FRSHFreshworks Inc.
Services-Prepackaged Software
- Revenue
- $839M
- 16% YoY
- Operating margin
- 1.6%
- 108% YoY
- EBITDA
- $39M
- 133% YoY
- Market cap
- $2.3B
- Employees
- 250
- $3M revenue each
- Net debt / EBITDA
- —
- AI in 10-K
- 19.8
- mentions per 10K words
Takeover score 3 of 13
Fixable underperformance 2 of 7
- TSR below peersNo—3+ of last 5 years
- High CEO pay despite TSRNo—Median CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo132% of net incomeCash flow under 80% of net income
- Dilutive SBCYes18% of revenueOver 10% of revenue
- Payouts exceed cash flowYes159% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyNo13% of assetsOver 40% of assets
- Shareholder dissentNo87% lowest supportAny vote under 80% support
Buyer economics 1 of 4
- Low revenue per employeeNo$3M · 98th pctBottom quartile of its SIC industry
- Quiet on AINo19.8 per 10K words · 98th pctBottom quartile of AI mentions in 10-Ks
- Net cashNo—More cash than debt, positive EBITDA
- Buyout-sizedYes$2.3B market capMarket cap $500M–$5B
Catalysts 0 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingNo$3M netNet sales over $10M in 12 months
Financials
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $371M | $498M | $596M | $720M | $839M | 16% |
| Operating income | −$205M | −$233M | −$170M | −$139M | $13M | 110% |
| Net income | −$192M | −$232M | −$137M | −$95M | $184M | 293% |
| Operating cash flow | $11M | −$3M | $86M | $161M | $242M | 51% |
| Capex | $6M | $7M | $2M | $9M | $6M | 38% |
| Stock-based comp | $173M | $208M | $211M | $217M | $147M | 32% |
| Buybacks | — | $0 | $0 | $14M | $386M | 2721% |
Deal filings
None.
13D filers
| Filed | Filer | Form | Stake | Intent |
|---|---|---|---|---|
| Jul 24, 2025 | SC US (TTGP), LTD. | SCHEDULE 13D/A | 2.9% | Passive |
| Feb 24, 2025 | Peak XV Partners V Ltd. | SCHEDULE 13D/A | 4.9% | Passive |
| Jan 29, 2025 | Peak XV Partners V Ltd. | SCHEDULE 13D | 5.0% | Passive |
| Nov 7, 2023 | SC US (TTGP), LTD. | SC 13D/A | 9.7% | Passive |
| Jul 27, 2023 | SEQUOIA CAPITAL INDIA V LTD. | SC 13D/A | 8.1% | Passive |
| Jul 25, 2023 | SC US (TTGP), LTD. | SC 13D/A | 11.5% | Passive |
| Nov 14, 2022 | SC US (TTGP), LTD. | SC 13D/A | 20.0% | Passive |
| Mar 21, 2022 | SC US (TTGP), LTD. | SC 13D | 23.8% | Passive |
Insider trading
- Open-market buys, 12 mo
- $5M · 3
- Open-market sells, 12 mo
- $2M · 11
- Net
- $3M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2025 | — | — | 26 | — |
| FY2024 | — | — | 34 | — |
| FY2023 | — | — | 49 | — |
| FY2022 | — | — | 31 | — |
| FY2021 | — | — | 55 | — |