We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HubSpot Q2 Earnings Beat Estimates on Strong Revenue Growth
Read MoreHide Full Article
Key Takeaways
{\"0\":\"HUBS Q2 revenues hit $760.9M, beating estimates with gains from inbound apps and AI integration.\",\"1\":\"HubSpot added 9,700+ net new customers in Q2, pushing total count to 267,982, up 18% YoY.\",\"2\":\"Operating cash flow increased to $164.4M, up from $117.8M in the prior-year quarter.\"}
HubSpot, Inc. (HUBS - Free Report) reported impressive second-quarter 2025 results, with both the top and bottom lines beating the respective Zacks Consensus Estimate.
The software-as-a-service vendor reported a top-line expansion year over year, backed by growing user engagement across all segments. The integration of advanced AI tools, which include state-of-the-art features, such as AI assistance, AI agents, AI insights and ChatSpot, across its entire product suites and customer platform is driving more value to customers. It has introduced connectors with ChatGPT, which is gaining significant market traction, as more than 20,000 customers have already used it during the quarter.
Net Income
On a GAAP basis, the company recorded a net loss of $3.3 million or a loss of 6 cents per share compared with a net loss of $14.4 million or 28 cents per share in the year-ago quarter.
Non-GAAP net income was $117.3 million or $2.19 per share, up from $103.5 million or $1.94 per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 7 cents.
Quarterly revenues improved to $760.9 million from $637.2 million reported in the year-ago quarter. The company is witnessing steady multi-hub adoption from enterprise customers in the premium market. Healthy net customer additions in the starter edition, along with pricing optimization, drove net sales in the lower tier of the market spectrum. Moreover, customers using free editions are increasingly opting for premium plans owing to greater time to value and seamless AI-powered onboarding. The top line beat the Zacks Consensus Estimate of $738 million.
HubSpot added more than 9,700 net new customers during the quarter, which increased the total customer count to 267,982, up 18% year over year.
Subscription revenues rose to $744.5 million, up 19% year over year. The figure surpassed the Zacks Consensus Estimate of $722.7 million. Average subscription revenues per customer increased 1% year over year to $11,310.
Professional services and other revenues totaled $16.3 million, up from $13.5 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $15.21 million.
Other Details
Gross profit in the quarter was $638.7 million, up from $541.7 million in the year-ago quarter. Operating loss, on a GAAP basis, was $24.6 million compared with $23.9 million in the year-ago quarter. Non-GAAP operating income improved to $129.1 million from $109.3 million, with respective margins of 17% and 17.2%.
Cash Flow & Liquidity
In the second quarter of 2025, the company generated $164.4 million in cash from operating activities compared with $117.8 million cash generated in the year-ago quarter. As of June 30, 2025, HubSpot had $601.2 million in cash and cash equivalents, with $83.3 million in other long-term liabilities.
Outlook
For third-quarter 2025, HubSpot forecasts revenues in the range of $785 million to $787 million, up 17%. The company expects non-GAAP net income per share in the band of $2.56-$2.58. The anticipated range for non-GAAP operating income is $156-$157 million, representing a 20% operating profit margin.
For 2025, management estimates revenues between $3.08 billion and $3.088 billion, up 17% year over year. Non-GAAP operating income is expected to be in the range of $568-$572 million, representing an 18% operating profit margin. Non-GAAP net income per share is likely to be in the range of $9.47-$9.53.
In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help to increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.
Jabil, Inc. (JBL - Free Report) currently sports a Zacks Rank #1. In the last reported quarter, it delivered an earnings surprise of 9.44%.
Jabil’s focus on end-market and product diversification is a key catalyst. The company’s target of “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. This initiative should position Jabil well on the growth trajectory.
Motorola Solutions, Inc. (MSI - Free Report) currently carries Zacks Rank 2. Motorola delivered an earnings surprise of 8.19% in the trailing four quarters.
The company expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. Motorola intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
HubSpot Q2 Earnings Beat Estimates on Strong Revenue Growth
Key Takeaways
HubSpot, Inc. (HUBS - Free Report) reported impressive second-quarter 2025 results, with both the top and bottom lines beating the respective Zacks Consensus Estimate.
The software-as-a-service vendor reported a top-line expansion year over year, backed by growing user engagement across all segments. The integration of advanced AI tools, which include state-of-the-art features, such as AI assistance, AI agents, AI insights and ChatSpot, across its entire product suites and customer platform is driving more value to customers. It has introduced connectors with ChatGPT, which is gaining significant market traction, as more than 20,000 customers have already used it during the quarter.
Net Income
On a GAAP basis, the company recorded a net loss of $3.3 million or a loss of 6 cents per share compared with a net loss of $14.4 million or 28 cents per share in the year-ago quarter.
Non-GAAP net income was $117.3 million or $2.19 per share, up from $103.5 million or $1.94 per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 7 cents.
HubSpot, Inc. Price, Consensus and EPS Surprise
HubSpot, Inc. price-consensus-eps-surprise-chart | HubSpot, Inc. Quote
Revenues
Quarterly revenues improved to $760.9 million from $637.2 million reported in the year-ago quarter. The company is witnessing steady multi-hub adoption from enterprise customers in the premium market. Healthy net customer additions in the starter edition, along with pricing optimization, drove net sales in the lower tier of the market spectrum. Moreover, customers using free editions are increasingly opting for premium plans owing to greater time to value and seamless AI-powered onboarding. The top line beat the Zacks Consensus Estimate of $738 million.
HubSpot added more than 9,700 net new customers during the quarter, which increased the total customer count to 267,982, up 18% year over year.
Subscription revenues rose to $744.5 million, up 19% year over year. The figure surpassed the Zacks Consensus Estimate of $722.7 million. Average subscription revenues per customer increased 1% year over year to $11,310.
Professional services and other revenues totaled $16.3 million, up from $13.5 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $15.21 million.
Other Details
Gross profit in the quarter was $638.7 million, up from $541.7 million in the year-ago quarter. Operating loss, on a GAAP basis, was $24.6 million compared with $23.9 million in the year-ago quarter. Non-GAAP operating income improved to $129.1 million from $109.3 million, with respective margins of 17% and 17.2%.
Cash Flow & Liquidity
In the second quarter of 2025, the company generated $164.4 million in cash from operating activities compared with $117.8 million cash generated in the year-ago quarter. As of June 30, 2025, HubSpot had $601.2 million in cash and cash equivalents, with $83.3 million in other long-term liabilities.
Outlook
For third-quarter 2025, HubSpot forecasts revenues in the range of $785 million to $787 million, up 17%. The company expects non-GAAP net income per share in the band of $2.56-$2.58. The anticipated range for non-GAAP operating income is $156-$157 million, representing a 20% operating profit margin.
For 2025, management estimates revenues between $3.08 billion and $3.088 billion, up 17% year over year. Non-GAAP operating income is expected to be in the range of $568-$572 million, representing an 18% operating profit margin. Non-GAAP net income per share is likely to be in the range of $9.47-$9.53.
Zacks Rank
HubSpot currently has a Zacks Rank #4 (Sell).
Ubiquiti Inc. (UI - Free Report) carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help to increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.
Jabil, Inc. (JBL - Free Report) currently sports a Zacks Rank #1. In the last reported quarter, it delivered an earnings surprise of 9.44%.
Jabil’s focus on end-market and product diversification is a key catalyst. The company’s target of “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. This initiative should position Jabil well on the growth trajectory.
Motorola Solutions, Inc. (MSI - Free Report) currently carries Zacks Rank 2. Motorola delivered an earnings surprise of 8.19% in the trailing four quarters.
The company expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. Motorola intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.