HubSpot Inc. (NYSE:HUBS) stock fell in premarket trading Thursday after the company posted its fiscal third-quarter 2025 results.
Details
The company reported revenue of $809.5 million, a 21% increase year-over-year (Y/Y), surpassing the consensus estimate of $786.5 million.
The company’s subscription revenue of $791.7 million was up 21% Y/Y, and professional services and other revenue of $17.8 million was up 19% Y/Y in the quarter.
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Adjusted EPS came in at $2.66, topping the Street consensus of $2.58.
The company ended the quarter with $1.7 billion in cash, cash equivalents, and short-term and long-term investments.
Key Metrics
HubSpot grew its customers to 278,880, up 17% Y/Y, as of September 30, 2025.
The average subscription revenue per customer was $11,578, up 3% Y/Y.
The company said calculated billings were $804.0 million in the third quarter, up 18% Y/Y, on an as-reported basis.
Management Commentary
HubSpot CEO Yamini Rangan said, “Customer Agent and Prospecting Agent are delivering results, while our embedded AI features are helping teams work smarter. A highlight of Q3 was our annual INBOUND conference, where we released over 200 new product innovations and launched the Loop, a new growth playbook for the AI era. Customers are turning to HubSpot to drive AI innovation, consolidate tech stacks, and reduce their total cost of ownership.”
Outlook
HubSpot expects fourth-quarter adjusted EPS of $2.97–$2.99 (versus consensus of $2.97) and revenue of $828 million–$830 million, versus $824.6 million consensus.
Compared to the fourth quarter of the previous year, which reported revenue of $703.2 million, management’s fourth-quarter 2025 guidance projects Y/Y growth rate of 17.9%, a decrease from the 21% growth achieved in the third quarter of 2025.
The company raised its fiscal 2025 guidance for adjusted EPS to $9.60–$9.62 (from $9.47–$9.53) versus the estimate of $9.50 and revenue of $3.113 billion–$3.115 billion (up from $3.080 billion–$3.088 billion) compared to the Street view of $3.087 billion.
In September, HubSpot maintained its 2027 operating margin target unchanged at 20%–22%, along with its long-term goal of 25% set last year.
Piper Sandler Trims Price Forecast
Following the results, Piper Sandler’s Hannah Rudoff maintained an Overweight rating on HubSpot but cut the price forecast to $590 from $675.
Price Action: HUBS shares were trading lower by 12.31% to $407.50 premarket at last check Thursday.
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