HubSpot has successfully maintained gross margins above 83% while achieving a pivot to positive operating income of $29.0 million in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 3.3B | 3.13B | 2.63B | 2.17B | 1.73B | 1.3B | 883.03M | 674.86M | 512.98M | 375.61M | 270.97M | 181.94M | 115.88M | 77.63M | 51.6M |
| Revenue Growth % | 21.05% | 19.17% | 21.07% | 25.38% | 33.08% | 47.3% | 30.85% | 31.56% | 36.57% | 38.62% | 48.93% | 57.02% | 49.26% | 50.44% | - |
| Cost of Goods Sold | 539.07M | 508.49M | 393.26M | 338.36M | 308.02M | 258.86M | 166.96M | 129.96M | 100.36M | 75.73M | 61.87M | 47.92M | 35.08M | 27.5M | 16.84M |
| COGS % of Revenue | - | 16.24% | 14.97% | 15.59% | 17.79% | 19.9% | 18.91% | 19.26% | 19.56% | 20.16% | 22.83% | 26.34% | 30.27% | 35.43% | 32.63% |
| Gross Profit | 2.76B | 2.62B | 2.23B | 1.83B | 1.42B | 1.04B | 716.07M | 544.9M | 412.62M | 299.88M | 209.1M | 134.02M | 80.8M | 50.13M | 34.77M |
| Gross Margin % | 83.65% | 83.76% | 85.03% | 84.41% | 82.21% | 80.1% | 81.09% | 80.74% | 80.44% | 79.84% | 77.17% | 73.66% | 69.73% | 64.57% | 67.37% |
| Gross Profit Growth % | - | 17.39% | 21.97% | 28.74% | 36.59% | 45.49% | 31.41% | 32.06% | 37.59% | 43.41% | 56.02% | 65.87% | 61.17% | 44.19% | - |
| Operating Expenses | 2.69B | 2.61B | 2.3B | 2.03B | 1.53B | 1.1B | 766.89M | 591.89M | 460.88M | 340.02M | 253.76M | 180.49M | 129.41M | 84.38M | 53.51M |
| OpEx % of Revenue | - | 83.4% | 87.61% | 93.67% | 88.15% | 84.31% | 86.85% | 87.71% | 89.84% | 90.52% | 93.65% | 99.2% | 111.68% | 108.69% | 103.69% |
| Selling, General & Admin | 1.77B | 1.71B | 1.52B | 1.32B | 1.08B | 794.63M | 561.31M | 433.66M | 343.28M | 269.65M | 207.77M | 148.04M | 101.77M | 67.83M | 42.92M |
| SG&A % of Revenue | - | 54.46% | 57.82% | 60.74% | 62.61% | 61.09% | 63.57% | 64.26% | 66.92% | 71.79% | 76.68% | 81.36% | 87.82% | 87.37% | 83.17% |
| Research & Development | 953.24M | 905.94M | 778.71M | 617.75M | 442.02M | 301.97M | 205.59M | 158.24M | 117.6M | 70.37M | 46M | 32.46M | 25.64M | 15.02M | 10.59M |
| R&D % of Revenue | - | 28.93% | 29.64% | 28.46% | 25.54% | 23.22% | 23.28% | 23.45% | 22.93% | 18.74% | 16.98% | 17.84% | 22.13% | 19.34% | 20.51% |
| Other Operating Expenses | 0 | 0 | 3.99M | 96.84M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 64.29M | 11.39M | -67.6M | -200.93M | -102.86M | -54.8M | -50.83M | -46.99M | -48.26M | -40.14M | -44.66M | -46.47M | -48.61M | -34.25M | -18.74M |
| Operating Margin % | 1.95% | 0.36% | -2.57% | -9.26% | -5.94% | -4.21% | -5.76% | -6.96% | -9.41% | -10.69% | -16.48% | -25.54% | -41.95% | -44.12% | -36.31% |
| Operating Income Growth % | - | 116.85% | 66.36% | -95.34% | -87.71% | -7.81% | -8.17% | 2.63% | -20.24% | 10.13% | 3.9% | 4.39% | -41.92% | -82.76% | - |
| EBITDA | 207M | 175.89M | 29.23M | -128.26M | -44.71M | -9.64M | -13.77M | -18.2M | -24.83M | -24.35M | -33.48M | -39.13M | -42.9M | -29.78M | -16M |
| EBITDA Margin % | 6.28% | 5.62% | 1.11% | -5.91% | -2.58% | -0.74% | -1.56% | -2.7% | -4.84% | -6.48% | -12.36% | -21.51% | -37.02% | -38.36% | -31.01% |
| EBITDA Growth % | 535.43% | 501.84% | 122.79% | -186.85% | -363.82% | 29.98% | 24.34% | 26.71% | -1.97% | 27.28% | 14.43% | 8.77% | -44.05% | -86.07% | - |
| D&A (Non-Cash Add-back) | 142.71M | 164.5M | 96.83M | 72.67M | 58.15M | 45.16M | 37.06M | 28.79M | 23.43M | 15.79M | 11.18M | 7.34M | 5.71M | 4.47M | 2.74M |
