Freshworks Inc. (FRSH) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 6, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 4, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the FRSH SEC filings page.
Freshworks Inc. (FRSH) reported $903.9M in revenue over the twelve months to Jun 30, 2026, up 15.6% from the prior twelve months. This page shows its 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).
Freshworks reached operating break-even through cost discipline, while cash generation funded unusually large buybacks despite a tax-driven net profit.
FY2025 net profit included a$130M tax benefit, while operating income was only$13M , making net income a poor proxy for recurring operating performance. Yet operating cash flow reached$242M against free cash flow of$237M , indicating cash conversion was supported more by non-cash and working-capital movements than by operating profit alone.
Gross margin was
Free cash flow reached
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Freshworks Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
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 27/100, 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 80/100.
Freshworks Inc. has a moderate D/E ratio of 0.55. This balance of debt and equity financing earns a leverage score of 59/100.
Freshworks Inc.'s current ratio of 2.20 indicates adequate short-term liquidity, earning a score of 64/100. 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 89/100.
Freshworks Inc.'s ROE of 17.8% shows moderate profitability relative to equity, earning a score of 30/100. This is up from -8.4% the prior year.
Freshworks Inc. scores 1.53, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($3.4B) relative to total liabilities ($570.1M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Freshworks Inc. passes 6 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 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 $237.4M in revenue in Q2 2026. This represents an increase of 16.0% from the same quarter a year earlier. Against the prior quarter it is up 3.8%.
Freshworks Inc.'s EBITDA was $11.6M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 389.6% from the same quarter a year earlier. Against the prior quarter it is up 5993.9%.
Freshworks Inc. reported $3.2M in net income in Q2 2026. This represents an increase of 286.3% from the same quarter a year earlier. Against the prior quarter it is up 167.3%.
Freshworks Inc. earned $0.01 per diluted share (EPS) in Q2 2026. Against the prior quarter it is up 150.0%.
Cash & Balance Sheet
Freshworks Inc. generated $53.5M in free cash flow in Q2 2026, representing cash available after capex. This represents a decrease of 8.1% from the same quarter a year earlier. Against the prior quarter it is down 8.6%.
Freshworks Inc. held $494.7M in cash as of Q2 2026; long-term debt is not reported for that period.
Not reported for Q2 2026.
Margins & Returns
Freshworks Inc.'s gross margin was 84.8% in Q2 2026, indicating the percentage of revenue retained after direct costs. That is unchanged from the same quarter a year earlier. It is unchanged from the prior quarter.
Freshworks Inc.'s operating margin was 2.5% in Q2 2026, reflecting core business profitability. This is up 6.8 percentage points from the same quarter a year earlier. Against the prior quarter it is up 6.1 percentage points.
Freshworks Inc.'s net profit margin was 1.4% in Q2 2026, showing the share of revenue converted to profit. This is up 2.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 3.5 percentage points.
Freshworks Inc.'s ROE was 0.4% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 0.5 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.8 percentage points.
Capital Allocation
Freshworks Inc. invested $43.8M in research and development in Q2 2026. This represents an increase of 9.7% from the same quarter a year earlier. Against the prior quarter it is down 11.1%.
Freshworks Inc. spent $159.0M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 40.0% from the same quarter a year earlier. Against the prior quarter it is up 228.8%.
Freshworks Inc. invested $5.0M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 1226.6% from the same quarter a year earlier. Against the prior quarter it is up 29.2%.
FRSH Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $237.4M+16.0% | $228.6M+16.5% | $222.7M+14.5% | $215.1M+15.3% | $204.7M+17.5% | $196.3M+18.9% | $194.6M+21.5% | $186.6M+21.5% |
| Cost of Revenue | $36.1M+15.9% | $34.7M+16.1% | $32.2M+9.2% | $33.0M+10.6% | $31.1M+10.5% | $29.9M+15.4% | $29.5M+9.1% | $29.8M+13.5% |
| Gross Profit | $201.3M+16.0% | $193.9M+16.6% | $190.6M+15.4% | $182.2M+16.2% | $173.5M+18.9% | $166.4M+19.5% | $165.1M+24.0% | $156.8M+23.2% |
| R&D Expenses | $43.8M+9.7% | $49.3M+23.1% | $41.8M+1.9% | $41.5M-13.4% | $39.9M-2.6% | $40.0M+15.3% | $41.0M+14.5% | $47.9M+37.3% |
| SG&A Expenses | $37.9M-19.4% | $40.4M-14.4% | -$329K-100.7% | $47.1M+1.4% | $47.0M+5.7% | $47.2M+12.2% | $47.5M+5.7% | $46.5M+14.9% |
| Operating Income | $6.1M+170.0% | -$8.1M+22.6% | $39.7M+267.0% | -$7.5M+80.8% | -$8.7M+80.2% | -$10.4M+67.6% | -$23.8M+40.6% | -$38.9M-0.3% |
| EBITDA | $11.6M+389.6% | -$197K+95.1% | $50.1M+443.0% | -$2.9M+91.4% | -$4.0M+90.3% | -$4.1M+86.1% | -$14.6M+57.6% | -$33.9M+8.5% |
| Income Tax | $7.0M+24.8% | -$1.8M-147.3% | -$144.6M-2546.0% | $4.6M-7.9% | $5.6M+154.4% | $3.9M-2.4% | $5.9M+114.5% | $5.0M+52.7% |
| Net Income | $3.2M+286.3% | -$4.8M-268.9% | $191.4M+972.8% | -$4.7M+84.4% | -$1.7M+91.4% | -$1.3M+94.4% | -$21.9M+21.8% | -$30.0M+3.5% |
| EPS (Basic) | $0.01+200.0% | -$0.02 | $0.66+925.0% | -$0.02+80.0% | -$0.01+85.7% | $0.00+100.0% | -$0.08+20.0% | -$0.10+9.1% |
| EPS (Diluted) | $0.01 | -$0.02 | $0.66+925.0% | -$0.02+80.0% | -$0.01 | $0.00+100.0% | -$0.08+20.0% | -$0.10+9.1% |
| Diluted Shares (Avg) | 273M | 283M-6.0% | N/A | 286M-5.3% | 294M | 301M+1.1% | N/A | 302M+2.7% |
Not reported in any period shown, so not listed: Interest Expense.
