FRSH Stock Recent News

Freshworks launches Freshservice Journeys to streamline IT, HR and facilities workflows, driving employee engagement and enterprise growth.

SAN MATEO, Calif., July 02, 2025 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ: FRSH) will announce its financial results for the second quarter ended June 30, 2025 following the close of market on Tuesday, July 29, 2025. Freshworks will host a live audio webcast beginning at 2:00 p.m Pacific Time / 5:00 p.m. Eastern Time that same day to discuss the company's financial results and business highlights.

Freshworks (FRSH) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Freshservice Journeys is an AI-powered capability that simplifies complex workflows spanning HR, IT, facilities, and more, to help organizations deliver an exceptional experience during employee transitions Freshservice Journeys is an AI-powered capability that simplifies complex workflows spanning HR, IT, facilities, and more, to help organizations deliver an exceptional experience during employee transitions

Freshworks offers value at current multiples, but growth and operating margin trends require deeper analysis to confirm if it's a true bargain. Revenue growth is healthy, but not explosive; high sales spend and intense competition raise concerns about long-term margin improvement and category leadership. Strong R&D investment and product enhancements, especially with Freddy AI, support retention and efficiency, but ARR and net retention need ongoing monitoring.

Freshworks' fundamentals have improved significantly despite a 72% drawdown, with steady revenue growth and improved profitability. Valuation is attractive at 4.5X EV/sales and 26.2X forward P/E, much cheaper than peers. Risks include AI execution, intense competition, and uncertainty in forecasting due to rapid innovation needs.

Freshworks unveils Freddy Agentic AI, a platform that automates complex tasks across support teams - no coding needed.

New agentic capabilities resolve service requests autonomously, deliver real-time insights and simplify the deployment of AI agents for support teams New agentic capabilities resolve service requests autonomously, deliver real-time insights and simplify the deployment of AI agents for support teams

I rate Freshworks as a hold due to macro headwinds, internal restructuring, and AI monetization uncertainty despite solid 1Q25 results. FRSH's 1Q25 earnings showed strong growth in the EX segment and profitability, with a notable 1,100 net new paying customers added. Freddy AI adoption is promising, with significant traction in large deals, but it's still early, representing less than 10% of the customer base.

Freshworks demonstrates strong financial health with 20% YoY revenue growth, expanding margins, and significant cash generation, positioning it on the cusp of profitability. Despite a lower EV/Revenue multiple of 4.4x compared to peers like HubSpot and ServiceNow, Freshworks' fundamentals and growth metrics suggest it is undervalued. The company's AI initiatives, Freddy AI Agent and Freddy AI Copilot, show promising adoption but need continued success to maintain market relevance.