| EBIT | 106.08M | 11.39M | 32.4M | -146.77M | -94.69M | -43.54M | -43.77M | -27.95M | -40.57M | -36.86M | -44.76M | -45.46M | -48M | -34.25M | -18.71M |
| Net Interest Income | 58.06M | 65.34M | 78.98M | 55.03M | 11.24M | -29.11M | -29.28M | -3.39M | -12.21M | -9.34M | 589K | 205K | -276K | 14K | -37K |
| Interest Income | 58.53M | 66.22M | 82.71M | 58.83M | 15M | 1.17M | 7.77M | 19.43M | 9.18M | 3.84M | 854K | 390K | 46K | 34K | 26K |
| Interest Expense | 476K | 876K | 3.72M | 3.8M | 3.76M | 30.28M | 37.05M | 22.82M | 21.39M | 13.18M | 265K | 185K | 322K | 20K | 63K |
| Other Income/Expense | 54.34M | 58.07M | 96.28M | 50.35M | 4.41M | -19.02M | -29.99M | -3.78M | -13.7M | -9.9M | -367K | 833K | 288K | -24K | -38K |
| Pretax Income | 118.63M | 69.46M | 28.68M | -150.57M | -98.45M | -73.82M | -80.81M | -50.77M | -61.96M | -50.04M | -45.03M | -45.64M | -48.32M | -34.27M | -18.78M |
| Pretax Margin % | 3.6% | 2.22% | 1.09% | -6.94% | -5.69% | -5.68% | -9.15% | -7.52% | -12.08% | -13.32% | -16.62% | -25.09% | -41.7% | -44.15% | -36.39% |
| Income Tax | 18.37M | 23.55M | 24.05M | 13.94M | 8.89M | 4.02M | 4.22M | 2.97M | 1.87M | -10.32M | 533K | 412K | -92K | 0 | 0 |
| Effective Tax Rate % | 15.49% | 33.91% | 83.86% | -9.25% | -9.03% | -5.44% | -5.22% | -5.86% | -3.01% | 20.63% | -1.18% | -0.9% | 0.19% | 0% | 0% |
| Net Income | 100.26M | 45.91M | 4.63M | -164.51M | -107.35M | -77.84M | -85.03M | -53.75M | -63.83M | -39.71M | -45.56M | -46.05M | -48.23M | -34.27M | -18.78M |
| Net Margin % | 3.04% | 1.47% | 0.18% | -7.58% | -6.2% | -5.98% | -9.63% | -7.96% | -12.44% | -10.57% | -16.81% | -25.31% | -41.62% | -44.15% | -36.39% |
| Net Income Growth % | 534.04% | 892.03% | 102.81% | -53.25% | -37.91% | 8.46% | -58.21% | 15.8% | -60.72% | 12.84% | 1.07% | 4.51% | -40.72% | -82.52% | - |
| Net Income (Continuing) | 100.26M | 45.91M | 4.63M | -164.51M | -107.35M | -77.84M | -85.03M | -53.75M | -63.83M | -39.71M | -45.56M | -46.05M | -48.23M | -34.27M | -18.78M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.91 | 0.86 | 0.09 | -3.30 | -2.35 | -1.66 | -1.90 | -1.28 | -1.66 | -1.08 | -1.29 | -1.39 | -4.20 | -1.36 | -0.75 |
| EPS Growth % | 524.04% | 863.05% | 102.71% | -40.43% | -41.57% | 12.63% | -48.44% | 22.89% | -53.7% | 16.28% | 7.19% | 66.9% | -208.82% | -81.33% | - |
| EPS (Basic) | - | 0.88 | 0.09 | -3.30 | -2.35 | -1.66 | -1.90 | -1.28 | -1.66 | -1.08 | -1.29 | -1.39 | -4.20 | -1.36 | -0.75 |
| Diluted Shares Outstanding | 52.58M | 53.19M | 51.82M | 49.88M | 48.06M | 46.89M | 44.76M | 42.02M | 38.53M | 36.83M | 35.2M | 33.22M | 29.64M | 25.17M | 25.17M |
| Basic Shares Outstanding | 52.49M | 52.45M | 51.18M | 49.88M | 48.06M | 46.89M | 44.76M | 42.02M | 38.45M | 36.77M | 35.2M | 33.13M | 29.64M | 25.17M | 25.17M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High Stock-Based Compensation Dilution
According to the provided quarterly income statements, HubSpot has maintained consistent top-line expansion, with revenue growing from $581.9 million in 2023Q4 to $881.0 million in 2026Q1, reflecting a resilient demand environment for its unified CRM platform despite broader macroeconomic headwinds impacting the mid-market software sector.
The company's ability to sustain revenue growth above 20% for most of the observed period suggests that its 'land and expand' strategy remains effective. Investors should monitor whether this growth trajectory can persist as the company attempts to penetrate the enterprise segment, where sales cycles are longer and competition is more entrenched.
