

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(1) Free cash flow includes $0.7 million and $2.2 million of restructuring costs paid during the three and six months ended June 30, 2025.

**Components of Our Results of Operations**

***Revenue***

Substantially all of our revenue is derived from subscriptions, which is comprised of fees paid by customers for accessing our cloud-based software products during the term of the subscription. Subscription revenue is recognized ratably over the contract term beginning on the commencement date of each subscription, which is the date that the cloud-based software is made available to customers. We also sell software licenses with associated maintenance and professional services based on product offerings introduced upon the acquisition of D42 Parent, Inc. in June 2024. Software license revenue is recognized upon making the software available to the customer and maintenance revenue is recognized as support and updates are provided, which is generally ratably over the contract term.

Professional services revenue comprises less than 5% of total revenue and includes fees charged for product configuration, data migration, systems integration, and training. Professional services revenue is recognized as services are performed.

We generally enter into subscription and software license agreements with our customers on monthly, annual, or multi-year terms and invoice customers in advance in either monthly or annual installments. Our payment terms generally require the customers to pay the invoiced amount in advance or within 30 days from the invoice date. Our maintenance and professional services are generally billed in advance along with the related subscription and software license arrangements.

***Cost of Revenue***

Cost of revenue consists primarily of personnel-related expenses (including salaries, related benefits, and stock-based compensation expense) for employees associated with our cloud-based infrastructure, payment gateway fees, voice, product support, and professional services organizations, as well as costs for hosting capabilities. Cost of revenue also includes third-party license fees, amortization of acquired technology intangibles, amortization of capitalized internal-use software, and allocation of general overhead costs such as facilities and information technology.

We expect our cost of revenue to continue to increase in dollar amount as we invest additional resources in our cloud-based infrastructure and customer support and professional services organizations. However, our gross profit and gross margin may fluctuate from period to period due to the timing and extent of our investments in third-party hosting capacity, expansion of our cloud-based infrastructure, customer support, and professional services organizations, as well as the amortization of costs associated with capitalized internal-use software.

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***Overhead Allocation***

We allocate shared costs, such as facilities costs (including rent, utilities, and depreciation on capital expenditures related to facilities shared by multiple departments), information technology costs, and certain administrative personnel costs to all departments based on headcount and location. Allocated shared costs are reflected in each of the expense categories described below, in addition to cost of revenue as described above.

***Operating Expenses***

*Research and Development.* Research and development expense consists primarily of personnel-related costs, including salaries, related benefits, and stock-based compensation expense for engineering and product development employees and certain executives, software license fees, rental of office premises, third-party product development services and consulting expenses, and depreciation expense for equipment used in research and development activities. We capitalize a portion of our research and development expenses that meet the criteria for capitalization of internal-use software. All other research and development costs are expensed as incurred.

We believe that continued investment in our products is important for our growth, and as such, we expect that our research and development expenses will continue to increase in dollar amount for the foreseeable future, but such expenses as a percentage of revenue may fluctuate from period to period depending upon the timing and amount of these expenses.

*Sales and Marketing.* Sales and marketing expense consists primarily of personnel-related costs, including salaries, related benefits, and stock-based compensation expense for our sales personnel and certain executives, sales commissions for our sales force and reseller commissions for our channel sales partners, as well as costs associated with marketing activities, travel and entertainment costs, software license fees, and rental of office premises. Sales commissions that are considered incremental costs incurred to obtain contracts with customers are deferred and amortized over the benefit period of three years. Marketing activities include online lead generation, advertising, and promotional events.

We expect to continue to make significant investments as we expand our customer acquisition, retention efforts and marketing events and associated business travel. As a result, we expect that our sales and marketing expenses will continue to increase in dollar amount for the foreseeable future, however, we expect it to decline as a percentage of revenue over the longer term. This percentage may fluctuate from period to period depending upon the timing and amount of these expenses.

*General and Administrative.* General and administrative expense consists primarily of personnel-related costs, including salaries, related benefits, and stock-based compensation expense for certain executives and other general and administrative personnel, third-party professional services fees, costs of director and officer insurance, and costs associated with acquisitions of businesses, software license fees, and rental of office premises.

We expect to increase personnel-related and professional service expenses associated with ongoing compliance and reporting obligations and costs to broaden our IT related infrastructure. Our general and administrative expenses are expected to continue to increase in dollar amount for the foreseeable future, however, we expect it to decline as a percentage of revenue over the longer term. This percentage may fluctuate from period to period depending upon the timing and amount of our general and administrative expenses.

