Nasdaq-listed SaaS leader Freshworks has unveiled a strategic stock buyback programme worth $400 million, aimed at repurchasing its outstanding Class A common stock. The initiative, approved by the company’s board of directors, will allow Freshworks to buy back shares from the open market, through private negotiations, or other methods compliant with the Securities Exchange Act of 1934.
According to an exchange filing, the company stated, “Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 under the Exchange Act. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of shares of common stock under this authorization.” This buyback programme reflects Freshworks’ growing confidence in its future and its commitment to enhancing shareholder value.
The announcement comes on the heels of Freshworks’ financial results for Q3 FY25, which demonstrate solid performance and a positive growth trajectory despite market challenges. The SaaS company recorded a 21.4% year-over-year increase in total revenue, reaching $186.6 million in Q3 FY25, up from $153.6 million during the same period last year.
In addition to the revenue growth, Freshworks reported a reduction in its consolidated net loss by 3.5% year-over-year, down to $29.95 million from $31.03 million in Q3 FY24. However, the company did experience a quarterly increase in its net loss, widening by 48.3% from $20.1 million in Q2 FY25. On a positive note, Freshworks posted a non-GAAP income from operations of $24 million, compared to $17.4 million in Q3 FY24, signaling a robust operational performance.
Despite these positive figures, Freshworks also announced that it is undertaking a global restructuring effort, which includes reducing its workforce by 13%. The decision impacts approximately 660 employees across its global operations. This move is part of Freshworks’ strategy to streamline operations and realign its resources to maintain efficiency and profitability.
The stock buyback programme and workforce restructuring come at a time when Freshworks is focused on strengthening its financial position and long-term growth prospects. With an optimistic outlook for the future, the company continues to prioritize shareholder value and operational excellence while navigating the evolving SaaS market.
About Freshworks
Freshworks is a leading provider of SaaS-based customer engagement solutions, empowering businesses to deliver superior customer service and seamless communication experiences. With a focus on innovation, Freshworks helps companies drive growth, boost efficiency, and enhance customer satisfaction across various industries.
