Freshworks Inc.
Rank #86Capital ReturnFRSH · Nasdaq · Technology
Freshworks Inc. (FRSH) — Rank #86 by gross profitability (GP/assets 0.48) · ROE 20.5% · Piotroski F-Score 7 / 9.
As-of 2026-09-15 · CIK 0001544522 · all metrics point-in-time as of the filing date.
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.
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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.
- Industry
- Software - Application
- Sector
- Technology
- State
- DE
- Filer Category
- Large accelerated filer
- Fiscal Year End
- December 31
- Website
- freshworks.com
Price History
Company Snapshot
P/E and reverse DCF are the primary valuation lenses at this stage.
Market Cap
$3.33B
P/E (annual)
20.3
P/S (annual)
4.0
P/B
3.7
P/OCF (annual)
13.8
Shareholder Yield
2.4%
Employees
4,500
Industry
Software - Application
Exchange
Nasdaq
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
2/2 passTerry Smith quality gate
Passes 2/5 Terry Smith thresholds1 of 5 threshold not computable from filed data.
What Growth Is Priced In
Implied revenue growth (10Y)
4.5%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Buyback tailwind: -2.4% — per-share value needs a total required return of 2.2% once share-count change is priced in.
vs. own 6-year median revenue growth: 27.5%
within its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
0.4%
r = 10% (base)
4.5%
r = 12%
8.1%
Net debt / market cap: -17.7%
Note: current FCF margin is 1.6σ above its historical mean — implied growth may understate valuation risk if the margin reverts.
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
Earnings bubble check
Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.
FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.
Profitability
Gross profitability (GP / assets)
0.48
Primary signal (Novy-Marx).
70th pctl of 38 SIC 7372 peers
Return on equity
20.5%
Gross margin
85.0%
97th pctl of 38 SIC 7372 peers
Revenue growth (YoY)
16.4%
RPO growth (YoY)
22.7%
Remaining performance obligations growth — RPO > revenue = forward demand building.
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
19.0%
Revenue CAGR (5Y)
27.4%
Earnings CAGR (3Y)
—
FCF CAGR (3Y)
—
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.66
53rd pctl of 33 SIC 7372 peers (best = lowest)
Current ratio
1.69×
41st pctl of 38 SIC 7372 peers
Quick ratio
1.51×
Net cash
$664.11M
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$236.67M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
0.29
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
17.5%
Stock-based comp intensity.
Piotroski F-Score
F-Score
7 / 9
Fundamental-strength score (0-9).