FRSH

Technology

Freshworks Inc. · Software - Application · $3B

UQS Score — Balanced Preset
51.8
Good

Freshworks Inc. scores 51.8/100 using the Balanced preset.

UQS vs Technology Sector
FRSH
51.8
Sector avg
38.0
Quality
Neutral
Moat
Weak
Growth
Neutral
Risk
Good
Valuation
Good

What is Freshworks Inc.?

Freshworks Inc. is a cloud-based software company that builds customer engagement and IT service management tools for businesses of all sizes. Headquartered in San Mateo, California, the company serves customers across the globe through a subscription-based model.

Freshworks develops and sells software-as-a-service products designed to help businesses manage customer support, IT operations, sales, and marketing. Revenue comes primarily from recurring software subscriptions, with pricing tiers that scale alongside customer size. The company targets small and mid-sized businesses as its core market, though it has expanded upmarket over time. Its products are delivered entirely through the cloud, reducing deployment friction for customers.

Freshworks was incorporated in 2010 and is headquartered in San Mateo, California.

  • Customer support and helpdesk software
  • IT service management platform
  • CRM and sales automation tools
  • Marketing automation software
  • Employee experience and HR service management

Is FRSH a Good Stock to Buy?

UQS Score rates FRSH as Below Average overall, reflecting a mixed picture across its five quality pillars.

The Risk pillar comes in at Good, suggesting the company carries a relatively manageable financial risk profile compared to many peers in the software space. Valuation also registers as Good, meaning the stock does not appear significantly stretched relative to its fundamentals — a notable trait in a sector where elevated pricing is common.

The Moat pillar is rated Weak, pointing to limited durable competitive advantages, while Quality and Growth both land at Neutral — neither a clear strength nor a red flag on their own.

Pro members can view the exact pillar breakdown and full financial metrics behind each rating to form a more complete picture. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does FRSH pay dividends?

No — Freshworks Inc. does not currently pay a dividend.

Freshworks does not currently pay a dividend. As a growth-oriented SaaS company, it reinvests available capital into product development, sales expansion, and customer acquisition rather than returning cash to shareholders. Investors focused on income generation may want to weigh this against other holdings, while those prioritizing growth may find the reinvestment approach consistent with the company's stage.

When does FRSH report earnings?

Freshworks reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

The company's recent results reflect the broader dynamics of the mid-market SaaS segment — balancing subscription revenue growth against ongoing investment in sales and product. Profitability trends remain a key area of focus for investors tracking the business.

For the most recent quarter's results and guidance, visit Freshworks' official investor relations page.

FRSH Price History

-79.3% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Freshworks Inc.?

$
Today it would be worth
$7,008
That's a -29.9% total return, or -29.9% annualized.

Based on Freshworks Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

FRSH Long-term Outlook

With Growth and Quality both rated Neutral, Freshworks appears to be in a transitional phase — generating revenue expansion but not yet at a pace that clearly differentiates it within the sector. The Good Risk rating provides some reassurance that near-term financial stability is not a primary concern. However, the Weak Moat rating introduces longer-term uncertainty about whether the company can defend its market position as competition in the SMB software space intensifies.

Growth drivers

  • Expansion into IT service management and employee experience software
  • Upselling existing customers to higher-tier subscription plans
  • Growing demand for cloud-based tools among mid-sized businesses

Key risks

  • Weak competitive moat in a crowded SMB software market
  • Sustained investment requirements that weigh on profitability timelines
  • Valuation sensitivity if growth rates moderate further

FRSH vs Peers

Freshworks operates in a competitive software landscape alongside a range of companies that investors often evaluate side by side.

GRNDFRSH scores lower
Grindr Inc.

Grindr operates a consumer social networking platform, making its business model and revenue drivers fundamentally different from Freshworks' enterprise SaaS focus.

IEFRSH scores higher
Ivanhoe Electric Inc.

Ivanhoe Electric is a mining and energy technology company, operating in an entirely different sector from Freshworks' cloud software business.

BRZEFRSH scores higher
Braze, Inc.

Braze focuses on customer engagement and marketing automation for enterprise clients, overlapping with parts of Freshworks' product portfolio in the CRM and messaging space.

Frequently Asked Questions

What does Freshworks do?

Freshworks develops cloud-based software products for customer support, IT service management, sales, and marketing. Its tools are sold as subscriptions and are designed primarily for small and mid-sized businesses, though the company has been expanding toward larger enterprise customers over time.

