Freshworks Welcomes Torii on October 19 After Acquisition Agreement
Key Facts
Freshworks formally welcomed Torii in an October 19, 2026, post by Chief Product and Technology Officer Ryan Manning, following the announcement of a definitive agreement to acquire the company. Freshworks had announced the signing of the agreement on October 12, 2026, aiming to expand its Freshservice platform into software management and AI spending governance. According to its statement, the acquisition adds application usage and cost capabilities to the platform strategy. The expansion covers software-as-a-service applications as well as AI tools used by enterprises. The formal welcome for Torii marked a subsequent development following the announcement of the agreement's signing, with the teams moving to draw up integration plans, according to Manning's post.
Torii enables AI consumption tracking at the token level, according to Freshworks' statement, a capability the company places within its expansion into governance of that spending. The capabilities the platform adds include discovering applications used by enterprises, according to Manning's explanation of the Freshservice strategy. They also extend to tracking those applications' usage, access permissions and associated economics across software-as-a-service applications and AI tools. Manning links the need for these capabilities to the nature of the cost of work performed by AI tools, which has become variable depending on how tasks are executed. He said that cost is determined by "consumption, the models used and the complexity of the tasks being performed," outlining the factors the company seeks to manage through this expansion.
Torii was founded in 2017, according to Freshworks' official statement, and its customers include Hearst Corporation, Groupon and Koch. In Manning's update on the company joining Freshworks, Freshworks confirmed that existing products would continue under current customer arrangements. It also said support arrangements and customer commitments remain in effect as work proceeds on integration plans. Manning summed up that position by saying: "Existing products, support arrangements and commitments remain in place." The continuity assurance thus covers both the products customers use and the support provided to them, while the teams work together on how to integrate the businesses, according to the company's post on the next steps following Torii's addition.
On financial performance, Freshworks reported revenue of $237.4 million in the second quarter of 2026, according to its latest announced results. That represented growth of 16% from the same quarter a year earlier, according to its investor relations announcement. In the employee experience segment, annual recurring revenue increased 24% year on year during the same period. The growth rate for that metric in the segment exceeded the company's total revenue growth rate, with the two measures differing between annual recurring revenue and quarterly revenue. Freshworks also said in its second-quarter results announcement that its Freddy AI assistant was attached to more than 71% of new enterprise deals.
Freshworks previously expanded its IT asset management capabilities through its acquisition of Device42, a deal it completed on June 6, 2024. According to its filing with the U.S. Securities and Exchange Commission, the company purchased all outstanding shares in Device42's parent company. Total purchase consideration was approximately $238.1 million, the value of that earlier acquisition. When it completed the deal, Freshworks said it aimed to add advanced asset discovery and application dependency mapping capabilities. The company linked those capabilities to helping customers better anticipate risks and accelerate incident resolution, while the Torii agreement focuses on software management and governance of spending on AI tools.
Freshworks' next financial reporting date is Tuesday, November 3, 2026, when it will announce third-quarter results after the market closes, according to the company's announcement. The results will cover the quarter following the period in which it recorded year-on-year revenue growth of 16% and revenue of $237.4 million. They also follow the announcement of the Torii agreement and the formal welcome for the company, both issued in October. On the operational side, Manning said the teams "are now working together on integration plans," identifying the work underway following the agreement. The next phase thus combines preparation of those plans with continued product and support commitments to customers, while the third-quarter results announcement on November 3 remains the next financial milestone on the company's calendar.