HubSpot (HUBS) investor relations material

Executive summary

• Q1 2026 revenue grew 23% year-over-year to $881.0 million, driven by strong upmarket momentum, AI-driven product adoption, and higher average subscription revenue per customer.

• Customer count reached 299,458, up 16% year-over-year, with international revenue representing 49% of total revenue.

• AI monetization accelerated, with active core seat users up 90% year-over-year and credit consumption up 67% quarter-over-quarter.

• Net income was $32.6 million, reversing a net loss in Q1 2025; non-GAAP net income was $143 million ($2.72 per diluted share).

• The company is balancing aggressive AI investment, product innovation, and outcome-based pricing with expanding operating margins for durable growth.

Financial highlights

• Subscription revenue rose 23% year-over-year to $862.3 million; professional services and other revenue increased 22% to $18.7 million.

• Gross profit was $749 million with a non-GAAP gross margin of 85.0%; GAAP gross margin was 83%.

• Non-GAAP operating margin was 17.8% (up 3.8 points year-over-year); GAAP operating margin was 3.2%, up from -3.8% in Q1 2025.

• Free cash flow was $154 million (17% of revenue), with cash, cash equivalents, and investments totaling $1.8 billion.

• Calculated billings were $912 million, up 19% year-over-year.

• $211 million of stock repurchased under the $1 billion buyback program.

Outlook and guidance

• Q2 2026 revenue expected at $897–$898 million, up 18% year-over-year; non-GAAP operating income expected at $173–$174 million (19% margin); non-GAAP EPS $3.00–$3.02.

• Full-year 2026 revenue guided to $3.7–$3.708 billion, up 18% year-over-year; non-GAAP operating income expected at $762–$766 million (21% margin); non-GAAP EPS $13.04–$13.12.

• Free cash flow for 2026 projected at $750 million; CapEx expected at 5–6% of revenue.

• Guidance reflects a step down in Q2 growth due to sales enablement and pricing changes, with modest acceleration expected in the second half.

• Long-term operating profit margin target set at 21% for 2027, with a longer-term goal of 25%.