Freshworks, Inc. (FRSH)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
$12.73-4.72%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
QuarterlyIQ Insights · FRSH
What must go right, what could break, what the price assumes, and what evidence comes next.
The current health of the standing investment case.
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
One-year growth currently built into the price, compared with our model's estimate.
| Measure | Marker shape | Value |
|---|---|---|
| Growth built into the price | circle | 6.6% |
| Our one-year growth estimate | diamond | 16.2% |
For each item: what to watch, what would become a concern, and what would make it less concerning.
A reporting-risk estimate, not a forecast of the stock-price response.
Historical relationships that met the evidence threshold. They do not prove cause or forecast a move.
Usually moved in the same direction.
Price observations: 365 days
Most sensitive to the broad stock market.
Based on historical daily prices through 2026-09-04.
Past price behavior in dollars on a $10,000 position. This does not measure permanent business risk.
How much price usually moves either way.
Use the underlying financial and sector pages to investigate the cause.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Growth built into the price is above our model estimate.
The price assumes 9.6 percentage points less one-year growth.
The one-year revenue growth assumption on Valuation.
Model as of 2026-09-04 · Compared with 120 industry peers · Company calendar date is not available
FRSH — restructuring
Dated 2026-08-04
Costs Associated with Exit or Disposal Activities. In May 2026, the Company announced a restructuring plan (the Plan) to streamline the Company’s organizational efforts and product development process, as well as increase leverage of AI and automation across the business. During the three and six months ended June 30, 2026, we recognized $7.0 million in restructuring charges primarily associated with employee severance and benefit costs, in our condensed consolidated statements of operations.…
Why it matters: A drop below this level may show customers are leaving or spending less. This could hurt future growth.
Worry ifNet dollar retention rate was below 104%.
Less concerning ifNet dollar retention rate remains at or above 104%.
Why it matters: Higher charges may show bigger problems and hurt profits. This raises worries about how well management is restructuring.
Worry ifRestructuring charges were above $7 million in Q3.
Less concerning ifRestructuring charges were below $7 million in Q3.
Why it matters: A drop in adoption may show less customer interest in AI features. This could hurt future growth and new ideas.
Worry ifAI Copilot adoption rate was below 71% for new enterprise deals.
Less concerning ifAI Copilot adoption rate remains at or above 71% for new enterprise deals.
Why it matters: Updates on the stock buyback program may show confidence in the company. This could help the stock price.
Supportive ifManagement announces the start of the stock buyback program.
Worry ifNo updates or delays in the stock repurchase program are announced.
A larger daily loss that occurred about once in every 20 trading days.
Deepest peak-to-trough drop in the last year.
| Measure | Value | Meaning |
|---|---|---|
| Typical day | ±$213 on $10,000 · ±2.1% | How much price usually moves either way. |
| Bad day | $494 loss on $10,000 · 4.9% | A larger daily loss that occurred about once in every 20 trading days. |
| Largest peak-to-trough drop in the past year | $4,881 loss on $10,000 · 48.8% | Deepest peak-to-trough drop in the last year. |
Past year. 1.00 means similar movement; 1.20 means about 20% more.
Past year. 1.00 means similar movement to the sector. This is secondary context.
Latest 30 trading days, shown as an annual percentage.
Latest 252 trading days, shown as an annual percentage.
20-trading-day average in US dollars.
Trading days used by the source risk snapshot.
Past results, not a forecast. Not investment advice.
Why it matters: The restructuring plan aims to cut costs. It also wants to improve operations. Success here affects future profits.
Watch forManagement reports a big rise in operating income. They are getting closer to breakeven.
Also watch forOperating income is still negative or gets worse. This shows the restructuring is not working.
Why it matters: If the sector's revenue growth slows, it may affect Freshworks' performance. A slowdown could signal broader challenges.
Worry ifSector revenue growth has been below average for two months in a row.
Less concerning ifSector revenue growth remains above its median for two consecutive months.
Why it matters: Strong growth in AI revenue shows good product innovation and market demand.
Supportive ifManagement says AI Copilot revenue will grow a lot in future earnings.
Worry ifAI Copilot revenue growth is slow or going down.
Why it matters: Better gross profit from AI and automation will show if Freshworks is improving.
Supportive ifGross profit goes up a lot in the next quarter, showing gains from AI and automation.
Worry ifGross profit drops or stays the same despite efforts in AI and automation.
Why it matters: A drop below this level could signal weakening demand or execution issues. It would be the first sign of deceleration after consistent growth.
Worry ifQ3 revenue growth was below 14% compared to last year.
Less concerning ifQ3 revenue growth meets or exceeds 14% year-over-year.
Why it matters: This guidance will show if Freshworks can maintain its growth momentum. It is a key indicator of business health.
Supportive ifQ3 revenue guidance is confirmed to be between $244.5 million and $245.5 million.
Worry ifQ3 revenue guidance falls below 14% year-over-year growth.
Why it matters: Updates on this program will show how Freshworks uses its money and helps shareholders.
Supportive ifThe company bought back its shares.
Worry ifNo news about the stock repurchase program.