Update shared on13 Sep 2025
Fair value Decreased 2.23%Analysts have modestly lowered Freshworks’ price target from $20.69 to $20.23, primarily due to sector-wide multiple compression rather than company-specific concerns, as Freshworks’ financial outlook remains stable.
Analyst Commentary
- Peer multiple compression within the sector is negatively impacting valuation assumptions.
- Freshworks maintains unique positioning as an uncomplicated, AI-native service platform, filling a gap in the market.
- The company's value proposition lies between unscalable point solutions and complex, expensive platforms.
- Minimal changes to financial forecasts post-analyst day event.
- Price target lowered to reflect sector dynamics despite steady company-specific expectations.
What's in the News
- Completed share repurchase of 15,898,023 shares (5.29% outstanding) totaling $240.89 million as part of the ongoing buyback program.
- Announced a multi-year partnership with McLaren Racing, integrating Freshservice for improved IT operations and securing brand presence on McLaren Formula 1 cars and team kits.
- Launched Freshservice Journeys, an AI-powered no-code solution to automate and personalize complex employee processes across departments.
- Raised full-year 2025 revenue guidance to $822.9 million–$828.9 million.
- Issued Q3 2025 revenue guidance of $207.0 million–$210.0 million and hosted an Analyst/Investor Day detailing product innovation and growth strategy.
Valuation Changes
Summary of Valuation Changes for Freshworks
- The Consensus Analyst Price Target has fallen slightly from $20.69 to $20.23.
- The Consensus Revenue Growth forecasts for Freshworks has significantly risen from 12.3% per annum to 13.8% per annum.
- The Net Profit Margin for Freshworks has fallen slightly from 13.09% to 12.66%.
Disclaimer
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