Company Overview - Freshworks is a California-based company that develops user-friendly service software aimed at enhancing customer and employee support, utilizing a people-first approach to AI [2] - The company has a strong global presence, serving nearly 75,000 organizations, including notable brands like Bridgestone, Nucor, and S&P Global [1] Financial Performance - Freshworks reported a revenue increase of 15% year-over-year (YOY) to $215.1 million in its fiscal 2025 third-quarter earnings, surpassing analysts' expectations [7] - The company posted a GAAP loss of $0.02 per share, but on an adjusted basis, non-GAAP EPS reached $0.16, reflecting a 45% YOY increase and exceeding Wall Street's estimate by 25.5% [8] - The balance sheet remains robust, with cash, cash equivalents, and marketable securities totaling $813.2 million as of September 30, 2025 [8] Future Outlook - Management anticipates full-year revenue between $833.1 million and $836.1 million, indicating approximately 16% annual growth, with non-GAAP EPS projected between $0.62 and $0.64 [9] - Analysts expect the company's GAAP loss to narrow by nearly 88% in 2025, indicating progress towards sustained profitability [9] Market Sentiment - Freshworks stock currently has a market capitalization of about $3.3 billion and has experienced a 27% decline in 2025, leading to a valuation reset [6] - The stock trades at 16.5 times forward earnings, which is significantly lower than the sector median, placing it in bargain territory [6] - Wall Street maintains a "Moderate Buy" consensus on FRSH, with eight out of 16 analysts recommending a "Strong Buy" [10] Price Targets - The average price target for Freshworks is $18.46, suggesting a potential upside of 57%, while the highest target of $27 indicates a possible increase of 129% [11]

Core Viewpoint - The practice of tax-loss selling is highlighted as particularly relevant this year due to significant gains in the S&P/TSX Composite index, with expectations for increased relevance in 2025 [1] Group 1: Tax-Loss Selling Insights - Analysts from CIBC Capital Markets emphasize the importance of selling losing holdings to offset capital gains, especially in the context of the current market conditions [1] - The report identifies criteria for selecting tax-loss selling candidates, specifically stocks that have declined by 20% or more from their 52-week high and have negative year-to-date returns as of October 15 [1] - A total of 32 TSX-listed stocks are included in the tax-loss watch list, with notable mentions such as CGI Inc. (TSX:GIB/A) and Constellation Software Inc. (TSX:CSU) [1] Group 2: Timing and Transactions - Most tax-loss selling activities are expected to occur between mid-November and December, with a deadline for transactions set for December 30 [1]