FRSH Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.5B+0.7% | $1.6B+4.2% | $1.6B-0.6% | $1.4B-12.9% | $1.5B-4.1% | $1.5B+5.0% | $1.6B+10.6% | $1.6B+11.1% |
| Current Assets | $901.9M-20.6% | $1.0B-15.8% | $1.1B-13.3% | $1.0B-17.2% | $1.1B-5.1% | $1.2B-12.5% | $1.3B-6.6% | $1.2B-6.6% |
| Cash & Equivalents | $494.7M+1.8% | $548.2M-7.8% | $569.8M-8.1% | $420.9M+7.6% | $486.0M+56.6% | $594.2M+27.0% | $620.3M+27.1% | $391.1M-14.7% |
| Short-Term Investments | $169.4M-61.5% | $231.1M-42.4% | $211.6M-53.0% | $392.3M-40.9% | $440.2M-37.9% | $401.1M-45.7% | $449.8M-35.7% | $663.9M-6.0% |
| Accounts Receivable | $137.7M+18.8% | $127.3M+13.4% | $150.8M+22.7% | $119.8M+20.8% | $115.9M+14.9% | $112.3M+33.2% | $122.9M+26.5% | $99.2M+23.5% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $198.0M+35.0% | $199.3M+35.6% | $146.7M-0.2% | $146.7M-0.2% | $146.7M-0.2% | $147.0M+2278.5% | $147.0M+2278.5% | $147.0M+2278.5% |
| Total Liabilities | $594.5M+19.8% | $586.2M+22.3% | $570.1M+20.3% | $520.5M+18.2% | $496.2M+15.8% | $479.4M+23.1% | $474.0M+23.3% | $440.2M+22.4% |
| Current Liabilities | $532.7M+23.1% | $520.1M+25.8% | $498.0M+22.2% | $450.6M+19.2% | $432.6M+17.7% | $413.5M+23.0% | $407.7M+24.6% | $377.9M+23.6% |
| Non-Current Liabilities | $61.9M-2.7% | $66.1M+0.4% | $72.0M+8.7% | $69.9M+12.3% | $63.6M+4.5% | $65.9M+24.2% | $66.2M+15.6% | $62.2M+15.5% |
| Total Equity | $895.9M-9.0% | $1.0B-4.0% | $1.0B-9.3% | $851.5M-25.0% | $984.6M-11.7% | $1.1B-1.5% | $1.1B+6.1% | $1.1B+7.2% |
| Retained Earnings | -$3.6B+5.0% | -$3.6B+4.8% | -$3.6B+4.9% | -$3.7B-0.8% | -$3.7B-1.5% | -$3.7B-2.0% | -$3.7B-2.6% | -$3.7B-2.8% |
Not reported in any period shown, so not listed: Inventory, Long-Term Debt.