*Restructuring Charges*. Restructuring charges primarily consist of employee severance and other employee termination benefits associated with the restructuring plan that we initiated in November 2024. Refer to Note 12—Restructuring Charges of our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.

***Interest and Other Income (Expense), Net***

Interest and other income (expense), net primarily consists of interest income from our investment portfolios, amortization of premium or discount on marketable securities, and foreign currency gains and losses.

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***Provision for (Benefit from) Income Taxes***

Provision for (benefit from) income taxes consists primarily of income taxes related to U.S. states and foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on our U.S. federal and state net deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized. Provision for (benefit from) income taxes could also include changes in valuation allowance. Our effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as non-deductible expenses, such as stock-based compensation, and changes in our valuation allowance.

**Results of Operations**

The following table sets forth our condensed consolidated statements of operations data for the periods presented (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenue | $204678 | $174131 | $400951 | $339274 |
| Cost of revenue<sup>(1)</sup> | 31142 | 28175 | 61020 | 54065 |
| Gross profit | 173536 | 145956 | 339931 | 285209 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development<sup>(1)</sup> | 39943 | 40993 | 79944 | 75677 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing<sup>(1)</sup> | 95223 | 104248 | 184381 | 198890 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative<sup>(1)</sup> | 47026 | 44502 | 94273 | 86596 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges |  |  | 405 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 182192 | 189743 | 359003 | 361163 |
| Loss from operations | (8656) | (43787) | (19072) | (75954) |
| Interest and other income, net | 12547 | 13247 | 25516 | 26042 |
| Income (loss) before income taxes | 3891 | (30540) | 6444 | (49912) |
| Provision for (benefit from) income taxes | 5630 | (10356) | 9487 | (6403) |
| Net loss | $(1739) | $(20184) | $(3043) | $(43509) |

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__________________

(1)Includes stock-based compensation expense as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Cost of revenue | $1437 | $1682 | $2955 | $3203 |
| Research and development<sup>(1)</sup> | 8618 | 10355 | 17831 | 19021 |
| Sales and marketing | 11819 | 18376 | 25228 | 35677 |
| General and administrative<sup>(2)</sup> | 27406 | 24726 | 54930 | 49680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense | $49280 | $55139 | $100944 | $107581 |

---

(1) &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense recorded to research and development in the condensed consolidated statements of operations excludes amounts that were capitalized for internal-use software.

(2)&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense includes stock-based compensation associated with RSUs and PRSUs granted to our Executive Chairman of $10.4 million and $12.7 million for the three months ended June 30, 2025 and 2024, respectively and $21.7 million and $26.2 million for the six months ended June 30, 2025 and 2024, respectively.

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The following table sets forth our condensed consolidated statements of operations data for the periods presented, as a percentage of revenue:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenue | 100% | 100% | 100% | 100% |
| Cost of revenue | 15 | 16 | 15 | 16 |
| Gross profit | 85 | 84 | 85 | 84 |
| Operating expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 20 | 24 | 20 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 46 | 60 | 46 | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;General administrative | 23 | 26 | 24 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 89 | 110 | 90 | 107 |
| Loss from operations | (4) | (26) | (5) | (23) |
| Interest and other income, net | 6 | 8 | 6 | 8 |
| Income (loss) before income taxes | 2 | (18) | 1 | (15) |
| Provision for (benefit from) income taxes | 3 | (6) | 2 | (2) |
| Net loss | (1)% | (12)% | (1)% | (13)% |

---

**Comparison of the Three Months Ended June 30, 2025 and 2024**

***Revenue***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Change** |
| | **2025** | **2024** | $**%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | |
| Subscription services, software licenses and maintenance | $201982 | $171604 | 18% |
| Professional services | 2696 | 2527 | 7% |
| &nbsp;&nbsp;&nbsp;Total revenue | $204678 | $174131 | 18% |

---

Revenue increased by $30.5 million, or 18%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Of the total increase in revenue, approximately $11.4 million was attributable to revenue from existing customers as of June 30, 2024, net of contraction and churn, and approximately $19.1 million was attributable to revenue from new customers acquired during the twelve months ended June 30, 2025, net of contraction and churn. Our net dollar retention rate of 106% as of June 30, 2025 reflects the expansion within existing customers and the sale of additional products to these customers. Our net dollar retention rate remained flat from 106% as of June 30, 2024 primarily due to lower expansion within existing customers driven by macroeconomic pressures, offset by a favorable foreign currency impact and a slight improvement in our overall churn rate. The majority of our revenue continues to be generated from subscription services.

