Freshworks Initiates $400 Million Share Repurchase Program Amid Prolonged Stock Decline

Freshworks Authorizes $400 Million Share Repurchase Programme

Company Overview Freshworks Inc., a customer experience software maker, has announced a share repurchase programme of up to $400 million to buy back outstanding Class A common stock.

Programme Details The programme was approved by Freshworks' board on February 26, 2026, and authorizes the company to repurchase shares through open market purchases, privately negotiated deals, or other transactions. The timing and amount of the repurchases will be determined at the company's discretion, subject to compliance with US securities regulations, including Rule 10b-18 and Rule 10b5-1 plans.

Background Freshworks' stock has declined significantly over the past year, falling from $17.31 as of February 26, 2025, to around $7.93 as of February 26, 2026. The stock price has fallen more than 60% over the past year, reflecting weak investor sentiment despite improving financial performance.

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Financial Performance Freshworks reported a 16% year-on-year rise in revenue to $838.8 million for the full year ended December 31, 2025, driven by growing adoption of its AI-powered software. The company achieved GAAP operating income of $39.7 million in Q4, compared with a loss of $23.8 million last year, with operating margin expanding to 17.8%.

Share Buyback Rationale The share buyback programme is expected to improve shareholder returns by reducing the number of outstanding shares and signalling management's confidence in future performance. The programme demonstrates the company's confidence in its long-term strategy and dedication to disciplined capital allocation.