tiprankstipranks
Trending News
More News >
HubSpot (HUBS)
NYSE:HUBS
Advertisement

HubSpot (HUBS) AI Stock Analysis

Compare
3,742 Followers

Top Page

HUBS

HubSpot

(NYSE:HUBS)

Rating:65Neutral
Price Target:
$509.00
▲(4.40% Upside)
HubSpot's overall stock score is driven by strong financial performance and positive earnings call sentiment, indicating potential for future growth. However, technical analysis suggests bearish momentum, and the valuation is unattractive due to a high negative P/E ratio. The company's strategic focus on AI and platform expansion positions it well for long-term success, despite current profitability challenges.
Positive Factors
Revenue Growth
Net new ARR growth started to accelerate, growing faster than revenue growth, which could indicate future revenue growth acceleration.
Technology and Innovation
HubSpot is ahead of the curve in technology evolution, delivering playbooks and products to help customers adapt to the AI-driven front office transformation.
Negative Factors
Pricing Strategy
Pricing is likely to be a pain point, as HubSpot customers are used to seat based pricing versus credit/consumption methods that are inherently more volatile.
Sales and Marketing Spending
Current margins and intermediate-term expansion goals are areas of concern due to significant spending on sales and marketing, partly due to operating in a high churn SMB environment.

HubSpot (HUBS) vs. SPDR S&P 500 ETF (SPY)

HubSpot Business Overview & Revenue Model

Company DescriptionHubSpot (HUBS) is a leading customer relationship management (CRM) platform that provides software solutions for inbound marketing, sales, customer service, and content management. Founded in 2006, HubSpot serves small to mid-sized businesses across various sectors, enabling them to attract, engage, and delight customers through innovative tools and resources. The company's core products include marketing automation, sales pipeline management, customer service tools, and analytics, all designed to help businesses grow and enhance their customer relationships.
How the Company Makes MoneyHubSpot generates revenue primarily through a subscription-based model, offering tiered pricing plans for its software products. The main revenue streams include subscriptions to its Marketing Hub, Sales Hub, Service Hub, and CMS Hub, each of which provides a suite of features and tools tailored to specific business needs. Additionally, HubSpot offers add-ons and premium services that enhance its core offerings, contributing to its overall earnings. The company also benefits from a growing ecosystem of partners, including agencies and technology providers, which help expand its market reach and create additional revenue opportunities through integrations and collaborative services.

HubSpot Key Performance Indicators (KPIs)

Any
Any
Total Customers
Total Customers
Shows the total number of customers using HubSpot's services, indicating market penetration, customer acquisition success, and overall business growth.
Chart InsightsHubSpot's total customer base has been on a robust upward trajectory, with a notable 19% increase year-over-year, reaching over 258,000 customers. This growth is driven by strong net additions and significant AI adoption, as highlighted in the latest earnings call. Despite macroeconomic uncertainties and a slight dip in average subscription revenue per customer, HubSpot's strategic focus on AI and a $500 million share repurchase program underscore confidence in sustained growth and innovation.
Data provided by:Main Street Data

HubSpot Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, with significant revenue growth, customer expansion, and successful AI integration. The company is successfully diversifying its demand channels and gaining upmarket traction. However, challenges remain with declining organic search traffic and some upgrade motions.
Q2-2025 Updates
Positive Updates
Revenue and Growth
Revenue grew 18% year-over-year in constant currency and 19% on an as-reported basis. Subscription revenue grew 19% year-over-year, while services and other revenue increased 21% on an as-reported basis.
Customer Growth
Total customers grew to 268,000 globally with over 9,700 net customer additions in the quarter, representing an 18% year-over-year increase.
AI Innovation
HubSpot has embedded AI across its platform. Customer Agent has been adopted by over 4,000 customers with resolution rates averaging 55%, up more than 5 points in just one quarter.
Upmarket Momentum
Large deals are up, and co-selling with the sales team is up 29% year-over-year, showing strong upmarket momentum.
Diversification of Demand Channels
YouTube leads were up 96% year-over-year, LinkedIn followers grew to over 2 million, and newsletter leads grew 50% year-over-year.
Negative Updates
Organic Search Traffic Decline
Organic search traffic is declining globally, and fewer people are clicking through to websites due to AI overviews providing direct answers.
Challenges in Net Upgrade Motions
Outside of seats, other net upgrade motions faced challenges, with customers remaining very value-focused.
Company Guidance
During HubSpot's Q2 2025 earnings call, the company provided a detailed outlook for the upcoming quarter and fiscal year. For Q3, HubSpot expects total reported revenue to be between $785 million and $787 million, representing a 16% year-over-year increase in constant currency and 17% on an as-reported basis. The non-GAAP operating profit is projected between $156 million and $157 million, equating to a 20% operating profit margin, with non-GAAP diluted net income per share anticipated between $2.56 and $2.58. For the full year of 2025, the company forecasts total reported revenue in the range of $3.08 billion to $3.088 billion, up 17% year-over-year. The non-GAAP operating profit for the year is expected to be between $568 million and $572 million, reflecting an 18% operating profit margin. HubSpot also noted a 0.5-point currency tailwind to as-reported revenue growth for the year. Additionally, the company expects free cash flow to reach approximately $580 million for the full year, with stronger cash flow anticipated in Q4.

