HubSpot (HUBS) AI Stock Analysis

• Market Cap: $13.90B
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 303.0
• Beta (1Y): 1.38
• Revenue Growth: 19.21%
• EPS Growth: 75.32%
• Country: US
• Employees: 8,574
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.09
• Shares Outstanding: 52,740,536
• 10 Day Avg. Volume: 1,895,234
• 30 Day Avg. Volume: 2,113,607
• PEG Ratio: 0.52
• Price to Book (P/B): 10.19
• Price to Sales (P/S): 6.72
• P/FCF Ratio: 29.75
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 4.53
• Enterprise Value/Gross Profit: 5.40
• Enterprise Value/Ebitda: 75.14
• 1Y Price Target: $374.13
• Price Target Upside: 41.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 25
• EPS Forecast (FY): 12.42
• Revenue Forecast (FY): $3.70B

• Rating: 70 Outperform
• Price Target: $291.00 ▲(10.39% Upside)
• Action: Upgraded Date: 02/12/26
• Date: Action: Upgraded 02/12/26

The score is driven by strong financial performance (profitability turnaround, improved balance sheet, and robust free cash flow) and a constructive earnings outlook with margin expansion and capital return. These positives are materially offset by very weak technicals (sharp downtrend and oversold momentum) and unfavorable/less-informative valuation signals from a negative P/E and no dividend yield.

Positive Factors

Multihub cross-sell

Sustained multihub adoption creates durable ARPU expansion and higher switching costs; customers with multiple hubs are harder to replace, improve retention and lifetime value, and make organic revenue expansion less dependent on pure new logo growth over the medium term.

Strong free cash flow

Robust and growing free cash flow provides financial flexibility for product investment, strategic M&A, and capital returns without relying on external financing; strong cash conversion underpins sustainable operations and cushions the company through cyclical marketing or sales fluctuations.

Improved balance sheet

Reduced leverage and stronger equity position lower financial risk and increase optionality for buybacks, acquisitions, or investment in AI and product development; healthier ROE and capital structure support long-term resilience and lower refinancing vulnerability.

Negative Factors

Decelerating revenue growth

A slowing top-line growth pace reduces leverage from operating scalability and can compress future margin expansion; as the revenue base enlarges, maintaining historical high growth requires sustained product innovation and successful upmarket expansion to avoid margin and investor expectations pressure.

Operating profitability variability

While gross margins are high, inconsistent operating margin conversion leaves earnings vulnerable to increased sales/marketing or R&D spending and channel shifts; this variability can limit predictability of long-term free cash flow and constrains sustainable margin guidance visibility.

TOFU/channel headwinds

Structural declines in traditional search traffic can raise customer acquisition costs and slow net new ARR if alternative channels scale unevenly; sustained changes in discovery behavior force longer-term investment in marketing and product-led channels, pressuring near-term unit economics.

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 multi-year revenue expansion and a clear profitability inflection (losses to meaningful net income), paired with standout and improving free cash flow generation. Balance sheet leverage has improved with debt reduced and equity growth. Offsets are decelerating growth and still-developing consistency in operating profitability versus the revenue base.

Income Statement

Revenue has expanded strongly over the last several years (from ~$0.9B in 2020 to ~$3.1B in 2025), though the growth rate has clearly decelerated recently (2025 vs. 2024). Profitability has improved meaningfully: the company moved from consistent losses (2020–2023) to positive net income in 2024 and a much stronger profit level in 2025. Gross margin remains very high and stable (~80–85%), supporting long-term earnings power. The key weakness is that operating profitability still looks thin/volatile versus the revenue base, indicating results are not yet consistently converting to robust operating earnings.

Balance Sheet

Leverage has improved materially, with total debt down sharply from 2024 to 2025 and the debt load now modest relative to equity. Equity has grown substantially since 2020, and returns on equity turned positive in 2024 and improved further in 2025, signaling healthier profitability on the capital base. The main risk is that returns are still modest and have only recently recovered from multiple years of negative performance, so the balance sheet strength is partly dependent on maintaining the profitability turnaround.

Cash Flow

Cash generation is a standout: operating cash flow and free cash flow have risen consistently, reaching ~$761M and ~$708M respectively in 2025. Free cash flow growth remained positive in 2024 and accelerated in 2025, pointing to improving efficiency and scalability. Free cash flow is very strong relative to reported net income, which supports earnings quality and financial flexibility. A watch item is that cash flow coverage (as provided) is not especially high, but overall the trajectory and magnitude of cash generation are clearly favorable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.13B	2.63B	2.17B	1.73B	1.30B
Gross Profit	2.62B	2.23B	1.83B	1.42B	1.04B
EBITDA	175.89M	129.23M	-74.10M	-36.54M	1.62M
Net Income	45.91M	4.63M	-164.51M	-107.35M	-77.84M
Balance Sheet
Total Assets	3.85B	3.80B	3.07B	2.54B	2.17B
Cash, Cash Equivalents and Short-Term Investments	1.70B	2.07B	1.39B	1.41B	1.20B
Total Debt	484.91M	745.42M	787.81M	806.34M	712.97M
Total Liabilities	1.79B	1.89B	1.74B	1.55B	1.30B
Stockholders Equity	2.07B	1.91B	1.33B	992.22M	873.80M
Cash Flow
Free Cash Flow	707.55M	560.66M	250.72M	181.40M	176.86M
Operating Cash Flow	760.72M	598.60M	350.97M	273.17M	238.73M
Investing Cash Flow	491.77M	-515.86M	-334.77M	-319.66M	-179.51M
Financing Cash Flow	-910.01M	53.49M	37.01M	7.43M	-51.47M

HubSpot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 263.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 263.6 is above the 20-day moving average (MA) of 241.35, below the 50-day MA of 311.80, and below the 200-day MA of 446.23, indicating a neutral trend. The MACD of -14.25 indicates Negative momentum. The RSI at 49.12 is Neutral, neither overbought nor oversold. The STOCH value of 91.90 is Negative, 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
HUBS	70 Outperform	$13.90B	302.99	2.31%	―	19.21%	75.32%
ZETA	69 Neutral	$4.27B	―	-4.25%	―	35.87%	85.20%
GTM	66 Neutral	$1.89B	15.97	7.76%	―	1.47%	1077.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KC	60 Neutral	$3.90B	-24.50	-15.88%	―	24.26%	55.58%
SPT	59 Neutral	$384.93M	―	-23.42%	―	13.09%	32.34%
BL	53 Neutral	$2.14B	93.19	6.29%	―	7.36%	-40.62%