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Freshworks, Inc. FRSH Release Of Valuation Allowance

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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:ReleaseOfValuationAllowance.

The official record: Freshworks, Inc.’s 10-K, filed February 26, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Freshworks, Inc.'s release of valuation allowance?
Freshworks, Inc. (FRSH) reported release of valuation allowance of $37.93M in Q4 2025.
What does release of valuation allowance mean?
This represents the non-cash reversal of a valuation allowance previously established against deferred tax assets. It indicates that management has determined it is more likely than not that the tax assets will be realized in future periods. This adjustment significantly impacts net income and reflects improved expectations regarding future taxable earnings.