Core Insights - HubSpot, Inc. (HUBS) shares increased by 13.18 percent, rising $27.59 to $236.92 following the announcement of Aurasell's AI-Native Go-To-Market Operating System [1] Stock Performance - HubSpot stock opened at $227.65, up from a previous close of $209.33, with trading between $226.05 and $245.03 during the session [2] - The last reported bid was $229.83 for 8,000 shares, with an ask at $232.99 for 20,000 shares, and trading volume reached 1,047,052 shares, close to the average volume of 1,143,985 [2] - The 52-week trading range for HubSpot shares is $207.20 to $881.13 [2] New Platform Features - Aurasell's new platform allows revenue teams to implement AI-driven automation, shared context, and workflow intelligence on existing CRM systems without the need for core infrastructure replacement [3] - The platform is designed to deliver measurable impact within hours, mitigating operational and political risks typically associated with full CRM replacements [3]

Group 1 - Hubspot stock price has been in a freefall in the past few months [1] - Hubspot is currently one of the worst-performing companies on Wall Street [1]

Core Insights - HubSpot, Inc. (HUBS) reported strong fourth-quarter 2025 results, exceeding both revenue and earnings estimates [1][9] Financial Performance - The company achieved a GAAP net income of $54.4 million or $1.04 per share, significantly up from $4.9 million or 9 cents per share in the same quarter last year [3] - Non-GAAP net income reached $162.5 million or $3.09 per share, an increase from $124.9 million or $2.42 per share year-over-year [3] - For the full year 2025, GAAP net income was $45.9 million or 86 cents per share, compared to $4.6 million or 9 cents per share in 2024 [4] Revenue Growth - Quarterly revenues rose to $846.7 million from $703.2 million year-over-year, driven by increased user engagement and multi-hub adoption [5] - Subscription revenues increased to $829 million, up 21% year-over-year, surpassing the Zacks Consensus Estimate of $811.55 million [6] - The company added over 9,800 net new customers in Q4, bringing the total customer count to 288,706, a 16% increase year-over-year [6] Profitability Metrics - Gross profit for the quarter was $709.1 million, up from $599.8 million in the previous year [8] - Operating income on a GAAP basis was $48.23 million, compared to a net loss of $10.8 million in the year-ago quarter [8] - Non-GAAP operating income improved to $191 million from $133.07 million, with respective margins of 22.6% and 18.9% [8] Cash Flow and Liquidity - In Q4 2025, HubSpot generated $247.4 million in cash from operating activities, up from $194.1 million in the same quarter last year [10] - For the full year 2025, operating cash generated was $760.7 million, compared to $598.6 million in 2024 [10] - As of December 31, 2025, the company had $882.2 million in cash and cash equivalents [10] Future Outlook - For Q1 2026, HubSpot forecasts revenues between $862 million and $863 million, representing a 21% increase at constant currency [11] - For the full year 2026, management estimates revenues between $3.69 billion and $3.7 billion, an 18% year-over-year increase [12] - Non-GAAP net income per share is expected to be in the range of $12.38-$12.46 for 2026 [12]

Group 1 - The core viewpoint of the article highlights the mixed performance of AI application software stocks in the U.S. market on February 12, with notable gains for some companies and significant losses for others [1] Group 2 - Fastly experienced a substantial increase of over 60% [1] - HubSpot saw an increase of more than 10% [1] - Duolingo rose by over 3% [1] - ServiceNow had a gain of over 2% [1] Group 3 - Applovin faced a decline of more than 14% [1] - Unity dropped nearly 6% [1] - Spotify fell by over 4% [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Viewpoint - HubSpot reported quarterly earnings of $3.09 per share, exceeding the Zacks Consensus Estimate of $2.99 per share, and showing an increase from $2.32 per share a year ago, indicating a positive earnings surprise of +3.26% [1] Financial Performance - HubSpot's revenues for the quarter ended December 2025 were $846.75 million, surpassing the Zacks Consensus Estimate by 2.03%, and up from $703.17 million year-over-year [2] - The company has consistently exceeded consensus EPS estimates over the last four quarters [2] Stock Performance and Outlook - HubSpot shares have declined approximately 42.2% since the beginning of the year, contrasting with the S&P 500's gain of 1.4% [3] - The company's current Zacks Rank is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $2.30 on revenues of $833.51 million, and for the current fiscal year, it is $11.44 on revenues of $3.59 billion [7] Industry Context - The Internet - Software industry, to which HubSpot belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Group 1 - The article does not provide any specific content related to company or industry analysis [1]

