Gagnon Securities Reduces Freshworks Stake
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy FRSH?
Source: Fool
- Share Reduction Details: Gagnon Securities reported a sale of 635,807 shares of Freshworks in its SEC filing on February 12, 2026, with an estimated trade value of $7.51 million, indicating a cautious outlook on the company's future performance.
- Ownership Proportion Change: Following this sale, Gagnon Securities' stake in Freshworks decreased to 1,230,011 shares, valued at $15.07 million, with an overall position value drop of $6.89 million, reflecting diminished market confidence in the stock.
- Market Performance Analysis: As of February 12, 2026, Freshworks shares were priced at $7.04, down 60.4% over the past year and trailing the S&P 500 by 73.35 percentage points, indicating a lack of competitive strength in the market.
- Financial Overview: Freshworks achieved $838.81 million in revenue for 2025, a 16% increase year-over-year, and despite the stock price decline, the CEO noted better-than-expected growth and profitability metrics, suggesting the business is not in operational free-fall.
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Analyst Views on FRSH
Wall Street analysts forecast FRSH stock price to rise
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 7.040
Low
13.00
Averages
18.88
High
25.00
Current: 7.040
Low
13.00
Averages
18.88
High
25.00
About FRSH
Freshworks Inc. is a software company. Its software-as-a-service (SaaS) solutions fall into two product families: Customer Experience (CX) and Employee Experience (EX). CX products include Freshdesk, Freshchat, Freshsales, and Freshmarketer. EX products include Freshservice, Freshservice for Business Teams, and Device42. The Company's generative artificial intelligence (AI) solutions, Freddy AI Agent and Freddy AI Copilot, further enhance the customer and employee experience.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Freshworks Rated as One of the Best Mid-Cap AI Stocks
- Strong Performance: Freshworks Inc. reported Q4 revenue of $222.7 million, reflecting a 14% year-over-year increase that surpassed market expectations, thereby boosting investor confidence in its SaaS offerings.
- Annual Recurring Revenue Growth: The company achieved an 18% year-over-year increase in annual recurring revenue (ARR), reaching $907 million, indicating a robust customer base expansion and revenue stability that lays a foundation for future growth.
- Analyst Rating Adjustment: Cantor Fitzgerald lowered its price target for Freshworks from $19 to $14 while maintaining an Outperform rating, suggesting that despite challenges of slowing growth, analysts remain optimistic about its long-term potential.
- Strong Customer Growth: The company added over 1,500 customers generating more than $100,000 in ARR during the quarter, demonstrating the attractiveness of its products in the market and customer loyalty, despite management's concerns over growth deceleration.
See More
Gagnon Securities Reduces Freshworks Stake
- Share Reduction Details: Gagnon Securities reported a sale of 635,807 shares of Freshworks in its SEC filing on February 12, 2026, with an estimated trade value of $7.51 million, indicating a cautious outlook on the company's future performance.
- Ownership Proportion Change: Following this sale, Gagnon Securities' stake in Freshworks decreased to 1,230,011 shares, valued at $15.07 million, with an overall position value drop of $6.89 million, reflecting diminished market confidence in the stock.
- Market Performance Analysis: As of February 12, 2026, Freshworks shares were priced at $7.04, down 60.4% over the past year and trailing the S&P 500 by 73.35 percentage points, indicating a lack of competitive strength in the market.
- Financial Overview: Freshworks achieved $838.81 million in revenue for 2025, a 16% increase year-over-year, and despite the stock price decline, the CEO noted better-than-expected growth and profitability metrics, suggesting the business is not in operational free-fall.
See More
Gagnon Advisors Sells 564,879 Shares of Freshworks
- Share Reduction Details: Gagnon Advisors disclosed a sale of 564,879 shares of Freshworks in its February 12, 2026 SEC filing, with an estimated transaction value of $6.67 million, indicating a potential decline in confidence in the company.
- Position Change Analysis: Following this sale, Freshworks now represents 4.39% of Gagnon Advisors' reportable assets under management, which totals $150 million, highlighting a relative decrease in the company's significance within the investment portfolio.
- Financial Performance Overview: Freshworks reported $838.8 million in revenue for 2025, a 16% year-over-year increase, and despite a stock price drop of over 60%, it achieved a GAAP operating income of $13.2 million, indicating improving profitability.
- Investor Focus Areas: Long-term investors should monitor Freshworks' recurring revenue durability and margin growth trends; despite the stock's weakness, if revenue growth aligns with expanding profitability, the current price may reflect sentiment fatigue rather than structural weaknesses.
