Gagnon Securities Reduces Freshworks Stake
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 16 2026
0mins
Should l Buy FRSH?
Source: Fool
- Share Reduction Details: Gagnon Securities reported a sale of 635,807 shares of Freshworks in its SEC filing on February 12, 2026, with an estimated trade value of $7.51 million, indicating a cautious outlook on the company's future performance.
- Ownership Proportion Change: Following this sale, Gagnon Securities' stake in Freshworks decreased to 1,230,011 shares, valued at $15.07 million, with an overall position value drop of $6.89 million, reflecting diminished market confidence in the stock.
- Market Performance Analysis: As of February 12, 2026, Freshworks shares were priced at $7.04, down 60.4% over the past year and trailing the S&P 500 by 73.35 percentage points, indicating a lack of competitive strength in the market.
- Financial Overview: Freshworks achieved $838.81 million in revenue for 2025, a 16% increase year-over-year, and despite the stock price decline, the CEO noted better-than-expected growth and profitability metrics, suggesting the business is not in operational free-fall.
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Analyst Views on FRSH
Wall Street analysts forecast FRSH stock price to rise
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 8.390
Low
13.00
Averages
18.88
High
25.00
Current: 8.390
Low
13.00
Averages
18.88
High
25.00
About FRSH
Freshworks Inc. is a software company. Its software-as-a-service (SaaS) solutions fall into two product families: Customer Experience (CX) and Employee Experience (EX). CX products include Freshdesk, Freshchat, Freshsales, and Freshmarketer. EX products include Freshservice, Freshservice for Business Teams, and Device42. The Company's generative artificial intelligence (AI) solutions, Freddy AI Agent and Freddy AI Copilot, further enhance the customer and employee experience.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Financial Outlook Reaffirmed: Freshworks achieved profitability and record free cash flow in fiscal year 2025, reaffirming its financial estimates for fiscal year 2026, indicating the company's confidence in sustained growth and financial health.
See More
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- Positive Market Reaction: Following the announcement, Freshworks' stock rose 4.94% in premarket trading to $7.64 per share, indicating investor optimism regarding the company's future growth potential.
- Clear Growth Targets: Freshworks has set a target to achieve $1.3 billion in annual recurring revenue (ARR) by 2028, demonstrating its strategic focus on sustained growth through its EX platform and AI initiatives.
- Industry Context Analysis: Despite facing downgrades from Jefferies and concerns over AI, Freshworks showcases resilience and long-term growth potential in the SaaS market through its buyback program and ambitious growth targets.
See More
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- Software Earnings: Several companies are reporting their software earnings this week, which is significant for the industry.
- Sector Challenges: The software sector has faced difficulties recently, largely due to rising concerns surrounding artificial intelligence.
- Market Impact: The earnings reports may influence market perceptions and investor confidence in the software industry.
- Future Outlook: The results could provide insights into how companies are adapting to the challenges posed by AI advancements.
See More
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- Follow-Up Downgrades: Following Jefferies, UBS and Baird have also reduced their price targets to $11 and $10 respectively, suggesting a cautious sentiment towards Freshworks that could influence investor decisions moving forward.
- Financial Performance Highlights: Despite the pressures, Freshworks achieved a 16% year-over-year revenue growth and a 46% increase in adjusted free cash flow in 2025, indicating that the company still possesses growth potential, prompting investors to remain patient and observe future performance.
See More
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- Cybersecurity Stocks Volatility: The Global X Cybersecurity ETF (BUG) tumbled 4% amid anxiety over artificial intelligence, with CrowdStrike and Zscaler each falling 10%, reflecting market sensitivity to security risks posed by emerging technologies.
- ImmunityBio's Strong Growth: ImmunityBio reported a staggering 700% year-over-year revenue growth and expanded Anktiva approvals for lung cancer, leading to a 12% stock increase, showcasing its strong market potential in the clinical-stage immunotherapy sector.
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See More
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- Pharmaceutical Competition: Eli Lilly triumphed over Novo Nordisk in a head-to-head trial, with Novo's obesity drug CagriSema proving less effective than Lilly's Zepbound, resulting in a 15% drop in Novo's shares while Lilly's rose over 3%, indicating increased market confidence in Lilly.
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