Freshworks Announces Board Authorization of $400 Million Share Repurchase Program
MWN-AI** Summary
Freshworks Inc. (NASDAQ: FRSH) has authorized a significant stock repurchase program, allowing for the buyback of up to $400 million of its Class A common stock. This announcement, made on February 26, 2026, from the company’s headquarters in San Mateo, California, underscores the Board of Directors' confidence in Freshworks' long-term growth strategy and commitment to effective capital allocation. CEO Dennis Woodside emphasized that the company achieved its first year of GAAP profitability in 2025, alongside generating over $223 million in free cash flow and $0.76 earnings per diluted share—an impressive nearly threefold increase compared to 2023.
The repurchase initiative aims to acquire shares perceived as undervalued by the market, while also ensuring that Freshworks retains sufficient capital for future investment aimed at driving both top and bottom-line growth. The buyback will be executed through various means, including open market transactions and privately negotiated deals, in compliance with regulations under the Securities Exchange Act of 1934. Freshworks plans to structure these purchases according to Rule 10b-18, which governs how companies can repurchase their stock, while also allowing flexibility in timing and pricing determined by market conditions and business needs.
Founded on the belief in delivering streamlined service software, Freshworks caters to nearly 75,000 companies, including notable names like Sony Music and S&P Global. The company's software solutions enhance employee and customer experiences, simplifying operations while driving productivity. Forward-looking statements included in the announcement highlight potential uncertainties that could affect the company's future, with the full scope of risks discussed in their SEC filings. For more information on Freshworks and their services, visit their official website.
MWN-AI** Analysis
The recent announcement from Freshworks Inc. (NASDAQ: FRSH) regarding a $400 million share repurchase program is a significant development for both current and prospective investors. This move signals the company's strong belief in its intrinsic value after achieving GAAP profitability in 2025, a milestone that indicates a healthy financial trajectory. The reported free cash flow surge to $223 million and earnings per diluted share of $0.76—nearly tripling from 2023—further solidifies Freshworks’ positioning as a growing enterprise.
Repurchase programs can ultimately enhance shareholder value, as buying back shares usually reduces the total outstanding shares, which can lead to increased earnings per share (EPS) and a potentially higher stock price if the market recognizes the value. CEO Dennis Woodside’s assertion that the company will repurchase shares it considers undervalued suggests a robust outlook for the stock, particularly given the current macroeconomic environment that may present opportunities for strategic acquisition of shares at lower prices.
Investors should take note of how Freshworks plans to execute this program; the company may use various methods for repurchase, including open market transactions and privately negotiated deals, which provides flexibility to adapt to market conditions. Additionally, the mention of potential Rule 10b5-1 plans indicates a structured approach to repurchase activities, emphasizing disciplined capital allocation—an aspect that prudent investors should find reassuring.
In summary, Freshworks appears well-positioned for sustained growth and shareholder return through this strategic move. Investors may want to monitor the timing and impact of these repurchases closely, as they could serve as indicators of market confidence going forward. If you are contemplating an investment, consider both the current market conditions and the company's solid fundamentals as key factors in your decision-making process.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
SAN MATEO, Calif., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ: FRSH) today announced that its Board of Directors authorized a stock repurchase program of up to $400 million of the company’s outstanding Class A common stock.
"This follow-on share repurchase program demonstrates our confidence in the Company's long-term strategy, durable growth and dedication to disciplined capital allocation," stated Dennis Woodside, CEO & President. "In addition to achieving GAAP profitability in 2025, we generated over $223M in free cash flow and $0.76 per weighted average diluted share, both nearly tripling from 2023. With this program we plan to repurchase shares that we believe the market substantially undervalues, while retaining sufficient cash to invest in future top line and bottom line growth."
Freshworks may repurchase shares from time to time in the open market, through privately negotiated transactions and/or other means in compliance with the Securities Exchange Act of 1934 and the rules and regulations thereunder. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 under the Exchange Act. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of shares of common stock under this authorization. The timing, manner, price, and amount of any repurchases will be determined by Freshworks at its discretion, and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. The repurchase program may be suspended or discontinued at any time.
About Freshworks Inc.
Freshworks Inc. (NASDAQ: FRSH) builds uncomplicated service software that delivers exceptional employee and customer experiences. Our enterprise-grade solutions are powerful, yet easy to use, and quick to deliver results. Our people-first approach to AI eliminates friction, making employees more effective and organizations more efficient. Nearly 75,000 companies, including Bridgestone, New Balance, Nucor, S&P Global, and Sony Music, trust Freshworks’ Employee Experience (EX) and Customer Experience (CX) software to eliminate complexity and increase productivity, loyalty and growth. For the latest company news and customer stories, visit www.freshworks.com and follow us on Facebook, LinkedIn, and X.
Forward-Looking Statements
Certain statements in this news release are forward-looking statements within the meaning of the federal securities laws, including statements relating to the Company’s plan to repurchase up to $400 million of its outstanding Class A common stock. All such statements in this report, other than statements of historical fact, are forward-looking statements. Words such as “expect,” “intend,” “will,” “plan,” “anticipate,” “may,” “believe,” “continue,” and similar expressions are intended to identify forward-looking statements. The Company’s forward-looking statements are based on certain assumptions and reflect the Company’s current expectations. As a result, forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including other factors discussed in the Company’s reports on Form 10-K and Form 10-Q and the other risks and uncertainties discussed in any subsequent reports that the Company files with the Securities and Exchange Commission from time to time.
© 2026 Freshworks Inc. All rights reserved. Freshworks and its associated logos are trademarks of Freshworks Inc. All other trademarks are property of their respective owners. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third party of Freshworks Inc. or any aspect of this press release.
Investor Relations Contact:
IR@freshworks.com
Media Relations Contact:
PR@freshworks.com
FAQ**
How does Freshworks Inc. FRSH plan to utilize the $400 million stock repurchase program to enhance shareholder value while maintaining sufficient cash for future growth initiatives?
What factors led to Freshworks Inc. FRSH achieving GAAP profitability in 2025, and how will this success influence future capital allocation strategies?
In light of Freshworks Inc. FRSH's significant increase in free cash flow, how does the company plan to balance share repurchases with investments in innovation and market expansion?
Can Freshworks Inc. FRSH provide insights into how its ongoing customer trust and engagement will impact the success of the stock repurchase program and overall business strategy moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Freshworks Inc. (NASDAQ: FRSH).
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