Freshworks (NASDAQ: FRSH) boosts 2028 revenue and free cash flow goals
Rhea-AI Filing Summary
Freshworks Inc. used its Refresh 2026 analyst session to lay out updated 2026 guidance and higher 2028 financial targets. For 2026, the company projects revenue of $958.0–$964.0 million, year-over-year growth of 14–15%, and non-GAAP income from operations of $207.0–$215.0 million.
Looking to 2028, Freshworks raised its revenue target from $1.2 billion+ to $1.3 billion+ and increased its free cash flow goal from $340 million+ to $425 million+, implying a 32–34% free cash flow margin and 24–26% operating margin. Management expects EX-focused products to reach about 70% of ending ARR and is targeting stock-based compensation of 13–14% of revenue, down from 30% in 2024.
Positive
- Raised 2028 financial targets: Revenue goal increased from $1.2B+ to $1.3B+ and free cash flow target from $340M+ to $425M+, alongside higher operating and FCF margin ambitions.
- Strengthening profitability profile: Freshworks now targets 24–26% non-GAAP operating margin and 32–34% free cash flow margin in 2028, up 400 basis points from prior margin goals.
- Improving capital efficiency and dilution control: Adjusted free cash flow rose from ($14.8M) in 2022 to $223.1M in 2025, while share repurchases are expected to hold diluted shares roughly flat around 300M through 2028.
- Material reduction in stock-based compensation intensity: SBC has already fallen from 30% of revenue and is targeted to decline to 13–14% by 2028, easing an important cost and dilution concern.
Negative
- None.
Insights
Freshworks raised 2028 growth and profitability targets while tightening costs.
Freshworks outlines a shift to an employee-experience (EX)‑first model, with EX expected to comprise roughly 70% of ending ARR by 2028. The company now targets $1.3B+ revenue and $425M+ free cash flow in 2028, versus prior goals of $1.2B+ and $340M+.
The plan calls for 16% revenue growth in 2028, non‑GAAP operating margins of 24–26%, and free cash flow margins of 32–34%. Efficiency levers include lowering S&M to 36–37% of revenue, R&D to 14–15%, and reducing SBC from 30% of revenue in 2024 to 13–14% by 2028.
Historical figures show adjusted free cash flow improving from ($14.8M) in 2022 to $223.1M in 2025, and a buyback strategy that reduced diluted shares outstanding from 328M in 2024 to an estimated ~300M by 2028. The execution path will be trackable through upcoming quarterly results and progress toward the reiterated 2026 outlook.
8-K Event Classification
Key Figures
Key Terms
annual recurring revenue financial
non-GAAP income from operations financial
free cash flow margin financial
stock-based compensation financial
net dollar retention financial
Rule of 50 financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of Registrant as Specified in Its Charter)
| (State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
(Address of Principal Executive Offices)
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading |
Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 7.01 | Regulation FD Disclosure. |
Freshworks Inc. (“Freshworks”) has prepared a presentation for use at the financial analyst session at its Refresh 2026 event, to be held on May 14, 2026. The financial analyst session is scheduled to start at 4:30 p.m. Eastern Time. A copy of the presentation, which will also be accessible on Freshworks’ website at https://ir.freshworks.com/news-and-events/presentations immediately before the start of the financial analyst session, is being furnished as Exhibit 99.1 hereto and incorporated herein by reference.
