Freshworks

FRSH · Nasdaq · Information Technology · Financials, fiscal 2019 to 2025

FRSH · Last close · November 6, 2026

$12.11

Freshworks' revenue rose 16.4% to $839 million in fiscal 2025. Its operating margin was 1.6%, up from −19.2% a year earlier. Free cash flow was $237 million, up 56.2%. It paid out $386 million in dividends and buybacks, 163% of free cash flow. The diluted share count fell 2.4%.

Freshworks Inc. Latest fiscal year ended December 31, 2025 10-K filed February 26, 2026 · 0001544522-26-000036 Updated November 6, 2026

Revenue

$839M

16.4%

Operating margin

1.6%

20.8 pts

Net income

$184M

Free cash flow

$237M

56.2%

Return on equity

16.9%

25.6 pts

Market cap

$3.2B

Nov 6 close

P/E

16.8x

On $0.72 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Freshworks does

Freshworks sells software that helps organizations serve their employees and customers. Its employee experience products include Freshservice, Device42 and FireHydrant, and its customer experience products include the Freshdesk suite. It also sells AI tools called Freddy AI Agents, Freddy AI Copilot and Freddy AI Insights, which it says are meant to boost productivity.

Freshworks says nearly 75,000 companies in about 170 countries use its products. It sells to businesses of all sizes, and as of December 31, 2025, over 60% of its annual recurring revenue came from customers with more than 250 employees. Its total revenue was $838.8 million in 2025.

It sells subscriptions, lets customers try the products first, and then works to turn trial users into paying ones and to expand use within and across organizations.

Its biggest risks, as it describes them

A history of losses, even though it recently reported net income, so profit may not last.
Recent growth rates that may not continue.
Fast-changing technology and strong competition.
Sales to large customers that carry risks smaller deals do not.
Failing to win new customers or turn trial users into paying ones.

From Freshworks's annual report on Form 10-K, filed February 26, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	1,324	1,148	1,188	1,070	781
Debt incl. finance leases	—	—	—	—	—
Net debt (negative means net cash)	—	—	—	—	—
Net debt to EBITDA	—	—	—	—	—
Debt to equity	—	—	—	—	—
Interest coverage	—	—	—	—	—
Current ratio	6.4x	4.7x	4.1x	3.1x	2.2x
Quick ratio	6.4x	4.7x	4.1x	3.1x	2.2x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Freshworks' revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Freshworks' projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, 2 insiders bought $5.0 million of Freshworks shares on the open market, and 4 insiders sold $1.5 million, all of it under trading plans set up in advance.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Sep 2, 2026	Philippa LawrenceChief Accounting Officer	Sold plan	52,767	$13.25	$699,163	Form 4
Jul 6, 2026	Philippa LawrenceChief Accounting Officer	Sold plan	3,470	$10.13	$35,151	Form 4
Jul 2, 2026	Jennifer H TaylorDirector	Sold plan	6,618	$10.44	$69,092	Form 4
Jul 1, 2026	Barry L. PadgettDirector	Sold plan	6,618	$10.49	$69,423	Form 4
Jun 17, 2026	Philippa LawrenceChief Accounting Officer	Sold plan	10,530	$9.18	$96,665	Form 4
Mar 4, 2026	Mika YamamotoChief Integr Cust Growth Offcr	Sold plan	32,577	$8.45	$275,276	Form 4
Mar 2, 2026	Dennis WoodsideCEO & President, Director	Bought	125,000	$7.95	$993,750	Form 4
Jan 6, 2026	Philippa LawrenceChief Accounting Officer	Sold plan	765	$11.61	$8,882	Form 4
Dec 5, 2025	Mika YamamotoChief Cust & Marketing Officer	Sold plan	15,012	$13.00	$195,156	Form 4
Dec 2, 2025	Philippa LawrenceChief Accounting Officer	Sold plan	5,846	$12.06	$70,503	Form 4
Nov 17, 2025	Philippa LawrenceChief Accounting Officer	Sold plan	644	$12.05	$7,760	Form 4
Nov 11, 2025	Tyler SloatChief Financial & Oper Officer	Bought	171,615	$11.62	$2.0 million	Form 4

The latest 12 of 13 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	—	—	—
Rule of 40	33.9%	41.8%	44.6%
Altman Z''	−1.37	−2.12	−2.82
Accruals ratio	−15.8%	−16.7%	−3.6%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Fail	Fail	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	—	—	—
Current ratio rose	Fail	Fail	Fail
Share count didn't rise	Fail	Fail	Pass
Gross margin rose	Pass	Pass	Pass
Revenue rose relative to assets	Pass	Pass	Pass
F-score	—	—	—

Companies that report no gross profit are scored on the other eight.

Compare

Put Freshworks side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Freshworks	FY25	16.4%	1.6%	28.2%	—	—	—
Sprinklr	FY26	7.6%	4.7%	18.4%	4.5%	−2.8x	5	Compare
Rapid7	FY25	1.9%	1.4%	17.0%	1.8%	7.3x	6	Compare
LiveRamp	FY26	9.0%	10.3%	20.5%	15.0%	−4.0x	6	Compare
Workiva	FY25	19.8%	−4.8%	15.6%	—	—	6	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

7 years of figures

Fiscal year	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	172	250	371	498	596	720	839
Revenue growth	—	44.8%	48.6%	34.2%	19.8%	20.8%	16.4%
Gross profit	136	197	293	402	493	607	713
Research and development	39	69	120	136	138	165	163
Operating income	−30	−56	−205	−233	−170	−139	13
Net income	−31	−57	−192	−232	−137	−95	184
Diluted EPS (US$)	−8.21	−21.03	−21.73	−0.82	−0.47	−0.32	0.63
Diluted shares (millions)	76	77	131	285	293	301	294
Cash flow
Cash from operations	−8	32	12	−2	86	161	242
Capital expenditure	12	4	6	7	2	9	6
Free cash flow	−20	28	6	−10	84	151	237
Dividends paid	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	14	386
Acquisitions	6	5	0	0	0	214	0
Stock-based compensation	0	43	173	208	211	217	147
Balance sheet at fiscal year end
Cash and short-term investments	75	238	1,324	1,148	1,188	1,070	781
Debt incl. finance leases	—	—	—	—	—	—	—
Total assets	—	367	1,483	1,380	1,457	1,612	1,603
Total liabilities	—	169	245	328	384	474	570
Shareholders' equity	−1,123	−2,697	1,238	1,052	1,072	1,138	1,033
Margins and ratios
Gross margin	78.8%	79.0%	79.0%	80.8%	82.7%	84.3%	85.0%
Operating margin	−17.2%	−22.5%	−55.2%	−46.9%	−28.5%	−19.2%	1.6%
Net margin	−18.1%	−22.9%	−51.8%	−46.6%	−23.0%	−13.2%	21.9%
Free cash flow margin	−11.4%	11.3%	1.6%	−1.9%	14.1%	21.0%	28.2%
Rule of 40 (growth + FCF margin)	—	56.1%	50.2%	32.3%	33.9%	41.8%	44.6%
Return on capital	—	—	—	—	—	—	—
Return on equity	—	—	—	−20.3%	−12.9%	−8.6%	16.9%
Return on assets	—	—	−20.8%	−16.2%	−9.7%	−6.2%	11.4%
Net debt to EBITDA	—	—	—	—	—	—	—

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Freshworks' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Freshworks.