Freshworks Inc.
- Open
- 10.77
- Day high
- 11.04
- Day low
- 10.49
- Prev close
- 10.61
- Volume
- 15.3M
- Mkt cap
- $3.0B
- P/E (TTM)
- 17.1
- EPS (TTM)
- $0.64
- P/B
- 3.0
- P/S
- 3.5
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$270K over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions accumulating (13F)
Freshworks Inc. (FRSH) is a Technology company listed on NASDAQ. The stock is down 23% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4).
Freshworks Inc. (FRSH) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FRSH earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.11 | $0.11 | +0.0% | $229M | +2.2% |
| Feb 10, 2026 | $0.11 | $0.14 | +27.3% | $223M | +0.8% |
| Nov 5, 2025 | $0.13 | $0.16 | +23.1% | $215M | -1.7% |
| Jul 30, 2024 | $0.06 | $0.08 | +33.3% | $174M | +1.8% |
| May 1, 2024 | $0.08 | $0.10 | +25.0% | $165M | +0.9% |
| Feb 6, 2024 | $0.05 | $0.08 | +60.0% | $160M | +1.0% |
| Oct 31, 2023 | $0.05 | $0.08 | +60.0% | $154M | -3.1% |
| May 2, 2023 | $0.01 | $0.03 | +274.5% | $138M | +2.6% |
| Feb 7, 2023 | $0.00 | $0.01 | +126.8% | $133M | -0.8% |
| Nov 1, 2022 | $-0.06 | $-0.01 | +83.3% | $129M | +2.6% |
| Aug 2, 2022 | $-0.07 | $-0.06 | +14.3% | $121M | +3.0% |
| May 3, 2022 | $-0.05 | $-0.01 | +80.0% | $115M | +5.9% |
FRSH insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 6, 2026 | Tickle Ianofficer: Chief Revenue Officer | Tax | 6,222 | $10.41 |
| Jul 6, 2026 | Sloat Tylerofficer: Chief Financial & Oper Officer | Tax | 10,563 | $10.34 |
| Jul 6, 2026 | Tickle Ianofficer: Chief Revenue Officer | Tax | 1,635 | $10.34 |
| Jul 6, 2026 | Lawrence Philippaofficer: Chief Accounting Officer | Tax | 4,123 | $10.34 |
| Jul 6, 2026 | Woodside Dennisdirector, officer: CEO & President | Tax | 22,473 | $10.34 |
| Jul 6, 2026 | Tickle Ianofficer: Chief Revenue Officer | Tax | 7,102 | $10.34 |
| Jul 6, 2026 | Lawrence Philippaofficer: Chief Accounting Officer | Sell | 3,470 | $10.13 |
| Jul 6, 2026 | Lawrence Philippaofficer: Chief Accounting Officer | Tax | 2,086 | $10.34 |
| Jul 6, 2026 | Tickle Ianofficer: Chief Revenue Officer | Tax | 6,263 | $10.41 |
| Jul 2, 2026 | Taylor Jennifer Hdirector | Grant | 22,299 | — |
| Jul 2, 2026 | AUSTIN ROXANNE Sdirector | Grant | 23,311 | — |
| Jul 2, 2026 | Pelzer Francis J.director | Grant | 21,253 | — |
| Jul 2, 2026 | GANDHI SAMEER Kdirector | Grant | 22,698 | — |
| Jul 2, 2026 | Taylor Jennifer Hdirector | Sell | 6,618 | $10.44 |
| Jul 2, 2026 | PADGETT BARRY L.director | Grant | 21,253 | — |
Source: FRSH SEC Form 4 filings, latest Jul 6, 2026. For informational purposes only — not investment advice.
See the full FRSH insider & 13F page →Freshworks Inc. company profile
Overview
Freshworks Inc. (NASDAQ:FRSH) is a software-as-a-service (SaaS) company founded in 2010 and headquartered in San Mateo, California. Originally incorporated as Freshdesk Inc., the company rebranded to Freshworks in 2017 to reflect its expanded product portfolio beyond help desk software. The company went public in September 2021 and has grown to serve over 72,000 customers globally with its suite of business software solutions focused on customer experience and employee experience management.
Business
Freshworks operates in the business software industry, specifically providing cloud-based customer relationship management (CRM) and IT service management (ITSM) solutions. The company's software helps businesses manage their interactions with customers and streamline internal operations through digital tools that replace traditional manual processes. The company operates two primary business segments that generate distinct revenue streams: **Customer Experience (CX) Business** (~50% of revenue): This segment includes Freshdesk (customer support software), Freshchat (live chat and messaging), and Freshsales (CRM software). These products help businesses manage customer inquiries, track sales opportunities, and provide support across multiple communication channels like email, phone, chat, and social media. The CX business serves approximately 58,200 customers and generates over $360 million in annual recurring revenue (ARR). **Employee Experience (EX) Business** (~50% of revenue): This segment centers around Freshservice (IT service management) and the recently acquired Device42 (IT asset management). These tools help companies manage internal IT operations, track hardware and software assets, handle employee IT requests, and automate routine IT tasks. The EX business serves approximately 18,300 customers and generates over $400 million in ARR, making it the faster-growing segment with 35% year-over-year growth. Both segments are enhanced by Freddy AI, Freshworks' artificial intelligence platform that includes AI-powered chatbots, productivity copilots for agents, and automated insights. The AI capabilities are designed to reduce manual work, improve response times, and provide data-driven recommendations across all product lines.
