Freshworks Inc. (FRSH): Business Model Canvas [Dec-2025 Updated]

You're digging into the latest numbers for Freshworks Inc. to see if their strategic pivot from an SMB favorite to an enterprise contender is actually working, and honestly, the 2025 picture is sharp. We're not just looking at a software company anymore; we're seeing a focused push where Mid-Market and Enterprise customers now account for over 60% of the total Annual Recurring Revenue, all while they're embedding Freddy AI across the suite, which is already a $20 million ARR business. Before you model out the next quarter, you need to see how their core value-delivering uncomplicated, enterprise-grade software that offers rapid time-to-value-is supported by a projected FY 2025 Adjusted Free Cash Flow near $215 million. Dive below for the full Business Model Canvas breakdown showing exactly how they are structuring their key activities and revenue streams to hit that projected revenue between $822.9 million and $828.9 million.

Freshworks Inc. (FRSH) - Canvas Business Model: Key Partnerships

You're looking at the network Freshworks Inc. builds to get its software into the hands of customers, which is defintely a critical part of its growth story for 2025.

Freshworks Inc. announced a strategic relationship with Unisys (NYSE: UIS) on February 26, 2025, positioning Unisys as the first large-scale Managed Service Provider (MSP) in the Freshworks ecosystem to resell modern IT Service Management (ITSM) solutions, specifically naming Freshservice and Device42. This collaboration targets the mid-market and enterprise segments, leveraging Unisys's global reach across more than 120 countries in Commercial, Financial Service, and Public Sectors. One early win saw a U.S. midsized industrial company go live with Freshservice in under 12 weeks.

Also, a partnership with CGI was announced on December 3, 2025, focusing on leveraging Freshworks' AI-powered service software for mid-market and public sector organizations, particularly in the UK, to modernize IT service management. CGI, which reported fiscal 2025 revenue of $15.91 billion, will establish a Freshworks Centre of Excellence as part of this agreement.

The strength of the channel is quantified by the sheer volume of participants:

• The revamped Freshworks Partner Program encompasses over 500 transacting partners globally.
• Flexible sales engagement models are offered, ranging from one-time commissions to authorized or premier reseller status.
• The program supports global expansion efforts in partner-led markets across Asia and Latin America.

Here's a quick look at some of the named strategic collaborators and their focus areas:

Partner Type/Name	Focus Area/Product	Key Metric/Date
Unisys (MSP)	ITSM solutions, Freshservice, Device42	Strategic relationship announced February 26, 2025
CGI (Consulting/SI)	AI-driven service management, Public Sector	Fiscal 2025 Revenue: $15.91 billion
SHI International (SI)	Upmarket deployment support	Named global collaborator
Climb Channel Solutions	ITSM market penetration	Evaluates over 200 vendors annually

Technology integrations are crucial for data flow and workflow automation. Freshworks enables connections to its products through the Freshworks Marketplace, which extends use cases with over 1,200 enterprise apps across various industry verticals. Integrations are designed to be fast, easy, and secure, with ready-made apps for quick deployment, plus low-code tools and flexible APIs for custom builds. For example, key integrations in 2025 include platforms like CloudTalk for native calling and Salesforce for CRM data synchronization.

Freshworks Inc. (FRSH) - Canvas Business Model: Key Activities

You're looking at the core engine driving Freshworks Inc.'s strategy through late 2025. It's all about execution on product innovation and scaling the go-to-market engine, especially upmarket.

Core software development, defintely prioritizing AI/ML capabilities.

Development is heavily weighted toward embedding artificial intelligence across the platform. The Freddy AI platform now includes AI Agent, AI Copilot, and AI Insights capabilities.

• Freddy AI products doubled year-over-year in annual recurring revenue (ARR) in Q3 2025.
• In Q2 2025, AI product adoption doubled, contributing significantly to revenue growth.
• The company's total spending on research, employees, and general overhead was $182 million in Q2 2025.

Building out the direct field sales motion for Enterprise and Mid-Market.

The strategic pivot upmarket is showing in the customer mix. This requires a dedicated, high-touch field sales force, evidenced by recent leadership appointments like the Senior Vice President and General Manager of Americas Field Sales in Q3 2025.

Metric	Value/Percentage	Period/Context
Mid-Market and Enterprise ARR Share	Over 60% of total ARR	Q3 2025
Customers with ARR > $50,000 Growth	20% year-over-year increase	Q3 2025
Customers with ARR > $50,000 Count	3,612 customers	Q3 2025

The move upmarket is working; they are winning more competitive deals against ServiceNow, Atlassian, and Salesforce.

