Summary
HubSpot closed fiscal 2025 with fourth quarter revenue of $846.7 million, up 20.4% from $703.2 million in the prior-year quarter. Full-year revenue reached $3.13 billion, up 19.2% from $2.63 billion. Subscription revenue carried the quarter at $829.0 million, up 21%. For the full year, subscription revenue was $3.06 billion, up 19%. Gross profit rose 18.2% to $709.0 million in the quarter and 17.4% to $2.62 billion for the year. Gross margin slipped to 83.7% from 85.3%, a decline of 1.6 percentage points, and full-year gross margin was 83.8%, down 1.3 percentage points from 85.0%. Cost of revenue rose on subscription and hosting costs and on amortization of capitalized software development costs.
The profit picture changed sharply. Fourth quarter GAAP operating income was $48.2 million against an operating loss of $10.8 million a year earlier, and the operating margin moved to 5.7% from -1.5%, a gain of 7.2 percentage points. For the full year, GAAP operating income was $7.4 million versus a loss of $67.6 million, with operating margin of 0.2% against -2.6%, up 2.8 percentage points. Net income for the quarter was $54.4 million, up 992.2% from $4.98 million, and full-year net income was $45.9 million, up 892.0% from $4.63 million. Full-year diluted earnings per share were $0.86, compared with $0.09. Non-GAAP operating income was $191.0 million in the quarter versus $133.1 million, and $581.9 million for the year versus $460.2 million, with non-GAAP operating margins of 22.6% and 18.6% against 18.9% and 17.5%. Non-GAAP net income was $162.5 million, or $3.09 per diluted share, compared with $2.32 a year earlier.
Cash generation stayed strong. Fourth quarter operating cash flow was $247.4 million, up 27.4% from $194.1 million, and full-year operating cash flow was $760.7 million, up 27.1% from $598.6 million. Capital expenditures were $13.5 million in the quarter, up 5.7%, and $53.2 million for the year, up 40.1%. Non-GAAP free cash flow was $209.4 million in the quarter versus $163.0 million, and $594.9 million for the year versus $488.1 million. Deferred revenue, current portion, reached $1.00 billion, up 28.1% from $784.3 million, and remaining performance obligations were $1.60 billion, up 60.0% from $1.00 billion. Customers totaled 288,706 at December 31, 2025, up 16%, average subscription revenue per customer was $11,683 in the quarter, up 3%, and calculated billings were $971.4 million, up 27% as reported and 20% in constant currency. Cash, cash equivalents, short-term and long-term investments stood at $1.8 billion.
Guidance points to continued growth with margin expansion. For the first quarter of 2026, HubSpot expects revenue of $862.0 million to $863.0 million, up 21% as reported and 16% in constant currency, non-GAAP operating income of $144.0 million to $145.0 million at a 17% margin, and non-GAAP net income per share of $2.46 to $2.48. For the full year 2026, revenue guidance is $3.69 billion to $3.70 billion, up 18% as reported and 16% in constant currency, with non-GAAP operating income of $736.0 million to $740.0 million at a 20% margin and non-GAAP net income per share of $12.38 to $12.46. The board authorized a $1.0 billion share repurchase program on February 7, 2026, running for up to 24 months, and the company entered a $500 million revolving credit facility on February 10, 2026.
