Form 4: Freshworks Chief Customer & Marketing Officer Sells Shares Under Pre-Arranged Trading Plan

Mika Yamamoto, Freshworks' Chief Customer & Marketing Officer, sold 4,289 shares of Class A Common Stock for a weighted average price of $15.05 per share, pursuant to a Rule 10b5-1 trading plan.

Summary

• Mika Yamamoto, the Chief Customer & Marketing Officer of Freshworks Inc. (FRSH), reported a transaction involving the sale of Class A Common Stock.
• On July 1, 2025, 4,289 shares of Class A Common Stock were disposed of.
• The shares were sold at a weighted average price of $15.05 per share, with individual transaction prices ranging from $14.81 to $15.32.
• This sale was executed pursuant to a Rule 10b5-1 trading plan, which was adopted on September 17, 2024.
• Following this transaction, Mika Yamamoto beneficially owns 570,487 shares of Class A Common Stock.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While it's an insider sale, it was conducted under a pre-arranged 10b5-1 plan, which is a routine and expected event for executives managing their equity, rather than a signal of negative sentiment towards the company's prospects.

Positives

• The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a scheduled transaction rather than a discretionary one, which can mitigate negative market perception often associated with insider selling.

Negatives

• The transaction represents a reduction in direct insider ownership, as 4,289 shares were sold by a key executive.

Risks

• No specific new risks are introduced by this routine insider transaction beyond the general market perception of insider selling, even when pre-planned.

Future Outlook

No forward-looking statements or guidance are provided in this Form 4 filing, as it primarily reports a past insider transaction.

Management Comments

• The sales reported were effected pursuant to a Rule 10b5-1 trading plan, adopted September 17, 2024.
• The reported price in Column 4 is a weighted average price, with shares sold in multiple transactions ranging from $14.81 to $15.32 per share.

Industry Context

This Form 4 filing is a routine disclosure of an insider stock transaction, common across publicly traded companies. Such filings provide transparency into executive stock ownership changes, which are closely monitored by investors for insights into management's confidence in the company.

Comparison to Industry Standards

• This transaction is a standard insider sale under a Rule 10b5-1 plan, a common practice among executives in public companies like Freshworks to manage their equity holdings while avoiding accusations of trading on material non-public information.
• The disclosure of the weighted average price and the price range is standard for Form 4 filings when multiple transactions occur at varying prices within a short period.

Corporate Governance

Stakeholder Impact

• Shareholders: A minor reduction in insider ownership, but the pre-planned nature of the sale under Rule 10b5-1 suggests it is for personal financial planning rather than a reflection of company performance or outlook.

Next Steps

• The Reporting Person undertakes to provide full information regarding the number of shares sold at each separated price within the reported range upon request to the Issuer, any security holder, or the SEC staff.

Key Dates

Recommendation

Keywords

Freshworks, FRSH, insider transaction, Form 4, stock sale, Mika Yamamoto, 10b5-1 plan, equity disposition, officer transaction