HubSpot (HUBS) AI Stock Analysis

• Market Cap: $20.40B
• Dividend Yield: N/A
• Average Volume (3M): 815.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: 19.21%
• EPS Growth: 75.32%
• Country: US
• Employees: 8,574
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.66
• Shares Outstanding: 52,385,550
• 10 Day Avg. Volume: 821,764
• 30 Day Avg. Volume: 815,015
• PEG Ratio: -75.01
• Price to Book (P/B): 18.69
• Price to Sales (P/S): 13.57
• P/FCF Ratio: 63.60
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 7.84
• Enterprise Value/Gross Profit: 9.32
• Enterprise Value/Ebitda: 202.77
• 1Y Price Target: $582.08
• Price Target Upside: 49.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 27
• EPS Forecast (FY): 9.6
• Revenue Forecast (FY): $3.11B

• Rating: 65 Neutral
• Price Target: $408.00 ▲(4.76% Upside)

HubSpot's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting growth in revenue and customer base. However, technical indicators suggest a bearish trend, and valuation metrics are weak due to negative earnings. Corporate events provide a slight positive boost.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for HubSpot's products and effective market penetration, supporting long-term business expansion.

Customer Base Expansion

A growing customer base enhances recurring revenue potential and strengthens HubSpot's market position, driving sustainable growth.

AI Innovations

Continuous innovation in AI enhances product offerings, increases customer engagement, and provides a competitive edge in the CRM market.

Negative Factors

Net Profitability Challenges

Negative net profitability indicates ongoing challenges in cost management and profitability, which could impact long-term financial health.

Flat Net Revenue Retention

Flat net revenue retention suggests challenges in upselling and customer retention, potentially limiting future revenue growth.

Slight Decline in Free Cash Flow Growth

A decline in free cash flow growth can constrain investment in growth initiatives and affect the company's ability to manage financial obligations.

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 generates revenue primarily through subscription-based pricing models for its software products. The company's offerings are divided into several tiers, including Starter, Professional, and Enterprise packages, which cater to businesses of varying sizes and needs. Revenue is derived from monthly or annual subscriptions for these services. Additionally, HubSpot earns income from its professional services, which include training, consulting, and implementation support. The company has established significant partnerships with various technology providers, agencies, and resellers, which contribute to its sales and customer acquisition efforts. HubSpot also benefits from a freemium model, allowing users to access basic features at no cost, with the potential to upgrade as their needs grow, thereby expanding its customer base and driving future revenue growth.

HubSpot Financial Statement Overview

Summary

HubSpot demonstrates strong revenue growth and efficient cost management, as evidenced by its high gross profit margin. The company maintains a solid balance sheet with low leverage, although profitability remains a challenge. Cash flow generation is robust, supporting operational needs despite a slight decline in free cash flow growth. Continued focus on improving net profitability and return on equity will be crucial for future financial health.

Income Statement

HubSpot's income statement shows a strong gross profit margin of 84.55% TTM, indicating efficient cost management. However, the company is still facing challenges in achieving net profitability, with a net profit margin of -0.42% TTM. Revenue growth is positive at 4.91% TTM, but the EBIT margin remains negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet reveals a solid equity position with a debt-to-equity ratio of 0.14 TTM, indicating low leverage. However, the return on equity is negative at -0.62% TTM, suggesting inefficiencies in generating returns from equity. The equity ratio is strong, reflecting a stable financial structure.

Cash Flow

HubSpot's cash flow statement shows robust operating cash flow, with a high operating cash flow to net income ratio of 0.53 TTM. The free cash flow to net income ratio is also strong at 0.99 TTM, indicating effective cash generation relative to net income. However, free cash flow growth has slightly declined by -2.16% TTM.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.99B	2.63B	2.17B	1.73B	1.30B	883.03M
Gross Profit	2.51B	2.23B	1.83B	1.42B	1.04B	716.07M
EBITDA	115.53M	129.23M	-74.10M	-36.54M	1.62M	-6.71M
Net Income	-3.53M	4.63M	-164.51M	-107.35M	-77.84M	-85.03M
Balance Sheet
Total Assets	3.50B	3.80B	3.07B	2.54B	2.17B	1.97B
Cash, Cash Equivalents and Short-Term Investments	1.49B	2.07B	1.39B	1.41B	1.20B	1.25B
Total Debt	271.94M	745.42M	787.81M	806.34M	712.97M	788.62M
Total Liabilities	1.65B	1.89B	1.74B	1.55B	1.30B	1.21B
Stockholders Equity	1.86B	1.91B	1.33B	992.22M	873.80M	762.65M
Cash Flow
Free Cash Flow	654.99M	560.66M	250.72M	181.40M	176.86M	30.04M
Operating Cash Flow	707.43M	598.60M	350.97M	273.17M	238.73M	88.91M
Investing Cash Flow	375.86M	-515.86M	-334.77M	-319.66M	-179.51M	-215.57M
Financing Cash Flow	-890.48M	53.49M	37.01M	7.43M	-51.47M	222.46M

HubSpot Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 389.46
• 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 Neutral. The current price of 389.46 is above the 20-day moving average (MA) of 374.39, below the 50-day MA of 412.21, and below the 200-day MA of 513.74, indicating a neutral trend. The MACD of -6.98 indicates Negative momentum. The RSI at 50.88 is Neutral, neither overbought nor oversold. The STOCH value of 56.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HUBS.

HubSpot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BL	71 Outperform	$3.42B	52.78	21.85%	―	7.36%	-40.62%
GTM	71 Outperform	$3.14B	32.10	6.51%	―	1.47%	1077.70%
ZETA	67 Neutral	$4.18B	-153.92	-3.92%	―	35.87%	85.20%
HUBS	65 Neutral	$20.40B	―	-0.20%	―	19.21%	75.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$653.08M	-13.88	-26.69%	―	13.09%	32.34%
KC	51 Neutral	$3.44B	-20.84	-15.89%	―	24.26%	55.58%

HubSpot Corporate Events

HubSpot Expands Board and Reports Strong Q3 2025 Results

On November 3, 2025, HubSpot‘s Board of Directors expanded to 11 members with the appointment of Clara Shih as a Class III director. Concurrently, HubSpot reported strong financial results for Q3 2025, with a 21% increase in total revenue to $809.5 million and significant growth in operating and net income. The company highlighted its AI strategy’s success and customer expansion, positioning itself for continued growth.