HubSpot (HUBS) AI Stock Analysis

• Market Cap: $13.65B
• Dividend Yield: N/A
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 458.5
• Beta (1Y): 1.32
• Revenue Growth: 19.21%
• EPS Growth: 75.32%
• Country: US
• Employees: 8,574
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.09
• Shares Outstanding: 52,740,536
• 10 Day Avg. Volume: 1,309,842
• 30 Day Avg. Volume: 1,990,645
• PEG Ratio: 0.52
• Price to Book (P/B): 10.19
• Price to Sales (P/S): 6.72
• P/FCF Ratio: 29.75
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 4.23
• Enterprise Value/Gross Profit: 5.05
• Enterprise Value/Ebitda: 70.26
• 1Y Price Target: $371.88
• Price Target Upside: 43.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 26
• EPS Forecast (FY): 12.45
• Revenue Forecast (FY): $3.70B

• Rating: 70 Outperform
• Price Target: $285.00 ▲(10.12% Upside)
• Action: Upgraded Date: 02/12/26
• Date: Action: Upgraded 02/12/26

The score is driven by strong financial performance (profitability turnaround, improved balance sheet, and robust free cash flow) and a constructive earnings outlook with margin expansion and capital return. These positives are materially offset by very weak technicals (sharp downtrend and oversold momentum) and unfavorable/less-informative valuation signals from a negative P/E and no dividend yield.

Positive Factors

Multihub adoption and cross-sell

High and rising multihub penetration signals durable customer stickiness and higher lifetime value. Cross-sell reduces churn, increases average revenue per customer, and supports scalability: deeper platform embedding makes renewals and upsells more repeatable across sales cycles and market conditions.

Strong free cash flow generation

Consistent and growing free cash flow strengthens financial flexibility for product investment, M&A, and buybacks. Reliable cash generation improves resilience versus cyclical demand and underpins the company's ability to support profitable growth and maintain a healthier capital structure over multiple quarters.

Upmarket expansion and larger deals

Clear traction upmarket demonstrates improved product-market fit with larger customers, which typically yields higher retention, greater multi‑year contract potential, and more predictable revenue. Enterprise expansion diversifies revenue and supports margin leverage as higher‑ACV deals scale.

Negative Factors

Near-term revenue deceleration vs long-term goal

A gap between conservative near‑term guidance and longer‑term growth targets suggests execution or market cadence risk. If reacceleration takes multiple quarters, operating leverage and investor expectations may be pressured; sustained slower top‑line growth could constrain margin expansion plans.

Channel and discovery headwinds (SEO)

A structural shift in top‑of‑funnel discovery (declining search) forces investment and experimentation in new channels, raising customer acquisition costs and execution risk. Persistent channel transition can slow net new ARR and make predictable scaling of demand generation harder for quarters to come.

Operating profitability still thin/volatile

While net income has turned positive, operating margins remain somewhat fragile relative to revenue. Volatile or thin operating profitability limits sustainable reinvestment, increases sensitivity to adverse market conditions, and raises the bar on consistent execution to maintain free cash flow and returns over time.

HubSpot Business Overview & Revenue Model

Company Description

HubSpot, Inc. provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes marketing, sales, service, and content management systems, as well as integrated applications, such as search engine optimization, blogging, website content management, messaging, chatbots, social media, marketing automation, email, predictive lead scoring, sales productivity, knowledge base, commerce, conversation routing, video hosting, ticketing and helpdesk tools, customer NPS surveys, analytics, and reporting. It also offers professional services to educate and train customers on how to leverage its CRM platform, as well as phone and/or email and chat-based support services. The company serves mid-market business-to-business companies. HubSpot, Inc. was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

HubSpot primarily makes money by selling subscriptions to its cloud software platform. The company’s revenue is largely recurring and generated from customers who pay for access to one or more of its product “Hubs” (e.g., Marketing Hub, Sales Hub, Service Hub, Content Hub, Operations Hub, and Commerce-related capabilities) and the underlying CRM. Pricing generally scales based on factors such as the specific hubs purchased, feature tiers, and usage/seat-based components (for example, paid user seats for sales or service teams and/or marketing contact tiers), which allows customers to start with a smaller package and expand over time as their needs grow. In addition to subscription revenue, HubSpot generates professional services and other revenue from onboarding, implementation assistance, consulting, and training services that help customers deploy and adopt the platform. A meaningful contributor to customer adoption and retention is its ecosystem of third-party app integrations and partner channel (solutions providers and agencies) that implement HubSpot for clients; while partnership arrangements can support sales and expansion, the core monetization remains subscription fees for the software plus services tied to setup and enablement.

