HubSpot, Inc. Q1 FY2026 earnings call

Yamini Rangan started with Q1 2026 results, noting revenue growth, operating margin expansion, and total customer count milestone. Discussed core growth levers like upmarket momentum, multi-hub and platform consolidation, pricing tailwind, and emerging AI monetization levers. Walked through Spring Spotlight product updates and their impact. Talked about balancing growth and profitability, with engineers using AI tools, agent-first go-to-market motion, and moving to institutional productivity. Kate Bucher walked through financial results, including revenue, customer count, average subscription revenue per customer, billings, margins, net income, free cash flow, and stock buyback. Also shared shifts in business, like back-end loaded bookings cadence and AI transforming selling motion.

Q1 revenue grew 18.2% year-over-year in constant currency. Subscription revenue grew 23% year over year as reported, services and other revenue increased by 22% as reported. Domestic revenue grew 18% year over year in Q1, International revenue growth was 29% as reported and 18% in constant currency, representing 49% of total revenue. Total customer count reached nearly 300,000 globally, driven by 10,800 net customer additions in the quarter. Average subscription revenue per customer was $11,700 in Q1, up six points year-over-year as reported, and two points in constant currency. Customer dollar retention remained healthy in the high 80s while net revenue retention was 103% down sequentially as expected, but up over half a point year over year. Q1 calculated billings were $912 million, growing 19% year-over-year as reported and 17% in constant currency. Non-GAAP operating margin was 18%, up four points compared to the year-ago period. GAAP operating margin was 3% in Q1, compared to a negative operating margin of 4% in the year-ago period. Non-GAAP net income was $143 million, and non-GAAP net income per diluted share was $2.72, up 49% and 53% year over year, respectively. GAAP net income was $33 million in Q1, and GAAP net income per diluted share was 62 cents.

For Q2 2026, total as-reported revenue expected to be $897 - $898 million, up 18% y-o-y as-reported and 16% in constant currency. Non-GAAP operating income expected $173 - $174 million, 19% margin. Non-GAAP diluted net income per share expected $3 - $3.02. For full year 2026, total as-reported revenue expected $3.7 - $3.708 billion, up 18% y-o-y as-reported and 17% in constant currency. Non-GAAP operating income expected $762 - $766 million, 21% margin. Non-GAAP diluted net income per share expected $13.04 - $13.12. Expect net revenue retention to expand by one to two points year over year. Legacy Clearbit business expected to be a 40 basis point headwind to full-year 2026 revenue growth. CapEx as a percentage of revenue expected 5% - 6% for full year 2026, free cash flow about $750 million.

Discussed risks and uncertainties that could cause actual results to differ materially from expectations, including those related to the impact of the pricing model changes, sales cycle dynamics, and the transition to an AI-first company which may have short-term impacts on growth and margin but are expected to drive long-term durable growth and margin expansion.

First question from Samad Samana about pricing model change impact on adoption and NRR for credit-consuming cohort. Answer from Yamini Rangan and Kate Bucher. Second question from Mark Murphy about customer agent vs traditional subscription cost. Answer from Yamini Rangan and Dharmesh Shah. Third question from Raimo Lencho about sales organization retraining timing and impact. Answer from Yamini Rangan. Fourth question from Terry Tillman about credit growth ramp and next big breakout agent. Answer from Kate Bucher. Fifth question from Jack Ader about net new ARR and growth trajectory. Answer from Yamini Rangan. Sixth question from Alex Zukin about evolved thinking on headless and agent-first platform. Answer from Dharmesh Shah. Seventh question from Arjun Bhatia about credit consumption with third-party agents. Answer from Yamini Rangan. Eighth question from Brian Peterson about unpacking moving parts in outlook. Answer from Kate Bucher. Ninth question from Keith Bachman about risk profile on growth rate improvement. Answer from Kate Bucher. Tenth question from Tyler Radke about growth driver stack ranking. Answer from Yamini Rangan. Eleventh question from Matt VanVleet about long sales cycles. Answer from Yamini Rangan. Twelfth question from Billy Fitzsimmons about net customer ads. Answer from Kate Bucher