# Freshworks Inc. (FRSH)

> Source: Nexqual · https://nexqual.com/FRSH · data as of 2026-10-28 20:00 UTC · cite as "Nexqual, Freshworks Inc. (FRSH), nexqual.com/FRSH" · informational, not investment advice.

**Price:** USD 15.38 (+3.22% on the day) · last close of Oct 28, 2026; US market pre market, not a live price. Prev close 14.9 · day 14.63–15.39 · 52w 6.79–15.51 · market cap $4.01B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $904M, net income $185M (20.5% margin), free cash flow $234M (SEC filings).
- Valuation: P/E 21.7x (avg 19.6x at the last 1 fiscal year-ends).
- Earnings quality: non-operating income $20.2M vs operating income $30.3M over the last four quarters; P/E excluding non-operating income ≈24.3x (estimate: non-operating income taxed at the company's 0% effective rate).
- Insider open-market sales, last ~7 months: 6 Form 4 filings, $1.0M; 0 not under a Rule 10b5-1 plan ($0K); 0 by opportunistic insiders, 2 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 2.35 on a 1–5 scale) (17 analysts), mean target USD 14.79 (range 10–25).
- Total return with dividends: 1Y +40.5% vs S&P 500 +13.6%; 5Y -69.4% vs S&P 500 +79.8%.
- Next earnings: 2026-11-03, EPS estimate USD 0.18, revenue estimate $245M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $371M | $498M | $596M | $720M | $839M | $904M |
| Gross profit | $293M | $402M | $493M | $607M | $713M | — |
| Operating income | -$205M | -$233M | -$170M | -$139M | $13.2M | $30.3M |
| Net income | -$192M | -$232M | -$137M | -$95.4M | $184M | $185M |
| EPS (diluted) | -$21.73 | -$0.82 | -$0.47 | -$0.32 | $0.63 | — |
| Free cash flow | $5.9M | -$9.7M | $84.1M | $151M | $237M | $234M |
| Gross margin | 79.0% | 80.8% | 82.7% | 84.3% | 85.0% | — |
| Operating margin | -55.2% | -46.9% | -28.5% | -19.2% | 1.6% | 3.3% |
| Net margin | -51.7% | -46.6% | -23.0% | -13.2% | 21.9% | 20.5% |
| Revenue growth | +48.6% | +34.2% | +19.8% | +20.8% | +16.4% | — |
| Cash + short-term investments | $1.32B | $1.15B | $1.19B | $1.07B | $781M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 21.7x · P/E ex non-operating (est.) ≈24.3x · P/S 4.4x · P/FCF 17.2x · P/B 4.5x · FCF yield 5.82% · Earnings yield 4.61% · Buyback yield (TTM) 9.13%
P/E at fiscal year-ends: Dec 2025 19.6x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
6 of 6 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-10-05 | Lawrence Philippa | Chief Accounting Officer | 3,492 | $45K | 0.9% | Yes (adopted March 18, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-09-02 | Lawrence Philippa | Chief Accounting Officer | 52,767 | $699K | 11.9% | Yes (adopted March 18, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-07-06 | Lawrence Philippa | Chief Accounting Officer | 3,470 | $35K | 0.8% | Yes (adopted March 18, 2026) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-07-02 | Taylor Jennifer H | Director | 6,618 | $69K | 9.6% | Yes (adopted March 20, 2026) | Routine (sold in Jan & Feb & Mar & Apr & May & Jun & Aug & Sep each year 2023–2025; this trade is outside those months) |
| 2026-07-01 | Padgett Barry L. | Director | 6,618 | $69K | 12.3% | Yes (adopted September 18, 2025) | Routine (sold in Feb & Mar & May & Jul & Aug each year 2023–2025) |
| 2026-06-17 | Lawrence Philippa | Chief Accounting Officer | 10,530 | $97K | 2.2% | Yes (adopted March 18, 2026) | Too little history (no open-market trades in 2023 or 2024) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 2.35 on a 1–5 scale), 17 analysts; mean target USD 14.79 (low 10, high 25).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-28 | Wells Fargo | Target raised | Equal-Weight | $10 → $15 |
| 2026-09-14 | Keybanc | Initiated | Overweight | $18 |
| 2026-08-05 | UBS | Target raised | Buy | $11 → $14 |
| 2026-08-05 | Cantor Fitzgerald | Target raised | Overweight | $12 → $15 |
| 2026-08-05 | Piper Sandler | Target raised | Neutral | $10 → $12 |
| 2026-07-23 | Guggenheim | Initiated | Buy | $25 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-29) | 5Y (from 2021-10-25) |
|---|---|---|
| Total return | +40.5% | -69.4% |
| S&P 500 (SPY) | +13.6% | +79.8% |
| Per year | +40.6% | -21.1% |
| Volatility (annualized) | 50.4% | 55.1% |
| Max drawdown | -48.8% (Dec 2025→Feb 2026) | -85.6% (Oct 2021→Feb 2026) |