The information in this Item 7.01, including Exhibit 99.1, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall the information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in any such filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit |
Description | |
| 99.1 | Refresh 2026 – Financial Analyst Session dated May 14, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Freshworks Inc. | ||||||
| Dated: May 14, 2026 | ||||||
| By: | /s/ Tyler Sloat | |||||
| Tyler Sloat | ||||||
| Chief Operating Officer and Chief Financial Officer | ||||||
Exhibit 99.1 Financial Analyst Session
Kate Scolnick Vice President Investor Relations 2
Disclaimer This presentation has been prepared by Freshworks Inc. These forward-looking statements are subject to a number of risks, our sales cycles or adversely affect our industry; our history of net (“Freshworks”) for informational purposes only and not for any uncertainties and assumptions including our ability to achieve or losses and ability to achieve or sustain profitability, as well as the other purpose. Nothing contained in this presentation is, or should maintain profitability; our expectations and management of future other potential factors described under Risk Factors included in be construed as, a recommendation, promise, or representation by growth; the effects of increased competition as well as innovations our Annual Report on Form 10-K for the year ended December 31, Freshworks or any officer, director, employee, agent, or advisor of by new and existing competitors in our market; and our ability to 2025 and other documents of Freshworks Inc. we file with the Freshworks. This presentation does not purport to be all inclusive retain our existing customers and to increase our number of Securities and Exchange Commission from time to time (available or to contain all of the information you may desire. Information customers. Moreover, we operate in a very competitive and rapidly at www.sec.gov). provided in this presentation speaks only as of the date hereof or changing environment in which new risks emerge from time to the date indicated in this presentation accompanying certain time. It is not possible for our management to predict all risks, nor We caution you not to place undue reliance on forward-looking historical facts. can we assess the impact of all factors on our business or the statements, which speak only as of the date hereof and are based extent to which any factor, or combination of factors, may cause on information available to us at the time the statements are made This presentation contains “forward-looking” statements within the our actual results or performance to differ materially from those and/or management’s good faith belief as of that time with respect Private Securities Litigation Reform Act of 1995 that are based on contained in any forward-looking statements we may make. to future events. We assume no obligation to update any our management’s current expectations and projections about forward-looking statements in order to reflect events or future events and financial trends that we believe as of the date of Factors that may cause actual results to differ materially include circumstances that may arise after the date of this release, except this presentation may affect our financial condition, results of our ability to achieve our long-term plans and key initiatives; our as required by law. operations, business strategy, short-term and long-term business ability to sustain or manage any future growth effectively; our ability Certain terms used in this presentation, such as, “ARR”, “ARPA”, operations and objectives and financial needs. Other than to attract and retain customers or expand sales to existing “CAGR”, “FCF”, “SBC”, “SMB”, “TTM” , and others, are defined in the statements of historical facts, all statements contained in this customers; delays in product development or deployments or the Appendix unless otherwise defined on the slide in which they presentation, including statements regarding our annual recurring success of such products; the failure to deliver competitive service appear. revenue, revenue, expenses, average revenue per account, and offerings and lack of market acceptance of any offerings delivered; other results of operations; future financial performance, business the impact to the economy, our customers and our business due to © 2026 Freshworks Inc. All Rights Reserved. Freshworks, strategy and plans; potential market and growth opportunities; global economic conditions, including market volatility, foreign Freshservice, and FireHydrant and any associated logo are addition of new customers or continuing relationship with existing exchange rates, and impact of inflation; the timeframes for and trademarks of Freshworks Inc. All other company, brand and customers; growth rates, competitive position; technological or severity of the impact of any weakened global economic conditions product names may be trademarks or registered trademarks of market trends; and our objectives for future operations, are on our customers’ purchasing and renewal decisions, which may forward-looking statements. Historical results are not indicative of extend the length of their respective companies. Nothing in this presentation should be future performance and you should not rely on past performance construed to the contrary, or as an approval, endorsement or as indicative of any future performance by Freshworks. sponsorship by Freshworks. © 2026 Freshworks Inc. All rights reserved.
Use of Non-GAAP Measures In addition to the U.S. generally accepted accounting principles (“GAAP”) financials, this presentation includes certain non-GAAP financial measures, including non-GAAP income (loss) from operations and adjusted free cash flow. This presentation also includes certain non-GAAP metrics, including annual recurring revenue, average revenue per account, net dollar retention rates, revenue growth rates and related presentation thereof with adjustments for constant currency. We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. We believe these non-GAAP measures provide investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our operating results. We believe these non-GAAP measures are useful in evaluating our operating performance compared to that of other companies in our industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance. Investors, however, are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. Please see the appendix for a reconciliation of the non-GAAP financial measures used in this presentation to the most directly comparable GAAP financial measures. © 2026 F © 2025 Fr reshworks Inc. All rights r eshworks Inc. All rights reser eserv ved. ed.
Dennis Woodside Chief Executive Officer 5
Headlines that redefine our story from 2026 to 2028 We are an EX first company Freshservice is a leader with agile enterprises and in the mid-market AI is a tailwind that is enabling growth We are profitable and scaling We are committed to capital efficiency and prudent capital management © 2026 Freshworks Inc. All rights reserved.
