Freshworks Inc. (FRSH): A Bull Case Theory 

We came across a bullish thesis on Freshworks Inc. on Value investing subreddit by nateeinbox. In this article, we will summarize the bulls’ thesis on FRSH. Freshworks Inc.’s share was trading at $11.18 as of October 8th. FRSH’s forward P/E was 17.15 according to Yahoo Finance.

Freshworks Inc. ($FRSH) presents a compelling growth story despite recent near-term volatility. The company is on a clear path toward profitability, with non-GAAP operating income more than tripling year-over-year in Q2 2025 and GAAP operating losses shrinking by 80%. Its balance sheet remains strong, holding $926 million in cash and equivalents, and the company is forecasted to achieve GAAP profitability in 2026.

Analysts are generally bullish, with a consensus “Buy” rating and 12-month price targets ranging from $20.07 to $23.25, and some high targets reaching $27.00. A key growth driver is the Freddy AI platform, which has already generated over $20 million in ARR from more than 5,000 paying customers. Freshworks is also successfully penetrating the high-value enterprise segment, where customers contributing over $50,000 in ARR are growing by 22%, highlighting the company’s ability to scale into lucrative accounts.

The stock, however, has recently dropped over 10% due to a wave of downgrades from major institutions, including Baird and Morgan Stanley, and a particularly aggressive $13.00 price target from Wells Fargo, which triggered automatic selling. While Q2 2025 revenue grew 18% year-over-year, the company’s full-year guidance projects a deceleration to 14–15% growth, adding to near-term uncertainty.

Despite these short-term pressures, the underlying fundamentals remain strong, and the recent correction may represent an attractive entry point for investors willing to accept some near-term volatility. With accelerating profitability, a growing AI-driven revenue engine, and successful enterprise expansion, Freshworks offers a favorable risk/reward profile, particularly if the market overreacted to institutional caution ahead of the Q3 earnings report on November 5, 2025.

Previously we covered a bullish thesis on ServiceNow, Inc. (NOW) by Compounding Your Wealth in April 2025, which highlighted its leadership in AI-driven workflow automation, strong customer retention, and high-margin subscription revenue. The company’s stock price has appreciated approximately by 16.37% since our coverage. The thesis still stands as ServiceNow remains a dominant compounder. nateeinbox shares a similar perspective but emphasizes Freshworks’ smaller-scale workflow solutions.

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Disclosure: None.