Sales and marketing software maker HubSpot (NYSE: HUBS) announced better-than-expected revenue in Q2 CY2025, with sales up 19.4% year on year to $760.9 million. Guidance for next quarter’s revenue was better than expected at $786 million at the midpoint, 1.4% above analysts’ estimates. Its non-GAAP profit of $2.19 per share was 3.1% above analysts’ consensus estimates.
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HubSpot (HUBS) Q2 CY2025 Highlights:
- Revenue: $760.9 million vs analyst estimates of $739.3 million (19.4% year-on-year growth, 2.9% beat)
- Adjusted EPS: $2.19 vs analyst estimates of $2.12 (3.1% beat)
- Adjusted Operating Income: $129.1 million vs analyst estimates of $124.9 million (17% margin, 3.4% beat)
- The company lifted its revenue guidance for the full year to $3.08 billion at the midpoint from $3.04 billion, a 1.4% increase
- Management raised its full-year Adjusted EPS guidance to $9.50 at the midpoint, a 1.8% increase
- Operating Margin: -3.2%, in line with the same quarter last year
- Free Cash Flow Margin: 15.3%, down from 16.5% in the previous quarter
- Customers: 267,982, up from 258,258 in the previous quarter
- Billings: $785.3 million at quarter end, up 21.2% year on year
- Market Capitalization: $25.96 billion
“Q2 was another solid quarter of continued revenue growth and customer expansion,” said Yamini Rangan, Chief Executive Officer at HubSpot.
Company Overview
Started in 2006 by two MIT grad students, HubSpot (NYSE: HUBS) is a software-as-a-service platform that helps small and medium-sized businesses market themselves, sell, and get found on the internet.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, HubSpot grew its sales at a decent 23.1% compounded annual growth rate. Its growth was slightly above the average software company and shows its offerings resonate with customers.
This quarter, HubSpot reported year-on-year revenue growth of 19.4%, and its $760.9 million of revenue exceeded Wall Street’s estimates by 2.9%. Company management is currently guiding for a 17.4% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 14.9% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is healthy and implies the market is baking in success for its products and services.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
HubSpot’s billings punched in at $785.3 million in Q2, and over the last four quarters, its growth was impressive as it averaged 20.1% year-on-year increases. This performance aligned with its total sales growth, indicating robust customer demand. The high level of cash collected from customers also enhances liquidity and provides a solid foundation for future investments and growth. 
Customer Base
HubSpot reported 267,982 customers at the end of the quarter, a sequential increase of 9,724. That’s roughly in line with what we’ve observed over the last year, confirming that the company is maintaining its sales momentum.
Key Takeaways from HubSpot’s Q2 Results
We enjoyed seeing HubSpot beat analysts’ billings expectations this quarter. We were also glad its full-year EPS guidance slightly exceeded Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 4.4% to $512 immediately following the results.
Indeed, HubSpot had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.
