Freshworks vs HubSpot: Revenue, Profit and Business Model
Freshworks reported $838.8M of revenue in FY2025 and $183.7M of net income. HubSpot reported $3.1B of revenue in FY2025 and $45.9M of net income.
Latest financial snapshot
Freshworks
- Latest revenue
- $838.8M (FY2025)
- Net income
- $183.7M
- Net margin
- 21.9%
- Revenue growth
- +30.2% a year, FY2019–FY2025
HubSpot
- Latest revenue
- $3.1B (FY2025)
- Net income
- $45.9M
- Net margin
- 1.5%
- Revenue growth
- +31.2% a year, FY2016–FY2025
Financial summary
Freshworks
Freshworks grew revenue from $172.4 million in 2019 to $838.8 million in 2025. Losses peaked at a $232 million net loss in 2022, then narrowed as the company cut costs and slowed hiring. In 2025 it posted GAAP operating income of $13.2 million (versus a $138.6 million loss in 2024), non-GAAP operating income of $178.0 million, and $242.4 million in operating cash flow; GAAP net income of about $184 million was boosted by a fourth-quarter tax benefit. Cash and marketable securities were $843.7 million at year-end 2025. In Q2 2026 revenue rose 16% to $237.4 million with a 24% non-GAAP operating margin.
HubSpot
HubSpot spent its first 18 years trading losses for growth: GAAP net losses ran from $39.7 million in 2017 to $164.5 million in 2023. The turn came in 2024 with $4.6 million of net income on $2.63 billion of revenue, followed by $45.9 million on $3.13 billion in 2025. In Q2 2026 revenue reached $911.7 million (up 20% as reported, 17% in constant currency), subscription revenue was $894.0 million, and non-GAAP operating margin improved to 20.3%. Full-year 2026 guidance calls for roughly $3.68 billion of revenue and about a 21% non-GAAP operating margin.
Revenue and profit by year
Freshworks
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $838.8M | $183.7M | 21.9% | +16.4% | Source |
| FY2024 | $720.4M | -$95.4M | -13.2% | +20.8% | Source |
| FY2023 | $596.4M | -$137.4M | -23.0% | +19.8% | Source |
| FY2022 | $498M | -$232.1M | -46.6% | +34.2% | Source |
| FY2021 | $371M | -$192M | -51.7% | +48.6% | Source |
| FY2020 | $249.7M | -$57.3M | -22.9% | +44.8% | Source |
| FY2019 | $172.4M | -$31.1M | -18.1% | — | Source |
HubSpot
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $3.1B | $45.9M | 1.5% | +19.2% | Source |
| FY2024 | $2.6B | $4.6M | 0.2% | +21.1% | Source |
| FY2023 | $2.2B | -$164.5M | -7.6% | +25.4% | Source |
| FY2022 | $1.7B | -$107.3M | -6.2% | +33.1% | Source |
| FY2021 | $1.3B | -$77.8M | -6.0% | +47.3% | Source |
| FY2020 | $883M | -$85M | -9.6% | +30.8% | Source |
| FY2019 | $674.9M | -$53.7M | -8.0% | +31.6% | Source |
| FY2018 | $513M | -$63.8M | -12.4% | +36.6% | Source |
| FY2017 | $375.6M | -$39.7M | -10.6% | +38.6% | Source |
| FY2016 | $271M | -$45.6M | -16.8% | — | Source |
Where the revenue comes from
Freshworks
No segment breakdown is published.
HubSpot
- Subscription Services~98%
Recurring subscriptions to Marketing Hub, Sales Hub, Service Hub, Content Hub, Data Hub, Commerce Hub, Smart CRM, and AI-enabled features: US$3.06 billion of fiscal 2025 revenue, per the FY2025 Form 10-K.
- Professional Services and Other~2%
Onboarding, implementation, training, and other services support customer adoption, with much of the services ecosystem handled through HubSpot partners: US$67.3 million of fiscal 2025 revenue, per the FY2025 Form 10-K.
