JMP reiterates Market Outperform rating on Freshworks stock after strong Q2

Published 30/07/2025, 10:02
JMP reiterates Market Outperform rating on Freshworks stock after strong Q2

Investing.com - JMP Securities has reiterated its Market Outperform rating and $27.00 price target on Freshworks Inc (NASDAQ:FRSH), a $4.1 billion market cap software company, following the company’s second-quarter earnings report.

Freshworks reported better-than-expected Q2 results with non-GAAP earnings per share of $0.18, exceeding the consensus estimate of $0.11, and achieving a 21.9% operating margin.

The company posted revenue of $205 million, surpassing consensus expectations of $199 million, representing an 18% year-over-year increase, though slightly down from the 19% growth recorded in the previous quarter.

Billings for the quarter reached $213 million, above the consensus estimate of $209 million, marking a 15% year-over-year increase, compared to 16% growth in the previous quarter.

The stock rose approximately 2% in after-hours trading following the earnings announcement, despite having fallen 14% year-to-date, underperforming compared to the Russell 3000’s 8% increase during the same period.

In other recent news, Freshworks Inc. reported its second-quarter 2025 earnings, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.18, exceeding the forecasted $0.12, representing a 50% surprise. Revenue for the quarter reached $204.7 million, which was higher than the anticipated $198.84 million. These results highlight Freshworks’ ability to outperform analyst projections. The earnings announcement has been one of the significant developments for the company recently. Despite the positive earnings report, the stock experienced a slight decline, though it did see gains in aftermarket trading. Investors and analysts are closely monitoring these developments as they assess Freshworks’ financial performance.

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