Headlines that redefine our story from 2026 to 2028 We are an EX first company Freshservice is a leader with agile enterprises and in the mid-market AI is a tailwind that is enabling growth We are profitable and scaling We are committed to capital efficiency and prudent capital management © 2026 Freshworks Inc. All rights reserved.
Our vision Freshservice is the AI-powered, unified service operations platform that is fast to deploy, intuitive to use, and enables every employee to be more productive. © 2025 Freshworks Inc. All rights reserved.
Freshworks is now an EX-first company 2021 2026E 2028E EX-first foundations Growing EX product platform AI-enabled EX platform leader 70% 60% EX EX 37% EX % of ARR % of ARR % of ARR © 2026 Freshworks Inc. All rights reserved.
Freshservice is on a path to ~$1B in ARR in 2028 >$600M ARR ~20,000 ~5x ARR Customers Globally Over the past 5 years EOY 2026 FireHydrant ITOM Freddy Agentic AI Freshservice for Device42 Business Teams ITAM Freshservice Freddy AI ESM ITSM 2014 2022 2024 2026 © 2026 Freshworks Inc. All rights reserved.
Freshservice — AI-first platform for IT and beyond ChatGPT Claude Slack MS Teams Portal Email Voice Chat AI Copilot AI Insights AI Agents MCP Gateway Autonomous resolution Human augmentation Intelligence & visibility Extensibility & choice ITSM | ITAM | ITOM | ESM �� Context Layer from Configuration Management Database �� Knowledge Base�� Workflows�� Identity & Access�� Incident History�� Alerts Access Mgmt DevOps HCM Remote Support Endpoint Mgmt © 2026 F © 2026 Fr reshworks Inc. All rights r eshworks Inc. All rights reser eserv ved. ed.
51% 95% 23% 24 Keep Employee Higher employee Employee Self-service Race locations supported satisfaction rate satisfaction score deflection rate Experience 50% 40% 100% 73% Tickets now submitted IT tickets automated Automation of core Faster incident Agent via self-service portal workflows resolution Productivity 68% 5 min 60% 11 To deploy new features Service desks unified Annual IT Decrease in Bottomline cost savings development costs Savings Kent State © 2026 Freshworks Inc. All rights reserved. 12
Headlines that redefine our story from 2026 to 2028 We are an EX first company Freshservice is a leader with agile enterprises and in the mid-market AI is a tailwind that is enabling growth We are profitable and scaling We are committed to capital efficiency and prudent capital management © 2026 Freshworks Inc. All rights reserved.
Attractive market with significant room to capture share No player has more $45B TAM ~60% than 20% market share of the market is represented by ITSM, ITAM, ITOM, ESM Mid-market and Agile Enterprises Market is fragmented 13.4% CAGR Companies with up with strong opportunity (2025–2028) to 20k employees to gain share Note: Market size estimates using Gartner forecasts, internal analysis; mid-market and agile enterprise segmentation inclusive of companies with 250 to 20,000 employees. *Validated ICP growth opportunity through 3rd party external consulting engagement in 2026. Market share is an estimate based on Revenue from 0 to 10,000 employees. © 2026 Freshworks Inc. All rights reserved.
We are the best solution for the mid-market and agile enterprises Freshservice Expensive & complicated Simple IT help desk only Enterprise grade without enterprise complexity SMB centric, lacks enterprise Developer-centric, hard to use depth Last-generation, not innovating © 2026 Freshworks Inc. All rights reserved.
Our core differentiators Unified platform Domain-specialized AI Rapid impact Trusted partner at scale ● Unified platform for ● Superior AI built on a decade ● No code setup, intuitive UX ● Transparent, predictable managing IT services, asset of service data, workflows with built in best practices pricing and operations and domain context ● Fast implementations (80% ● ITIL certified with enterprise ● Unify service needs for IT, ● ~45 AI service workflows for of deployments live in <12 grade support HR, Finance and all lines of leaders, admins, agents and weeks) ● Deep R&D investment; business employees - all natively ● Low maintenance and low built-in security, compliance, infused in the platform overhead = Low TCO governance controls n “Everyone uses Freshservice. It has “Freddy AI Agent helps in triaging “Freshservice's no-code “Our implementation journey been instrumental in streamlining tickets, suggests the right category, capabilities, automation was seamless. They understood our operations not only within the and helps our agents to view similar features, and time to value made our challenges and made IT department but also across cases solved in the past. It is a it the obvious choice for us. customizations to suit our various business functions...” great support in our IT ecosystem.” needs directly.” © 2026 Freshworks Inc. All rights reserved.