Global partner enablement and channel expansion, especially in Asia and Latin America.

While the direct sales motion is key for Enterprise, the global footprint is managed through a mix of direct and channel efforts. The geographic revenue split shows where the core business sits, providing context for where channel expansion efforts are focused.

Geography	Revenue Share	Period
North America	47%	Q1 2025
Europe, Middle East, and Africa (EMEA)	39%	Q1 2025
Asia-Pacific (APAC)	12%	Q1 2025
Rest of World	3%	Q1 2025

The company serves customers across more than 118 countries as of Q3 2025.

Maintaining a unified, easy-to-use product suite (CX, EX, Sales).

The key activity here is ensuring data flows seamlessly across the bundled offerings, like Freshsales (CRM), Freshdesk (customer support), and Freshmarketer (marketing automation). A major platform upgrade is underway to support this unification.

• The Suite Enterprise package offers priority support and advanced customization for premium customers.
• The company reported a total customer base of nearly 75,000 in Q3 2025.
• An upgrade to contact and company management on the Neo platform began rolling out in phases starting October 2025.

Integrating Device42 for cloud-native IT Asset Management (ITAM).

The integration of Device42, acquired in 2024, is a critical activity for enhancing the Freshservice IT Service Management (ITSM) offering. The one-year anniversary of the acquisition was in June 2025.

• The Device42 integration landed in half of Freshworks' big contracts in Q3 2025.
• The Q4 2024 revenue estimate included approximately $4 million from Device42 for that quarter.

Finance: draft 13-week cash view by Friday.

Freshworks Inc. (FRSH) - Canvas Business Model: Key Resources

You're looking at the foundational assets that make Freshworks Inc. tick as of late 2025. These aren't just abstract concepts; they are measurable components driving their market position and financial performance.

Proprietary AI Engine: Freddy AI

The proprietary AI engine, Freddy AI, is deeply embedded, moving beyond simple chatbots to agentic capabilities. This resource is directly tied to revenue generation and customer efficiency gains.

• Freddy AI Copilot and Freddy AI Agent products crossed $20 million in combined Annual Recurring Revenue (ARR) as of Q2 2025.
• Over 5,000 customers are using the Freddy AI suite.
• Freddy AI agents are reported to auto-resolve up to 80% of routine requests via chat, email, and messaging apps.
• Specific customer results include BigBus recouping 72% of customer service costs with Freddy copilot workflows.

Integrated, Cloud-Native SaaS Platform Architecture

The architecture itself is a key resource, designed for simplicity and rapid deployment, which underpins the company's value proposition against more complex legacy systems. This platform hosts their core offerings across CX, EX, and Sales.

Here's a look at the scale of the customer base leveraging this platform architecture as of late 2025:

Metric	Value (as of Q3 2025 or latest reported)	Context
Total Paying Customers	Nearly 75,000	Represents an 8% year-over-year increase.
Customers with >$5,000 ARR	24,377	An increase of 9% year-over-year as of Q3 2025.
Customers with >$50,000 ARR	3,460	Increased 22% year-over-year as of Q2 2025.
Net Dollar Retention Rate	105%	As of Q3 2025.

Strong Cash Position and Financial Health

Freshworks Inc. maintains a solid liquidity profile, reflecting operational discipline and the shift to profitability. This cash is the fuel for continued R&D and market expansion.

• Cash, Cash Equivalents and Marketable Securities stood at $813.2 million as of September 30, 2025.
• Adjusted Free Cash Flow Margin reached 26.6% in Q3 2025.
• Full Year 2025 Revenue guidance was raised to a range between $833.1 million and $836.1 million.

Global Talent Pool and Operational Footprint

The company's human capital, spread globally with a significant presence in India, supports both the development and commercialization of its products. This talent pool is critical for maintaining the integrated platform.

• The Employee Experience (EX) segment, anchored by Freshservice, generated $450 million in Annual Recurring Revenue (ARR) as of September 2025.
• The EX segment ARR grew 33% year-over-year (constant currency) in Q1 2025.
• The company has a global partner program with expanded offerings for resellers and service delivery.

Intellectual Property in CX and EX Software

The accumulated intellectual property covers the entire spectrum of Customer Experience (CX) and Employee Experience (EX), which are the company's two largest business segments. This IP is protected through the product suite itself and the ecosystem built around it.

