Stock Traders Purchase Large Volume of Call Options on Freshworks (NASDAQ:FRSH)

Freshworks Inc. (NASDAQ:FRSH) saw some unusual options trading on Wednesday. Stock investors purchased 4,648 call options on the company. This is an increase of 95% compared to the typical volume of 2,384 call options.

Freshworks News Summary

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 results topped estimates — Freshworks reported $0.14 EPS (vs. $0.11 consensus) and $222.7M revenue (vs. ~$218.8M est.), with 14% YoY revenue growth and improved cash flow and margins, which supports the company’s operational momentum. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Revenue outlook and AI tailwinds — management gave FY2026 revenue guidance ($952M–$960M) above estimates and highlighted AI-driven product adoption and an ambition to reach $1.3B ARR by 2028, a growth narrative investors may reward if execution continues. Freshworks forecasts annual revenue above estimates
• Positive Sentiment: Unusual options activity — a spike in call buying (4,648 calls, ~95% above average) signals short-term bullish/speculative interest from traders that could support near-term upside if momentum resumes.
• Neutral Sentiment: Mixed guidance — Q1 EPS guidance ($0.10–$0.12) was above consensus, but FY EPS guidance ($0.55–$0.57) trails the consensus (~$0.69). Revenue guidance is constructive while EPS puts near-term margin expectations in question; this mixed set of signals is why the market reaction is split.
• Negative Sentiment: Analyst price-target cuts and downgrades — multiple firms trimmed targets (e.g., JMP/Citizens from $27→$16, Wells Fargo from $13→$10, Cantor Fitzgerald from $15→$12) which increases selling pressure and reduces near-term analyst-driven demand. Wells Fargo target cut Cantor Fitzgerald target cut
• Negative Sentiment: FY EPS below Street expectations — investors appear focused on the lower FY EPS guidance (and the gap vs. consensus), which likely explains the immediate share weakness despite the top-line beat; near-term multiple compression is possible until guidance proves conservative.

Analyst Ratings Changes

A number of brokerages have issued reports on FRSH. Citigroup restated an “outperform” rating on shares of Freshworks in a report on Wednesday. Zacks Research cut Freshworks from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Oppenheimer set a $15.00 price objective on Freshworks in a research report on Wednesday. Citizens Jmp reduced their price target on Freshworks from $27.00 to $16.00 and set a “market outperform” rating for the company in a research note on Wednesday. Finally, BTIG Research assumed coverage on Freshworks in a research report on Tuesday, December 16th. They set a “neutral” rating on the stock. Eight analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $15.29.

Freshworks Price Performance

FRSH stock traded down $1.31 during mid-day trading on Wednesday, reaching $7.42. 15,096,166 shares of the company traded hands, compared to its average volume of 5,559,985. The company has a fifty day moving average price of $11.67 and a 200-day moving average price of $12.06. Freshworks has a 52-week low of $7.00 and a 52-week high of $18.77. The company has a market capitalization of $2.09 billion, a P/E ratio of -73.84 and a beta of 0.89.

Freshworks (NASDAQ:FRSH) last released its quarterly earnings results on Tuesday, February 10th. The company reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.03. Freshworks had a negative net margin of 3.65% and a negative return on equity of 0.37%. The firm had revenue of $222.74 million for the quarter, compared to analysts’ expectations of $218.76 million. During the same quarter in the prior year, the firm posted $0.14 earnings per share. The business’s quarterly revenue was up 14.5% on a year-over-year basis. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. As a group, analysts forecast that Freshworks will post -0.19 EPS for the current year.

Insider Transactions at Freshworks

In related news, CAO Philippa Lawrence sold 5,846 shares of the firm’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $12.06, for a total transaction of $70,502.76. Following the completion of the sale, the chief accounting officer directly owned 392,711 shares of the company’s stock, valued at $4,736,094.66. This trade represents a 1.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Mika Yamamoto sold 15,012 shares of the stock in a transaction on Friday, December 5th. The stock was sold at an average price of $13.00, for a total value of $195,156.00. Following the sale, the insider owned 490,350 shares in the company, valued at $6,374,550. The trade was a 2.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 22,267 shares of company stock worth $282,301. Company insiders own 11.17% of the company’s stock.

Hedge Funds Weigh In On Freshworks

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Norges Bank bought a new position in Freshworks during the 4th quarter worth approximately $31,873,000. Eminence Capital LP boosted its stake in shares of Freshworks by 39.4% during the second quarter. Eminence Capital LP now owns 7,334,601 shares of the company’s stock valued at $109,359,000 after purchasing an additional 2,074,641 shares during the period. Jupiter Asset Management Ltd. boosted its stake in shares of Freshworks by 1,528.6% during the fourth quarter. Jupiter Asset Management Ltd. now owns 1,708,811 shares of the company’s stock valued at $20,933,000 after purchasing an additional 1,603,887 shares during the period. Qube Research & Technologies Ltd grew its holdings in shares of Freshworks by 132.6% in the third quarter. Qube Research & Technologies Ltd now owns 2,790,166 shares of the company’s stock worth $32,840,000 after purchasing an additional 1,590,384 shares during the last quarter. Finally, Squarepoint Ops LLC increased its stake in shares of Freshworks by 345.1% in the second quarter. Squarepoint Ops LLC now owns 1,835,798 shares of the company’s stock worth $27,372,000 after buying an additional 1,423,391 shares during the period. Hedge funds and other institutional investors own 75.58% of the company’s stock.

Freshworks Company Profile

Freshworks, Inc is a global provider of cloud-based customer engagement software designed to help businesses streamline customer support, sales, marketing, and IT service operations. The company’s integrated suite of solutions enables organizations of all sizes to deliver seamless experiences across multiple channels, including email, chat, phone, and social media. Freshworks’ platform is built on modern, user-friendly interfaces and offers native automation, AI-powered insights, and analytics to improve efficiency and customer satisfaction.

The company’s flagship product, Freshdesk, serves as a helpdesk solution for customer support teams, while Freshservice addresses IT service management needs.