Freshservice is rapidly growing upmarket Large Account Traction Bigger Deal Velocity Higher Spending >40% ~40% 18% EX ARR from customers Growth in customers spending YoY growth in spending >$100K ARR >$100K ARR YoY ARPA Note: All data as of March 31, 2026. © 2026 Freshworks Inc. All rights reserved.
Seagate modernized global ITSM Industry - Technology (Data Storage & Infrastructure) in 3 months with Freshservice Region - Global Business Challenge Freshworks Solutions About the Customer Seagate is a global leader in data storage, supporting Seagate needed to migrate ● Freddy AI Agent deployed via MS Teams deflects large-scale enterprise and cloud environments. With 32% of support volume, resolving common 30,000 users to a new 30,000+ users worldwide, the company needed to requests before they reach the service desk ITSM platform in just three modernize ITSM quickly. Its legacy system was costly, ● Device42 replaced manual asset tracking with months, replacing a inflexible, and slowing down automation. automated discovery across Seagate's hybrid 14-year-old system that infrastructure, syncing directly into Freshservice was costly, inflexible, and ● Freddy Copilot put AI-assisted recommendations blocking AI and in agents' hands at the point of work, accelerating automation adoption. resolution with no formal training required After one year, nobody remembers what our previous platform was. What that means is the adoption has Results gone very well and people are happy. 32% 42% Vinod Pasi, Ticket deflection Better resolution time VP & Global Head of IT Infrastructure rate with Freddy AI than industry standard © 2026 Freshworks Inc. All rights reserved.
We consistently and increasingly win new customers We win against large competitors Healthy win rates of ~40% supported by big wins against large competitors We win in the mid-market Won ~250 new logos with greater than $30K ARR in the past year* We win with partners More than 40% of our EX ARR has a partner attached to the deal * NOTE: Represents TTM (April 1, 2025 - March 31, 2026) © 2026 Freshworks Inc. All rights reserved.
Freshservice has multiple paths to expand Future ITAM ITOM ESM AI adjacencies CV CVCV ~1/3 of large Consolidation opportunity Fast growing add-on with Attaching paid AI SKUs to Complementary areas to 1 new lands include for hundreds of significant runway to over 50% of large new pursue (e.g. AIOps, DEX, 2 1 advanced ITAM customers on point lands expand FinOps, SecOps) solutions today Clear opportunity to drive continued NDR expansion and ARPA growth (>60% of new bookings today come from expansion) 1. Deals >$30K in ARR 2. Represents TTM (April 1, 2025 - March 31, 2026) © 2026 Freshworks Inc. All rights reserved.
Freshservice net retention rates are enterprise-class ~119% 111% OVERALL EX NDR EX Multi-product NDR resolution rate NOTE: Reflects as-reported net dollar retention rates as of Q1’26. © 2026 Freshworks Inc. All rights reserved.
Our monetization model is diversifying as product capabilities expand 2023: Seat-Based Model Today: Emerging Hybrid Model 2028E: Fully Hybrid Model ● Primarily selling seats for IT ● Seat-based for IT agents and ● Flexible pricing across: agents and non-IT users non-IT users ○ Agents ● Limited asset-based pricing for ● Asset-based for advanced ITAM ○ Assets lightweight ITAM offering ○ Events ● Alert-based for ITOM On-Call ○ Resolutions ○ Tokens ● Session-based for AI Agents ○ Employees Seat growth remains robust | Non-seat ARR rapidly expanding © 2026 Freshworks Inc. All rights reserved.