• The company offers solutions across Customer Experience (CX), Employee Experience (EX), and Sales & Marketing.
• EX ARR surpassed $420 million as of Q1 2025.
• The Freshworks marketplace features contributions from external developers, fostering an ecosystem.

Finance: draft 13-week cash view by Friday.

Freshworks Inc. (FRSH) - Canvas Business Model: Value Propositions

You're looking at the core reasons why businesses are choosing Freshworks Inc. over the established players, especially as they scale up. The value proposition centers on delivering powerful, enterprise-grade capabilities without the usual headache of complex implementation and maintenance. Honestly, the data from Q3 2025 shows this approach is resonating, particularly with larger customers.

Uncomplicated, enterprise-grade software that is easy to use and deploy.

The market is clearly responding to the promise of simplicity. Freshworks Inc. ended Q3 2025 with 24,377 customers contributing more than $5,000 in Annual Recurring Revenue (ARR), which is a 9% year-over-year increase. You see this focus in the new enterprise logos they onboarded, like Stellantis and Société Générale. The CEO noted that business leaders choose Freshworks because the software delivers real productivity gains without adding complexity strains, which is a direct shot at the resource-heavy deployments common with older systems. This focus on ease of use helps drive a solid Net Dollar Retention Rate of 105% as of September 30, 2025.

Rapid time-to-value, delivering measurable ROI in weeks, not months.

The speed of impact is where the AI integration really shines. You don't have to wait six months to see results; the productivity gains are immediate. For instance, 60% of customer service teams using Freddy AI Copilot have reported a significant improvement in agent productivity. Furthermore, 56% of agents report saving time just by using the Freddy AI Copilot Summarizer feature. This rapid ROI is a key differentiator when you're trying to justify new software spend quickly.

Lower Total Cost of Ownership (TCO) compared to legacy competitors.

The lower TCO argument comes from avoiding the hidden costs of legacy platforms. The CEO mentioned hearing from large customers who switched over because older products force them to bring in outside consultants or expend extra resources just to keep workflows current. By offering uncomplicated software, Freshworks Inc. inherently reduces the need for expensive, specialized third-party support for day-to-day management and minor workflow changes. This operational efficiency contributes to their strong profitability metrics, with Non-GAAP Income from Operations reaching $45.2 million in Q3 2025, representing a 21.0% margin.

Unified platform for Customer Service (Freshdesk) and IT Service Management (Freshservice).

The platform unification is moving beyond just IT and Customer Service. Freshworks Inc. is actively expanding its Enterprise Service Management (ESM) offering to non-IT functions, and that segment's ARR surpassed $35 million in the third quarter of 2025. This demonstrates the platform's ability to serve the entire employee experience ecosystem, not just siloed departments. The overall platform strength is reflected in the 15% year-over-year revenue growth, hitting $215.1 million in Q3 2025.

Here's a quick look at the Q3 2025 operational snapshot that underpins these value claims:

Metric	Value (Q3 2025)	Comparison/Context
Total Revenue	$215.1 million	15% Year-over-Year Growth
Customers > $5k ARR	24,377	9% Year-over-Year Growth
Net Dollar Retention Rate	105%	Indicates steady expansion/renewal
Non-GAAP Operating Margin	21.0%	Significant margin expansion from 12.8% in Q3 2024
Freddy AI Products ARR	Doubled	Year-over-year growth

AI-powered efficiency gains for agents and employees via Freddy AI Copilot.

The AI component, Freddy AI, is a primary growth engine. The ARR for all Freddy AI products doubled year-over-year. This isn't just a feature; it's becoming a deal-closer, with about 60% of Freshworks Inc.'s large deals now including an AI component. For the agent using it daily, the impact is concrete: 67% of agents report improvement in both the speed and consistency of their responses when using the Writing Assistant. This level of embedded intelligence helps teams manage higher interaction volumes without needing to immediately scale headcount, which is a major concern for many leaders right now.

You can see the immediate operational benefit in the cash flow, too. Net Cash Provided by Operating Activities was $63.5 million, resulting in an Operating Cash Flow Margin of 29.5% for the quarter. That's real money being generated efficiently from the platform's use.

• Freddy AI Copilot usage: 28% of surveyed agents use it daily.
• Agent time saved via Summarizer: 56%.
• Enterprise Service Management (ESM) ARR: Surpassed $35 million.
• GAAP Loss from Operations improved to $(7.5) million from $(38.9) million year-over-year.

