HUBS NYSE Russell 1000 Earnings call

HubSpot (HUBS) · Q2 2026 results and valuation

Share price: $202.88 · 2026-11-11

HubSpot provides an agentic customer platform that includes a CRM, marketing, sales, and customer service tools. The company serves mid-market business-to-business customers in more than 135 countries. The platform is offered on a subscription basis. Source: 10-K annual report (2026-02-11)

Results Q2 2026 vs Q1 2026 · previous quarter · published 5 Aug 2026 and 7 May 2026

Net income up 33.1% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.

1 · Numbers

+33.1%

Net income vs Q1 2026

Outlook given

Net income 43.3M vs 32.6M

Revenue +3.5%

Why Against the same quarter last year (turned to a profit), net income rose primarily due to a more than 4-point reduction in stock-based compensation expense as a percentage of revenue and a disciplined approach to headcount spend, partially offset by AI costs.

2 · How management spoke

Typical

Less upbeat than 56% of company calls

Answers to analysts: restrained, in line with the script.

Similar to last call.

3 · What stood out

The HubSpot Board of Directors authorized an additional share repurchase program of up to $1 billion.

Valuation

Is HubSpot undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 20.0% growth a year (3-year revenue growth), the model's fair value is $718.25 a share — the stock trades 72% below it. Today's price assumes 1.8% growth a year.

Current price

$202.88

close of 2026-11-11

Market implies growth of i

+1.8% for 10 yrs

Fair value / share

$718.25

Buy below

$538.69

Price vs fair value

Undervalued 72%

Price vs buy-below price

Undervalued 62%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

Full-year 2026 total-as-reported revenue is now expected to be between $3.678 billion and $3.686 billion, up 18% year-over-year on an as-reported basis.
Figure

Data agent has over 16,000 customers activated, up 80% quarter-over-quarter.
Guidance

HubSpot expects to deliver 2 to 3 points of operating margin expansion in 2027, a meaningful step-up that reflects the operating leverage it is building as an AI-first company.
Guidance

HUBS guidance contemplates 2 points of non-GAAP operating margin leverage this year.
Figure

Its Board of Directors has authorized an additional share repurchase program of up to $1 billion, reflecting the confidence HubSpot has in its business and the growth opportunity ahead.

4 more

Guidance

The company expects to maintain the trends seen in Q2 for the second half of the year as reflected in its guidance.
Key theme

SMB adoption is still in pretty early stages.

Source quote
“And I will say that the SMB adoption is still pretty early stages.”
Figure

Customers use the platform to consolidate agents into one place to ensure predictable costs and unified management of outcomes, data, and workflows.

Source quote
“They don't want like 10 agents from 10 different vendors because, one, the predictability of cost issue becomes even worse and the ability to see the outcomes in all in one place also becomes worse and so customers look to us for, one, making sure that all of the agents are in a single place and our platform provides the context, the CRM data, the governance and the workflows to be able to get them to do their work.”
Figure

In response, HubSpot introduced outcome-based pricing for several of its HubSpot agents, lowered entry price points and are providing customers clear visibility and control over usage and spend, including the ability to set…

Source quote
“In response, we introduced outcome-based pricing for several of our HubSpot agents, lowered entry price points and are providing customers clear visibility and control over usage and spend, including the ability to set thresholds that fit their budget.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Typical (was restrained)

Answers to analysts Restrained (was very upbeat)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Upmarket momentum continued to be strong, deals over $120,000 ARR grew 38% year-over-year, reflecting continued demand from larger customers for a unified AI-powered customer platform.”

“In the prepared remarks, I shared that the number of $120,000 ARR deals grew by 38%, and that means strong interest, increasing interest in a number of conversations.”

