Freshworks Inc. (FRSH) AI Stock Analysis

Freshworks Inc. is a software-as-a-service provider founded in 2010 and headquartered in San Mateo, California. Originally named Freshdesk Inc. before rebranding in June 2017, the company delivers a suite of SaaS products designed for customer engagement, support ticketing, customer relationship management, and IT service management. Its primary products include Freshdesk, which provides customer support and multichannel ticket management, and Freshservice, which offers IT service desk and asset management solutions. The company serves businesses across multiple industries worldwide.

Freshworks delivered a 5-year revenue compound annual growth rate of 27.4% from FY2020 to FY2025. Annual revenue expanded from $371.0M in FY2021 to $838.8M in FY2025, supported by gross margins expanding from 79.0% to 85.0%. Operating margin improved from -55.2% in FY2021 to 1.6% in FY2025. After net losses of -$192.0M in FY2021 and -$95.4M in FY2024, the business achieved profitability in FY2025 with net income of $183.7M and diluted EPS of $0.49. In the latest quarter ended June 30, 2026, revenue increased 16.0% year-over-year, bringing trailing twelve-month revenue to $903.9M with a profit margin of 20.5% and operating margin of 5.5%.

As of June 30, 2026, Freshworks held $664.1M in cash and short-term investments against total debt of $25.6M, resulting in net cash of $638.5M. The company maintains a current ratio of 1.69 and a debt-to-equity ratio of 0.03 across $895.9M in shareholders' equity. In FY2025, operating cash flow reached $250.9M and free cash flow stood at $245.2M. Capital expenditures were modest at $5.7M, while share buybacks totaled $386.3M.

At a share price of $13.74, Freshworks has a market capitalization of $3.59B and an enterprise value of $2.73B. It trades at a trailing P/E of 21.8x and a forward P/E of 15.7x, both below the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its price-to-sales ratio is 4.0x, above the peer median of 2.8x, while its EV/EBITDA is 40.9x compared to the peer median of 16.6x. Over the past year, FRSH returned 26.1%, outperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of -66.9% lagged the benchmark return of 83.0%.

Freshworks has a consensus analyst breakdown of 7 Strong Buy, 2 Buy, and 8 Hold ratings, with 0 Sell or Strong Sell ratings. The mean price target is $14.79, representing a 7.6% premium over the last close of $13.74. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $965.0M and EPS of $0.67. For the following fiscal year, 17 analysts forecast revenue of $1.10B and EPS of $0.83. The company beat EPS estimates in 3 of the last 4 quarters, with its next earnings report scheduled for November 3, 2026.

This page is an AI-written research summary of Freshworks Inc. (FRSH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: FRSH income statement, FRSH balance sheet, FRSH key metrics, FRSH analyst forecast, FRSH chart. See the FRSH stock overview for the latest quote and news.