HubSpot (HUBS) AI Stock Analysis

• Market Cap: $20.69B
• Dividend Yield: N/A
• Average Volume (3M): 995.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• 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: 968,263
• 30 Day Avg. Volume: 995,756
• 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: 1.13
• Enterprise Value/Revenue: 7.84
• Enterprise Value/Gross Profit: 9.32
• Enterprise Value/Ebitda: 223.82
• 1Y Price Target: $604.25
• Price Target Upside: 51.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 25
• EPS Forecast (FY): 9.53
• Revenue Forecast (FY): $3.09B

• Rating: 62 Neutral
• Price Target: $418.00 ▲(4.92% Upside)

HubSpot's overall stock score reflects a mix of strong financial performance and positive earnings call sentiment, offset by weak technical indicators and challenging valuation metrics. The company's robust revenue growth and strategic focus on AI and platform expansion are key strengths. However, the negative P/E ratio and bearish technical signals indicate potential risks. Continued improvement in profitability and market sentiment will be crucial for enhancing the stock's attractiveness.

Positive Factors

AI Innovations

HubSpot's focus on AI innovations positions it well for future growth, enhancing product offerings and customer value, which can drive long-term competitive advantage.

Customer Base Expansion

The significant growth in customer base indicates strong market demand and successful customer acquisition strategies, supporting sustainable revenue growth.

Cash Flow Management

Effective cash flow management enhances HubSpot's ability to invest in growth opportunities and maintain financial stability, crucial for long-term success.

Negative Factors

Net Profitability Challenges

Persistent net profitability challenges may limit HubSpot's ability to reinvest in business growth and could impact investor confidence over time.

Billing Growth Deceleration

A slowdown in billing growth may indicate challenges in maintaining sales momentum, potentially affecting future revenue and market position.

Net Revenue Retention

Flat net revenue retention suggests difficulties in upselling or retaining existing customers, which could hinder long-term revenue growth.

HubSpot Business Overview & Revenue Model

Company Description

HubSpot (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 Money

HubSpot 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 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	104.66M	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: Negative
• Last Price: 398.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 398.4 is below the 20-day moving average (MA) of 458.39, below the 50-day MA of 474.85, and below the 200-day MA of 567.09, indicating a bearish trend. The MACD of -9.60 indicates Positive momentum. The RSI at 32.16 is Neutral, neither overbought nor oversold. The STOCH value of 17.34 is Positive, 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
GTM	78 Outperform	$3.33B	33.38	6.51%	―	1.47%	1077.70%
BL	67 Neutral	$3.52B	48.92	21.85%	―	7.36%	-40.62%
HUBS	62 Neutral	$20.69B	―	-0.20%	―	19.21%	75.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$581.17M	―	-26.69%	―	13.09%	32.34%
ZETA	61 Neutral	$4.65B	―	-3.92%	―	35.87%	85.20%
KC	48 Neutral	$3.54B	-10.32	-31.02%	―	20.42%	-9.39%

HubSpot Corporate Events

HubSpot’s Earnings Call Highlights Growth and AI Advances

The recent earnings call for HubSpot, Inc. revealed a generally positive sentiment, with strong performance metrics and growth drivers highlighted. The company demonstrated impressive revenue growth, an expanding customer base, and significant advancements in AI innovations. However, challenges such as flat net revenue retention and slightly lower billing growth were also noted. Overall, the positive aspects and growth outlooks slightly outweighed the challenges.

HubSpot, Inc. Reports Strong Q3 2025 Results

HubSpot, Inc. is a customer platform company that provides a unified platform for businesses to connect and grow, featuring AI-powered engagement hubs and a Smart CRM. In its third quarter of 2025, HubSpot reported a total revenue of $809.5 million, marking a 21% increase from the previous year. The company also highlighted a significant rise in subscription revenue and a positive shift in its operating margin. Key financial metrics revealed a GAAP net income of $16.5 million, with non-GAAP net income reaching $140.3 million. The company also reported a robust cash flow from operations and a strategic stock repurchase. Looking ahead, HubSpot is optimistic about its growth trajectory, projecting continued revenue growth and an increase in non-GAAP operating income for the fourth quarter and full year of 2025.

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.

The most recent analyst rating on (HUBS) stock is a Buy with a $650.00 price target. To see the full list of analyst forecasts on HubSpot stock, see the HUBS Stock Forecast page.

HubSpot’s 2025 Share Repurchase Program: Potential Risks and Market Impacts

HubSpot, Inc.’s 2025 Share Repurchase Program, authorized by its Board of Directors, allows for the repurchase of up to $500 million of common stock, with $250 million still available. However, the program’s discretionary nature and lack of obligation to repurchase a specific number of shares introduce uncertainties. These uncertainties may lead to increased stock price volatility and diminished cash reserves, potentially impacting the long-term stockholder value. The program’s flexibility to be suspended or terminated without notice adds further risk to the market valuation of HubSpot’s common stock.

HubSpot’s Earnings Call: Strong Growth Amid Challenges

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.

HubSpot’s Q2 2025 Earnings Show Strong Growth

HubSpot, Inc., a leading customer platform in the technology sector, provides businesses with AI-powered engagement tools and a unified platform to enhance customer interactions.