Competitive moat
Freshworks operates in a highly competitive software market with limited sustainable competitive advantages. The company's primary moat stems from **customer switching costs** and **product integration benefits**. Once businesses implement Freshworks' software and train their teams, migrate data, and establish workflows, switching to competitors involves significant time, cost, and operational disruption. This creates moderate customer stickiness, evidenced by the company's net dollar retention rate of 105%. The company is building a **platform moat** through its unified customer data approach and multi-product strategy. Customers using multiple Freshworks products (26% of the customer base) experience higher switching costs and tend to have better retention rates. The integration between customer experience and employee experience tools creates additional value that standalone point solutions cannot easily replicate. However, Freshworks faces significant competitive threats that limit the strength of its moat. **Large enterprise software incumbents** like Salesforce, ServiceNow, and Microsoft have substantially greater resources, broader product portfolios, and deeper enterprise relationships. These companies can bundle competing products at attractive prices and invest heavily in AI and product development. **Specialized competitors** in each product category often offer superior functionality for specific use cases, while **emerging AI-native companies** could potentially disrupt traditional software approaches with more advanced automation capabilities. The company's **AI capabilities through Freddy** represent a potential differentiator, but artificial intelligence in business software is rapidly becoming table stakes rather than a sustainable advantage. The effectiveness of Freshworks' moat ultimately depends on execution in product development, customer success, and the ability to move upmarket faster than competitors can penetrate their mid-market focus area.
Risks & safety
Freshworks exhibits a strong financial safety profile with multiple layers of protection against downside risks. **Cash Position and Liquidity:** - Cash and short-term investments: $594 million - Current ratio: 2.89x indicating strong short-term liquidity - Minimal debt with debt-to-equity ratio of only 3.8% - Positive free cash flow of $57 million in Q1 2025 **Profitability and Cash Generation:** - Achieved non-GAAP operating margin of 24% - Adjusted free cash flow margin of 28% - Revenue growth of 19% year-over-year provides operational leverage - Minimal cash burn risk given positive free cash flow generation **Valuation Considerations:** - Trading at 4.0x price-to-book ratio, reasonable for a growing SaaS company - Graham net-net ratio of 1.99x suggests adequate asset backing - Negative EBITDA creates challenges for traditional valuation metrics - Market cap of approximately $4.6 billion appears reasonable relative to $720 million annual revenue **Other Risk Factors:** - Strong balance sheet provides flexibility for strategic investments and acquisitions - Diversified customer base reduces concentration risk - Recurring revenue model provides predictable cash flows - Active share repurchase program demonstrates capital allocation discipline
Recent development
Over the past few years, Freshworks has undergone significant strategic evolution focused on three key imperatives: investing heavily in the Employee Experience business, monetizing AI capabilities across all products, and accelerating growth in Customer Experience solutions. The most significant development has been the company's **AI transformation through Freddy AI platform**. Starting with beta programs in 2023, Freshworks launched Freddy Copilot in February 2024, which provides AI-powered assistance to customer service and IT agents. The product has achieved remarkable adoption with over 2,700 customers by Q1 2025, demonstrating 50% attach rates for deals over $30,000 and delivering measurable productivity improvements of 30-50% for users. The company also introduced Freddy AI Agent for automated customer interactions and Freddy AI Insights for data-driven decision making. **Strategic acquisitions and market positioning** have been another major focus. The company acquired Device42 in mid-2024 to enhance its IT asset management capabilities, strengthening its position in the Employee Experience market. This acquisition, combined with organic growth, has helped the EX business achieve over $400 million in ARR with 35% year-over-year growth, making it the company's fastest-growing segment. The company has also implemented significant **operational efficiency measures**, including a 13% reduction in global headcount in Q3 2024 while maintaining growth momentum. Management has focused on improving sales execution, particularly in the mid-market segment, and has expanded its partner ecosystem to over 500 transacting partners to drive more efficient customer acquisition. **Go-to-market strategy refinements** include reorienting the sales organization to be more product-centric, focusing on customers with 5,000-20,000 employees who seek enterprise-grade functionality without complexity, and improving the digital sales motion for SMB customers. The company has also launched a $400 million share repurchase program, signaling confidence in its strategic direction and commitment to returning capital to shareholders.
FRSH company profile · for informational purposes only — not investment advice.
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