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HubSpot
(NYSE:HUBS)
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Rating:69Neutral
Price Target:
$273.00
▲(14.86% Upside)
Action:Downgraded
Date:10/07/26
The score is driven primarily by strong financial performance (high margins, improving profitability, low leverage, and robust free cash flow). It is tempered by a weaker technical backdrop and demanding valuation (high P/E, no dividend support), while the latest earnings call and corporate events are mixed—solid AI/margin trajectory and buybacks offset by slower customer adds, NRR pressure, and restructuring-related execution risk.
Positive Factors
Recurring growth and margin expansion
HubSpot continues to combine strong subscription-led revenue growth with expanding operating margins. That operating leverage can strengthen earnings and cash generation as the platform scales, while recurring SaaS revenue provides a durable foundation for continued investment in products and customer acquisition.
Negative Factors
Slowing customer additions and retention pressure
Slower customer additions and declining net revenue retention indicate that acquisition and expansion are becoming more difficult. If these trends persist, they could constrain recurring revenue growth, reduce operating leverage, and make future guidance more dependent on larger customers or pricing.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring growth and margin expansion
HubSpot continues to combine strong subscription-led revenue growth with expanding operating margins. That operating leverage can strengthen earnings and cash generation as the platform scales, while recurring SaaS revenue provides a durable foundation for continued investment in products and customer acquisition.
Read all positive factors
HubSpot Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyHubSpot (HUBS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.42B
Dividend YieldN/A
Average Volume (3M)1.53M
Price to Earnings (P/E)87.9
Beta (1Y)1.24
Revenue Growth21.08%
EPS GrowthN/A
CountryUS
Employees9,016
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)2.83
Shares Outstanding49,866,200
10 Day Avg. Volume990,532
30 Day Avg. Volume1,531,092
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)10.19
Price to Sales (P/S)6.72
P/FCF Ratio29.75
Enterprise Value/Market Cap0.66
Enterprise Value/Revenue2.36
Enterprise Value/Gross Profit2.83
Enterprise Value/Ebitda24.42
Forecast
1Y Price Target
$256.38Price Target Upside7.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering29
EPS Forecast (FY)13.3
Revenue Forecast (FY)$3.68B
HubSpot Business Overview & Revenue Model
Company Description
HubSpot, Inc. offers an expansive, cloud-hosted customer relationship management (CRM) platform, catering to businesses across the Americas, Europe, and the Asia Pacific. This integrated system features fundamental modules for marketing, sales, cu...
How the Company Makes Money
HubSpot makes money primarily through subscription fees for access to its SaaS platform. Revenue is generated when customers pay recurring charges (typically billed monthly or annually) for products packaged as individual Hubs (e.g., Marketing Hub...
HubSpot Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call balanced encouraging operational and financial strengths—solid revenue growth, margin expansion, strong AI adoption metrics, upmarket deal growth, significant free cash flow and an active buyback program—against notable near-term headwinds: slower net customer additions, deliberate product/pricing moves that extended buying cycles, increased budget scrutiny across customers, and modest pressure on net revenue retention. Management positioned the near-term weakness as deliberate short-term trade-offs to drive longer-term AI-led growth, and provided guidance that assumes the headwinds persist through the year.Positive Updates
Revenue Growth
Q2 total revenue grew 20% year-over-year as reported and 17% in constant currency; subscription revenue grew 20% year-over-year.
Negative Updates
Slower Net New Customers and Missed Add Target
Added 7,000 net new customers in Q2 (total >306,000, up 14% year-over-year), below the 9,000–10,000 expectation; management now expects quarterly net additions of ~5,000–6,000 for the near term.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Q2 total revenue grew 20% year-over-year as reported and 17% in constant currency; subscription revenue grew 20% year-over-year.
