# HubSpot (HUBS.US)

Canonical: https://gigainvestors.com/s/HUBS

Analysis as of: 2026-10-16T07:29:11.022Z. Financial observations: FY2011–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $238.91 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 8

- Operating margin variation: 0.63×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.16×

- FY2017: -0.11×

- FY2018: -0.09×

- FY2019: -0.07×

- FY2020: -0.06×

- FY2021: -0.04×

- FY2022: -0.06×

- FY2023: -0.09×

- FY2024: -0.03×

- FY2025: 0.00×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -13.4%

- ROIC, second-lowest year: -28.3%

- Typical minus recent gross margin: -2.8 pp

- Typical gross margin (annual median): 80.9%

- Recent gross margin (lower of latest and 3-year median): 83.8%

- Years with nonpositive capital: 3

- Capital spending / revenue: 5.9%

- ROIC including acquisitions, ten-year median: -21.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -29.5%

- FY2017: -6.2%

- FY2018: -6.8%

- FY2019: -13.9%

- FY2020: -14.9%

- FY2021: -12.8%

- FY2022: -23.8%

- FY2023: -28.3%

- FY2024: -11.7%

- FY2025: 2.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$157M

- Net income, five-year total: -$299M

- Return on incremental invested capital: 11.4%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.6 pp

- Working capital / revenue, final three-year average: 14.3%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$78M

- FY2022: -$107M

- FY2023: -$165M

- FY2024: $64M

- FY2025: $129M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -6.8% vs -11.7%

- Per-share earnings: -1.29 to 0.09 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.8%

- Ordinary dilution, 5-year annual growth: 3.5%

- Market cap gain: $19B

- Cumulative retained earnings: -$508M

- Diluted shares, 10-year annual growth: 4.8%

- Diluted shares, 5-year annual growth: 3.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $1.38

- Per-share value, starting three-year median: -$1.29

- Per-share value, ending three-year median: $0.09

- Buybacks concentrated in cheaper years (correlation): -0.32

- Average buyback yield: 0.3%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $526M

- Cumulative net income, 10 years: -$587M

- ROIC, first three-year median: -6.8%

- ROIC, last three-year median: -11.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$1.29

- FY2017: -$1.08

- FY2018: -$1.66

- FY2019: -$1.28

- FY2020: -$1.90

- FY2021: -$1.66

- FY2022: -$2.23

- FY2023: -$3.30

- FY2024: $0.09

- FY2025: $0.86

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -18.5%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 69.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 16.57×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.26×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -25.0%

- FY2017: -12.5%

- FY2018: -17.8%

- FY2019: -11.0%

- FY2020: -8.8%

- FY2021: -14.6%

- FY2022: -15.0%

- FY2023: -16.8%

- FY2024: -15.6%

- FY2025: -18.5%

## Holders

## Price story

Down 71% since Oct 2021 · "Slower Demand and AI Momentum Might Change The Case For Investing In HubSpot (HUBS)" (finance.yahoo.com, Jul 2026) · sales +19.2%

Story as of 2026-10-16T09:58:54.923Z; price observation 2026-10-15.

- 2025-04-26: HubSpot (NYSE:HUBS) Shares Surge 14% Over Last Week Amid Partnership With HeyGen ([finance.yahoo.com](https://finance.yahoo.com/news/hubspot-nyse-hubs-shares-surge-172741603.html))

- 2026-07-15: Slower Demand and AI Momentum Might Change The Case For Investing In HubSpot (HUBS) ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/slower-demand-ai-momentum-might-090936497.html))

- 2026-08-06: Software Stocks Fall As Datadog, HubSpot Earnings Raise Questions Over AI Pricing ([finance.yahoo.com](https://finance.yahoo.com/m/b1b93488-ca7b-3a9b-bf18-1f3462d47495/software-stocks-fall-as.html))

### Sales · FY2024–2025

sales +19.2%; source https://www.sec.gov/Archives/edgar/data/1404655/000119312526046646/hubs-20251231.htm; observed 2026-02-11.