See More
Freshworks Stock Plummets Despite Q4 Earnings Beat
- Earnings Beat: Freshworks reported non-GAAP earnings per share of $0.14 and sales of $222.7 million for Q4 2022, exceeding Wall Street's EPS target by $0.03 and sales estimates by approximately $3.9 million, indicating strong operational performance.
- Significant Stock Decline: Despite the positive earnings report, Freshworks' stock plummeted 18.8% over the past week, reflecting investor dissatisfaction with the company's forward guidance and a shift towards bearish market sentiment.
- Deteriorating Market Conditions: The broader software sector faced challenges, with the S&P 500 and Nasdaq Composite falling 1.4% and 2.1% respectively, highlighting a cautious investor outlook that contributed to Freshworks' stock decline amid a tough trading environment.
- Future Sales Guidance: Freshworks projects Q1 sales between $222 million and $225 million, with full-year sales expected to range from $952 million to $960 million, aiming for approximately 14% annual revenue growth, yet the selective investment approach in software stocks leaves its future uncertain.
See More
Freshworks Q4 Earnings Exceed Expectations but Stock Declines
- Earnings Beat: Freshworks reported non-GAAP earnings per share of $0.14 and sales of $222.7 million for Q4 2022, surpassing Wall Street expectations by $0.03 and $3.9 million respectively, indicating strong operational performance.
- Significant Stock Drop: Despite the positive earnings report, Freshworks' stock plummeted 18.8% over the past week, reflecting investor concerns about the company's future amidst a broader market valuation contraction.
- Cautious Guidance: The company forecasts Q1 2023 sales between $222 million and $225 million, with full-year sales projected at $952 million to $960 million, aiming for approximately 14% annual growth, yet this guidance failed to alleviate investor apprehensions.
- Deteriorating Market Conditions: With the software sector experiencing significant valuation pullbacks, the S&P 500 and Nasdaq Composite fell by 1.4% and 2.1% respectively, leading investors to adopt a more selective approach towards software stocks, which may increase volatility in the near term.
See More
Freshworks Stock Plummets Due to Earnings Guidance
- Performance Beats: Freshworks reported non-GAAP earnings per share of $0.14 and sales of $222.7 million for Q4 2022, exceeding Wall Street's EPS target by $0.03 and sales estimates by approximately $3.9 million, indicating strong operational performance.
- Significant Stock Drop: Despite the positive earnings report, Freshworks' stock plummeted 18.8% over the past week, reflecting investor dissatisfaction with the company's forward guidance and a shift towards bearish market sentiment.
- Market Environment Impact: The broader market faced challenges, with the S&P 500 declining 1.4% and the Nasdaq Composite falling 2.1% in the last week, as software stocks were particularly affected, highlighting growing investor caution in the sector.
- Future Sales Guidance: Freshworks projects Q1 sales between $222 million and $225 million, with full-year sales expected between $952 million and $960 million; although the management's 14% annual growth target is reasonable, investor selectivity in software stocks is increasing.
See More
Freshworks Rated as One of the Best Mid-Cap AI Stocks
- Strong Performance: Freshworks Inc. reported Q4 revenue of $222.7 million, reflecting a 14% year-over-year increase that surpassed market expectations, thereby boosting investor confidence in its SaaS offerings.
- Annual Recurring Revenue Growth: The company achieved an 18% year-over-year increase in annual recurring revenue (ARR), reaching $907 million, indicating a robust customer base expansion and revenue stability that lays a foundation for future growth.
- Analyst Rating Adjustment: Cantor Fitzgerald lowered its price target for Freshworks from $19 to $14 while maintaining an Outperform rating, suggesting that despite challenges of slowing growth, analysts remain optimistic about its long-term potential.
- Strong Customer Growth: The company added over 1,500 customers generating more than $100,000 in ARR during the quarter, demonstrating the attractiveness of its products in the market and customer loyalty, despite management's concerns over growth deceleration.
See More
Gagnon Securities Reduces Freshworks Stake
- Share Reduction Details: Gagnon Securities reported a sale of 635,807 shares of Freshworks in its SEC filing on February 12, 2026, with an estimated trade value of $7.51 million, indicating a cautious outlook on the company's future performance.
- Ownership Proportion Change: Following this sale, Gagnon Securities' stake in Freshworks decreased to 1,230,011 shares, valued at $15.07 million, with an overall position value drop of $6.89 million, reflecting diminished market confidence in the stock.
