HubSpot, Inc. Q4 FY2025 earnings call

Core Fundamentals - Strong upmarket momentum: Deals over $5,000 and $10,000 in monthly recurring revenue grew 33% and 41% respectively in 2025. Number of customers with 500 or more seats grew fivefold. - Multihub adoption: 62% of new Pro Plus customers landed with multiple hubs in 2025; 40% of Pro Plus installed base by ARR own four or more hubs. - Pricing changes: Approximately 90% of legacy customers moved into new pricing model; almost 50% of ARR went through first renewal. Customers bought more Sales Hub, Service Hub, and Core Seats. ### AI Momentum - Embedded AI across platform: Customer Agent, Prospecting Agent, Data Agent have gained traction. Customer Agent had over 8,000 customers activated with mid-60s resolution rates. Prospecting Agent had over 10,000 customers activated, up 57% quarter over quarter. Data Agent had over 2,500 customers activated. - AI strategy: Focused on helping growing companies with two to 2,000 employees; context, action, and coordination layers for AI vision. ### 2026 Strategy - Make AI work for growth companies: Accelerate agentic customer platform vision with context, action, and coordination layers. - Reimagine marketing: Launched The Loop, Data Hub, Marketing Studio, and AEO tools. Examples like Decibel and Crunch Fitness saw results from these initiatives. - Accelerate upmarket growth: Double down on product innovation and sales capacity for larger customers, leveraging strong product-market fit and partner ecosystem.

Q4 revenue grew 18% year over year in constant currency, and 20% on an as-reported basis. Subscription revenue grew 21% year over year, while services and other revenue increased 12%. Domestic revenue grew 17% year over year, and international revenue growth was 19% in constant currency and 24% as reported, representing 49% of total revenue. For full year 2025, revenue grew 18% year over year in constant currency and 19% as reported. Subscription revenue grew 18% year over year in constant currency, and 19% as reported. Services and other revenue grew 16%. Added 9,800 net new customers in Q4, total customer count over 288,000. Average subscription revenue per customer was $11,700 in Q4, up a point year over year in constant currency and up three points on an as-reported basis.

First Quarter 2026 - Total as-reported revenue expected to be in range of $862,000,000 to $863,000,000, up 16% year over year in constant currency and 21% as-reported. - Non-GAAP operating profit expected between $144,000,000 and $145,000,000, 17% operating profit margin. - Non-GAAP diluted net income per share expected between $2.46 and $2.48. ### Full Year 2026 - Total as-reported revenue expected to be in range of $3.69 to $3.70 billion, up 16% year over year in constant currency and 18% as-reported. - Non-GAAP operating profit expected in range of $736,000,000 to $740,000,000, 20% operating profit margin. - Non-GAAP diluted net income per share expected between $12.38 and $12.46. - Clearbit business expected to be a 40 basis point headwind to 2026 revenue growth, moderating from 60 basis point headwind in 2025. - CapEx as percentage of revenue expected 5% to 6%, free cash flow about $740,000,000.

Q: So Yamini, I thought I would kick off with just ripping off the Band-Aid that everybody is focused on. The software complex is under a ton of pressure on AI disruption fears...

A: Alright, Samad. Let us start with ripping off the Band-Aid. I will probably start with disruption threat and, specifically, our moat to address that. Then I will take the second part of your question, which is about value getting captured outside of SaaS as data gets sucked out of solutions...

Q: The question I had was on acceleration. You know, the guidance for 16% constant currency growth this year, you know, it is certainly not an acceleration, but all the breadcrumbs that you are giving us on kind of net new ARR would mathematically just lead to acceleration...

A: Yeah, Jackson. Thanks for the question. I will just start by saying that we remain confident that we can reaccelerate and hit our 20% revenue growth goal. You are right. All of the leading indicators are pointing in the right direction...

Q: Hi. Thank you very much. It is a good follow-on question to the previous one. Kate, I was hoping to dig a little more into the context of guidance...

A: Yeah. Maybe I am going to just start by giving a high-level view of how we set guidance for 2026. And the short answer there is that we set guidance in a way that is very consistent with how we have always set guidance...

Q: Good afternoon. Thank you for taking my question. Yamini, I remembered your Dario keynote from INBOUND. And, Dharmesh, I know you spent a lot of time in the core ecosystem...

A: Hi. Thanks for the question. So, you know, Anthropic’s Claude CoWork is still very early, and it is solving for consumer-oriented use cases. So it is still very early to kind of see our customers using it...

Q: Thanks for taking the question. And maybe following on the previous question, to the extent that the modality develops around third-party agents and agent networks that continuously have to access both to read and to action information within HubSpot, Inc...

A: Alex, thanks a lot for the question. So I will start with the first one, then talk about the credit consumption. So on the first part, the way we think about ourselves is we are an open platform. That is how we won in the last decade. That is how we will win in the next decade...

Q: Yes. Hi, good afternoon. This is Jack on for Parker. Thanks for taking my question. Yamini, with the agentic ecosystem buildout seemingly accelerating throughout the quarter...

A: I actually really like this question. I will tell you there is a huge disconnect between what is happening in terms of announcements and how investors are processing it and the actual conversations that we are having with customers in terms of AI adoption and use cases...

Q: Kate, maybe just on the acceleration that we could see throughout this year. You mentioned a lot of growth drivers earlier, but could you just break out how much price is contributing to that versus some of the other growth drivers around seats and credit adoption...

A: Yeah. Thanks so much for the question. I actually think, Taylor, the easiest way to talk about it is through the trends that we are seeing in net revenue retention...

Q: Yeah. Thanks very much, and thanks for taking the question. I was wondering, Yamini, if you could just talk about the benefits you are seeing from AI internally...

A: Yeah. Thanks a lot, Kirk. Look. We have been transforming HubSpot, Inc. completely through AI. And I will start with coding. The way we build products has transformed completely. 97% of the code that was committed last year was done with AI assist...

Q: I mean, coding has gotten easier, but domain expertise and platform value has not just gone away. Right? So people just equate coding to your ability to build everything. Look. I just said that internally, in terms of how we build products, it is completely transformed...

A: I mean, coding has gotten easier, but domain expertise and platform value has not just gone away. Right? So people just equate coding to your ability to build everything. Look. I just said that internally, in terms of how we build products, it is completely transformed...

Q: Hi, wonderful. This is Rishi Jaluria. Thanks so much for taking my questions. Maybe I wanted to drill into one thing...

A: I mean, coding has gotten easier, but domain expertise and platform value has not just gone away. Right? So people just equate coding to your ability to build everything. Look. I just said that internally, in terms of how we build products, it is completely transformed...

Q: Great. Thanks for taking my question. Yamini, I just want to ask about the early adopters of AI agents who are using it...

A: Okay. Great question, Siti. So I will start with what are we seeing, and then is there any difference between segments. In terms of the AI use cases, use cases that are getting resonance are the ones that show clear, measurable value and clear outcomes...

Q: Thanks for taking the question. Yamini, I wanted to follow up on the unified data model. I am curious where you think the near-term cross-sell opportunity is most significant...

A: That is a great question. Look. I think, in terms of where our customers land, they mostly land with Marketing plus Sales Hub. That is a common land pattern. Or they land with all five hubs. Right? Those are the two common patterns...

Q: Perfect. Thank you so much. I just want to touch on maybe the other side of the net retention rate dynamics. I am curious where sort of upsell and upgrades...

A: Yeah. Thanks, Arjun. We have been talking about the dynamics with net revenue retention for a number of quarters now, so I think that you are familiar. But we always start the conversation on NRR with customer dollar retention...