New Balance steps up ITSM Industry - Retail (Apparel & Footwear) with unified asset management Region - Global Business Challenge Freshworks Solutions About the Customer New Balance needed ● Freshservice provides a seamless transition from legacy New Balance is a global athletic brand. As it scaled, to unify IT operations systems to unified platform, eliminating operational silos legacy IT systems limited visibility and slowed across 7,000+ across global operations operations. The company needed a unified, modern employees, replacing ● Device42 integration delivers comprehensive asset discovery, an aging service desk platform to support growth. creating single source of truth for inventory management that created silos and left teams without ● Advanced CMDB gives complete visibility into infrastructure visibility into assets dependencies for effective change control and risk reduction or the impact of ● Platform scalability supports enterprise-wide adoption infrastructure changes. beyond IT to facilities, HR, and other departments for standardized service delivery Most of our people now really see and recognize the value of what a true CMDB can bring. And we're getting really good adoption rates. Results Markus Gaulke 133 >5K Platform Manager Agent groups deployed Tickets handled per month © 2026 Freshworks Inc. All rights reserved.
Headlines that redefine our story from 2026 to 2028 We are an EX first company Freshservice is a leader with agile enterprises and in the mid-market AI is a tailwind that is enabling growth We are profitable and scaling We are committed to capital efficiency and prudent capital management © 2026 Freshworks Inc. All rights reserved.
What we are announcing today AI Agent Studio Freshservice ● Domain-specific HR & IT AI agents ITAM & ITOM ● No-code agent builder Live map your entire IT estate and unify ● Deep enterprise context & actions your infrastructure and operations for ● Expansive library of agentic AI-powered service transformation workflow MCP Gateway XLAs & Bridge Freshservice intelligence Executive Overview Insights with the third-party AI tools of ● Experience Level Agreements (XLAs) your choice ● CIO dashboard - AI summaries, performance drilldowns © 2025 F © 2026 F © 2025 Fr r reshworks Inc. All rights r eshworks Inc. All rights r eshworks Inc. All rights reser eser eserv v ved. ed. ed. + Freshservice for Business Teams
AI is delivering customer outcomes today Productive Efficient Impactful +52% ~50% ~100% Higher ticket volume for agents who EX tickets deflected by Freddy AI Growth in paying Freddy Copilot use Freddy Copilot Agent in Q1 2026 customers *All YoY data as of March 31, 2026. © 2026 Freshworks Inc. All rights reserved.
We have multiple paths to monetize AI Direct monetization Indirect monetization is evolving rapidly is also a tailwind AI offering and roadmap is central $29/mo Add-On for Pro & Enterprise AI Copilot Win Rates to every RFP and New Logo win Included on a promo basis for Pro, Growth, 1 AI Agent NDR for EX customers with AI is ~118% NDR and Enterprise plans. Session-based pricing coming in October ($0.49/session) Available today with usage-based Enterprise plan (currently includes AI MCP Plan Growth pricing coming in October Agents & Insights) outpacing overall EX ARR growth 1. Reflects as-reported net dollar retention rates as of Q1’26. © 2026 Freshworks Inc. All rights reserved.
Amerisure transforms AI service Industry - Insurance (Property & Casualty) delivery with a single platform Region - North America Business Challenge Freshworks Solutions About the Customer Amerisure is a U.S.-based insurance provider serving Amerisure needed to ● Freshservice unifies service delivery across IT and commercial clients. As operations grew, legacy business teams — replacing siloed email workflows replace a legacy ticketing with structured, trackable request flows across legal, systems slowed workflows and limited visibility. system with no analytics, HR, underwriting, and more The company needed a more modern, efficient change management, or ● Automated workflows and Freddy AI Agent handle platform to streamline service. data retention, while ticket routing, change management, and employee bringing scattered self-service without manual intervention or added email-based business headcount workflows under one ● Freddy AI Insights surfaces ticket trend deviations in platform with real minutes, enabling data-informed decisions that SLA visibility. saved Amerisure 4,000+ hours across IT and business in 2025 Freshservice makes it easy to prioritize the customer experience — sometimes there are struggles on the back end, but it makes it easy for the user to get what Results they need. 95% 4K+ Daniel McMaster Faster ticket trend analysis Hours saved across IT and IT Service Management Analyst with Freddy Insights business teams in 2025 © 2026 Freshworks Inc. All rights reserved.
