HubSpot Revenue Grows 17%, Then Guides To 12% — Plus A $65-75 Million Restructuring
HubSpot's fourth-quarter revenue outlook of $945.0 million to $947.0 million implies slower growth than the third quarter's pace.
HubSpot's third-quarter revenue grew 17% to $947.6 million, but the company guided to growth of just 12% for the fourth quarter and disclosed a new restructuring plan that it expects to cost $65-75 million. The results came in an 8-K filed Wednesday by the Cambridge, Massachusetts, company, which sells software that helps marketing, sales and customer service teams find, win and keep customers.
Profit up sharply, growth set to slow
Subscription revenue rose 18% to $930.2 million, while professional services revenue fell 3% to $17.3 million. Revenue grew 17% both as reported and in constant currency.
Operating income under standard accounting reached $71.9 million, against $11.2 million a year earlier. Net income was $83.0 million, or $1.67 per diluted share, versus $16.5 million.
On an adjusted basis, operating income climbed 33% to $214.2 million, a 22.6% margin against 19.9%. Adjusted earnings were $3.81 per diluted share, up 43%.
For the fourth quarter, HubSpot guided to revenue of $945.0 million to $947.0 million, up 12% from a year earlier, with adjusted earnings of $3.85 to $3.87 per share. For the full year it expects revenue of $3.685 billion to $3.687 billion, up 18% as reported and 16% in constant currency.
A $65-75 million restructuring
Under a restructuring plan from October 2026, HubSpot expects charges of $65-75 million, most of them in the fourth quarter. The charges cover severance, employee benefits, facilities and other costs, and the company plans to exclude them from its adjusted measures.
CEO Yamini Rangan said HubSpot is "transforming our product, pricing, go-to-market, and how we operate" to capture the AI opportunity.
Customers, cash and buybacks
HubSpot ended September with 311,704 customers, up 12%, and average subscription revenue per customer of $12,038, up 4%. Calculated billings rose 15% to $924.9 million.
Operating cash flow was $238.0 million, versus $187.4 million a year earlier. The company repurchased $237.2 million of its stock during the quarter and held $1.3 billion in cash and investments at September 30.
HubSpot's conference call to discuss the third-quarter results and its business outlook was set for 4:30 p.m. ET Wednesday.
HubSpot's guidance puts fourth-quarter adjusted operating income at $216.0 million to $217.0 million, a 23% margin.
Sources
- 8-K Filing — HUBSPOT INC (HUBS) — SEC EDGAR
- Exhibit hubs-ex99_1.htm — HUBSPOT INC 8-K exhibit — SEC EDGAR
- HubSpot: Q3 Earnings Snapshot – WTOP News — wtop.com
- HubSpot: Q3 Earnings Snapshot | kare11.com — Associated Press
- HubSpot: Q3 Earnings Snapshot | khou.com — Associated Press
- HubSpot: Q3 Earnings Snapshot | king5.com — Associated Press
- HubSpot Reports Q3 2026 Results — businesswire.com
