Freshworks Down 60% Despite 16% Revenue Growth
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- Gagnon Advisors disclosed selling 564,879 Freshworks shares (~$6.67M, based on Q4 2025 average pricing) in a February 12, 2026 SEC filing, reducing the position to 4.39% of its reportable AUM.
- Freshworks (NASDAQ: FRSH) was priced at $7.04 on February 12, 2026, down 60.4% over the prior year and underperforming the S&P 500 by 73.35 percentage points.
- Freshworks closed 2025 with $838.8M in revenue, up 16% year-over-year, including $222.7M in Q4 revenue, and reported $843.7M in cash and marketable securities.
- Freshworks swung to $13.2M in full-year GAAP operating income (from a sizable 2024 loss) and expanded its non-GAAP operating margin to 21.2%.
- Gagnon Advisors' top remaining holdings after the filing include WGS ($16.53M, 10.5% of AUM), AMRC ($13.85M, 8.8%), and AL ($12.62M, 8.0%), underscoring a portfolio that otherwise leans into energy and industrial names.
Why it matters: Gagnon Advisors trimmed Freshworks to 4.4% of AUM after selling ~$6.67M in shares — a notable cut from a fund otherwise heavy in energy and industrial names. The tension: Freshworks swung to GAAP profitability with 16% revenue growth in 2025, yet shares are down 60%, leaving long-term investors weighing operational strength against persistent selling pressure on a name that has badly underperformed the S&P 500.