Tyler Sloat Chief Operating Officer & Chief Financial Officer 29
Headlines that redefine our story from 2026 to 2028 We are an EX first company Freshservice is a leader with agile enterprises and in the mid-market AI is a tailwind that is enabling growth We are profitable and scaling We are committed to capital efficiency and prudent capital management © 2026 Freshworks Inc. All rights reserved.
Driving improved profitability and free cash flow 2022 2024 2026E Changes since 2024 $265 28% ● Reduced investment in $211 non-core products 22% 21% ● Clarified GTM strategy & focused $153 on 8 top countries $99 14% ● Aligned product & eng focus on 3 priorities: EX, AI, CX -$15 ● Shifted EX product -$22 & GTM efforts upmarket -3% ● Drove HC efficiency reducing -15% headcount by 20%+ since Q3’24 Non-GAAP Op Profit FCF Op Margin FCF Margin All dollar values shown are in millions ($M). © 2026 Freshworks Inc. All rights reserved.
Since our investor day in September our EX focus has gotten even sharper Space to grow in EX Adjusted Product & GTM Confidence in Execution ● AI penetration and ● EX Pipeline is improving - more ● 80% of resources focused on monetization is nascent at bats EX and AI ● Penetration of ITOM, Advanced ● Increasing EX win rates ● Field sales is EX focused ITAM & ESM is still early ● Expansion is >60% of gross ● CX is inbound focused for ● Whitespace in Mid-Market and bookings profitability Agile Enterprise segment We are even more confident in our ability to scale our top line © 2026 Freshworks Inc. All rights reserved.
We are revising our 2028 ARR forecast upward by $100M, driven by faster EX ARR growth Growth outlook: Low-20s → Mid-20s Strengthening pipeline Upmarket momentum Key drivers: EX Broader product portfolio Higher NDR from enterprise shift + incremental new business Growth algorithm: Mid-single digits → Low to mid-single digits Growth outlook: Platform migration on track Key drivers: Focused on efficient SMB/C acquisition CX NDR stabilization post-migration + lower churn risk from Growth algorithm: targeted new business acquisition © 2026 Freshworks Inc. All rights reserved.
Revised 2028 forecast driven by EX success 2025 Investor Day Revised Revenue $1.2B+ $1.3B+ $1.3B+ ARR $1.4B+ ARR Ending ARR EX Growth: >20% EX Growth: Mid-20s CX Growth: Mid-Single Digits CX Growth: Low to Mid-Single Digits 65% of Ending ARR 70% of Ending ARR Driving EX growth EX Target EX Target Upmarket 70% of Ending ARR 75% of Ending ARR MM & Enterprise Customers Target MM & Enterprise Customers Target Expansion NDR Inflection >106% NDR >108% NDR © 2026 Freshworks Inc. All rights reserved.
We’ve adjusted our operating model since September to drive even greater profitability Profitable Businesses Benefiting from Scale Driving Efficiencies ● EX high 80s gross margins ● GTM - Field focused on EX ● S&M from 38% to 36% of while CX is entirely inbound revenue by end of 2028 ● CX operating margins >30% with Focused GTM and ● P&E - >50% code aided by AI ● Rep productivity improving Product investments with upmarket success ● G&A - Tech automation and AI driving results ● Marketing effectiveness from tighter focus for EX & CX We are even more confident in our ability to scale profitability © 2026 Freshworks Inc. All rights reserved.
Raising the Bar - Rule of 50 by 2028 Accelerating Growth Robust Cash Flow Rule of 2025 $1.2B+ $340M+ 45 Investor Day 2028E REVENUE 2028E FREE CASH FLOW +15-16% YoY 28-30% Margin Accelerating Growth Robust Cash Flow Rule of New $1.3B+ $425M+ ~50 2028E REVENUE 2028E FREE CASH FLOW +16% YoY 32-34% Margin © 2026 Freshworks Inc. All rights reserved.
Headlines that redefine our story from 2026 to 2028 We are an EX first company Freshservice is a leader with agile enterprises and in the mid-market AI is a tailwind that is enabling growth We are profitable and scaling We are committed to capital efficiency and prudent capital management © 2026 Freshworks Inc. All rights reserved.
