HubSpot (HUBS) AI Stock Analysis

• Market Cap: $22.65B
• Dividend Yield: N/A
• Average Volume (3M): 919.31K
• Price to Earnings (P/E): 7452.2
• Beta (1Y): 1.41
• Revenue Growth: 18.96%
• EPS Growth: 58.78%
• Country: US
• Employees: 8,574
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 2.19
• Shares Outstanding: 52,693,110
• 10 Day Avg. Volume: 1,365,424
• 30 Day Avg. Volume: 919,310
• 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: 1.23
• Enterprise Value/Revenue: 9.81
• Enterprise Value/Gross Profit: 11.60
• Enterprise Value/Ebitda: 195.06
• 1Y Price Target: $683.00
• Price Target Upside: 55.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 30

• Rating: 62 Neutral
• Price Target: $464.00 ▲(5.61% Upside)

HubSpot's overall stock score reflects strong earnings call insights and effective financial management, offset by bearish technical indicators and a challenging valuation. The company's strategic focus on AI and customer growth are positive, but profitability and market momentum remain concerns.

Positive Factors

Financial Guidance

HubSpot's 2025 revenue guidance was raised, providing a positive outlook for the company's financial performance.

Growth Drivers

HubSpot continues to demonstrate consistency in its growth drivers, such as strong customer additions, up-market share gains, and improving expansion within existing customers.

Negative Factors

AI Tools Risk

The main risk identified is the potential for AI tools to pressure seat counts, which might not be fully offset by consumption pricing.

SEO and AI Concerns

There is uncertainty due to declining organic search traffic shifting to AI-powered information retrieval, impacting traditional SEO strategies.

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 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	2.85B	2.63B	2.17B	1.73B	1.30B	883.03M
Gross Profit	2.41B	2.23B	1.82B	1.42B	1.04B	716.07M
EBITDA	143.26M	146.00M	-81.23M	-38.53M	-228.00K	-4.57M
Net Income	-11.92M	4.63M	-176.29M	-112.75M	-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	1.75B	1.55B	1.30B	1.21B
Stockholders Equity	2.07B	1.91B	1.32B	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: Negative
• Last Price: 439.37
• 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 439.37 is below the 20-day moving average (MA) of 499.16, below the 50-day MA of 533.07, and below the 200-day MA of 631.98, indicating a bearish trend. The MACD of -32.44 indicates Positive momentum. The RSI at 30.73 is Neutral, neither overbought nor oversold. The STOCH value of 16.59 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
PYCR	74 Outperform	$4.09B	―	-1.66%	―	15.72%	74.59%
BSY	66 Neutral	$15.70B	66.09	23.69%	0.50%	10.45%	-32.43%
FRSH	66 Neutral	$3.78B	―	-5.23%	―	19.78%	47.51%
BL	64 Neutral	$3.12B	40.52	23.79%	―	7.99%	-28.47%
SPT	63 Neutral	$810.43M	―	-32.50%	―	14.79%	27.52%
HUBS	62 Neutral	$22.65B	7,452.21	-0.65%	―	18.96%	58.78%
Sector *	61 Neutral	$36.30B	7.26	-7.27%	1.97%	7.74%	-7.92%

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.