Forensic Analysis · Technology / Software · as of Aug 11, 2026

Freshworks Inc. (FRSH)

A forensic read on Freshworks Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

D · Weak — demands caution

Forensic grade

Distress

Financial health

1.1

Distress distance

Clean

Earnings quality

Forensic signals

16.7

P / E (ttm)

17.8%

ROE

$3.1B

Market cap

16.4%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Freshworks Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 1.1, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

2.2%

FY2025

Return on invested capital. Return on invested capital is 2.2% in the latest fiscal year and rising from -23% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.

+1.1%/yr

FY2022–FY2025

Share-count dilution. Diluted share count changed +3% over the last 3 years to FY2025 (+1.1%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.1% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~3%.

163% of FCF

FY2025

Shareholder returns. Returned $386M to shareholders (buybacks + dividends) in FY2025 — 163% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely. Counting the $147M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 225%.

Key fundamentals

Latest Revenue$838.8M

Revenue Growth YoY+16.4%

Revenue CAGR (3yr)+19.0%

Net Margin21.9%

Free Cash Flow$236.7M

Return on Equity17.8%

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Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.