Equity Profile

FRSH

Freshworks Inc.

Information TechnologyApplication Software$3.0B

Jul31Wed

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

Freshworks Inc. is a technology company that develops software solutions aimed at improving customer engagement and support....

Key Metrics to Watch

Customer Growth Rate

This metric indicates how well Freshworks is attracting new clients, which is crucial for revenue growth.

N/A

Average Revenue Per User (ARPU)

ARPU helps assess how effectively Freshworks is monetizing its customer base, impacting overall revenue.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

FRSH Q2-2026 Earnings Preview

Context

Company Snapshot

Freshworks Inc. is a technology company that develops software solutions aimed at improving customer engagement and support. As part of the information technology sector, it focuses on application software, which is increasingly important as businesses seek to enhance their customer experiences in a competitive market.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+335.91%

Avg Stock Reaction

+1.03%

Last Quarter Recap

In the last quarter, Freshworks reported an impressive earnings surprise, with EPS of $0.13 compared to an expected loss. The stock reacted positively, gaining 2.34% the following day.

Management Promises & Guidance

Continued focus on enhancing customer support solutions.
Commitment to expanding market presence in the application software space.
Plans to invest in product development and innovation.

Expectations

Wall Street Expectations

Overall expectations are cautiously optimistic, given Freshworks' history of beating earnings estimates. Investors are looking for continued strong performance in customer acquisition and retention metrics.

Bull Case

If Freshworks continues its trend of beating earnings estimates and shows strong customer growth, it could lead to significant stock appreciation.

Bear Case

Conversely, if customer growth slows or churn rates increase, it may raise concerns about future revenue, leading to a negative market reaction.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the current customer growth rate and how does it compare to previous quarters?

This will indicate whether Freshworks is successfully expanding its customer base, which is critical for future revenue growth.

What is the churn rate for the quarter?

Understanding customer retention will help gauge the company's ability to maintain its revenue stream.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Freshworks' potential for customer growth due to its innovative product offerings and strong market demand.

Supporting Evidence

Historical earnings surprises suggest a strong operational performance that may not be fully reflected in current estimates.

Options pricing indicates higher volatility, suggesting that the market is anticipating significant news that could drive stock movement.

Key Risk

If customer growth significantly exceeds expectations, it could lead to a reevaluation of the company's growth trajectory.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance hinges on customer acquisition and retention metrics, which are vital for sustaining growth.

Bull Confirmed If

A customer growth rate exceeding 15% would confirm the bull case.

Bear Confirmed If

A churn rate above 5% would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±4.68%

Historical Avg

±1.8%

Pricing rich

The options market is pricing in a significant potential move, suggesting that investors anticipate volatility around the earnings report.

Options are pricing ±4.7% while FRSH has averaged ±1.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

49.3%

Calls (31K)P/C Ratio: 0.08Puts (2K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Freshworks beats expectations, history suggests a positive stock reaction of around +1.03%, confirming strong demand and growth.

In-Line / Cautious

If results are in line but management is cautious, the stock may react neutrally as investors reassess growth prospects.

Miss

A miss could lead to a decline, with historical data suggesting an average drop of around -0.64%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on customer acquisition strategies and their effectiveness.
2Details on product enhancements and new features being rolled out.
3Insights into competitive positioning within the application software market.
4Management's outlook on future revenue growth and market conditions.
5Any changes in guidance related to customer retention and churn.

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Company Snapshot

Freshworks Inc. is a technology company that develops software solutions aimed at improving customer engagement and support....

Key Metrics to Watch

Customer Growth Rate

This metric indicates how well Freshworks is attracting new clients, which is crucial for revenue growth.

N/A

Average Revenue Per User (ARPU)

ARPU helps assess how effectively Freshworks is monetizing its customer base, impacting overall revenue.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

FRSH Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+335.91%

Avg Stock Reaction

+1.03%

Last Quarter Recap

In the last quarter, Freshworks reported an impressive earnings surprise, with EPS of $0.13 compared to an expected loss. The stock reacted positively, gaining 2.34% the following day.

Management Promises & Guidance

Continued focus on enhancing customer support solutions.
Commitment to expanding market presence in the application software space.
Plans to invest in product development and innovation.

Expectations

Wall Street Expectations

Bull Case

If Freshworks continues its trend of beating earnings estimates and shows strong customer growth, it could lead to significant stock appreciation.

Bear Case

Conversely, if customer growth slows or churn rates increase, it may raise concerns about future revenue, leading to a negative market reaction.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the current customer growth rate and how does it compare to previous quarters?

This will indicate whether Freshworks is successfully expanding its customer base, which is critical for future revenue growth.

What is the churn rate for the quarter?

Understanding customer retention will help gauge the company's ability to maintain its revenue stream.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Freshworks' potential for customer growth due to its innovative product offerings and strong market demand.

Supporting Evidence

Historical earnings surprises suggest a strong operational performance that may not be fully reflected in current estimates.

Options pricing indicates higher volatility, suggesting that the market is anticipating significant news that could drive stock movement.

Key Risk

If customer growth significantly exceeds expectations, it could lead to a reevaluation of the company's growth trajectory.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance hinges on customer acquisition and retention metrics, which are vital for sustaining growth.

Bull Confirmed If

A customer growth rate exceeding 15% would confirm the bull case.

Bear Confirmed If

A churn rate above 5% would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±4.68%

Historical Avg

±1.8%

Pricing rich

The options market is pricing in a significant potential move, suggesting that investors anticipate volatility around the earnings report.

Options are pricing ±4.7% while FRSH has averaged ±1.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

49.3%

Calls (31K)P/C Ratio: 0.08Puts (2K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Freshworks beats expectations, history suggests a positive stock reaction of around +1.03%, confirming strong demand and growth.

In-Line / Cautious

If results are in line but management is cautious, the stock may react neutrally as investors reassess growth prospects.

Miss

A miss could lead to a decline, with historical data suggesting an average drop of around -0.64%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on customer acquisition strategies and their effectiveness.
2Details on product enhancements and new features being rolled out.
3Insights into competitive positioning within the application software market.
4Management's outlook on future revenue growth and market conditions.
5Any changes in guidance related to customer retention and churn.