NEW YORK, June 24, 2026, 18:03 (EDT)
- Freshworks shares ended the session 1.96% higher at $9.37. Trading volume came in at 34.65 million shares, about 301% above its 65-day average.
- Roughly 17% of the public float changed hands, about 1.5 times the company’s last short interest figure.
- Russell index changes lock in when the U.S. market closes on June 26. The new indexes start trading June 29.
Freshworks Inc. (NASDAQ:FRSH) finished Wednesday at $9.37, up 1.96%. Volume spiked, with 34.65 million shares traded, nearly triple its 65-day average. After the bell, shares slipped to $9.21 as of 5:54 p.m. EDT.
The trading volume hit about 17% of Freshworks’ public float, which stands at 202.59 million shares. That was more than the 22.67 million shares sold short as of May 29. Traders said Wednesday’s action was big enough to move positions around, but didn’t cause a major price gap.
The stock outperformed the iShares Russell 2000 ETF (NYSEARCA:IWM), which traded 0.41% higher at $296.69 late in the session, market data showed.
FTSE Russell said the 2026 Russell reconstitution wraps up after U.S. markets close Friday, June 26, with the new indexes set to trade on Monday, June 29. Catherine Yoshimoto, director of product management at FTSE Russell, said the rebalance usually lands on “one of the highest trading volume days of the year.” LSEG
T. Rowe Price said in a June analysis that as of June 30, 2025, about $12.2 trillion in assets were tied to Russell U.S. indexes. The firm said the 2026 rebalance is set to bring big changes in benchmark weights for small-cap growth and other Russell indexes.
Freshworks shares are still down sharply this year, falling 23.5%. Over the last 12 months, the stock is off 35.9%. Wednesday’s close stayed far under the 52-week high of $15.47.
Freshworks’ operating outlook sends a mixed signal. Revenue in the first quarter rose 16% to $228.6 million, and non-GAAP operating income reached $41.0 million. But the non-GAAP operating margin dropped to 17.9%, down from 23.6% last year.
Freshworks CEO Dennis Woodside said it was the company’s “sixth straight quarter of exceeding expectations,” pointing to demand for its Employee Experience platform. Customers bringing in more than $100,000 in annual recurring revenue increased 29% to 1,646. Net dollar retention held at 106%. Freshworks Investor Relations
Freshworks is sticking with cost cuts. In a May 5 filing, the company said it will lay off around 500 people, about 11% of staff, and take $7 million to $9 million in restructuring charges for Q2. Freshworks said most of the plan should wrap up by June 30.
Freshworks is projecting Q2 revenue between $232 million and $235 million and sees full-year 2026 revenue coming in at $958 million to $964 million. Traders are watching to see if the Friday Russell print stays inside Wednesday’s $9.12 to $9.71 band.
