One-glance verdict
Undervalued
$492.72 our estimate vs market $247.60
Wall Street consensus: $242.86 (-50.7% lower than our fair-value estimate)
50% below our estimate, below the bear case
Fundamentals snapshot
HubSpot, Inc.
HUBS · NYQ · Technology · Software - Application
Current price
$247.60
52-week range
$169.63 - $525.51
Market cap
$12.67B
Balance sheet
Healthy
13.03x Strong cushion
Net cash $1.10B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 10.1% last year.
- Reward Returns 7.9% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
HubSpot, Inc.
HubSpot sells an all-in-one software toolkit that helps other businesses attract new customers and manage their relationships, from sending marketing emails to tracking sales. The company makes most of its money from selling monthly or yearly subscriptions to this platform, which creates a steady stream of recurring revenue (predictable income that comes in at regular intervals). This is important because HubSpot provides a central, easy-to-use system that other companies rely on for their essential customer-facing operations.
How the company got here
HubSpot was founded in 2006 by two MIT graduate students who saw that the way people shop was changing. Instead of being interrupted by traditional advertising, customers were now researching products and services online. They created HubSpot to help businesses, especially smaller ones, attract customers through what they termed "inbound marketing" – creating helpful content that draws people in. A key moment was the launch of their free Customer Relationship Management (CRM) tool in 2014, which attracted a large user base and became a gateway to their paid products.
What it actually does
HubSpot provides a platform of software tools designed to help businesses attract, engage, and delight customers. Think of it as a central hub for a company's marketing, sales, and customer service activities. For example, a business can use HubSpot to build its website, send marketing emails, manage its sales pipeline (the process of tracking potential customers), and handle customer support questions, all in one place. The core of their offering is a free CRM (Customer Relationship Management) software that organizes all of a company's contacts and their interactions with the business.
Subscription
This is HubSpot's main way of making money, accounting for nearly all of its revenue. Businesses pay a recurring fee, usually monthly or annually, to access more advanced features of HubSpot's software platform. The company offers different 'Hubs' tailored to specific business needs, such as Marketing Hub, Sales Hub, and Service Hub. Companies often start with the free tools and then upgrade to paid subscriptions as they grow and need more powerful capabilities, which is a key part of HubSpot's business strategy.
Professional Services
This is a much smaller part of HubSpot's business, making up only a small fraction of its total revenue. This segment includes services like helping new customers get set up on the platform, providing specialized training, and offering consulting to help businesses get the most out of the software. While not a major money-maker on its own, these services are important for ensuring customers are successful with the software, which in turn encourages them to continue their subscriptions.
What management is betting on now
HubSpot is heavily focused on integrating Artificial Intelligence (AI) across its entire platform to automate tasks and provide smarter insights for its users. They are developing AI-powered 'agents' to assist with everything from marketing and sales to customer service. The company is also focused on moving 'up-market' to attract larger business customers, not just the small and mid-sized companies it traditionally served. Another key priority is to get customers to adopt multiple 'Hubs', making the platform more essential to their entire operation and increasing the revenue (the total amount of money a company brings in from its business activities) from each customer.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$148.41M
FY2024 Q4
$181.41M
FY2025 Q1
$148.22M
FY2025 Q2
$148.34M
FY2025 Q3
$177.01M
FY2025 Q4
$233.98M
FY2026 Q1
$183.40M
FY2026 Q2
$203.10M
Revenue
$911.74M
Net income
$43.34M
Diluted EPS
0.86
Operating cash flow
$222.75M
Free cash flow
$203.10M
Fetching…
Sources
Revenue
$881.00M
Net income
$32.55M
Diluted EPS
0.62
Operating cash flow
$198.82M
Free cash flow
$183.40M
Fetching…
Sources
Revenue
$846.75M
Net income
$54.43M
Diluted EPS
1.03
Operating cash flow
$247.43M
Free cash flow
$233.98M
Fetching…
Sources
Revenue
$809.52M
Net income
$16.54M
Diluted EPS
0.31
Operating cash flow
$187.35M
Free cash flow
$177.01M
Fetching…
Sources
Revenue
$760.87M
Net income
$-3.26M
Diluted EPS
-0.06
Operating cash flow
$164.36M
Free cash flow
$148.34M
Fetching…
Sources
Revenue
$714.14M
Net income
$-21.79M
Diluted EPS
-0.42
Operating cash flow
$161.57M
Free cash flow
$148.22M
Fetching…
Sources
Revenue
$703.18M
Net income
$4.98M
Diluted EPS
0.09
Operating cash flow
$194.14M
Free cash flow
$181.41M
Fetching…
Sources
Revenue
$669.72M
Net income
$8.15M
Diluted EPS
0.16
Operating cash flow
$159.54M
Free cash flow
$148.41M
Fetching…
Sources
Is it cheap or expensive?
Fair value $492.72 vs current price $247.60
Wall Street consensus is the average analyst price target: $242.86 (-50.7% lower than our fair-value estimate).
Our most-likely fair value is $492.72 a share — about 99.0% above today's price of $247.60, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $1.1B - more cash than debt. Interest coverage 13.0x.
Net debt
$-1.10B
Interest coverage
13.03x
HubSpot, Inc.'s profit covers its interest bill about 13.0 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
HUBS
BASELINE
HubSpot, Inc.
Total debt $236.91M Interest coverage 13.03x This is the baseline the peer rows are being compared against.
Total debt $7.08B Interest coverage 33.10x +154% vs HUBS Carries about 2.5x more debt cushion than HUBS.
Total debt $8.34B Interest coverage 19.99x +53% vs HUBS Carries about 1.5x more debt cushion than HUBS.
Total debt $8.45B Interest coverage 79.30x +509% vs HUBS Carries about 6.1x more debt cushion than HUBS.
Total debt $1.23B Interest coverage 0.21x -98% vs HUBS Carries about 62.2x less debt cushion than HUBS.
What you should know
The case for and against HUBS
3 Rewards
0 Risks
Rewards
-
Revenue grew 10.1% last year.
-
Returns 7.9% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
88.43x
Forward P/E
14.91x
P/B
7.42x
P/S
3.67x
EV/EBITDA
71.78x
PEG ratio
0.30x
Profitability
How much profit each dollar creates
Gross margin
83.2%
Operating margin
4.9%
Net margin
4.3%
ROE
7.9%
ROA
2.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.14x
Current ratio
1.38x
Quick ratio
1.11x
Total debt
$236.91M
Total cash
$1.34B
Growth
How the business has been compounding
Revenue TTM
$3.45B
Revenue 5Y CAGR
24.6%
EPS TTM
2.80
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$856.37M
Free CF TTM
$707.55M
FCF margin
20.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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