HubSpot, Inc. (HUBS) has disclosed a new risk, in the Debt & Financing category.
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HubSpot, Inc. faces significant counterparty risk linked to the Capped Call Options it purchased for $50.6 million, which are integral to its 2025 Notes offering. With these options tied to HubSpot’s common stock, the company’s financial outcome is partially at the mercy of its counterparties—major financial institutions that could falter amid global economic turbulence. Should any of these institutions default or enter insolvency, HubSpot would be relegated to an unsecured creditor position, potentially incurring greater stock dilution than expected. The assurance of these counterparties’ stability remains uncertain, putting HubSpot at risk of unforeseen financial repercussions.
The average HUBS stock price target is $693.91, implying 13.95% upside potential.
To learn more about HubSpot, Inc.’s risk factors, click here.