Customer platform provider HubSpot (NYSE:HUBS) reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 20.4% year on year to $846.7 million. Guidance for next quarter’s revenue was optimistic at $862.5 million at the midpoint, 2.9% above analysts’ estimates. Its non-GAAP profit of $3.09 per share was 3.4% above analysts’ consensus estimates.
Is now the time to buy HUBS? Find out in our full research report (it’s free for active Edge members).
HubSpot (HUBS) Q4 CY2025 Highlights:
- Revenue: $846.7 million vs analyst estimates of $829.9 million (20.4% year-on-year growth, 2% beat)
- Adjusted EPS: $3.09 vs analyst estimates of $2.99 (3.4% beat)
- Adjusted Operating Income: $191 million vs analyst estimates of $183.9 million (22.6% margin, 3.9% beat)
- Revenue Guidance for Q1 CY2026 is $862.5 million at the midpoint, above analyst estimates of $838.2 million
- Adjusted EPS guidance for the upcoming financial year 2026 is $12.42 at the midpoint, beating analyst estimates by 8.3%
- Operating Margin: 5.7%, up from -1.5% in the same quarter last year
- Annual Recurring Revenue: $3.30 billion vs analyst estimates of $3.33 billion (20% year-on-year growth, miss)
- Billings: $971.4 million at quarter end, up 26.6% year on year
- Market Capitalization: $10.97 billion
StockStory’s Take
HubSpot’s Q4 results were shaped by strong demand for its customer platform and continued growth among upmarket clients. Management highlighted that multihub adoption and the ramp-up of AI-powered solutions, particularly customer-facing agents, played central roles in driving customer additions and higher engagement. CEO Yamini Rangan pointed to accelerated adoption of HubSpot’s new pricing model and increased seat purchases as further contributors to quarterly momentum, noting, “We saw customers buy more Sales Hub seats, Service Hub seats, and Core Seats throughout the year.”
Looking forward, HubSpot’s guidance reflects confidence in sustained growth through expanded AI integration, ongoing upmarket momentum, and new monetization levers such as Core Seat and credits adoption. Management is focused on making AI actionable for mid-market companies and sees further cross-sell opportunities through diversified marketing channels. Rangan explained, “Our strategy is clear, and focused on making AI work for growth companies, reimagining marketing, and accelerating upmarket growth with a platform that delivers both power and simplicity.”
Key Insights from Management’s Remarks
Management attributed Q4 performance to successful multihub and upmarket expansion, higher AI agent adoption, and strategic pricing changes, while emphasizing new credit-based monetization as an emerging lever.
-
AI agent traction: HubSpot reported rapid adoption of customer-facing AI agents, such as Customer Agent and Prospecting Agent, which are now delivering measurable outcomes in support and sales activities for thousands of customers. More than 8,000 customers activated Customer Agent last year, and Prospecting Agent activations rose 57% quarter over quarter.
-
Upmarket momentum: The company saw significant growth in deals with larger organizations, with deals over $5,000 in monthly recurring revenue increasing by 33%, and customers with 500 or more seats growing fivefold. Management credited years of focused product investment and a broader ecosystem as reasons for this upmarket success.
-
Multihub adoption increase: Management observed that 62% of new Pro Plus customers landed with multiple hubs, and 40% of the installed base by annual recurring revenue now owns four or more hubs. This trend supports higher cross-sell rates and deeper platform engagement.
-
Pricing model transition: Nearly 90% of legacy customers have now migrated to the new pricing model, which lowered entry barriers and removed seat minimums. The shift has driven higher net customer additions and provided a tailwind to seat expansion.
-
Emerging monetization levers: The ramp-up of Core Seat adoption—offering enhanced AI features and enriched data—and increased credit consumption for AI agents are expected to become significant contributors to future growth. Management highlighted that credits for agents like Customer Agent are starting to scale, with some customers allocating notable budgets to these features.
Drivers of Future Performance
Management expects future growth to be driven by deeper AI integration, continued upmarket gains, and expanded multihub adoption, while monitoring emerging risks and evolving customer needs.
-
AI as a growth catalyst: HubSpot’s focus on embedding AI throughout its platform is intended to make AI actionable and context-aware for mid-market businesses. Management sees rising adoption of agent-based workflows and predicts that both Core Seat usage and consumption-based credits will accelerate, providing new avenues for monetization.
-
Sustained upmarket and multihub momentum: The company expects ongoing expansion among larger customers and further cross-selling of additional hubs—such as Data Hub and Service Hub—driven by demand for unified data and broader platform capabilities. These trends are anticipated to support higher net revenue retention and overall growth.
-
Channel diversification and macro risks: HubSpot is adapting to shifts in digital marketing, with increased lead generation from sources like YouTube and newsletters in response to declining organic search traffic. Management acknowledged that macroeconomic conditions and evolving buyer behaviors remain potential headwinds, but believes that product innovation and diversified channel strategies will help mitigate these risks.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) the pace of AI agent adoption and the scaling of credit-based monetization, (2) cross-sell and multihub expansion rates among both new and existing customers, and (3) the company’s ability to sustain upmarket gains and maintain high net revenue retention. The impact of channel diversification and execution of new product rollouts will also be key metrics to track.
HubSpot currently trades at $210.75, in line with $209.41 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.