FRSH
ACCE-researchedOverview
ACCE thesis
Freshworks builds cloud-based customer experience software including CRM, helpdesk, and marketing automation tools that compete directly with Salesforce and Zendesk at 40-60% lower prices. The company's unified platform approach eliminates the need for SMBs to cobble together point solutions, creating powerful switching costs once customers integrate multiple Freshworks products. Revenue growth accelerated to 22% in Q3 2024 driven by larger deal sizes and expanding net revenue retention, now at 109% compared to 105% a year ago. Trading at just 5.8x forward sales despite 85% gross margins and newly profitable operations, FRSH offers compelling value as enterprise software multiples compress across the board. Management expects to reach $1 billion in ARR by 2026, implying the stock trades at roughly 2.5x that target.
- moderateEarnings growth stalledRevenue +16% YoY but earnings flat (+0%). Operating leverage absent despite 85% gross margin and 5.5% operating margin.
- moderateValuation multiple compression riskEV/EBITDA 42.9x is elevated for 16% revenue growth. Forward P/E 16.3 leaves limited margin of safety if growth decelerates further.
- moderateShort interest elevated10.7% short float suggests meaningful skepticism. Combined with stalled earnings growth, watch for negative catalysts.
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
Price
Valuation
INVESTORSix independent models converge on one confidence-weighted fair value, with full methodology and editable assumptions.
- +All six models: DCF, reverse DCF, P/E and EV/EBITDA comps, Graham, dividend discount
- +Scenario bands, sensitivity tornado, and the 5-year historical valuation range
- +Editable DCF workbench with saved scenarios
Quality
INVESTORThe full quality picture: conviction breakdown, earnings quality, score history, and backtested returns.
- +Conviction score breakdown and earnings-quality grade
- +Growth / value / quality / momentum component scores
- +90-day score history and score-threshold backtests
Analysts
Wall Street consensus
The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.
- +Price-target low / average / high vs the current price, with implied upside
- +Forward revenue and EPS consensus by fiscal year
- +ACCE fair-value models lined up against the Street
Smart Money
PROFollow the institutions: 13F position changes, insider trades, and active 13D activist filings.
- +Quarter-over-quarter institutional position changes
- +Recent open-market insider transactions
- +Active 13D activist filings and top holders
Compare
Where it sits vs peers
Algorithmic peers (6)
| Ticker | Company | Mcap | P/E | ROE | D/E | Yield | Quality | |
|---|---|---|---|---|---|---|---|---|
| XRO.AX | Xero Limited | $7.9B | - | 4.4% | 0.30 | 0.0% | - | Compare |
| GRAB | Grab Holdings Limited Class A Ordinary Shares | $11.4B | 25.4 | 7.7% | 0.27 | 0.0% | - | Compare |
| FROG | JFrog Ltd. Ordinary Shares | $11.4B | - | -4.9% | 0.01 | 0.0% | - | Compare |
| CHYM | Chime Financial Inc. Class A Common Stock | $11.5B | 5.7 | -1.3% | 0.01 | 0.0% | - | Compare |
| GWRE | Guidewire Software Inc. Common Stock | $11.8B | 89.1 | 10.5% | 0.57 | 0.0% | - | Compare |
| FIG | Figma Inc. Class A Common Stock | $12.1B | - | -108.6% | 0.00 | 0.0% | - | Compare |
Sector report card
Where FRSH ranks against its sector peers on each metric.
News and Record
Press releases mentioning this company
- GlobeNewswire•Sep 3, 2026Freshworks Announces Inducement Grant under Listing Rule 5635(C)(4) of the Nasdaq Stock Market
- GlobeNewswire•Aug 6, 2026Freshworks Achieves FedRAMP® "In Process" Designation for Freshservice, Advancing AI-Powered Service Operations for the Public Sector
- GlobeNewswire•Aug 6, 2026Freshworks to Participate in Oppenheimer 29th Annual Technology, Internet & Communications Conference
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See pricingRecent performance
SEC filings
Recent ACCE blog coverage
- Our Small-Cap Turnaround Picks: Early Results and Lessons LearnedAnalyzing our recent small-cap stock picks including SNAP, OPRA, and FRSH. What's working, what's not, and key lessons for turnaround investing.2026-04-20