Operating cash flow of $77.7M in 2026Q3 far exceeded net income of $18.3M, lifting FCF margin to 29.6%, though buybacks of $159.0M in 2026Q2 and $213.9M of net acquisitions in 2024Q2 show capital deployment has been episodic.
Freshworks Inc. (FRSH) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Cash from Operations | 269.49M | 250.92M | 160.65M | 86.18M | -2.52M | 11.46M | 32.53M | -8.16M | 10.24M | 15.54M | 16.8M | 23.74M | 15.51M |
| Operating CF Margin % | - | 29.91% | 22.3% | 14.45% | -0.51% | 3.09% | 13.03% | -4.74% | 8.1% | 13.09% | 13.24% | 19.75% | 15.92% |
| Operating CF Growth % | 101.29% | 56.19% | 86.41% | 3512.99% | -122.03% | -64.77% | 498.46% | -179.73% | -34.09% | -7.54% | -29.23% | 53.09% | - |
| Net Income | 208.17M | 183.72M | -95.37M | -137.44M | -232.13M | -192M | -57.29M | -31.13M | 4.32M | -7K | 2.65M | 4.91M | 1.25M |
| Depreciation & Amortization | 31.68M | 25.86M | 19.41M | 12.14M | 11.5M | 13.29M | 11.17M | 6.26M | 7.24M | 10.45M | 12.24M | 10M | 8.62M |
| Stock-Based Compensation | 117.9M | 146.82M | 216.71M | 210.71M | 207.7M | 173.44M | 0 | 273K | 495K | 687K | 898K | 1.08M | 1.9M |
| Deferred Taxes | 10.28M | 2.64M | -12.64M | -1.32M | -2.4M | -1.91M | -2.36M | -939K | 1.3M | -19.72M | 1.72M | 1.71M | 1.12M |
| Other Non-Cash Items | -89.21M | -117.95M | 22.8M | 16.17M | 23.92M | -9.39M | 52.09M | 3.65M | -875K | 32.84M | 3.83M | 9.07M | 5.65M |
| Working Capital Changes | -1.61M | 9.83M | 9.73M | -14.08M | -11.1M | 28.02M | 28.92M | 13.72M | -2.24M | -8.71M | -4.53M | -3.02M | -3.03M |
| Change in Receivables | -16.35M | -28.06M | -17.14M | -26.98M | -18.89M | -17.51M | -9.93M | -9.37M | 238K | 1.54M | -522K | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 19.46M | 9.03M | 6.88M | 0 | -32K |
| Change in Payables | 10.85M | 9.57M | -2.2M | -2.42M | 77K | 1.99M | 53K | 2.67M | -1.21M | -783K | -1.1M | 3.63M | -766K |
| Cash from Investing | 63.04M | 206.13M | 38.8M | 158.5M | -284.83M | -420.3M | -11.43M | -148.95M | 6.99M | -1.65M | -19.39M | -19.55M | -9.53M |
| Capital Expenditures | -16.13M | -5.7M | -9.18M | -2.07M | -12.24M | -5.57M | -10.76M | -11.51M | -576K | -3.99M | -18.01M | -10.43M | -4.07M |
| CapEx % of Revenue | 1.73% | 0.68% | 1.27% | 0.35% | 2.46% | 1.5% | 4.31% | 6.67% | 0.46% | 3.36% | 14.19% | 8.68% | 4.18% |
| Acquisitions | -56.91M | 0 | -213.91M | 0 | 137K | 0 | -5.08M | -5.97M | -134K | 0 | -2.56M | -9.69M | -4.61M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -27.09M | -32.24M | -5.21M | -6.16M | 0 | -2.93M | 0 | -3.32M | 7.72M | 2.34M | 1.27M | 1.08M | 2.67M |
| Cash from Financing | -277.08M | -445.2M | -67.26M | -60.62M | -156.35M | 1.06B | -1.91M | 150.23M | -13.63M | -13.78M | -2.21M | -2.38M | -4.63M |
| Debt Issued (Net) | -8.55M | -8.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -231.7M | -380M | -6.96M | 7.36M | 10.87M | 1.07B | 246K | 149.82M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -234.62M | -386.31M | -13.69M | 0 | 0 | 0 | 0 | -100M | -29K | -5K | -84K | -10K | -1.52M |
| Other Financing | -36.84M | -56.65M | -60.3M | -67.98M | -167.22M | -10.98M | -2.15M | 412K | -13.63M | -13.78M | -2.21M | -2.38M | -4.63M |
| Net Change in Cash | 46.76M | 11.85M | 132.19M | 184.06M | -443.71M | 649.53M | 19.2M | -6.88M | 3.59M | 105K | -4.8M | 1.81M | 1.35M |
| Free Cash Flow | 265.28M | 245.22M | 145.98M | 77.84M | -14.77M | 2.34M | 23.52M | -22.99M | 9.66M | 11.55M | -1.21M | 13.31M | 11.44M |
| FCF Margin % | 28.4% | 29.23% | 20.26% | 13.05% | -2.97% | 0.63% | 9.42% | -13.34% | 7.64% | 9.73% | -0.95% | 11.07% | 11.75% |
| FCF Growth % | 27.3% | 67.98% | 87.55% | 627% | -730.39% | -90.04% | 202.28% | -337.91% | -16.33% | 1057.71% | -109.06% | 16.35% | - |
| FCF per Share | 1.00 | 0.83 | 0.49 | 0.27 | -0.05 | 0.01 | 0.09 | -0.49 | 0.57 | 0.68 | -0.07 | 0.79 | 0.95 |
