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what it is
Freshworks sells software that helps companies handle customers, IT requests, and employee workflows.
how it gets paid
Last year Freshworks made $839M in revenue. Customer Experience was the main engine at $360M, or 43% of sales.
why it's growing
Revenue grew 16.4% last year. Revenue was up 186% vs. prior year, and gross margin held at 84.7%.
what just happened
Freshworks posted $616M in revenue and a -$0.03 EPS.
At a glance
B+ balance sheet — decent shape, but not bulletproof
1.0x trailing p/e — the market's not buying it — or you found a deal
-$0.32 fy2024 eps est
$720M fy2024 rev est
1.6% operating margin
xvary composite: 49/100 — below average
What they do
Freshworks sells software that helps companies handle customers, IT requests, and employee workflows.
Freshworks sells software as a service, or rented software. That means your support desk and IT workflows get built around it, and leaving is painful. It serves 170 countries with 4,400 employees, while long-term debt is only $31M, or 1% of capital.
How they make money
$839M
annual revenue · their business grew +16.4% last year
Customer Experience
$360M
IT Service Management
$240M
HR Management
$85M
Platform and other
$154M
The products that matter
it service management
Freshservice
$500M+ arr milestone
Freshservice crossed $500M in annual recurring revenue as of February 2026. That's the clearest evidence the company has a product customers keep renewing.
core growth engine
customer service software
Freshdesk
part of the $796M subscription base
Freshdesk was the original product, but this snapshot does not break out stand-alone revenue. What you do know is that it sits inside a $796M subscription business competing with much larger platforms.
foundational product
crm and sales automation
Freshsales
no separate revenue disclosed here
Freshsales expands the suite, but the current snapshot gives no separate revenue number. That matters because cross-sell stories sound better when you can actually measure them.
suite expansion
Key numbers
-$0.32
fy2024 eps est
$720M
fy2024 rev est
1.0x
trailing p/e
84.7%
gross margin
Gross profit kept about 84.7% of each revenue dollar.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 15 / 100
- long-term debt $31M (1% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for FRSH right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Freshworks posted $616M in revenue and a -$0.03 EPS.
Revenue was up 186% vs. prior year, and gross margin held at 84.7%. That says the product still has pricing power, even while net profit stays negative.
$616M
revenue
-$0.03
eps
84.7%
gross margin
gross margin
84.7% gross margin means the company keeps a lot after direct costs. That gives you room to absorb losses while the business scales.
source: company earnings report, 2026
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What could go wrong
The #1 risk is Freshworks getting out-distributed by larger customer service and ITSM platforms.
med
Salesforce and ServiceNow can spend more
Freshworks competes against companies with larger sales teams, deeper enterprise relationships, and broader product bundles. The snapshot notes Freshworks' market share is still in the single digits.
If customers treat the product as good enough rather than essential, pricing power stays limited and the multiple stays compressed.
med
Stock-based compensation can eat the equity story
Stock-based compensation was about $180M in FY2024, or more than 20% of revenue. The current estimate is 3–4% annual dilution.
A $400M buyback helps only if repurchases outrun dilution. Otherwise you are funding a treadmill.
med
Sales reorganization creates execution risk
Freshworks unified global sales under a new chief revenue officer in March 2026. Reorganizations are supposed to improve focus. They often slow things first.
Near-term deal timing can slip, especially if Q1 and Q2 are already carrying the burden of proving the company can sustain mid-teens growth.
Between single-digit market share, roughly $180M of stock-based compensation, and a live sales reorg, this is a business that needs execution to stay clean. A lot of the valuation case rests on keeping growth around the current 16% subscription pace while dilution gets controlled.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 revenue guide
Management guided to $222M–$225M. If reported revenue lands weak against that range, the market will assume competition is getting louder.
product
Freshservice after the $500M ARR milestone
Crossing $500M ARR is the headline. The next question is whether that engine can keep growing fast enough to matter more to the whole company.
dilution
Buyback pace versus stock compensation
The board approved $400M of repurchases. Watch the actual purchases, not the press release, because SBC was around $180M in FY2024.
sales execution
What the new CRO changes
A March 2026 sales reorg should show up in pipeline quality, deal timing, or both. One clean quarter helps. Two clean quarters would matter more.
Analyst rankings
risk profile
below average
risk rank 4 — more volatile than most — brace for bigger swings.
chart momentum
average
momentum rank 3 — the stock is moving with the broader market, no unusual signal.
source: institutional data
Institutional activity
institutional ownership data for FRSH is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$12
current price
n/a
target midpoint · n/a from current
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