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The SaaS firm posted an operating loss of $4.8 Mn compared to a net profit of $191.4 Mn posted in the previous quarter (Q4 2025)

Its net revenue stood at $228.6 Mn, up 16% compared to $196.3 Mn in the first quarter of 2025

Freshworks will trim 11% of its workforce, representing around 500 employees, in a push to adopt AI in product and engineering

Nasdaq-listed SaaS major Freshworks slipped into the red in the first quarter of 2026, posting a net loss of $4.8 Mn from a net profit of $191.4 Mn reported in the previous quarter (Q4 2025). On a YoY basis, loss jumped 3.6X from $1.3 Mn.

The company’s revenue stood at $228.6 Mn during the quarter under review, up 16% from $196.3 Mn in the year-ago quarter. On a sequential basis, revenue grew 2.7% from $222 Mn.

The company also announced that it will trim 11% of its workforce, representing around 500 employees, in a push to adopt AI in product and engineering along with automation of routine work across the board.

The layoffs are expected to affect the company’s teams globally and cost $8 Mn in one-time restructuring charges.

The company gave 13%-15% YoY revenue growth guidance for Q2 2026. It expects its top line to be between $232 Mn and $235 Mn in the June quarter.

(The story will be updated soon)