Freshworks shares have fallen 26.1% since December 2025 to $9.30, prompting investors to reassess the stock. The company posted a 25.8% annualized revenue growth rate over the past five years and maintained an elite 85% gross margin over the last year, with margins expanding by 1.6 percentage points in the past two years. However, its net revenue retention rate stood at 106% in the first quarter, indicating moderate expansion within its existing customer base. The stock currently trades at 2.7 times forward price-to-sales.
Freshworks IncStock down 26% in six months, with moderate net revenue retention of 106% and low price-to-sales of 2.7x, raising buy-or-sell questions.