Freshworks Inc. Financials
This page shows Freshworks Inc. (FRSH) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Freshworks Inc. has an operating margin of 1.6%, meaning the company retains $2 of operating profit per $100 of revenue. This below-average margin results in a low score of 26/100, suggesting thin profitability after operating expenses. This is up from -19.2% the prior year.
Freshworks Inc.'s revenue surged 16.4% year-over-year to $838.8M, reflecting rapid business expansion. This strong growth earns a score of 61/100.
Freshworks Inc. carries a low D/E ratio of 0.55, meaning only $0.55 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 91/100, indicating a strong balance sheet with room for future borrowing.
Freshworks Inc.'s current ratio of 2.20 indicates adequate short-term liquidity, earning a score of 40/100. The company can meet its near-term obligations, though with limited headroom.
Freshworks Inc. converts 28.2% of revenue into free cash flow ($236.7M). This strong cash generation earns a score of 96/100.
Freshworks Inc.'s ROE of 17.8% shows moderate profitability relative to equity, earning a score of 51/100. This is up from -8.4% the prior year.
Freshworks Inc. scores 0.30, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($2.3B) relative to total liabilities ($570.1M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Freshworks Inc. passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, Freshworks Inc. generates $1.32 in operating cash flow ($242.4M OCF vs $183.7M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Freshworks Inc. generated $838.8M in revenue in fiscal year 2025. This represents an increase of 16.4% from the prior year.
Freshworks Inc.'s EBITDA was $39.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 132.8% from the prior year.
Freshworks Inc. reported $183.7M in net income in fiscal year 2025. This represents an increase of 292.6% from the prior year.
Freshworks Inc. earned $0.63 per diluted share (EPS) in fiscal year 2025. This represents an increase of 296.9% from the prior year.
Cash & Balance Sheet
Freshworks Inc. generated $236.7M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 56.2% from the prior year.
Freshworks Inc. held $569.8M in cash against $0 in long-term debt as of fiscal year 2025.
Margins & Returns
Freshworks Inc.'s gross margin was 85.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.7 percentage points from the prior year.
Freshworks Inc.'s operating margin was 1.6% in fiscal year 2025, reflecting core business profitability. This is up 20.8 percentage points from the prior year.
Freshworks Inc.'s net profit margin was 21.9% in fiscal year 2025, showing the share of revenue converted to profit. This is up 35.1 percentage points from the prior year.
Freshworks Inc.'s ROE was 17.8% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 26.2 percentage points from the prior year.
Capital Allocation
Freshworks Inc. invested $163.2M in research and development in fiscal year 2025. This represents a decrease of 0.8% from the prior year.
Freshworks Inc. spent $386.3M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 2721.2% from the prior year.
Freshworks Inc. invested $5.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 37.9% from the prior year.
FRSH Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $222.7M+3.5% | $215.1M+5.1% | $204.7M+4.3% | $196.3M+0.9% | $194.6M+4.3% | $186.6M+7.1% | $174.1M+5.4% | $165.1M |
| Cost of Revenue | $32.2M-2.4% | $33.0M+5.8% | $31.1M+4.2% | $29.9M+1.4% | $29.5M-1.2% | $29.8M+5.8% | $28.2M+8.8% | $25.9M |
