Freshworks Inc. (FRSH) Stock Price & How to Invest
Short answer
FRSH is Freshworks, a mid-cap enterprise software company that sells cloud-based customer support (Freshdesk), IT service management (Freshservice), and CRM tools with an AI layer called Freddy. Investing in it is a bet on a profitable, cash-generative SaaS challenger growing revenue in the mid-teens while pivoting hard toward AI-driven service automation.
FRSH stock price
As of 2026-07-08, Freshworks Inc. (FRSH) last closed at $10.17, down 33.8% over the past year. Over the past 52 weeks it has traded between $6.88 and $15.36.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Freshworks Inc.'s investor relations page. Walnut is informational, not investment advice.
What does Freshworks Inc. (FRSH) do?
Freshworks Inc. (Nasdaq: FRSH) builds cloud software that helps companies run service and support functions. Its flagship products are Freshdesk (customer support), Freshservice (IT and employee service management), and a customer relationship management suite, all increasingly wrapped in its Freddy AI layer for automation, copilots, and AI agents. The company positions itself as an easier-to-deploy, lower-cost alternative to heavyweight incumbents, and has been steadily shifting upmarket: customers paying over $50,000 in annual recurring revenue grew about 22% year over year to roughly 3,900 as of Q1 2026 and now represent more than half of total ARR.
The investment picture is that of a maturing SaaS name that has crossed into GAAP profitability while still growing. Revenue reached about $838.8 million in fiscal 2025 (up 16%), and the company generated net income of roughly $183.7 million and strong free cash flow, ending 2025 with nearly $844 million in cash and marketable securities and no meaningful debt. In 2026 management guided to 14 to 15% revenue growth and continued margin expansion, and announced a restructuring cutting about 11% of staff to redirect resources toward AI, with the CEO noting more than half of the company's code is now written with AI tools. The debate for investors is whether AI, enterprise wins, and buybacks can offset a growth rate that has decelerated from its hypergrowth IPO-era pace.
What's driving Freshworks Inc. (FRSH)?
1. AI monetization through Freddy
Freshworks is embedding its Freddy AI across support and IT products as copilots, autonomous agents, and analytics. Management reported Freddy AI Copilot customer growth above 80% year over year and an attach rate above 65% in new deals over $30,000 in ARR. If AI features drive higher seat pricing and usage-based add-ons, they could lift average revenue per customer without a proportional rise in sales cost.
2. Move upmarket to larger customers
The company is deliberately shifting toward bigger accounts, landing its first $1 million-plus ARR deal in Q1 2026. Customers with more than $50,000 in ARR grew about 22% and now account for over half of total ARR. Winning and expanding larger, stickier enterprise accounts is central to sustaining mid-teens growth as the small-business base matures.
3. Profitability and capital returns
Freshworks reached GAAP profitability in 2025 and runs at non-GAAP operating margins near 18% with adjusted free cash flow margins in the mid-20s. A large net cash position funds ongoing share repurchases, which can support per-share metrics. The 2026 AI-driven restructuring is aimed at further operating leverage.
4. Employee experience and ITSM expansion
Freshservice, its IT and broader employee service management product, is a faster-growing part of the portfolio and pushes Freshworks into the service management category dominated by larger vendors. Success here diversifies the company beyond customer support and opens larger enterprise budgets.
What are the risks to Freshworks Inc. (FRSH)?
Revenue growth has decelerated from hypergrowth levels into the mid-teens, and any further slowdown could pressure a valuation that already reflects modest expectations. Freshworks competes against much larger, better-capitalized incumbents (ServiceNow, Salesforce, Zendesk, Microsoft, Zoho), and AI could either be a tailwind or commoditize the support-software category if larger platforms bundle comparable automation. The 2026 layoffs signal a bet that AI can do more with fewer people, which carries execution and morale risk. GAAP net income in 2025 was flattened by tax and other items, so headline profitability may not fully reflect underlying earnings power. Stock-based compensation remains meaningful, and the shares have historically been volatile.
How is Freshworks Inc. (FRSH) valued? (approximate, MAY 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Freshworks Inc.'s investor relations page or your broker.
