Nasdaq-listed Software-as-a-Service (SaaS) company Freshworks reported a return to profitability in the second quarter of 2026, with a 16% increase in revenue as demand for its artificial intelligence (AI) offerings continued to strengthen.

The company posted a net profit of $3.2 million for the quarter, compared to a net loss of $1.7 million in the corresponding period last year.

Revenue rose to $237.4 million in the April–June quarter from $204.7 million a year earlier.

The company said the non-GAAP income in the second quarter of 2026 from operations was $55.9 million, representing a non-GAAP operating margin of 23.6%, compared to$44.8 million, representing a non-GAAP operating margin of 21.9%, in the second quarter of 2025.

“Freshworks just delivered its seventh straight quarter beating revenue estimates, its eighth consecutive quarter hitting Rule of 40, and a milestone we said we'd hit – GAAP profitability, months ahead of plan.