- FY2016: $271M 

- FY2017: $376M 

- FY2018: $513M 

- FY2019: $675M 

- FY2020: $883M 

- FY2021: $1.3B 

- FY2022: $1.7B 

- FY2023: $2.2B 

- FY2024: $2.6B 

- FY2025: $3.1B 

### Gross margin · FY2025

gross margin 83.8%; source https://www.sec.gov/Archives/edgar/data/1404655/000119312526046646/hubs-20251231.htm; observed 2026-02-11.

- FY2016: 77.2% 

- FY2017: 79.8% 

- FY2018: 80.4% 

- FY2019: 80.7% 

- FY2020: 81.1% 

- FY2021: 80.1% 

- FY2022: 82.2% 

- FY2023: 84.4% 

- FY2024: 85.0% 

- FY2025: 83.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 3.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1404655/000119312526046646/hubs-20251231.htm (filed 2026-02-11); FY2025: revenue 3131244000; grossProfit 2622757000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HUBS.US: HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, AEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Hub that helps business with website pages, business blogging, video and podcast hosting, smart content, landing pages and forms, SEO recommendations, forms and lead flow, web analytics reporting, calls-to-action, and file manager. It offers Operations Hub, which provides programmable automation, data sync, data curation, and data quality tools; and Commerce Hub, a B2B commerce suite that provides payment links, invoices, quotes, subscription management, and automation and revenue reporting; and breeze, an AI that powers the customer platform that provides AI-powered insights, automation, content generation, and data enrichment, as well as Breeze Assistant, a go-to-market assistant to boost productivity and make work easier; and Breeze Agents, which helps teams automate work end-to-end from strategy to execution. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success; phone and/or email and chat-based support services; and helps customers by providing Customer Success Manager and Partner Development Manager digital channels through educational content academey. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.

### Why customers stay

Margins ranged from 83.8% to 85% during 2023–25; it lost 13.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: grossProfit / revenue = 84.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: grossProfit / revenue = 85%.

- Source: https://www.sec.gov/Archives/edgar/data/1404655/000119312526046646/hubs-20251231.htm (filed 2026-02-11); FY2025: grossProfit / revenue = 83.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); 10-year return on capital observations [[2016,-0.2945870035317397],[2017,-0.06231722440925538],[2018,-0.0676646498279268],[2019,-0.13924721583513694],[2020,-0.1494045639062215],[2021,-0.12778976234543302],[2022,-0.23753158377812725],[2023,-0.28336789433188914],[2024,-0.11727092946605142],[2025,0.02259238556460189]]; median -0.13351848909028496. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back USD 500 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: growth capex 0; upkeep 37939000; owner earnings 63517000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1404655/000119312526046646/hubs-20251231.htm (filed 2026-02-11); FY2025: growth capex 0; upkeep 53165000; owner earnings 129041000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,6247000],[2020,7424000],[2021,17439000],[2022,11526000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1404655/000119312526046646/hubs-20251231.htm (filed 2026-02-11); FY2025: cash repurchases 500019000 USD.

### Are managers owners

Insiders own 3.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HUBS.US SharesStats.PercentInsiders = 3.694 percentage points; cache date 2026-10-16.

### What the price says

The price is 4.1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Closing price 238.91 USD; reporting-to-trading FX 1; FY2025 annual sales per share 58.86460879046509; price multiple 4.058635654072311. FY2025 cash earnings/share 2.4258562995826596. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $52.45 per share