***Cost of Revenue and Gross Margin***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Change** |
| | **2025** | **2024** | $**%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | |
| Cost of revenue | $31142 | $28175 | 11% |
| Gross Margin | 85% | 84% |  |

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Cost of revenue increased by $3.0 million, or 11%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily due to increases of $0.9 million in amortization of acquired developed technologies from the acquisition of D42 Parent, Inc., $0.8 million in personnel-related costs primarily due to annual compensation adjustments and higher variable incentive compensation and $0.8 million in third-party hosting costs as we expand capacity to support our growing customer base. Our gross margin increased to 85% for the three months ended June 30, 2025 from 84% in the same period of the prior year, as we increased our revenue and continue to realize benefits from economies of scale primarily related to our third-party hosting costs.

***Operating Expenses***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Change** |
| | **2025** | **2024** | $**%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | |
| Research and development | $39943 | $40993 | (3)% |
| Sales and marketing | 95223 | 104248 | (9)% |
| General and administrative | 47026 | 44502 | 6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | $182192 | $189743 | (4)% |

---

The $7.6 million or 4%, decrease in our operating expenses for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, was primarily driven by lower headcount following the restructuring, which decreased stock-based compensation expenses and personnel-related costs. This decrease is partially offset by the impact of annual compensation adjustments and higher variable incentive compensation which increased personnel-related costs. Additionally, the acquisition of D42 Parent, Inc. resulted in higher amortization of acquired developed technologies.

*Research and Development*

Research and development expense decreased by $1.1 million, or 3%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease was primarily driven by lower stock-based compensation expense of $1.8 million from employee terminations and fully vested equity awards and $3.6 million of higher capitalized internally developed software costs as a result of increased development activity. The decreases are partially offset by an increase in personnel-related costs of $2.8 million due to annual compensation adjustments and higher variable incentive compensation.

*Sales and Marketing*

Sales and marketing expense decreased by $9.0 million, or 9%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease was primarily driven by lower stock-based compensation expense of $6.6 million from employee terminations, fully vested equity awards, and the transition of our President to CEO mid 2024, $1.5 million in personnel-related costs primarily due to lower headcount offset by annual compensation adjustments and higher variable incentive compensation, and $3.1 million in advertisement, marketing and branding costs. These decreases were partially offset by increases of $1.5 million in amortization of acquired intangible assets from the acquisition of D42 Parent, Inc. and $1.0 million in software license fees.

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*General and Administrative*

General and administrative expense increased by $2.5 million, or 6%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily driven by increases of $2.7 million in stock-based compensation expense, mainly due to the transition of our President to CEO mid 2024 and $1.2 million in personnel-related costs primarily due to annual compensation adjustments and higher variable incentive compensation. The increases were partially offset by a decrease of $1.3 million in consulting fees, primarily related to acquisition-related expenses from the D42 Parent, Inc. acquisition.

***Interest and Other Income (Expense), Net***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Change** |
| | **2025** | **2024** | $**%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | |
| Interest income | $10155 | $13775 | (26)% |
| Other income (expense), net | 2392 | (528) | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and other income, net | $12547 | $13247 | (5)% |

---

*\*not meaningful*

Interest income decreased by $3.6 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to lower balances maintained in our marketable securities portfolios.

Other income (expense), net changed by $2.9 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to changes in foreign exchange rates in British Pound and euro against the U.S. dollar.

***Provision for (Benefit from) Income Taxes***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Change** |
| | **2025** | **2024** | $**%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | |
| Provision for (benefit from) income taxes | $5630 | $(10356) | \* |

---

*\*not meaningful*

We are subject to federal and state income taxes in the United States and taxes in foreign jurisdictions. For the three months ended June 30, 2025 and 2024, we recorded an income tax provision (benefit) of $5.6 million and $(10.4) million on income (loss) before taxes of $3.9 million and $(30.5) million, respectively. The net increase in income tax provision of $15.9 million was primarily related to a tax benefit of $14.3 million from the Device42 acquisition as a result of releasing the valuation allowance due to sufficient income in prior year, and a higher pre-tax profit this year in certain foreign jurisdictions.

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, introducing significant changes to the U.S. tax code, including the immediate expensing of domestic U.S. research and development costs, the immediate expensing of certain capital expenditures, and other tax code changes effective beginning in 2026. We continue to evaluate the overall impact of the legislation on our Consolidated Financial Statements and will evaluate the impact on future periods as further guidance becomes available.