Does FRSH pay dividends?

No, Freshworks does not currently pay a dividend. The company reinvests its capital into product development and growth initiatives rather than distributing cash to shareholders. Investors seeking regular income may want to factor this into their broader portfolio planning.

When does FRSH report earnings?

Freshworks reports financial results on a quarterly basis, in line with standard US-listed company practice. For the exact timing of upcoming earnings releases and management commentary, check the investor relations section of the Freshworks website directly.

Is FRSH a good stock to buy?

The UQS Score rates FRSH as Below Average, reflecting a combination of Neutral Quality and Growth, a Weak Moat, and relatively favorable Risk and Valuation ratings. Whether that profile fits an investor's strategy depends on individual goals and risk tolerance. The full pillar breakdown is available to Pro members.

Is FRSH overvalued?

The UQS Valuation pillar for FRSH is rated Good, suggesting the stock is not significantly overpriced relative to its fundamentals at the time of scoring. That said, valuation is one of five pillars — the complete picture requires reviewing Quality, Growth, Moat, and Risk together.

How does FRSH compare to its competitors?

Among the companies listed alongside FRSH, Braze is the most direct software peer, also operating in customer engagement and marketing automation. Grindr and Ivanhoe Electric operate in unrelated industries. For a side-by-side UQS Score comparison, the full competitor view is available on each company's page.

What is FRSH's market cap bracket?

Freshworks is classified as a mid-cap company. This places it in a segment of the market that typically offers more growth potential than large-caps but with greater volatility and less financial cushion than established mega-cap technology firms.

Who founded Freshworks?

Freshworks was founded by Girish Mathrubootham and Shan Krishnasamy. The company was originally incorporated under the name Freshdesk Inc. before rebranding to Freshworks in 2017. Founding details are widely available through the company's public filings and official communications.

Is FRSH a long-term quality investment?

As a long-term quality indicator, the UQS Score currently rates FRSH as Below Average. The Weak Moat rating is a meaningful consideration for long-term holders, as durable competitive advantages tend to drive sustained value creation over time. Pro members can access the full breakdown to assess each pillar's trajectory.

What is the main competitive advantage of Freshworks?

Freshworks has built its reputation on ease of use and fast deployment, particularly for smaller businesses that lack large IT teams. However, the UQS Moat pillar rates this advantage as Weak, suggesting the company has not yet established the kind of durable differentiation that makes it difficult for customers to switch to alternatives.

What sector does FRSH belong to?

Freshworks belongs to the Technology sector, specifically within the software-as-a-service segment. It competes in markets covering customer support, IT management, and CRM — areas that have seen significant growth and competition as businesses accelerate cloud adoption.

Is FRSH a growth stock or value stock?

Based on UQS pillar labels, FRSH sits in an in-between position — Growth is rated Neutral rather than a standout, while Valuation is rated Good, suggesting it is not priced at a significant premium. This profile may appeal to investors looking for software exposure without paying peak growth-stock multiples.

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Pro Analysis

FRSH — Score History

4045505560Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 18 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 24, 202651.852.024.049.972.479.40.0
May 22, 202651.852.024.049.972.479.8+0.1
May 21, 202651.752.024.049.972.478.9-0.2
May 19, 202651.952.024.049.972.480.0-0.3
May 15, 202652.252.024.049.272.483.4-0.2
May 14, 202652.452.024.049.272.484.4+0.3
May 12, 202652.152.024.049.072.482.7+3.3
May 7, 202648.852.624.043.674.365.0-0.1
May 3, 202648.952.624.043.674.365.7-0.2
Apr 26, 202649.152.624.043.674.367.0+0.1

FRSH — Pillar Breakdown

Quality

52.0/100 (25%)

Freshworks Inc. has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityModerate

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

49.9/100 (20%)

Freshworks Inc. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthModerate

Analyst consensus for future earnings growth.

Risk

72.4/100 (15%)

Freshworks Inc. maintains a reasonable risk profile with manageable debt levels.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

79.4/100 (15%)

Freshworks Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

24/100 (25%)

Freshworks Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for FRSH.

Score Composition

Quality
52.0×25%13.0
Growth
49.9×20%10.0
Risk
72.4×15%10.9
Valuation
79.4×15%11.9
Moat
24.0×25%6.0
Total
51.8Good

Financial Data

More Stock Analysis

How is the FRSH UQS Score Calculated?

The UQS (Unified Quality Score) for Freshworks Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Freshworks Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Freshworks Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.