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Freshworks, Inc. FRSH Payments to Develop Software

Payments to Develop Software at other companies

HubSpot logo
HubSpotHUBS
$34.34M+12.9%
Paylocity logo
PaylocityPCTY
$17.7M+10.9%
Klaviyo logo
KlaviyoKVYO
$3.57M-29.5%

Other financials

Income statement

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Revenue$228.6M+16.5%
Gross profit$193.9M+16.6%
Operating income-$8.1M+22.6%
Net income-$4.8M-269%
EPS (diluted)-$0.02

Balance sheet

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Cash & equivalents$549.3M-7.6%
Total debt$38.8M-2.7%
Total equity$1.0B-4.0%
Total assets$1.6B+4.2%

Cash flow

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Operating cash flow$62.4M+7.6%
CapEx$3.9M+201%
Free cash flow$58.5M+3.2%

Valuation

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Market cap$2.54B-46.4%
Enterprise value$2.03B-52.1%
P/E14.1×
P/S2.9×-3.4×

Profitability

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Gross margin85%+0.6pp
Operating margin1.8%+0.9pp
Net margin20.7%+15.7pp
FCF margin27.4%+5.0pp

Returns & leverage

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Return on equity17.3%+13.5pp
Debt / equity0.0×
Current ratio1.9×-1.0×

Where this comes from

Reported directly by Freshworks, Inc. in its filing.

Tagged under the XBRL concept us-gaap:PaymentsToDevelopSoftware.

The official record: Freshworks, Inc.’s 10-Q, filed May 5, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Freshworks, Inc.'s payments to develop software?
Freshworks, Inc. (FRSH) reported payments to develop software of $3.38M in Q1 2026.
How has Freshworks, Inc.'s payments to develop software changed year-over-year?
Freshworks, Inc.'s payments to develop software increased by 21.9% year-over-year, from $2.77M to $3.38M.
What is the long-term trend for Freshworks, Inc.'s payments to develop software?
Over 4 years (2021 to 2025), Freshworks, Inc.'s payments to develop software has grown at a 45.2% compound annual growth rate (CAGR), from $3.55M to $15.79M.
What does payments to develop software mean?
This represents the cash outflows associated with the internal development of software products and platforms that meet capitalization criteria. It reflects the company's investment in long-term product innovation and technical infrastructure. Investors monitor this to gauge the level of commitment to R&D and future product capabilities.