HubSpot (HUBS) AI Stock Analysis

• Market Cap: $30.70B
• Dividend Yield: N/A
• Average Volume (3M): 701.18K
• Price to Earnings (P/E): 7452.2
• Beta (1Y): 1.46
• Revenue Growth: 19.17%
• EPS Growth: 83.20%
• Country: US
• Employees: 8,574
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 1.78
• Shares Outstanding: 52,737,568
• 10 Day Avg. Volume: 740,998
• 30 Day Avg. Volume: 701,180
• PEG Ratio: 5.41
• Price to Book (P/B): 10.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 102.28
• Enterprise Value/Market Cap: 0.23
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 17.14
• 1Y Price Target: $748.32
• Price Target Upside: 30.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 28

• Rating: 70 Neutral
• Price Target: $682.00 ▲(18.90%Upside)

HubSpot's strong financial performance and positive earnings call sentiment are key strengths, supported by revenue and customer growth, and strategic initiatives like AI adoption and share buybacks. However, ongoing net losses and a high P/E ratio highlight valuation concerns, along with mixed technical indicators, create potential headwinds.

Positive Factors

Demand Recovery

Demand has recovered from the slowdown reported earlier, with no lost deals and customer fears not manifesting.

Financial Performance

HubSpot delivered strong first-quarter results with constant-currency revenue growth of 18%, above its guidance of 15%.

Growth Potential

HubSpot is in a solid position to compound revenue over time and improve profitability.

Negative Factors

Competitive Pressure

HUBS is facing competitive pressure from CRM, which has ramped up resources in the mid-market.

Guidance Concerns

HUBS stock has decreased due to guidance implying a lower exit growth rate and competitive pressure concerns.

Valuation Concerns

HubSpot trades at 9.9 times revenue estimate, while peers that are growing 15%-20% are trading at 7.1 times revenue, suggesting a premium valuation.

HubSpot Business Overview & Revenue Model

Company Description

HubSpot, Inc. (HUBS) is a leading provider of inbound marketing, sales, and customer service software, helping businesses grow through its comprehensive suite of tools designed to enhance customer engagement and optimize marketing strategies. Founded in 2006 and headquartered in Cambridge, Massachusetts, HubSpot offers a cloud-based platform that integrates various functions such as blogging, search engine optimization, social media monitoring, content management, web analytics, landing pages, and customer relationship management, aimed at small to medium-sized businesses.

How the Company Makes Money

HubSpot makes money primarily through a subscription-based revenue model, offering its marketing, sales, and service tools as part of a Software-as-a-Service (SaaS) platform. The company generates revenue through tiered subscription plans, which vary in features and pricing, allowing businesses of different sizes to choose packages that best fit their needs. Key revenue streams include the Marketing Hub, Sales Hub, Service Hub, and the CMS Hub, each providing distinct functionalities to manage and enhance customer interactions. HubSpot also earns revenue from professional services and training, which help clients effectively implement and utilize its software. The company benefits from partnerships with third-party developers and service providers, who contribute to HubSpot's ecosystem through integrations and extensions that enhance the platform's value for users.

HubSpot Financial Statement Overview

Summary

HubSpot demonstrates significant revenue growth and strong cash flow generation, which are positive indicators for a high-growth software company. However, persistent net losses and negative EBIT highlight challenges in achieving profitability. The balance sheet remains healthy with moderate leverage, and the company exhibits effective cash flow management, positioning it well for future growth if profitability can be improved.

Income Statement

HubSpot's income statement shows strong revenue growth over the years, with a TTM increase of 3.68% from the previous year. Gross profit margins have remained robust, reaching 84.86% in the TTM period. However, the company continues to report negative EBIT and net income, indicating challenges in managing operational costs and achieving profitability. The EBITDA margin of 3.25% in the TTM suggests some improvement in operational efficiency.

Balance Sheet

The balance sheet of HubSpot reflects a healthy equity position, with an equity ratio of 51.45% in the TTM. The debt-to-equity ratio stands at 0.33, indicating moderate leverage and manageable debt levels. However, the return on equity is negative due to the net losses, which highlights the need for improved profitability to generate returns for shareholders.

