Freshworks (NASDAQ:FRSH) Updates FY 2025 Earnings Guidance

Key Points

• Freshworks issued its FY 2025 earnings guidance with EPS expectations of 0.560-0.580, significantly above the consensus estimate of 0.300, and revenue guidance of $822.9 million-$828.9 million, closely aligning with the consensus revenue estimate.
• The company's Q3 2025 guidance shows an expected EPS of 0.120-0.140, indicating positive outlook within the fiscal year.
• Institutional investors hold 75.58% of Freshworks' stock, reflecting strong investor confidence in the company's growth potential.

Freshworks (NASDAQ:FRSH - Get Free Report) updated its FY 2025 earnings guidance on Wednesday. The company provided EPS guidance of 0.560-0.580 for the period, compared to the consensus EPS estimate of 0.300. The company issued revenue guidance of $822.9 million-$828.9 million, compared to the consensus revenue estimate of $825.2 million. Freshworks also updated its Q3 2025 guidance to 0.120-0.140 EPS.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. JMP Securities reissued a "market outperform" rating and issued a $27.00 target price on shares of Freshworks in a research note on Friday, September 12th. Cantor Fitzgerald raised Freshworks to an "overweight" rating and set a $20.00 price target for the company in a research note on Tuesday, June 3rd. Morgan Stanley reduced their price objective on shares of Freshworks from $18.00 to $16.00 and set an "equal weight" rating on the stock in a research note on Friday, September 12th. Wall Street Zen cut shares of Freshworks from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 23rd. Finally, Robert W. Baird cut their target price on shares of Freshworks from $18.00 to $16.00 and set a "neutral" rating on the stock in a report on Monday. Eight equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Freshworks has a consensus rating of "Moderate Buy" and an average target price of $20.00.

Freshworks Stock Performance

FRSH stock traded up $0.45 during mid-day trading on Thursday, hitting $13.17. 5,105,485 shares of the company were exchanged, compared to its average volume of 3,674,877. Freshworks has a 1-year low of $10.81 and a 1-year high of $19.77. The firm's 50 day simple moving average is $13.39 and its 200 day simple moving average is $14.20. The firm has a market cap of $3.84 billion, a P/E ratio of -73.16 and a beta of 0.94.

Freshworks (NASDAQ:FRSH - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.06. The company had revenue of $204.68 million during the quarter, compared to the consensus estimate of $198.85 million. Freshworks had a negative net margin of 7.02% and a negative return on equity of 2.56%. The firm's revenue was up 19.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.08 earnings per share. Freshworks has set its FY 2025 guidance at 0.560-0.580 EPS. Q3 2025 guidance at 0.120-0.140 EPS. On average, equities research analysts predict that Freshworks will post -0.19 EPS for the current fiscal year.

Insider Buying and Selling at Freshworks

In other news, Director Zachary Nelson sold 8,433 shares of the firm's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $13.14, for a total transaction of $110,809.62. Following the completion of the transaction, the director directly owned 38,870 shares of the company's stock, valued at $510,751.80. This trade represents a 17.83% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Johanna Flower sold 8,000 shares of the business's stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $14.80, for a total transaction of $118,400.00. Following the completion of the sale, the director directly owned 48,094 shares in the company, valued at approximately $711,791.20. This represents a 14.26% decrease in their position. The disclosure for this sale can be found here. Insiders sold 81,771 shares of company stock valued at $1,139,991 in the last 90 days. 11.17% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Freshworks

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Squarepoint Ops LLC boosted its stake in shares of Freshworks by 345.1% during the 2nd quarter. Squarepoint Ops LLC now owns 1,835,798 shares of the company's stock worth $27,372,000 after buying an additional 1,423,391 shares during the last quarter. Cubist Systematic Strategies LLC acquired a new stake in shares of Freshworks in the second quarter valued at about $9,489,000. Goldman Sachs Group Inc. raised its holdings in Freshworks by 35.1% during the first quarter. Goldman Sachs Group Inc. now owns 2,225,056 shares of the company's stock worth $31,396,000 after acquiring an additional 578,628 shares in the last quarter. Topline Capital Management LLC boosted its position in Freshworks by 27.2% during the second quarter. Topline Capital Management LLC now owns 1,933,213 shares of the company's stock valued at $28,824,000 after purchasing an additional 413,213 shares during the last quarter. Finally, Bank of America Corp DE grew its stake in Freshworks by 41.3% in the second quarter. Bank of America Corp DE now owns 1,185,767 shares of the company's stock valued at $17,680,000 after purchasing an additional 346,772 shares in the last quarter. 75.58% of the stock is currently owned by institutional investors and hedge funds.

Freshworks Company Profile

Freshworks Inc, a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels.