The company maintains a healthy liquidity position with a current ratio of 1.94 and a modest debt-to-equity ratio of 0.03 as of 2026Q1, reflecting a stable but capital-light asset structure.
| Total Current Assets | 1.01B | 1.07B | 1.27B | 1.36B | 1.26B | 1.42B | 312.4M | 276.5M | 12.05M | 9.35M | 13.12M | 18.9M | 16.33M |
| Cash & Short-Term Investments | 779.24M | 843.75M | 1.07B | 1.19B | 1.15B | 1.32B | 238.12M | 222.86M | 5.77M | 2.17M | 2.07M | 6.87M | 5.06M |
| Cash Only | 548.17M | 632.15M | 620.32M | 488.12M | 304.09M | 747.86M | 95.38M | 75M | 5.77M | 2.17M | 2.07M | 6.87M | 5.06M |
| Short-Term Investments | 231.07M | 211.6M | 449.75M | 699.51M | 843.4M | 575.68M | 142.73M | 147.86M | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 127.34M | 150.82M | 122.91M | 97.18M | 73.27M | 51.76M | 34.27M | 24.3M | 3.56M | 3.79M | 5.33M | 4.94M | 5.66M |
| Days Sales Outstanding | 53.82 | 65.63 | 62.27 | 59.47 | 53.7 | 50.92 | 50.1 | 51.44 | 10.29 | 11.65 | 15.33 | 15.01 | 21.21 |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 549K | 719K | 917K | 868K | 640K |
| Days Inventory Outstanding | - | - | - | - | - | - | - | - | 9.82 | 10.11 | 11.81 | 11.91 | 11.87 |
| Other Current Assets | 100.23M | 72.77M | 72.45M | 70.74M | 36.11M | 14.64M | 9.17M | 5.45M | 2.17M | 2.67M | 4.8M | 6.22M | 4.97M |
| Total Non-Current Assets | 598.57M | 535.38M | 346.46M | 101.23M | 123.34M | 61.44M | 55.02M | 45.27M | 234.67M | 236.82M | 260.76M | 256.57M | 250.62M |
| Property, Plant & Equipment | 81.19M | 78.74M | 62.78M | 55.5M | 57.16M | 21.48M | 20.78M | 19.96M | 4.87M | 10.06M | 28.52M | 21.26M | 12.12M |
| Fixed Asset Turnover | 11.80x | 10.65x | 11.47x | 10.75x | 8.71x | 17.27x | 12.01x | 8.64x | 25.98x | 11.79x | 4.45x | 5.65x | 8.04x |
| Goodwill | 199.32M | 146.68M | 147.01M | 6.18M | 6.18M | 6.18M | 6.18M | 4.47M | 101.76M | 107.75M | 108.47M | 106.51M | 101.08M |
| Intangible Assets | 96.7M | 76.99M | 90.84M | 0 | 303K | 1.89M | 6.22M | 4.4M | 87M | 87M | 87M | 87M | 87M |
| Long-Term Investments | 0 | 0 | 0 | 0 | 72K | 0 | 0 | 0 | 126.18M | 0 | 57K | 143K | 225K |
| Other Non-Current Assets | 45.34M | 75.51M | 37.32M | 29.54M | 50.94M | 25.6M | 17.44M | 14.37M | -90.31M | 28.45M | 31.75M | 39.28M | 48.85M |
| Total Assets | 1.61B | 1.6B | 1.61B | 1.46B | 1.38B | 1.48B | 367.42M | 321.77M | 246.72M | 246.17M | 273.87M | 275.47M | 266.95M |
| Asset Turnover | 0.57x | 0.52x | 0.45x | 0.41x | 0.36x | 0.25x | 0.68x | 0.54x | 0.51x | 0.48x | 0.46x | 0.44x | 0.36x |
| Asset Growth % | -13.37% | -0.57% | 10.65% | 5.55% | -6.92% | 303.57% | 14.19% | 30.42% | 0.22% | -10.11% | -0.58% | 3.19% | - |
| Total Current Liabilities | 520.05M | 498.03M | 407.71M | 327.21M | 271.69M | 223.35M | 152.24M | 98.38M | 32.79M | 27.85M | 22.9M | 24.15M | 18.56M |
| Accounts Payable | 18.58M | 11.51M | 1.62M | 3.48M | 5.91M | 6.32M | 3.71M | 3.65M | 4.77M | 5.39M | 6.16M | 9.8M | 3.06M |
| Days Payables Outstanding | 29.69 | 33.3 | 5.21 | 12.31 | 22.52 | 29.57 | 25.8 | 36.59 | 85.34 | 75.78 | 79.32 | 134.43 | 56.68 |
| Short-Term Debt | 0 | 0 | 0 | 0 | 6.78M | 0 | 0 | 0 | 11.4M | 8.4M | 7.88M | 2.8M | 2.8M |
