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Freshworks Inc. (FRSH) Stock Analysis

Recovery setup

SellVALUE-TRAP 1/5Moderate Confidence

Technology · Software - Application

Earnings in 4 days (2026-05-05). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Momentum 3.5/10 is below the 5.0 floor at $8.74 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 4.1): -1.5; Earnings in 4 days (event risk).

Freshworks provides AI-powered SaaS software for employee experience (Freshservice IT service management, Device42, FireHydrant) and customer experience (Freshdesk suite) to approximately 75,000 companies in approximately 170 countries. Revenue was $838.8M in 2025 (16% growth),... Read more

$8.74+23.4% A.UpsideScore 5.9/10#28 of 96 Software - Application
Stop $8.11Target $10.77(analyst − 13%)A.R:R 1.7:1
Analyst target$12.38+41.7%13 analysts
$10.77our TP
$8.74price
$12.38mean
$18

Sell if holding. Momentum 3.5/10 is below the 5.0 floor at $8.74 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 4.1): -1.5; Earnings in 4 days (event risk). Chart setup: Death cross but MACD improving, RSI 65. Score 5.9/10, moderate confidence.

Passes 5/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA) and earnings proximity 4d<=7d. Suitability: aggressive.

Thesis

Rewards
Strong earnings beat streak (3/4)
Attractive valuation
Analyst upside: 23%
Risks
Leverage penalty (D/E 4.1): -1.5
Earnings in 4 days (event risk)
Earnings estimates trending DOWN

Key Metrics

P/E (TTM)13.0
P/E (Fwd)11.8
Mkt Cap$2.3B
EV/EBITDA49.3
Profit Mgn21.9%
ROE16.9%
Rev Growth14.5%
Beta0.87
DividendNone
Rating analysts23

Quality Signals

Piotroski F8/9

Options Flow

P/C2.00bearish
IV99%elevated
Max Pain$20+128.8% vs spot

Material Events(8-K, last 90d)

  • 2026-03-05Item 5.02LOW
    Mika Yamamoto (Chief Integrated Customer Growth Officer) departed March 2, 2026. Ian Tickle (Global Chief of Field Sales) named Chief Revenue Officer effective same date, assuming her responsibilities.
    SEC filing →

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

Rating Breakdown

2 floor-breakers

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

52w Position
0.8
Bollinger
1.9
Support Resistance
2.8
Gap
4.0

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

Volume
0.0
Obv
1.0
Rsi
3.5
Ma Position
6.0
Macd
6.8
Volume distribution (falling OBV)Below 200-MA, MA slope -8.5%/30d — confirmed downtrend
GatesMomentum 3.5<4.5Death cross (50MA < 200MA)EARNINGS PROXIMITY 4d<=7dA.R:R 1.7 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
65 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $7.51Resistance $9.19

Price Targets

$8
$11
A.Upside+23.2%
A.R:R1.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Momentum score 3.5/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA
! EARNINGS_PROXIMITY:4d<=7d

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-05 (4d)

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. Momentum 3.5/10 is below the 5.0 floor at $8.74 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 4.1): -1.5; Earnings in 4 days (event risk). Chart setup: Death cross but MACD improving, RSI 65. Prior stop was $8.11. Score 5.9/10, moderate confidence.

What is the FRSH stock price target?

Take-profit target: $10.77 (+23.4% upside). Prior stop was $8.11. Stop-loss: $8.11.

What are the risks of investing in FRSH?

Leverage penalty (D/E 4.1): -1.5; Earnings in 4 days (event risk); Earnings estimates trending DOWN.

Is FRSH overvalued or undervalued?

Freshworks Inc. trades at a P/E of 13.0 (forward 11.8). TrendMatrix value score: 7.6/10. Verdict: Sell.

What do analysts say about FRSH?

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

What does Freshworks Inc. do?Freshworks provides AI-powered SaaS software for employee experience (Freshservice IT service management, Device42,...

Freshworks provides AI-powered SaaS software for employee experience (Freshservice IT service management, Device42, FireHydrant) and customer experience (Freshdesk suite) to approximately 75,000 companies in approximately 170 countries. Revenue was $838.8M in 2025 (16% growth), from annual and monthly per-seat subscriptions; over 60% of ARR comes from customers with more than 250 employees.

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