## Peers (Software - Application)
RNG (Ringcentral, Inc.) USD 86.2 +0.70% · CVLT (Commvault Systems, Inc.) USD 166.46 -3.53% · TTAN (ServiceTitan, Inc.) USD 80.86 -0.93% · DSGX (The Descartes Systems Group Inc) USD 92.36 +0.20% · IDCC (InterDigital, Inc.) USD 320.56 -2.51% · YMM (Full Truck Alliance Co. Ltd.) USD 8.08 -4.04%

## More
Full page: https://nexqual.com/FRSH · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in FRSH's own 10-K filed 2026-02-26 (https://www.sec.gov/Archives/edgar/data/1544522/000154452226000036/frsh-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Supplier | Alphabet (Google) (GOOGL) | "We rely on third parties maintaining open digital marketplaces, including the Apple App Store and Google Play, which make our mobile applications for certain of our products available for download." |
| Supplier | Apple (AAPL) | "We rely on third parties maintaining open digital marketplaces, including the Apple App Store and Google Play, which make our mobile applications for certain of our products available for download." |
| Customer | D42 Parent | "We expect to derive value from the combination of D42 Parent, Inc.'s existing customer base, IT asset management technology, and trademarks, as well as through other synergies." |
| Partner | Amazon (AMZN) | "We primarily rely upon third-party cloud infrastructure partner, Amazon Web Services (AWS), to serve customers and operate certain aspects of its services." |
| Competitor | ServiceNow (NOW) | "For our employee experience products, we face competition from traditional IT service management vendors such as ServiceNow, BMC, and Ivanti, as well as modern cloud-based providers, including Atlassian and various mid-m…" |
| Competitor | Salesforce (CRM) | "For our customer experience products, we primarily face competition from customer service suites such as Salesforce, Zendesk, Intercom, and legacy vendors, such as Oracle and SAP, and from customer relationship managemen…" |
| Competitor | Oracle (ORCL) | "For our customer experience products, we primarily face competition from customer service suites such as Salesforce, Zendesk, Intercom, and legacy vendors, such as Oracle and SAP, and from customer relationship managemen…" |
| Competitor | SAP (SAP) | "For our customer experience products, we primarily face competition from customer service suites such as Salesforce, Zendesk, Intercom, and legacy vendors, such as Oracle and SAP, and from customer relationship managemen…" |
| Competitor | Microsoft (MSFT) | "For our customer experience products, we primarily face competition from customer service suites such as Salesforce, Zendesk, Intercom, and legacy vendors, such as Oracle and SAP, and from customer relationship managemen…" |

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.18 | $0.18 | +1.0% | $245.1M | 17 |
| Next quarter (ends 2026-12-31) | $0.21 | $0.20 | +2.5% | $253.9M | 17 |
| Current fiscal year (ends 2026-12-31) | $0.67 | $0.62 | +7.2% | $965.0M | 17 |
| Next fiscal year (ends 2027-12-31) | $0.83 | $0.80 | +4.1% | $1.10B | 17 |

## Earnings history and stock reaction
| Results filed | Quarter | EPS | Consensus | Surprise | Stock reaction |
|---|---|---|---|---|---|
| — | Quarter ended Jun 30, 2026 | $0.17 | $0.13 | Beat +30.8% | — |
| — | Quarter ended Mar 31, 2026 | $0.11 | $0.11 | In line | — |
| — | Quarter ended Dec 31, 2025 | $0.14 | $0.11 | Beat +27.3% | — |
| — | Quarter ended Sep 30, 2025 | $0.16 | $0.13 | Beat +23.1% | — |
EPS as reported against the analyst consensus before the release; surprise uses the cent-rounded figures shown (in dollars when EPS and consensus have opposite signs). Stock reaction = close before the results to close after (the first close following a release after the bell or before the open).

## Recent SEC filings (last 120 days)
| Filed | Form | What it says | Filing |
|---|---|---|---|
| 2026-08-04 | 10-Q | Quarterly report · period ended Jun 30, 2026 | https://www.sec.gov/Archives/edgar/data/1544522/000154452226000137/0001544522-26-000137-index.htm |
| 2026-08-04 | 8-K | Quarterly results; Exit or restructuring costs (layoffs, closures) — “In May 2026, the Company announced a restructuring plan (the Plan) to streamline the Company's organizational efforts and product development process, as well as increase leverage of AI and automation across the business. During the three and six months ended June 30, 2026, we recognized $7.0 million in restructuring charges primarily associated with employee severance and benefit costs, in our condensed consolidated statements of operations. During the three and six months ended June 30, 2026, we paid $5.6…” | https://www.sec.gov/Archives/edgar/data/1544522/000154452226000135/0001544522-26-000135-index.htm |
| 2026-07-28 | 8-K | Other material event — “On July 28, 2026, Freshworks Inc. (the "Company") announced that Ryan Manning has been appointed as the Company's Chief Product and Technology Officer, effective as of August 10, 2026. In this role, Mr. Manning will oversee the Company's global product and engineering functions.” | https://www.sec.gov/Archives/edgar/data/1544522/000154452226000125/0001544522-26-000125-index.htm |
Source: SEC EDGAR. Quotes are the opening words of each item as filed.