Freshworks (NASDAQ:FRSH) Issues Earnings Results

Freshworks (NASDAQ:FRSH) released its earnings results on Tuesday. The company reported $0.11 EPS for the quarter, hitting analysts’ consensus estimates of $0.11, Briefing.com reports. Freshworks had a net margin of 21.90% and a return on equity of 4.69%. The company had revenue of $228.63 million for the quarter, compared to analysts’ expectations of $223.64 million. During the same quarter last year, the business earned $0.18 EPS. The firm’s revenue was up 16.5% compared to the same quarter last year. Freshworks updated its FY 2026 guidance to 0.610-0.630 EPS and its Q2 2026 guidance to 0.130-0.130 EPS.

Here are the key takeaways from Freshworks’ conference call:

• Q1 beat and strong cash generation: Revenue grew 16% year?over?year to $228.6M, non?GAAP operating margin reached 18%, adjusted free cash flow margin was 24%, and the board authorized a $400M buyback (Q1 repurchases ~$45M).
• EX is driving upmarket traction: EX ARR topped $540M, up 27% year?over?year, and the company closed its two largest-ever deals including its first seven?figure EX ARR contract, with customers >$100K ARR up 29%.
• AI monetization momentum: Freddy AI Copilot customers grew >80% YoY with >65% attach rates on new deals >$30K and EX AI penetration ~20%, while the company completed the FireHydrant acquisition and is launching an MCP gateway to enable/monetize third?party AI agents.
• CX growth is more muted as migrations continue: CX ARR rose 6% YoY and management expects low single?digit CX growth in 2026, though new Freshdesk Omnichannel customers show ~2.5x ARPA versus the prior platform.
• Workforce restructuring announced: ~11% headcount reduction with roughly $8M of one?time restructuring charges (mostly in Q2), which may cause near?term disruption despite targeting longer?term efficiency gains.

Freshworks Price Performance

Shares of FRSH stock traded down $0.35 during mid-day trading on Wednesday, hitting $8.85. The company had a trading volume of 21,206,080 shares, compared to its average volume of 7,175,225. The stock’s 50 day moving average price is $8.14 and its 200-day moving average price is $10.15. Freshworks has a 52-week low of $6.79 and a 52-week high of $16.14. The company has a market capitalization of $2.51 billion, a P/E ratio of 13.82 and a beta of 0.83.

Insiders Place Their Bets

In other Freshworks news, insider Mika Yamamoto sold 32,577 shares of Freshworks stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $8.45, for a total value of $275,275.65. Following the sale, the insider directly owned 1,127,723 shares in the company, valued at approximately $9,529,259.35. The trade was a 2.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 8.54% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in FRSH. Wellington Management Group LLP increased its holdings in shares of Freshworks by 9.2% in the fourth quarter. Wellington Management Group LLP now owns 5,359,784 shares of the company’s stock worth $65,657,000 after purchasing an additional 453,627 shares during the last quarter. Geode Capital Management LLC boosted its stake in Freshworks by 1.9% during the fourth quarter. Geode Capital Management LLC now owns 5,126,112 shares of the company’s stock valued at $62,805,000 after buying an additional 95,720 shares during the last quarter. State Street Corp grew its holdings in Freshworks by 1.2% during the 4th quarter. State Street Corp now owns 4,904,684 shares of the company’s stock valued at $60,082,000 after buying an additional 56,935 shares in the last quarter. Fuller & Thaler Asset Management Inc. increased its stake in Freshworks by 11.2% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 4,748,985 shares of the company’s stock worth $58,175,000 after acquiring an additional 478,473 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in shares of Freshworks by 8.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 3,316,920 shares of the company’s stock worth $39,052,000 after acquiring an additional 260,078 shares in the last quarter. Hedge funds and other institutional investors own 75.58% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have recently commented on FRSH shares. Wells Fargo & Company decreased their price objective on shares of Freshworks from $13.00 to $10.00 and set an “equal weight” rating on the stock in a research report on Wednesday, February 11th. Robert W. Baird set a $10.00 target price on shares of Freshworks in a report on Wednesday, February 11th. Zacks Research lowered Freshworks from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Wall Street Zen raised Freshworks from a “hold” rating to a “buy” rating in a report on Monday, April 6th. Finally, Canaccord Genuity Group set a $14.00 price objective on Freshworks in a research report on Wednesday, February 11th. Six investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Freshworks has a consensus rating of “Hold” and an average target price of $12.45.

Key Freshworks News

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q1 revenue topped estimates and the company highlighted two of the largest deals in its history, including its first $1M+ ARR contract — supporting topline momentum and deal quality. Freshworks Reports First Quarter 2026 Results
• Positive Sentiment: Company raised guidance materially: FY2026 EPS guide (0.61–0.63) and Q2 EPS guide (0.13) were above street consensus, and full?year revenue guidance sits slightly above estimates — a constructive signal for forward profitability. Freshworks Reports First Quarter 2026 Results
• Neutral Sentiment: Earnings were inline with expectations: GAAP/non?GAAP EPS of $0.11 met consensus while revenue of $228.6M beat estimates — steady execution but not a blowout. Transcripts of the call are available for further color on product adoption and margin drivers. Q1 2026 Earnings Call Transcript
• Neutral Sentiment: The company will host a Financial Analyst Session at its Refresh 2026 event (May 14) — an opportunity for management to expand on guidance assumptions and AI strategy, which could influence near?term sentiment. Analyst Session Announcement
• Negative Sentiment: Freshworks announced a workforce reduction of about 11% (~500 roles) as it restructures amid an AI-driven industry shift — a near?term negative catalyst that can spook investors concerned about demand trends or execution risk even if it improves margins longer term. Reuters: Freshworks to cut 11% of jobs

Freshworks Company Profile

Freshworks, Inc is a global provider of cloud-based customer engagement software designed to help businesses streamline customer support, sales, marketing, and IT service operations. The company’s integrated suite of solutions enables organizations of all sizes to deliver seamless experiences across multiple channels, including email, chat, phone, and social media. Freshworks’ platform is built on modern, user-friendly interfaces and offers native automation, AI-powered insights, and analytics to improve efficiency and customer satisfaction.

The company’s flagship product, Freshdesk, serves as a helpdesk solution for customer support teams, while Freshservice addresses IT service management needs.