- Commerce and AI EcosystemEmerging
Commerce Hub transaction tools, Breeze AI, AI agents, integrations, and marketplace features create potential expansion revenue around the core subscription base.
Business model and strategy
Freshworks
How it makes money
Freshworks sells subscriptions, mostly priced per agent or per user, across tiered plans (Growth, Pro, Enterprise). Revenue comes from two segments: employee experience (Freshservice for IT service management, IT asset management via the 2024 Device42 acquisition, and service management for HR and facilities) and customer experience (Freshdesk ticketing, Freshchat messaging and Freshsales CRM).
Growth strategy
Under Dennis Woodside, Freshworks narrowed its focus to service software. It pushes Freshservice upmarket into mid-sized and larger enterprises, cross-sells IT asset management, sells Freddy AI add-ons into the installed base, and relies more on partners and resellers. In 2024 it de-emphasized standalone sales and marketing CRM products to concentrate investment on IT and customer service.
Competitive advantage
Freshworks' main advantage is a lower total cost of ownership: Freshservice and Freshdesk are designed to be configured by in-house admins in weeks rather than through multi-month integrator projects common with ServiceNow or Salesforce. A large engineering base in India keeps R&D costs lower than Silicon Valley peers, and a shared platform lets one vendor cover IT, HR and customer support desks.
HubSpot
How it makes money
HubSpot sells subscriptions to its customer platform. A free CRM and free tiers of each hub bring businesses in at no cost; paying customers then move up through Starter, Professional, and Enterprise editions, add hubs, and buy seats and AI credits.
Growth strategy
HubSpot is pursuing three growth paths. First, moving upmarket with Enterprise editions, custom objects, and data tools so larger customers consolidate on HubSpot. Second, selling more hubs and seats to its installed base of more than 306,000 customers. Third, monetizing AI through Breeze agents (customer service, prospecting, data, and content agents) and usage-based credits.
Competitive advantage
HubSpot's edge is ease of use on a single data model. Marketing, sales, service, content, and commerce records sit in one Smart CRM, so a mid-market company can run its go-to-market stack without the consultants and integration work that Salesforce or Microsoft Dynamics 365 often require.
Questions about Freshworks vs HubSpot
Which company has higher revenue — Freshworks Inc. or HubSpot, Inc.?
Freshworks Inc. reported $838.8M (FY2025), while HubSpot, Inc. reported $3.1B (FY2025). By last reported revenue, HubSpot, Inc. is the larger business, with Freshworks Inc. reporting a smaller revenue base.
What is the market cap of Freshworks Inc. vs HubSpot, Inc.?
Freshworks Inc.'s market capitalisation stands at $3.3B, while HubSpot, Inc.'s is $11.0B. HubSpot, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Freshworks Inc..
Which is more financially efficient — Freshworks Inc. or HubSpot, Inc.?
Freshworks Inc. generates $210k / employee in revenue per employee, while HubSpot, Inc. generates $353k / employee. HubSpot, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Freshworks Inc. and HubSpot, Inc. make money?
Freshworks Inc. and HubSpot, Inc. generate revenue in fundamentally different ways. Freshworks Inc.: Freshworks sells subscriptions, mostly priced per agent or per user, across tiered plans (Growth, Pro, Enterprise). HubSpot, Inc.: HubSpot sells subscriptions to its customer platform.
Which company is valued higher relative to revenue — Freshworks Inc. or HubSpot, Inc.?
On a price-to-sales (P/S) basis, Freshworks Inc. trades at 3.9x P/S and HubSpot, Inc. at 3.5x P/S. Freshworks Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to HubSpot, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Freshworks Inc. bigger than HubSpot, Inc.?
By last reported revenue, HubSpot, Inc. ($3.1B (FY2025)) is the larger company compared to Freshworks Inc. ($838.8M (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Freshworks vs HubSpot overview