| Gross Profit | $190.6M+4.6% | $182.2M+5.0% | $173.5M+4.3% | $166.4M+0.8% | $165.1M+5.3% | $156.8M+7.4% | $146.0M+4.8% | $139.3M |
| R&D Expenses | $41.8M+0.8% | $41.5M+3.8% | $39.9M-0.1% | $40.0M-2.5% | $41.0M-14.3% | $47.9M+16.8% | $41.0M+18.2% | $34.7M |
| SG&A Expenses | -$329K-100.7% | $47.1M+0.3% | $47.0M-0.5% | $47.2M-0.6% | $47.5M+2.2% | $46.5M+4.5% | $44.5M+5.7% | $42.1M |
| Operating Income | $39.7M+632.8% | -$7.5M+13.9% | -$8.7M+16.9% | -$10.4M+56.2% | -$23.8M+38.8% | -$38.9M+11.2% | -$43.8M-36.1% | -$32.2M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | -$144.6M-3223.5% | $4.6M-17.8% | $5.6M+46.0% | $3.9M-34.7% | $5.9M+17.6% | $5.0M+148.5% | -$10.4M-362.0% | $4.0M |
| Net Income | $191.4M+4190.7% | -$4.7M-169.1% | -$1.7M-33.4% | -$1.3M+94.0% | -$21.9M+26.9% | -$30.0M-48.4% | -$20.2M+13.5% | -$23.3M |
| EPS (Diluted) | N/A | $-0.02-100.0% | $-0.01 | $0.00 | N/A | $-0.10-42.9% | $-0.07+12.5% | $-0.08 |
FRSH Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.6B+16.8% | $1.4B-7.4% | $1.5B-3.9% | $1.5B-4.4% | $1.6B+2.3% | $1.6B+2.0% | $1.5B+5.2% | $1.5B |
| Current Assets | $1.1B+7.4% | $1.0B-10.1% | $1.1B-5.0% | $1.2B-5.5% | $1.3B+2.6% | $1.2B+3.0% | $1.2B-12.4% | $1.4B |
| Cash & Equivalents | $569.8M+35.4% | $420.9M-13.4% | $486.0M-18.2% | $594.2M-4.2% | $620.3M+58.6% | $391.1M+26.1% | $310.3M-33.7% | $468.0M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $150.8M+25.9% | $119.8M+3.4% | $115.9M+3.2% | $112.3M-8.6% | $122.9M+23.9% | $99.2M-1.7% | $100.9M+19.6% | $84.3M |
| Goodwill | $146.7M0.0% | $146.7M0.0% | $146.7M-0.2% | $147.0M0.0% | $147.0M0.0% | $147.0M0.0% | $147.0M+2278.5% | $6.2M |
| Total Liabilities | $570.1M+9.5% | $520.5M+4.9% | $496.2M+3.5% | $479.4M+1.1% | $474.0M+7.7% | $440.2M+2.7% | $428.5M+10.1% | $389.3M |
| Current Liabilities | $498.0M+10.5% | $450.6M+4.2% | $432.6M+4.6% | $413.5M+1.4% | $407.7M+7.9% | $377.9M+2.8% | $367.7M+9.3% | $336.3M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $1.0B+21.3% | $851.5M-13.5% | $984.6M-7.3% | $1.1B-6.7% | $1.1B+0.3% | $1.1B+1.8% | $1.1B+3.4% | $1.1B |
| Retained Earnings | -$3.6B+5.1% | -$3.7B-0.1% | -$3.7B0.0% | -$3.7B0.0% | -$3.7B-0.6% | -$3.7B-0.8% | -$3.7B-0.6% | -$3.7B |
FRSH Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $62.3M-1.8% | $63.5M+8.3% | $58.6M+1.1% | $58.0M+40.2% | $41.4M-2.3% | $42.3M+16.5% | $36.3M-10.5% | $40.6M |
| Capital Expenditures | $2.2M+24.6% | $1.8M+371.6% | $380K-70.7% | $1.3M-74.4% | $5.1M+379.8% | $1.1M-54.4% | $2.3M+213.3% | $739K |
| Free Cash Flow | $60.1M-2.6% | $61.7M+6.0% | $58.2M+2.7% | $56.7M+56.2% | $36.3M-12.1% | $41.3M+21.3% | $34.0M-14.7% | $39.9M |
| Investing Cash Flow | $157.2M+245.2% | $45.5M+206.3% | -$42.8M-192.7% | $46.2M-77.9% | $209.1M+317.0% | $50.1M+127.4% | -$182.7M-383.8% | -$37.8M |
| Financing Cash Flow | -$8.3M+95.2% | -$174.1M-40.3% | -$124.0M+4.8% | -$130.3M-511.6% | -$21.3M-83.0% | -$11.6M-2.4% | -$11.4M+50.5% | -$23.0M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $0-100.0% | $159.1M+40.1% | $113.6M0.0% | $113.6M+729.7% | $13.7M | $0 | $0 | $0 |
FRSH Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 85.6%+0.9pp | 84.7%-0.1pp | 84.8%0.0pp | 84.8%-0.1pp | 84.9%+0.8pp | 84.0%+0.2pp | 83.8%-0.5pp | 84.3% |
| Operating Margin | 17.8%+21.3pp | -3.5%+0.8pp | -4.2%+1.1pp | -5.3%+6.9pp | -12.2%+8.6pp | -20.8%+4.3pp | -25.1%-5.7pp | -19.5% |
| Net Margin | 86.0%+88.1pp | -2.2%-1.3pp | -0.9%-0.2pp | -0.7%+10.6pp | -11.3%+4.8pp | -16.1%-4.5pp | -11.6%+2.5pp | -14.1% |
