Freshworks Inc.
For the period ended Dec 31, 2025. Filed Feb 26, 2026.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 26, 2026
FRSH$11.88-1.1%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Cash Flows from Operating Activities: | |||
| Net income (loss) | $183,723 | $(95,368) | $(137,436) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
| Depreciation and amortization | 25,857 | 19,415 | 12,144 |
| Amortization of deferred contract acquisition costs | 31,702 | 28,556 | 23,965 |
| Non-cash lease expense | 9,700 | 8,842 | 7,736 |
| Stock-based compensation | 146,819 | 216,706 | 210,707 |
| Discount amortization on marketable securities | (6,557) | (15,992) | (15,652) |
| Gain on sale of non-marketable equity investments | (1,837) | — | — |
| Release of valuation allowance | (151,738) | — | — |
| Deferred income taxes | 2,637 | (12,642) | (1,322) |
| Other | 779 | 1,397 | 119 |
| Changes in operating assets and liabilities: | |||
| Accounts receivable | (28,059) | (17,145) | (26,982) |
| Deferred contract acquisition costs | (40,071) | (34,524) | (26,962) |
| Prepaid expenses and other assets | (11,868) | (1,393) | (7,411) |
| Accounts payable | 9,573 | (2,204) | (2,423) |
| Accrued and other liabilities | 19,078 | 14,454 | 1,839 |
| Deferred revenue | 61,179 | 54,808 | 60,773 |
| Operating lease liabilities | (8,547) | (4,264) | (12,917) |
| Net cash provided by operating activities | 242,370 | 160,646 | 86,178 |
| Cash Flows from Investing Activities: | |||
| Purchases of property and equipment | (5,700) | (9,177) | (2,069) |
| Proceeds from sale of property and equipment | 149 | 279 | 110 |
| Capitalized internal-use software | (15,791) | (5,485) | (6,271) |
| Purchases of marketable securities | (586,833) | (620,573) | (842,803) |
| Sale of non-marketable equity investments | 1,984 | — | — |
| Maturities and redemptions of marketable securities | 830,756 | 887,664 | 1,009,532 |
| Advances paid for business combination (Note 16) | (18,432) | — | — |
| Business combination, net of cash acquired | — | (213,905) | — |
| Net cash provided by investing activities | 206,133 | 38,803 | 158,499 |
| Cash Flows from Financing Activities: | |||
| Proceeds from issuance of common stock under employee stock purchase plan, net | 6,228 | 6,643 | 7,271 |
| Proceeds from exercise of stock options | 74 | 89 | 88 |
| Payment of withholding taxes on net share settlement of equity awards | (56,654) | (60,299) | (67,978) |
| Repurchase of common stock | (386,306) | (13,693) | — |
| Net cash used in financing activities | (436,658) | (67,260) | (60,619) |
| Net increase in cash, cash equivalents and restricted cash | 11,845 | 132,189 | 184,058 |
| Cash, cash equivalents and restricted cash, beginning of period | 620,405 | 488,216 | 304,158 |
| Cash, cash equivalents and restricted cash, end of period | $632,250 | $620,405 | $488,216 |
| Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets: | |||
| Cash and cash equivalents | $569,774 | $620,315 | $488,121 |
| Restricted cash, current | 62,374 | 3 | — |
| Restricted cash included in other assets | 102 | 87 | 95 |
| Total cash, cash equivalents and restricted cash | $632,250 | $620,405 | $488,216 |
| Supplemental cash flow information: | |||
|---|---|---|---|
| Cash paid for taxes | $14,384 | $11,949 | $12,034 |
| Non-cash investing and financing activities: | |||
| Operating lease right-of-use assets obtained in exchange for operating lease obligations | $12,755 | $13,275 | $7,461 |
| Stock-based compensation capitalized as internal-use software | $3,199 | $1,358 | $1,758 |
| Issuance of common stock and options in connection with acquisition | $— | $12,874 | $— |
| Excise tax liability accrued for common stock repurchased | $2,961 | $— | $— |
| Payables related to unsettled common stock repurchases | $— | $1,840 | $— |
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