Going (Almost) All in on EX; Raises 2028 Growth and Margin Targets

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Going (Almost) All in on EX; Raises 2028 Growth and Margin Targets

C O M PA N Y N O T E

M a y 1 4 , 2 0 2 6

Freshworks, Inc. (FRSH) Neutral

CONCLUSION PRICE: US$8.42

The financial analyst session held in conjunction with Freshworks's annual Refresh TARGET: US$10.00

conference underscored management's commitment to its EX business. Recent 6x CY30E EV/FCF, discounted back 3 years

momentum with EX resulted in management raising LT targets for both growth and mgns, 8 by 21%. This assumes $779M in net cash and

months after providing them at the Sep 2025 AD, with the expectation that FRSH can now 323M shares.

become a Rule of ~50 company by 2028 (16% revenue growth + 32-34% FCF margin).

Billy Fitzsimmons, CFAThe increase to the FY28 tgt ($1.3B+ vs. $1.2B prior) is respectable given other names Sr. Research Analyst, Piper Sandler & Co.

in our list have taken LT tgts off the table since the start of the yr. We are encouraged by 312 281-3438, billy.fitzsimmons@psc.com

the execution, robust EX demand, and multitude of AI product announcements, but need Hannah Rudoff

to get comfortable with some of the factors called out in our 1Q26 recap note (see here), Research Analyst, Piper Sandler & Co.

particularly NOW signaling a move downmarket. Maintain Neutral rating and $10 PT. 503 275-8313, hannah.rudoff@psc.com

J.R. Herrera

• Strengthens Commitment to EX Business. In recent years, FRSH has been Research Analyst, Piper Sandler & Co.

503 275-8314, jr.herrera@psc.com increasingly shifting focus away from CX and toward EX, which has grown from 37%

of ARR in 2021 to nearly 60% of ARR today. The financial analyst session reinforced Changes Previous Current

management's appetite to lean further into EX. Mgmt feels well-equipped to take share in Rating — Neutral