Freshworks (NASDAQ:FRSH) Releases Q3 2025 Earnings Guidance

Freshworks (NASDAQ:FRSH) updated its third quarter 2025 earnings guidance on Wednesday. The company provided EPS guidance of 0.120-0.140 for the period, compared to the consensus EPS estimate of 0.060. The company issued revenue guidance of $207.0 million-$210.0 million, compared to the consensus revenue estimate of $208.8 million. Freshworks also updated its FY 2025 guidance to 0.560-0.580 EPS.

Freshworks Trading Up 3.5%

Freshworks stock opened at $13.17 on Friday. The stock’s 50 day simple moving average is $13.39 and its two-hundred day simple moving average is $14.20. Freshworks has a 12 month low of $10.81 and a 12 month high of $19.77. The firm has a market cap of $3.84 billion, a PE ratio of -73.16 and a beta of 0.94.

Freshworks (NASDAQ:FRSH) last announced its earnings results on Tuesday, July 29th. The company reported $0.18 EPS for the quarter, beating analysts’ consensus estimates of $0.12 by $0.06. The business had revenue of $204.68 million during the quarter, compared to analysts’ expectations of $198.85 million. Freshworks had a negative return on equity of 2.56% and a negative net margin of 7.02%.The business’s revenue was up 19.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.08 earnings per share. Freshworks has set its FY 2025 guidance at 0.560-0.580 EPS. Q3 2025 guidance at 0.120-0.140 EPS. On average, equities research analysts forecast that Freshworks will post -0.19 EPS for the current year.

Wall Street Analysts Forecast Growth

FRSH has been the topic of several recent research reports. Wall Street Zen cut shares of Freshworks from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 23rd. JMP Securities reaffirmed a “market outperform” rating and set a $27.00 price objective on shares of Freshworks in a research note on Friday, September 12th. Cantor Fitzgerald upgraded Freshworks to an “overweight” rating and set a $20.00 price objective on the stock in a research report on Tuesday, June 3rd. Piper Sandler upped their target price on Freshworks from $22.00 to $25.00 and gave the company an “overweight” rating in a report on Wednesday, July 30th. Finally, Morgan Stanley reduced their price target on Freshworks from $18.00 to $16.00 and set an “equal weight” rating on the stock in a report on Friday, September 12th. Eight analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $20.00.

Insider Activity

In other news, Director Zachary Nelson sold 8,433 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $13.14, for a total transaction of $110,809.62. Following the sale, the director owned 38,870 shares of the company’s stock, valued at approximately $510,751.80. This represents a 17.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Barry L. Padgett sold 7,558 shares of the firm’s stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $15.14, for a total transaction of $114,428.12. Following the completion of the transaction, the director directly owned 32,635 shares of the company’s stock, valued at approximately $494,093.90. The trade was a 18.80% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 81,771 shares of company stock worth $1,139,991 in the last quarter. Insiders own 11.17% of the company’s stock.

Institutional Investors Weigh In On Freshworks

A number of hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada grew its stake in shares of Freshworks by 120.8% in the first quarter. Royal Bank of Canada now owns 21,388 shares of the company’s stock worth $302,000 after acquiring an additional 11,703 shares in the last quarter. Amundi boosted its holdings in Freshworks by 1.3% in the first quarter. Amundi now owns 80,074 shares of the company’s stock valued at $1,049,000 after purchasing an additional 1,040 shares during the period. Goldman Sachs Group Inc. boosted its holdings in Freshworks by 35.1% in the first quarter. Goldman Sachs Group Inc. now owns 2,225,056 shares of the company’s stock valued at $31,396,000 after purchasing an additional 578,628 shares during the period. Woodline Partners LP grew its stake in Freshworks by 13.5% during the 1st quarter. Woodline Partners LP now owns 21,569 shares of the company’s stock worth $304,000 after purchasing an additional 2,571 shares in the last quarter. Finally, Focus Partners Wealth increased its holdings in Freshworks by 20.2% during the 1st quarter. Focus Partners Wealth now owns 12,399 shares of the company’s stock worth $175,000 after purchasing an additional 2,086 shares during the period. 75.58% of the stock is currently owned by institutional investors and hedge funds.

About Freshworks

Freshworks Inc, a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels.