HubSpot Q4 Earnings Beat Estimates on Strong Revenue Growth

HubSpot, Inc. HUBS reported impressive fourth-quarter 2025 results, with both the top and bottom lines beating the Zacks Consensus Estimate.

The software-as-a-service vendor reported a top-line expansion year over year, backed by growing user engagement across all segments. The integration of advanced AI tools, which include state-of-the-art features, such as AI assistance, AI agents, AI insights and ChatSpot, across its entire product suites and customer platform is driving more value to customers. However, in the premium market, the company faces competition from Salesforce and Microsoft. Management’s focus on expanding the AI portfolio to gain a competitive edge can bring long-term benefits but put pressure on margins in the near term.

Net Income

On a GAAP basis, the company recorded a net income of $54.4 million or $1.04 per share compared with a net income of $4.9 million or 9 cents per share in the year-ago quarter.
 
Non-GAAP net income was $162.5 million or $3.09 per share, up from $124.9 million or $2.42 per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate of $2.99 per share.

For 2025, the company reported a GAAP net income of $45.9 million or 86 cents per share compared to a net income of $4.6 million or 9 cents per share in 2024. Non-GAAP net income was $516 million or $9.7 per share compared to $434.1 million or $8.12 per share in 2024.

Revenues

Quarterly revenues improved to $846.7 million from $703.2 million reported in the year-ago quarter. The company is witnessing steady multi-hub adoption from enterprise customers in the premium market. Healthy net customer additions in the starter edition, along with pricing optimization, drove net sales in the lower tier of the market spectrum. Moreover, customers using free editions are increasingly opting for premium plans owing to greater time to value and seamless AI-powered onboarding. The top line beat the Zacks Consensus Estimate of $830 million.

For 2025, the company reported revenues of $3.13 billion, up 19% year over year.

HubSpot added more than 9,800 net new customers during the quarter, which increased the total customer count to 288,706, up 16% year over year.

Subscription revenues rose to $829 million, up 21% on a reported basis year over year. The figure beat the Zacks Consensus Estimate of $811.55 million. Average subscription revenues per customer increased 3% year over year to $11,700.

Professional services and other revenues totaled $17.8 million, up 12% on a reported basis year over year. The top line beat the Zacks Consensus Estimate of $17.71 million.

Other Details

Gross profit in the quarter was $709.1 million, up from $599.8 million in the year-ago quarter. Operating income, on a GAAP basis, was $48.23 million against a net loss of $10.8 million in the year-ago quarter. Non-GAAP operating income improved to $191 million from $133.07 million, with respective margins of 22.6% and 18.9%.

Cash Flow & Liquidity

In the fourth quarter of 2025, the company generated $247.4 million in cash from operating activities compared with $194.1 million cash generated in the year-ago quarter. For 2025, the company generated $760.7 million in operating cash compared to $598.6 million in 2024.

As of Dec 31, 2025, HubSpot had $882.2 million in cash and cash equivalents, with $89.3 million in other long-term liabilities compared to respective tallies of $512.7 million and $55.6 million in 2024.

Outlook

For the first quarter of 2026, HubSpot forecasts revenues in the range of $862 million to $863 million, up 21% at constant currency. The company expects non-GAAP net income per share in the band of $2.46-$2.48. The anticipated range for non-GAAP operating income is $144-$145 million, indicating a 17% operating profit margin.

For 2026, management estimates revenues between $3.69 billion and $3.7 billion, up 18% year over year on a reported basis. Non-GAAP operating income is expected to be in the range of $736-$740 million, representing an 20% operating profit margin. Non-GAAP net income per share is likely to be in the range of $12.38-$12.46.

Zacks Rank

HubSpot currently has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Universal Display OLED is scheduled to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting growth of 4.92% from the year-ago reported figure.

Universal Display has a long-term earnings growth expectation of 6.61%. Universal Display delivered an average earnings surprise of 9.25% in the last four reported quarters. 

Keysight Technologies, Inc. KEYS is scheduled to release first-quarter fiscal 2026 earnings on Feb. 23. The Zacks Consensus Estimate for earnings is pegged at $1.99 per share, suggesting growth of 9.34% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 13.32%. Keysight delivered an average earnings surprise of 4.24% in the last four reported quarters.

Akamai Technologies, Inc. AKAM is slated to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.42% growth from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 5.96%. Akamai delivered an average earnings surprise of 10.46% in the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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