We have a track record of prudent capital management Diluted Shares Outstanding Capital allocation execution 2024 2026E 2028E ● 2025 buyback: 26.9M shares -2% CAGR ● 2026 est. buyback: 20M-25M shares over next 3-5 quarters 328M ● $ FCF growth of $153M in 2024 to $265M in 2026E 296M ~300M ● Expect FCF per share grew from $0.50 in 2024 to $0.94 in 2026E, CAGR of 37% ● Completed two acquisitions ~ $300M capital nearly all cash FCF per Share Our plan anticipates… 2024 2026E 2028E 28% CAGR ● Continued share retirement with net tax settlement ~$1.35 ● Periodic buybacks as additional upside ● Expect FCF per share to grow to ~$1.35, 28% CAGR since 2024 $0.94 ● 1 to 3 tuck-in acquisitions annually $0.50 © 2026 Freshworks Inc. All rights reserved.
SBC has improved 14 percentage points in past 2 years and will continue to decline SBC as % of Revenue Changes since 2024 2024 2026E 2028E ● Reduced headcount from Q3’24 by >20% 30% ● Adjusting equity eligibility for lower levels ● Lapped IPO grants 16% ● Targeting peer top 13%-14% quartile © 2026 Freshworks Inc. All rights reserved.
2028 Outlook - Raising the Bar 40
Reiterating 2026 Financial outlook from May 5 ($ in millions except for per share data) Q2-26 2026 (1) Revenue $232.0 - $235.0 $958.0 - $964.0 Year-over-year growth 13% - 15% 14% - 15% (1) Non-GAAP income from operations $41.0 - $43.0 $207.0 - $215.0 (2) Non-GAAP net income per share $0.13 $0.61 - $0.63 (1) Revenue and non-GAAP income from operations are based on exchange rates as of May 1, 2026 for currencies other than USD. (2) Non-GAAP net income per share was estimated assuming 280 million and 281 million weighted- average shares outstanding for the second quarter and full year 2026, respectively. © 2026 Freshworks Inc. All rights reserved.
Raising the Bar - Updated Long-term 2028 targets 2025 INVESTOR DAY CHANGE NEW* $1.2B+ $1.3B+ +$100M Revenue 15-16% 16% Non-GAAP Gross Margin 85-86% 85-86% R&D 16-17% -200 bps 14-15% As a % of Revenue S&M 38-39% -200 bps 36-37% As a % of Revenue G&A 9-10% 9-10% As a % of Revenue Operating Margin 20-22% +400 bps 24-26% Free Cash Flow Margin 28-30% +400 bps 32-34% Free Cash Flow per Share - 20%+ Y/Y Growth SBC 18-20% -500 to -600 bps 13-14% As a % of Revenue GAAP Net Income Margin 1-2% +800 bps 9-10% Note: New outlook for 2028 includes the estimates of FireHydrant. © 2026 Freshworks Inc. All rights reserved.
Measuring what matters - Metrics to anchor upon disclosures you should expect from us Quarterly Metrics Expansion & AI Adoption Financial & Core Growth ● NDR ● EX and CX ARR ● $50K & $100K+ Customers ● Margins ● Paying AI Customers ● Capital Usage ● EX AI Attach >$30K Deals ● Adj. FCF / Share © 2026 Freshworks Inc. All rights reserved.
Takeaways 44
Why own Freshworks (FRSH) today Stock Price as of 5/12/26 - $8.50 · EV/Revenue 1.6x · Avg. analyst price target = $12 2 1 3 EX platform at an inflection Compounding FCF/share story Valuation discount ● Adj FCF/share 71% CAGR over past 2 years ● EX ARR $540M+, growing 27% YoY in Q1 ● EV/Revenue of ~1.6x ● $0.94 Adj FCF/share in 2026E → $1.35 by ● 111% NDR today; 119% NDR (Multi-Product) ● EV/FCF of ~5.9x on $265M 2026E FCF 2028 ● $1B+ ARR path in 2028 well-defined ● P/E of ~14x vs. SaaS peer median ~27x ● 20%+ annual Adj FCF/share growth target ● Rule of 50 target by 2028 (vs. Rule of ● $400M buyback authorized; 12.7M shares 45 prior) retired YTD ~1.6x 27% 119% $265M 20%+ Rule of 50 EV / 2026E Revenue EX ARR YoY Growth EX NDR (Multi-Product) 2026E Adj. Free Cash Adj FCF/Share 2028 Target Flow Growth/Yr Data as of Q1 FY2026 (March 31, 2026) and May 2026 analyst consensus. This slide is for investor discussion purposes only and does not constitute investment advice. NOTE: Reflects as-reported net dollar retention rates as of Q1’26. © 2026 Freshworks Inc. All rights reserved.
