An Overview of Freshworks's Earnings
Benzinga Insights 9 months ago
Earnings
Freshworks (NASDAQ:FRSH) is preparing to release its quarterly earnings on Tuesday, 2026-02-10. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Freshworks to report an earnings per share (EPS) of $0.05.
Investors in Freshworks are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Earnings Track Record
During the last quarter, the company reported an EPS beat by $0.10, leading to a 1.9% drop in the share price on the subsequent day.
Here's a look at Freshworks's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.06 | 0.04 | 0.13 | 0.10 |
| EPS Actual | 0.16 | 0.18 | 0.18 | 0.14 |
| Price Change % | -2.00 | -2.00 | 3.00 | 0.00 |
Tracking Freshworks's Stock Performance
Shares of Freshworks were trading at $8.92 as of February 06. Over the last 52-week period, shares are down 52.38%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analysts' Perspectives on Freshworks
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Freshworks.
The consensus rating for Freshworks is Neutral, derived from 2 analyst ratings. An average one-year price target of $15.0 implies a potential 68.16% upside.
Comparing Ratings with Competitors
In this analysis, we delve into the analyst ratings and average 1-year price targets of Agilysys, Vertex and AvePoint, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Agilysys, with an average 1-year price target of $140.0, suggesting a potential 1469.51% upside.
- Analysts currently favor an Neutral trajectory for Vertex, with an average 1-year price target of $20.0, suggesting a potential 124.22% upside.
- Analysts currently favor an Buy trajectory for AvePoint, with an average 1-year price target of $18.33, suggesting a potential 105.49% upside.
Peers Comparative Analysis Summary
The peer analysis summary presents essential metrics for Agilysys, Vertex and AvePoint, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Freshworks | Neutral | 15.30% | $182.16M | -0.51% |
| Agilysys | Buy | 15.57% | $50.24M | 3.25% |
| Vertex | Neutral | 12.72% | $121.32M | 1.58% |
| AvePoint | Buy | 23.56% | $81.58M | 2.86% |
Key Takeaway:
Freshworks ranks at the top for Revenue Growth among its peers. It is at the bottom for Gross Profit and Return on Equity.
Delving into Freshworks's Background
Freshworks Inc provides software as a service platform that enables small and medium-sized businesses to support customers through e-mail, phone, website, and social networks. It offers solutions that serve the needs of users in the CS and ITSM categories and has also expanded its offering with Sales and Marketing automation products. These product offerings enable organizations to acquire, engage, and serve their customers and employees. The group derives revenue from North America, Europe, the Middle East and Africa, Asia Pacific, and Other regions.
Freshworks: A Financial Overview
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Freshworks's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2025, the company achieved a revenue growth rate of approximately 15.3%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Freshworks's net margin excels beyond industry benchmarks, reaching -2.18%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Freshworks's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of -0.51%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Freshworks's ROA stands out, surpassing industry averages. With an impressive ROA of -0.33%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.05, Freshworks adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Freshworks visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.