Start here if you're new
what it is
HubSpot sells subscription software that helps businesses find customers, track leads, and turn marketing into sales.
how it gets paid
Last year Hubspot made $3.1B in revenue. Marketing Hub was the main engine at $1.02B, or 33% of sales.
why it's growing
Revenue grew 19.2% last year. Revenue was $846.75M in the quarter, and management said subscription revenue rose on stronger starter-product demand.
what just happened
HubSpot's latest quarter beat on profit, with EPS at $1.04 versus a $0.30 estimate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
32.5x trailing p/e — you're paying up for this one
39.0% return on capital — every dollar works hard here
xvary composite: 41/100 — below average
What they do
HubSpot sells subscription software that helps businesses find customers, track leads, and turn marketing into sales.
HubSpot had 247,939 customers across more than 135 countries as of 12/31/24. That scale matters because switching costs → leaving is annoying and expensive → so your data, workflows, and sales process stay put. The model is subscription-based, and gross margin was 83.8%, which means most of each new dollar drops through before overhead gets in the way.
How they make money
$3.1B
annual revenue · their business grew +19.2% last year
Marketing Hub
$1.02B
+21.0%
Sales Hub
$0.78B
+19.2%
Service Hub
$0.56B
+18.0%
Content Hub
$0.40B
+16.0%
Operations & Commerce
$0.34B
+12.0%
The products that matter
cloud-based marketing, sales, and crm software
Marketing Hub & CRM
$3.1B revenue · +19.2% growth
It's effectively the whole company today: a $3.1B software platform that grew 19.2% last year; trailing net margin lands in the high‑teens on recent data (~15–18% depending on period and adjustments).
entire business
Key numbers
39.0%
return on capital
Return on capital → profit earned on money put into the business → so HubSpot turns investment into earnings far better than most software peers.
83.8%
gross margin
Gross margin → money left after delivering the product → so the software itself is extremely profitable before overhead.
247,939
customers
That many customers gives HubSpot a wide base for upsells, price increases, and product bundling.
16.0%
projected sales growth
The business is still growing fast, but slower than its 25.0% past rate, which changes how much investors should pay.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- net profit margin 18.0% — keeps 18 cents of every dollar in revenue
- return on equity 39% — $0.39 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in HUBS 3 years ago → it's now worth $9,880.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
HubSpot's latest quarter beat on profit, with EPS at $1.04 versus a $0.30 estimate.
Revenue was $846.75M in the quarter, and management said subscription revenue rose on stronger starter-product demand. Q4'25 revenue grew 20% as reported and 18% in constant currency.
$846.75M
quarter revenue
$1.04
eps
83.8%
gross margin
the number that mattered
The 246.67% EPS surprise mattered because HubSpot is trying to prove it can grow fast without spending every extra dollar.
-
hubspot has acquired xfunnel, a startup that specializes in answer engine optimization (aeo).xfunnel helps businesses appear in ai-generated responses across large language models (llms) such as chatgpt, claude, and perplexity.
-
xfunnel’s comprehensive platform will be integrated natively into hubspot’s marketing products.this will help to provide marketers with new insights into how their brand appears across ai tools and clear steps to improve their visibility.
-
hubspot’s top line is performing well.
-
subscription revenues have increased, thanks to higher demand for the company’s starter products.in the most recent quarter, hubspot added over 10,900 net new customers, bringing the total to more than 278,000 internationally (newer than the ~247,939 customer count shown in key numbers above— same story, different snapshot date).
-
management has announced the launch of two new products.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is smb customer-add deceleration. HubSpot is a one-engine software story, so if new customers slow, the market will notice fast.
med
customer growth slows
HubSpot added more than 10,900 net new customers in the latest quarter and now serves more than 278,000. That pace matters because essentially the entire $3.1B business sits on the same subscription engine.
If those adds cool, the $4B revenue expectation becomes the first problem and the premium multiple becomes the second.
med
valuation stays expensive
The stock trades at 32.5x trailing earnings after underperforming the market by $4,890 on a $10,000 starting investment over three years. That's the awkward combo: weak stock action, still not a cheap stock.
HubSpot does not need a collapse to disappoint you. It just needs growth to look more ordinary.
med
competition hits pricing
CRM and marketing software are crowded categories. HubSpot's 15.0% net margin and 21.0% operating margin give it room, but not unlimited room, if larger rivals lean harder into smb customers.
Any pricing pressure would show up first in margin expansion stalling, then in the story changing from growth-plus-profit to just growth.
med
ai search shift proves harder than expected
The xfunnel acquisition tells you HubSpot sees a real change in how buyers discover brands. That is smart. It also tells you management thinks traditional marketing workflows are moving under its feet.
If the integration flops, HubSpot still has the core business. If ai discovery changes faster than the product does, the starter-product funnel could get less efficient.
Put it together and the math is straightforward: a $3.1B business growing 19.2% can support a premium. A slower version of that same business probably cannot.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
net new customers
More than 10,900 were added in the latest quarter. This is the heartbeat of the story.
trend
margin follow-through
FY2025 EPS climbed each quarter from $1.78 to $2.97. You want to see that operating leverage keep showing up.
risk
xfunnel integration
Watch whether the answer-engine features become a real product advantage or just a clever acquisition headline.
calendar
the path to $4B
The fy2026 revenue estimate is $4B. Each quarter either keeps that path intact or tells you the multiple is living on borrowed time.
Analyst rankings
short-term outlook
bottom 5%
Momentum score 5 is the lowest rating. In human-speak, analysts expect this stock to lag badly in the near term.
risk profile
average
Stability score 3 means roughly average risk. Not a bunker stock, not a meltdown candidate.
chart momentum
average
Technical score 3 says the chart is not sending a strong signal either way. The fundamentals have to do the selling here.
earnings predictability
35 / 100
Low predictability means quarterly results can move around more than you would like. Translation: you should expect a bumpier ride than the average software name.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 387 buyers vs. 371 sellers in 3q2025. total institutional holdings: 46.9M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$235
$535
$312
current price
$385
target midpoint · +23% from current · 3-5yr high: $500 (+60% · 12% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive