Is the business good?
How good a business is FRSH?
Freshworks Inc. earns 5.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.1%
Return on invested capital · cost of capital 9.0% · 3.9 points below what the capital costs: growth destroys value
- Operating margin
- 1.8%
Operating margin · Software - Application median 8.2% · 12 months to Q1 2026
- Cash conversion
- 1.32×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −6.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −22% |
| FY2021 | −55% |
| FY2022 | −47% |
| FY2023 | −29% |
| FY2024 | −19% |
| FY2025 | 1.6% |
Details›
- Gross margin12 months to Q1 2026
- 85%
- Operating margin12 months to Q1 2026
- 1.8%
- Net margin12 months to Q1 2026
- 21%
- Free cash flow margin
- 27%
- R&D as % of revenue
- 20%
- Revenue, trailing twelve months
- $871M
- Free cash flow, trailing twelve months
- $238M
- Net income, trailing twelve months
- $180M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #34 of 90 by Smart Score