Financial Data and Key Metrics Changes - Q4 revenue grew 18.2% year-over-year in constant currency, with full-year 2025 revenue also growing 18.2% to $3.1 billion [6][21] - Q4 operating margin was 22.6%, while the full-year operating margin was 18.6%, reflecting strong operating profit growth [6][24] - Net income for Q4 was $163 million, or $3.09 per share, and for the full year, it was $516 million, or $9.70 per share [24] Business Line Data and Key Metrics Changes - Subscription revenue in Q4 grew 21% year-over-year, while services and other revenue increased by 12% [21] - The number of customers grew to over 288,000, with 9,800 net new customers added in Q4 [6][22] - Average subscription revenue per customer was $11,700 in Q4, up year-over-year [22] Market Data and Key Metrics Changes - Domestic revenue grew 17% year-over-year, while international revenue grew 19% in constant currency and 24% as reported, representing 49% of total revenue [21] - Net revenue retention increased to 105% in Q4, up from 101.8% in 2024, indicating strong customer expansion [22][24] Company Strategy and Development Direction - The company aims to leverage AI to drive growth for mid-market companies, focusing on making AI practical and actionable [10][14] - A new growth playbook for the AI era was launched, alongside AI-powered solutions to enhance marketing efforts [16] - The strategy includes accelerating upmarket growth and enhancing multi-hub adoption, with a focus on delivering both power and simplicity [13][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver durable growth, citing strong core fundamentals and emerging AI levers [29] - The company anticipates net revenue retention to grow by another 1-2 points year-over-year in 2026, driven by continued seat expansion and credit adoption [23][25] - Management highlighted the importance of customer context in AI adoption, emphasizing that the gap between AI output and outcomes is a significant challenge [33][35] Other Important Information - The Board of Directors authorized a share repurchase program of up to $1 billion, reflecting confidence in the business [7][24] - The company expects total as-reported revenue for Q1 2026 to be in the range of $862-$863 million, representing a 16% year-over-year increase in constant currency [26] Q&A Session Summary Question: Concerns about AI disruption in the software industry - Management addressed concerns about AI disruption, emphasizing the importance of customer context and the company's role as a system of record [31][33] Question: Guidance on revenue growth and net new ARR - Management explained that while guidance indicates a 16% growth, net new ARR growth is expected to outpace revenue growth, indicating potential acceleration [39][41] Question: Pricing impact on growth - Management clarified that pricing changes contributed to net revenue retention, but the primary driver was higher upgrade rates for seats [64][66] Question: Internal benefits from AI - Management highlighted that AI has transformed product development and operational efficiency, with significant improvements in support and sales processes [70][72] Question: Adoption among AI-native companies - Management noted that AI-native companies choose HubSpot for its platform value and context, which is essential for decision-making [76][78]