HubSpot Financial Statement Overview

Summary
HubSpot demonstrates strong gross margins and effective cash flow management, but faces challenges in achieving net profitability and generating returns on equity. The company's financial leverage is well-managed, providing a stable capital structure. While revenue growth has slowed, the company maintains a solid position in cash generation, indicating potential for future profitability improvements.
Income Statement
72
Positive
HubSpot's income statement shows a strong gross profit margin of 84.55% TTM, indicating efficient cost management. However, the net profit margin is negative at -0.42% TTM, reflecting ongoing challenges in achieving profitability. Revenue growth is positive at 4.55% TTM, but slower compared to previous years, suggesting a deceleration in growth momentum. The EBIT and EBITDA margins are low, indicating limited operational profitability.
Balance Sheet
68
Positive
The balance sheet reveals a healthy debt-to-equity ratio of 0.14 TTM, showcasing strong financial leverage management. However, the return on equity is negative at -0.62% TTM, highlighting challenges in generating returns for shareholders. The equity ratio stands at a solid 56.06%, indicating a strong capital structure with a significant portion of assets financed by equity.
Cash Flow
75
Positive
Cash flow analysis shows robust free cash flow growth of 9.87% TTM, reflecting improved cash generation capabilities. The operating cash flow to net income ratio is strong at 5.68 TTM, indicating efficient conversion of income into cash. The free cash flow to net income ratio is also high at 98.51% TTM, suggesting effective cash management despite net losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.85B2.63B2.17B1.73B1.30B883.03M
Gross Profit2.41B2.23B1.83B1.42B1.04B716.07M
EBITDA126.48M129.23M-74.10M-36.54M1.62M-6.71M
Net Income-11.92M4.63M-164.51M-107.35M-77.84M-85.03M
Balance Sheet
Total Assets3.68B3.80B3.07B2.54B2.17B1.97B
Cash, Cash Equivalents and Short-Term Investments1.67B2.07B1.39B1.41B1.20B1.25B
Total Debt280.53M745.42M787.81M806.34M712.97M788.62M
Total Liabilities1.62B1.89B1.74B1.55B1.30B1.21B
Stockholders Equity2.07B1.91B1.33B992.22M873.80M762.65M
Cash Flow
Free Cash Flow669.46M560.66M250.72M181.40M176.86M30.04M
Operating Cash Flow679.62M598.60M350.97M273.17M238.73M88.91M
Investing Cash Flow-363.72M-515.86M-334.77M-319.66M-179.51M-215.57M
Financing Cash Flow-538.23M53.49M37.01M7.43M-51.47M222.46M

HubSpot Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price487.53
Price Trends
50DMA
505.20
Negative
100DMA
551.32
Negative
200DMA
621.49
Negative
Market Momentum
MACD
-6.93
Negative
RSI
53.29
Neutral
STOCH
63.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBS, the sentiment is Neutral. The current price of 487.53 is above the 20-day moving average (MA) of 456.35, below the 50-day MA of 505.20, and below the 200-day MA of 621.49, indicating a neutral trend. The MACD of -6.93 indicates Negative momentum. The RSI at 53.29 is Neutral, neither overbought nor oversold. The STOCH value of 63.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HUBS.

HubSpot Risk Analysis

HubSpot disclosed 57 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

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$3.22B39.095.22%-0.54%626.94%
66
Neutral
$4.45B-8.21%40.60%79.56%
65
Neutral
$3.28B43.1323.79%7.99%-28.47%
65
Neutral
$24.47B7,452.21-0.65%18.96%58.78%
62
Neutral
$874.59M-32.50%14.79%27.52%
54
Neutral
$291.06M3.16-13.34%2.78%5.71%-76.50%
53
Neutral
$3.82B-31.02%20.42%-9.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HUBS
HubSpot
487.53
-6.98
-1.41%
BL
BlackLine
53.61
5.90
12.37%
SPT
Sprout Social
15.15
-10.96
-41.98%
KC
Kingsoft Cloud Holdings
13.82
11.57
514.22%
GTM
ZoomInfo Technologies
10.23
0.59
6.12%
ZETA
Zeta Global Holdings Corp
18.90
-6.81
-26.49%

HubSpot Corporate Events

Executive/Board ChangesShareholder Meetings
HubSpot Approves Governance Changes at Annual Meeting
Neutral
Jun 10, 2025

On June 4, 2025, HubSpot held its Annual Meeting where stockholders voted on six proposals. The election of directors, ratification of the appointment of PricewaterhouseCoopers LLP as the independent auditor, approval of executive compensation, and amendments to the company’s charter were all approved. These amendments included declassifying the board and eliminating supermajority voting provisions. Additionally, a non-binding stockholder proposal for a simple majority vote was also approved, indicating a shift towards more flexible governance structures.

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.Date of analysis: Aug 23, 2025