SAN MATEO, February 26 — The Freshworks share buyback program worth $400 million has been approved by the board of directors of Freshworks Inc, as the Nasdaq-listed software company moves to repurchase shares following an extended decline in its stock price.
Freshworks stated that the repurchase authorization allows the company to buy back shares of its Class A common stock through open market purchases, privately negotiated transactions, or other legally permitted methods.
The company clarified that the buyback does not obligate it to acquire a specific number of shares and may be modified, suspended, or discontinued depending on market conditions and regulatory requirements.
Freshworks Share Buyback Authorization Details
Under the approved Freshworks share buyback, the company may repurchase up to $400 million worth of its outstanding shares. The repurchases are expected to be executed in accordance with applicable United States securities regulations.
Freshworks indicated that transactions could be carried out under Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, which provide safe harbor guidelines for corporate share repurchases.
The announcement follows a period of sustained stock weakness. Freshworks’ shares were trading near $7.93, compared to approximately $17.31 one year earlier — representing a decline of more than 60% over the past 12 months, based on market data referenced in the report.
Financial Performance and Revenue Growth
Despite the prolonged stock decline, Freshworks reported revenue growth during the most recent financial year.
For the year ended December 31, 2025, the company posted revenue of approximately $838.8 million, reflecting a 16% year-on-year increase. In the fourth quarter, revenue reached about $222.7 million, up 14% compared to the same period a year earlier.
Freshworks also reported a transition to GAAP profitability during the year, alongside improved operating income and positive free cash flow generation exceeding $223 million.
Company officials stated that the capital return program reflects confidence in the business model and financial position.
Corporate Statement on Capital Allocation
In an official statement, Chief Executive Officer Dennis Woodside said the repurchase program demonstrates confidence in Freshworks’ strategy and long-term growth initiatives.
The company described the Freshworks share buyback as part of its disciplined capital allocation approach, aimed at returning value to shareholders while maintaining financial flexibility.
No fixed timeline for completion of the buyback has been specified.
Market Context and Broader Technology Sector Trends
Freshworks is listed on the Nasdaq Global Select Market under the ticker symbol FRSH and operates in the software-as-a-service segment, providing customer engagement and IT service management tools.
Technology stocks in the United States have experienced varied performance over the past year, with mid-cap SaaS companies facing valuation pressure amid changing investor preferences and macroeconomic conditions.
The Freshworks share buyback announcement comes at a time when several technology firms have undertaken capital return initiatives to address shareholder concerns related to share price volatility.
While the company’s operational metrics have shown revenue growth and cash flow improvement, the share price has remained under pressure relative to historical levels.
Background on Share Repurchase Programs
A share buyback enables a company to purchase its own shares from the open market, thereby reducing the total number of outstanding shares.
Corporate boards typically authorize such programs when management believes the company has sufficient liquidity and capital reserves to fund repurchases without affecting operations.
Freshworks did not announce any changes to its operating strategy, workforce, or expansion plans alongside the buyback approval.
Market Reaction
The announcement of the Freshworks share buyback was disclosed publicly, with investors monitoring potential execution timing and scale.
Market data indicated continued trading activity in Freshworks shares following the announcement, although no specific intraday percentage reaction was detailed in the source report.
The company emphasized that actual repurchase volumes will depend on market conditions, legal requirements, and other corporate considerations.
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