HUBS
HubSpot, Inc.
Technology · Software - Application · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 40.1/100 reflects strong growth and momentum sub-scores offset by very low profitability, a zero dividend score, and an unresolved financial health component.
- While revenue and earnings growth are impressive, the slim net margin of 1.5% and operating margin of 2.2% in FY2025 significantly weigh down the overall assessment.
- The absence of any dividend income and the theme score contributing zero points further constrain the total composite score.
Why Not Higher
- Profitability margins remain very thin—1.5% net margin, 2.2% operating margin, and 1.2% return on assets—preventing the strong growth story from translating into a higher overall score.
- HubSpot pays no dividend whatsoever, and the theme assignment to Enterprise AI Software did not contribute any positive score under the model's current methodology.
Data Confidence
7 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $2,627,543,000 to FY2025's $3,131,266,000, a gain of +19.2%. Net income surged from FY2024's $4,628,000 to FY2025's $45,911,000 (+892.0%), while diluted EPS rose from $0.09 in FY2024 to $0.86 in FY2025 (+855.6%).
The model rewarded the combination of robust top-line expansion and a dramatic acceleration in bottom-line profitability across FY2024 to FY2025, producing a near-maximum growth score.
In FY2025, HubSpot reported a net margin of 1.5%, an operating margin of 2.2%, and a return on assets of 1.2%, all of which remain very thin despite the company reaching profitability.
The model penalized the low absolute level of these margins and returns; while the company is technically profitable in FY2025, the slim figures leave little cushion and translate into a low profitability sub-score.
Filing evidence currently available does not support a more specific explanation for this factor.
Quarterly revenue rose consecutively from $760,866,000 in 2025Q2 to $809,518,000 in 2025Q3, $846,745,000 in 2025Q4, and $880,995,000 in 2026Q1. Operating income followed a similar trajectory, moving from -$5,457,000 in 2025Q2 to $23,136,000 in 2025Q3, $61,653,000 in 2025Q4, and $39,294,000 in 2026Q1, though it moderated in 2026Q1 after peaking in 2025Q4.
The model rewarded the consistent sequential revenue acceleration across all four quarters and the decisive swing from operating losses to sustained operating income, with the slight 2026Q1 pullback in profitability preventing a perfect score.
HubSpot does not currently pay a dividend and has no mapped dividend history at all, making it a genuine non-payer rather than a case of missing data.
The model assigns a zero for this factor because no dividend income is available to investors; growth-oriented companies like HubSpot typically reinvest cash rather than distribute it, which structurally results in the lowest possible dividend sub-score.
HubSpot is assigned to the Enterprise AI Software macro theme.
Although the company carries the Enterprise AI Software theme assignment, this designation did not translate into a positive sub-score under the model's current methodology; the theme assignment itself remains a factual characteristic of the security regardless of the score outcome.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
HubSpot delivered strong top-line growth of 19.2% year-over-year, with revenue rising to $3,131,266,000 in FY2025, while net income surged nearly ninefold to $45,911,000, reflecting a dramatic improvement in bottom-line performance. Sequential quarterly revenue has accelerated consistently through 2026Q1, and operating income has swung decisively from losses to sustained positive territory. However, profitability margins remain very thin—net margin of 1.5%, operating margin of 2.2%, and return on assets of 1.2%—leaving little financial cushion. The company pays no dividend, and the combination of slim margins and unresolved financial health concerns results in a Very High risk rating and a Monitor Only label.
Plain English
HubSpot is growing its sales fast and finally making a real profit, but the profit margins are still razor-thin, it pays no dividends, and there are enough financial concerns that it's best to watch rather than act right now.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 19.2% year-over-year to $3,131,266,000 in FY2025, demonstrating robust and sustained top-line expansion.
- Net income surged from $4,628,000 in FY2024 to $45,911,000 in FY2025, an increase of nearly 892%, showing a dramatic acceleration in bottom-line profitability.
- Quarterly revenue has risen consecutively every quarter from $760,866,000 in 2025Q2 to $880,995,000 in 2026Q1, with operating income swinging from losses to consistent positive territory.
Bear Case
- Net margin stands at only 1.5% and operating margin at just 2.2% in FY2025, leaving very little cushion against any revenue slowdown or cost increase.
- HubSpot pays no dividend and has no mapped dividend history, meaning investors receive no income return while bearing the risks of a high-growth, low-margin business.
- Operating income moderated in 2026Q1 to $39,294,000 after peaking at $61,653,000 in 2025Q4, raising questions about whether profitability improvements can be sustained.
What Could Change the Picture
Bullish Triggers
- A sustained and meaningful expansion of net and operating margins well above current levels of 1.5% and 2.2% respectively would signal that growth is translating into durable profitability.
- Continued sequential revenue acceleration beyond the 2026Q1 level of $880,995,000, combined with stabilizing or growing operating income, would strengthen the fundamental case.
Bearish Triggers
- A reversal in the sequential quarterly revenue growth trend—which has been unbroken from 2025Q2 through 2026Q1—would be a significant negative signal.
- Further compression of already thin margins, with net margin falling below the current 1.5%, would indicate the business model is not scaling efficiently.
Risk Profile
Very High RiskOperating income moderated in 2026Q1 after peaking in 2025Q4, introducing uncertainty about the durability of the profitability trend, while the financial health factor produced a low score that signals underlying balance sheet or liquidity concerns not fully offset by recent earnings improvement.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.