- Revenue (TTM): ~$870M
- FY2025 revenue: ~$838.8M (up ~16%)
- Q1 2026 revenue: ~$228.6M (up ~16%)
- Market cap: ~$2.7B
- Cash and securities: ~$844M, no material debt
- FY2026 revenue guide: ~$958M to ~$964M
As of May 2026 Freshworks traded around $9 per share for a market cap near $2.7 billion, or roughly 3 times trailing revenue, a discount to many higher-growth SaaS peers. The company is profitable on a non-GAAP basis and generates meaningful free cash flow, with a large net cash cushion. Reported GAAP earnings in 2025 were boosted by non-operating items, so recurring earnings-based multiples should be read with care.
Who competes with Freshworks Inc. (FRSH)?
Customer support and CX platforms
Zendesk, Salesforce Service Cloud, Intercom, Zoho Desk, and Help Scout compete directly with Freshdesk for customer service software. Freshworks positions itself as easier to deploy and lower cost than Salesforce and Zendesk, while facing pricing pressure from Zoho at the low end.
IT and enterprise service management
Freshservice competes against ServiceNow, Atlassian Jira Service Management, and ManageEngine. ServiceNow is a far larger, more powerful and expensive platform, and Freshworks targets mid-market buyers who want to avoid a heavyweight ServiceNow-scale implementation.
CRM and broader platforms
In CRM and sales tools, Freshworks overlaps with Salesforce, HubSpot, and Microsoft Dynamics. These larger platforms increasingly bundle their own AI assistants, creating competitive pressure on Freshworks' AI differentiation.
How to invest in Freshworks Inc. (FRSH)
There are three common ways to get FRSH exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so FRSH sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where FRSH fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
The bottom line on Freshworks Inc. (FRSH)
Freshworks is a durably profitable, mid-teens-growth SaaS business trading at a discount to larger software peers, with the upside case resting on whether its AI push and enterprise move can reaccelerate growth.
More on Freshworks Inc. (FRSH)
Whether FRSH is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is FRSH a buy?, and where the stock could go from here in the FRSH stock forecast.
For income investors, whether FRSH pays a dividend and how the payout looks is covered in does FRSH pay a dividend?
Build a basket around FRSH with Walnut
Use Freshworks Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What does Freshworks do?
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Freshworks builds cloud-based software for customer support, IT and employee service management, and customer relationship management. Its main products are Freshdesk, Freshservice, and a CRM suite, all enhanced by its Freddy AI layer for automation and AI agents.
Is Freshworks profitable?
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Yes. Freshworks reported GAAP net income of roughly $183.7 million in fiscal 2025 after a loss in 2024, and it runs at non-GAAP operating margins near 18% with strong free cash flow. Note that 2025 GAAP profit was helped by non-operating items.
How fast is Freshworks growing?
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Revenue grew about 16% in fiscal 2025 to roughly $838.8 million, and Q1 2026 revenue rose about 16% to $228.6 million. Management guided full-year 2026 revenue to roughly $958 million to $964 million, implying mid-teens growth, a deceleration from earlier hypergrowth years.
Why did Freshworks lay off staff in 2026?
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In May 2026 Freshworks announced cutting about 11% of its workforce, roughly 500 jobs, to redirect resources toward AI. The CEO said more than half of the company's code is now written with AI tools, framing the move as a bet on AI-driven efficiency.
Who are Freshworks' main competitors?
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In customer support it competes with Zendesk, Salesforce, Intercom, and Zoho. In IT service management it competes with ServiceNow, Atlassian, and ManageEngine. In CRM it overlaps with Salesforce, HubSpot, and Microsoft.
What is Freddy AI?
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Freddy is Freshworks' AI layer across its products. It includes Freddy Copilot, which helps human agents respond faster and resolve more tickets, and autonomous AI agents that handle routine requests. Freshworks reports rapid Freddy Copilot customer growth and rising attach rates in larger deals.
How is Freshworks valued?
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As of May 2026 Freshworks traded around $9 per share with a market cap near $2.7 billion, roughly 3 times trailing revenue. That is a discount to many higher-growth software peers, reflecting its slower growth but also its profitability and large net cash position.
Does Freshworks pay a dividend?
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No, Freshworks does not pay a dividend. It returns capital to shareholders through share repurchases funded by its free cash flow and large net cash balance, and reinvests in product and AI development. Walnut is not an investment adviser, and this page is descriptive information, not a recommendation.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Freshworks Inc.'s investor relations page or your broker before making investment decisions.