Summary
HubSpot's fiscal 2025 third quarter revenue was $809.5 million, up 20.9% from the prior-year quarter. Gross profit was $676.0 million, up 18.5%, while gross margin was 83.5%, down 1.7 percentage points from a year earlier. GAAP operating income was $11.2 million, a swing to a profit from an operating loss in the prior-year quarter. Operating margin was 1.4%, up 2.8 percentage points. GAAP net income was $16.5 million, up 103.0%, and diluted EPS was $0.31, up 93.8%. For the first nine months of 2025, revenue was $2.28 billion, up 18.7%. The year-to-date GAAP net loss was $8.5 million, a wider loss than the prior-year period, and year-to-date diluted EPS was a loss of $0.16, also a wider loss. The year-to-date operating loss was $40.9 million, a narrower loss than the prior-year period.
Cash generation remained a bright spot. Operating cash flow was $187.4 million in the quarter, up 17.4%, and $513.3 million for the first nine months, up 26.9%. Capital expenditures were $10.3 million in the quarter, down 7.1%, and $39.7 million year to date, up 57.5%. Deferred revenue was $882.1 million, up 22.6% from the prior-year quarter. Remaining performance obligations were $1.40 billion, up 49.0%. Non-GAAP free cash flow was $146.9 million, compared with $129.2 million a year earlier. Non-GAAP operating cash flow was $191.8 million, compared with $164.0 million. Free cash flow and operating cash flow are separate measures, and the company reports both.
Operationally, HubSpot ended the quarter with 278,880 customers, up 17% from September 30, 2024. Average Subscription Revenue Per Customer was $11,578, up 3% as reported. Calculated billings were $804.0 million, up 18% as reported and 19% in constant currency. Non-GAAP operating income was $161.5 million, compared with $125.2 million. Non-GAAP operating margin was 19.9%, compared with 18.7%. Non-GAAP net income was $140.3 million, or $2.66 per diluted share, compared with $116.6 million, or $2.18 per diluted share. Management said the AI strategy is working, with Customer Agent and Prospecting Agent delivering results. At INBOUND, the company released over 200 new product innovations and launched the Loop. Clara Shih joined the board of directors.
Guidance points to continued growth. For the fourth quarter of 2025, revenue is expected to be $828.0 million to $830.0 million, up 18% as reported and 16% in constant currency. Fourth-quarter non-GAAP operating income is expected to be $183.0 million to $184.0 million, representing a 22% operating profit margin. Fourth-quarter non-GAAP net income per common share is expected to be $2.97 to $2.99. For the full year 2025, revenue is expected to be $3.113 billion to $3.115 billion, up 19% as reported and 18% in constant currency. Full-year non-GAAP operating income is expected to be $574.0 million to $575.0 million, representing an 18% operating profit margin. Full-year non-GAAP net income per common share is expected to be $9.60 to $9.62.
Risks remain familiar for a high-growth software company. HubSpot cites its history of losses, its ability to retain existing customers and add new customers, competition, and rapid technological changes. It must develop new products and technologies and differentiate its platform, including artificial intelligence and machine learning. Macroeconomic conditions, foreign currency fluctuations, inflation, tariffs, and regulatory developments on AI could affect results. Gross margin pressure came from higher subscription and hosting costs, amortization of capitalized software development costs, and amortization of acquired technology. The company also said it may break even from a profitability perspective in the next 12 months.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $809.5M | $760.9M | +6.4% | $669.7M | +20.9% |
| Gross profit | $676.0M | $638.7M | +5.8% | $570.4M | +18.5% |
| Gross margin | 83.5% | 83.9% | -0.4 pp | 85.2% | -1.7 pp |
| Research & development | $227.7M | $237.3M | -4.1% | $191.2M | +19.1% |
| Sales & marketing | $355.3M | $339.9M | +4.5% | $309.9M | +14.6% |
| General & administrative | $80.7M | $85.0M | -5.0% | $77.9M | +3.6% |
| Total operating expenses | $664.8M | $663.3M | +0.2% | $580.0M | +14.6% |
| Operating income (loss) | $11.2M | -$24.6M | +145.6% | -$9.6M | +216.6% |
| Operating margin | 1.4% | -3.2% | +4.6 pp | -1.4% | +2.8 pp |
| Net income (loss) | $16.5M | -$3.3M | +607.6% | $8.1M | +103.0% |
| Net margin | 2.0% | -0.4% | +2.5 pp | 1.2% | +0.8 pp |
| Diluted EPS | $0.31 | -$0.06 | +$0.37 | $0.16 | +$0.15 |
| Customers | 278,880 | 267,982 | +4.1% | 238,128 | +17.1% |
Risks
HubSpot must develop and monetize AI features such as Breeze, but competitors may use evolving AI to make its products less competitive or obsolete. The filing notes that next-generation AI solutions require significant resources before market acceptance is known, and AI content can be inaccurate or contain protected material, increasing costs and legal or reputational risk.
The software market is highly competitive and fragmented, and competitors may bundle a customer platform at little or no additional cost or devote greater resources to development and marketing. Competitive pressure could force HubSpot to decrease prices or accept less favorable terms, reducing margins and operating results.
Customers have no obligation to renew subscriptions, substantially all of which are one year or less, and they may renew for lower tiers, fewer contacts or seats, or shorter contract lengths. A decline in renewal rates or customer spending would reduce future revenue, and deferred revenue recognition may delay the impact on reported results.
HubSpot has experienced threats and security incidents related to its data and systems, including an incident that affected it in 2024 and past attempts to exfiltrate customer data. A successful breach could cause reputational harm, customer loss, regulatory fines, litigation, and significant remediation costs.
HubSpot's growth strategy relies on scalable pricing, freemium, and recent seats-based and consumption-based pricing changes, and if these efforts are unsuccessful or benefits are delayed, revenue and operating results may suffer. MD&A reports Average Subscription Revenue per Customer decreased from $11,324 for the nine months ended September 30, 2024 to $11,307 for the nine months ended September 30, 2025, driven by continued purchases of lower-priced Starter products.
Global economic weakness, inflation, tariffs, trade wars, and geopolitical conflicts may reduce customer spending and delay purchasing decisions. The filing specifically notes the U.S. federal government shutdown that began October 1, 2025, and MD&A states that fluctuations in foreign exchange rates and rising inflation have had, and may continue to have, an adverse impact on financial condition and operating results.
HubSpot had 8,824 full-time employees as of September 30, 2025 and 8,246 as of December 31, 2024, and rapid growth plus its hybrid workplace model may strain culture and make it harder to recruit and retain qualified personnel. MD&A reports increased employee-related costs in research and development, sales and marketing, and general and administrative expenses due to increased headcount.
HubSpot's strategic investments in privately held companies and funds are subject to partial or total loss and can cause volatility in results. MD&A reports impairments of $2.1 million in the three months ended September 30, 2025, and $3.7 million in the nine months ended September 30, 2025 compared to $4.1 million in the nine months ended September 30, 2024, while gains on strategic investments decreased to $2.0 million in the nine months ended September 30, 2025 from $18.6 million in the nine months ended September 30, 2024.
SaaS KPIs
All quarters →Average Subscription Revenue Per Customer
Non-GAAP Operating Margin
Non-GAAP Subscription Margin
Customers
Non-GAAP Free Cash Flow
Calculated Billings
Non-GAAP Operating Income
Summary, forecast, risks and KPIs are extracted from HUBSPOT INC's SEC filings for Q3 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.