HubSpot (HUBS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $714.1M, up 16% as-reported and 18% in constant currency year-over-year, with customer count rising to 258,258 and strong AI-driven platform adoption.

• AI innovation accelerated, with Copilot users more than doubling and new AI-powered features and acquisitions expanding capabilities.

• Gross margin remained strong at 84%, with subscription revenue accounting for 98% of total revenue.

• The board authorized a $500M share repurchase program, reflecting confidence in long-term growth.

• Net loss was $21.8M on a GAAP basis, but non-GAAP net income was $95.9M, or $1.78 per diluted share.

Financial highlights

• Subscription revenue grew 16% to $698.7M; professional services and other revenue rose 13% to $15.4M.

• Calculated billings reached $767M, up 20% as-reported and 18% in constant currency year-over-year.

• Free cash flow for Q1 2025 was $122M, or 17% of revenue, and non-GAAP operating margin was 14%.

• Cash, cash equivalents, and investments totaled $2.2B at quarter end.

• Net income per share (non-GAAP) for Q1 was $1.78 diluted; GAAP net loss per share was $(0.42).

Outlook and guidance

• Q2 2025 revenue expected between $738M–$740M, up 16% year-over-year; non-GAAP operating margin projected at 17%.

• Full-year 2025 revenue expected between $3.036B–$3.044B, up 16% year-over-year; non-GAAP operating margin at 18%.

• Free cash flow for 2025 expected to be about $570M, with stronger Q4 seasonality.

• Non-GAAP net income per share for FY 2025 expected at $9.29–$9.37.

• Management expects continued investment in R&D, sales, and infrastructure to support long-term growth, with a focus on AI and international expansion.