| Deferred Revenue (Current) | 1.48B | 385.32M | 327.92M | 270.66M | 209.11M | 163.43M | 107M | 68.68M | 1.72M | 918K | 1.36M | 1.79M | 2.85M |
| Other Current Liabilities | 109.41M | 97.63M | 3.69M | 22.27M | 28.56M | 21.47M | 8.98M | 6.73M | 14.9M | 13.14M | 7.5M | 9.76M | 9.85M |
| Current Ratio | 1.94x | 2.14x | 3.10x | 4.14x | 4.63x | 6.36x | 2.05x | 2.81x | 0.37x | 0.34x | 0.57x | 0.78x | 0.88x |
| Quick Ratio | 1.94x | 2.14x | 3.10x | 4.14x | 4.63x | 6.36x | 2.05x | 2.81x | 0.35x | 0.31x | 0.53x | 0.75x | 0.85x |
| Cash Conversion Cycle | 24.13 | - | - | - | - | - | - | - | -65.23 | -54.01 | -52.18 | -107.51 | -23.6 |
| Total Non-Current Liabilities | 66.13M | 72.03M | 66.25M | 57.3M | 56.71M | 21.43M | 2.91B | 1.35B | 106.11M | 116.16M | 149.48M | 153.67M | 156.65M |
| Long-Term Debt | 29.4M | 33.28M | 0 | 0 | 0 | 0 | 0 | 0 | 70.64M | 86.99M | 100.97M | 108.24M | 112.2M |
| Capital Lease Obligations | 91.51M | 33.28M | 30.22M | 26.8M | 28.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 23.12M | 24.46M | 44.18M | 42.44M | 42.07M |
| Other Non-Current Liabilities | 36.73M | 5.47M | 36.03M | 30.5M | 28.53M | 21.43M | 2.91B | 1.35B | 3.8M | 3.92M | 3.92M | 2.45M | 1.74M |
| Total Liabilities | 586.18M | 570.06M | 473.96M | 384.51M | 328.4M | 244.77M | 3.06B | 1.44B | 147.7M | 144M | 172.38M | 177.81M | 175.65M |
| Total Debt | 29.4M | 66.56M | 38.29M | 29.49M | 34.95M | 0 | 0 | 0 | 82.04M | 95.39M | 108.84M | 111.04M | 115M |
| Net Debt | -518.77M | -565.58M | -582.02M | -458.63M | -269.14M | -747.86M | -95.38M | -75M | 76.28M | 93.22M | 106.78M | 104.17M | 109.94M |
| Debt / Equity | 0.03x | 0.06x | 0.03x | 0.03x | 0.03x | - | - | - | 0.83x | 0.93x | 1.07x | 1.14x | 1.26x |
| Debt / EBITDA | 0.71x | 0.94x | - | - | - | - | - | - | 4.43x | - | 4.97x | 4.33x | 4.81x |
| Net Debt / EBITDA | -12.57x | -7.95x | - | - | - | - | - | - | 4.12x | - | 4.88x | 4.06x | 4.60x |
| Interest Coverage | - | - | - | - | - | - | - | - | 2.11x | -2.85x | - | - | 1.31x |
| Total Equity | 1.02B | 1.03B | 1.14B | 1.07B | 1.05B | 1.24B | -2.7B | -1.12B | 99.02M | 102.17M | 101.5M | 97.66M | 91.3M |
| Equity Growth % | -49.95% | -9.25% | 6.12% | 1.94% | -15.04% | 145.91% | -140.2% | -1233.8% | -3.08% | 0.67% | 3.93% | 6.96% | - |
| Book Value per Share | 3.60 | 3.52 | 3.78 | 3.66 | 3.70 | 4.49 | -10.66 | -23.93 | 5.82 | 6.06 | 6.05 | 5.79 | 7.54 |
| Total Shareholders' Equity | 1.02B | 1.03B | 1.14B | 1.07B | 1.05B | 1.24B | -2.7B | -1.12B | 99.02M | 102.17M | 101.5M | 97.66M | 91.3M |
| Common Stock | 3K | 3K | 3K | 3K | 3K | 3K | 1K | 1K | 170K | 170K | 170K | 169K | 169K |
| Retained Earnings | -3.56B | -3.55B | -3.74B | -3.64B | -3.5B | -3.27B | -2.7B | -1.12B | -22.32M | -18.61M | -18.61M | -21.21M | -26.13M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -3.65M | -1.59M | -338K | -754K | -7.43M | -747K | 411K | 139K | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Interest-dependent earnings quality