“As we transform how HubSpot operates, our internal transformation is driving leverage.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	911.7M	881.0M	+3.5%	760.9M	+19.8%
Gross profit	750.9M	735.3M	+2.1%	638.7M	+17.6%
Operating income	43.3M	27.9M	+55.0%	-24.6M	Turned profit
Net income	43.3M	32.6M	+33.1%	-3.3M	Turned profit
EPS	0.86	0.62	+38.7%	-0.06	Turned profit
P/E today 48.5	65.0	128.5	−63.5	12-mo loss	—

Topics

Most discussed now

HubSpot is seeing larger buying committees, and more of the deals that it is participating in require C-suite approval or Board...
Fading International revenue growth was 23% as reported and 18% in constant currency, representing 49% of total revenue.
Average subscription revenue per customer was $11,800 in Q2, up 4 points year-over-year as reported and 2 points in constant...
Specifically to unpack those, customers want proof of value before they buy.
The second thing that HubSpot did is that it reflected on customers wanting predictable AI costs.

Faded since Q1 2026

Fading In closing, HubSpot's core growth drivers of upmarket momentum, multi-hub adoption, and pricing remain strong and durable.
Fading HubSpot is confident that it has the right product and pricing strategy to drive durable growth and margin expansion over...
Fading HubSpot had the planned time to get the sales team enabled on both the innovation and the pricing model change.
Fading HubSpot came into this year with clear levers to drive growth, and they are working.

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-11-04 Results of operations · SEC 8-K
2026-10-09 Director or officer change · SEC 8-K
Erika Fisher resigned as Chief Legal Officer and Corporate Secretary of HubSpot, Inc., effective November 6, 2026, to pursue another opportunity.
2026-10-06 Results of operations; Restructuring costs; Regulation FD disclosure · SEC 8-K
The company will eliminate approximately 7% of its workforce, impacting nearly 660 employees, and expects to incur charges of approximately $65 million to $75 million related to the plan.
2026-08-05 Results of operations; Director or officer change; Regulation FD disclosure; Other events · SEC 8-K
HubSpot reported Q2 2026 revenue of $911.7 million, up 20% on an as-reported basis compared to the previous year, and appointed Gerald Dischler to the Board of Directors.
2026-06-16 Director or officer change; Shareholder vote results · SEC 8-K
Stockholders approved Amendment No. 1 to the 2024 Stock Option and Incentive Plan, increasing the number of shares reserved for issuance by 2,300,000.
2026-05-07 Results of operations · SEC 8-K
HubSpot reported total revenue of $881.0 million for the first quarter of 2026, which increased by 23% on an as-reported basis compared to the first quarter of 2025.
2026-04-01 Director or officer change; Regulation FD disclosure · SEC 8-K
HubSpot, Inc. appointed Mike Berry to its Board of Directors on April 1, 2026, following the planned resignation of Ron Gill on June 30, 2026.
2026-03-11 Articles or bylaws amended · SEC 8-K · routine

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-13.

Cash & runway

Cash & equivalents

$958.3M

2026-06-30

Short-term investments

$379.6M

total $1.34B

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -4.0% YoY, -3.7% QoQ.

Quarter	Shares
Q3 2024	51.4M
Q1 2025	52.2M
Q2 2025	52.7M
Q3 2025	52.5M
Q1 2026	52.5M
Q2 2026	50.6M

Shares outstanding: 49.9M (2026-07-31)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 73 filings; 50 filings parsed.

Sold by insiders

60.9K shares

$13.8M · 9 transactions

Bought by insiders

15.0K shares

$2.8M · 4 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

2026

operating margins are expanding

Source quote
“Operating margins are expanding in 2026 even as we invest aggressively in AI innovation.”
2027

2 to 3 points of operating margin expansion

Source quote
“In addition, we expect to deliver 2 to 3 points of operating margin expansion in 2027, a meaningful step-up that reflects the operating leverage we are building as an AI-first company.”
full year of 2026

net revenue retention

Source quote
“For the full year of 2026, we expect net revenue retention to be roughly flat year-over-year.”
second half

net upgrade rates

Source quote
“we continue to expect net upgrade rates to be pressured in the second half as a result of customer budget optimization.”
fiscal year of 2026

net new ARR growth

Source quote
“We now expect net new ARR growth to be below constant currency revenue growth for the fiscal year of 2026.”