FRSH Freshworks Inc.
High-Growth Software
F 30.0 / 100 pillar composite

AlphaQuality composite grade, weighted for high-growth software businesses.

⚠ 4 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a high-growth software business.

Grade overrides the 30.0 pillar composite — hard gates always win.

Profitability

Weight: 15%
D- 30
  • 5yr Avg ROIC -12.4%
  • Operating Margin Trend +14.13 pp/yr

Capital Efficiency

Weight: 15%
F 13
  • 5yr Avg ROE -9.2%
  • 5yr Share-Count CAGR 1.6%

Growth Quality

Weight: 35%
B 72
  • 5yr Revenue CAGR 22.6%
  • 5yr EPS CAGR 0.0%
  • Revenue-Growth Years (5) 5/5

Cash Generation

Weight: 20%
A- 84
  • 5yr FCF Margin 12.0%
  • 5yr FCF/NI Conversion 1.33x

Balance Sheet

Weight: 10%
B+ 77
  • Net Debt / EBITDA -7.01x
  • Interest Coverage (EBIT/Int) 30.00x
  • Altman Z-Score 0.44

Stability

Weight: 5%
C+ 58
  • EPS Volatility (σ/μ) 0.62
  • Piotroski F-Score 7
  • Negative-Revenue Years (5) 0/5

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Holding

3 of 3 gurus held; 2 added; 1 trimmed.

Holders
3
Avg Δ position
-2.7%
New buys
0
Full exits
0
As of Q1 2026