Customer platform provider HubSpot (NYSE: HUBS) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 20.4% year on year to $846.7 million. Guidance for next quarter’s revenue was optimistic at $862.5 million at the midpoint, 2.9% above analysts’ estimates. Its non-GAAP profit of $3.09 per share was 3.4% above analysts’ consensus estimates.
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HubSpot (HUBS) Q4 CY2025 Highlights:
- Revenue: $846.7 million vs analyst estimates of $829.9 million (20.4% year-on-year growth, 2% beat)
- Adjusted EPS: $3.09 vs analyst estimates of $2.99 (3.4% beat)
- Revenue Guidance for Q1 CY2026 is $862.5 million at the midpoint, above analyst estimates of $838.2 million
- Adjusted EPS guidance for the upcoming financial year 2026 is $12.42 at the midpoint, beating analyst estimates by 8.4%
- Operating Margin: 5.7%, up from -1.5% in the same quarter last year
- Free Cash Flow Margin: 24.7%, up from 17.6% in the previous quarter
- Billings: $969.3 million at quarter end, up 26.3% year on year
- Market Capitalization: $12.15 billion
Company Overview
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE: HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, HubSpot’s sales grew at an impressive 28.8% compounded annual growth rate over the last five years. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. HubSpot’s annualized revenue growth of 20.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, HubSpot reported robust year-on-year revenue growth of 20.4%, and its $846.7 million of revenue topped Wall Street estimates by 2%. Company management is currently guiding for a 20.8% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 15.3% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above the sector average and implies the market is baking in some success for its newer products and services.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
HubSpot’s billings punched in at $969.3 million in Q4, and over the last four quarters, its growth was impressive as it averaged 22.4% year-on-year increases. This alternate topline metric grew faster than total sales, meaning the company collects cash upfront and then recognizes the revenue over the length of its contracts - a boost for its liquidity and future revenue prospects. 
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability.
HubSpot does a decent job acquiring new customers, and its CAC payback period checked in at 46.7 months this quarter. The company’s relatively fast recovery of its customer acquisition costs gives it the option to accelerate growth by increasing its sales and marketing investments. 
Key Takeaways from HubSpot’s Q4 Results
We were impressed by how significantly HubSpot blew past analysts’ billings expectations this quarter. We were also glad its EPS guidance for next quarter trumped Wall Street’s estimates. Zooming out, we think this was a solid print. Investors were likely hoping for more, and shares traded down 3.6% to $201.84 immediately following the results.
So should you invest in HubSpot right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
