Freshworks Inc. (FRSH) SEC Filings & Earnings Calls

Net dollar retention rate declined from 106% to 104% YoY, indicating potential customer churn or downgrades.

“Net dollar retention rate was 104%, compared to 106% in the first quarter of 2026 and 106% in the second quarter of 2025.” · word for word

Macroeconomic uncertainty impacting demand

“Current macroeconomic uncertainties, including inflationary pressures, significant volatility in global markets, and geopolitical developments have impacted and may continue to impact business spending and the overall economy, and in turn our business.” · word for word

Foreign exchange headwinds

“foreign currency exchange rate fluctuations negatively impacted our revenue growth historically and volatility in the foreign currency market still exists.” · word for word

Restructuring execution risk

“Restructuring charges of $7.0 million for the three months ended June 30, 2026, consisted of employee severance and termination benefits related to the restructuring plan that we initiated in May 2026.” · word for word

Restructuring execution risk and potential additional costs

“The Company may also incur additional expenses not currently contemplated due to events that may occur as a result of, or that are associated with, the Plan.” · word for word

Foreign exchange volatility

“foreign currency exchange rate fluctuations negatively impacted our revenue growth... $7.1 million foreign exchange loss during the period.” · word for word

Macroeconomic uncertainty impacting demand

“Current macroeconomic uncertainties, including inflationary pressures, significant volatility in global markets, and geopolitical developments have impacted and may continue to impact business spending.” · word for word

Restructuring execution risk

“In May 2026, we committed to a restructuring plan that is expected to incur charges in the second quarter of 2026.” · word for word

Key executive transition risk

“Mr. Mathrubootham retired from his position as our Executive Chairman effective December 1, 2025.” · word for word

Sales leadership transition risk

“Ian Tickle was appointed to serve as our Chief Revenue Officer in March 2026.”

Customer and marketing officer departure

“Ms. Yamamoto served as our Chief Integrated Customer Growth Officer from January 1, 2026 to March 2, 2026... Ms. Yamamoto is expected to remain with the Company until April 2, 2026 in an advisory capacity.” · word for word

Loss of a senior customer growth executive may temporarily affect go-to-market strategy, but internal promotion mitigates disruption.

“Yamamoto leaving; Tickle assumes broader sales role.”

Repurchase program may reduce liquidity but signals strong balance sheet.

“Program size relative to market cap not disclosed; discretionary timing.”

Sustained profitability risk

“Although we recently generated net income, we have a history of losses and we may not be able to sustain profitability.” · word for word

Revenue growth deceleration

“Even if our revenue continues to increase, we expect that our revenue growth rate may continue to decline in the future as a result of a variety of factors, including the maturation of our business.” · word for word

Macroeconomic sensitivity

“Macroeconomic uncertainties, including inflationary pressures, rising interest rates, supply chain disruptions, labor market volatility, geopolitical tensions, and recession risks, have in the past adversely affected and may continue to adversely affect our business.” · word for word

Customer retention risk

“Our business depends substantially on our customers renewing their subscriptions and purchasing additional subscriptions from us. Any decline in our customer retention would harm our future operating results.” · word for word

Competitive pressure

“We operate in a highly competitive industry, and competition presents an ongoing threat to the success of our business.” · word for word

Competitive pressure in software market; reliance on AI adoption for growth.

“Forward-looking statements mention competition and market conditions.”

Board size reduction and director departure may signal governance transition, but no disagreement indicates low immediate risk.

“Board size reduced to eight members; director departure effective Jan 2, 2026.”

Macroeconomic pressure on expansion

“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.” · word for word

Foreign exchange risk

“For the quarters ended September 30, 2025, June 30, 2025, and September 30, 2024, we had approximately 28%, 27% and 27%, respectively, of revenue exposure related to the euro and British Pound.” · word for word

Share repurchase program exhaustion

“As of September 30, 2025, the share repurchase program is complete.” · word for word

Net dollar retention rate declining slightly (107% -> 105% y/y, 106% q/q).

“Net dollar retention rate was 105%, compared to 106% in the second quarter of 2025 and 107% in the third quarter of 2024.” · word for word