As reported in financial statements, HubSpot consistently maintains gross margins exceeding 83%, a figure that highlights the inherent scalability of its multi-tenant cloud architecture and suggests a strong competitive moat relative to peers like Braze, which operate with significantly lower gross margin profiles.
This high gross margin profile provides the company with substantial flexibility to fund aggressive sales and marketing initiatives. However, the slight compression from the 85% range seen in 2024 to the 83.5% level in 2026Q1 warrants investigation to determine if this reflects increased cloud infrastructure costs or a shift in product mix.
Based on the income statement data, HubSpot has transitioned from consistent operating losses in 2024 to positive operating income of $29.0 million by 2026Q1, indicating that the company is finally beginning to realize the benefits of operating leverage as its revenue base scales.
The shift toward positive operating margins suggests that management is successfully balancing market share acquisition with expense discipline. Nevertheless, the reliance on high levels of stock-based compensation remains a critical factor that may mask the true underlying operating efficiency of the core business model.
Analysis of the reported figures reveals that HubSpot's GAAP net income is heavily influenced by significant stock-based compensation, which totaled $115.7 million in 2026Q1 alone, often exceeding the reported operating income and complicating the assessment of the company's true cash-generating capability for equity holders.
The persistent gap between GAAP profitability and the high volume of equity-based awards suggests that shareholders should be cautious regarding potential dilution. Investors should focus on whether the company can achieve sustained GAAP profitability without relying on aggressive stock-based compensation as a primary tool for talent retention.
While the company shows improving operating metrics, short-term observers may point to the fact that SG&A expenses remain a massive drag on profitability, consuming over 50% of revenue in recent quarters, which raises questions about the long-term sustainability of its current customer acquisition cost structure.
If the company's multi-hub strategy fails to drive sufficient ARPC growth, the high variable cost of sales and marketing could lead to margin stagnation. The market may be underestimating the risk that increased competition from vertical-specific CRMs could force higher marketing spend, thereby delaying the path to meaningful GAAP profitability.
Quick answers to the most common questions about buying HUBS stock.
For fiscal year 2025, HubSpot, Inc. (HUBS) reported total revenue of $3.13B. This represents a 5967.8% increase compared to $51.6M in 2012.
HubSpot, Inc. (HUBS) is profitable, generating $45.9M in net income for the fiscal year ending 2025 with a net profit margin of 1.5%.
HubSpot, Inc. (HUBS) reported an operating income of $11.4M, resulting in an operating profit margin of 0.4%. This margin reflects the operational efficiency of the business before interest and taxes.
HubSpot, Inc. (HUBS) generated $2.62B in gross profit for the year, representing a gross profit margin of 83.8%. This demonstrates the company's core pricing power and production efficiency.