Financial Data and Key Metrics Changes - Q4 revenue grew 18.2% year-over-year in constant currency, with full-year 2025 revenue also growing 18.2% to $3.1 billion [6][21] - Operating margin was 22.6% in Q4 and 18.6% for the full year, reflecting strong operating profit growth [6][24] - Net income for Q4 was $163 million, or $3.09 per share, and for the full year, it was $516 million, or $9.70 per share [24] Business Line Data and Key Metrics Changes - Subscription revenue in Q4 grew 21% year-over-year, while services and other revenue increased by 12% [21] - The number of customers grew to over 288,000, with 9,800 net new customers added in Q4 [6][22] - Average subscription revenue per customer was $11,700 in Q4, up year-over-year [22] Market Data and Key Metrics Changes - Domestic revenue grew 17% year-over-year, while international revenue growth was 19% in constant currency [21] - International revenue represented 49% of total revenue [21] Company Strategy and Development Direction - The company aims to lead with AI, focusing on making AI work for growth companies and reimagining marketing with new products [13][14] - The strategy includes accelerating upmarket growth and enhancing the agentic customer platform [18] - The company has authorized a $1 billion share repurchase program, signaling confidence in future growth opportunities [7][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver durable growth, driven by strong fundamentals and AI momentum [29] - The company anticipates net revenue retention to increase by one to two points year-over-year in 2026 [23] - Management highlighted the importance of customer context in driving AI adoption and outcomes [33][35] Other Important Information - The company reported a significant increase in multi-hub adoption, with 62% of new Pro Plus customers using multiple hubs [9] - The Core Seat adoption has expanded, with nearly 70% of customers utilizing enriched data by Q4 [19] Q&A Session Summary Question: Concerns about AI disruption in the software industry - Management addressed concerns about AI disruption, emphasizing the importance of customer context and the company's role as a system of record [31][33] Question: Guidance on revenue growth and net new ARR - Management explained that while guidance indicates a 16% growth, net new ARR is expected to outpace revenue growth, indicating potential acceleration [39][41] Question: Pricing impact on growth - Management clarified that pricing changes contributed to net revenue retention, but the primary driver was higher upgrade rates for seats [64][66] Question: Internal benefits from AI - Management highlighted that AI has transformed product development and operational efficiency, with significant portions of coding and support handled by AI [70][72] Question: Adoption among AI-native companies - Management noted that AI-native companies are choosing HubSpot for its platform value and context, which is essential for decision-making [76][78]

Financial Data and Key Metrics Changes - Q4 revenue grew 18.2% year-over-year in constant currency, reaching $3.1 billion for the full year 2025, also an 18.2% increase in constant currency [4][18] - Q4 operating margin was 22.6%, with a full-year operating margin of 18.6%, reflecting strong operating profit growth [4][21] - Net income for Q4 was $163 million, or $3.09 per share, and for the full year, it was $516 million, or $9.70 per share [22] - Free cash flow was $209 million in Q4, representing 25% of revenue, and $595 million for the full year, or 19% of revenue [22] Business Line Data and Key Metrics Changes - Subscription revenue in Q4 grew 21% year-over-year, while services and other revenue increased by 12% [18] - The number of customers grew to over 288,000, with 9,800 net new customers added in Q4 [19] - Average subscription revenue per customer was $11,700 in Q4, up year-over-year [19] Market Data and Key Metrics Changes - Domestic revenue grew 17% year-over-year, while international revenue growth was 19% in constant currency and 24% as reported, representing 49% of total revenue [18] - Net revenue retention increased to 105% in Q4, up from 103.5% for the full year, reflecting strong seat expansion and pricing changes [19][20] Company Strategy and Development Direction - The company aims to leverage AI to drive growth for mid-market companies, focusing on embedding AI across its platform [10][12] - A new growth playbook for the AI era was launched, along with AI-powered solutions to enhance marketing capabilities [14] - The strategy includes accelerating upmarket growth and enhancing multi-hub adoption, with a focus on delivering both power and simplicity [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver durable growth, citing strong core fundamentals and emerging AI levers [26] - The company anticipates net revenue retention to grow by another 1-2 points year-over-year in 2026, driven by continued seat expansion and credit adoption [20] - Management acknowledged the challenges posed by AI disruption but emphasized the importance of customer context in driving growth outcomes [29][31] Other Important Information - The Board of Directors authorized a share repurchase program of up to $1 billion, signaling confidence in the business [5] - The company expects calculated billings for Q4 to be $971 million, growing 20% year-over-year in constant currency [20] Q&A Session Summary Question: Concerns about AI disruption and HubSpot's defensibility - Management highlighted the difference between point SaaS solutions and platforms, emphasizing the importance of customer context in driving AI outcomes [29][30] Question: Guidance for 2026 and net new ARR growth - Management confirmed confidence in re-accelerating growth, with net new ARR growth expected to outpace revenue growth [39][40] Question: Pricing impact on growth - Management indicated that pricing changes contributed to net revenue retention, with higher upgrade rates for seats being a significant factor [62] Question: Internal benefits from AI - The company reported that 97% of code committed last year was done with AI assistance, significantly improving innovation speed [66][68] Question: Adoption among AI-native companies - Management noted that AI-native companies choose HubSpot for its platform value and context, which are essential for decision-making [74]