Freshworks Announces Board Authorization of $400 Million Share Repurchase Program

Rhea-AI Summary

Freshworks (NASDAQ: FRSH) announced a Board-authorized $400 million share repurchase program on Feb. 26, 2026. The company said it achieved GAAP profitability in 2025, generated over $223M in free cash flow and $0.76 per diluted share, both nearly tripling versus 2023.

Repurchases may occur in the open market, via negotiated transactions, and under Rule 10b-18 or 10b5-1 plans; timing, amount, and price are at the company's discretion and the program may be suspended.

Positive

• $400M board-authorized repurchase program
• Achieved GAAP profitability in 2025
• Free cash flow of $223M+, nearly tripled from 2023
• Diluted EPS of $0.76, nearly tripled from 2023

Negative

• Repurchases are discretionary and may be suspended
• No committed timeline or guaranteed repurchase amount
• Timing and amount depend on market, business, and regulatory factors

News Market Reaction – FRSH

+9.34%

10 alerts

+9.34% News Effect

+4.7% Peak in 7 hr 50 min

+$192M Valuation Impact

$2.25B Market Cap

0.8x Rel. Volume

On the day this news was published, FRSH gained 9.34%, reflecting a notable positive market reaction. Argus tracked a peak move of +4.7% during that session. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $192M to the company's valuation, bringing the market cap to $2.25B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Share repurchase authorization: $400 million Free cash flow: $223M Free cash flow per share: $0.76 +2 more

5 metrics

Share repurchase authorization $400 million Board-authorized Class A common stock buyback program

Free cash flow $223M 2025 free cash flow cited in buyback announcement

Free cash flow per share $0.76 2025 free cash flow per weighted average diluted share

GAAP profitability year 2025 Company states it achieved GAAP profitability in 2025

Growth vs 2023 Nearly 3x Free cash flow and FCF per share vs 2023 levels

Market Reality Check

Price: $7.83 Vol: Volume 4,488,849 is at 0....

low vol

$7.83 Last Close

Volume Volume 4,488,849 is at 0.57x the 20-day average of 7,920,684, suggesting no pre-news accumulation spike. low

Technical Shares trade at $7.28, well below the $12.59 200-day MA and 58.85% under the $17.69 52-week high, despite being only 7.22% above the $6.79 52-week low.

Peers on Argus

FRSH gained 1.68% pre-announcement while key software peers like INTA, VERX, BRZ...

1 Up

FRSH gained 1.68% pre-announcement while key software peers like INTA, VERX, BRZE, NCNO, and SPSC showed modest positive moves. Only VERX appeared in the momentum scanner (up 3.29%), indicating today’s buyback news looks more company-specific than part of a broad sector rotation.

Historical Context

5 past events · Latest: Feb 25 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 25	Investor conferences	Neutral	+1.7%	Participation in early March investor conferences with executive presentations.
Feb 10	Earnings results	Positive	-16.4%	Beat guidance with double-digit revenue growth and positive GAAP income.
Jan 13	Earnings date set	Neutral	-3.4%	Announced date and webcast details for Q4 and full-year 2025 results.
Jan 07	Executive hire	Positive	+1.4%	Appointed new CMO with extensive SaaS and AI marketing background.
Dec 15	AI acquisition	Positive	-5.2%	Agreed to acquire FireHydrant to expand AI-native incident management.

Pattern Detected

FRSH has shown a tendency for negative reactions to fundamentally positive events (earnings beat, AI acquisition), while more routine or neutral updates often see mild gains.

Recent Company History

Over the last few months, Freshworks reported strong 2025 results with $838.8M revenue and positive GAAP profitability, yet the stock fell 16.38% on that earnings release. An AI-native FireHydrant acquisition also saw a 5.17% decline. By contrast, management and conference updates in early 2026 produced small gains. Today’s buyback authorization follows this pattern of capital allocation and growth investments after returning to GAAP profitability and solid cash generation.

Market Pulse Summary

The stock moved +9.3% in the session following this news. A strong positive reaction aligns with the...

Analysis

The stock moved +9.3% in the session following this news. A strong positive reaction aligns with the Board’s authorization of a $400 million buyback while the stock trades far below its $17.69 52-week high. The program follows a return to GAAP profitability in 2025 and free cash flow of over $223M, signaling capacity to return capital. Investors would still need to watch execution pace, overall cash levels, and how repurchases balance against ongoing growth investments.

Key Terms

stock repurchase program, class a common stock, gaap, free cash flow, +2 more

6 terms

stock repurchase program financial

"its Board of Directors authorized a stock repurchase program of up to $400 million"

A stock repurchase program is when a company buys back its own shares from the market. This can make each remaining share more valuable and shows that the company believes its stock is a good investment. It’s like a business treating its shares like a limited resource, hoping to boost confidence and share prices.

class a common stock financial

"up to $400 million of the company’s outstanding Class A common stock"

Class A common stock is a category of a company’s shares that carries a specific set of ownership rights—most commonly defined voting power and claims on dividends—set out in the company’s charter. For investors it matters because the class determines how much influence you have over corporate decisions, the share’s likely dividend and trading behavior, and how it compares in value to other share classes, like choosing a particular seat with different privileges at the company’s decision-making table.

