Buy, Sell or Hold This US Mid Cap Stock-FRSH

Acrobull UK Advisory Services Ltd.

September 08			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Freshworks Inc.	FRSH-NASDAQ	Technology		$3.742 Billion	Medium

Freshworks Inc. is a software development company that offers software-as-a-service (SaaS) products across North America, Europe, the Middle East, Africa, the Asia-Pacific region, and globally. The company provides solutions focused on Customer Experience (CX) and Employee Experience (EX). Its Customer Experience suite includes Freshdesk, a comprehensive ticketing and case management platform.

Recent Highlights

CEO Statement- Freshworks delivered another strong quarter, surpassing our previously issued financial guidance for Q2 with 18% year-over-year revenue growth, reaching $204.7 million,” said Dennis Woodside, Chief Executive Officer and President of Freshworks.

We achieved a 29% operating cash flow margin and a 27% adjusted free cash flow margin. Our strong performance in the first half of the year underscores a growing trend—businesses are increasingly choosing Freshworks to simplify operations. They are seeking AI-powered customer and employee service solutions that are quick to deploy, intuitive to use, and designed to drive measurable results

Second Quarter 2025 Financial Highlights

Revenue: Freshworks reported total revenue of $204.7 million for the second quarter of 2025, representing a robust 18% year-over-year growth compared to $174.1 million in Q2 2024. On a constant currency basis, revenue growth was 17%, reflecting continued global demand for the company’s software solutions.

GAAP (Loss) from Operations: The company reported a GAAP loss from operations of $(8.7) million, a significant improvement compared to a loss of $(43.8) million in the same quarter last year, demonstrating enhanced operational efficiency and cost management.

Non-GAAP Income from Operations: On a non-GAAP basis, income from operations rose sharply to $44.8 million, up from $13.1 million in Q2 2024. This increase highlights the strength of Freshworks' underlying business performance and operational leverage.

GAAP Net (Loss) Per Share: GAAP basic and diluted net loss per share was $(0.01), based on 294.4 million weighted-average shares outstanding, compared to a net loss of $(0.07) per share based on 299.8 million weighted-average shares outstanding in the prior-year quarter.

Non-GAAP Net Income Per Share: Non-GAAP diluted net income per share was $0.18, based on 297.3 million weighted-average shares outstanding. This marks a notable improvement from $0.08 per share in Q2 2024, which was based on 302.5 million weighted-average shares outstanding.

Stock Observation- Freshworks is excited to build on its strong momentum, continuing to exceed expectations,” said Dennis Woodside, Chief Executive Officer and President of Freshworks. “With 18% year-over-year revenue growth, reaching $204.7 million in Q2, they are confident that their ongoing efforts will drive continued success in the upcoming quarters, positioning the company for sustained growth as businesses increasingly turn to Freshworks for AI-powered solutions that simplify operations and deliver impactful results.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$12.83 USD
Acrobull Recommendation	Buy at $12.65 USD
Target Price	Target $14.54 USD
RSI Level	14 Day RSI 43
Total Shares Outstanding	237.93 Million
Shares Held by Insiders Shares Held by Institutions Risk Factor Stop Loss	6.86% 87.48% Medium 5%