FRSHFreshworks Inc.
Is the business good?
A genuinely good business: 7 of 9 health tests passed and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Margin-driven, fat margins on slower asset turns. ROE 13% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FRSH?
Freshworks Inc. earns 10% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 1.3 points above what the capital costs: growth creates value
- Operating margin
- 3.4%
Operating margin · Software - Application median 6.4% · 12 months to Q2 2026
- Share count, year on year
- −7.3%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 20%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −22% |
| FY2021 | −55% |
| FY2022 | −47% |
| FY2023 | −29% |
| FY2024 | −19% |
| FY2025 | 1.6% |
Details›
- Gross margin12 months to Q2 2026
- 85%
- Operating margin12 months to Q2 2026
- 3.4%
- Net margin12 months to Q2 2026
- 20%
- Free cash flow margin
- 26%
- R&D as % of revenue
- 20%
- Revenue, trailing twelve months
- $904M
- Free cash flow, trailing twelve months
- $234M
- Net income, trailing twelve months
- $185M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 10%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Application
Ranks #85 of 96 by RyuScore