• Freshworks Inc. recently announced its second quarter 2025 earnings, reporting sales of US$204.68 million and a net loss of US$1.74 million, both showing improvements compared to the same period last year, and also raised its full-year revenue guidance to a range of US$822.9 million to US$828.9 million.
• An important highlight is the company’s new multi-year partnership with McLaren Racing, showcasing broader enterprise adoption of Freshworks’ AI-powered IT service management solutions and increasing its brand visibility on a global platform.
• We’ll review how Freshworks’ improved guidance and high-profile McLaren Racing partnership reinforce its investment narrative for growth and product adoption.

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Freshworks Investment Narrative Recap

To believe in Freshworks as a shareholder, you need to have confidence in its ability to leverage AI-powered software solutions to capture a larger share of the enterprise IT market. The latest earnings report, with improved sales and reduced losses, plus raised full-year guidance, further supports the bullish catalyst of robust revenue growth; however, uncertainties in the macroeconomic environment and potential volatility remain a material risk, and the recent news does not eliminate this concern.

One of the most relevant recent announcements is the new multi-year partnership with McLaren Racing, which puts Freshworks’ AI solutions on a global stage and directly supports the company's growth catalysts by increasing both enterprise adoption and brand recognition.

Yet, despite this positive momentum, investors should also consider that if Freshworks’ AI-powered solutions don’t keep pace with competitors, it could…

Read the full narrative on Freshworks (it's free!)

Freshworks' outlook anticipates $1.1 billion in revenue and $139.8 million in earnings by 2028. This outlook assumes a 12.0% annual revenue growth rate and an increase in earnings of $213.1 million from the current level of -$73.3 million.

Uncover how Freshworks' forecasts yield a $19.86 fair value, a 48% upside to its current price.

Exploring Other Perspectives

Six community members of Simply Wall St provided fair value estimates for Freshworks, ranging from US$11.30 to US$30.45 per share. While many expect rising revenue to drive future performance, differing views show how much opinions can vary; see how your expectations align with these perspectives.

Explore 6 other fair value estimates on Freshworks - why the stock might be worth 16% less than the current price!

Build Your Own Freshworks Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Freshworks research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Freshworks research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Freshworks' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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