FRSHNasdaqServices-Prepackaged SoftwareFiscal year ends December 31
Freshworks Inc.
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 4, 2026
$14.13+0.39 (+2.84%)
Close on Oct 19, 2026
- Market cap
- $3.86B
- P/E (TTM)
- 22.8
- Dividend yield
- –
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
85.0%+6.0 pts over 5 years
Operating margin
1.6%+24.0 pts over 5 years
Net margin
21.9%+44.9 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +16.4% | +19.0% | +27.4% | – | |
| Gross profit | +17.4% | +21.0% | +29.3% | – | |
| Free cash flow | +56.2% | – | +53.1% | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 3.0% | 16.9% | |
| Return on assets | – | – | 11.4% | |
| Current ratio | – | 2.05 | 2.20 | |
| Capex to revenue | – | 1.8% | 0.7% | |
| Diluted shares | – | 77M | 294M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Freshworks generated $503.18M from operations and spent $429.64M on capital expenditure, dividends and share buybacks. 7% of that went back into the business.
Generated
$503.18M
Used
$429.64M
Capital expenditure$29.64M7%Dividends$00%Share buybacks$400.00M93%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin21.9%
×Asset turnover0.52×
×Equity multiplier1.48×
=Return on equity, FY202516.9%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 21.9% | 0.52× | 1.48× | 16.9% |
| FY2024 | -13.2% | 0.47× | 1.39× | -8.6% |
| FY2023 | -23.0% | 0.42× | 1.34× | -12.9% |
| FY2022 | -46.6% | 0.35× | 1.25× | -20.3% |
| FY2021 | -51.7% | 0.40× | -1.27× | 26.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
7of 8 tests passed in fiscal 2025. Some tests lack the figures they need.
- ProfitableNet income above zero$183.72M
- Cash generatingOperating cash flow above zero$242.37M
- Return on assets improvedROA up on the prior year-6.5% → 11.4%
- Earnings backed by cashOperating cash flow above net income$242.37M vs $183.72M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose3.10 → 2.20
- No dilutionShare count did not rise301M → 294M
- Gross margin improvedGross margin up on the prior year84.27% → 84.96%
- More efficientAsset turnover rose0.49 → 0.52