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Freshworks Inc. FRSH R2K

Technology · Software - Application · United States
https://www.freshworks.com

Freshworks Inc., a software development company, provides software-as-a-service products in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company's software-as-a-service solutions includes Customer Experience (CX) and Employee Experience (EX). Its Customer Experience products include Freshdesk Omni, an AI-powered omnichannel customer service solution that unifies customer interactions, support operations, and empowers agents to deliver exceptional experiences; Freshdesk, a ticketing and case management solution; Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels; Freshcaller, a cloud-based contact center solution for scalable voice operations; Freshsales, a sales CRM for pipeline management and deal closure solution; and Freshmarketer, a marketing automation platform designed to help businesses to attract, nurture, convert, and retain customers. The company's Employee Experience products include Freshservice, an IT and enterprise service management platform to AI agents to help employees resolve issues, make requests, and access information through conversational interfaces without requiring direct interaction with the service desk; Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data; Device42 which provides IT discovery and dependency mapping solutions; and FireHydrant, a modern incident management platform that enables engineering and operations teams to manage the full incident lifecycle. In addition, it provides Freshworks platform, an AI-powered, enterprise-grade foundation that unifies customer experience and employee experience product lines. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.

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$9.71
-36.41% 1Y

Market & Price

Market Cap
$2.68B
Current Price
$9.71
High / Low (52W)
$15.95 / $6.88
Beta
0.83

Valuation

Stock P/E
15.92
Industry PE
32.74
Forward P/E
12.09
PEG Ratio
0.48
Book Value
$3.65
Price to Book
2.66
P/S
3.08
EV/EBITDA
56.11
Dividend Yield
-

Profitability & Returns

ROCE
1.23%
ROE
17.32%
ROA
0.62%
Profit Margin
20.69%
Op Margin
-3.52%
EPS (Latest Qtr)
$-0.02
EPS (TTM)
$0.61

Balance Sheet & Liquidity

Debt/Equity
3.81
Quick Ratio
1.75
Current Ratio
1.94
Debt
$38.80M
Total Assets
$1.60B
Current Assets
$1.10B
Working Capital
$599.14M

Ownership

Promoter Holding
7.39%
Chg in Prom Hold
-
FII / Inst Holding
85.48%
Chg in FII Hold
0.01%

Financial Snapshot

Enterprise Value
$1.94B
Total Revenue (TTM)
$871.17M
EBITDA
$34.64M
Free Cash Flow
$263.74M
Operating Cash Flow
$246.79M
Shares Outstanding
252.36M
Gross Margin
84.97%
Payout Ratio
0.00%

Growth (CAGR)

Revenue 5Y
18.98%
Profit 5Y
59.72%
Revenue (YoY)
16.50%
Earnings (YoY)
-

PROS

  • Excellent profit margin of 20.7%.
  • Compounding revenue at 19.0% over 5 years.
  • Profit CAGR of 59.7% over 5 years.
  • Generates positive free cash flow.

CONS

  • Trading 39.1% below its 52-week high.
  • In a downtrend (50-DMA below 200-DMA).

* The pros and cons are auto-generated from financial metrics.

Price Chart

Robinhood TradingView StockAnalysis

Fundamental Growth

Figures from the latest reported periods. CAGR is computed across the displayed window (quarterly CAGR is annualised assuming 4 quarters per year).

Peer comparison

Peer companies in the same sector (Technology).

#NameCMP $P/E Mkt CapDiv Yld % ROCE %ROE % Rev CAGR 5Y %Profit CAGR 5Y %
1 FRSH Freshworks Inc. R2K 9.71 15.92 $2.68B - 1.23% 17.32% 18.98% 59.72%
2 NVDA NVIDIA Corporation NDXSPXAI 211.14 32.38 $5.11T 0.47% 81.14% 114.29% 100.05% 201.80%
3 AAPL Apple Inc. NDXSPX 312.06 37.73 $4.58T 0.35% 68.72% 141.47% 1.81% 3.92%
4 MSFT Microsoft Corporation NDXSPXAI 450.24 26.82 $3.34T 0.81% 26.37% 34.01% 12.42% 11.87%
5 TSM Taiwan Semiconductor Manufacturing Company Limited AI 418.45 35.86 $2.17T 0.91% 32.04% 36.21% 18.94% 19.57%
6 MU Micron Technology, Inc. NDXSPXAI 971.00 45.87 $1.10T 0.06% 14.20% 39.82% 6.71% -0.57%
7 AMD Advanced Micro Devices, Inc. NDXSPXAI 516.10 172.61 $841.55B - 6.33% 8.06% 13.64% 48.64%
8 ORCL Oracle Corporation SPXAI 225.78 40.46 $649.35B 0.89% 13.07% 57.57% 10.59% 22.81%
9 ASML ASML Holding N.V. NDXAI 1,612.76 53.76 $621.59B 0.54% 43.81% 52.24% 15.55% 19.55%
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Quarterly Results

Figures in USD.