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**Comparison of the Six Months Ended June 30, 2025 and 2024**

***Revenue***

---

| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Change** |
| | **2025** | **2024** | $**%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | |
| Subscription services, software licenses and maintenance | $396175 | $334173 | 19% |
| Professional services | 4776 | 5101 | (6)% |
| &nbsp;&nbsp;&nbsp;Total revenue | $400951 | $339274 | 18% |

---

Revenue increased by $61.7 million, or 18%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Of the total increase in revenue, approximately $29.1 million was attributable to revenue from existing customers as of June 30, 2024, net of contraction and churn, and approximately $32.6 million was attributable to revenue from new customers acquired during the twelve months ended June 30, 2025, net of contraction and churn. The substantial majority of our revenue continues to be generated from subscription services.

***Cost of Revenue and Gross Margin***

---

| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Change** |
| | **2025** | **2024** | $**%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | |
| Cost of revenue | $61020 | $54065 | 13% |
| Gross Margin | 85% | 84% |  |

---

Cost of revenue increased by $7.0 million, or 13%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was primarily due to increases of $2.2 million in amortization of acquired developed technologies acquired from D42 Parent, Inc., $1.9 million in personnel-related costs primarily due to annual compensation adjustments and changes in retirement benefit obligations for employees in India and $1.3 million in third-party hosting costs as we expand capacity to support our growing customer base. Our gross margin increased to 85% for the six months ended June 30, 2025 from 84% in the same period of the prior year, as we increased our revenue and realized benefits from economies of scale primarily related to our third-party hosting costs.

***Operating Expenses***

---

| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Change** |
| | **2025** | **2024** | $**%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | |
| Research and development | $79944 | $75677 | 6% |
| Sales and marketing | 184381 | 198890 | (7)% |
| General and administrative | 94273 | 86596 | 9% |
| Restructuring charges | 405 |  | 100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | $359003 | $361163 | (1)% |

---

The $2.2 million, or 1%, decrease in our operating expenses in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, was primarily driven by lower headcount following the restructuring which deceased stock-based compensation expenses and personnel-related costs. This decrease is partially offset by the impact of annual compensation adjustments, changes in retirement benefit obligations for employees in India, and higher variable incentive compensation. Additionally, the acquisition of D42 Parent, Inc. resulted in higher amortization of acquired intangible assets.

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*Research and Development*

Research and development expense increased by $4.3 million, or 6%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was primarily driven by increases of $8.2 million in personnel-related costs, driven by annual compensation adjustments, changes in retirement benefit obligations for employees in India, and higher variable incentive compensation. These increases were partially offset by lower stock-based compensation expense of $1.2 million due to employee terminations and fully vested equity awards and higher capitalized internally developed software cost of $5.1 million as a result of increased development activity.

*Sales and Marketing*

Sales and marketing expense decreased by $14.5 million, or 7%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease was primarily driven by lower stock-based compensation of $10.5 million from employee terminations and the transition of our President to CEO mid 2024, $2.5 million driven by personnel-related costs from lower headcount, $5.6 million in advertisement, marketing and branding costs, and $1.5 million in consulting fees. These decreases were partially offset by increases of $3.6 million in amortization of acquired intangible assets from the D42 Parent, Inc. acquisition and $1.7 million in software license fees.

*General and Administrative*

General and administrative expense increased by $7.7 million, or 9%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was primarily driven by $3.2 million in personnel-related costs, mainly due to annual compensation adjustments and higher variable incentive compensation, and $5.3 million in stock-based compensation expense, mainly due to the transition of our President to CEO.

*Restructuring charges*

Restructuring charges of $0.4 million for the six months ended June 30, 2025, consisted of employee severance and termination benefits related to the restructuring plan that we initiated in November 2024.

***Interest and Other Income (Expense), Net***

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| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Change** |
| | **2025** | **2024** | $**%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | |
| Interest income | $21449 | $27682 | (23)% |
| Other income (expense), net | 4067 | (1640) | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and other income, net | $25516 | $26042 | (2)% |

---

*\*not meaningful*

Interest income decreased by $6.2 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to lower balances maintained in our marketable securities portfolios.

Other income (expense), net changed by $5.7 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to a favorable impact from changes in foreign exchange in British Pound, euro, and Indian rupee against the U.S. dollar.

