HubSpot, Inc.

Overview

HubSpot, Inc. provides a cloud-based, agentic customer platform for marketing, sales, and customer service teams. The platform combines a Smart CRM with AI-powered engagement hubs and a connected ecosystem of integrations, templates, partners, community content, and an educational academy. The AI-powered hubs cover Marketing, Sales, Service, Operations, Content, and Commerce, with the CRM serving as the foundational data layer and governance mechanism.

The company operates a single operating segment and generates revenue primarily from subscriptions to its cloud-based software, plus professional services and other revenue (onboarding, training, consulting, Payments).

Product and platform

• Customer platform architecture
  • AI-powered agents and engagement hubs: Marketing, Sales, Service, Operations, Content, Commerce
  • Smart CRM with unified customer data
  • Marketplace with 2,000+ integrations and applications
  • Tools for marketing, sales, service, data management, and AI-enabled content creation
• Revenue streams
  • Subscription revenue for access to online software products and support
  • Professional services and other revenue: onboarding, training, consulting services, Payments
• Revenue recognition and cost structure are described in the company notes, including capitalization of software development costs and related amortization patterns

Key financial and operating metrics (calendar year 2025)

• Customers (end of year): 288,706 (2025); 247,939 (2024); 205,091 (2023)
• Average Subscription Revenue per Customer: $11,414 (2025); $11,343 (2024); $11,384 (2023)
• Net Revenue Retention: 103.5% (2025); 101.8% (2024); 103.0% (2023)
• Revenue (total): $3,131,266 thousand (3.131 billion) in 2025
  • Subscription revenue: $3,063,917 thousand
  • Professional services and other: $67,349 thousand
• Gross profit: $2,622,779 thousand
• Gross margin: 84%
• Operating expenses: $2,615,400 thousand
  • Research & Development: $905,943 thousand
  • Sales & Marketing: $1,379,376 thousand
  • General & Administrative: $326,045 thousand
  • Restructuring: $4,036 thousand
• Income (loss) from operations: $7,379 thousand
• Other income (expense): $62,084 thousand
  • Interest income: $66,218 thousand
  • Interest expense: $(876) thousand
  • Other (expense) income, net: $(3,258) thousand
• Income before taxes: $69,463 thousand
• Income tax expense: $(23,552) thousand
• Net income: $45,911 thousand (approximately $45.9 million)
• Net income per share (2025): basic $0.88; diluted $0.86
• Weighted-average shares (2025): basic 52,455; diluted 53,194

Geographic and asset footprint

• Revenue by region (2025, in thousands): Americas $1,872,171; Europe $1,010,968; Asia Pacific $248,127
• International revenue share: 48% of total revenue in 2025
• Long-lived assets by region (as of 12/31/2025, in thousands): Americas $238,095; Europe $95,798; Asia Pacific $8,797; Total $342,690
• Product and service scale is supported by a large hosted environment and investments in data center infrastructure (capitalized software development and related amortization are reflected in the statements)

Capital structure and liquidity

• Cash and cash equivalents: $882,242 thousand at 12/31/2025
• Revolving credit facility: five-year senior secured revolving facility up to $500 million entered into on 2/10/2026; no outstanding borrowings as of the filing date
• Share repurchase activity
  • 2025 Share Repurchase Program: up to $500 million, completed in 2025 (1.0 million shares repurchased at an average price of $501.67 per share)
  • 2026 Share Repurchase Program: up to $1.0 billion over 24 months (remaining capacity $1.0 billion as of filing date)
• Convertible notes: 2025 Convertible Senior Notes were settled in 2025; remaining principal repaid at maturity in 2025
• Letters of credit outstanding: approximately $2.7 million as of 12/31/2025
• The company states it has sufficient working capital to support operations for at least the next 12 months

Growth and strategic focus

• Continued investment in product functionality, including AI capabilities, data center hosting, and platform scale
• Growth drivers: expanding the customer base, increasing spend per customer (Average Subscription Revenue per Customer), and expanding the feature set and integrations
• Ongoing evaluation of regulatory and tax developments, currency effects, macroeconomic conditions, and new accounting standards

Summary takeaways

• HubSpot is a single-segment SaaS platform provider that combines a CRM with AI-powered engagement hubs and an extensive ecosystem to support marketing, sales, and customer service teams.
• The company monetizes primarily through subscriptions and professional services, with a growing customer base (over 288k customers in 2025) and scale revenue of $3.13B in 2025.
• Profitability metrics for 2025 include net income of about $45.9M and an 84% gross margin.
• International revenue represents roughly half of total revenue, reflecting a broad global footprint.
• The company maintains a substantial cash position and active capital allocation programs (share repurchases and a revolving credit facility) to support liquidity and strategic initiatives.