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FRSH

Freshworks Inc.

FRSH

Freshworks Inc. • NASDAQ
$12.14 ▲ 1.08% (+0.13)
Market Cap $3.60 B
52w High $19.77
52w Low $10.51
Dividend Yield 0%
P/E -110.36
Volume 1.20M
Outstanding Shares 296.29M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $215.118M ▲ $189.62M ▲ $-4.68M ▼ -2.176% ▼ $-0.02 ▼ $4.482M ▲
Q2-2025 $204.678M ▲ $182.192M ▲ $-1.739M ▼ -0.85% ▼ $-0.006 ▼ $-2.375M ▲
Q1-2025 $196.273M ▲ $176.811M ▼ $-1.304M ▲ -0.664% ▲ $-0.004 ▲ $-3.651M ▲
Q4-2024 $194.571M ▲ $188.904M ▼ $-21.9M ▲ -11.256% ▲ $-0.072 ▲ $-7.765M ▲
Q3-2024 $186.575M $195.633M $-29.959M -16.057% $-0.099 $-32.525M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $813.235M ▼ $1.372B ▼ $520.473M ▲ $851.486M ▼
Q2-2025 $926.196M ▼ $1.481B ▼ $496.184M ▲ $984.642M ▼
Q1-2025 $995.321M ▼ $1.541B ▼ $479.35M ▲ $1.062B ▼
Q4-2024 $1.07B ▲ $1.612B ▲ $473.963M ▲ $1.138B ▲
Q3-2024 $1.055B $1.575B $440.158M $1.135B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-4.68M ▼ $63.472M ▲ $45.544M ▲ $-174.052M ▼ $-65.036M ▲ $57.209M ▼
Q2-2025 $0 ▲ $58.591M ▲ $-42.842M ▼ $-124.014M ▲ $-108.276M ▼ $58.211M ▲
Q1-2025 $-1.304M ▲ $57.973M ▲ $46.231M ▼ $-130.273M ▼ $-26.069M ▼ $56.677M ▲
Q4-2024 $-21.9M ▼ $41.362M ▼ $209.148M ▲ $-21.302M ▼ $229.208M ▲ $36.295M ▼
Q3-2024 $0 $42.329M $50.15M $-11.64M $80.839M $41.273M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Professional Services
Professional Services
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Freshworks shows a clear pattern of growing sales each year, with revenue rising steadily since before the IPO. Its core business is high-margin, meaning most of each dollar of sales is left after direct costs. However, the company still spends heavily on operating expenses like product development, sales, and marketing, so it remains loss-making on both operating income and net income. The encouraging sign is that losses have been shrinking over time as the business scales, suggesting the company is moving in the right direction toward break-even. The very large loss per share around the IPO period looks mostly driven by one‑off accounting items and is not representative of ongoing performance.

Balance Sheet

Balance Sheet The balance sheet is a relative strength. Freshworks holds a sizable cash position compared with its small amount of debt, giving it flexibility and a cushion against downturns. Total assets have climbed since the IPO, and shareholder equity is solidly positive after a negative position in the pre‑IPO period. Debt is minimal, so financial risk from leverage appears low. Overall, the company looks well-capitalized for a mid-sized software firm and not under balance-sheet stress, which is important while it is still posting accounting losses.

Cash Flow

Cash Flow Cash generation has improved meaningfully. The business has moved from roughly breakeven cash flow from operations to clearly positive territory, and free cash flow is now consistently positive as well. Capital spending needs are modest, so most operating cash can support growth or strengthen the balance sheet rather than being tied up in hardware or heavy infrastructure. This shift toward self-funding operations reduces reliance on external financing and is a key sign that the underlying business model is maturing, even though the income statement is not yet profitable.

Competitive Edge

Competitive Edge Freshworks competes in a crowded software market but has carved out a distinct niche by serving small and mid-sized customers that find large enterprise tools too complex or expensive. Its main strengths are an integrated platform for customer support, IT service management, and CRM; simpler, more approachable products; and generally more attractive pricing than giants like Salesforce or ServiceNow. A product-led growth approach and free trials help adoption, and as customers add more Freshworks tools and customizations, switching away becomes harder, adding stickiness. The flip side is intense competition from both large platforms and many smaller specialists, so Freshworks must keep innovating and proving value to maintain and grow its share.

Innovation and R&D

Innovation and R&D Innovation is a central part of Freshworks’ strategy. The company’s key differentiator is its Freddy AI platform, which is being woven across its products to automate support, assist human agents, and surface insights for managers. Recent moves into more autonomous “agentic” AI, no‑code tools for building AI agents, and AI copilots for agents show a push to stay at the forefront of applied AI in customer and employee support. Freshworks also emphasizes user experience and low‑code customization, making its tools easier to adopt and adapt. The main execution risk is whether these AI investments translate into sustained customer uptake, pricing power, and measurable productivity gains versus rivals who are also heavily investing in AI.

Summary

Freshworks is a growing software company with strong gross margins, improving but still negative earnings, and a solid financial foundation backed by healthy cash and very low debt. Operationally, it appears to be moving along a typical SaaS maturity path: scaling revenue, tightening losses, and shifting into consistent positive free cash flow. Competitively, it benefits from a clear focus on the mid-market, a unified and user-friendly product suite, and a deepening AI layer through Freddy that could enhance its value proposition. At the same time, it faces stiff competition and must continue proving that its AI-led roadmap can drive durable growth and eventual profitability. Taken together, the story is one of a financially secure, innovation-heavy software platform that is transitioning from growth-at-all-costs toward a more balanced, cash-generative model, but still has to fully demonstrate long-term earnings power in a very competitive landscape.

NEWS

November 5, 2025 · 4:11 PM UTC

Freshworks Expands Enterprise Service Management to Power All Business Functions

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November 5, 2025 · 4:10 PM UTC

Freshworks Reports Third Quarter 2025 Results

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October 8, 2025 · 8:00 AM UTC

Freshworks to Announce Third Quarter 2025 Financial Results on November 5, 2025

Read more