AcquisitionsMay 5, 2026, 04:40 PM
Freshworks Acquires FireHydrant for $88.7M; Q1 Revenue Up 16.5%
AI Summary
Freshworks Inc. reported a 16.5% increase in revenue to $228.6 million for the three months ended March 31, 2026, compared to the prior year. However, the company's net loss widened to $4.8 million from $1.3 million in the same period last year. A significant event during the quarter was the acquisition of FireHydrant, an incident management software company, for $88.7 million in cash, aimed at expanding its IT service and operations portfolio. The company also saw an increase in net cash provided by operating activities and continued its common stock repurchase program.
Key Highlights
- Freshworks acquired FireHydrant, Inc. for $88.7 million in cash on January 1, 2026.
- Q1 2026 revenue increased 16.5% to $228.6 million from $196.3 million year-over-year.
- Net loss widened to $4.8 million in Q1 2026 from $1.3 million in Q1 2025.
- Basic and diluted net loss per share was $(0.02) for the three months ended March 31, 2026.
- Net cash provided by operating activities rose to $62.4 million from $58.0 million year-over-year.
- The company repurchased $48.4 million of common stock during Q1 2026.
- Goodwill increased by $52.6 million due to the FireHydrant acquisition.
- Freshworks is a defendant in an ongoing securities class action lawsuit filed in November 2022.