| Return on Equity | 18.5%+19.1pp | -0.5%-0.4pp | -0.2%-0.1pp | -0.1%+1.8pp | -1.9%+0.7pp | -2.6%-0.8pp | -1.8%+0.3pp | -2.2% |
| Return on Assets | 11.9%+12.3pp | -0.3%-0.2pp | -0.1%-0.0pp | -0.1%+1.3pp | -1.4%+0.5pp | -1.9%-0.6pp | -1.3%+0.3pp | -1.6% |
| Current Ratio | 2.20-0.1 | 2.27-0.4 | 2.63-0.3 | 2.89-0.2 | 3.10-0.2 | 3.260.0 | 3.26-0.8 | 4.07 |
| Debt-to-Equity | 0.55-0.1 | 0.61+0.1 | 0.50+0.1 | 0.45+0.0 | 0.42+0.0 | 0.390.0 | 0.38+0.0 | 0.36 |
| FCF Margin | 27.0%-1.7pp | 28.7%+0.2pp | 28.4%-0.4pp | 28.9%+10.2pp | 18.6%-3.5pp | 22.1%+2.6pp | 19.5%-4.6pp | 24.1% |
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Frequently Asked Questions
What is Freshworks Inc.'s annual revenue?
Freshworks Inc. (FRSH) reported $838.8M in total revenue for fiscal year 2025. This represents a 16.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Freshworks Inc.'s revenue growing?
Freshworks Inc. (FRSH) revenue grew by 16.4% year-over-year, from $720.4M to $838.8M in fiscal year 2025.
Is Freshworks Inc. profitable?
Yes, Freshworks Inc. (FRSH) reported a net income of $183.7M in fiscal year 2025, with a net profit margin of 21.9%.
What is Freshworks Inc.'s EBITDA?
Freshworks Inc. (FRSH) had EBITDA of $39.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Freshworks Inc.'s gross margin?
Freshworks Inc. (FRSH) had a gross margin of 85.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Freshworks Inc.'s operating margin?
Freshworks Inc. (FRSH) had an operating margin of 1.6% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Freshworks Inc.'s net profit margin?
Freshworks Inc. (FRSH) had a net profit margin of 21.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Freshworks Inc.'s return on equity (ROE)?
Freshworks Inc. (FRSH) has a return on equity of 17.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Freshworks Inc.'s free cash flow?
Freshworks Inc. (FRSH) generated $236.7M in free cash flow during fiscal year 2025. This represents a 56.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Freshworks Inc.'s operating cash flow?
Freshworks Inc. (FRSH) generated $242.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Freshworks Inc.'s total assets?
Freshworks Inc. (FRSH) had $1.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Freshworks Inc.'s capital expenditures?
Freshworks Inc. (FRSH) invested $5.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Freshworks Inc. spend on research and development?
Freshworks Inc. (FRSH) invested $163.2M in research and development during fiscal year 2025.
What is Freshworks Inc.'s current ratio?
Freshworks Inc. (FRSH) had a current ratio of 2.20 as of fiscal year 2025, which is generally considered healthy.
What is Freshworks Inc.'s debt-to-equity ratio?
Freshworks Inc. (FRSH) had a debt-to-equity ratio of 0.55 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Freshworks Inc.'s return on assets (ROA)?
Freshworks Inc. (FRSH) had a return on assets of 11.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Freshworks Inc.'s Altman Z-Score?
Freshworks Inc. (FRSH) has an Altman Z-Score of 0.30, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Freshworks Inc.'s Piotroski F-Score?
Freshworks Inc. (FRSH) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Freshworks Inc.'s earnings high quality?
Freshworks Inc. (FRSH) has an earnings quality ratio of 1.32x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Freshworks Inc.?
Freshworks Inc. (FRSH) scores 61 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.