10-Q · May 7, 2026
HubSpot reported strong Q1 2026 results with revenue at $881 million, surpassing estimates, and net income of $32.6 million, recovering from losses in the previous year. The results demonstrate a 23% year-over-year…
Earnings analysis · 10-Q
HUBS earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
HubSpot delivered strong Q3 momentum, with revenue of $947.565 million, diluted EPS of $3.81, operating margin of 7.6% and non-GAAP free cash flow of $188.0 million. Revenue and profitability improved meaningfully both…
Read full summary
HubSpot delivered strong Q3 momentum, with revenue of $947.565 million, diluted EPS of $3.81, operating margin of 7.6% and non-GAAP free cash flow of $188.0 million. Revenue and profitability improved meaningfully both sequentially and year over year, while year-to-date results shifted to $158.9 million of net income from an $8.5 million loss in the prior-year period. The principal offset is execution risk from the 7% workforce reduction and $65.0 million to $75.0 million of expected restructuring charges, compounded by increased AI competition and uncertainty around credits-based pricing.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.81
- Operating margin
- 7.6%
What stood out
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Revenue growth remained solid
Revenue was $947.565 million, up from $912 million in Q2 2026 and $810 million in Q3 2025, representing sequential growth of approximately 3.9% and year-over-year growth of approximately 17.0%.
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EPS expanded sharply
Diluted EPS was $3.81 versus $0.86 in Q2 2026 and $0.31 in Q3 2025, an increase of $2.95 sequentially and $3.50 year over year.
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Operating profitability improved
GAAP operating margin was 7.6%, compared with 4.8% in Q2 2026 and 1.4% in Q3 2025, an improvement of 280 basis points sequentially and 620 basis points year over year.
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Cash generation supported buybacks
Non-GAAP free cash flow was $188.0 million. The company also repurchased 1,129,981 shares during the quarter at average prices of $207.60 in August and $213.74 in September.
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Year-to-date profitability turned positive
The filing reports net income of $158.9 million for the nine months ended September 30, 2026, versus a net loss of $8.5 million in the comparable 2025 period.
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No material control weakness reported
Management concluded that disclosure controls and procedures were effective as of September 30, 2026, and reported no change in internal control over financial reporting that materially affected, or was reasonably likely to materially affect, those controls.
What to watch
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Restructuring execution risk
The 2026 Restructuring Plan reduces the workforce by approximately 7% and is expected to generate charges of approximately $65.0 million to $75.0 million, primarily future cash severance, transition and benefits costs. The filing warns of possible additional attrition, operational disruption and costs above current estimates.
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New pricing model uncertainty
The filing identifies greater pricing and adoption uncertainty from hybrid, credits-based and outcome-based pricing. It specifically warns that credits may substitute for existing seat and hub spend and that customers could use credits-based products at lower levels than expected, potentially reducing revenue predictability.
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AI competition and disintermediation
Competition risk has expanded to AI-native companies, generic large language models and general-purpose agents. The filing states that customers increasingly authorize third-party AI platforms and agents to access HubSpot data and workflows, which could reduce direct engagement, cross-selling and monetization.
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Third-party AI dependency
The company relies on third-party AI models, datasets and cloud infrastructure and warns that providers may modify, suspend or discontinue access, change terms or pricing, or face litigation, regulation or security incidents. Replacing these technologies could require significant resources and may not be possible on commercially reasonable terms.
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Secured credit facility exposure
As of September 30, 2026, the company had no outstanding borrowings under its Revolving Credit Facility, but the facility permits floating-rate borrowing at SOFR plus an applicable margin of 1.125% to 1.875% and is secured by substantially all assets. Any future borrowing would therefore expose the company to interest-rate and covenant risk.
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Buyback cash-allocation risk
The filing states that $964.1 million remained available under the share repurchase programs as of the filing date. Repurchases can reduce cash reserves, increase stock-price volatility and may not enhance long-term stockholder value.
Management's outlook
The supplied 10-Q text does not provide quantitative revenue or EPS guidance or a comparison with prior guidance. The filing discusses restructuring charges of approximately $65.0 million to $75.0 million; Q4 and full-year guidance was provided separately in the November 4, 2026 earnings release.
Earlier filings 4
10-Q · November 5, 2025
HubSpot reported Q3 2025 revenue of $809.518M, up $139.797M (≈20.9%) versus Q3 2024 and sequentially higher; subscription revenue drove the growth. Gross margin remained high at 83.5% (gross profit $676.0M) while the…
10-Q · August 6, 2025
HubSpot reported Q2 revenue of $760,866,000, up 19.4% year-over-year, with gross margin stable at 83.9%. Operating loss widened slightly to $(24,614,000) (operating margin -3.2%), while GAAP net loss narrowed to…
10-Q · November 6, 2024
HubSpot reported Q3 revenue of $669,721,000 (up $112,164,000 vs. Q3 2023) with gross profit of $570,397,000 and diluted EPS of $0.16 for the quarter. Gross margin remained very high at ~85.17% and operating loss…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.