Freshworks Q4 Revenue Up 14% While Cantor Fitzgerald Cuts Price Target to $14
Freshworks reported Q4 revenue of $222.7 million, up 14% year-over-year, with ARR rising 18% to $907 million and free cash flow margin hitting 25%. Cantor Fitzgerald lowered its price target from $19 to $14 while maintaining an Outperform rating, implying a 91.8% upside.
1. Q4 Financial Performance
Freshworks delivered Q4 revenue of $222.7 million, marking 14% year-over-year growth, and ARR reached $907 million, up 18%. Free cash flow margin was 25%, non-GAAP operating margin stood at 19%, and GAAP net income totaled $191.4 million helped by one-time items, with over 1,500 customers exceeding $100,000 ARR.
2. Analyst Price Target Revision
Cantor Fitzgerald cut its Freshworks price target from $19 to $14 while keeping an Outperform rating, implying a potential 91.8% upside from current levels and reflecting mixed sentiment despite strong Q4 metrics.
3. Growth Outlook and Risks
Management’s CY2026 revenue guidance slightly surpassed expectations, but the firm flagged ongoing growth deceleration as a concern, noting trends that diverge from typically positive commentary and may affect investor confidence.