revenue
232–235 $million
Q2 2026
official guidance
FRESHWORKS INC.
Last · NASDAQ$13.69-0.21 (-1.51%)close · yahoo · 14h ago
Market cap$3.57B237.0M sh
P/E · TTM21.7fwd 16.5 · eps 0.63
Beta0.90vs S&P 500
Div yield0.00%annual · TTM
52w range
$6.79$14.37
Volume4.6Msession
| Revenue | $466.0M |
|---|---|
| Operating income | $-2.0M |
| Net income | $-1.6M |
| Free cash flow | $112.0M |
| Operating margin | -0.4% |
| Net margin | -0.3% |
| Return on equity | -0.2% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
EX momentum, profitability, and cash generation outweigh restructuring and CX execution risks.
Buy: Freshworks posted a strong Q1 with revenue of $228.6 million, up 16% year over year, EX ARR up 27%, 18% non-GAAP operating margin, and 24% adjusted free-cash-flow margin.
The upmarket EX motion is gaining credibility through large competitive wins, while FY2026 revenue guidance of $958 million-$964 million and adjusted EPS of $0.61-$0.63 remain achievable; the key tension is an 11% workforce reduction and deliberately conservative low-single-digit CX growth.
Themes
- Ex Growth
- Enterprise Wins
- Ai Monetization
- Freshservice
- Freshdesk Omni
- Restructuring
Near term
Refresh event product announcements, particularly AI Agent Studio, MCP gateway, and new EX monetization details, could validate or disappoint the AI opportunity.
Execution after the 11% headcount reduction and approximately $8 million of restructuring charges, mostly in Q2, will be closely watched.
Q2 guidance calls for revenue of $232 million-$235 million, 13%-15% growth, and billings growth of approximately 14.5%.
Longer term
EX ARR growth of 27%, EX net dollar retention of 109% constant currency, and large displacements of ServiceNow/Atlassian-type incumbents support a credible share-gain thesis in the 5,000-20,000 employee market.
Freshservice is expanding from IT service management into asset management, operations management, ESM, and AI agents, increasing cross-sell potential and platform breadth.
Competitive moat risk remains: management cited strong wins against larger vendors, but channel leverage beyond regional partners is still nascent and large incumbents remain entrenched.
Management targets adjusted free-cash-flow-per-share compounding of at least 20% annually for the next three years, supported by a 27.5% FY2026 adjusted free-cash-flow margin target.
Red flags
The 11% workforce reduction is being justified by AI-driven productivity and go-to-market rebalancing despite management describing pipeline and growth momentum as strong; disruption and execution risk are not quantified.
CX ARR grew only 6% as reported and management guides to low-single-digit growth for 2026, leaving the business increasingly dependent on EX.
Freddy AI Copilot adoption is accelerating, but the call did not quantify AI revenue or current monetization; MCP gateway monetization remains a future opportunity.
Management was optimistic on competitive displacement but provided limited win-rate, pipeline conversion, or sales-cycle data to substantiate repeatability of the largest deals.
Forward outlook
revenue growth
13–15 pct
Q2 2026
official guidance
adjusted eps
0.13 $per share
Q2 2026
official guidance
revenue
958–964 $million
FY 2026
official guidance
revenue growth
14–15 pct
FY 2026
official guidance
adjusted eps
0.61–0.63 $per share
FY 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$0.18
Est. revenue
245.1M
Earnings transcripts
- Issuer IR
Transcript of Q1 2026 Earnings
FRESHWORKS INC.
- Issuer IR
Q1 2026 earnings call transcript
FRESHWORKS INC.
- Issuer webcast
Q1 2026 earnings call transcript
FRESHWORKS INC.
- Issuer IR
Q1 2024 earnings call transcript
FRESHWORKS INC.
- Issuer IR
Freshworks Second Quarter 2026 Transcript
FRESHWORKS INC.
- Issuer IR
Transcript of Q4 2025 Earnings
FRESHWORKS INC.
Press & signals
- GlobeNewswire
Freshworks Announces Inducement Grant under Listing Rule 5635(C)(4) of the Nasdaq Stock Market
- GlobeNewswire
Freshworks Reports Record Second Quarter 2026 Results
- GlobeNewswire
Freshworks Appoints Ryan Manning as Chief Product and Technology Officer