Freshworks (NASDAQ:FRSH) Updates Q3 2025 Earnings Guidance

Key Points

• Freshworks updated its Q3 2025 earnings guidance, projecting an earnings per share (EPS) of 0.120-0.140 and revenue guidance of $207.0 million-$210.0 million, both slightly below consensus estimates.
• Freshworks stock experienced a 0.6% drop on Tuesday, trading at $13.91 with a P/E ratio of -57.96 and market capitalization of $4.10 billion.
• Institutional investors, such as Goldman Sachs, have increased their holdings in Freshworks, while insider trading saw directors sell a combined 206,075 shares in the past ninety days.

Freshworks (NASDAQ:FRSH - Get Free Report) updated its third quarter 2025 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 0.120-0.140 for the period, compared to the consensus estimate of 0.127. The company issued revenue guidance of $207.0 million-$210.0 million, compared to the consensus revenue estimate of $208.3 million. Freshworks also updated its FY 2025 guidance to 0.560-0.580 EPS.

Analyst Upgrades and Downgrades

FRSH has been the topic of a number of research analyst reports. Morgan Stanley boosted their target price on Freshworks from $14.00 to $18.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 1st. JMP Securities reiterated a "market outperform" rating and issued a $27.00 price objective on shares of Freshworks in a research report on Wednesday, April 30th. Cantor Fitzgerald upgraded shares of Freshworks to an "overweight" rating and set a $20.00 target price for the company in a report on Tuesday, June 3rd. Oppenheimer reduced their price target on shares of Freshworks from $24.00 to $19.00 and set an "outperform" rating on the stock in a report on Wednesday, April 9th. Finally, Wells Fargo & Company raised their price objective on shares of Freshworks from $11.00 to $12.00 and gave the stock an "underweight" rating in a research note on Wednesday, April 30th. One research analyst has rated the stock with a sell rating, five have given a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $20.29.

Freshworks Trading Down 2.4%

Shares of Freshworks stock traded down $0.31 during trading hours on Friday, reaching $12.68. 7,737,112 shares of the company's stock were exchanged, compared to its average volume of 5,189,084. The firm has a market capitalization 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 of $14.79 and a 200-day moving average 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 issued its quarterly earnings results on Tuesday, July 29th. The company reported $0.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.12 by $0.06. Freshworks had a negative return on equity of 2.56% and a negative net margin of 7.02%. The firm had revenue of $204.68 million for the quarter, compared to analyst estimates of $198.85 million. During the same period last year, the company earned $0.08 EPS. The firm's quarterly revenue was up 19.6% on a year-over-year basis. On average, equities research analysts anticipate that Freshworks will post -0.19 earnings per share for the current fiscal year.

Insider Transactions at Freshworks

In other news, Director Zachary Nelson sold 8,433 shares of the company'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 $124,808.40. Following the completion of the sale, the director directly owned 38,870 shares in the company, valued at $575,276. This represents a 17.83% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Jennifer H. Taylor sold 4,685 shares of Freshworks stock in a transaction on Friday, July 11th. The shares were sold at an average price of $14.27, for a total value of $66,854.95. Following the completion of the transaction, the director owned 44,218 shares in the company, valued at $630,990.86. The trade was a 9.58% decrease in their position. The disclosure for this sale can be found here. Insiders sold 197,642 shares of company stock valued at $3,095,380 in the last quarter. Insiders own 11.17% of the company's stock.

Institutional Investors Weigh In On Freshworks

Several institutional investors and hedge funds have recently added to or reduced their stakes in FRSH. Goldman Sachs Group Inc. lifted its stake in shares of Freshworks by 35.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,225,056 shares of the company's stock valued at $31,396,000 after purchasing an additional 578,628 shares in the last quarter. Amundi raised its holdings in Freshworks by 1.3% in the first quarter. Amundi now owns 80,074 shares of the company's stock valued at $1,049,000 after buying an additional 1,040 shares during the period. Woodline Partners LP lifted its position in Freshworks by 13.5% during the first quarter. Woodline Partners LP now owns 21,569 shares of the company's stock valued at $304,000 after buying an additional 2,571 shares in the last quarter. Royal Bank of Canada grew 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 buying an additional 11,703 shares during the period. Finally, Focus Partners Wealth increased its position in shares of Freshworks by 20.2% in the first quarter. Focus Partners Wealth now owns 12,399 shares of the company's stock worth $175,000 after acquiring an additional 2,086 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.