Is Freshworks Inc. (FRSH) Halal?

NASDAQ Technology United States $2.2B
✗ NOT HALAL
Confidence: 90/100
Freshworks Inc. (FRSH) is Not Halal under AAOIFI Standard 21. While the debt ratio of 1.7% is acceptable, the cash and interest-bearing securities ratio of 31.9% exceeds the 30% threshold. Freshworks Inc. operates in the Technology sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.7%
/ 30%
31.9%
/ 30%
6.2%
/ 30%
4.55%
/ 5%
✗ NOT HALAL
DJIM 1.7%
/ 33%
31.9%
/ 33%
6.2%
/ 33%
4.55%
/ 5%
✓ HALAL
MSCI 2.7%
/ 33%
48.8%
/ 33%
9.4%
/ 33%
4.55%
/ 5%
✗ NOT HALAL
S&P 1.7%
/ 33%
31.9%
/ 33%
6.2%
/ 33%
4.55%
/ 5%
✓ HALAL
FTSE 2.7%
/ 33%
48.8%
/ 33%
9.4%
/ 50%
4.55%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
12.5
Forward: 11.4
EPS
$0.63
P/B Ratio
2.2
EV/EBITDA
46.7
EV: $1.5B
Revenue
$839M
Growth: 14.5%
Beta
0.9
Average volatility
Current Ratio
2.2

Profitability

Gross Margin 85.0%
Operating Margin 17.8%
Net Margin 21.9%
Return on Equity (ROE) 16.9%
Return on Assets (ROA) 0.5%

Cash Flow & Balance Sheet

Operating Cash Flow$242M
Free Cash Flow$221M
Total Debt$43M
Debt-to-Equity4.1
Current Ratio2.2
Total Assets$1.6B

Price & Trading

Last Close$8.01
50-Day MA$8.81
200-Day MA$11.80
Avg Volume5.8M
Beta0.9
52-Week Range
$6.79
$16.14

About Freshworks Inc. (FRSH)

CEO
Mr. Dennis M. Woodside J.D.
Employees
4,500
Sector
Technology
Industry
Software - Application
Country
United States
Exchange
NASDAQ
Market Cap
$2.2B
Currency
USD

Freshworks Inc., a software development company, provides software-as-a-service products in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company's software-as-a-service solutions includes Customer Experience (CX) and Employee Experience (EX). Its Customer Experience products include Freshdesk Omni, an AI-powered omnichannel customer service solution that unifies customer interactions, support operations, and empowers agents to deliver exceptional experiences; Freshdesk, a ticketing and case management solution; Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels; Freshcaller, a cloud-based contact center solution for scalable voice operations; Freshsales, a sales CRM for pipeline management and deal closure solution; and Freshmarketer, a marketing automation platform designed to help businesses to attract, nurture, convert, and retain customers. The company's Employee Experience products include Freshservice, an IT and enterprise service management platform to AI agents to help employees resolve issues, make requests, and access information through conversational interfaces without requiring direct interaction with the service desk; Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data; Device42 which provides IT discovery and dependency mapping solutions; and FireHydrant, a modern incident management platform that enables engineering and operations teams to manage the full incident lifecycle. In addition, it provides Freshworks platform, an AI-powered, enterprise-grade foundation that unifies customer experience and employee experience product lines. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.

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Frequently Asked Questions

Is Freshworks Inc. (FRSH) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Freshworks Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Freshworks Inc.'s debt ratio?

Freshworks Inc.'s debt ratio is 1.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 2.7%.

What are Freshworks Inc.'s key financial metrics?

Freshworks Inc. has a market capitalization of $2.2B, trailing P/E ratio of 12.5, and revenue of $839M. The company maintains a gross margin of 85.0% and a net margin of 21.9%. Return on equity stands at 16.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.