Freshworks Inc. (FRSH): A Bull Case Theory 

We came across a bullish thesis on Freshworks Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on FRSH. Freshworks Inc.’s share was trading at $11.40 as of January 28th. FRSH’s forward P/E was 16.18 according to Yahoo Finance.

Freshworks Inc., a software development company, provides software-as-a-service products in North America, Europe, the Middle East, Africa, Asia Pacific, and internationally. FRSH’s ongoing efficiency program is beginning to meaningfully reshape its financial profile, with free cash flow per share rising sharply despite revenue continuing to drift lower from 2021 peaks. Management has already executed 70% of its planned efficiency initiatives and expects to complete the remainder over the coming quarters, freeing up cash that can now be reinvested into enhancing the service.

Trading at just 0.16x sales, the company offers significant upside should these reinvestments expand its value-to-price ratio, especially given the extraordinary process power it has demonstrated in operating one of the world’s most complex supply chains. While growth plateaued post-pandemic due to consumers prioritizing money over time, ongoing improvements could meaningfully shift this dynamic.

As the service becomes more convenient, higher quality, and more affordable, HelloFresh can gradually tap into broader pockets of demand, expanding its TAM well beyond the time-sensitive customer segment it largely serves today. Its vertically integrated infrastructure—unique at global scale—gives it a high degree of control over customer lifetime value, allowing the business to remain cash-flow positive even amid fluctuating demand for a nonessential service.

CEO Dominik Richter is now focused on widening the value-to-price ratio through the ReFresh strategy, using cost discipline to fund product innovation that boosts retention and lifetime value. Recent investments in the U.S., expanded menus, upgraded packaging, and broader cuisine variety have already improved customer satisfaction, particularly among loyal and lapsed users. Though near-term revenue trends remain mixed, the company’s cash generation, efficiency progress, and disciplined A/B-driven optimization framework present an increasingly compelling long-term setup.

Previously we covered a bullish thesis on ServiceNow, Inc. (NOW) by Compounding Your Wealth in April 2025, which highlighted its workflow automation leadership, strong customer penetration, and durable competitive moat. The company’s stock price has depreciated approximately by 18.96% since our coverage (adjusted for stock split of 5 for 1 in December 2025). The thesis still stands as its AI-driven growth engine remains intact. Antonio Linares shares a similar view but emphasizes operational efficiency and reinvestments in his thesis on Freshworks.

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Disclosure: None.