HubSpot’s Earnings Call: Strong Growth Amid Challenges

HubSpot, Inc. ((HUBS)) has held its Q2 earnings call. Read on for the main highlights of the call.

HubSpot’s recent earnings call painted a picture of robust growth and strategic innovation, despite some challenges. The sentiment was largely positive, with strong revenue growth, significant customer and platform expansion, and impressive adoption of AI features, particularly in Sales and Service Hubs. However, the company acknowledged challenges such as declining organic search traffic and an uncertain macro environment. HubSpot’s strategic diversification into new channels and its focus on AI innovation position it well for future growth.

Strong Revenue Growth

HubSpot reported an 18% year-over-year revenue growth in Q2 2025, with subscription revenue increasing by 19% and services and other revenue by 21% on an as-reported basis. This marks an acceleration from the previous quarter, showcasing the company’s strong financial performance.

Customer and Platform Growth

The company saw its total customer base grow to 268,000 globally, with over 9,700 net customer additions in the quarter. Notably, 42% of the installed base by ARR now use all three core hubs, reflecting a 4-point increase and indicating strong platform adoption.

AI and Product Innovation

HubSpot has made significant strides in AI adoption, with Sales Hub seat upgrades up 71% year-over-year and Service Hub seat upgrades up 110%. The company also became the first CRM to launch connectors with ChatGPT and Claude, highlighting its commitment to product innovation.

Upmarket Momentum

The company is gaining traction in larger deals, with co-selling with sales teams up 29% year-over-year. Brand awareness is at an all-time high, further supporting HubSpot’s growth in the upmarket segment.

Diversification of Demand Channels

HubSpot is diversifying its demand channels, with only 10% of leads now coming from blog traffic. There has been significant growth in YouTube leads, which are up 96% year-over-year, newsletters with leads growing 50%, and social media followers.

Organic Search Traffic Decline

The company faces a decline in organic search traffic globally, as AI overviews increasingly provide answers, leading to fewer website click-throughs. This presents a challenge for HubSpot’s traditional lead generation strategies.

Challenging Macro Environment

The macro environment remains uncertain, with expectations of volatile conditions for the rest of the year. This uncertainty poses a challenge to HubSpot’s growth trajectory, although the company remains optimistic about its strategic initiatives.

Forward-Looking Guidance

Despite the challenging macroeconomic environment, HubSpot provided robust financial guidance for the future. For Q3, the company expects revenue between $785 million and $787 million, reflecting a 16% year-over-year increase in constant currency. For the full year 2025, HubSpot forecasts revenue between $3.08 billion and $3.088 billion, representing a 17% growth. The company also anticipates a non-GAAP operating profit margin of 18% and plans to leverage pricing changes and AI integration as key growth drivers.

In conclusion, HubSpot’s earnings call highlighted a positive outlook driven by strong revenue growth, customer expansion, and innovative AI adoption. While challenges such as declining organic search traffic and a volatile macro environment persist, the company’s strategic focus on diversification and innovation positions it well for continued success.