A Business at a Glance
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Freshworks Inc.
FRSH
$3.0B
Mkt Cap
$10.27
+5.12%
Freshworks Inc. (FRSH) has a current P/E ratio of 16.3, compared to its historical median P/E of 19.7. The stock is currently considered Cheap based on its historical valuation range.
Freshworks Inc. (FRSH) has a 5-year average return on invested capital (ROIC) of -9.4%. This is below average and may indicate limited pricing power.
Freshworks Inc. (FRSH) has a market capitalization of $2.9B. It is classified as a mid-cap stock.
Freshworks Inc. (FRSH) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 11.03%.
Based on historical P/E analysis, Freshworks Inc. (FRSH) appears cheap. The current P/E of 16.3 is 17% below its historical median of 19.7.
Freshworks Inc. (FRSH) operates in the Services-Prepackaged Software industry, within the Technology sector.
Freshworks Inc. (FRSH) reported annual revenue of $839 million in its most recent fiscal year, based on SEC EDGAR filings.
We provide people-first AI service software that organizations use to deliver exceptional employee and customer experiences. Our employee experience (EX) products include Freshservice, Freshservice for Business Teams, Device42 and FireHydrant. Our customer experience (CX) products include our Freshdesk suite of products. Our AI offerings, which include Freddy AI Agents, Freddy AI Copilot and Freddy AI Insights, further enhance the employee and customer experience and are designed to boost productivity. Currently, nearly 75,000 companies use Freshworks' uncomplicated solutions to increase employee efficiency and customer loyalty. Our enterprise-grade solutions are powerful, yet easy to use, and quick to deliver results. Our people-first approach to AI is designed to eliminate friction, making employees more effective and organizations more productive. Businesses from approximately 170 countries around the world use Freshworks products to delight their customers and employees every day.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 871M | 839M | 720M | 596M | 498M | - |
| Net Income | 180M | 184M | -95M | -137M | -232M | -2.8B |
| EPS | $0.61 | $0.63 | $-0.32 | $-0.47 | $-0.82 | $-21.73 |
| Free Cash Flow | 238M | 237M | 151M | 84M | -9.7M | 5.9M |
| ROIC | 17.7% | 16.9% | -8.6% | -12.9% | -20.3% | -22.1% |
| Gross Margin | 85.0% | 45.7% | 38.0% | 32.5% | 16.7% | - |
| Debt/Equity | 0.00 | 0.04 | 0.03 | 0.03 | 0.03 | 0.20 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 16M | 13M | -139M | -170M | -233M | -205M |
| Operating Margin | 1.8% | 1.6% | -19.2% | -28.5% | -46.9% | - |
| ROE | 17.7% | 16.9% | -8.6% | -12.9% | -20.3% | 389.2% |
| Shares Outstanding | 283M | 292M | 298M | 292M | 283M | 131M |
| Metric | ||||||||
|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||
| Revenue | N/A | N/A | N/A | 498M | 596M | 720M | 839M | 871M |
| Gross Margin | N/A | N/A | N/A | 16.7% | 32.5% | 38.0% | 45.7% | 85.0% |
| R&D | 39M | 69M | 120M | 136M | 138M | 165M | 163M | 172M |
| SG&A | 16M | 51M | 117M | 157M | 168M | 181M | 141M | 134M |
| EBIT | N/A | N/A | -205M | -233M | -170M | -139M | 13M | 16M |
| Op. Margin | N/A | N/A | N/A | -46.9% | -28.5% | -19.2% | 1.6% | 1.8% |
| Net Income | -625M | -1.6B | -2.8B | -232M | -137M | -95M | 184M | 180M |
| Net Margin | N/A | N/A | N/A | -46.6% | -23.0% | -13.2% | 21.9% | 20.7% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 9.7M | 405K | 0 |
| Returns on Capital | ||||||||
| ROIC | N/A | N/A | -22.1% | -20.3% | -12.9% | -8.6% | 16.9% | 17.7% |
| ROE | 75.2% | 84.7% | 389.2% | -20.3% | -12.9% | -8.6% | 16.9% | 17.7% |
| ROA | -44609.6% | -877.3% | -306.8% | -16.2% | -9.7% | -6.2% | 11.4% | 11.2% |
| Cash Flow | ||||||||
| Op. Cash Flow | -8.2M | 33M | 11M | -2.5M | 86M | 161M | 242M | 247M |
| Free Cash Flow | -20M | 28M | 5.9M | -9.7M | 84M | 151M | 237M | 238M |
| Owner Earnings | -15M | -22M | -175M | -222M | -137M | -75M | 70M | 80M |