Finance: draft 13-week cash view by Friday.

Freshworks Inc. (FRSH) - Canvas Business Model: Customer Relationships

You're looking at how Freshworks Inc. (FRSH) manages its customer base right now, late 2025. It's a dual approach, balancing high-touch service for the big spenders with scalable support for everyone else.

The focus on larger accounts is clear in the Annual Recurring Revenue (ARR) breakdown. As of Q1 2025, over 60% of the total ARR was coming from mid-market and enterprise customers. This segment is where the dedicated resources go.

For these larger accounts, the relationship model is built on dedicated support and partner expertise. The company launched a new global partner program in early 2025, which now includes more than 500 transacting partners. This structure is designed to facilitate high-touch, partner-led service delivery for complex, large-scale transformations, bringing deep industry expertise in sectors like banking, healthcare, and financial services.

The health of the existing customer base is strong, as shown by the expansion metric. The Net Dollar Retention rate was 105% in Q1 2025. That means, even after accounting for any churn, the existing customers spent 5% more with Freshworks Inc. than they did a year prior.

Here's a quick look at how the higher-value customer segments are growing, which drives that retention number:

Customer Segment (ARR)	Count (Q1 2025)	Year-over-Year Growth
Total Customers	73,300	9%
ARR > $5,000	23,275	13%
ARR > $50,000	3,217	24%

For the Small and Medium-sized Businesses (SMBs), which formed the historical core, the relationship is geared toward scalability. The overall customer base grew to 73,300 total customers in Q1 2025, a 9% year-over-year increase. The value proposition here centers on simplicity and ease of use, which supports a more scalable, low-touch, and self-service support model.

The expansion within the installed base is a key indicator of relationship success:

• Net Dollar Retention Rate (Q1 2025): 105%
• Net Dollar Retention Rate (Q1 2024): 106%
• Net Dollar Retention Rate (Q4 2024): 103%

The partner ecosystem is also a relationship channel, with the new program offering flexible sales engagement models, including one-time commissions for sales consultants and ongoing revenue for premier resellers.

Finance: draft the Q2 2025 cash flow forecast incorporating the ARR growth trends by Monday.

Freshworks Inc. (FRSH) - Canvas Business Model: Channels

The Channels block for Freshworks Inc. centers on a multi-pronged approach to reach its diverse customer base, from self-service adoption to high-touch enterprise sales.

Direct Field Sales team for Enterprise and Mid-Market deals in North America and Europe.

The focus on larger customers is evident in the revenue composition and sales leadership appointments. Mid-Market and Enterprise customers (organizations with more than 250 employees) accounted for over 60% of total Annual Recurring Revenue (ARR) as of Q3 2025. The Employee Experience (EX) product line saw over 75% of its ARR coming from mid-market and enterprise companies in Q1 2025. The company reinforced its North American sales structure with the appointment of Enrique Ortegon as Senior Vice President and General Manager of Americas Field Sales in Q3 2025.

Geographic revenue contribution for the three months ended June 30, 2025 (Q2 2025) highlights the importance of these regions:

Geography	Revenue (Three Months Ended June 30, 2025)	Revenue Share (Q2 2025)
North America	$95.14 million	46%
Europe, Middle East, and Africa (EMEA)	$79.28 million	39%
Asia Pacific	$24.70 million	12%

Inbound Commercial Sales motion, primarily run out of India for SMBs.

While the search results do not explicitly detail the India-based SMB motion, the overall customer base growth and the focus on higher-value segments suggest a tiered approach where smaller customers likely feed into this motion. The total customer count reached nearly 75,000 as of Q3 2025. Customers contributing more than $5,000 in ARR stood at 24,377 as of September 30, 2025.

Global Reseller and Channel Partner Network for market penetration.

The channel leverage is noted as ramping up, with a new global partner program introduced in Q1 2025. Strategic partnerships, such as the one with Unisys, are part of this effort.

• Strategic Partner of the Year in Q1 2025: Climb
• Customers with ARR exceeding $50,000 grew 20% year-over-year to 3,612 in Q3 2025

Direct-to-consumer website and freemium/trial models for initial adoption.

