NEW YORK, June 25, 2026, 15:03 (EDT)
- U.S. markets traded on a normal Thursday schedule. Nasdaq’s 2026 holiday table lists June 19 and July 3 as the next closes.
- Freshworks shares slipped 1.1%. Trading volume was more than double the 65-day average.
- Cash and investments make up around 30% of the company’s current market value.
- Russell U.S. index changes will take effect after the close on Friday.
Freshworks Inc. NASDAQ:FRSH slipped 1.12% to $9.265 as of 3:01 p.m. EDT Thursday, but the focus was on trading volumes. FRSH saw 29.7 million shares change hands, more than 2.5 times its 65-day average. Less than an hour remained in the regular session.
Heavy trading hit Freshworks again. The stock closed at $9.37 Wednesday with 34.69 million shares traded. On Tuesday, volume reached 24.33 million shares and the stock finished at $9.19. With Thursday’s number, total turnover for Wednesday and Thursday topped 64 million shares. The price was still under 1% higher than where it ended Tuesday.
That’s worth noting since price doesn’t say much by itself. Freshworks shares traded at $9.26, putting its market cap near $2.62 billion. Cash, cash equivalents, restricted cash and marketable securities totaled $780.4 million as of March 31, or around 30% of its equity value now.
Taking out cash and securities, the plain cash-adjusted value comes to about $1.84 billion. That’s around 1.9x the midpoint of Freshworks’ 2026 revenue forecast, which is $958 million to $964 million. This metric is rough and doesn’t subtract all liabilities.
Software names traded lower. The iShares Expanded Tech-Software Sector ETF (BATS:IGV) lost 1.36%. Salesforce Inc. NYSE:CRM dropped 1.76%. Freshworks didn’t stand out for its price move, but volume was heavy.
Freshworks’ market value of about $2.6 billion is inside the 2026 Russell 2000 size range, according to FTSE Russell, which lists the band from $146.4 million to $5.7 billion. That doesn’t confirm any index move, but it keeps the stock in the group where small-cap index flows can kick in. One market watchpoint for flow is index timing.
FTSE Russell said the reconstituted U.S. indexes go live after the U.S. close on June 26. This year’s June reconstitution drove $114.7 billion in stocks traded in the close on the NYSE and $102.5 billion on Nasdaq. No proof yet that Freshworks’ volume is tied to index moves.
Freshworks has yet to show business strength to match its balance sheet. Revenue climbed 16% in the first quarter to $228.6 million. Adjusted free cash flow came in at $55.8 million. Non-GAAP operating margin landed at 17.9%. CEO Dennis Woodside said Freshworks is now at “sixth straight quarter of exceeding expectations.” Freshworks Investor Relations
Cost and AI are shaping the story. Freshworks in May said it would cut 11% of its staff, which is around 500 jobs. CEO Woodside told Reuters that “over half of our code is written by AI.” He said automation has removed “rote work that technology can take care of.” According to Reuters, the company plans to redirect those savings into its Employee Experience business. Reuters
Analysts aren’t negative here. According to FactSet numbers on the WSJ site, there are seven buys and nine holds for the stock, no sell calls. Median price target sits at $11. Shares are trading near $9.28.
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