Headlines that redefine our story from 2026 to 2028 We are an EX first company Freshservice is a leader with agile enterprises and in the mid-market AI is a tailwind that is enabling growth We are profitable and scaling We are committed to capital efficiency and prudent capital management © 2026 Freshworks Inc. All rights reserved.
Q&A © 2026 F © 2026 Fr reshworks Inc. All rights r eshworks Inc. All rights reser eserv ved. ed.
Contact us ir@freshworks.com © 2026 F © 2026 Fr reshworks Inc. All rights r eshworks Inc. All rights reser eserv ved. ed.
Appendix © 2026 F © 2026 Fr reshworks Inc. All rights r eshworks Inc. All rights reser eserv ved. ed.
Definitions Customer: a unique domain or unique email address with at least one more more paid subscriptions to one or more of our products ARPA: annual revenue per account ARR: annual recurring revenue CAGR: compounding annual growth rate TTM: trailing twelve months SMB: companies with 250 or fewer employees Mid-market: companies with 251 to 5,000 employees Enterprise: companies with 5,001 or more employees FCF: free cash flow is net cash provided by operating activities, less purchases of property and equipment and capitalized internal-use software. SBC: stock-based compensation Note: Numbers rounded for presentation purposes and may not foot. © 2026 Freshworks Inc. All rights reserved.
GAAP to non-GAAP Reconciliations Revenue ($ in millions) 2022 2023 2024 2025 GAAP Revenue $498.0 $596.4 $720.4 $838.8 YoY Growth rates 34% 20% 21% 16% Add: Effects of foreign currency rate fluctuations $11.3 $0.6 ($1.4) ($2.6) (1) Revenue adjusted for constant currency $509.3 $597.0 $719.0 $836.2 YoY Growth rates - constant currency 37% 20% 21% 16% (1) Revenue growth rates adjusted for constant currency are based on average exchange rates in effect during the comparison period for currencies other than USD . Note: Numbers rounded for presentation purposes and may not foot. © 2026 Freshworks Inc. All rights reserved.
GAAP to non-GAAP Reconciliations Income (loss) from operations ($ in millions) 2022 2023 2024 2025 GAAP income (loss) from operations ($233.4) ($170.2) ($138.6) $13.2 Add: stock-based compensation expense - employee awards 207.7 210.7 216.7 146.8 Add: employer taxes and employee stock transactions 1.8 3.7 3.2 3.0 Add: amortization of acquired intangibles 1.6 0.3 8.2 13.9 Add: restructuring charges – – 9.7 0.4 Add: acquisition expense – – – 0.7 Non-GAAP income (loss) from operations ($22.3) $44.5 $99.1 $178.0 GAAP operating margin (47%) (29%) (19%) 2% Non-GAAP operating margin (4%) 7% 14% 21% Note: Numbers rounded for presentation purposes and may not foot. © 2026 Freshworks Inc. All rights reserved.
GAAP to non-GAAP Reconciliations Free cash flow ($ in millions) 2022 2023 2024 2025 Net cash provided by (used in) operating activities ($2.5) $86.2 $160.6 $242.4 Less: purchase of property and equipment ($7.1) ($2.1) ($9.2) ($5.7) Less: capitalized internal-use software ($5.1) ($6.3) ($5.5) ($15.8) Add: restructuring costs paid – – $7.3 $2.2 Adjusted Free cash flow ($14.8) $77.8 $153.3 $223.1 Adjusted Free cash flow margin (3%) 13% 21% 27% Net cash provided by (used in) investing activities ($284.8) $158.5 $38.8 $206.1 Net cash (used in) financing activities ($156.4) ($60.6) ($67.3) ($436.7) Note: Numbers rounded for presentation purposes and may not foot. © 2026 Freshworks Inc. All rights reserved.