Freshworks (NASDAQ:FRSH) Releases FY 2025 Earnings Guidance

Key Points

• Freshworks updated its FY 2025 earnings guidance, projecting earnings per share (EPS) of 0.560-0.580, slightly above the consensus estimate of 0.569, and revenue guidance of $822.9 million-$828.9 million, exceeding the consensus of $819.3 million.
• Analysts have given Freshworks a consensus rating of "Moderate Buy" with an average price target of $20.07, indicating positive growth expectations despite varying target price adjustments among firms.
• Chairman Rathnagirish Mathrubootham recently sold 70,997 shares and reduced his ownership by 8.92%, highlighting insider activity amidst the company's market performance.

Freshworks (NASDAQ:FRSH - Get Free Report) issued an update on its FY 2025 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.560-0.580 for the period, compared to the consensus EPS estimate of 0.569. The company issued revenue guidance of $822.9 million-$828.9 million, compared to the consensus revenue estimate of $819.3 million. Freshworks also updated its Q3 2025 guidance to 0.120-0.140 EPS.

Freshworks Stock Down 2.4%

Shares of NASDAQ:FRSH traded down $0.31 during trading on Friday, hitting $12.68. 7,737,112 shares of the stock traded hands, compared to its average volume of 5,189,084. The company has a market cap of $3.74 billion, a price-to-earnings ratio of -70.44 and a beta of 0.95. The company has a fifty day moving average price of $14.79 and a two-hundred day moving average price of $15.29. Freshworks has a 52-week low of $10.81 and a 52-week high of $19.77.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its earnings results on Tuesday, July 29th. The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.06. The firm had revenue of $204.68 million during the quarter, compared to analyst estimates of $198.85 million. Freshworks had a negative net margin of 7.02% and a negative return on equity of 2.56%. The business's quarterly revenue was up 19.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.08 EPS. On average, equities research analysts predict that Freshworks will post -0.19 EPS for the current fiscal year.

Analyst Ratings Changes

FRSH has been the subject of several recent analyst reports. Wall Street Zen raised shares of Freshworks from a "buy" rating to a "strong-buy" rating in a report on Sunday, June 29th. JMP Securities reissued a "market outperform" rating and issued a $27.00 price target on shares of Freshworks in a report on Wednesday, April 30th. Oppenheimer cut their price target on shares of Freshworks from $24.00 to $19.00 and set an "outperform" rating for the company in a report on Wednesday, April 9th. Morgan Stanley boosted their price target on shares of Freshworks from $14.00 to $18.00 and gave the stock an "equal weight" rating in a report on Thursday, May 1st. Finally, Piper Sandler set a $25.00 price target on shares of Freshworks and gave the stock an "overweight" rating in a report on Wednesday. One analyst has rated the stock with a sell rating, five have issued a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $20.29.

Insider Activity at Freshworks

In other news, Director Johanna Flower sold 8,000 shares of the business's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $14.80, for a total transaction of $118,400.00. Following the transaction, the director owned 48,094 shares of the company's stock, valued at approximately $711,791.20. The trade was a 14.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Jennifer H. Taylor sold 4,685 shares of the business's stock in a transaction dated Friday, July 11th. The shares were sold at an average price of $14.27, for a total transaction of $66,854.95. Following the transaction, the director directly owned 44,218 shares in the company, valued at approximately $630,990.86. The trade was a 9.58% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 197,642 shares of company stock worth $3,095,380 over the last 90 days. Corporate insiders own 11.17% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Focus Partners Wealth increased its stake in Freshworks by 20.2% during the first quarter. Focus Partners Wealth now owns 12,399 shares of the company's stock worth $175,000 after purchasing an additional 2,086 shares during the period. Woodline Partners LP increased its stake in Freshworks by 13.5% during the first quarter. Woodline Partners LP now owns 21,569 shares of the company's stock worth $304,000 after purchasing an additional 2,571 shares during the period. Goldman Sachs Group Inc. increased its stake 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 purchasing an additional 578,628 shares during the period. Amundi increased its stake in Freshworks by 1.3% during the first quarter. Amundi now owns 80,074 shares of the company's stock worth $1,049,000 after purchasing an additional 1,040 shares during the period. Finally, Royal Bank of Canada increased its stake in Freshworks by 120.8% during the first quarter. Royal Bank of Canada now owns 21,388 shares of the company's stock worth $302,000 after purchasing an additional 11,703 shares during the period. Institutional investors and hedge funds own 75.58% of the company's stock.

About Freshworks

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.