gaap financial

"In addition to achieving GAAP profitability in 2025"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

free cash flow financial

"we generated over $223M in free cash flow and $0.76 per weighted average diluted share"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

rule 10b-18 regulatory

"Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18"

Rule 10b-18 is a regulation that sets strict rules for how a company's executives and employees can buy back their own company's stock from the market. It helps ensure that these buybacks happen in a fair and transparent way, reducing the chance of market manipulation. This is important for investors because it offers protection against unfair practices and promotes confidence in the integrity of the stock market.

rule 10b5-1 plans regulatory

"may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases"

A Rule 10b5-1 plan is a prearranged schedule that lets company insiders buy or sell stock at set times or prices, set up when they do not possess confidential information. It acts like an automatic thermostat for trades, reducing the risk that otherwise-timed transactions could be accused of insider trading. Investors care because such plans increase transparency about insider activity and signal when insider trades are routine rather than reactive to private news.

AI-generated analysis. Not financial advice.

SAN MATEO, Calif., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ: FRSH) today announced that its Board of Directors authorized a stock repurchase program of up to $400 million of the company’s outstanding Class A common stock.

"This follow-on share repurchase program demonstrates our confidence in the Company's long-term strategy, durable growth and dedication to disciplined capital allocation," stated Dennis Woodside, CEO & President. "In addition to achieving GAAP profitability in 2025, we generated over $223M in free cash flow and $0.76 per weighted average diluted share, both nearly tripling from 2023. With this program we plan to repurchase shares that we believe the market substantially undervalues, while retaining sufficient cash to invest in future top line and bottom line growth."

Freshworks may repurchase shares from time to time in the open market, through privately negotiated transactions and/or other means in compliance with the Securities Exchange Act of 1934 and the rules and regulations thereunder. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 under the Exchange Act. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of shares of common stock under this authorization. The timing, manner, price, and amount of any repurchases will be determined by Freshworks at its discretion, and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. The repurchase program may be suspended or discontinued at any time.

About Freshworks Inc.
Freshworks Inc. (NASDAQ: FRSH) builds uncomplicated service software that delivers exceptional employee and customer experiences. Our enterprise-grade solutions are powerful, yet easy to use, and quick to deliver results. Our people-first approach to AI eliminates friction, making employees more effective and organizations more efficient. Nearly 75,000 companies, including Bridgestone, New Balance, Nucor, S&P Global, and Sony Music, trust Freshworks’ Employee Experience (EX) and Customer Experience (CX) software to eliminate complexity and increase productivity, loyalty and growth. For the latest company news and customer stories, visit www.freshworks.com and follow us on Facebook, LinkedIn, and X.

Forward-Looking Statements

Certain statements in this news release are forward-looking statements within the meaning of the federal securities laws, including statements relating to the Company’s plan to repurchase up to $400 million of its outstanding Class A common stock. All such statements in this report, other than statements of historical fact, are forward-looking statements. Words such as “expect,” “intend,” “will,” “plan,” “anticipate,” “may,” “believe,” “continue,” and similar expressions are intended to identify forward-looking statements. The Company’s forward-looking statements are based on certain assumptions and reflect the Company’s current expectations. As a result, forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including other factors discussed in the Company’s reports on Form 10-K and Form 10-Q and the other risks and uncertainties discussed in any subsequent reports that the Company files with the Securities and Exchange Commission from time to time.

© 2026 Freshworks Inc. All rights reserved. Freshworks and its associated logos are trademarks of Freshworks Inc. All other trademarks are property of their respective owners. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third party of Freshworks Inc. or any aspect of this press release.

Investor Relations Contact:
IR@freshworks.com

Media Relations Contact:
PR@freshworks.com

FAQ

What did Freshworks (FRSH) announce on February 26, 2026 about buybacks?

Freshworks announced a $400 million Board-authorized share repurchase program. According to the company, repurchases may occur in open market, negotiated transactions, or under Rule 10b5-1/10b-18 plans and can be suspended at any time.

How much free cash flow did Freshworks (FRSH) report tied to the repurchase decision?

Freshworks reported generating over $223 million in free cash flow in 2025. According to the company, that cash generation nearly tripled versus 2023 and supports the Board's decision to authorize repurchases.

Does the $400M repurchase program for FRSH guarantee a set buyback schedule or price?

No, the program does not guarantee specific timing, price, or amounts for repurchases. According to the company, timing and execution will depend on business, market, and regulatory conditions and remain at its discretion.

What operational milestones did Freshworks cite when announcing the FRSH buyback?

Freshworks cited achieving GAAP profitability in 2025 and nearly tripled free cash flow and EPS versus 2023. According to the company, those milestones underpin confidence in capital allocation, including the repurchase program.

How will Freshworks (FRSH) execute repurchases under the authorized $400M program?

Repurchases may occur through open-market purchases, privately negotiated transactions, or Rule 10b5-1 plans. According to the company, they may also structure open-market buys under Rule 10b-18 when appropriate.

What risks or limitations did Freshworks (FRSH) disclose about the buyback program?

The company warned the program may be suspended or discontinued and is subject to market and regulatory constraints. According to the company, external factors will determine actual repurchase timing and amounts.