Freshworks (FRSH) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Freshworks

NasdaqGS•Technology•Software - Application

$12.25-0.47(-0.04%)Market closed

Market Cap

$3.46B

P/E

18.7x

P/S

3.8x

P/B

3.9x

Freshworks Inc., a software development company, provides software-as-a-service products in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company's software-as-a-service solutions includes Customer Experience (CX) and Employee Experience (EX). Its Customer Experience products include Freshdesk Omni, an AI-powered omnichannel customer service solution that unifies customer interactions, support operations, and empowers agents to deliver exceptional experiences; Freshdesk, a ticketing and case management solution; Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels; Freshcaller, a cloud-based contact center solution for scalable voice operations; Freshsales, a sales CRM for pipeline management and deal closure solution; and Freshmarketer, a marketing automation platform designed to help businesses to attract, nurture, convert, and retain customers. The company's Employee Experience products include Freshservice, an IT and enterprise service management platform to AI agents to help employees resolve issues, make requests, and access information through conversational interfaces without requiring direct interaction with the service desk; Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data; Device42 which provides IT discovery and dependency mapping solutions; and FireHydrant, a modern incident management platform that enables engineering and operations teams to manage the full incident lifecycle. In addition, it provides Freshworks platform, an AI-powered, enterprise-grade foundation that unifies customer experience and employee experience product lines. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.

How this company scores

GoodMetricSide Score: 76/100

Strongest: Growth (25/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability19/25

Growth25/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality17/25

Strengths

Growing revenueRising free cash flowHigh ROERising earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 18.7x5y range 12.6x – 19.0x

P/S · 3.8x5y range 2.6x – 11.7x

Currently below its 17-quarter median.

P/B · 3.9x5y range 2.2x – 6.5x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

FCF consistently trails net income (avg -11.1x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume

Market Cap $3.46B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $903.87M
Q. Revenue: $237.38M
TTM EBITDA: $59.62M
TTM Op. Income: $30.28M
Q. Op. Income: $6.06M
TTM Net Income: $185.19M
Q. Net Income: $3.24M
EPS: $0.01
Shares Out.: $271.95M

$903.87M in TTM revenue grew 15.6% YoY, reaching $237.38M last quarter. TTM EBITDA of $59.62M and TTM operating income of $30.28M show growth is flowing through to the bottom line. TTM net income of $185.19M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 84.8%
EBITDA Margin: 6.0%
Op. Margin: 2.6%
Net Margin: 1.4%

Op. margin of 2.6% is up 6.8% YoY — cost efficiency is improving. Net margin at 1.4% and gross margin of 84.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 160% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 18.7x
P/S Ratio: 3.8x
P/B Ratio: 3.9x

At 18.7x P/E, the stock trades within typical market levels. P/S of 3.8x and P/B of 3.9x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 0% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.49B
Cash: $494.67M
Long-Term Debt: N/A
Book Value: $895.94M
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $58.52M
TTM Free Cash Flow: $233.75M
FCF Margin: 25.9%
FCF / Net Income: 1.3

TTM FCF of $233.75M on $58.52M in operating cash flow. The FCF / Net Income ratio of 1.3x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 21% — a weakening trend.