Freshworks (NASDAQ:FRSH) Posts Earnings Results, Hits Estimates

Freshworks (NASDAQ:FRSH) posted its quarterly earnings data on Tuesday. The company reported $0.11 EPS for the quarter, hitting analysts’ consensus estimates of $0.11, Briefing.com reports. The company had revenue of $228.63 million for the quarter, compared to analyst estimates of $223.64 million. Freshworks had a return on equity of 4.69% and a net margin of 21.90%.The firm’s quarterly revenue was up 16.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.18 earnings per share. 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 Stock Down 3.8%

FRSH traded down $0.35 during trading on Wednesday, hitting $8.85. The company’s stock had a trading volume of 21,206,050 shares, compared to its average volume of 7,175,225. Freshworks has a twelve month low of $6.79 and a twelve month high of $16.14. The stock’s fifty day moving average price is $8.14 and its 200-day moving average price is $10.15. The firm has a market capitalization of $2.51 billion, a P/E ratio of 13.82 and a beta of 0.83.

Analyst Ratings Changes

A number of research firms recently commented on FRSH. UBS Group set a $11.00 price objective on Freshworks in a research note on Wednesday, February 11th. Wall Street Zen raised Freshworks from a “hold” rating to a “buy” rating in a research note on Monday, April 6th. Wells Fargo & Company cut their price objective on Freshworks from $13.00 to $10.00 and set an “equal weight” rating on the stock in a research note on Wednesday, February 11th. Canaccord Genuity Group set a $14.00 price objective on Freshworks in a research note on Wednesday, February 11th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $15.00 price objective on shares of Freshworks in a research note on Wednesday, February 11th. Six equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $12.45.

Key Stories Impacting Freshworks

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

Insider Transactions at Freshworks

In other Freshworks news, insider Mika Yamamoto sold 32,577 shares of the business’s stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $8.45, for a total value of $275,275.65. Following the transaction, the insider directly owned 1,127,723 shares of the company’s stock, valued at approximately $9,529,259.35. The trade was a 2.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 8.54% of the company’s stock.

Hedge Funds Weigh In On Freshworks

Several institutional investors have recently added to or reduced their stakes in FRSH. Balyasny Asset Management L.P. acquired a new position in Freshworks in the fourth quarter valued at approximately $31,967,000. Qube Research & Technologies Ltd lifted its stake in Freshworks by 132.6% in the third quarter. Qube Research & Technologies Ltd now owns 2,790,166 shares of the company’s stock valued at $32,840,000 after buying an additional 1,590,384 shares during the period. Squarepoint Ops LLC lifted its stake in Freshworks by 345.1% in the second quarter. Squarepoint Ops LLC now owns 1,835,798 shares of the company’s stock valued at $27,372,000 after buying an additional 1,423,391 shares during the period. Voloridge Investment Management LLC acquired a new position in Freshworks in the third quarter valued at approximately $15,656,000. Finally, AQR Capital Management LLC increased its holdings in shares of Freshworks by 213.8% during the fourth quarter. AQR Capital Management LLC now owns 1,895,737 shares of the company’s stock valued at $23,223,000 after acquiring an additional 1,291,662 shares in the last quarter. 75.58% of the stock is owned by institutional investors and hedge funds.

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.