Freshworks Inc. (FRSH): one to watch?

Cheap and profitable with insider buying and buybacks, but growth is decelerating and AI-disruption fears on its per-seat pricing model are unresolved.

👀 WATCH Fundamentals70/100

Down 80% from its all-time high of $50.25 — now $10.06

Why FRSH dropped

FRSH's long slide since 2021 reflects the broad collapse in SaaS valuations, but the more recent 2026 weakness is due to a specific, repeated pattern: guidance that missed estimates, an 11% workforce cut, and analyst downgrades tied to fears that AI ("vibe coding," seat-compression) will shrink demand for its per-user support/IT software.

Fwd P/E 12.6Op margin -3.5%Rev growth 16.5%Debt/equity 3.8%Analyst upside 16.8%

How this scored 70/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 20.7%

✅ Generates cash Free cash flow $264M

✅ Not drowning in debt Debt/equity 3.8% (limit 200%)

✅ Can pay its bills Current ratio 1.9 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 13/25

Operating margin -3.5% 0/9

Net profit margin 20.7% 8/8

Return on equity 17.3% 5/8

Growth Is it getting bigger, or dying? 17/25

Revenue growth 16.5% 6/9

Earnings growth unknown 2/8

Expected profit change 31.0% 8/8

Value Is it cheap right now? 18/25

Forward P/E 12.6 9/10

PEG ratio 0.6 8/8

Analyst target upside 16.8% 2/7

Balance sheet Will it survive? 22/25

Debt / equity 3.8% 10/10

Current ratio 1.9 5/8

Free cash flow $264M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-23. Research only — not financial advice.