Risks remain familiar. The company cites its history of losses, the need to retain existing customers and add new ones, significant competition, rapid technological change, and regulatory developments around artificial intelligence and machine learning. Macroeconomic conditions, foreign currency fluctuations, inflation, and tariffs could also weigh on results. Interest income fell 20% to $66.2 million for 2025 on lower investment balances and yields. Restructuring charges tied to vacated facilities were $4.0 million in 2025, and management expects $8 million to $9 million of incremental charges plus roughly $27 million of cash payments through 2027. Operating lease obligations totaled $313.4 million and vendor commitments $494.7 million at year end. Management also flagged a reasonable possibility that some or all of the valuation allowance on deferred tax assets could be released within the next 12 months, which would lower income tax expense.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $846.7M | $809.5M | +4.6% | $703.2M | +20.4% |
| Gross profit | $709.0M | $676.0M | +4.9% | $599.8M | +18.2% |
| Gross margin | 83.7% | 83.5% | +0.2 pp | 85.3% | -1.6 pp |
| Research & development | $220.8M | $227.7M | -3.0% | $213.7M | +3.3% |
| Sales & marketing | $357.5M | $355.3M | +0.6% | $314.8M | +13.6% |
| General & administrative | $81.7M | $80.7M | +1.1% | $81.0M | +0.9% |
| Total operating expenses | $660.8M | $664.8M | -0.6% | $610.6M | +8.2% |
| Operating income (loss) | $48.2M | $11.2M | +329.4% | -$10.8M | +546.6% |
| Operating margin | 5.7% | 1.4% | +4.3 pp | -1.5% | +7.2 pp |
| Net income (loss) | $54.4M | $16.5M | +229.1% | $5.0M | +992.2% |
| Net margin | 6.4% | 2.0% | +4.4 pp | 0.7% | +5.7 pp |
| Diluted EPS | $1.02 | $0.31 | +$0.71 | $0.10 | +$0.92 |
| Customers | 288,706 | 278,880 | +3.5% | 247,939 | +16.4% |
Risks
Risk Factors state competition may intensify from competitors using evolving AI, generic LLMs, generative AI and general-purpose agents, and that products like Breeze require significant investment before market acceptance is known. MD&A highlights continued AI investments in Breeze, AI-powered agents and AI-enabled tools.
The company had 8,882 full-time employees as of December 31, 2025, up from 8,246 as of December 31, 2024, and faces competition for software developers with AI and machine learning backgrounds. It also relies on key employees including co-founder Dharmesh Shah and CEO Yamini Rangan.
The filing states the company and third-party vendors have experienced threats and security incidents, and attempts to exfiltrate customer data have occurred in the past and could occur in the future. It also notes AI may enhance attack tactics.
The filing says consumption-based pricing strategies are novel and evolving, and customer flexibility in timing of use could reduce predictability and lead to lower usage than expected. MD&A notes revenue from usage and consumption-based models.
Substantially all subscriptions are one year or less, and customers may renew for lower tiers, fewer contacts or seats, or shorter contract lengths. Net Revenue Retention was 103.5% in 2025, up from 101.8% in 2024, but the filing warns renewal rates may decline or fluctuate.
Risk Factors cite inflation, interest rates, tariffs, trade wars, and the U.S. federal government shutdown from October 1, 2025 through November 12, 2025. MD&A says macroeconomic conditions including foreign currency, inflation, recession risks and tariffs may adversely impact results.
Growth strategy involves further international expansion, exposing it to data security regulations, labor laws, tariffs, trade restrictions, currency fluctuations, and geopolitical conflicts. MD&A notes foreign currency translation affected Average Subscription Revenue per Customer.
The company holds strategic investments in privately held companies and funds, with risk of partial or total loss. It recorded $5.7 million impairment of strategic investments in 2025 compared to $5.3 million in 2024, and gains on strategic investments decreased to $5.0 million in 2025 from $21.2 million in 2024.
On February 10, 2026, the company entered a $500 million senior secured revolving credit facility secured by substantially all assets, with a consolidated leverage ratio covenant when not investment-grade. Failure to comply could accelerate debt.
Gross margin was 83.8% for FY2025 year to date, down 1.3 pp from 85.0% in FY2024, and 83.7% in Q4 FY2025, down 1.6 pp from 85.3% in Q4 FY2024. MD&A expects gross margins to decline slightly over time due to data center and AI investments.
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
Summary, forecast, risks and KPIs are extracted from HUBSPOT INC's SEC filings for Q4 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.