FRSH
Freshworks Inc.

Freshworks Inc.FRSH

Technology · Software - Application
12.11USD
-4.65%
Nov 09, 2026
FRSH overview ready
AI-Enabled Customer and Employee Service Software Platform
Freshworks is a direct service-software vendor whose customer-experience and employee/IT-service platforms embed AI agents, copilots and analytics to automate service interactions and workflows.
Primary theme is weakening
Customer Engagement & Marketing is weakening (+3.5pp vs SPY over 21 sessions; 4 of 12 members ahead of SPY).
Price structure is giving way
Longer-term context reads damaged structure, with a near-term setup of pullback recovery.
Attractive valuation
Current market expectations look undemanding relative to the cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Competition from larger enterprise software vendors.
Market Nov 6Filing Sep 30Price action Nov 8Research Oct 20

Conviction Level

PriceAction3.4BusinessPerformance7.0BusinessQuality5.2Valuation8.8ThemeMomentum3.0Improving — Revenue is growing at a steady pace (+14% year over year). Earnings turned positive: diluted EPS of $0.07 against a loss of -$0.02 a year earlier. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+3.5pp
Theme return
−1.4%
Beating SPY
4 of 12
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price structure is giving way
Longer-term context reads damaged structure, with a near-term setup of pullback recovery.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$3.3B
Avg Volume (60D)
6.2M
60 sessions
Revenue Growth YoY
+16.4%
FY2025 vs FY2024
Gross Margin
+85.1%
Trailing twelve months
Operating Margin
+7.1%
Trailing twelve months
Free Cash Flow Yield
+7.4%
Distance from 200DMA
+15.6%
P/E
16.0x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Improving

Revenue is growing at a steady pace (+14% year over year). Earnings turned positive: diluted EPS of $0.07 against a loss of -$0.02 a year earlier.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthGrowing
+14%
$245M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +15%
  2. +17%
  3. +16%
  4. +14%
Earnings growthTurned profitable
$0.07
Diluted EPS $0.07 vs -$0.02 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginExpanding
11.5%
+15.0 pp YoY · gross margin 85.3% (+0.7 pp)

Business Quality

5.2 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

One of the two valuation perspectives says cheap; peers is the dissenting view.
Freshworks Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces. It trades at a 7.4% free-cash-flow yield, which the underlying economics comfortably support.

Company Research

Thesis
Freshworks is a direct service-software vendor whose customer-experience and employee/IT-service platforms embed AI agents, copilots and analytics to automate service interactions and workflows. The story is still emerging, so the exposure is real but early.
Opportunity
Moderate opportunity
Enterprise spending on AI agents, copilots and workflow automation that resolve customer, employee and IT-service requests, reduce manual service effort and shift service software toward outcome-based automation.
Key risk
Competition from larger enterprise software vendors.

Economic classification

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Business & Markets

Technology · Software - Application
What they do

Freshworks Inc. develops and provides software-as-a-service (SaaS) solutions focused on customer experience and employee experience, operating globally across multiple regions.

How it earns

The company generates revenue primarily through subscription-based SaaS offerings.

Products & services
Freshdesk Omni
Freshdesk
Freshchat
Customers & end markets
Enterprises requiring customer service software
Businesses seeking employee and IT service management solutions
Market position

Freshworks is a direct service-software vendor embedding AI agents and automation, positioning it as a challenger in the enterprise service software market.

Demand drivers
Low cyclicality

Demand for customer and employee experience software tends to be stable and driven by ongoing digital transformation rather than economic cycles.