| CapEx | 12M | 4.4M | 5.6M | 7.1M | 2.1M | 9.2M | 5.7M | 8.3M |
| Maint. CapEx | 6.3M | 11M | 13M | 12M | 12M | 19M | 26M | 27M |
| Growth CapEx | 5.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 6.3M | 11M | 13M | 12M | 12M | 19M | 26M | 27M |
| CapEx/OCF | N/A | N/A | 48.6% | N/A | 2.4% | 5.7% | 2.4% | 3.4% |
| Capital Allocation | ||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 14M | 386M | 321M |
| Buyback Yield | 0.0% | N/A | N/A | N/A | N/A | 0.3% | 10.7% | 11.0% |
| Stock-Based Comp | 273K | 43M | 173M | 208M | 211M | 217M | 147M | 139M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | ||||||||
| Net Debt | N/A | N/A | N/A | -1.1B | -1.2B | -1.0B | -739M | -779M |
| Cash & Equiv. | 75M | 95M | 748M | 304M | 488M | 620M | 570M | 779M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | -1.00 | -0.06 | 0.20 | 0.03 | 0.03 | 0.03 | 0.04 | 0.00 |
| Interest Coverage | 0.0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Equity | -1.1B | -2.7B | 1.2B | 1.1B | 1.1B | 1.1B | 1.0B | 1.0B |
| Total Assets | 1.4M | 367M | 1.5B | 1.4B | 1.5B | 1.6B | 1.6B | 1.6B |
| Total Liabilities | 1.1B | 169M | 245M | 328M | 385M | 474M | 570M | 586M |
| Intangibles | N/A | 6.2M | 1.9M | 303K | 0 | 91M | 77M | 97M |
| Retained Earnings | N/A | -2.7B | -3.3B | -3.5B | -3.6B | -3.7B | -3.6B | -3.6B |
| Working Capital | N/A | 160M | 1.2B | 1.0B | 1.0B | 858M | 599M | 487M |
| Current Assets | N/A | 312M | 1.4B | 1.3B | 1.4B | 1.3B | 1.1B | 1.0B |
| Current Liabilities | N/A | 152M | 223M | 272M | 327M | 408M | 498M | 520M |
| Per Share Data | ||||||||
| EPS | -8.21 | -21.03 | -21.73 | -0.82 | -0.47 | -0.32 | 0.63 | 0.61 |
| Owner EPS | -0.19 | -0.28 | -1.34 | -0.78 | -0.47 | -0.25 | 0.24 | 0.28 |
| Book Value | -14.76 | -35.05 | 9.48 | 3.72 | 3.67 | 3.82 | 3.54 | 3.60 |
| Cash Flow/Share | -0.11 | 0.42 | 0.09 | -0.01 | 0.29 | 0.54 | 0.83 | 0.73 |
| Dividends/Share | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 76.1M | 76.9M | 130.6M | 283.1M | 292.4M | 298.0M | 291.6M | 283.3M |
| Valuation | ||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | 19.7 | 16.8 |
| P/FCF | N/A | N/A | 555.1 | N/A | 83.4 | 31.4 | 15.3 | 12.2 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 136.9 |
| Price/Book | N/A | N/A | 5.9 | 3.7 | 6.5 | 4.2 | 3.5 | 2.9 |
| Price/Sales | N/A | N/A | N/A | 9.2 | 8.5 | 6.4 | 4.9 | 3.3 |
| FCF Yield | N/A | N/A | 0.1% | -0.2% | 1.2% | 3.2% | 6.5% | 8.2% |
| Market Cap | 0 | N/A | 7.3B | 3.9B | 7.0B | 4.8B | 3.6B | 2.9B |
| Avg. Price | 0.00 | N/A | 37.62 | 16.12 | 17.42 | 15.43 | 14.10 | 10.27 |
| Year-End Price | 0.00 | N/A | 25.05 | 13.76 | 24.00 | 15.94 | 12.40 | 10.27 |
Freshworks Inc. passes 6 of 9 quality checks, suggesting mixed fundamentals.
Freshworks Inc. trades at 16.3x trailing earnings, compared to its 15-year median P/E of 19.7x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 10.8x vs a median of 31.4x. The company's 5-year average gross margin is 33.2%. Total shareholder yield (buybacks) is 11.0%. At current prices, the estimated annualized return to fair value is +194.0%.
Freshworks Inc. (FRSH) has a net profit margin of 21.9%. This is a strong margin indicating high profitability.
Freshworks Inc. (FRSH) generated $237 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Freshworks Inc. (FRSH) has a debt-to-equity ratio of 0.04. This indicates a conservatively financed balance sheet.
Freshworks Inc. (FRSH) reported earnings per share (EPS) of $0.63 in its most recent fiscal year.
Freshworks Inc. (FRSH) has a return on equity (ROE) of 16.9%. This indicates the company generates strong returns for shareholders.
Freshworks Inc. (FRSH) has a 5-year average gross margin of 33.2%. This indicates decent pricing power.
The Ledger Terminal provides 7 years of financial data for Freshworks Inc. (FRSH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Freshworks Inc. (FRSH) has a book value per share of $3.54, based on its most recent annual SEC filing.