***Provision for (Benefit from) Income Taxes***

---

| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Change** |
| | **2025** | **2024** | $**%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | |
| Provision for (benefit from) income taxes | $9487 | $(6403) | \* |

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*\*not meaningful*

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We are subject to federal and state income taxes in the United States and taxes in foreign jurisdictions. For the six months ended June 30, 2025 and 2024, we recorded an income tax provision (benefit) of $9.5 million and $(6.4) million, respectively. The net increase in tax benefit of $15.9 million was primarily related to a tax benefit of $14.3 million from the Device42 acquisition as a result of releasing the valuation allowance due to sufficient income in prior year, and a higher pre-tax profits this year in certain foreign jurisdictions.

**Liquidity and Capital Resources**

As of June 30, 2025, our principal sources of liquidity were cash and cash equivalents of $486.0 million and marketable securities of $440.2 million, which were primarily held for working capital resources.

As of June 30, 2025, we had an accumulated deficit of $3.7 billion. Our operating activities resulted in cash inflows of $116.6 million for the six months ended June 30, 2025.

Our material cash requirements from known contractual obligations consists primarily of our obligations under operating leases for office space and contractual obligations for third-party cloud infrastructure, service subscription, and sponsorship arrangement to promote our brand and services. See Note 7 — Leases and Note 8 — Commitments and Contingencies for additional discussion of our principal contractual commitments.

In November 2024, our board of directors approved the share repurchase program, which authorized the repurchase of up to $400 million of our outstanding Class A common stock. For the six months ended June 30, 2025, we repurchased a total of 14.9 million shares of Class A common stock under this program in open market transactions for an aggregate purchase price of $225.4 million. As of June 30, 2025, $159.1 million remained available for future share repurchases.

As of June 30, 2025, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities that would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

We believe our existing sources of liquidity will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months. We believe we will meet longer-term expected future cash requirements and obligations through a combination of our existing cash available balances, cash flow from operations, and issuances of equity securities or debt offerings, as needed. Our future capital requirements will depend on many factors, including the rate of our revenue growth, the timing and extent of spending on research and development efforts, the expansion of sales and marketing activities, the introduction of new and enhanced product offerings, and other business initiatives and the continuing market adoption of our products. We may in the future enter into arrangements to acquire or invest in complementary businesses, services, and technologies, including intellectual property rights. We may be required to seek additional equity or debt financing in connection with such activities. If we raise additional funds through the incurrence of indebtedness, such indebtedness may have rights that are senior to holders of our equity securities and could contain covenants that restrict our operational flexibility. Any additional equity or convertible debt financing may be dilutive to stockholders. In the event that additional financing is required from outside sources, we may not be able to raise such financing on terms acceptable to us or at all.

The following table summarizes our cash flows for the periods presented (in thousands):

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| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| Net cash provided by operating activities | $116564 | $76955 |
| Net cash provided by (used in) investing activities | 3389 | (220495) |
| Net cash used in financing activities | (254287) | (34318) |

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***Cash Flows from Operating Activities***

Net cash provided by operating activities of $116.6 million for the six months ended June 30, 2025 reflects our net loss of $3.0 million, adjusted for non-cash items such as stock-based compensation of $100.9 million, amortization of deferred contract acquisition costs of $15.4 million, depreciation and amortization of $12.6 million, and non-cash lease expense of $4.6 million; offset by $3.7 million from discount amortization of marketable securities. Additionally, net cash outflows from changes in operating assets and liabilities were $10.3 million. The net cash outflows from changes in operating assets and liabilities were primarily due to increases of $22.7 million in prepaid expenses and other assets and $18.8 million in deferred contract acquisition costs; offset by increases of $15.4 million in deferred revenue and $7.8 million in accrued and other liabilities, and a decrease of $7.0 million in accounts receivable.

Net cash provided by operating activities of $77.0 million for the six months ended June 30, 2024 reflects our net loss of $43.5 million, adjusted for non-cash items such as stock-based compensation of $107.6 million, amortization of deferred contract acquisition costs of $13.5 million, depreciation and amortization of $6.7 million and non-cash lease expense of $4.4 million; offset by $13.8 million from changes in deferred income taxes and $8.7 million from discount amortization of marketable securities. Additionally, net cash inflows from changes in operating assets and liabilities were $11.0 million. The net cash inflows from changes in operating assets and liabilities were due to a decrease of $4.9 million in accounts receivable and increases in operating liabilities of $17.2 million in deferred revenue, $8.9 million in accrued and other liabilities and $6.0 million in accounts payable; offset by increases in operating assets of $16.9 million in deferred contract acquisition costs and $7.2 million in prepaid expenses and other assets; and a decrease of $2.0 million in operating lease liabilities.