- Market Performance Analysis: As of February 12, 2026, Freshworks shares were priced at $7.04, down 60.4% over the past year and trailing the S&P 500 by 73.35 percentage points, indicating a lack of competitive strength in the market.
- Financial Overview: Freshworks achieved $838.81 million in revenue for 2025, a 16% increase year-over-year, and despite the stock price decline, the CEO noted better-than-expected growth and profitability metrics, suggesting the business is not in operational free-fall.
See More
Gagnon Advisors Sells 564,879 Shares of Freshworks
- Share Reduction Details: Gagnon Advisors disclosed a sale of 564,879 shares of Freshworks in its February 12, 2026 SEC filing, with an estimated transaction value of $6.67 million, indicating a potential decline in confidence in the company.
- Position Change Analysis: Following this sale, Freshworks now represents 4.39% of Gagnon Advisors' reportable assets under management, which totals $150 million, highlighting a relative decrease in the company's significance within the investment portfolio.
- Financial Performance Overview: Freshworks reported $838.8 million in revenue for 2025, a 16% year-over-year increase, and despite a stock price drop of over 60%, it achieved a GAAP operating income of $13.2 million, indicating improving profitability.
- Investor Focus Areas: Long-term investors should monitor Freshworks' recurring revenue durability and margin growth trends; despite the stock's weakness, if revenue growth aligns with expanding profitability, the current price may reflect sentiment fatigue rather than structural weaknesses.
See More
Freshworks Stock Plummets Despite Q4 Earnings Beat
- Earnings Beat: Freshworks reported non-GAAP earnings per share of $0.14 and sales of $222.7 million for Q4 2022, exceeding Wall Street's EPS target by $0.03 and sales estimates by approximately $3.9 million, indicating strong operational performance.
- Significant Stock Decline: Despite the positive earnings report, Freshworks' stock plummeted 18.8% over the past week, reflecting investor dissatisfaction with the company's forward guidance and a shift towards bearish market sentiment.
- Deteriorating Market Conditions: The broader software sector faced challenges, with the S&P 500 and Nasdaq Composite falling 1.4% and 2.1% respectively, highlighting a cautious investor outlook that contributed to Freshworks' stock decline amid a tough trading environment.
- Future Sales Guidance: Freshworks projects Q1 sales between $222 million and $225 million, with full-year sales expected to range from $952 million to $960 million, aiming for approximately 14% annual revenue growth, yet the selective investment approach in software stocks leaves its future uncertain.
See More
Freshworks Q4 Earnings Exceed Expectations but Stock Declines
- Earnings Beat: Freshworks reported non-GAAP earnings per share of $0.14 and sales of $222.7 million for Q4 2022, surpassing Wall Street expectations by $0.03 and $3.9 million respectively, indicating strong operational performance.
- Significant Stock Drop: Despite the positive earnings report, Freshworks' stock plummeted 18.8% over the past week, reflecting investor concerns about the company's future amidst a broader market valuation contraction.
- Cautious Guidance: The company forecasts Q1 2023 sales between $222 million and $225 million, with full-year sales projected at $952 million to $960 million, aiming for approximately 14% annual growth, yet this guidance failed to alleviate investor apprehensions.
- Deteriorating Market Conditions: With the software sector experiencing significant valuation pullbacks, the S&P 500 and Nasdaq Composite fell by 1.4% and 2.1% respectively, leading investors to adopt a more selective approach towards software stocks, which may increase volatility in the near term.
See More
Freshworks Stock Plummets Due to Earnings Guidance
- Performance Beats: Freshworks reported non-GAAP earnings per share of $0.14 and sales of $222.7 million for Q4 2022, exceeding Wall Street's EPS target by $0.03 and sales estimates by approximately $3.9 million, indicating strong operational performance.
- Significant Stock Drop: Despite the positive earnings report, Freshworks' stock plummeted 18.8% over the past week, reflecting investor dissatisfaction with the company's forward guidance and a shift towards bearish market sentiment.
- Market Environment Impact: The broader market faced challenges, with the S&P 500 declining 1.4% and the Nasdaq Composite falling 2.1% in the last week, as software stocks were particularly affected, highlighting growing investor caution in the sector.
- Future Sales Guidance: Freshworks projects Q1 sales between $222 million and $225 million, with full-year sales expected between $952 million and $960 million; although the management's 14% annual growth target is reasonable, investor selectivity in software stocks is increasing.
See More
