HubSpot (HUBS) Stock Forecast & Price Target

HubSpot's positive outlook is supported by strong growth metrics, with subscription revenue reaching $791.7 million, reflecting a year-over-year increase of 21%, surpassing prior estimates. For the full year 2025, the company anticipates revenue in the range of $3.113 to $3.115 billion, indicating a 19% increase at the midpoint on an as-reported basis, bolstered by rising net customer additions and an effective seats-based pricing model. Additionally, international revenue showcased impressive growth, increasing 20% year-over-year in constant currency, which highlights the company's expanding global footprint and market impact.

The recent financial performance of HubSpot indicates a concerning trend, with free cash flow decreasing to $142.5 million, down from $124.8 million the previous year, alongside a decline in operating cash flow margins from 23.8% to 23.1%. Additionally, the company's net revenue retention remained flat at 103% quarter-over-quarter, signaling potential challenges in sustaining growth. The compression of gross margins, particularly in subscription services, which fell to 86.7% year-over-year, further exacerbates the outlook amidst software valuation multiple compression and lowered growth expectations for 2026 and 2027.