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Freshworks, Inc. FRSH Increase (Decrease) In Capitalized Contract Cost

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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 frsh:IncreaseDecreaseInCapitalizedContractCost.

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 increase (decrease) in capitalized contract cost?
Freshworks, Inc. (FRSH) reported increase (decrease) in capitalized contract cost of $10.2M in Q1 2026.
How has Freshworks, Inc.'s increase (decrease) in capitalized contract cost changed year-over-year?
Freshworks, Inc.'s increase (decrease) in capitalized contract cost increased by 17.2% year-over-year, from $8.7M to $10.2M.
What is the long-term trend for Freshworks, Inc.'s increase (decrease) in capitalized contract cost?
Over 4 years (2021 to 2025), Freshworks, Inc.'s increase (decrease) in capitalized contract cost has grown at a 13.4% compound annual growth rate (CAGR), from $24.22M to $40.07M.
What does increase (decrease) in capitalized contract cost mean?
This measures the net change in costs deferred on the balance sheet that are directly attributable to obtaining customer contracts. An increase indicates higher investment in sales commissions and related acquisition costs, while a decrease reflects the amortization of these assets. It is a key indicator of sales efficiency and the pace of customer acquisition spending.