Initial adoption and low-touch entry points are strongly indicated by the rapid uptake of the AI features, which often follow a product-led growth or trial path. The company's AI offerings show significant adoption metrics:

• Freddy AI ARR doubled year-over-year as of Q3 2025
• Freddy AI Copilot ARR grew by 160% year-over-year in Q3 2025
• Over 2,700 Copilot customers were reported in Q1 2025
• Over 1,600 Freddy AI Agent customers were reported in Q1 2025

Freshworks Inc. (FRSH) - Canvas Business Model: Customer Segments

You're looking at how Freshworks Inc. segments its buyers as of late 2025, which shows a clear, successful pivot upmarket from its roots. The customer base is diverse, but the financial focus is clearly on higher-value accounts now.

Historically, the Small and Medium-sized Businesses (SMBs) were the engine, and they still form a significant part of the Customer Experience (CX) product revenue, representing about 53% of that specific revenue stream. This is where the company established its initial foothold with its uncomplicated approach.

However, the strategic shift is evident when you look at the total Annual Recurring Revenue (ARR). As of Q1 2025, over 60% of the total ARR is now generated by Mid-Market and Enterprise customers. This indicates that the larger, more complex organizations are driving the majority of the committed revenue base.

The growth in the high-value cohort is a key metric you need to watch. The number of customers with Annual Recurring Revenue (ARR) over $50,000 saw robust expansion, growing 24% year-over-year to reach 3,217 customers in Q1 2025. This is the fastest-growing segment, showing the upmarket strategy is working.

The total global footprint is substantial, with Freshworks Inc. serving nearly 75,000 companies globally, though the precise figure reported at the end of Q1 2025 was 73,300 total customers. That was a 9% increase year-over-year.

The customer base spans several key industries, which you should map against your own target market analysis. These verticals include, but aren't limited to:

• Banking
• Healthcare
• Retail
• The public sector

Here's a quick look at the key customer cohort statistics from Q1 2025:

Customer Segment Metric	Value (Q1 2025)	Year-over-Year Growth
Total Customer Base	73,300 companies	9%
Customers with ARR > $50,000	3,217 customers	24%
Customers with ARR > $5,000	23,275 customers	13%

To be fair, the shift means that while SMBs still represent a large volume of logos, the financial gravity is pulling toward the larger deals. For instance, the Employee Experience (EX) platform shows an even more pronounced Enterprise focus, with 79% of its revenue coming from Mid-Market/Enterprise customers, compared to the 53% for CX products.

Freshworks Inc. (FRSH) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Freshworks Inc. equation, which is heavily weighted toward fueling growth and product superiority, especially in the AI space. Honestly, managing these costs while scaling upmarket is the central financial challenge right now.

Significant investment in Research & Development (R&D) for AI and product integration is a major cost driver. This spend is clearly paying off, as Freddy AI products doubled their Annual Recurring Revenue (ARR) year-over-year as of late 2025. Furthermore, the push into the enterprise segment means R&D is focused on features that appeal to larger organizations, evidenced by the Enterprise Service Management (ESM) offering, Freshservice for Business Teams, which saw its ARR surpass $35 million in Q3 2025.

The second largest bucket of expense is High Sales and Marketing (S&M) expenses to fund the upmarket field sales expansion. This is the cost of acquiring larger, more valuable customers. The results show this strategy is gaining traction: the number of customers contributing more than $5,000 in ARR grew to 24,377, an increase of 9% year-over-year. Even better, the high-value segment is accelerating, with customers contributing over $50,000 in ARR increasing by 20% year-over-year to 3,612.

As a Software-as-a-Service provider, Cloud infrastructure and hosting costs for global SaaS delivery form a non-negotiable operational expense. While specific dollar amounts for infrastructure aren't broken out in the same way as R&D or S&M, the entire model relies on scalable, secure, world-class data center operations to deliver its platform globally.

The good news is that operating efficiency is improving. This is where the cost discipline shows up on the income statement. For the third quarter of 2025, the Non-GAAP Operating Margin was 21.0%. This is a sharp improvement from the 12.8% margin seen in Q3 2024. The actual Non-GAAP Income from Operations for that quarter was $45.2 million.

Looking at the full-year expectations, the company has been raising its outlook, signaling confidence in cost control relative to revenue growth. The guidance for the full fiscal year 2025 is that Total Non-GAAP Income from Operations is guided to be $153 million to $157 million for FY 2025.

