HubSpot (HUBS) AI Stock Analysis

• Market Cap: $12.78B
• Dividend Yield: N/A
• Average Volume (3M): 953.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• 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: 1,434,679
• 30 Day Avg. Volume: 953,495
• 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: 0.97
• Enterprise Value/Revenue: 4.16
• Enterprise Value/Gross Profit: 4.95
• Enterprise Value/Ebitda: 107.64
• 1Y Price Target: $546.26
• Price Target Upside: 123.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 25
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $256.00 ▲(4.95% Upside)

The score is held up primarily by solid underlying financial quality (high gross margins, strong cash flow generation, and low leverage) and a constructive earnings outlook with improving non-GAAP profitability guidance. However, technical conditions are a major drag due to a pronounced downtrend and bearish momentum, while valuation provides limited support given the non-meaningful negative P/E and no dividend yield.

Positive Factors

Very high gross margin

An 84.55% TTM gross margin reflects persistent SaaS economics and strong pricing power. High gross margins provide durable operating leverage as revenue scales, enabling reinvestment in product, sales and R&D while supporting margin expansion over the next 2–6 months.

Robust cash generation and FCF conversion

Near-1.0 FCF-to-net-income and strong operating cash conversion indicate the business reliably converts bookings into cash. This durable cash generation supports reinvestment, M&A optionality and reduces refinancing risk given the company's low leverage profile.

Recurring subscription model, customer growth, AI & international expansion

Strong customer additions, meaningful upmarket traction and 20% international growth reflect scalable, diversified revenue drivers. Coupled with 200+ AI product updates, the company is structurally positioned to boost retention, upsells and long-term ARPU across geographies and segments.

Negative Factors

Negative net margin and ROE

Despite revenue growth and high gross margins, negative net margin and ROE indicate the company hasn't consistently translated top-line scale into GAAP profitability. This structural profitability gap can constrain returns to shareholders until sustained operating leverage or cost discipline improves.

Flat net revenue retention (NRR)

A 103% NRR that is flat signals limited expansion revenue per customer. Over the medium term, muted NRR growth reduces organic revenue upside from existing customers and increases reliance on new customer acquisition to sustain revenue growth.

Slight FCF growth decline and softer billings/additions guidance

Negative FCF growth (-2.16% TTM) alongside guidance for modestly lower net additions and slightly softer billings point to near-term pressure on cash growth. If persistent, this can limit reinvestment capacity and slow margin improvement despite strong baseline cash conversion.

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

Strong gross margin (84.55% TTM) and robust cash generation (free cash flow to net income 0.99 TTM) support operating flexibility, while low leverage (debt-to-equity 0.14 TTM) reduces balance-sheet risk. Offsetting this, profitability metrics remain weak (net margin -0.42% TTM; ROE -0.62% TTM) and free cash flow growth is slightly negative (-2.16% TTM).

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: Negative
• Last Price: 243.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 243.93 is below the 20-day moving average (MA) of 320.04, below the 50-day MA of 357.58, and below the 200-day MA of 478.17, indicating a bearish trend. The MACD of -31.02 indicates Positive momentum. The RSI at 19.89 is Positive, neither overbought nor oversold. The STOCH value of 9.82 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
ZETA	70 Outperform	$4.27B	-149.61	-3.92%	―	35.87%	85.20%
GTM	68 Neutral	$2.14B	21.69	6.51%	―	1.47%	1077.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BL	61 Neutral	$2.67B	40.98	21.85%	―	7.36%	-40.62%
SPT	61 Neutral	$476.64M	-9.95	-26.69%	―	13.09%	32.34%
KC	60 Neutral	$3.83B	―	-15.88%	―	24.26%	55.58%
HUBS	59 Neutral	$12.78B	-3,509.78	-0.20%	―	19.21%	75.32%

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.

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.