As reported in recent financial statements, Freshworks maintains a robust liquidity position with a current ratio of 1.94 as of 2026Q1, supported by a cash balance of $548.2 million that provides a significant buffer against potential volatility in subscription-based revenue streams and ongoing operational cash requirements.
The company's liquidity profile remains healthy, though the current ratio has trended downward from its peak of 4.14 in 2023Q4. This contraction suggests that while the company remains well-capitalized, it is increasingly deploying its cash reserves toward strategic initiatives or share repurchases rather than maintaining excess idle liquidity.
Based on the company's reported figures, total equity has remained relatively stable at approximately $1.0 billion, yet this stability masks the persistent impact of stock-based compensation which continues to weigh on the quality of shareholder equity and complicates the assessment of true organic value creation.
The persistent negative retained earnings balance of $3.6 billion highlights the company's historical reliance on external capital and aggressive reinvestment strategies. Investors should monitor whether the current equity base can support future growth without further dilutive actions, especially as the company attempts to transition toward a more mature enterprise-focused model.
According to recent SEC filings, Freshworks' asset base is characterized by minimal capital intensity, with net PPE of $81.2 million as of 2026Q1, reflecting a cloud-native business model that prioritizes software development over heavy physical infrastructure investment to maintain its competitive position in the mid-market.
The recent increase in goodwill to $199.3 million suggests a shift toward inorganic growth strategies to fill product gaps. This trend warrants close scrutiny, as it introduces potential impairment risks if the acquired technologies fail to integrate seamlessly or deliver the expected synergies within the broader platform ecosystem.
As indicated by the provided quarterly data, the company's balance sheet is potentially distorted by the rapid accumulation of goodwill and the reliance on interest-bearing cash, which may mask the underlying operational challenges of scaling the business in a highly competitive and evolving SaaS landscape.
The divergence between headline asset growth and core operational performance suggests that the balance sheet may be more sensitive to macroeconomic interest rate shifts than previously assumed. Investors should be wary of the potential for future goodwill write-downs if the company's up-market transition fails to meet growth expectations.
Quick answers to the most common questions about buying FRSH stock.
As of 2025, Freshworks Inc. (FRSH) had total assets of $1.60B including $1.07B in current assets.
Freshworks Inc. (FRSH) carries total debt of $66.6M, offset by $843.7M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Freshworks Inc. (FRSH) has total shareholders' equity (book value) of $1.03B ($3.52 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Freshworks Inc. (FRSH) reported a current ratio of 2.14x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.