Cash Flow

HubSpot's cash flow statement reveals a positive free cash flow growth rate of 8.68% in the TTM, supported by strong operating cash flow. The operating cash flow to net income ratio is high, reflecting efficient cash generation despite net losses. The free cash flow to net income ratio is also positive, underscoring the company's ability to maintain liquidity and invest in growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.72B	2.63B	2.17B	1.73B	1.30B	883.03M
	Gross Profit
2.31B	2.23B	1.82B	1.42B	1.04B	716.07M
	EBIT
-70.77M	-67.60M	-208.06M	-109.10M	-43.54M	-50.83M
	EBITDA
88.63M	146.00M	-81.23M	-38.53M	-228.00K	-4.57M
	Net Income Common Stockholders
-23.10M	4.63M	-176.29M	-112.75M	-77.84M	-85.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
961.50M	2.07B	1.39B	1.41B	1.20B	1.25B
	Total Assets
1.57B	3.80B	3.07B	2.54B	2.17B	1.97B
	Total Debt
608.39M	745.42M	787.81M	806.34M	712.97M	788.62M
	Net Debt
338.72M	232.75M	399.83M	475.32M	335.95M	410.50M
	Total Liabilities
919.31M	1.89B	1.75B	1.55B	1.30B	1.21B
	Stockholders Equity
649.96M	1.91B	1.32B	992.22M	873.80M	762.65M
Cash Flow		Free Cash Flow
609.31M	560.66M	250.72M	181.40M	176.86M	30.04M
	Operating Cash Flow
633.08M	598.60M	350.97M	273.17M	238.73M	88.91M
	Investing Cash Flow
-419.17M	-515.86M	-334.77M	-319.66M	-179.51M	-215.57M
	Financing Cash Flow
-37.99M	53.49M	37.01M	7.43M	-51.47M	222.46M

HubSpot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 573.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 573.57 is below the 20-day moving average (MA) of 615.76, below the 50-day MA of 594.24, and below the 200-day MA of 630.71, indicating a bearish trend. The MACD of -7.87 indicates Positive momentum. The RSI at 38.59 is Neutral, neither overbought nor oversold. The STOCH value of 35.60 is Neutral, 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
BSY	81 Outperform	$14.55B	60.97	25.20%	0.58%	10.71%	-27.64%
BL	71 Outperform	$3.49B	26.08	44.83%	―	8.93%	102.77%
FRSH	71 Outperform	$4.69B	―	-6.85%	―	20.46%	39.37%
HUBS	70 Neutral	$30.70B	7,452.21	-1.34%	―	19.17%	83.20%
SPT	66 Neutral	$1.31B	―	-36.95%	―	17.79%	16.49%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%

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.

The most recent analyst rating on (HUBS) stock is a Buy with a $769.00 price target. To see the full list of analyst forecasts on HubSpot stock, see the HUBS Stock Forecast page.

HubSpot Announces Leadership Change and Share Buyback

On May 6, 2025, Brian Halligan resigned as Executive Chairperson of HubSpot‘s Board of Directors, transitioning to a non-executive director role, while Lorrie Harrington became the new Chairperson. The same day, HubSpot’s Board authorized a $500 million share repurchase program over 12 months. HubSpot reported Q1 2025 financial results with a 16% revenue increase to $714.1 million and a 19% growth in customer base. Despite a GAAP net loss of $21.8 million, non-GAAP net income rose to $95.9 million. The company anticipates continued growth, projecting a 16% revenue increase for Q2 and the full year 2025.

HubSpot Approves Executive Severance Plan for 2025

On April 10, 2025, HubSpot‘s Board of Directors approved an Executive Severance Plan to provide severance payments and benefits to its CEO and other named executive officers in the event of a qualifying termination. This plan, effective until April 10, 2028, outlines specific compensation and benefits during and outside of a change in control period, impacting the company’s executive management structure and potentially influencing stakeholder confidence.