Freshworks, a publicly owned company headquartered in the US, was founded in India in 2010 and employs approximately 7,680 individuals. The company specializes in software development, focusing on customer engagement solutions for businesses of all sizes.
Freshworks' management authorized a $400 million share repurchase program on February 26, 2026. This decision comes as the AI-powered cloud-based software provider, trading at $8.01, experienced a 34.61% year-to-date decline and a 47.37% drop over the past year. The buyback program raises questions among investors regarding its effectiveness amidst potential AI disruption to the business model, which serves over 74,000 businesses including Sony and Bridgestone. Previously, on March 19, Oppenheimer downgraded Freshworks from Outperform to Perform, removing its $15 price target. Analysts, led by Brian Schwartz, cited reassessments of the software sector due to AI disruption risks, advising caution on Freshworks, Adobe, and Paycom Software, while favoring Oracle, Microsoft, and Agilysys. This follows research published by Freshworks on March 18, which estimated that software complexity costs UK organizations over £32 billion annually. The company's Cost of Complexity Report indicated that businesses regretted more than a fifth of their overall software spending, linking this regret to tools requiring longer rollout times and proving difficult for employees to use.
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