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Freshworks Inc.
NASDAQ: FRSH Technology IT 🔎 Screen
🏹 Trader: 🚀 Stage 2 + Near High 📈 Stage 2 🎯 Near 52W High 💎 VCP Breakout | BRS 67 Forming View all →
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$3.5B
Market Cap
19.4
P/E
0.75
PEG
23.8%
ROCE
16.9%
ROE
0.04
D/E
1.6%
OPM
-14.6%
% from 52W High
73
α RS
🔍 FRSH is showing a high-conviction setup because it matches 3 of 39 tracked screener presets, Sector RRG has Technology in the Leading quadrant with the trail still strengthening, and RS Rating is 73. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 3/39 · Technology in Leading quadrant · RS Rating 73
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🌏 Global Investor Returns
Currency-adjusted total returns for FRSH including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
📊 Sector Averages
About

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.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding FRSH
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 4.58M $36.7M 0.06% Mar 2026
Steve Cohen Point72 Asset Management 2.19M $17.6M 0.02% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Freshworks Q1 2026: Revenue $228.6M, EX ARR grows 27%, largest deals ever.
Revenue & Profitability
Total revenue in Q1 2026 was $228.6 million, up 16% year-over-year as reported (14% constant currency). Non-GAAP operating income was $41 million, resulting in an 18% operating margin. Adjusted free cash flow was $55.8 million (24% margin). Non-GAAP net income per share was not specified for the quarter, but full-year 2026 guidance implies $0.61-$0.63. Calculated billings were $235 million, up 16% YoY as reported.
Outlook
Management sees strong demand for its EX platform as mid-market and enterprise customers seek alternatives to expensive and complex legacy systems. The company is not experiencing AI anxiety slowing deals; rather, AI is a key driver of new business. The CX market is more fragmented and the company is focusing on profitable growth within its ideal customer profile. Overall, management is confident in durable growth and expanding profitability.
Growth Drivers
Primary growth driver is the EX business, with ARR growing 27% YoY, supported by strong new logo wins and expansion. Key growth levers include moving upmarket (customers with >$100K ARR grew 29% YoY), launching new products (Freshservice ITAM cloud, FireHydrant integration, AI Agent Studio for EX), and increasing AI monetization (Freddy AI Copilot customer growth >80% YoY). The company also expects EX ARR to be over 60% of total ARR by year-end 2026. CX growth is slower (low single digits expected for 2026) but improving unit economics.
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Q1 2026 non-GAAP gross margin was 86.3%, consistent with prior quarters. Non-GAAP operating margin reached 18%, nearly 3 points above estimate, driven by strong top-line performance and efficiency gains. Full-year 2026 non-GAAP operating income guidance is $207-$215 million. Adjusted free cash flow margin expected to be 27.5% for full year 2026. The company is structurally shifting towards GAAP profitability and strategic efficiency gains.
Key Risks
Risks flagged by management and in forward-looking statements include sustaining growth, innovation, reaching long-term revenue goals, meeting customer demand, and controlling costs. Additionally, macroeconomic uncertainties and market volatility could affect results. The CX business is being guided cautiously (low single-digit growth) due to ongoing re-platforming and customer migration. Device42 legacy customer churn continues to be a headwind to net dollar retention.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-04
Q2 delivered strong revenue growth and early GAAP profitability, driven by robust EX momentum and successful AI monetization. Upmarket traction continues, with large deals and platform expansion fueling confidence in mid-20s% EX growth for 2026.
Q1 2026 Q1 2026 2026-05-05
Q1 2026 saw 16% revenue growth, strong EX momentum, and record large deals, with AI adoption accelerating and profitability exceeding expectations. Guidance for 2026 was raised, with adjusted free cash flow per share expected to grow 24% year-over-year.
Q4 2025 Q4 2025 2026-02-10
Achieved first full-year GAAP profitability and record free cash flow in 2025, with strong growth in Employee Experience and AI segments. 2026 guidance calls for 13.5–14.5% revenue growth, rising margins, and continued upmarket momentum, especially in mid-market and enterprise.
Q3 2025 Q3 2025 2025-11-05
Q3 revenue rose 15% year-over-year to $215.1 million, with strong growth in both EX and CX segments and robust AI-driven expansion. Non-GAAP operating margin reached 21%, and adjusted free cash flow margin was 27%. Full-year guidance was raised, and a $400 million share repurchase was completed.
Q2 2025 Q2 2025 2025-07-29
Q2 2025 saw 18% revenue growth, margin expansion, and strong free cash flow, driven by robust EX and CX performance, rapid AI adoption, and a growing partner ecosystem. Guidance calls for continued double-digit growth and increased investment in H2 2025.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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