Metric Sep 2020Mar 2021Jun 2021Sep 2021Mar 2022Jun 2022Sep 2022Mar 2023Jun 2023Sep 2023Mar 2024Jun 2024Sep 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue 66.19M80.59M88.34M96.61M114.64M121.43M128.76M137.69M145.08M153.55M165.14M174.13M186.57M196.27M204.68M215.12M222.74M228.63M
Cost of Revenue -------------29.88M31.14M32.95M32.17M34.69M
Gross Profit 53.02M63.89M69.64M74.38M92.24M97.39M104.58M112.46M120.22M127.29M139.25M145.96M156.77M166.40M173.54M182.16M190.57M193.94M
Operating Expenses -------------176.41M182.19M189.62M150.84M202.00M
Operating Income 53.00K-1.72M-6.44M-140.25M-47.12M-67.35M-58.29M-48.11M-43.29M-38.73M-32.17M-43.79M-38.86M-10.01M-8.66M-7.46M39.73M-8.06M
EBITDA --------------3.65M-2.38M-853.00K46.35M-197.00K
Interest Expense ------------------
Pretax Income -------------2.55M3.89M-52.00K46.89M-6.63M
Tax Provision -------------3.86M5.63M4.63M-144.56M-1.82M
Net Income 1.39M-2.42M-7.43M-107.42M-49.06M-69.75M-57.84M-42.66M-35.66M-31.03M-23.32M-20.18M-29.96M-1.30M-1.74M-4.68M191.45M-4.81M
Diluted EPS -3.49-0.01-7.79-24.72-0.18-0.24-0.20-0.15-0.12-0.11-0.08-0.07-0.10-0.00-0.01-0.020.67-0.02
R&D Expense 13.25M15.39M18.89M57.09M30.72M34.30M35.87M32.86M34.18M34.88M34.68M40.99M47.88M40.00M39.94M41.46M-49.26M

Profit & Loss (Annual)

Figures in USD.

Metric Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Revenue 172.38M249.66M-498.00M596.43M720.42M838.81M
Cost of Revenue ---95.77M103.37M113.33M126.14M
Gross Profit 135.91M197.17M-402.23M493.06M607.09M712.66M
Operating Expenses ---635.60M663.24M736.04M699.05M
Operating Income -29.67M-56.11M--233.37M-170.17M-128.95M13.61M
EBITDA ----221.87M-158.03M-109.53M39.47M
Interest Expense -------
Pretax Income ----220.79M-123.77M-90.84M53.28M
Tax Provision ---11.34M13.67M4.53M-130.44M
Net Income -31.12M-57.29M--232.13M-137.44M-95.37M183.72M
Diluted EPS -8.21-21.03--0.82-0.47-0.320.63
R&D Expense 38.56M69.21M120.41M135.54M137.76M164.59M163.21M

Compounded Sales Growth

5 Years:18.98%
1 Year:16.50%

Compounded Profit Growth

5 Years:59.72%
1 Year:-

Stock Price Performance

1 Year:-36.41%
6 Months:-21.38%
3 Months:+24.17%
1 Month:+17.70%

Balance Sheet (Annual)

Figures in USD.

Metric Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Total Assets --367.42M-1.38B1.46B1.61B1.60B
Current Assets ----1.28B1.36B1.27B1.10B
Cash & Equivalents -75.00M95.38M-304.08M488.12M620.32M569.77M
Inventory --------
Receivables ----70.47M97.18M122.91M150.82M
Total Liabilities --169.07M-328.40M384.51M473.96M570.06M
Current Liabilities --152.24M-271.69M327.21M407.71M498.03M
Long Term Debt --------
Total Debt ----34.95M29.49M38.29M42.50M
Total Equity -539.20M-1.12B-2.70B-1.05B1.07B1.14B1.03B
Shares Outstanding ----289.09M296.69M303.38M283.43M

Cash Flows (Annual)

Figures in USD.

Metric Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Operating Cash Flow -8.16M32.53M--2.52M86.18M160.65M242.37M
Investing Cash Flow -148.95M-11.43M--284.83M158.50M38.80M206.13M
Financing Cash Flow 150.23M-1.91M--156.35M-60.62M-67.26M-436.66M
Capital Expenditure -11.51M-4.38M--12.24M-8.34M-14.66M-21.49M
Free Cash Flow -19.67M28.15M--14.77M77.84M145.98M220.88M
Net Change in Cash ----443.71M184.06M132.19M11.85M
Share Buybacks ---0013.69M386.31M

Ratios (Annual)

Figures in %.

Metric Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Gross Margin % 78.8%79.0%-80.8%82.7%84.3%85.0%
Operating Margin % -17.2%-22.5%--46.9%-28.5%-17.9%1.6%
Net Margin % -18.1%-22.9%--46.6%-23.0%-13.2%21.9%
ROE % 2.8%2.1%--22.1%-12.8%-8.4%17.8%
ROCE % --26.1%--21.1%-15.1%-10.7%1.2%

Shareholding Pattern

Insiders
7.39%
Institutions
85.48%
Public Float
92.30%

Top Institutional Holders

#Holder% HeldSharesValue
1 Blackrock Inc. 6.74% 17.00M $165.07M
2 Alphabet Inc. 6.42% 16.21M $157.37M
3 Vanguard Portfolio Management LLC 6.16% 15.54M $150.93M
4 Westbridge Capital Management, LLC 5.30% 13.38M $129.91M
5 Vanguard Capital Management LLC 4.09% 10.33M $100.32M
6 Peak XV Partners Operations LLC 3.24% 8.18M $79.46M
7 Alyeska Investment Group, L.p. 2.56% 6.45M $62.64M
8 Topline Capital Management, LLC 2.34% 5.92M $57.46M
9 Geode Capital Management, LLC 2.05% 5.17M $50.20M
10 State Street Corporation 2.00% 5.05M $49.05M

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