Gagnon Advisors disclosed a sale of 564,879 shares of Freshworks (NASDAQ:FRSH), an estimated $6.67 million trade based on quarterly average pricing, in its February 12, 2026, SEC filing.

According to a February 12, 2026, SEC filing, Gagnon Advisors, LLC cut its position in Freshworks by 564,879 shares. The estimated transaction value was $6.67 million, calculated using the average closing price during the fourth quarter of 2025. At quarter end, the Freshworks stake was valued at $6.92 million, reflecting a net position change of $6.38 million for the period.

This sale reduced the Freshworks position to 4.39% of Gagnon Advisors, LLC's 13F reportable assets under management.

Top holdings after the filing:

NASDAQ: WGS: $16.53 million (10.5% of AUM)

NYSE: AMRC: $13.85 million (8.8% of AUM)

NYSE: AL: $12.62 million (8.0% of AUM)

NYSE: EPD: $10.90 million (6.9% of AUM)

NASDAQ: CDNA: $10.04 million (6.4% of AUM)

As of February 12, 2026, Freshworks shares were priced at $7.04, down 60.4% in one year and underperformed the S&P 500 by 73.35 percentage points.

Metric

Value

Price (as of market close 2026-02-12)

$7.04

Market Capitalization

$2.05 billion

Revenue (TTM)

$838.81 million

Net Income (TTM)

$183.72 million

Freshworks offers software-as-a-service (SaaS) products for customer engagement, IT service management, and business process automation.

The company generates revenue primarily through subscription-based licensing of its cloud applications to businesses.

It targets enterprises and mid-sized companies seeking scalable, modern solutions for customer support and IT operations.

Freshworks Inc. is a global SaaS provider specializing in cloud-based business software that streamlines customer engagement and IT workflows. The company leverages a subscription model, supporting recurring revenue and scalability across diverse industries.

With a broad customer base and a focus on usability and rapid deployment, Freshworks aims to differentiate through accessible, integrated solutions that address core operational needs for modern organizations.

This move signals potentially waning conviction in a software business that just proved it can scale profitably, even as the stock price suggests otherwise.Freshworks closed 2025 with $838.8 million in revenue, up 16% year over year, and fourth quarter revenue of $222.7 million. GAAP operating income swung to $13.2 million for the year from a sizable loss in 2024, while non-GAAP operating margin expanded to 21.2%. Meanwhile, the balance sheet shows $843.7 million in cash and marketable securities.Shares are down more than 60% over the past year, but the operating profile tells a different story. Within a portfolio that leans into energy and industrial names like AMRC and EPD, this remains one of the more growth-oriented software positions at 4.4% of assets.Long term investors should focus on recurring revenue durability, retention trends, and margin trajectory. If mid-teens revenue growth pairs with expanding profitability, today’s price may reflect sentiment fatigue rather than structural weakness.

Before you buy stock in Freshworks, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Freshworks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $414,554!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,120,663!*

Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of February 16, 2026.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

Freshworks Stock Down 60% in One Year as Revenue Jumps 16% and One Investor Sells $7 Million in Shares was originally published by The Motley Fool