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FRSHFreshworks Inc.Sell6.2·$9.36-0.95%
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Freshworks Inc. (FRSH) Stock Analysis

Recovery setup

SellVALUE-TRAP 2/5High Confidence

Technology · Software - Application

Sell if holding. At $9.36, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.6%; Sector modifier (Technology): -0.8.

Freshworks provides cloud-based employee experience (Freshservice, Device42, FireHydrant) and customer experience (Freshdesk, Freshsales) SaaS software to nearly 75,000 companies in 170 countries. Revenue of $838.8M in 2025 (16% YoY growth) is subscription-based; over 60% of ARR... Read more

$9.36+8.6% A.UpsideScore 6.2/10#16 of 98 Software - Application
QualityF-score8 / 9FCF yield10.10%
Stop $8.75Target $10.22(analyst − 13%)A.R:R 0.6:1
Analyst target$11.75+25.5%12 analysts
$10.22our TP
$9.36price
$11.75mean
$8
$16

Sell if holding. At $9.36, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.6%; Sector modifier (Technology): -0.8. Chart setup: Death cross but MACD improving, RSI 55. Score 6.2/10, high confidence.

Passes 5/9 gates (clean insider activity, news events none recent, earnings proximity 50d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA) and 8k serious 2.05. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-09
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Jul 28, 202650d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (3/4)
Attractive valuation
Risks
Thin upside margin: 8.6%
Sector modifier (Technology): -0.8
Leverage penalty (D/E 3.8): -1.5

Key Metrics

P/E (TTM)15.5
P/E (Fwd)11.8
Mkt Cap$2.6B
EV/EBITDA54.0
Profit Mgn20.7%
ROE17.3%
Rev Growth16.5%
Beta0.89
DividendNone
Rating analysts22

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C0.78neutral
IV57%elevated

Material Events(8-K, last 90d)

  • 2026-05-05Item 2.05MEDIUM
    Restructuring plan announced affecting approximately 500 employees (~11% of global workforce). Estimated charge of $7-9M in Q2 2026, primarily cash severance. Aimed at streamlining organizational structure and increasing AI and automation leverage.
    SEC filing →
  • 2026-03-05Item 5.02MEDIUM
    Mika Yamamoto (Chief Integrated Customer Growth Officer) leaving March 2, 2026. Ian Tickle (Global Chief of Field Sales) appointed Chief Revenue Officer effective same date, assuming Yamamoto's global sales responsibilities.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

52w Position
1.7
Bollinger
4.1
Support Resistance
4.6

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.1
Obv
1.0
Rsi
4.5
Ma Position
6.0
Macd
6.5
Volume distribution (falling OBV)Below 200-MA, MA slope -6.2%/30d — confirmed downtrend
GatesMomentum 3.6<4.5A.R:R 0.6 < 1.5@spotDeath cross (50MA < 200MA)8K SERIOUS 2.05Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 50d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
55 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $7.93Resistance $10.69

Price Targets

$9
$10
A.Upside+9.2%
A.R:R0.6:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! momentum at 3.6 (below the engine's 4.5 threshold)
! asymmetry at 0.6 (below the engine's 1.5 threshold)@spot
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-28 (50d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is FRSH stock a buy right now?

Sell if holding. At $9.36, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.6%; Sector modifier (Technology): -0.8. Chart setup: Death cross but MACD improving, RSI 55. Prior stop was $8.75. Score 6.2/10, high confidence.

What is the FRSH stock price target?

Take-profit target: $10.22 (+8.6% upside). Prior stop was $8.75. Stop-loss: $8.75.

What are the risks of investing in FRSH?

Thin upside margin: 8.6%; Sector modifier (Technology): -0.8; Leverage penalty (D/E 3.8): -1.5.

Is FRSH overvalued or undervalued?

Freshworks Inc. trades at a P/E of 15.5 (forward 11.8). TrendMatrix value score: 8.2/10. Verdict: Sell.

What do analysts say about FRSH?

22 analysts cover FRSH with a consensus score of 3.7/5. Average price target: $12.

What does Freshworks Inc. do?Freshworks provides cloud-based employee experience (Freshservice, Device42, FireHydrant) and customer experience...

Freshworks provides cloud-based employee experience (Freshservice, Device42, FireHydrant) and customer experience (Freshdesk, Freshsales) SaaS software to nearly 75,000 companies in 170 countries. Revenue of $838.8M in 2025 (16% YoY growth) is subscription-based; over 60% of ARR comes from customers with more than 250 employees.

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