| FCF Conversion (FCF/Net Income) | 1.27x | 1.37x | -1.68x | -0.63x | 0.01x | -0.06x | -0.57x | 0.26x | 2.37x | -2219.57x | 6.34x | 4.83x | 12.43x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 11.95M | 12.03M | 13.41M | 10.46M | 0 | 3.46M | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying FRSH stock.
Freshworks Inc. (FRSH) generated $250.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Freshworks Inc. (FRSH) generated $245.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Freshworks Inc. (FRSH) spent $5.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Freshworks Inc. (FRSH) spent $386.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Net income reliance on interest
Metrics are mathematically derived from official filings.
Operating Cash Flow Diverges From Reported Earnings
Based on reported quarterly figures, Freshworks generated $77.7M of operating cash flow in 2026Q3 against only $18.3M of net income, while several earlier quarters showed negative net income alongside positive operating cash flow of roughly $58M to $63M, a pattern that suggests reported earnings understate cash generation.
The persistent gap between operating cash flow and net income is largely explained by stock-based compensation, which ran between $38M and $52M per quarter in most periods and is a non-cash charge that depresses GAAP earnings. The OCF/NI ratio swinging from negative values to 4.25x and 0.37x indicates that quarterly net income is too volatile to serve as a reliable conversion benchmark, and investors should monitor cash conversion on a trailing-twelve-month basis instead.
Free Cash Flow Margins Recovering Toward Upper Range
According to the reported cash flow statements, FCF margins expanded from 18.7% in 2024Q4 to 29.6% in 2026Q3, with free cash flow reaching $72.7M in the latest quarter, suggesting a meaningful improvement in cash productivity relative to revenue.
Because capital expenditure remains below 2.1% of revenue in every reported quarter, the FCF margin trajectory is driven almost entirely by operating cash generation rather than capital discipline. The step-up in FCF margin likely reflects scaling of the subscription base alongside cost control, though quarterly volatility of several percentage points warrants caution in extrapolating the most recent quarter.
Acquisitions and Buybacks Drive Cash Outflows
As reported in financial statements, Freshworks deployed $159.0M on buybacks in 2026Q2 and $213.9M on net acquisitions in 2024Q2, with no dividends paid across the ten quarters shown, indicating capital returns have been episodic rather than a steady policy.
The large lumpy outflows for repurchases and acquisitions suggest management is using accumulated cash to offset dilution from stock compensation and to pursue inorganic growth, which may be a rational use of a balance sheet carrying substantial cash. Investors should monitor whether buyback activity keeps pace with SBC issuance, since repurchases that merely offset dilution would not represent net value return to shareholders.
Stock Compensation Masks True Cash Economics
Based on reported figures, stock-based compensation of $38.8M to $58.7M per quarter sits alongside operating cash flow that may be flattered by the non-cash nature of this expense, a dynamic the cash flow statement does not fully capture on a dilution-adjusted basis.
Adding back SBC to operating cash flow makes reported cash generation look stronger than the economic cost borne by existing shareholders, since equity issued to employees dilutes ownership. Treating SBC as a real operating cost would reduce free cash flow materially in most quarters, and the cumulative dilution impact warrants further investigation before concluding the business is as cash generative as headline FCF margins suggest.