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Freshworks joins S&P SmallCap 600, replacing acquired BioLife Solutions

Freshworks joins S&P SmallCap 600, replacing acquired BioLife Solutions

Money Moves

Freshworks passes $1 billion in annual recurring revenue, but shares slip after a modest third-quarter beat

November 3rd, 2026: Freshworks reports record third-quarter results

Overview

Updated Yesterday

Freshworks joined the S&P SmallCap 600 on October 8, taking the seat BioLife Solutions gave up as Repligen buys it for about $1.5 billion. The stock hit a 52-week high of $13.99 on October 6 as index funds bought ahead of the switch.

On November 3, Freshworks reported third-quarter revenue of $245.4 million, up 14%, and net income of $18.3 million under standard accounting rules. It said it passed $1 billion in annual recurring revenue after closing its acquisitions of Torii and Robusta. Shares fell 7.7% after hours to $13.06 as investors focused on the modest size of the revenue beat.

Why it matters

Freshworks has index funds as owners and $1 billion in recurring revenue, but a modest beat left investors unimpressed.

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Key Indicators

$1B
Annual recurring revenue milestone
Freshworks crossed $1 billion in annual recurring revenue in October 2026 after closing the Torii and Robusta acquisitions.
$245.4M
Third-quarter revenue
Revenue rose 14% from a year earlier in the quarter ended September 30, 2026.
$18.3M
Third-quarter net income
Net income under standard accounting rules, the company's second straight profitable quarter.
$73.9M
Adjusted free cash flow
Record adjusted free cash flow, up 29% from a year earlier.

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People Involved

DW
Dennis Woodside
President and Chief Executive, Freshworks
Led Freshworks past $1 billion in annual recurring revenue and through record third-quarter results in November 2026.
OL
Olivier Loeillot
President and Chief Executive, Repligen Corp.
Steering Repligen's acquisition of BioLife Solutions

Organizations Involved

Freshworks Inc.
Freshworks Inc.
Enterprise software company
Joined the S&P SmallCap 600 on October 8, 2026; closed its Torii and Robusta acquisitions; reported record third-quarter results and passed $1 billion in annual recurring revenue.

San Mateo, California company selling customer-service and engagement software.
S&P Dow Jones Indices
S&P Dow Jones Indices
Index provider
Completed the October 8, 2026 change, adding Freshworks and removing BioLife Solutions

Division of S&P Global that runs the S&P 500, SmallCap 600 and other benchmarks.
BioLife Solutions Inc.
BioLife Solutions Inc.
Public biotechnology supplier
Removed from the S&P SmallCap 600 on October 8; acquisition by Repligen pending

Bothell, Washington developer of cell-processing tools for the cell and gene therapy market.
RC
Repligen Corp.
Public bioprocessing company
Acquiring BioLife Solutions; S&P MidCap 400 constituent

Waltham, Massachusetts supplier of bioprocessing equipment and consumables.

Timeline

July 2026 November 2026

11 events Latest: November 3rd, 2026 · 1 week ago Showing 8 of 11
Tap a bar to jump to that date

  1. Freshworks reports record third-quarter results

    Latest Earnings

    Revenue was $245.4 million, up 14%, with net income of $18.3 million under standard accounting rules and adjusted free cash flow of $73.9 million. The company said it had passed $1 billion in annual recurring revenue.

  2. Shares fall after hours on modest revenue beat

    Market Reaction

    The stock closed at $14.15 and fell 7.7% to $13.06 after hours as investors focused on the small revenue beat and near-term growth outlook.

  3. Freshworks acquires Robusta

    Acquisition

    Freshworks acquired Robusta, an AI startup, to strengthen its IT operations platform, according to the company and The Economic Times.

  4. Freshworks agrees to buy Torii

    Acquisition

    Freshworks signed a definitive agreement to acquire Torii, which makes software for managing what companies spend on cloud applications, and said it would extend Freshservice with it. The announcement gave no deal terms.

  5. Index change takes effect

    Index Change

    Freshworks formally joins the S&P SmallCap 600; BioLife is removed at the open.

  6. Freshworks sets November 3 date for third-quarter results

    Earnings

    Freshworks said it will report results for the quarter ended September 30 after the market close on November 3, 2026.

  7. Freshworks stock hits 52-week high

    Market Reaction

    Shares rose to $13.99 on October 6 as index funds bought ahead of the October 8 inclusion.

  8. S&P announces Freshworks joins SmallCap 600

    Index Change

    Freshworks replaces BioLife Solutions, effective before the open on October 8.

  9. Freshworks closes Torii and Robusta acquisitions

    Acquisition

    Freshworks closed both deals in October, pushing annual recurring revenue past $1 billion, Fortune reported.

  10. Freshworks reports first GAAP-profitable quarter

    Earnings

    Q2 revenue of $237.4 million, up 16%, with GAAP net income of $3.2 million.

  11. Repligen agrees to acquire BioLife Solutions

    Acquisition

    Repligen and BioLife announce a roughly $1.5 billion cash-and-stock merger agreement.

Scenarios

1

Freshworks clears its 52-week high on inclusion demand

Deadline passed (Nov 10, 2026)

Discussed by: Investing.com noted the after-hours push toward the 52-week high; analysts hold a consensus 'Moderate Buy' rating

Index funds bought ahead of the October 8 inclusion, but the stock did not clear its $13.99 high. It closed at $14.15 on November 3 and fell to $13.06 after hours.

2

One-time buying bump fades, shares slip below $12

Deadline passed (Nov 10, 2026)

Discussed by: Analysts who note the demand is a one-time event, not a fundamental change

Index additions produce a one-off purchase, not ongoing support. With competition in customer-engagement software and macro pressure on small caps, shares could give back gains once funds finish buying.

3

Q3 beat lifts Freshworks past its price target

Possible Resolves by Nov 15, 2026

Discussed by: Bulls citing seven straight revenue beats and eight consecutive Rule-of-40 quarters

Freshworks beat revenue and profit expectations on November 3, but shares fell 7.7% after hours to $13.06, below the $14.46 consensus target.

4

Freshworks closes the Torii deal

Likely Resolves by Q2 2027

Discussed by: Freshworks management, which announced the agreement on October 12

Freshworks closed its acquisitions of Torii and Robusta in October 2026, pushing annual recurring revenue past $1 billion.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

September 2024

Palantir, Dell and Erie join the S&P 500 (September 2024)

S&P announced in early September 2024 that Palantir, Dell Technologies and Erie Indemnity would join the S&P 500. Shares of the new constituents rallied in the days before the effective date as index funds bought in.

Then

Each stock rose on the announcement as funds positioned ahead of the change.

Now

The episodes reinforced the pattern where index additions carry a built-in demand floor.

Why this matters now

The same forced-buying mechanism is now hitting Freshworks ahead of its October 8 inclusion.

October 2022

Twitter leaves the S&P 500 after Musk buyout (2022)

Elon Musk completed his $44 billion acquisition of Twitter in late October 2022, taking the social media company private. S&P removed Twitter from its indices and added a replacement.

Then

Twitter's exit opened a seat for another company, which gained the same passive-buying support.

Now

Acquisition-driven deletions became a routine trigger for index additions and their associated fund flows.

Why this matters now

Mirrors how Repligen's takeover of BioLife vacates the SmallCap 600 seat Freshworks fills.

Sources

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PR Newswire Securities.io Investing.com GuruFocus Finviz Benzinga Market Wire News TradingView Kalkine Simply Wall St Freshworks Inc. S&P Global Investing.com Freshworks Investor Relations Fortune The Hindu BusinessLine Investing.com Investing.com