Read all positive updates
Company Guidance
HubSpot guided Q3 revenue of $924–$925M (up 14% Y/Y as‑reported, 15% constant currency), non‑GAAP operating income of $187–$188M (20% margin) and non‑GAAP diluted EPS of $3.25–$3.27 (assumes 49.3M shares); full‑year 2026 revenue of $3.678–$3.686B (up 18% as‑reported, 16% constant currency), non‑GAAP operating income of $762–$766M (21% margin) and non‑GAAP diluted EPS of $13.23–$13.31 (assumes 50M shares). Management now expects quarterly net additions of ~5,000–6,000, ASRPC growth in the low‑to‑mid single digits (constant currency), net revenue retention roughly flat year‑over‑year (customer dollar retention in the high 80s) with net new ARR growth below constant‑currency revenue growth, CapEx of ~5–6% of revenue, free cash flow of about $750M, and ~2 points of non‑GAAP operating margin leverage in 2026 (with 2–3 points incremental expected in 2027).HubSpot Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.45B | 3.13B | 2.63B | 2.17B | 1.73B | 1.30B |
| Gross Profit | 2.87B | 2.62B | 2.23B | 1.83B | 1.42B | 1.04B |
| EBITDA | 333.20M | 206.63M | 129.23M | -74.10M | -36.54M | 1.62M |
| Net Income | 146.85M | 45.91M | 4.63M | -164.51M | -107.35M | -77.84M |
Balance Sheet | ||||||
| Total Assets | 3.50B | 3.85B | 3.80B | 3.07B | 2.54B | 2.17B |
| Cash, Cash Equivalents and Short-Term Investments | 1.34B | 1.70B | 2.07B | 1.39B | 1.41B | 1.20B |
| Total Debt | 236.91M | 262.31M | 745.42M | 787.81M | 806.34M | 712.97M |
| Total Liabilities | 1.85B | 1.79B | 1.89B | 1.74B | 1.55B | 1.30B |
| Stockholders Equity | 1.66B | 2.07B | 1.91B | 1.33B | 992.22M | 873.80M |
Cash Flow | ||||||
| Free Cash Flow | 767.23M | 707.55M | 560.66M | 250.72M | 181.40M | 176.86M |
| Operating Cash Flow | 856.37M | 760.72M | 598.60M | 350.97M | 273.17M | 238.73M |
| Investing Cash Flow | 591.43M | 491.77M | -515.86M | -334.77M | -319.66M | -179.51M |
| Financing Cash Flow | -1.08B | -910.01M | 53.49M | 37.01M | 7.43M | -51.47M |
HubSpot Technical Analysis
Positive
237.69
Price Trends
234.77
Positive
221.01
Positive
232.79
Positive
Market Momentum
8.78
Negative
55.41
Neutral
64.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBS, the sentiment is Positive. The current price of 237.69 is above the 20-day moving average (MA) of 236.40, above the 50-day MA of 234.77, and above the 200-day MA of 232.79, indicating a bullish trend. The MACD of 8.78 indicates Negative momentum. The RSI at 55.41 is Neutral, neither overbought nor oversold. The STOCH value of 64.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HUBS.
HubSpot Risk Analysis
HubSpot disclosed 58 risk factors in its most recent earnings report. HubSpot reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HubSpot Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.01B | 23.42 | 19.50% | ― | 15.57% | ― | |
73 Outperform | $4.14B | 40.94 | 12.46% | ― | 24.21% | 206.42% | |
73 Outperform | $5.20B | -44.45 | -18.78% | ― | 27.44% | 0.82% | |
72 Outperform | $5.85B | 955.81 | 0.61% | ― | 28.89% | ― | |
69 Neutral | $12.42B | 87.85 | 7.75% | ― | 21.08% | ― | |
63 Neutral | $1.29B | -2.37 | -40.51% | ― | 2.66% | -808.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
HUBS
HubSpot
248.97
-217.15
-46.59%
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HubSpot Corporate Events
Executive/Board Changes
HubSpot Announces Resignation of Chief Legal Officer Fisher
Neutral
Oct 9, 2026
On October 8, 2026, HubSpot, Inc. announced that Chief Legal Officer and Corporate Secretary Erika Fisher had notified the company of her decision to resign, effective November 6, 2026, to pursue another professional opportunity. HubSpot stated th...
Business Operations and StrategyFinancial Disclosures
HubSpot Announces Workforce Restructuring for AI-Driven Strategy
Negative
Oct 6, 2026
On October 1, 2026, HubSpot’s board approved a restructuring plan that will eliminate about 7% of its workforce, or nearly 660 roles, as the company shifts from simply building growth software to delivering AI-driven outcomes for customers. ...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
HubSpot Announces New $1 Billion Share Repurchase Plan
Positive
Aug 5, 2026
For the quarter ended June 30, 2026, HubSpot posted total revenue of $911.7 million, up 20% year over year, driven largely by subscription revenue of $894.0 million, and moved from a GAAP operating loss to a $43.3 million operating profit, with no...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.