Revenue growth decelerated to 19.8% in Q2 2026 from 23.4% in Q1 2025, while operating margin improved to 4.8% from -3.8% over the same period, reflecting cost discipline and a successful AI pivot.
HubSpot, Inc. (HUBS) annual income statement — 14-year revenue, gross profit & net income history
| 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 | 3.45B | 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 % | 21.09% | 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 | 577.79M | 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 | 2.87B | 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 % | 83.25% | 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 | 2.74B | 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 | 1.83B | 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 | 941.72M | 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 | 132.23M | 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 % | 3.83% | 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 | 248.38M | 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 % | 7.2% | 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 % | 479.15% | 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) | 109.52M | 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 | 174.29M | 70.34M | 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 | 49.02M | 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 | 49.66M | 66.22M | 82.71M | 58.83M | 15M | 1.17M | 7.77M | 19.43M | 9.18M | 3.84M | 854K | 390K | 46K | 34K | 26K |
| Interest Expense | 644K | 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 | 41.43M | 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 | 173.65M | 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 % | 5.04% | 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 | 26.8M | 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 % | 15.43% | 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 | 146.85M | 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 % | 4.26% | 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 % | 1331.79% | 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) | 146.85M | 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) | 2.90 | 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 % | 1320.88% | 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 | 50.62M | 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 | 50.57M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
AI transition execution risk
Metrics are mathematically derived from official filings.
Growth Deceleration Amid AI Pivot
Revenue growth slowed from 23.4% in Q1 2025 to 19.8% in Q2 2026, per reported figures, suggesting the AI-driven pricing changes may be tempering near-term expansion.
The sequential deceleration in year-over-year growth, from 23.4% in Q1 2025 to 19.8% in Q2 2026, appears to reflect the early impact of the AI product transition and pricing adjustments. While the maintained full-year guidance suggests management views this as temporary, the lack of an upward revision in a high-growth environment warrants monitoring for whether the AI pivot is delaying deal closures or reducing seat expansion.
Gross Margin Resilience Despite Mix Shift
Gross margin contracted from 85.3% in Q4 2024 to 82.4% in Q2 2026, as reported in financial statements, indicating potential mix shift or increased infrastructure costs.
The 290 basis point decline in gross margin over six quarters may indicate higher costs associated with AI infrastructure or a shift toward lower-margin services. Despite this, the 82.4% gross margin remains robust and above peers like Salesforce (77.7%), suggesting HubSpot retains pricing power in its core subscription business. Investors should monitor whether this compression is a temporary investment phase or a structural trend.
Operating Leverage Emerging From Cost Discipline
Operating margin swung from -3.8% in Q1 2025 to +4.8% in Q2 2026, per SEC filings, indicating that revenue growth is now outpacing fixed cost increases.
The transition from negative to positive operating income over the past year suggests that HubSpot is beginning to realize operating leverage as revenue scales. R&D and SG&A expenses grew at a slower pace than revenue in recent quarters, with SG&A as a percentage of revenue declining from 56.8% in Q1 2025 to 52.7% in Q2 2026. This trend may indicate improved efficiency in go-to-market spending, though the thin absolute margin leaves limited buffer for execution missteps.
SBC Distorts Reported Profitability
Stock-based compensation averaged $128M per quarter over the last year, exceeding reported net income in most periods, as disclosed in financial statements, highlighting the gap between GAAP and cash earnings.
The substantial SBC expense, which reached $128.5M in Q2 2026 versus net income of $43.3M, suggests that reported profitability is heavily reliant on non-cash charges. This implies that underlying cash generation may be stronger than GAAP net income suggests, but it also raises dilution concerns for shareholders. Analysts should focus on free cash flow and calculated billings to assess true economic performance.
R&D Investment Surge Signals AI Commitment
R&D spending jumped from $175.6M in Q1 2024 to $225.8M in Q2 2026, a 28.5% increase, as reported in financial statements, reflecting aggressive investment in AI capabilities.
The consistent increase in R&D expenditure, particularly the spike to $260.9M in Q3 2025, indicates that HubSpot is prioritizing product innovation, likely in AI and automation, to maintain competitive advantage. This investment is pressuring operating margins in the near term, but it may be necessary to support the 'Breeze' AI platform and expand the total addressable market. The challenge will be converting these investments into revenue growth without further margin erosion.
2025: The Turn to Profitability
Operating income turned positive in Q4 2025 after four consecutive negative quarters, as reported in financial statements, marking a pivotal shift in HubSpot's earnings trajectory.
The transition from a -$27.5M operating loss in Q1 2025 to a +$43.3M operating profit in Q2 2026 represents a significant inflection point, driven by revenue growth outpacing expense growth. This suggests that the company's investments in sales and marketing are beginning to pay off, and the operating model is scaling efficiently. However, the sustainability of this profitability depends on maintaining growth momentum and controlling costs, especially as the AI transition introduces new uncertainties.
What Could Invalidate the Base Case
Despite the recent swing to profitability, the thin 4.8% operating margin and decelerating growth suggest that any AI-related execution misstep could quickly reverse gains, per reported figures.
The narrow operating margin leaves little room for error; a modest increase in R&D or SG&A spending, or a slowdown in revenue growth, could push the company back to losses. The Q2 2026 EPS miss and tight forward guidance indicate that the AI transition may be creating friction, and if this persists, the market may question the sustainability of the growth narrative. Additionally, the heavy reliance on SBC to fund operations could lead to shareholder dilution, and the gross margin compression, if structural, would further pressure profitability.