***Cash Flows from Investing Activities***

Net cash provided by investing activities of $3.4 million for the six months ended June 30, 2025 consisted of $12.5 million in maturities and redemptions of marketable securities, net of purchases; offset by $7.4 million in capitalized internal-use software and $1.7 million in purchases of property and equipment.

Net cash used in investing activities of $220.5 million for the six months ended June 30, 2024 consisted of $213.9 million cash paid for business combination, $1.2 million in purchases of marketable securities, net of proceeds from maturities and sales, $2.4 million in capitalized internal-use software and $3.1 million in purchases of property and equipment.

***Cash Flows from Financing Activities***

Net cash used in financing activities of $254.3 million for the six months ended June 30, 2025 consisted of $227.2 million cash paid to repurchase shares of our common stock, including $1.8 million of unsettled common stock repurchases as of December 31, 2024, and $30.5 million in payment of withholding taxes on net share settlement of equity awards; offset by $3.3 million of proceeds from the issuance of common stock under our employee stock purchase plan, net of taxes withheld.

Net cash used in financing activities of $34.3 million for the six months ended June 30, 2024 consisted of $38.0 million in payment of withholding taxes on net share settlement of equity awards, offset by $3.6 million of proceeds from the issuance of common stock under our employee stock purchase plan, net of taxes withheld.

**Critical Accounting Policies and Estimates**

Our condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, and related disclosures. We base our estimates, assumptions and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances. Different assumptions and judgments would change the estimates used in the preparation of our condensed consolidated financial statements, which, in turn, could change the results from those reported. We evaluate our estimates, assumptions, and judgments on an ongoing basis.

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There have been no changes to our critical accounting policies and estimates during the three and six months ended June 30, 2025 as compared to those disclosed in our "Management's Discussion and Analysis of Financial Condition and Results of Operations" set forth in our Annual Report on Form 10-K filed with the SEC on February 20, 2025.

**Recent Accounting Pronouncements**

See Note 1—Basis of Presentation and Summary of Significant Accounting Policies to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

***Foreign Currency Exchange Risk***

The functional currency of our foreign subsidiaries is the U.S. dollar. The majority of our sales are derived in U.S. dollars. Our operating expenses incurred by our foreign subsidiaries are denominated in their respective local currencies, and remeasured at the exchange rates in effect on the transaction date. Additionally, fluctuations in foreign exchange rates may result in the recognition of transaction gains and losses in our condensed consolidated statements of operations. Our condensed consolidated results of operations and cash flows are, therefore, subject to foreign exchange rate fluctuations, particularly changes in the Indian Rupee, British Pound and euro, and may be adversely affected in the future due to changes in foreign exchange rates. Based on a sensitivity analysis we have performed as of June 30, 2025, an adverse 10% foreign currency exchange rate change applied to total monetary assets and liabilities denominated in currencies other than the U.S. dollar would result in a gain or loss of approximately $12.1 million.

To reduce the risk that our earnings and cash flows will be adversely affected by changes in exchange rates, we entered into foreign exchange forward contracts to hedge a portion of our forecasted foreign currency expenses denominated in Indian Rupee. Gains or losses on these contracts are generally recognized in income at the time the related transactions being hedged are recognized. As of June 30, 2025, the total notional amount of outstanding designated foreign currency forward contracts was $63.6 million. The fair value of derivative assets and liabilities as of June 30, 2025, and all related unrealized and realized gains and losses during the three and six months ended June 30, 2025 and 2024 were not material.

We do not use foreign exchange contracts for speculative trading purposes and we may enter into other hedging transactions in the future if our exposure to foreign currency becomes more significant. We monitor our exposures in other currencies and assess the need to utilize financial instruments to hedge currency exposures on an ongoing basis.

***Interest Rate Risk***

Our cash, cash equivalents, and marketable securities primarily consist of deposits held at financial institutions, highly liquid money market funds, and investments in U.S. treasury securities, U.S. government agency securities, corporate bonds, and commercial paper. We had cash and cash equivalents of $486.0 million and marketable securities of $440.2 million as of June 30, 2025. We do not enter into investments for trading or speculative purposes. The carrying amount of our cash equivalents reasonably approximate fair value, due to the maturities of three months or less of these instruments. Our investments are subject to market risk due to changes in interest rates, which may affect our interest income and the fair value of our investments. Fixed rate securities may have their market value adversely affected due to a rise in interest rates. Due in part to these factors, our future investment income may fall short of our expectations due to changes in interest rates or we may suffer losses in principal if we are forced to sell securities that decline in market value due to changes in interest rates. However, because we

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classify our marketable securities as "available for sale," no gains or losses are recognized due to changes in interest rates unless such securities are sold prior to maturity or declines in fair value are determined to be other-than-temporary.

