Freshworks (NASDAQ:FRSH) Updates Q3 2025 Earnings Guidance

Key Points

• Freshworks updated its Q3 2025 earnings guidance, projecting an EPS of 0.120-0.140, significantly higher than the consensus estimate of 0.060, and set revenue guidance at $207.0 million-$210.0 million.
• As of now, Freshworks has an average rating of "Moderate Buy" from analysts, with a target price of $20.00, despite some downgrades from various firms.
• In the second quarter, hedge funds increased their stakes in Freshworks significantly, with Squarepoint Ops LLC raising its holdings by 345.1% and other institutional investors holding 75.58% of the stock.

Freshworks (NASDAQ:FRSH - Get Free Report) issued an update on its third quarter 2025 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.120-0.140 for the period, compared to the consensus estimate of 0.060. The company issued revenue guidance of $207.0 million-$210.0 million, compared to the consensus revenue estimate of $208.8 million. Freshworks also updated its FY 2025 guidance to 0.560-0.580 EPS.

Analyst Ratings Changes

Several equities research analysts have weighed in on FRSH shares. Needham & Company LLC reissued a "buy" rating and set a $25.00 price target on shares of Freshworks in a research report on Friday, September 12th. Wall Street Zen cut shares of Freshworks from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 23rd. Robert W. Baird dropped their price target on shares of Freshworks from $18.00 to $16.00 and set a "neutral" rating for the company in a research report on Monday. JMP Securities reissued a "market outperform" rating and set a $27.00 price target on shares of Freshworks in a research report on Friday, September 12th. Finally, Morgan Stanley dropped their target price on shares of Freshworks from $18.00 to $16.00 and set an "equal weight" rating for the company in a research report on Friday, September 12th. Eight research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Freshworks has an average rating of "Moderate Buy" and an average target price of $20.00.

Freshworks Stock Performance

FRSH stock opened at $12.56 on Wednesday. Freshworks has a one year low of $10.81 and a one year high of $19.77. The company's fifty day moving average price is $13.47 and its 200-day moving average price is $14.23. The company has a market capitalization of $3.66 billion, a PE ratio of -69.77 and a beta of 0.94.

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

Insider Transactions at Freshworks

In other news, Director Barry L. Padgett sold 7,558 shares of the company's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $15.14, for a total value of $114,428.12. Following the transaction, the director directly owned 32,635 shares in the company, valued at approximately $494,093.90. This represents a 18.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Johanna Flower sold 8,000 shares of the company's stock in a transaction dated 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 of the company's stock, valued at approximately $711,791.20. This trade represents a 14.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 79,181 shares of company stock valued at $1,107,538. Company insiders own 11.17% of the company's stock.

Institutional Trading of Freshworks

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

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.

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