HubSpot (HUBS) AI Stock Analysis

• Market Cap: $27.28B
• Dividend Yield: N/A
• Average Volume (3M): 754.96K
• Price to Earnings (P/E): 7452.2
• Beta (1Y): 1.38
• Revenue Growth: 18.96%
• EPS Growth: 58.78%
• Country: US
• Employees: 8,574
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.19
• Shares Outstanding: 52,693,110
• 10 Day Avg. Volume: 626,021
• 30 Day Avg. Volume: 754,964
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 9.81
• Enterprise Value/Gross Profit: 11.60
• Enterprise Value/Ebitda: 220.92
• 1Y Price Target: $693.65
• Price Target Upside: 33.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 29

• Rating: 69 Neutral
• Price Target: $566.00 ▲(9.32% Upside)

HubSpot's overall stock score is driven by strong financial performance in terms of cash flow management and positive earnings call sentiment, which highlight growth potential and strategic initiatives. However, valuation concerns and technical resistance levels temper the outlook, reflecting a balanced risk-reward scenario.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates HubSpot's expanding market reach and product adoption, supporting long-term business sustainability.

AI Integration

Successful AI integration enhances HubSpot's product offerings, improving customer satisfaction and competitive positioning in the CRM market.

Cash Flow Management

Strong cash flow management indicates HubSpot's ability to fund operations and growth initiatives, ensuring financial stability and resilience.

Negative Factors

Net Profitability Challenges

Ongoing challenges in achieving profitability could hinder HubSpot's ability to reinvest in growth and return value to shareholders.

Organic Search Traffic Decline

Declining organic search traffic may impact HubSpot's lead generation and customer acquisition, affecting future revenue growth potential.

Net Upgrade Motion Challenges

Challenges in upgrade motions suggest potential difficulties in upselling, which could limit revenue growth from existing customers.

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 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.85B	2.63B	2.17B	1.73B	1.30B	883.03M
Gross Profit	2.41B	2.23B	1.83B	1.42B	1.04B	716.07M
EBITDA	126.48M	129.23M	-74.10M	-36.54M	1.62M	-6.71M
Net Income	-11.92M	4.63M	-164.51M	-107.35M	-77.84M	-85.03M
Balance Sheet
Total Assets	3.68B	3.80B	3.07B	2.54B	2.17B	1.97B
Cash, Cash Equivalents and Short-Term Investments	1.67B	2.07B	1.39B	1.41B	1.20B	1.25B
Total Debt	280.53M	745.42M	787.81M	806.34M	712.97M	788.62M
Total Liabilities	1.62B	1.89B	1.74B	1.55B	1.30B	1.21B
Stockholders Equity	2.07B	1.91B	1.33B	992.22M	873.80M	762.65M
Cash Flow
Free Cash Flow	669.46M	560.66M	250.72M	181.40M	176.86M	30.04M
Operating Cash Flow	679.62M	598.60M	350.97M	273.17M	238.73M	88.91M
Investing Cash Flow	-363.72M	-515.86M	-334.77M	-319.66M	-179.51M	-215.57M
Financing Cash Flow	-538.23M	53.49M	37.01M	7.43M	-51.47M	222.46M

HubSpot Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 517.76
• 50DMA: Positive
• 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 Positive. The current price of 517.76 is above the 20-day moving average (MA) of 499.17, above the 50-day MA of 493.11, and below the 200-day MA of 605.66, indicating a neutral trend. The MACD of 8.80 indicates Negative momentum. The RSI at 58.44 is Neutral, neither overbought nor oversold. The STOCH value of 62.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HUBS.

HubSpot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTM	73 Outperform	$3.68B	44.17	5.75%	―	-0.54%	626.94%
HUBS	69 Neutral	$27.28B	7,452.21	-0.65%	―	18.96%	58.78%
ZETA	66 Neutral	$4.88B	-106.76	-5.43%	―	40.60%	79.56%
SPT	62 Neutral	$826.33M	-14.80	-37.20%	―	14.79%	27.52%
BL	61 Neutral	$3.27B	42.51	21.25%	―	7.99%	-28.47%
KC	61 Neutral	$4.52B	-13.89	-38.05%	―	20.42%	-9.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

HubSpot Corporate Events

HubSpot Approves Governance Changes at Annual Meeting

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.