Based on an interest rate sensitivity analysis we have performed as of June 30, 2025, a hypothetical 100 basis points favorable or adverse movement in interest rates would not have a material effect in the combined market value of our cash and cash equivalents and marketable securities.

**ITEM 4. CONTROLS AND PROCEDURES**

***Evaluation of Disclosure Controls and Procedures***

Based on our management's evaluation (with the participation of our principal executive officer and principal financial officer), as of the end of the period covered by this report, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

***Changes in Internal Control over Financial Reporting***

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

***Inherent Limitations on Effectiveness of Controls***

It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system will be met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events.

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**PART II—OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

The information required to be set forth under this Item 1 is incorporated by reference to Note 8. Commitments and Contingencies — Litigation and Loss Contingencies in the notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

**ITEM 1A. RISK FACTORS**

You should carefully consider the risks and uncertainties described under the section "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on February 20, 2025 as well as the other information in this Quarterly Report on Form 10-Q, including our unaudited condensed consolidated financial statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations" before making an investment decision. These identified risks and uncertainties may have a material adverse effect on our business, financial condition, results of operations, and growth prospects. In such an event, the market price of our Class A common stock could decline, and you may lose all or part of your investment. Additional risks and uncertainties not presently known to us or that we currently believe are not material may also become important factors that affect our business. There have been no material changes from the risks and uncertainties previously disclosed under the "Risk Factors" section in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

***Unregistered Sales of Equity Securities***

None.

***Use of Proceeds***

None.

***Issuer Purchases of Equity Securities***

Stock repurchase activity during the three months ended June 30, 2025 was as follows (in thousands, except number of shares and average price paid per share):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Period by fiscal month** | **Total number of shares repurchased** <sup>(1)</sup> | **Average price paid per share** <sup>(2)</sup> | **Total number of shares repurchased as part of publicly announced plans or programs** <sup>(3)</sup> | **Approximate dollar value of shares that may yet be purchased under the plans or programs** <sup>(3)</sup> |
| April 1, 2025 - April 30, 2025 | 4226826 | $12.81 | 4226826 | $218557 |
| May 1, 2025 - May 31, 2025 | 2462769 | $14.88 | 2462769 | $181902 |
| June 1, 2025 - June 30, 2025 | 1490804 | $15.29 | 1490804 | $159110 |
| Total | 8180399 |  | 8180399 |  |

---

(1) All of the shares purchased during the three months ended June 30, 2025 were acquired pursuant to our publicly announced share repurchase program described in footnote 3 below.

(2) The average price paid per share includes brokerage commissions and excludes excise tax.

(3) On November 6, 2024, we publicly announced that our board of directors had approved a share repurchase program, which authorized the repurchase of up to $400 million of our outstanding Class A common stock. Under the repurchase program, we may repurchase shares of our outstanding Class A common stock from time to time in the open market, through privately negotiated transactions and/or other means in compliance with the Exchange Act and the rules and regulations thereunder. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 under the Exchange Act. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of shares of common stock under this authorization. The timing, manner, price, and amount of any repurchases will be determined by us at our discretion, and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. The repurchase program may be suspended or discontinued at any time.

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**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

Not applicable.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

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**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

**ITEM 5. OTHER INFORMATION**

**Rule 10b5-1 Trading Plans**

During the three months ended June 30, 2025, our officers (as defined in Rule 16a-1(f) under the Exchange Act) and directors adopted or terminated the contracts, instructions or written plans for the purchase or sale of the Company's securities, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, as set forth in the table below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Title** | **Action** | **Adoption Date** | **Expiration Date** | **Total number of shares of Class A common stock to be sold** |
| Philippa Lawrence | Chief Accounting Officer  | Adoption | June 16, 2025 | March 27, 2026 | Up to 34,178 shares |
| Tyler Sloat | Chief Operating Officer and Chief Financial Officer | Adoption | May 27, 2025 | August 31, 2026 | Up to 500,000 shares |

---

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**ITEM 6. EXHIBITS**

The documents listed in the Exhibit Index of this Quarterly Report on Form 10-Q are incorporated by reference or are filed with this Quarterly Report on Form 10-Q, in each case as indicated therein (numbered in accordance with Item 601 of Regulation S-K).

