HubSpot Inc Earnings - Q4 2025 Analysis & Highlights
HubSpot delivered solid Q4 2025 results with 18.2% constant currency revenue growth and strong operating margins, while positioning itself as an AI-native platform for mid-market companies through expanded agent adoption, multi-hub consolidation, and emerging credit-based monetization models.
Key Financial Results
Q4 2025 revenue grew 18.2% year-over-year in constant currency and 20% on an as-reported basis, with full year 2025 revenue reaching $3.1 billion growing 18.2% in constant currency.
Operating margin of 22.6% in Q4 and 18.6% for the full year, representing 4 points improvement in Q4 compared to year-ago period and 1 point improvement for full year.
Net income of $163 million or $3.09 per share in Q4 and $516 million or $9.70 per fully diluted share for full year 2025.
Free cash flow of $209 million or 25% of revenue in Q4 and $595 million or 19% of revenue for full year 2025.
Customer count exceeded 288,000 globally, with 9,800 net new customers added in Q4 and more than 40,000 customers added for the year.
Average subscription revenue per customer was $11,700 in Q4, up 1 point year-over-year in constant currency and up 3 points on an as-reported basis.
Q4 calculated billings were $971 million, growing 20% year-over-year in constant currency and 27% on an as-reported basis, with full year 2025 calculated billings of $3.4 billion growing 19% year-over-year in constant currency.
Net revenue retention increased to 105% in Q4 and 103.5% for full year 2025, up from 101.8% in 2024.
Business Segment Results
Subscription revenue grew 21% year-over-year in Q4 while services and other revenue increased 12% on an as-reported basis.
Domestic revenue grew 17% year-over-year in Q4, while international revenue growth was 19% in constant currency and 24% as reported, representing 49% of total revenue.
Full year subscription revenue grew 18% year-over-year in constant currency and 19% as reported, with services and other revenue growing 16% on an as-reported basis.
Deals over $5,000 in monthly recurring revenue grew 33% in 2025 and deals over $10,000 grew 41%, demonstrating strong upmarket momentum.
Number of customers with 500 or more seats grew fivefold, marking one of the strongest upmarket years.
62% of new Pro+ customers landed with multiple hubs in 2025, with common patterns being Marketing and Sales Hub or Marketing, Sales, Service, Content and Operations.
40% of Pro+ install base by ARR owns four or more hubs, up 6 points year-over-year.
Capital Allocation
Board authorized a $1 billion share repurchase program, described as a clear signal of confidence in the business and growth opportunity ahead.
Cash and marketable securities totaled $1.8 billion at end of December.
Expected CapEx as a percentage of revenue to be 5% to 6% for full year 2026.
Industry Trends and Dynamics
Search traffic is declining as AI-generated answers become the starting point for product and brand discovery, with customers spending time across more channels and AI creating new ways for companies to be found.
YouTube leads grew 68% and newsletter leads grew 53% last year, with HubSpot becoming the most visible CRM in LLM-generated answers.
Marketing is going through the biggest shift in decades, requiring companies to adapt their go-to-market strategies.
AI adoption is accelerating across customer base, with more than 8,000 customers activating Customer Agent and over 10,000 customers activating Prospecting Agent, up 57% quarter-over-quarter.
More than 2,500 customers have activated Data Agent, signaling customers want AI to take on manual work that slows teams down.
Competitive Landscape
HubSpot positioned as the agentic customer platform of choice for scaling companies, with multi-hub adoption becoming the new norm.
Large companies consolidating on HubSpot because the platform delivers the power they want with the ease of use they need.
AI-native companies like Lovable, Browserbase, and squint.ai choosing HubSpot as their platform to drive growth.
Management emphasized that HubSpot's competitive advantage lies in providing customer context rather than just data, with context being shared and powering everything across the platform.
Platform delivers unified customer data, business context, and domain expertise that powers workflows and agents, differentiating from point solutions.
Macroeconomic Environment
No specific macroeconomic headwinds mentioned in prepared remarks, though management noted customers are focused on driving growth and consolidating solutions to lower costs.
Legacy Clearbit business expected to be a 40 basis point headwind to full year 2026 revenue growth, moderating from 60 basis point headwind for 2025.
Growth Opportunities and Strategies
Three-pillar strategy for 2026: making AI work for growth companies, reimagining marketing with new playbook and products, and accelerating upmarket growth.
Closing the gap between AI output and AI outcomes is key to unlocking broad adoption, requiring context with right information at right time.
Launched The Loop, a new growth playbook for the AI era, along with Data Hub providing clean, unified data foundation and Marketing Studio providing AI-powered workspace to plan and create campaigns faster.
AEO tools helping marketers offset declines in traditional search, with customers like Docebo improving visibility in LLMs and seeing 13% of leads from new AI-driven sources.
Doubling down on upmarket momentum in 2026 by aligning dedicated product resources to segment needs and increasing sales capacity to drive growth.
Core Seat adoption emerging as growth lever, with adoption of enriched data jumping from 51% to nearly 70% in Q4 after including Breeze Assistant and enriched company data with buying intent signals.
Credits consumption scaling as customers rely on agents to do more work, with Customer Agent accounting for about 60% of credits consumed in Q4.
Three interconnected layers of AI vision: context layer for customer understanding, action layer with hubs and agents, and coordination layer to connect everything.
Financial Guidance and Outlook
Q1 2026 revenue expected in range of $862-$863 million, up 16% year-over-year in constant currency and 21% on an as-reported basis.
Q1 2026 non-GAAP operating profit expected between $144-$145 million, representing 17% operating profit margin.
Q1 2026 non-GAAP diluted net income per share expected between $2.46-$2.48, assuming 52.5 million fully diluted shares outstanding.
Full year 2026 revenue expected in range of $3.69-$3.7 billion, up 16% year-over-year in constant currency and 18% on an as-reported basis.
Full year 2026 non-GAAP operating profit expected between $736-$740 million, representing 20% operating profit margin.
Full year 2026 non-GAAP diluted net income per share expected between $12.38-$12.46, assuming 51.8 million fully diluted shares outstanding.
Expected net additions in range of 9,000-10,000 customers per quarter with low- to mid-single-digit ASRPC growth in constant currency.
Net revenue retention expected to grow by another 1-2 points year-over-year, driven by continued seat expansion and ramping credit adoption.
Full year 2026 net new ARR growth expected to outpace constant currency revenue growth, supported by upmarket momentum, multi-hub adoption, pricing benefits, Core Seat adoption and credits.
Expected free cash flow of approximately $740 million for full year 2026.
Management confident in ability to reaccelerate and hit 20% revenue growth goal, with all leading indicators pointing in right direction.
AI Adoption and Monetization
Customer Agent handling support tickets with mid-60s resolution rates, with more than 8,000 customers activated and seeing strong pull.
Prospecting Agent helping sales teams research accounts and personalize outreach, with customers booking nearly twice as many meetings compared to last year.
Data Agent automatically enriching customer data, with more than 2,500 customers activated.
Usage-based credits model starting to scale, with Customer Agent accounting for about 60% of credits consumed in Q4 and Data Agent, Prospecting Agent, and intent monitoring each contributing 10-15% of credits consumed.
Breeze Assistant adoption strong, with 50% of Core Seat users having tried and using Breeze Assistant.
Company internally transformed by AI, with 97% of code committed last year done with AI assist and nearly 60% of support handled by AI.
