HubSpot Inc. ( HUBS ) stock fell in premarket trading Thursday after the company posted its fiscal third-quarter 2025 results.

Details

The company reported revenue of $809.5 million, a 21% increase year-over-year (Y/Y), surpassing the consensus estimate of $786.5 million.

The company’s subscription revenue of $791.7 million was up 21% Y/Y, and professional services and other revenue of $17.8 million was up 19% Y/Y in the quarter.

Also Read: Why I Like Salesforce Stock More Than HubSpot or Monday.com

Adjusted EPS came in at $2.66, topping the Street consensus of $2.58.

The company ended the quarter with $1.7 billion in cash, cash equivalents, and short-term and long-term investments.

Key Metrics

HubSpot ( HUBS ) grew its customers to 278,880, up 17% Y/Y, as of September 30, 2025.

The average subscription revenue per customer was $11,578, up 3% Y/Y.

The company said calculated billings were $804.0 million in the third quarter, up 18% Y/Y, on an as-reported basis.

Management Commentary

HubSpot ( HUBS ) CEO Yamini Rangan said, “Customer Agent and Prospecting Agent are delivering results, while our embedded AI features are helping teams work smarter. A highlight of Q3 was our annual INBOUND conference, where we released over 200 new product innovations and launched the Loop, a new growth playbook for the AI era. Customers are turning to HubSpot ( HUBS ) to drive AI innovation, consolidate tech stacks, and reduce their total cost of ownership.”

Outlook

HubSpot ( HUBS ) expects fourth-quarter adjusted EPS of $2.97–$2.99 (versus consensus of $2.97) and revenue of $828 million–$830 million, versus $824.6 million consensus.

Compared to the fourth quarter of the previous year, which reported revenue of $703.2 million, management’s fourth-quarter 2025 guidance projects Y/Y growth rate of 17.9%, a decrease from the 21% growth achieved in the third quarter of 2025.

The company raised its fiscal 2025 guidance for adjusted EPS to $9.60–$9.62 (from $9.47–$9.53) versus the estimate of $9.50 and revenue of $3.113 billion–$3.115 billion (up from $3.080 billion–$3.088 billion) compared to the Street view of $3.087 billion.

In September, HubSpot ( HUBS ) maintained its 2027 operating margin target unchanged at 20%–22%, along with its long-term goal of 25% set last year.

Piper Sandler Trims Price Forecast

Following the results, Piper Sandler’s Hannah Rudoff maintained an Overweight rating on HubSpot ( HUBS ) but cut the price forecast to $590 from $675.

Price Action: HUBS shares were trading lower by 12.31% to $407.50 premarket at last check Thursday.

Read Next:

AI Party Is Not Over, Goldman Sachs Issues Top Picks

Image via Shutterstock