- 2016-11: $56.10 per share

- 2016-12: $47.00 per share

- 2017-01: $51.30 per share

- 2017-02: $59.50 per share

- 2017-03: $60.55 per share

- 2017-04: $67.05 per share

- 2017-05: $72.10 per share

- 2017-06: $65.75 per share

- 2017-07: $72.35 per share

- 2017-08: $73.35 per share

- 2017-09: $84.05 per share

- 2017-10: $86.55 per share

- 2017-11: $80.95 per share

- 2017-12: $88.40 per share

- 2018-01: $97.05 per share

- 2018-02: $111.05 per share

- 2018-03: $108.30 per share

- 2018-04: $105.90 per share

- 2018-05: $121.20 per share

- 2018-06: $125.40 per share

- 2018-07: $124.10 per share

- 2018-08: $143.70 per share

- 2018-09: $150.95 per share

- 2018-10: $135.65 per share

- 2018-11: $139.03 per share

- 2018-12: $125.73 per share

- 2019-01: $158.31 per share

- 2019-02: $168.38 per share

- 2019-03: $166.21 per share

- 2019-04: $184.49 per share

- 2019-05: $173.28 per share

- 2019-06: $170.52 per share

- 2019-07: $178.72 per share

- 2019-08: $199.68 per share

- 2019-09: $151.61 per share

- 2019-10: $155.10 per share

- 2019-11: $151.00 per share

- 2019-12: $158.50 per share

- 2020-01: $180.94 per share

- 2020-02: $179.45 per share

- 2020-03: $133.19 per share

- 2020-04: $168.63 per share

- 2020-05: $199.94 per share

- 2020-06: $224.35 per share

- 2020-07: $234.61 per share

- 2020-08: $299.68 per share

- 2020-09: $292.23 per share

- 2020-10: $290.07 per share

- 2020-11: $394.33 per share

- 2020-12: $396.44 per share

- 2021-01: $372.20 per share

- 2021-02: $515.00 per share

- 2021-03: $454.21 per share

- 2021-04: $526.45 per share

- 2021-05: $504.38 per share

- 2021-06: $582.72 per share

- 2021-07: $596.02 per share

- 2021-08: $684.47 per share

- 2021-09: $676.09 per share

- 2021-10: $810.23 per share

- 2021-11: $806.91 per share

- 2021-12: $659.15 per share

- 2022-01: $488.80 per share

- 2022-02: $525.00 per share

- 2022-03: $474.94 per share

- 2022-04: $379.43 per share

- 2022-05: $337.69 per share

- 2022-06: $300.65 per share

- 2022-07: $308.00 per share

- 2022-08: $337.04 per share

- 2022-09: $270.12 per share

- 2022-10: $296.56 per share

- 2022-11: $303.03 per share

- 2022-12: $289.13 per share

- 2023-01: $347.01 per share

- 2023-02: $386.86 per share

- 2023-03: $428.75 per share

- 2023-04: $420.95 per share

- 2023-05: $517.99 per share

- 2023-06: $532.09 per share

- 2023-07: $580.55 per share

- 2023-08: $546.52 per share

- 2023-09: $492.50 per share

- 2023-10: $423.77 per share

- 2023-11: $493.93 per share

- 2023-12: $580.54 per share

- 2024-01: $611.00 per share

- 2024-02: $618.81 per share

- 2024-03: $626.56 per share

- 2024-04: $604.87 per share

- 2024-05: $611.05 per share

- 2024-06: $589.79 per share

- 2024-07: $497.03 per share

- 2024-08: $499.07 per share

- 2024-09: $531.60 per share

- 2024-10: $554.79 per share

- 2024-11: $721.05 per share

- 2024-12: $696.77 per share

- 2025-01: $779.53 per share

- 2025-02: $723.99 per share

- 2025-03: $571.29 per share

- 2025-04: $611.50 per share

- 2025-05: $589.90 per share

- 2025-06: $556.63 per share

- 2025-07: $519.65 per share

- 2025-08: $483.17 per share

- 2025-09: $467.80 per share

- 2025-10: $491.92 per share

- 2025-11: $367.32 per share

- 2025-12: $401.30 per share

- 2026-01: $280.00 per share

- 2026-02: $264.51 per share

- 2026-03: $244.10 per share

- 2026-04: $221.76 per share

- 2026-05: $220.63 per share

- 2026-06: $182.51 per share

- 2026-07: $237.36 per share

- 2026-08: $261.36 per share

- 2026-09: $204.98 per share

- 2026-10: $238.91 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:34:53.650Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1404655/000119312526046646/hubs-20251231.htm); period 2025-12-31, filed 2026-02-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.