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Freshworks

FRSH on Nasdaq. Freshworks sells AI service software to organizations for employee and customer support. Market value $3.1bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.

Should I look at this?

Not a fit for our list right now

Why it could be worth it

What to watch out for

See Technology stocks that passed both tests

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to June 2026
5.5%fair

For every $100 of what the whole company costs, it produced $5.46 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
117.2×full

You pay 117.2 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to December 2025
-23.0%five-year median

Each dollar kept in the business earns -23 cents a year. Above 10 is good.

Quality score: 56 of 100. Price score: 55 of 100. Our list needs 70 on quality and 60 on price.

$13.76 a share, 103% above its 1-year low

Over the past year the price has ranged from $6.79 to $14.37.

Pays no dividend

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

0.0
-0.0
0.1
0.1
0.2
0.2
2021202220232024202512 monthsto Jun '26
Revenue
$371m$498m$596m$720m$839m
Operating margin
-55.2%-46.9%-28.5%-19.2%1.6%
Debt to equity
0.000.000.000.000.00
Shares outstanding
0.13bn0.28bn0.29bn0.30bn0.29bn

Health checks

  • Free cash flow positive4 of 5 years
  • Accounting looks honest (Beneish)Nothing unusual
  • Financial strength (Piotroski)6 of 8 checks we could run
  • Profit backed by cash (accruals)Yes
  • Debt0.00× equity
  • Revenue growth, five yearsStrong, 22.6% a year
  • Buying back its own sharesNo, 125% more shares since 2021

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $237 million last quarter, up 16% on a year ago.
  • Profit: $3 million, after a loss of $2 million a year ago.
  • It keeps 3 cents of each $1 of sales as operating profit, after losing 10 cents a year earlier.
  • Spare cash over the past 12 months: $221 million, up from $182 million.
  • 7% fewer shares than a year ago. Each share owns a bit more of the company.
  • It has $495 million more cash than debt, up from $486 million a year ago.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$187m
December 2024$195m
March 2025$196m
June 2025$205m
September 2025$215m
December 2025$223m
March 2026$229m
June 2026$237m
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024-$30m
December 2024-$22m
March 2025-$1m
June 2025-$2m
September 2025-$5m
December 2025$191m
March 2026-$5m
June 2026$3m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
26 February 2026
Next quarterly (estimated, 10-Q)
3 November 2026

Who owns it

1 long-term investor we follow owns it, unchanged from 1 last quarter. 342 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

4 investors own more than 5%.

  • Sameer K. Gandhi ("SKG")
    Passive investor
    at least 7.1%−2.1 pts
    (filed with 20 related holders)
    Since 31 March 2025
  • 6.4%
    Since 31 March 2026
  • Peak XV Partners V Ltd.
    Passive investor
    at least 4.0%−0.1 pts
    (filed with 7 related holders)
    Since 20 February 2025
  • at least 2.9%
    (filed with 4 related holders)
    Since 22 July 2025
  • Rathna Girish Mathrubootham
    Passive investor
    Sold down below 5%
    Since 31 December 2024
  • Peak XV GF Management III Ltd.
    Passive investor
    Sold down below 5%
    Since 27 January 2025
    What they said

    Item 4 of the Statement is hereby amended and supplemented by adding the following at the end thereof: On December 9, 2024, the Reporting Persons completed a sale of an aggregate of 75,765 shares of Class A Common Stock at a price per share ranging from $17.0000 to $17.4500 at a…

    Read the filing
  • The Vanguard Group
    Passive investor
    Sold down below 5%
    Since 13 March 2026
  • Accel India IV L.P. ("AIN4")
    Passive investor
    Sold down below 5%
    Since 31 December 2024

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

In the last 12 months, 2 insiders bought $5m of shares on the open market. 4 sold $2m, $1m of it under preset trading plans.

  • Lawrence Philippa
    Chief Accounting Officer
    Sold
    under a preset trading plan
    Date
    5 October 2026
    Shares
    3,492
    Price
    $12.98
    Value
    $45,326
  • Lawrence Philippa
    Chief Accounting Officer
    Sold
    under a preset trading plan
    Date
    2 September 2026
    Shares
    52,767
    Price
    $13.25
    Value
    $699,163
  • Lawrence Philippa
    Chief Accounting Officer
    Sold
    under a preset trading plan
    Date
    6 July 2026
    Shares
    3,470
    Price
    $10.13
    Value
    $35,151
  • Taylor Jennifer H
    Director
    Sold
    under a preset trading plan
    Date
    2 July 2026
    Shares
    6,618
    Price
    $10.44
    Value
    $69,092
  • PADGETT BARRY L.
    Director
    Sold
    under a preset trading plan
    Date
    1 July 2026
    Shares
    6,618
    Price
    $10.49
    Value
    $69,423
  • Lawrence Philippa
    Chief Accounting Officer
    Sold
    Date
    17 June 2026
    Shares
    10,530
    Price
    $9.18
    Value
    $96,665
  • Yamamoto Mika
    Chief Integr Cust Growth Offcr
    Sold
    under a preset trading plan
    Date
    4 March 2026
    Shares
    32,577
    Price
    $8.45
    Value
    $275,276
  • Woodside Dennis
    CEO & President, Director
    Bought
    Date
    2 March 2026
    Shares
    125,000
    Price
    $7.95
    Value
    $993,750
  • Lawrence Philippa
    Chief Accounting Officer
    Sold
    under a preset trading plan
    Date
    6 January 2026
    Shares
    765
    Price
    $11.61
    Value
    $8,882
  • Yamamoto Mika
    CHIEF CUST & MARKETING OFFICER
    Sold
    under a preset trading plan
    Date
    5 December 2025
    Shares
    15,012
    Price
    $13.00
    Value
    $195,156

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 26 Feb 2026, plus the 10-Q filed 4 Aug 2026 and 6 later 8-Ks.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • It isn't cheap on profits: 117.2× operating profit.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.