Freshworks Inc. (NASDAQ: FRSH), a leader in uncomplicated service software, has announced an ambitious stock repurchase program authorized by its Board of Directors, aimed at buying back up to $400 million of its Class A common stock. This move signals the company's confidence in its long-term strategy and growth potential, as well as its commitment to disciplined capital allocation.

1. A Strong Financial Foundation

Dennis Woodside, CEO & President of Freshworks, highlighted the company's financial achievements in 2025, stating, "In addition to achieving GAAP profitability in 2025, we generated over $223 million in free cash flow and $0.76 per weighted average diluted share, both nearly tripling from 2023." This impressive financial performance has set the stage for the share repurchase program, which Freshworks believes will allow it to acquire shares that the market undervalues.

Strategic Objectives

The repurchase program aims not only to enhance shareholder value but also to retain sufficient cash for future investments in the company's growth. Woodside emphasized that the company is dedicated to balancing capital returns with investments that drive both top-line and bottom-line growth. "With this program, we plan to repurchase shares that we believe the market substantially undervalues," he said.

2. Repurchase Mechanics

Freshworks plans to execute the repurchase program through a variety of methods, including open market purchases and privately negotiated transactions, all in compliance with the Securities Exchange Act of 1934. The repurchases will be managed under the guidelines of Rule 10b-18, ensuring that the timing, manner, price, and amount of any buybacks will be determined based on market conditions and corporate strategy.

Furthermore, the company may implement Rule 10b5-1 plans to facilitate these share repurchases. However, the Board of Directors retains the discretion to suspend or discontinue the program at any time.

3. Company Overview

Freshworks Inc. specializes in delivering exceptional employee and customer experiences through its suite of enterprise-grade software solutions. With nearly 75,000 clients, including major brands like Bridgestone, New Balance, Nucor, S&P Global, and Sony Music, Freshworks is committed to simplifying complex processes and enhancing productivity. The company’s innovative approach to AI helps eliminate friction within organizations, making employees more effective and driving business efficiency.

For those interested in following Freshworks' journey or learning more about their customer stories and latest news, further information can be found on their official website and social media platforms.

4. Conclusion

The announcement of a $400 million share repurchase program underscores Freshworks' confidence in its current market position and future growth trajectory. With a strong financial foundation and a clear strategy for capital allocation, Freshworks is poised to continue delivering value to its shareholders while investing in its innovative software solutions. This strategic move not only reflects the company's robust financial health but also its commitment to maximizing shareholder value in an increasingly competitive market.

Original press release