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Exhibit**<br>**Number** | **Exhibit Description** | **Form** | **File No.** | **Exhibit** | **Filing Date** | **Filed Herewith** |
| 3.1 | <u>[Amended and Restated Certificate of Incorporation.](https://www.sec.gov/Archives/edgar/data/1544522/000162828021019153/exhibit31-closing8xk.htm)</u> | 8-K | 001-40806 | 3.1 | September 24, 2021 |  |
| 3.2 | <u>[Amended and Restated Bylaws.](https://www.sec.gov/Archives/edgar/data/1544522/000162828021018417/exhibit34-sx1a1.htm)</u> | S-1/A | 333-259118 | 3.4 | September 13, 2021 |  |
| 31.1 | <u>[Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex311q22510-q.htm)</u> |  |  |  |  | X |
| 31.2 | <u>[Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex312q22510-q.htm)</u> |  |  |  |  | X |
| 32.1# | <u>[Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex321q22510-q.htm)</u> |  |  |  |  | X |
| 32.2# | <u>[Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex322q22510-q.htm)</u> |  |  |  |  | X |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document |  |  |  |  | X |
| 101.SCH | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |  |  |  |  | X |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |  |  |  |  | X |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |  |  |  |  | X |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document |  |  |  |  | X |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |  |  |  |  | X |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |  |  |  |  | X |

---

__________________

#&nbsp;&nbsp;&nbsp;&nbsp;The certifications attached as Exhibits 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q are not deemed filed with the SEC and are not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.

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**<u>[**Table of Contents**](#i73cdf813b07c49de9e2acaa5af6f364d_7)</u>**

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | **Freshworks Inc.** | **Freshworks Inc.** |
| Date: | July 29, 2025 | By: | /s/ Dennis Woodside |
|  |  |  | Dennis Woodside |
|  |  |  | Chief Executive Officer and President (Principal Executive Officer) |

---

---

| | | | |
|:---|:---|:---|:---|
| Date: | July 29, 2025 | By: | /s/ Tyler Sloat |
|  |  |  | Tyler Sloat |
|  |  |  | Chief Operating Officer and Chief Financial Officer (Principal Financial Officer) |

---

---

| | | | |
|:---|:---|:---|:---|
| Date: | July 29, 2025 | By: | /s/ Philippa Lawrence |
|  |  |  | Philippa Lawrence |
|  |  |  | Chief Accounting Officer (Principal Accounting Officer) |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

**PURSUANT TO RULES 13A-14(A) AND 15D-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Dennis Woodside, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Freshworks Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: July 29, 2025 | By: /s/ Dennis Woodside |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Dennis Woodside<br>&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer and President<br> *(Principal Executive Officer)* |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO RULES 13A-14(A) AND 15D-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Tyler Sloat, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Freshworks Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: July 29, 2025 | By: /s/ Tyler Sloat |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tyler Sloat<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Operating Officer and Chief Financial Officer<br>*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Financial Officer)* |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Freshworks Inc. (the "Company") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof, to which this Certificate is attached as Exhibit 32.1 (the "Report"), I, Dennis Woodside, Chief Executive Officer and President of the Company, do hereby certify, to the best of my knowledge and pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, (the "Exchange Act") and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. § 1350), as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

**In Witness Whereof**, the undersigned has set his hands hereto as of the date set forth below.

---

| | |
|:---|:---|
| Date: July 29, 2025 | By: /s/ Dennis Woodside |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Dennis Woodside<br>&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer and President<br> *(Principal Executive Officer)* |

---

This certification accompanies the Form 10-K to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act (whether made before or after the date of the Form 10-K), irrespective of any general incorporation language contained in such filing.

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Freshworks Inc. (the "Company") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof, to which this Certificate is attached as Exhibit 32.2 (the "Report"), I, Tyler Sloat, Chief Operating Officer and Chief Financial Officer of the Company, do hereby certify, to the best of my knowledge and pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, (the "Exchange Act") and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. § 1350), as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

**In Witness Whereof**, the undersigned has set his hands hereto as of the date set forth below.

---

| | |
|:---|:---|
| Date: July 29, 2025 | By: /s/ Tyler Sloat |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Tyler Sloat<br>&nbsp;&nbsp;&nbsp;&nbsp; Chief Operating Officer and Chief Financial Officer <br>*&nbsp;&nbsp;&nbsp;&nbsp; (Principal Financial Officer)* |

---

This certification accompanies the Form 10-K to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act (whether made before or after the date of the Form 10-K), irrespective of any general incorporation language contained in such filing.

<br>