Here's a quick look at the profitability and customer cost-related metrics from Q3 2025:

Metric	Value (Q3 2025)	Comparison/Context
Non-GAAP Operating Margin	21.0%	Up from 12.8% in Q3 2024
Non-GAAP Income from Operations	$45.2 million	Reflects strong cost management
GAAP Loss from Operations	$(7.5) million	Significant reduction from $(38.9) million in Q3 2024
Customers > $5,000 ARR	24,377	Up 9% year-over-year
Net Dollar Retention Rate	105%	Indicates existing customer spend growth

You can see the operating leverage kicking in. The company is spending heavily on R&D and S&M, but the resulting revenue growth is dropping more dollars to the operating income line. Still, managing the S&M spend as they chase bigger deals is key; if onboarding takes 14+ days, churn risk rises, wasting that S&M investment.

• Significant investment in Research & Development (R&D) for AI and product integration.
• High Sales and Marketing (S&M) expenses to fund the upmarket field sales expansion.
• Cloud infrastructure and hosting costs for global SaaS delivery.
• Operating efficiency is improving; Non-GAAP Operating Margin was 21.0% in Q3 2025.
• Total Non-GAAP Income from Operations is guided to be $153 million to $157 million for FY 2025.

Finance: draft 13-week cash view by Friday.

Freshworks Inc. (FRSH) - Canvas Business Model: Revenue Streams

You're looking at how Freshworks Inc. actually brings in the money, which is almost entirely through software subscriptions, as of late 2025. It's a classic Software-as-a-Service (SaaS) model, but they've successfully split their revenue focus across two main product families: Customer Experience (CX) and Employee Experience (EX).

The big picture for the full year 2025 revenue guidance, based on their latest update, is projected to be between $833.1 million and $836.1 million. That's an increase from their earlier forecast of $822.9 million to $828.9 million, showing they are gaining traction, especially with larger customers.

Subscription revenue from the Customer Experience (CX) suite, anchored by Freshdesk, continues to be a major contributor. As of the third quarter of 2025, this business segment was reporting over $390 million in Annual Recurring Revenue (ARR). This suite is still seeing a significant portion of its revenue-about 53%-coming from Small and Midsize Businesses (SMBs), though the strategic push upmarket is clear.

On the internal-facing side, the Employee Experience (EX) suite, driven by Freshservice, is showing durable growth. The entire EX portfolio now accounts for $450 million in recurring revenue. A key expansion lever here is the add-on, Freshservice for Business Teams (Enterprise Service Management), which alone surpassed $35 million in ARR as of Q3 2025, doubling its revenue in the past year.

The newer, high-growth component is revenue from AI features and add-ons, specifically the Freddy AI suite. As of the second quarter of 2025, the combined ARR for Freddy AI Agent and Freddy Copilot crossed the $20 million mark, having doubled year-over-year. Honestly, AI is becoming a core part of nearly every large deal now.

The way Freshworks Inc. structures its pricing is definitely a tiered model. You pay more for more features, more users, and higher usage volume, which is standard for enterprise software. Here's a quick look at the starting points for the core product lines based on agent count, billed annually, which is where most customers land:

Product Suite	Pricing Tier	Approximate Price Per Agent/Month (Billed Annually)	Key Feature Differentiator
Customer Experience (Freshdesk)	Growth	$15	Shared inbox, Basic SLA management
Customer Experience (Freshdesk)	Pro	$49	Freddy AI Agent, 5,000 Collaborators
Employee Experience (Freshservice)	Starter	$19	Incident Management, Basic SLA
Employee Experience (Freshservice)	Growth	$49	Service Catalog, Asset Management (100 assets)
Employee Experience (Freshservice)	Enterprise	Custom Quote	Full Freddy AI included, Sandbox environment

The pricing structure helps them capture value across the spectrum. You see this in their customer segmentation, too. For instance, customers contributing over $50,000 in ARR grew by 20% year-over-year to 3,612 as of Q3 2025, and this high-value cohort now represents over 50% of total ARR. That's where the real money is being made.

The revenue streams are clearly segmented by function, but the underlying mechanism is consistent subscription billing:

• Subscription revenue from the Customer Experience (CX) suite (Freshdesk).
• Subscription revenue from the Employee Experience (EX) suite (Freshservice), which has an ARR of over $450 million.
• Revenue from AI features and add-ons (Freddy AI), currently a $20 million ARR business as of Q2 2025.
• Tiered pricing model based on features, user count, and usage volume.
• Full Year 2025 Revenue is projected to be between $833.1 million and $836.1 million.

Finance: draft 13-week cash view by Friday.