FRSH Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $58.5M-0.1% | $62.4M+7.6% | $62.3M+50.7% | $63.5M+49.9% | $58.6M+61.2% | $58.0M+42.7% | $41.4M+34.0% | $42.3M+77.0% |
| Depreciation & Amortization | $5.6M+19.5% | $7.9M+23.6% | $6.6M+3.9% | $4.5M-8.0% | $4.6M+100.4% | $6.4M+114.4% | $6.4M+108.9% | $4.9M+197.3% |
| Stock-Based Compensation | $37.8M-23.2% | $43.9M-15.0% | N/A | $48.5M-17.3% | $49.3M-10.6% | $51.7M-1.5% | N/A | $58.7M+6.5% |
| Capital Expenditures | $5.0M+1226.6% | $3.9M+201.0% | $2.2M-56.0% | $1.8M+69.7% | $380K-83.6% | $1.3M+75.4% | $5.1M+369.6% | $1.1M+279.9% |
| Free Cash Flow | $53.5M-8.1% | $58.5M+3.2% | $60.1M+65.6% | $61.7M+49.4% | $58.2M+71.1% | $56.7M+42.1% | $36.3M+21.8% | $41.3M+74.6% |
| Investing Cash Flow | $54.6M+227.5% | -$82.3M-277.9% | $157.2M-24.8% | $45.5M-9.2% | -$42.8M+76.6% | $46.2M+222.4% | $209.1M+1611.7% | $50.1M-50.9% |
| Financing Cash Flow | -$165.8M-33.7% | -$55.5M+57.4% | -$8.3M+60.9% | -$174.1M-1395.3% | -$124.0M-991.3% | -$130.3M-467.5% | -$21.3M-61.3% | -$11.6M+51.6% |
| Share Buybacks | $159.0M+40.0% | $48.4M-57.4% | $0-100.0% | $159.1M | $113.6M | $113.6M | $13.7M | $0 |
Not reported in any period shown, so not listed: Dividends Paid.
FRSH Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 84.8%0.0pp | 84.8%+0.1pp | 85.6%+0.7pp | 84.7%+0.7pp | 84.8%+1.0pp | 84.8%+0.5pp | 84.9%+1.7pp | 84.0%+1.1pp |
| Operating Margin | 2.5%+6.8pp | -3.5%+1.8pp | 17.8%+30.1pp | -3.5%+17.4pp | -4.2%+20.9pp | -5.3%+14.2pp | -12.2%+12.8pp | -20.8%+4.4pp |
| Net Margin | 1.4%+2.2pp | -2.1%-1.4pp | 85.9%+97.2pp | -2.2%+13.9pp | -0.9%+10.7pp | -0.7%+13.5pp | -11.3%+6.3pp | -16.1%+4.2pp |
| Return on Equity | 0.4%+0.5pp | -0.5%-0.4pp | 18.5%+20.5pp | -0.5%+2.1pp | -0.2%+1.6pp | -0.1%+2.0pp | -1.9%+0.7pp | -2.6%+0.3pp |
| Return on Assets | 0.2%+0.3pp | -0.3%-0.2pp | 11.9%+13.3pp | -0.3%+1.6pp | -0.1%+1.2pp | -0.1%+1.5pp | -1.4%+0.6pp | -1.9%+0.3pp |
| Current Ratio | 1.69-0.9x | 1.94-1.0x | 2.20-0.9x | 2.27-1.0x | 2.63-0.6x | 2.89-1.2x | 3.10-1.0x | 3.26-1.1x |
| Debt-to-Equity | 0.66+0.2x | 0.58+0.1x | 0.55+0.1x | 0.61+0.2x | 0.50+0.1x | 0.45+0.1x | 0.42+0.1x | 0.390.0x |
| Asset Turnover | 0.160.0x | 0.140.0x | 0.140.0x | 0.160.0x | 0.140.0x | 0.130.0x | 0.120.0x | 0.120.0x |
| FCF Margin | 22.5%-5.9pp | 25.6%-3.3pp | 27.0%+8.3pp | 28.7%+6.6pp | 28.4%+8.9pp | 28.9%+4.7pp | 18.6%+0.1pp | 22.1%+6.7pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Freshworks Inc. FRSH | FY2025 | $838.8M | $183.7M | 21.9% | $3.4B | 58/100 |
| Intapp, Inc. INTA | FY2026 | $577.8M | -$41.3M | -7.1% | $2.8B | 45/100 |
| Vertex, Inc. VERX | FY2025 | $748.4M | $7.2M | 1.0% | $1.9B | 49/100 |
| SPS Commerce, Inc. SPSC | FY2025 | $751.5M | $93.3M | 12.4% | $3.0B | 78/100 |
| nCino, Inc. NCNO | FY2026 | $594.8M | $9.7M | 1.6% | $2.0B | 41/100 |
| Braze, Inc. BRZE | FY2026 | $738.2M | -$131.3M | -17.8% | $2.9B | 46/100 |
Where Freshworks Inc. Ranks
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 P/E ratio?
Freshworks Inc. (FRSH) trades at 18.6x earnings, its market capitalization divided by net income of $185.2M net income, trailing 12 months to June 30, 2026. The market capitalization is $3.4B as of Oct 6, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Freshworks Inc.'s price-to-sales ratio?
Freshworks Inc. (FRSH) trades at 3.8x sales, its market capitalization divided by revenue of $903.9M revenue, trailing 12 months to June 30, 2026. The market capitalization is $3.4B as of Oct 6, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Freshworks Inc.'s Altman Z-Score?
Freshworks Inc. (FRSH) has an Altman Z-Score of 1.53, 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 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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 58 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.