HubSpot Financial Statement Overview

Summary

Strong multi-year revenue expansion and a clear profitability inflection (losses to meaningful net income), paired with standout and improving free cash flow generation. Balance sheet leverage has improved with debt reduced and equity growth. Offsets are decelerating growth and still-developing consistency in operating profitability versus the revenue base.

Income Statement

Revenue has expanded strongly over the last several years (from ~$0.9B in 2020 to ~$3.1B in 2025), though the growth rate has clearly decelerated recently (2025 vs. 2024). Profitability has improved meaningfully: the company moved from consistent losses (2020–2023) to positive net income in 2024 and a much stronger profit level in 2025. Gross margin remains very high and stable (~80–85%), supporting long-term earnings power. The key weakness is that operating profitability still looks thin/volatile versus the revenue base, indicating results are not yet consistently converting to robust operating earnings.

Balance Sheet

Leverage has improved materially, with total debt down sharply from 2024 to 2025 and the debt load now modest relative to equity. Equity has grown substantially since 2020, and returns on equity turned positive in 2024 and improved further in 2025, signaling healthier profitability on the capital base. The main risk is that returns are still modest and have only recently recovered from multiple years of negative performance, so the balance sheet strength is partly dependent on maintaining the profitability turnaround.

Cash Flow

Cash generation is a standout: operating cash flow and free cash flow have risen consistently, reaching ~$761M and ~$708M respectively in 2025. Free cash flow growth remained positive in 2024 and accelerated in 2025, pointing to improving efficiency and scalability. Free cash flow is very strong relative to reported net income, which supports earnings quality and financial flexibility. A watch item is that cash flow coverage (as provided) is not especially high, but overall the trajectory and magnitude of cash generation are clearly favorable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.13B	2.63B	2.17B	1.73B	1.30B
Gross Profit	2.62B	2.23B	1.83B	1.42B	1.04B
EBITDA	175.89M	129.23M	-74.10M	-36.54M	1.62M
Net Income	45.91M	4.63M	-164.51M	-107.35M	-77.84M
Balance Sheet
Total Assets	3.85B	3.80B	3.07B	2.54B	2.17B
Cash, Cash Equivalents and Short-Term Investments	1.70B	2.07B	1.39B	1.41B	1.20B
Total Debt	484.91M	745.42M	787.81M	806.34M	712.97M
Total Liabilities	1.79B	1.89B	1.74B	1.55B	1.30B
Stockholders Equity	2.07B	1.91B	1.33B	992.22M	873.80M
Cash Flow
Free Cash Flow	707.55M	560.66M	250.72M	181.40M	176.86M
Operating Cash Flow	760.72M	598.60M	350.97M	273.17M	238.73M
Investing Cash Flow	491.77M	-515.86M	-334.77M	-319.66M	-179.51M
Financing Cash Flow	-910.01M	53.49M	37.01M	7.43M	-51.47M

HubSpot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 258.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBS, the sentiment is Negative. The current price of 258.81 is below the 20-day moving average (MA) of 264.24, below the 50-day MA of 277.18, and below the 200-day MA of 421.48, indicating a bearish trend. The MACD of -2.81 indicates Negative momentum. The RSI at 45.31 is Neutral, neither overbought nor oversold. The STOCH value of 20.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HUBS.

HubSpot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUBS	70 Outperform	$13.65B	458.50	2.30%	―	19.21%	75.32%
ZETA	69 Neutral	$4.14B	-143.66	-4.43%	―	35.87%	85.20%
GTM	66 Neutral	$1.80B	26.41	7.96%	―	1.47%	1077.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KC	60 Neutral	$4.19B	-1,593.62	-16.43%	―	24.26%	55.58%
SPT	59 Neutral	$343.53M	-15.25	-22.88%	―	13.09%	32.34%
BL	54 Neutral	$2.33B	168.71	6.57%	―	7.36%	-40.62%

HubSpot Corporate Events

HubSpot Updates Bylaws on Federal Securities Court Jurisdiction

On March 11, 2026, HubSpot, Inc.’s Board of Directors approved an immediate amendment to its sixth amended and restated by-laws to designate U.S. federal district courts as the exclusive forum for complaints under the Securities Act of 1933 and the Securities Exchange Act of 1934. The change aligns HubSpot’s governance framework with recent updates to Delaware corporate law on forum selection, potentially providing greater procedural clarity and consistency in securities litigation for the company and its shareholders.

The most recent analyst rating on (HUBS) stock is a Hold with a $320.00 price target. To see the full list of analyst forecasts on HubSpot stock, see the HUBS Stock Forecast page.