HubSpot, Inc.

HubSpot, Inc. sells subscription software for marketing, sales, customer service and related customer-management work. Its platform combines customer records, business applications and increasingly AI-supported workflows. The company trades on the New York Stock Exchange under HUBS and ends its fiscal year on December 31.

Quarterly financial results

The adjusted operating-profit measure excludes $127.1 million of stock compensation, $4.2 million of acquired-intangible amortization, $10 million of acquisition-related expense and $1 million of restructuring expense. The quarter's restructuring charge relates to the earlier facility plan; the new workforce plan comes mainly into Q4. The adjusted EPS comparison also benefits from a lower long-term tax assumption introduced for 2026, alongside fewer diluted shares.

Customers rose to 311,704 from 278,880. Annualized average subscription revenue per customer was $12,038, versus $11,578. Starter products supported customer additions, while more Professional and Enterprise adoption supported spending per customer. Hosting and subscription costs increased with customer growth, platform usage and AI investment.

Forecasts compared with results

HubSpot's original August Q3 forecast was $924 million to $925 million of revenue, $187 million to $188 million of adjusted operating income and $3.25 to $3.27 of adjusted EPS. It reaffirmed these ranges on October 6. Actual revenue, adjusted operating profit and adjusted EPS exceeded each range.

Full-year revenue is now expected at $3.685 billion to $3.687 billion, compared with August's $3.678 billion to $3.686 billion. The midpoint increased by $4 million. August's ranges and first-half results implied about $965 million of remaining fourth-quarter revenue. The new explicit Q4 range is $945 million to $947 million, or about 12% growth. The old figure is a calculated remainder from the earlier annual and Q3 forecasts.

The 2026 adjusted operating-income target is now $772 million to $773 million, versus $762 million to $766 million. Adjusted EPS is expected at $13.59 to $13.61, versus $13.23 to $13.31. Both August and November adjusted earnings forecasts use the same long-term tax-rate assumption. A lower diluted share count also supports EPS.

For Q4, adjusted operating profit is expected at $216 million to $217 million and adjusted EPS at $3.85 to $3.87. The corresponding reported operating result ranges from a roughly $0.3 million loss to an $8.7 million profit, after stock compensation, restructuring and the other specified adjustments.

Cash flow, investment and buybacks

Third-quarter operating cash flow was $238 million, versus $187.4 million. Subtracting property and equipment spending and capitalized software leaves $183.3 million. HubSpot's adjusted free-cash-flow measure is $188 million because it adds back $4.6 million of restructuring cash payments.

For the first nine months, operating cash flow was $659.6 million. Cash spending on property and equipment was $51.1 million and capitalized software $113 million, leaving $495.5 million. The issuer's adjusted free cash flow was $509.6 million after adding back restructuring payments. Acquisitions and other investing outflows sit outside these subtractions.

Cash share repurchases were $973.7 million over those nine months. Cash plus short- and long-term investments fell to $1.31 billion from $1.84 billion at year-end, while cash alone rose. A further $55.8 million of buybacks followed quarter-end through the November 4 filing, leaving $964.1 million of authorization then.

The $500 million senior secured revolving facility was undrawn at September 30. The earlier convertible notes matured and were settled in 2025. Lease commitments and office letters of credit are separate from funded borrowing.

Acquisition and restructuring

HubSpot completed its acquisition of AI-focused media platform Futurepedia on April 3, 2026, for $19.1 million net cash. A further $8.6 million is contingent on post-acquisition employment and will be recognized as compensation over two years. The acquisition had no material effect on reported revenue or earnings.

The board approved the workforce restructuring on October 1, and the company announced it on October 6. It affects roughly 7% of staff, with $65 million to $75 million of charges expected, mainly in Q4. Role eliminations are expected to be substantially complete in Q1 2027, subject to local requirements, with substantially all related cash payments by June 30, 2027.

The developments to follow are the slower fourth-quarter sales forecast, whether higher adjusted profits can be sustained as hosting costs rise, and how much of the substantial cash balance continues to fund buybacks.