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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on HUBS

HubSpot's recent performance faced negative drivers, including a lofty valuation, which could be part of the problem despite beating expectations in Q3 2025. Analysts' forecasts were cut following Q3 results, and some institutional investors, such as AGF Management Ltd., trimmed their stock holdings by 99.9%. However, others like ABN Amro Investment Solutions took a new position in the company. The software maker's high gross margins, recurring revenue, and debt-free balance sheet provide downside protection, but macroeconomic weakness, especially SMB sensitivity, remains a risk.

1.c. Company Highlights

2. HubSpot's Q3 2025 Earnings: A Beat on Revenue and EPS

HubSpot reported Q3 2025 revenue of $810 million, growing 18.4% year-over-year in constant currency, and an operating margin of 20%. The company's EPS came in at $2.66, beating estimates of $2.58. Revenue growth was driven by platform consolidation, multi-hub adoption, and upmarket momentum, with larger companies choosing HubSpot for its power, sophistication, and speed to value. Deals over $5,000 monthly recurring revenue grew 35% year-over-year.

Publication Date: Nov -08

📋 Highlights
  • Revenue Growth: Q3 2025 revenue increased 18.4% YoY to $810M (constant currency), with international revenue up 25% as reported.
  • Operating Margin: Achieved 20% margin, reflecting operational efficiency amid growth, driven by platform consolidation and upmarket momentum.
  • Upmarket Deals: Deals over $5,000 MRR grew 35% YoY, fueled by larger enterprises adopting HubSpot for AI integration and unified CRM solutions.
  • Agent Adoption: Customer Agent reached 6,200 clients (+48% QoQ), Prospecting Agent 6,400 (+94% QoQ), and Data Agent 1,700 users in Q3.
  • Customer Growth: Added 10,900 net new customers, totaling 279,000, with 49% of revenue now from international markets (up 25% as reported).

Revenue Growth Drivers

The company's results were powered by three key drivers: platform consolidation, multi-hub adoption, and upmarket momentum. HubSpot is winning as a unified customer platform, with companies consolidating their go-to-market stacks on the platform to reduce total cost of ownership and accelerate AI innovation. The upmarket segment is performing well, with larger companies driving growth.

AI Innovation and Adoption

AI innovation took center stage this quarter, with over 200 new updates and products launched at INBOUND. HubSpot's strategy is to embed AI into hubs its customers use every day, build agents that do work, and create breeze assistant and connectors that turn data into insights. Customer adoption of HubSpot agents is strong, with customer agent having over 6,200 customers, up 48% from last quarter.

Valuation and Growth Expectations

With a P/S Ratio of 6.99 and an expected revenue growth rate of 16.1% next year, the market is pricing in a certain level of growth for HubSpot. The company's EV/EBITDA ratio is 203.0, indicating a high valuation relative to its earnings. However, with a strong track record of revenue growth and a focus on AI innovation, HubSpot may be well-positioned to drive future growth.

Guidance and Outlook

For the fourth quarter, HubSpot expects total as-reported revenue to be in the range of $828 million to $830 million, up 16% year-over-year in constant currency and 18% on an as-reported basis. Non-GAAP operating profit is expected to be between $183 million and $184 million, representing a 22% operating profit margin. The company's guidance suggests a continued strong performance in the near term.

3. NewsRoom

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Groupe la Francaise Takes $3.47 Million Position in HubSpot, Inc. $HUBS

Dec -04

Source: defenseworld.net

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HubSpot Stock Could Plunge Another 35% To $260

Dec -03

Source: forbes.com

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Fisher Asset Management LLC Decreases Position in HubSpot, Inc. $HUBS

Dec -03

Source: defenseworld.net

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HubSpot, Inc. (NYSE:HUBS) Given Average Recommendation of “Moderate Buy” by Analysts

Nov -29

Source: defenseworld.net

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Capital Fund Management S.A. Grows Holdings in HubSpot, Inc. $HUBS

Nov -28

Source: defenseworld.net

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HubSpot, Inc. (HUBS) Presents at Wells Fargo's 9th Annual TMT Summit Transcript

Nov -20

Source: seekingalpha.com

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Alberta Investment Management Corp Has $3.79 Million Stock Position in HubSpot, Inc. $HUBS

Nov -17

Source: defenseworld.net

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HubSpot: Attractive Valuation For Leading Software Company

Nov -17

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.45%)

6. Segments

Subscription

Expected Growth: 12.43%

HubSpot's subscription growth of 12.43% is driven by increasing adoption of its customer relationship management (CRM) platform, expansion into new markets, and growing demand for digital marketing and sales tools. Additionally, the company's focus on innovation, customer success, and strategic partnerships have contributed to its rapid growth.

Professional Services and Other

Expected Growth: 13.43%

HubSpot's Professional Services and Other segment growth of 13.43% is driven by increasing demand for its customer success services, expansion of its partner ecosystem, and growing adoption of its platform by large enterprises. Additionally, the company's strategic investments in emerging technologies such as AI and machine learning are also contributing to the segment's growth.

7. Detailed Products

HubSpot CRM

A customer relationship management (CRM) platform that enables businesses to manage contacts, track interactions, and analyze customer behavior.

Marketing Hub

An all-in-one marketing, sales, and customer service platform that helps businesses attract, engage, and delight customers.

Sales Hub

A sales platform that provides tools for sales teams to manage contacts, track interactions, and close more deals.

Service Hub

A customer service platform that helps businesses provide excellent customer experiences through ticketing, knowledge base, and customer feedback tools.

Content Management System (CMS) Hub

A content management system that enables businesses to create, manage, and optimize website content for better customer experiences.

Operations Hub

A data integration and automation platform that helps businesses synchronize data, automate workflows, and create custom applications.

8. HubSpot, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

HubSpot's products and services are highly specialized and integrated, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative marketing, sales, and customer service software, HubSpot's strong brand and customer loyalty mitigate this power.

Bargaining Power Of Suppliers

HubSpot has a diverse supplier base, and its suppliers have limited bargaining power due to the company's strong market position and negotiating power.

Threat Of New Entrants

While there are barriers to entry in the marketing, sales, and customer service software market, new entrants can still emerge, especially with the rise of cloud-based technologies and open-source platforms.

Intensity Of Rivalry

The marketing, sales, and customer service software market is highly competitive, with established players like Salesforce, Marketo, and Pardot, as well as new entrants, creating a high level of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.37%
Debt Cost 3.95%
Equity Weight 62.63%
Equity Cost 11.81%
WACC 8.87%
Leverage 59.68%

11. Quality Control: HubSpot, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ANSYS

A-Score: 5.3/10

Value: 0.7

Growth: 6.3

Quality: 8.5

Yield: 0.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Snowflake

A-Score: 4.6/10

Value: 4.0

Growth: 7.0

Quality: 3.7

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Coinbase

A-Score: 4.5/10

Value: 1.0

Growth: 6.9

Quality: 8.8

Yield: 0.0

Momentum: 8.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Datadog

A-Score: 4.4/10

Value: 0.0

Growth: 9.7

Quality: 5.7

Yield: 0.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
HubSpot

A-Score: 4.1/10

Value: 2.5

Growth: 8.8

Quality: 5.7

Yield: 0.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
MicroStrategy

A-Score: 3.9/10

Value: 5.3

Growth: 0.6

Quality: 7.7

Yield: 0.0

Momentum: 8.0

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

377.04$

Current Price

377.04$

Potential

-0.00%

Expected Cash-Flows