HubSpot (HUBS) Q3 2026 Earnings Report

The call was cautiously optimistic. HubSpot reported solid Q3 revenue, profitability, cash generation and accelerating AI adoption, with multiple early indicators supporting its product, pricing and go-to-market transformation. However, demand pressure, longer sales cycles, downmarket budget sensitivity, lower expected customer additions, pressure on net revenue retention, declining net new ARR and slower Q4 growth weigh materially on the near-term outlook. Management remains confident in the long-term opportunity and profitability targets, but the number and significance of current operating headwinds make the positive and negative factors relatively balanced.

For Q4 2026, HubSpot is not providing a net adds estimate but expects to be below the 5,000 level achieved in Q3, with low to mid-single-digit ASRPC growth in constant currency; total as reported revenue is expected to be $945 million to $947 million, up 12% year-over-year on an as reported and constant currency basis, non-GAAP operating income is expected to be $216 million to $217 million, representing a 23% margin, and non-GAAP diluted net income per share is expected to be $3.85 to $3.87, representing growth of 25%, based on 48.9 million fully diluted shares outstanding. For full year 2026, net revenue retention is expected to be down about 2 points year-over-year, customer dollar retention is expected to remain strong and stable in the high 80s, net new ARR is expected to decline year-over-year, total as reported revenue is expected to be $3.685 billion to $3.687 billion, up 18% year-over-year on an as-reported basis and 16% in constant currency, non-GAAP operating income is expected to be $772 million to $773 million, representing a 21% margin, and non-GAAP diluted net income per share is expected to be $13.59 to $13.61, representing growth of 40%, based on 50.4 million fully diluted shares outstanding; Q4 GAAP operating income will include an expected $60 million to $70 million charge for severance costs, CapEx as a percentage of revenue is expected to be 5% to 6%, free cash flow is expected to be about $720 million, and HubSpot remains confident in delivering its 2027 non-GAAP operating margin target of 23% to 24%.